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Roundup of 2016: The Year in Deals, Industry Landscape Changes & more

Our Roundup of 2016

A Note From Our President & Founder Jim Garrettson

Calendar year 2016 in the government contracting sector seemed to constantly give us a changing landscape to evaluate and try to forecast the short- and long-term effects of each significant development.

Of course, 2016 also brought us the upset election victory by Donald Trump and gave all of us GovCon sector observers much to consider as we put a ribbon on this year.

His campaign pledges to increase defense spending have been a main item of discussion with respect to GovCon but the policy priorities and political appointments Trump is setting also could give some clarity on how contractors should think about and plan for this new administration.

Platform and weapons makers and their counterparts in the pure-play services arena of GovCon may have differing market strategies but all are in the same boat of figuring out what the political landscape means for their business agendas.

In terms of GovCon business developments this year, the initial January announcement of Leidos’ blockbuster merger with the former Lockheed Martin government services segment has dominated much of the discussion surrounding the market since.

Almost overnight, the “New Leidos” became the largest government services contractor by far at nearly twice the annual revenue of its nearest sector rivals.

Leidos’ GovCon competitors, industry observers and Wall Street analysts have trained their eyes on the company in light of its newfound position as the primary bellwether of the government services market’s health and landscape.

The merger leads off our list below of the stories our staff selected as the most significant of 2016, split evenly at five each between M&A deals and executive transitions at GovCon’s largest players.

Thanks to you — the readers — for your continued support and participation in our GovCon coverage of 2016 and we look forward to another active 2017.

GOVCON’s TOP 10 STORIES FOR 2016

Leidos Doubles in Scale Through Merger With Lockheed’s IT & Technical Services Segment
Reston, Virginia-based Leidos towers over the government services landscape at $10 billion in annual revenue versus $5 billion pre-transaction.
Huntington Ingalls Launches $1B Government Services Segment After $380M Camber Buy Closes
Military shipbuilder Huntington Ingalls stood up the standalone segment to create greater visibility into the government services market.
KBR Creates $2.5B Government Services Segment Through Wyle, Honeywell Technology Solutions Purchases
KBR expects the rebranded “KBRwyle” business segment to represent almost 41 percent of total corporate sales per year.
CACI Completes $550M Acquisition of L-3 National Security Solutions Business
L-3 NSS added approximately $1 billion in annual sales to CACI, which expects $4.05 billion-$4.25 billion in revenue for fiscal year 2017 ending June 30.
Booz Allen Seeks Deeper Engineering, Digital Services Footprint Through $250M Aquilent Buy
Aquilent is the newest transaction related to Booz Allen’s “Vision 2020” strategy focused on engineering, systems delivery and digital services.
Leanne Caret Named President, CEO of Boeing Defense, Space & Security
Caret and nearly a dozen other senior BDS executives will relocate to the Washington, D.C. region at the turn of the New Year.
Raytheon Vet Lynn Dugle Appointed CEO at Engility, John Hynes Named President
Dugle joined the Chantilly-based government services contractor 11 months after the combination with neighboring TASC.
Former IBM Govt Lead Chuck Prow Appointed CEO at Vectrus
Prow became chief executive nearly two years after the Colorado Springs-based government services contractor spun out of former parent Exelis.
Former Honeywell Defense & Space Chief Carey Smith Joins Parsons as Federal Unit Head
Smith’s career at Honeywell also includes time as leader of the conglomerate’s U.S. government services business later acquired by KBR.
Defense Department Veteran David Berteau Joins Professional Services Council as CEO
Berteau oversees the major trade association that represents government services contractors on legislative and regulatory issues.

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