Platform Companies: A May Overview
As we look back at May, I’d like to highlight some significant contract activity and financial reporting for the major platform manufacturers and the executives that are driving the deals.
Firat H. Gezen is the president of ordnance and tactical systems at General Dynamics Mission Systems.
On May 25th, the Defense Department announced GD won a position on a five-year, $511.2 million contract with the U.S. Army to manufacture mortar-propelling charges. The Falls Church, Va., company will compete with munitions maker American Ordnance for task orders under the firm-fixed-price contract, with work set to run through May 24, 2023. GD reported first quarter 2018 net earnings of $799 million, a 4 percent increase from the same period last year, and revenue of $7.5 billion, a 1.3 percent increase over first quarter 2017.
Orlando Carvahlo is the executive vice president of aeronautics at Lockheed Martin.
On May 24th, the DoD awarded Lockheed a potential $558.3 million contract with the U.S. Navy to provide sustainment services for initial production of Lot 11 F-35 Lightning II fighter jets. In addition to the Navy, the firm-fixed-price contract covers purchases from the Air Force, Marine Corps, and foreign military sales customers, with work set to run through February 2023. The Bethesda, Md., company reported first quarter 2018 net earnings of $1.2 billion, compared with $789 million during the same period last year, and net sales of $11.6 billion, up from $11.2 billion in first quarter 2017.
Dr. Taylor Lawrence is vice president of Raytheon Missile Systems.
On May 30th, Reuters reported that Sweden plans to finalize a potential $3 billion purchase of Raytheon’s Patriot missile defense system within the next few weeks. Sweden will seek U.S. approval for the contract, which includes an option for the supply of up to 300 missiles. On May 10th, the DoD announced that the Waltham, Mass., company secured a potential $529.7 million contract to provide updated Rolling Airframe Missiles to the Navy and three foreign customers. Work will run through September 2023. Yesterday, May 31st, the DoD said Raytheon won a potential $847.6 million award to make an “over-the-horizon” weapon system for the Navy‘s littoral combat and frigate ships. Raytheonreported first quarter 2018 net sales of $6.3 billion, an increase of 4.5 percent during the same period last year.
Leanne Caret, president and chief executive officer of Boeing Defense, Space & Security, is a two-time Wash100 award winner.
GovConWire reported May 30th that the Navy intends to negotiate a potential 10-year, $1.86 billion contract with Boeing for new and updated P-8A Poseidon training systems. The indefinite-delivery/indefinite-quantity contract will encompass upgrading aircrew and maintenance training systems for the Navy and the Australian air force through a foreign military sales transaction. On May 24th, the DoD announced Boeing secured a $416.4 million contract modification covering three Lot 9 P-8A multi-mission aircraft for the Navy, with work set to occur through October 2020. Boeing posted first quarter 2018 revenue of $23.4 billion, a 6 percent increase during the same period last year.
Shawn Purvis is a corporate vice president and president of enterprise services at Northrop.
On May 22nd, the State Department announced Northrop won a $434.2 million award for updates to its ConsularOne program, used to process visas, passports and emergency services for U.S. nationals abroad. The contract stipulates that Northrop provide a “user-friendly” website to facilitate self-service, a paperless workflow, standardized functions, operational scalability and integrated information. Northrop reported first quarter 2018 sales of $6.7 billion, an increase of 5 percent from first quarter 2017, and net earnings of $739 million, an increase of 14 percent during the same period last year.
Recent Contract Wins
Other significant contract wins we’re recapping include:
- Orbital ATK wins Navy contract for $171M.
- Carahsoft secures potential $125M agreement with DoD to provide Red Hat products.
- Navy plans $1.86B contract with Boeing.
- Leonardo DRS wins potential $841M Army contract.
- NASA awards Ball Aerospace a $113M contract.
Orbital ATK has received a two-year, $171.2 million contract option to produce a seventh batch of Advanced Anti-Radiation Guided Missile systems for the U.S. Navyand foreign military sales customers. The company will convert 271 AGM-88B High Speed Anti-Radiation Missiles from the Navy into 253 AGM-88E AARGM all-up-rounds and eight Captive Air Training Missiles, the Defense Department said Wednesday.
Carahsoft Technology has received a potential five-year, $125 million blanket purchase agreement to provide Red Hat’s software and services to the Defense Department and related agencies. The BPA will run through April 1, 2023, and includes training and maintenance support services for DoD, the U.S. Coast Guard and intelligence agencies, Carahsoft said Wednesday.
The U.S. Navy plans to negotiate a potential 10-year, $1.86 billion contract with Boeing for the procurement of new and updated P-8A Poseidon training systems. A FedBizOpps notice posted Tuesday says the indefinite-delivery/indefinite-quantity contract will include upgrade work on aircrew and maintenance training systems for the Navy and the Australian air force through a foreign military sales transaction.
Leonardo DRS has received a potential 10-year, $841.5 million contract to supply new hardware and provide engineering services for a computing platform the U.S. Armyuses to manage networked-battle command information. DRS’ network and imaging systems team in Melbourne, Fla., will help address the Army’s Mounted Family of Computer Systems II requirement under the indefinite-delivery/indefinite-quantity contract from the Defense Information Systems Agency, the Defense Department said Friday.
Ball Aerospace and Technologies
a $113.2 million contract to develop, build and test the main instrument components of NASA‘s
upcoming observatory known as the Wide Field Infrared Survey Telescope
. Ball will deliver design, analysis, fabrication, test and evaluation services supporting the development of WFIRST Wide Field Instrument
components under the WFI Opto-Mechanical Assembly
contract, the space agency said Thursday
THIS WEEK’S TOP 10 NEWS STORIES