SAIC’s Break Up to Add Value — Seeking Alpha

Here is an exclusive article I wrote for Seeking Alpha discussing the plan to breakup SAIC (SAI).

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Insourcing, Outsourcing: SAIC Wins OSD Support Contract

As the debate about eliminating contractor jobs in the Defense Department and insourcing those positions continues the Defense Department and Services continue to award support contracts. SAIC (SAI) the latest contractor to benefit by winning a large award to support the Assistant Secretary of Defense for Nuclear, Chemical and Biological Defense (OASD(NCB)).

The contract has one base year and four options years and could be worth up to $95 million if all options are exercised. SAIC, one of the largest defense contractors in the U.S., will provide professional, technical, analytical and executive services through the contract.

The OASD(NCB)’s office is chartered with “Drive the capability to prevent, protect against, and respond to weapons of mass destruction threats” and provide “A world safe from nuclear, chemical, and biological threats” as part of the Office of Secretary of Defense. Under it are offices for Chemical and Biological Defense, the Defense Threat Reduction Agency, Nuclear Matters and Threat Reduction and Arms Control. The current office was created in 2011.

As with all such offices throughout DoD and the different Services and Agencies they still rely on contractor support in different areas. These include direct office and mission support. The goal of insourcing was to reduce these positions by making sure that any “inherently government work” was being done by a civil servant and not a contractor. There have been disputes among the government, unions and contractors as what jobs should be insourced and how much work is being taken away from private industry. There have also been arguments about who is cheaper, civil servants or contractors, and various politicians weighing in on both sides.

The fact that these types of contracts are still being awarded is a good sign for the industry and SAIC especially. SAIC is one of the larger defense contractors with projected revenues of $10 billion or more in 2012 and it does this primarily by providing services rather then manufacturing large, defense systems. As the Defense Department reduces contracts and positions it might hit SAIC hard although they have shown the ability to win some major contracts.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

TASC Wins USG ONE IDIQ Contract for Engineering and Communications Services — Press Release

TASC Wins USG ONE IDIQ Contract for Engineering and Communications Services

CHANTILLY, Va., Jan. 23, 2012 /PRNewswire/ — TASC, Inc. has won an indefinite-delivery/indefinite-quantity contract, the United States Government’s Omnibus Network Enterprise (USG ONE), to provide a range of engineering and communications services supporting U.S. government agencies. The one-year contract has four option years and a potential value of $476 million for all awardees.

“Our goal is to deliver sophisticated engineering and game-changing mission solutions that are efficient, smart and secure,” says Richard Bowers, vice president of Mission Solutions at TASC. “We have assembled an expert team from a number of companies in order to have the right mix of technical expertise and mission experience to meet the government’s complex engineering and technology needs.”

Under the USG ONE contract, TASC is one of nine companies that will be allowed to bid on individual task orders to deliver support services in areas such as systems engineering, information assurance, security, test and evaluation, enterprise architecture and program management. Eighteen companies have joined the TASC subcontractor team to deepen capabilities in the government’s mission-critical areas.

About TASC

Founded in 1966, TASC, Inc., helps solve complex national security and public safety challenges by providing advanced systems engineering, integration and decision-support services to the Intelligence Community, Department of Defense and civilian agencies of the federal government. With about 5,000 employees in 40 locations, TASC generates $1.5 billion in annual revenue. For more information and career opportunities, visit our website at www.tasc.com.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Saab Sensis Receives SeaPort-e Contract Award from U.S. Navy — Press Release

September 26, 2011 by · Comment
Filed under: Business Line, Companies, Events, logistics, Press Releases, SAAB, SETA 

Saab Sensis Receives SeaPort-e Contract Award from U.S. Navy

Saab subsidiary, Saab Sensis Corporation has received a contract from the U.S. Navy for Seaport-Enhanced (SeaPort-e), the U.S. Navy’s web-based contracting source for fleet-wide support services. As a SeaPort-e Prime contractor, Saab Sensis will be able to compete for contracts that will be solicited on an ongoing basis across 22 functional service areas by Naval Sea Systems Command; Naval Air Systems Command; Space and Naval Warfare Systems Command; Naval Supply Systems Command; Military Sealift Command; Naval Facilities Command; Strategic Systems Programs; Office of Naval Research; and the Marine Corps. Saab Sensis has qualified for a number of functional support areas, from Research and Development to Installation and Checkout and In-Service Engineering support.

“SeaPort-e provides a mechanism for the U.S. Navy to contract with Saab Sensis for a broad spectrum of advanced and legacy sensor engineering and related support services in an efficient and affordable manner,” said Erik Smith, general manager of Saab Sensis Defense & Security Systems. “This award ensures that our warfighters have access to the critical technical capabilities and expertise they need to conduct their missions.”

SeaPort-e was established by the Naval Sea Systems Command (NAVSEA) and its Warfare Centers, which are responsible for the acquisition of all U.S. Navy ship and shipboard systems to maximize the efficiency and economy of support service procurement. The Navy Systems Commands competitively solicit, award and manage their service requirements among SeaPort-e contract holders through the SeaPort-e web portal. The result is a standardized, efficient means of soliciting offers from approved team members. For more information, visit www.seaport.navy.mil/default.aspx.

