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NAVSEA Moves to Address Potential OCI in General Dynamics-CSRA Combination

The U.S. Navy has initiated several measures to avoid any potential organizational conflict of interest that may emerge following the completion of General Dynamics’ (NYSE: GD) $9.7 billion acquisition of CSRA.

The Naval Sea Systems Command said Tuesday it asked General Dynamics and CSRA to hand over to a third party SEABU and work on related acquisition, mission and systems engineering support contracts with NAVSEA “as soon as possible” to prevent possible OCIs.

The command noted that CSRA delivers support services to NAVSEA’s defense procurement programs and other initiatives through several task orders under the SeaPort Enhanced contract and other acquisition vehicles.

NAVSEA also ordered the companies to segregate program support work carried out by CSRA’s SEABU from General Dynamics to mitigate such conflicts.

“The mechanisms that ensure segregation and isolation have been detailed to NAVSEA contracts and legal and are considered adequate,” NAVSEA added.

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