A Note From Our President & Founder Jim Garrettson
Outlooks of the government contracting market’s future trajectory and its ongoing dynamics dominated the attention of sector leaders and observers this week, during which GovCon Wire helped capture the larger conversation.
Third quarter financial statements from the largest GovCon primes of course were part of that but of equal and sometimes greater interest to analysts is how the longer-term horizon looks for the largest players in an unprecedented year of change and reshaping.
We highlighted three of the week’s key CEO perspectives to investors in our “Top 10” list but want to single out Thursday’s comments from leaders at CACI, L-3 and Raytheon that described how they are positioning themselves in the market and making investments.
The ever-active CACI continues to look at the acquisition scene after it bought the NSS business from L-3 but has transitioned to a phase of striving for organic revenue growth, CEO Ken Asbury said.
For L-3 and Raytheon, the focus is primarily on technology-focused buys in new market channels.
Of particular note, Leidos CEO Roger Krone and CFO Jim Reagan will talk to Wall Street next Thursday morning to discuss third quarter results in that company’s first earnings call since its watershed merger into the former Lockheed Martin services business that closed Aug. 16.
In addition, GovCon Wire sat down with noted M&A and capital market observer Bob Kipps of investment bank KippsDeSanto to get his views on the industry’s health and how many larger players have returned to organic growth after years of contraction.
These 10 months so far have also seen previously inactive names — or what Kipps called the “non-traditional” buyer — enter GovCon’s acquisition environment and give a vote of confidence to the sector’s prospects for future growth opportunities.
Leidos (NYSE: LDOS) has won a 10-year, $84.9 million indefinite-delivery/indefinite-quantity contract from the Defense Intelligence Agency to provide automation and other services in support of its operations. The contractor will help DIA design and deploy a data centric architecture with cloud computing capability for digital enrichment tool development; automate agency processes that are labor-intensive and
As the use of artificial intelligence and machine learning continues to grow exponentially in the public sector, the intelligence community is on the cusp of big changes in the way it operates. Because AI/ML is increasingly critical to U.S. intelligence capabilities, the IC is now updating and adapting its tradecraft to include these advanced technologies.
Government agencies in the U.S. had to quickly adapt to remote work at the onset of COVID-19 in March 2020; but now, as more organizations return to in-person work, the Intelligence Community, in particular, is being significantly affected by workforce attrition. Because the IC deals with a higher proportion of classified work than other federal