Defense and aviation market leaders rely on Saab Sensis Corporation to provide advanced sensor technologies, next-generation radars, automation, modeling and simulation solutions. The company serves military, civil aviation, airport and airline customers in more than 35 countries across six continents.

Saab North America provides a broad range of products, services and solutions ranging from military defence to homeland security to customers in the U.S and Canada. Saab Sensis Corporation is a business unit of the Saab Group.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

SAIC Qualifies for MDA Contract but Has Tough Road Ahead

The Missile Defense Agency (MDA) announced that SAIC (SAIC) was one of the companies who qualified for a recent Indefinite Delivery / Indefinite Quantity (ID/IQ) science and technical service support contract. This is a five year contract and the Agency expects to award close to $300 million in tasks under it.

By qualifying it gives the right to SAIC to bid on any tasks issued under the contract against the other four companies. As with all ID/IQ contracts the government does not guarantee that any work will be awarded and that all qualifiers will receive it. Depending on the task and its requirements, though, one of the companies is probably more qualified then the others and has a better chance of winning it.

This type of work has been SAIC’s bread-and-butter for years. It is one of the largest defense contractors in terms of annual contract awards. In 2010 it was ranked fifth with over $5 billion in awards by Washington Technology. It has also branched out teaming with Boeing (BA) on the lead of the Army’s formerly new vehicle program now cancelled Future Combat System (FCS).

It also teamed with Boeing on the Army’s replacement program, the Ground Combat Vehicle (GCV), but was not awarded a contract. The two companies have since protested that decision. If the protest is upheld and a contract is awarded to them that would potentially be billions worth of business in developing, building and supporting the new armored vehicle.

In the last quarter SAIC saw a decline of about six percent in revenues and called the results “disappointing”. The company blamed the lack of new contracts as well as the overall situation with the defense industry at this time. Cuts to the defense budget may seriously affect the traditional business areas of SAIC.

Like all other defense contractors they are looking at new and different markets such as health care to provide offsets to these potential cuts. SAIC is supporting non-traditional energy production which has potential in the future as the world turns away from coal and oil based energy sources.

This also may be a blip as the company does win some new work and contracts. Overall though it should be expected that as the market declines with cuts in spending and the return of troops from Afghanistan and Iraq that more quarters like this may be in the future. The defense industry may be flat and have to become more creative. As such stock prices and valuations also may be flat or decline.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

L-3 Restructures in the Face of Budget Realities and Policy Changes

As part of their earnings announcement of the second quarter L-3 Communications Holdings (L3) announced that it would separate most of its government service unit into a stand alone company called Engility. L-3 is a diverse provider of services and hardware to the U.S. Defense Department. Management stated concerns with new rules on Organizational Conflicts of Interest (OCI) led them to this decision.

Interestingly the company has decided to keep the intelligence and cyber support parts of this business with L-3 while letting the more traditional Scientific, Engineering, Technical and Analytical (SETA) support go with the new company. The first two are potential high growth areas as illustrated by the moves of the larger defense contractors such as Boeing (BA) and General Dynamics (GD) buying up of smaller companies in that field. The use of SETA contractors who often work directly supporting new system development and acquisition is under pressure first through insourcing and now just through cuts to the size of the work force as the Pentagon moves to reduce its overhead and budget.

Overall the company reported a drop in sales due to the loss of one major contract but overall a rise in profits of about 32 cents a share. Revenue compared to the similar quarter last year fell to $3.77 billion or about fiver percent. The company followed other defense contractors reporting this week by increasing their guidance for the year raising it 15 cents a share from last quarter’s prediction.

The future defense budget remains in flux but different companies are positioning themselves for what is expected to be declines in business, more strict regulations and policies and pressure on pricing. This has been reflected in moves like ITT Corporation (ITT) which is spinning off its entire defense business into a separate company, to be called ITT Exelis or Lockheed Martin’s (LMT) plans to eliminate thousands of jobs to cut overhead and prices. L-3 is holding onto its business lines with the most potential while putting its services unit in a place where they will either sink, swim or end up being part of another company.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

TASC, Inc. Wins $281.7 Million MiDAESS IDIQ Contract — Press Release

TASC, Inc. Wins $281.7 Million MiDAESS IDIQ Contract

CHANTILLY, Va., April 21, 2011 /PRNewswire/ — The U.S. Missile Defense Agency has awarded TASC an indefinite-delivery/indefinite quantity contract to provide senior advisory and assistance services through the agency’s MiDAESS program (Missile Defense Agency Engineering Support Services). Under the contract, TASC is eligible to provide advisory analytical support and subject matter expertise in support of the Ballistic Missile Defense System. The five-year contract has a ceiling value of $281.7 million.

“TASC offers proven experience and a deep understanding of the ballistic missile defense mission to protect and deter attacks on our country,” says Pat Talty, senior vice president of Mission Engineering at TASC. “Our engineers and analysts will provide critical performance data about the system, allowing MDA to send a credible message to our adversaries about our nation’s readiness and defense capability.”

