Home / News / Weekly Roundup Jan. 25 – Jan. 29 2016: Leidos The New ‘Big One’ After Lockheed IT Biz Merger & more

Weekly Roundup Jan. 25 – Jan. 29 2016: Leidos The New ‘Big One’ After Lockheed IT Biz Merger & more

Jan. 25 – Jan. 29 2016

A Note From Our President & Founder Jim Garrettson

Needless to say, we have a lot to address here after a heavy news week that featured news of government contracting’s largest merger this decade, plus a batch of 2015 earnings reports from a group of contractors Wall Street uses to gauge the defense and GovCon industry’s health.

First, Leidos said it will merge with Lockheed Martin’s IT segment to double in size from $5 billion to $10 billion in forecasted annual revenue and create GovCon services’ largest player at twice the scale of its nearest competitors Booz Allen Hamilton and CSRA, the combination of CSC’s U.S. government arm and SRA.

By comparison, the pre-split Science Applications International Corp. recorded nearly $11 billion in sales for its last fiscal year before the 2013 division into the companies now known as SAIC and Leidos.

Lockheed and Leidos also introduced the term “Reverse Morris Trust” into the M&A landscape through their announcement and our site GovCon Wire’s story on how RMT deals work with this transaction’s finer details here.

The week also featured a mixed bag of full 2015 and fourth quarter financial statements from the “Big Five” contracting giants Boeing, General Dynamics, Lockheed, Northrop Grumman and Raytheon; as well as results from mid-tier players Booz Allen and L-3 Communications.

GovCon Wire has all of the facts and figures on each here with recaps of the GovCon Index’s daily activity to summarize how the financial reports affected stock movements.

Last but not least, we at Executive Mosaic released the third iteration of the Wash100 list that represents our selection of the GovCon sector’s most influential voices for 2016.

Our choices represent leaders all facets of the industry from the largest companies to emerging players and the federal agency customers they collaborate with.

Please click here to bookmark our standalone Wash100 site and check it periodically over the next month for individual stories on our choices for the 2016 class.

THE WEEK’S OTHER TOP GOVCON STORIES
Navy Awards 8 Spots on $809M NAVSUP Business Systems Center Support IDIQ
Contractors will bid for task orders to support the service branch’s enterprise resource planning system.
Air Force Picks 6 for $538M Battle Mgmt, C2 Systems Integration IDIQ
Awardees will support systems for functions such as surveillance, airspace management and weapons control.
GSA Seeks Proposals for Phase II Consolidated FBI HQ Construction Project
Two potential sites in Maryland and one in Virginia are potential candidates for the bureau’s next central hub.
Engility Lands $82M Engineering, Intell Contract; Tony Smeraglinolo Comments
The sole-source renewal contract covers work such as classified systems engineering and program analysis.
CenturyLink Lands DISA Network Services Contract; Tim Meehan Comments
DISA awarded the contract via GSA’s Networx Enterprise vehicle, the predecessor to the upcoming NS2020 program.
CACI to Help US Fleet Forces Command Maintain Computer Models; Ken Asbury Comments
Fleet Forces trains naval personnel before their deployments to unified combatant commanders.
Frank Kendall, Deborah Lee James Propose New Business Model for Space Launch Services Acquisition
Kendall and James overview to lawmakers the Pentagon’s ideal path toward a replacement for the Russian RD-180 engine.
FedRAMP Advocacy Group Proposes Overhaul of Govt Cloud Certification Process
This six-step plan encourages what the MeriTalk-led consortium calls a “do once, use many” approach.
GSA, DoD, NASA Propose Rule to Tackle Federal Contractor Confidentiality Requirements
The policy covers contract awards, grant funds and cooperative agreements.
DoD’s Interim Rule Seeks to Extend Contractors’ Compliance With NIST Cloud Security Requirements
Contractors would have until Dec. 31, 2017 to comply with the cloud service security regulations.

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