CACI reports

August 18, 2008 by Dagpotter · Comment
Filed under: CACI, Department of Defense, Earnings, IT, S&T, SETA, logistics 

In the continuing trend of large defense contractors resulting improved results, CACI had a 13% growth in earnings compared to the equivalent quarter a year ago. Forbes.com reports. CACI is a leading provider of services to the US intelligence community, especially the Defense side. They also provide other services to the US government such as IT and logistics management. Revenue growth was even more impressive, surging over 20% on large intelligence contracts.

For more see the story at Forbes.com.

Global Warming favors Boeing

According to this article a Washington Democratic Congressman wants to introduce legislation that requires the DoD to evaluate the “green house gas” emissions when awarding defense contracts. If this had been done as part of the KC-45 award, then Boeing would have won as nominally the KC-767 emits less harmful gases then the larger A330. Read more

SecDef says KC-45 meddling by Congress may provoke retaliation

According to this story during testimony about the FY09 Defense budget Secretary of Defense Gates warned that adding a requirement to contract awards for US jobs would only provoke retaliation by US allies in Europe and Asia. Currently Federal procurement law does not have increasing or protecting US jobs as a consideration for evaluating and awarding contracts. Congress can certainly add that to the law, and some have mooted they will, but it would come at a price. The US defense industry is now dependent on non-US companies for many parts and products. US allies are also dependent on US companies for a large amount of their systems as they do not have the capability to produce them. Any attempt by the US government to prevent foreign companies from competing could backfire and reduce the market for US companies. As we have stated here many times with the consilidation in the US industry in the Nineties it is hard to get decent competition for these kind of procurements. Only Boeing, EADS and Russian companies could have bid on it; McDonald Douglas is long gone, so Congress needed to expect this kind of situation.

US weapon system acquisition policy

March 31, 2008 by Dagpotter · Comment
Filed under: Federal Budget Process, Industry Analysis 

When the US government orders a new development program for a weapon system there are a variety of steps that must be done to get to the point of awarding the contract. Congress through law and regulation strictly dictates how a system may be acquired. The process is supposed to be driven by requirements. The users specify the requirements and then the material developer gets a system that meets the requirements at a good price for the government. Read more

Supreme Court to review how contract whistleblower law works

February 24, 2008 by Dagpotter · Comment
Filed under: Allison Transmission, U.S. Navy, crime, production program 

In this case from Ohio, two workers for a sub-contractor used the US Government whistleblower law to inform their prime that their was issues with defrauding the government. See the Dayton Daily News for the story. The first court ruled that they couldn’t do this as it had to be reported to the government, not another contractor. On appeal this decision was overruled. Now it is heading for the Supreme Court. Previously the courts consistently have held that the report must be to the government, as they are the ones being defrauded. If the Supreme Court overturns precedent it will probably lead to more whistleblower type cases.