TASC is one of four companies that will be allowed to bid on individual task orders to deliver engineering, test, finance, acquisition, readiness and strategic activities. Work under the contract will be performed in Huntsville and Courtland, AL, Chandler, AZ, Denver, CO, Orlando, FL, Cambridge, MA, Albuquerque, NM, Kirtland Air Force Base, NM, and Arlington, VA. The procurement is managed by the MDA Engineering and Support Services Program Office.

About TASC

Founded in 1966, TASC, Inc. is a leading provider of advanced systems engineering, integration and decision-support services to the Intelligence Community, Department of Defense and civilian agencies of the federal government. For more than 40 years, TASC has partnered with our customers toward one goal — the success of their missions. Our broad portfolio of services includes mission operations, analysis and engineering; system and policy analysis; program, financial and acquisition management; enterprise engineering and integration; advanced concept and technology development; test and evaluation; independent verification and validation; and cybersecurity. With more than 5,000 employees in 40 locations, TASC generates $1.5 billion in annual revenue. For more information and career opportunities, visit our website at www.tasc.com.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

EOIR Technologies Inc. is Awarded a $245M Contract by the Night Vision and Electronic Sensors Directorate (NVESD) for Engineering Support and Technology Assistance — Press Release

EOIR Technologies Inc. is Awarded a $245M Contract by the Night Vision and Electronic Sensors Directorate (NVESD) for Engineering Support and Technology Assistance

FREDERICKSBURG, Va., Oct. 20 /PRNewswire/ — EOIR Technologies Inc., an industry leading system design and development company, announced today that it has been awarded a prime contract in the amount of $245M by the Night Vision and Electronic Sensors Directorate (NVESD) of the US Army’s Research, Development and Engineering Command (RDECOM) to provide engineering support and technology assistance. The Quick Reaction Engineering for Warfighter Sensing (QREWS) contract supports research, development, experiments, engineering, prototyping, and field support to develop quick reaction war support services and material directly related to NVESD efforts at FT Belvoir and FT AP Hill, VA performing Quick Reaction Programs (QRPs), Overseas Contingency Operations (OCOs), Operation Enduring Freedom (OEF), and Operation Iraqi Freedom (OIF) requirements. Dr. Joe Mackin, President and CEO of EOIR Technologies, made the announcement.

The Army’s NVESD research and development group is one of the U.S. military’s most advanced technological leaders. The Army’s NVESD has been responsible for numerous key innovations in the fields of optical electronics and thermal imaging for weapons targeting, electronic surveillance and other mission-critical military applications.

“We look forward to continuing our long and successful relationship with the NVESD,” said Dr. Mackin. “EOIR has a great deal of experience with engineering support and we are excited to create enhancements that will improve the Warfighter’s capabilities. EOIR will continue to be committed to innovation, technology and operational expertise while supporting NVESD’s overall mission.”

About EOIR Technologies: EOIR Technologies (www.eoir.com) is an industry leading system design and development company, staffed with over 200 highly talented men and women. They have developed a reputation for excellence in Research Development and Engineering Services in the areas of sensor science including electro-optical/infrared devices, advanced remote sensing applications, and specialized chemical detection systems. Through their focus on innovation and excellence, EOIR contributes to ensuring that the United States is the most technically sophisticated military and intelligence organization in the world. Understanding the client’s mission is core to the EOIR solution. EOIR blends innovation, technology, and operational expertise with the client’s mission to develop best-in-class solutions. EOIR has been providing innovative sensor engineering products and services to customers within the Department of Defense for nearly thirty years.

SOURCE EOIR Technologies Inc.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

SAIC Awarded Contract by Space and Naval Warfare (SPAWAR) Systems Center Atlantic — Press Release

October 19, 2010 by · Comment
Filed under: Business Line, Companies, Events, Press Releases, SAIC, SETA 

SAIC Awarded Contract by Space and Naval Warfare (SPAWAR) Systems Center Atlantic

Company to Provide Engineering and Technical Support Services

PR Newswire

MCLEAN, Va., Oct. 19

MCLEAN, Va., Oct. 19 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it has been awarded a new prime contract by the Space and Naval Warfare (SPAWAR) Systems Center Atlantic to provide command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) engineering and software integration support services. The multiple award, indefinite-delivery/indefinite-quantity contract has a one-year base period of performance, four one-year options, and a total ceiling value of not more than $49 million for all awardees, if all options are exercised. Work will be performed primarily in Charleston, S.C. and Lexington Park, Md.

SPAWAR Systems Center Atlantic rapidly delivers and supports solutions that enable information dominance for Naval, Joint, National and Coalition Warfighters. Under the contract, SAIC will provide engineering, systems integration, and technical support services as required in support of various C4ISR requirements, programs and projects for U.S. Navy, Marine Corps, and other C4ISR systems. Additionally, SAIC may provide interface systems development, product enhancement, test and evaluation, and life cycle management support. SAIC is one of four companies eligible to compete for future task orders under the contract.

“This contract provides SAIC the opportunity to provide SPAWAR with a wide range of expertise in support of their critical mission,” said Jim Thigpen, SAIC senior vice president and acting business unit general manager. “We look forward to supporting them as they continue to design, develop and field state-of-the-art C4ISR capabilities for our warfighters.”

