A Note From Our President & Founder Jim Garrettson
One of the world’s two largest airplane manufacturers is mulling acquisitions in the defense services arena that would continue a trend among prime contractors toward capability-based deals.
Leanne Caret, CEO of Boeingâs $30.4 billionÂ defense segment, told a group ofÂ journalists at the U.K.Â Farnborough International Airshow Sunday the company wants any acquired company to act as a “bolt on” and contribute additional revenue, per a Bloomberg report.
Hardly any acquisition by a prime contractorÂ would be able to top eitherÂ Lockheed Martin’s $9 billion buy of the helicopter maker Sikorsky announced around this time last year or Harris’Â $4.7Â billion purchaseÂ ofÂ Exelis in MayÂ to significantly alter the landscape.
The more significant trend among larger and middle-tier primes within the last two years has been to pursue targeted dealsÂ with twin goals to add new technologies and also gain access to newÂ agency customers.
Raytheon has given us two examples of those types ofÂ buys via the missile maker’sÂ $425 million acquisitionÂ of cyber and special operations contractor Blackbird in November 2014, plusÂ network defense company Foreground Security for an undisclosed sum almost one year later.
The C4ISR arena has been active as SanÂ Diego-based Cubic Corp. investedÂ $386 million to purchaseÂ of three defense technology makers during 2014 and 2015, while L-3 Communications bought Nashville-based ForceX in October 2015 for new surveillance and geospatial tools as part of its larger reposition toward the defense technology arena.
Additionally, General Dynamics snapped up the underwater drone maker Bluefin Robotics earlier this year to add new unmanned manufacturing work for the Navy and bring inÂ 50 skilled workers with experience in the field.
How the big primes are repositioning themselves in a ever-changing global security and government spending environment will surely be on the minds ofÂ Wall Street analysts starting next week when Lockheed officially kicks off GovCon’s second quarter earnings season Tuesday.
Kevin Sullivan, former corporate comptroller of Valiant Integrated Services, has been promoted to senior vice president and chief financial officer at the Herndon, Virginia-based government contractor. He replaces Mike Devoto, who has served as Valiant’s CFO on an acting basis and will transition to the position of executive VP for strategic programs, the company said
The U.S. Army has notified contractors of its intent to extend by three years a multiple-award procurement vehicle for contingency operations training services to military and civilian personnel. A special notice posted Wednesday on SAM.gov says the Enterprise Training Services Contract would expire on June 18, 2023, under the extension plan. The service awarded spots
PAE, now part of Amentum, will help the U.S. Air Force operate and maintain aerial targets under a seven-year, $136.6 million contract. The service will work with PAE’s aviation and technical services division to test the lethality of key military weapons and munitions systems, the Department of Defense said Thursday. Headquarters Air Combat Command received