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Executive Mosaic’s Weekly GovCon Round-up: DoD FY 2019 Budget & Wash100 Update

Weekly Roundup
April 2 – April 6, 2018

DoD FY 2019 Budget & Wash100 Update

Jim Garrettson, Executive Mosaic CEO

On March 23rd, President Trump signed a $1.3 trillion spending bill for fiscal year 2019 which allocates $686.1 billion for the Department of Defense’s budget. The spending bill, which marks a 5 percent increase over the initial FY 2018 President’s Budget and a 10 percent increase over the current continuing resolution, calls for an additional $47 billion to be added to the DoD’s budget.

The FY 2019 budget, much like FY 2018, seeks to enable a more efficient and capable armed force that “can project power globally for full-spectrum operations against a range of threats.” The DoD FY 2019 Budget Request Overview notes that the budget aims to:

  • Grow the size of the U.S. Army, Navy and Air Force by over 25,000
  • Continue the Missile Defeat and Defense Enhancement initiative
  • Increase and speed up the procurement of preferred and advanced munitions
  • Modernize the second Army Armored Brigade Combat Team’s equipment
  • Buy ten combat ships in FY 2018
  • Increase production of F-35 and F/A-18 aircraft
  • Enhance deterrence via nuclear triad modernization
  • Increase funding to enhance space communications and resiliency
  • Increase U.S. Armed Forces pay by 2.6 percent
  • Emphasize technological innovation and lethality

With such a wide variety of goals to achieve in FY 2019, the government will need greater assistance from industry, which means that FY 2019 is looking to be another strong year for the GovCon marketplace, continuing a trend that the industry has been experiencing since FY 2015.

FY 2018 has been a robust year for government contractors thus far, with many high-value contracts awarded to companies like Boeing,Northrop GrummanLockheed MartinRaytheon and General Dynamics. FY 2018 has been an impressive year not just for the “Big Five,” but also for medium and small-sized government contractors, with many such companies being awarded spots on contracts such as the $25 billion VA VECTOR contract and the $15 billion GSA Alliant 2 Small Business GWAC.

The upward trend of the defense budget since FY 2015 has been benefiting companies across the board. DynCorp International reported an impressive FY 2017 with a 9.2 percent increase in revenue, ManTech International recorded a 7 percent increase in revenue from FY 2016 to FY 2017, and CACI International’s Q2 2018 results have shown a 2.9 percent increase in revenue.

Based on the increased defense spending over the past four years, FY 2019 will certainly be a strong year for government contractors. With an ambitious list of priorities outlined in the FY 2019 Budget Request Overview, the federal government will need the assistance of industry to accomplish its goals. The GovCon community can expect to see a large amount of contracting activity centered around the defense industry in the coming fiscal year and many opportunities for growth.


The Wash100 popular vote continues and will be open for another month. Voter participation has substantially increased between 2017 and 2018. An additional 2,029 votes have been tallied for the top five popular vote recipients in the 2018 Wash100, more than 2.5 times the 2017 polling results.

The Executive Mosaic team would like to extend our sincerest thanks to those who have participated in the Wash100 popular vote. Your votes help to recognize the individuals who are expected to have the greatest impact on the GovCon marketplace in the coming year.

If you would like to participate in the vote and have your voice heard, please visit the Wash100 voting page at any time prior to April 30th, 2018 and cast your ten votes for the executives you believe will have the greatest influence on the 2018 GovCon landscape.

THIS WEEK’S TOP NEWS STORIES

Weekly Contract Awards
This week’s top GovCon contract awards include: Northrop Grumman, Lockheed Martin, Boeing, QinetiQ, Leidos and more.
CACI Drops Acquisition Bid for CSRA; Ken Asbury Comments
CACI International (NYSE: CACI) has withdrawn its bid to purchase CSRA (NYSE: CSRA) for $44.00 per share in cash and stock, or approximately $7.2 billion.
Former HPE, DXC Exec Katie Ebrahimi to Join Unisys as SVP, Chief HR Officer
Katie Ebrahimi, a former executive at DXC Technology (NYSE: DXC) and Hewlett Packard Enterprise (NYSE: HPE), has been named a senior vice president and chief human resources officer of Unisys (NYSE: UIS) in a move slated to take effect April 26.
38 Firms Win Spots on $20B NIH CIO-SP3 Small Business GWAC
The National Institutes of Health has awarded 38 companies positions on the small business track of a potential $20 billion governmentwide acquisition contract vehicle for information technology support services.
6 Firms Win Spots on $900M Contract for DoD Joint Test & Evaluation Program Support
The U.S. Army has chosen six companies to support the Defense Department‘s Joint Test and Evaluation Program under a potential 10-year, $900 million shared contract.
Orbital ATK to Expand Bushmaster Production Facility in Arizona
Orbital ATK will expand its production facility in Mesa, Ariz., in an effort to meet the demand for the company’s Bushmaster family of medium-caliber cannons.
Reports: Boeing Reorganizes Defense Business With 2 New Divisions
Boeing (NYSE: BA) will set up two new divisions focused on missile and weapon systems and commercial derivatives aircraft within its defense, space and security business in a move that takes effect Monday, April 2, Defense One reported Thursday.
General Dynamics Closes $9.7B CSRA Purchase
General Dynamics (NYSE: GD) has concluded its approximately $9.7 billion acquisition of CSRA (NYSE: CSRA) in a push to establish a combined government information technology services contractor.
John Foley Named DSA President in Series of Exec Moves
John Foley, chief financial officer and treasurer at Data Systems Analysts, has taken an additional role as president of the Pennsylvania-based technology and information management services contractor.
Curtiss-Wright Wraps Up $212M Dresser-Rand Govt Business Acquisition
Curtiss-Wright (NYSE: CW) has closed its $212.5 million cash acquisition of the Dresser-Rand government business from Siemens in a move to expand aftermarket support for the U.S. Navy and footprint on the service branch’s nuclear ships.

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