About SAIC

SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $10.8 billion for its fiscal year ended January 31, 2010. For more information, visit www.saic.com. SAIC: From Science to Solutions®

SOURCE SAIC

Read more

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Lockheed Martin Enters Into Definitive Agreement to Sell Its EIG Business to Veritas Capital — Press Release

Lockheed Martin Enters Into Definitive Agreement to Sell Its EIG Business to Veritas Capital

BETHESDA, Md., Oct. 13 /PRNewswire/ — Lockheed Martin Corporation (NYSE: LMT) today announced that it has entered into a definitive agreement to sell its Enterprise Integration Group (EIG) business to Veritas Capital for $815 million in cash.

As announced on June 2, the Corporation’s plan to divest EIG is based on the U.S. Government’s increased concerns about perceived organizational conflicts of interest. EIG provides system engineering services, architecture, and integration services and support to a broad range of government customers. Divesting the business better positions it for growth, benefiting customers, shareholders and employees.

“The decision to divest EIG followed a comprehensive review of our portfolio to find ways to continuously provide the best, most affordable solutions for our customers, a secure future for our employees and value for our shareholders,” said Lockheed Martin Chairman & CEO Robert J. Stevens. “EIG and its employees continuously demonstrate tremendous capability and serve the nation with dedication, diligence and honor. I am confident that the company and its employees will continue to thrive under the management of Veritas.”

The closing of the transaction is subject to review under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. It is expected that the transaction will close by the end of this year.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 136,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2009 sales from continuing operations were $44.5 billion.

For additional information, visit our Web site: http://www.lockheedmartin.com
Read more

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Integrity Management Consulting, Inc. Named Finalist for GovStar Award — Press Release

October 6, 2010 by · Comment
Filed under: Business Line, Companies, Events, IT, logistics, Press Releases, SETA 

Integrity Management Consulting, Inc. Named Finalist for GovStar Award

Acquisition and Program Management Firm Recognized For Tremendous Growth

McLean, VA—October 6, 2010–Integrity Management Consulting, Inc., an award-winning provider of full lifecycle, integrated acquisition and program management solutions to public sector clients, announces it has been named a finalist for a GovStar Award, which honors local government contracting firms for their technological innovation, workplace environment, growth, veteran support and resiliency. Integrity’s recognition is for the category of Star Performer, a government contractor that has experienced tremendous growth patterns through M&A and organic growth.

“Being named a GovStar Award finalist is wonderful recognition of the impact every member of the Integrity team makes by facilitating our clients’ mission success,” said Integrity CEO Mary Beth Romani. “Integrity’s growth is only possible with their consistently high quality service delivery and expertise.”

Integrity, a small, woman-owned business, has more than doubled its full-time staff since 2009 and supports clients from 13 states. The firm, which is ranked eighth on Inc. magazine’s list of 2010 Top 10 Women-Run Companies and 83rd on this year’s Inc. 500, expects revenue growth of more than 200 percent for 2010.

In addition to the organization’s growth, Integrity was recognized for its positive impact on the public through its work as a trusted partner and advisor to federal government agencies supporting security, Recovery Act, and green initiatives.

Romani added, “I believe creating a positive impact on the lives of citizens begins at home by creating a collaborative culture and rewarding careers for our employees, treating all employees and subcontractors fairly, and ensuring that integrity is a core value present in all aspects of our business.”

Integrity’s achievement will be recognized at SmartCEO’s G3 Conference for CXOs in the Mid-Atlantic region in Washington, DC on October 14, 2010. Winners will be announced at the GovStar Awards dinner in Alexandria, VA on October 26, 2010.

The GovStar Awards are being presented in partnership by SmartCEO and Sheppard Mullin. GovStar recognizes Greater Washington-area companies that strive for excellence in the complex and competitive government contracting sector.

# # #

About Integrity Management Consulting, Inc.

Integrity Management is an award-winning provider of strategic consulting services for acquisition and program management for the public sector. Integrity’s management consulting professionals bring individualized, senior level expertise and a wide breadth of industry experience to provide innovative solutions to business problems. For more information, please visit www.consultwithintegrity.com.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Odyssey Systems Awarded ID/IQ Contract by US Air Force Space Command – Provides Ability to Compete for Up to $450 Million in Services — Press Release

September 8, 2010 by · Comment
Filed under: Business Line, Companies, Events, Press Releases, SETA 

Odyssey Systems Awarded ID/IQ Contract by US Air Force Space Command – Provides Ability to Compete for Up to $450 Million in Services

WAKEFIELD, Mass., Sept. 8 /PRNewswire/ — Odyssey Systems Consulting Group, Ltd., a leading small business provider of technical and management support services for government clients announced today that it has been awarded a “Contract for Space and Missile Capabilities (CSMC)” ID/IQ Contract by the US Air Force Space Command (AFSPC) Peterson AFB, CO. Under this contract, which has a ceiling value of $450 million, Odyssey will provide a broad range of Advisory and Assistance Services (A&AS) and Systems Engineering and Technical Assistance (SETA) services to HQ AFSPC Mission Capability Teams and Directorates. Odyssey’s support to AFSPC includes: Management and Professional Services; Studies, Analyses and Evaluations; and Engineering and Technical Services. This contract will serve as a vehicle to provide technical and analytical tools; support or improve policy development, management, and administration; and improve the operation of systems supporting the AFSPC mission.

Steve Sovaiko, Odyssey’s Director of Space Programs said, “The CSMC contract win represents the continuation of Odyssey’s strategy to bring over a decade of our award-winning technical and management expertise with complex technology projects to the DoD Space market and AFSPC in particular. I’m proud that AFSPC recognizes our Space expertise, and we’re eager to work alongside the Air Force’s Space professionals as we assist them in supporting their critical mission areas.”

Mike Sweat, CEO of Odyssey Systems, added “This award is a major success in a five year effort to expand and extend our functional expertise to the space domain. We look forward to supporting AFSPC’s efforts to rapidly develop and deploy integrated space and cyberspace capabilities that substantially enhance our national security.”

Odyssey Systems Team members include: Apogee Engineering LLC, ARINC Engineering Services LLC, ASRC Aerospace Corp., ASRC Communications LTD, ManTech International Corporation, QinetiQ North America, Inc., Quantum Research International lnc., Science Applications International Corporation (SAIC), Serco, Inc, Special Aerospace Services LLC , Veteran Engineering Technology LLC, and Wyle Information Services LLC.

About Odyssey Systems: Odyssey Systems Consulting Group, Ltd., is an innovative small business headquartered in Wakefield, MA with offices in Burlington, MA, Colorado Springs, CO, Dover, NH, Hampton Roads, VA; Los Angeles, CA, Oklahoma City, OK, San Diego, CA and Washington, DC. Founded in 1997, Odyssey currently employs over 300 highly qualified technical, analytical, administrative and management personnel who provide exceptional advisory and assistance support services, engineering and systems integration expertise to government clients including the United States military services, Missile Defense Agency, Department of Homeland Security, and National Park Service.

Source: Odyssey Systems Consulting Group, LTD.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Despite Gate’s Proposals SETA Contracts Still Being Awarded

Over the last two years the U.S. Defense Department has been reviewing how it handles its support contractors. These Scientific, Engineering, Technical and Analytical (SETA) contractors work side-by-side with government employees and military in acquisition and management offices to aid them in carrying out their work. These contractors have grown in size as part of the workforce and in the amount of money they receive often on time and material contracts where they are paid for the work they do by the hour rather then fixed price.

In 2009 the Department began to “insource” these contract jobs where they were converted to civil service positions. This was driven by the need to increase the size of the government’s acquisition workforce and also to counteract claims that these contractors were doing “inherently government” work that should be done by an official. Insourcing has seen the elimination of several thousand contractor jobs. There have been complaints that insourcing has not necessarily been done fairly with the government choosing positions based on cost estimates rather then their real role. The loss of a contractor position means a company loses revenue and often an employee. Sometimes whole contracts have been insourced leading to serious problems for smaller companies.

Two weeks ago Secretary Gates’ announced a new initiative that rather then just insourcing jobs he plans to cut thirty percent of the contracts over the next three years. He has realized that converting the slots to government may not be saving money in the long run which is his goal and has decided to minimize future conversions. This has roused the ire of the Unions who represent Federal workers who fell that there should be more insourcing.

Despite these moves the government still relies on SETA contracts and continues to announce contracts for them.

In the middle of this month the Missile Defense Agency (MDA) awarded Tetra Tech (TTEK) a support contract through their Missile Defense Agency Engineering and Support Services (MiDAESS) vehicle. This contract if all options are exercised is worth $270 million. Like many large commands that award these kind of contracts MDA set up an omnibus contract in this case MiDAESS that allows qualified companies to bid on tasks that minimize the source selection process.

Last week General Dynamics (GD) won an IT support contract from the U.S. Army Intelligence and Security Command. This is an over $60 million contract to provide help-desk and network support for the organization. IT services are one of the areas that were being considered to insource as they are often contract provided mainly due to the flexibility and pay structure of contractors compared to government. The government has always had a hard time fitting IT into the GS pay scale due to the compensation for these skilled and in-demand personnel.

Until the Defense Department can decide on what its workforce balance should be and what tasks are needed then these kind of contract awards will continue. Gates’ plans to reduce may see smaller contracts but at the same time a smaller contract will provide less support to the government. It may be that a return to the Nineties of “doing more with less” may be happening again as the defense budget restructures to reflect the ending of operations in Afghanistan and Iraq.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

SAIC Wins Contract to Support Army Intelligence Operations — Press Release

SAIC Wins Contract to Support Army Intelligence Operations

Company to Provide a Full Range of Multi-Discipline Intelligence Services in Support of U.S. Army Intelligence and Security Command (INSCOM)

MCLEAN, Va., Aug. 26 /PRNewswire-FirstCall/ — Science Applications International Corporation (SAIC) (NYSE:SAI) today announced that it was awarded a new contract by the U.S. Army Intelligence and Security Command (INSCOM) to provide a full range of multi-discipline intelligence services in support of Army intelligence operations. The multiple award, indefinite-delivery/indefinite-quantity (IDIQ) contract has a one-year base period of performance, four one-year options, and a ceiling value of $492 million for all awardees. Work will be performed at Fort Belvoir, Va., and at other locations as required.

The U.S. Army Intelligence and Security Command is the Army’s operational intelligence force. INSCOM conducts multi-disciplined (signals intelligence, counterintelligence, human intelligence, geospatial intelligence, measurement and signature Intelligence, biometrics) and all-source intelligence operations to include collection, analysis, production, and dissemination; network warfare operations; information operations; knowledge management for the Army intelligence enterprise; and delivers specialized quick reaction capabilities, advanced skills training, and linguist support for deployed forces to enable battle command in support of full-spectrum Army, Joint, Coalition, and

Interagency world-wide operations.

“We look forward to providing cost effective and flexible support across a wide range of skill sets to INSCOM, as they conduct and support relevant intelligence, security, and information operations for the Army,” said John Thomas, SAIC senior vice president and business unit general manager.

About SAIC

SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $10.8 billion for its fiscal year ended January 31, 2010. For more information, visit www.saic.com. SAIC: From Science to Solutions®

Source: SAIC
Read more

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

New Government Conflict Rules Force CSC to Sell Engineering Group

It was reported late last week that CSC (CSC) has agreed to sell its Mission Solutions Engineering unit to avoid potential Organizational Conflict-of-Interest (OCI) issues. CSC follows Northrop Grumman (NOC) and Lockheed Martin (LMT) in this kind of move brought on by stricter OCI rules proposed for defense contracting. CSC will sell the 500 person unit to ASRC Federal Holding Co. which is an Alaskan Native Corporation.

Terms of the deal have yet to be announced. Previously CSC had set up the group as a stand alone affiliate in order to try and firewall off potential conflicts. The Scientific, Engineering, Technical and Analytical (SETA) branch of defense contracting has been focused on as the government worries that contractors will bid on hardware contracts while other parts of the same company are supporting the program offices conducting the purchase. In the past companies relied on firewalls, subsidiaries and Non-Disclosure Agreements to manage that conflict. The new rules make it harder and many of the big contractors have been jettisoning there SETA groups.

Northrop was the first with the sale of their TASC arm worth about $1.6 billion after the U.S. Air Force expressed concerns about two upcoming satellite programs that TASC worked on at the Air Force Space Command. Northrop felt the new satellites would be more valuable to the company then TASC.

Lockheed Martin (LMT) announced in June that they would be selling their Enterprise Integration Group (EIG) due to some of the same concerns.

CSC is following these two large contractors but are not happy with the situation feeling that there are better ways for the DoD to manage the risks in the situation.

The continued separation into different parts of these types of companies may see a return to the Eighties and early Nineties where smaller contractors provide the primary SETA work while the large companies focus on big hardware and IT programs. In the Nineties companies bought or acquired SETA contractors as a way to broaden their work base as these companies grew with the downsizing of the defense civil servant and military workforce.

SETA work is also being reduced by Secretary Gates’ initiative to reduce the number of contractors working in the acquisition field. Several thousand positions have been eliminated and “insourced” into government jobs. This directly reduces the revenue of these companies as they earn only if people are working at these jobs. These concerns of reduced future earnings may also cause companies to re-think their commitment to this type of contracting.

For whatever reason there will probably be more deals similar to these as the OCI rules become more firm and the effect of insourcing or the latest proposal to reduce contractors thirty percent over the next three years start to show some affects. This may be a business area that sees serious decline for the next few years although the swing back-and-forth between contractors and government workers seems to occur cyclically. That means in five or ten years there may be a new demand for contractors of this type.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

TASC, Inc. Wins Five-Year ASPO Contract for Warfighter Support — Press Release

TASC, Inc. Wins Five-Year ASPO Contract for Warfighter Support

CHANTILLY, Va., Aug. 4 /PRNewswire/ — The U.S. Army Special Programs Office (ASPO) has awarded TASC, Inc. a $44.7 million contract to provide systems engineering and technical assistance over the next five years. Under the contract, TASC will deliver SETA support designed to help decision-makers and warfighters on the ground.

“We are proud that ASPO recognizes our deep knowledge and understanding of their mission and our agility to anticipate and counter constantly changing threats,” says Pat Talty, vice president of Mission Engineering at TASC. “Supporting our warfighters is what drives TASC every day.”

Under this contract, TASC will support ASPO’s intelligence and surveillance R&D efforts, Quick Reaction Capability initiatives, and interactions with ASPO stakeholders at every level. In addition, TASC will provide technical expertise in the material acquisition process, planning, and programming system support.

“Whether it’s creating a concept for how applications can be used on a tactical handheld device, or integrating different ISR systems or subsystems into a single solution set, our goal is to ensure that our warfighters on the battlefield have the tools and information they need to achieve mission success,” says Talty.

ASPO is an acquisition organization that performs TENCAP functions for the U.S. Army and conducts research and development and facilitates integration efforts in the surveillance and reconnaissance and military intelligence functional areas to fulfill the Army’s tactical requirements.

For more information and career opportunities, visit http://www.tasc.com/.

About TASC, Inc.

Founded in 1966, TASC, Inc. is the leading, non-conflicted provider of advanced systems engineering, integration and decision-support services to the Intelligence Community, Department of Defense and civilian agencies of the federal government. A unit of Northrop Grumman Corporation from 2001 to 2009, TASC became an independent company in December 2009. With 5,000 employees in 38 locations, TASC generates more than $1.6 billion in annual revenue. For more information and career opportunities, visit our website at www.tasc.com.

Source: TASC, Inc.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

OCI Rules Lead Lockheed To Separate Engineering Services Unit

Over the last twenty-five years the SETA support business has become a major component of defense contracting. Scientific, Engineering, Technical and Analytical services work inside military acquisition, testing and other support organizations to aid them in their missions. The decline in the size of the DoD civilian work force and the increasing complexity of weapon acquisition has led to increases in the demand for their services. Often they are former military or civil servants who provide knowledge and skills immediately for the government. Because of this growth area many larger defense contractors either established SETA divisions or acquired companies to get business.

The Obama Administration as part of its reforms led by Secretary of Defense Robert Gates is moving to reduce the SETA contribution to defense work. They are doing this through two ways. First they are increasing the number of government positions by “insourcing” contractor positions to government slots. They are also tightening the Organizational Conflict of Interest (OCI) rules to prevent a company’s SETA personnel having a role in the decision to award its hardware side a contract. While contractors are unable to make decisions for the government they often support contract awards by doing evaluations and analysis of competing bids. Normally a company will “firewall” the two different business units so that conflict cannot occur but the changes over the last two years have required more than just that.

Northrop Grumman (NOC) was the first major defense contractor to react to this situation by selling their SETA unit, TASC. They were concerned because TASC provided support to Air Force satellite procurement offices and those were requiring Northrop to sign documents to prevent OCI that were felt to limit Northrop’s opportunities to bid. TASC was sold to a private equity firm and became a stand alone company.

Now Lockheed Martin (LM) has decided to separate their engineering support division as well. The Enterprise Integration Group (EIG) will be divested as it primarily does system integration and engineering services to the Government. This is a small part of Lockheed’s total business but still it is revenue and the company felt with the new OCI rules that the unit’s growth potential was not there.

SETA contracts were attractive as they only required a company to provide personnel. Often the contractors worked in government offices so the company did not even need to supply facilities or support equipment and services as well. With the two decisions to tighten OCI and reduce the number of contractors overall the business will probably decline in the near future. This means that there will be contraction in the number of companies providing these services and a refocus by the big contractors on making and providing the government hardware.

Photo from moriza’s flickr photostream.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

TASC, Inc. Completes Transition to an Independent Company — Press Release

TASC, Inc. Completes Transition to an Independent Company

Former Northrop Grumman subsidiary is the first division of the major prime contractors to become independent and non-conflicted Anticipates hiring for nearly 1,000 jobs over the next year

CHANTILLY, Va., Dec. 18 /PRNewswire/ — TASC, Inc. (TASC) a premier provider of advanced systems engineering and advisory services, has completed the transition to an independent company, ensuring full compliance with new government organizational conflict of interest (OCI) policies. Without OCI constraints, TASC will now be able to build upon its strong base and expand into new markets.

An investor group led by General Atlantic, LLC (GA) and affiliates of Kohlberg Kravis Roberts & Co. (KKR) acquired TASC from Northrop Grumman Corporation, in partnership with the management of TASC. TASC is the first company formerly part of a major prime contractor to become independent and non-conflicted. The 43-year-old company’s nearly 5,000 employees serve a range of intelligence, defense and civil agencies, and generate approximately $1.6 billion in revenue.

“Today, we begin a new and exciting chapter in our long history,” said Wood Parker, president and chief executive officer of TASC. “TASC has an exceptional foundation of integrity, service, and commitment to our customers. As an independent company, we are well positioned for continued growth. We will continue supporting our existing customers, expand into new markets, and broaden our portfolio without burdening our customers with OCI constraints and restrictions.”

Founded in 1966, TASC is one of the most recognized independent, non-conflicted providers of advanced systems engineering and advisory services to the defense, intelligence, and federal markets. The company’s portfolio includes advanced concept and technology development; systems/enterprise engineering and integration; program and acquisition management; mission planning, engineering and operations; system/policy studies, analysis and evaluation; and security and program protection engineering.

“TASC’s new ownership structure positions us to continue to invest in research and development and to attract the best and the brightest employees,” said Parker. “Already we are increasing our recruiting and hiring efforts to meet our new business requirements. We are hiring to support our customers on current funded projects and plan to hire nearly 1,000 positions over the course of the next year.”

TASC will be hiring for a variety of positions in the Washington, D.C. area and across the country. Information about the company’s current job openings is available at www.tasc.com.

About TASC

TASC is a premier provider of advanced systems engineering and advisory services across the Intelligence community, Department of Defense and civilian agencies of the federal government. For more than 40 years, we have partnered with our customers toward one goal–the success of their missions. TASC’s broad portfolio of services includes cyber security; advanced concept and technology development; enterprise engineering and integration; program, financial and acquisition management; system/policy studies and analysis; test and evaluation; and program protection engineering. For more information, visit our website at www.tasc.com.

About General Atlantic LLC

GENERAL ATLANTIC is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, long-term investment horizon and a deep understanding of growth drivers to partner with exceptional management teams and build enduring businesses worldwide. Established in 1980, GA manages approximately $14 billion in capital and has more than 75 investment professionals based in Greenwich, New York, Palo Alto, London, Dusseldorf, Hong Kong, Beijing, Mumbai and Sao Paulo. For further information and a listing of GA’s public and private portfolio companies see www.generalatlantic.com.

About KKR

Founded in 1976 by Henry Kravis and George Roberts, KKR is a leading global alternative asset manager with $54.8 billion in assets under management, over 600 people and 14 offices around the world as of September 30, 2009. KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platforms. KKR is publicly traded through KKR & Co. (Guernsey) L.P. (Euronext Amsterdam: KKR). For additional information, please visit KKR’s website at www.kkr.com.

CONTACT
DeeAnn Connors
(703) 653-5752
[email protected]

Source: TASC, Inc.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Army Awards Forensic Contract

In our continuing saga of the Department of Defense buys a great deal of different things the Army awarded a contract to American Systems to provide IT support for criminal forensics services. This while it may seem like the U.S. Army is getting into the CSI business is really not that surprising. Under this one year with four option yeas American Systems will provide support for the Defense Forensic Enterprise System (DFES) in use for both military criminal investigations and combat operations. If all options on the contract are exercised it will be worth up to $145 million.

The contract is structured for task orders and this award qualifies American Systems to compete for discrete task orders. This means that despite qualifying there is no guarantee that the company will receive any work or revenue. The Army has used these type of contracts commonly with SETA support to their large acquisition commands to allow entities to buy the necessary services from qualified vendors.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Reflecting Change In Focus SAIC Moving Headquarters To Northern Virginia

One of the top ten defense contractors, SAIC, is moving its corporate headquarters from San Diego, CA to outside Washington, DC to Fairfax, VA. The company obviously has a large presence outside Washington, DC where many of its contracts are executed. The move to Fairfax, VA is not completely unexpected and the company is using the excuse of the better business climate in that state to support the move.

The company will still stay in California as it has many customers there not least the Navy’s SPAWAR in San Diego. The cost to California will be several hundred of the company’s highest paid employees who will now be moving to Virginia and spending their earnings and paying taxes there. The cost of living even in Northern Virginia will be much less for their employees just in housing and income taxes alone.

The move also comes at a time when the Washington, DC area is going to experience solid growth in the Federal Government work force due to some of the initiatives of the Obama Administration. Having their leadership in the DC area will facilitate business development and cultivating relationships with politicians and bureaucrats alike.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

SAIC Wins IED SETA Contract

The United States Department of Defense awarded a Scientific, Engineering, Technical and Analytical (SETA) support contract for the Joint Improvised Explosive Device Defeat Organization (JIEDDO) to SAIC. The contract is for five years and has a ceiling amount of over $400 million. SETA support will cover all aspects of program management and engineering efforts by the organization.

The IED has proved to be the major threat to U.S. forces in Iraq and Afghanistan for the last five years or so inflicting a significant number of casualties. The DoD has set up and run a variety of organizations to coordinate the efforts to defeat them. At one point there was a joint program office and now this organization. All different types of defenses have been looked at and the most visible is the MRAP.

MRAP are passive defenses using armor to defeat the mines and blast weapons. Active defenses have been jammers to prevent the command detonators as well as different detection systems. The U.S. has poured a great deal of money into this effort and this contract reflects that. There is of course no guarantee that all of the contract will be awarded to fill the ceiling.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Contractors Good For Something — Being A Force Mulitplier In Afghanistan

For the last eight years one of the biggest complaints from the American left was that George Bush was in the sway of big government contractors. They did too much of the housekeeping services in Iraq and Afghanistan. Companies like KBR lined their pockets at the expense of the troops and taxpayers. They were doing jobs that green suiters or civil servants should be doing.

Unfortunately due to the small size of the military they had to use contractors for those jobs. This has been a trend going back thirty years. Use contractors to wash clothes, cook food and clean latrines. Then there would be more soldiers freed up to do the fighting. Despite a consistent philosophy on the use of support contractors Bush received holy hell about it. True the scale in Iraq was much larger then it ever had been before and the contracts were in some case let quickly and didn’t have enough oversight but people were trying to get things done.

Now the word is that Obama wants to increase the number of foot soldiers in Afghanistan but without increasing the number of U.S. troops deployed to that country. One way to do this is to reduce the number of soldiers assigned to logistic support units, command headquarters, maintenance and so one and do a one-for-one swap with “trigger pullers”. How do you do this and still provide the enormous tail that U.S. forces need? Use contractors.

It might be possible to assign U.S. civil servants to do this but there have been many issues in the past with getting them to serve in Iraq and Afghanistan. It is too dangerous or not career enhancing. Certainly there is a number of people assigned or who volunteer for these positions but to get the kind of capability that is needed it will have to be contractors. Contractors like KBR or other such companies experienced in logistics and maintenance.

This will not be an easy or quick switch. The ground troops will have to be designated from either those in Iraq or in the U.S. recovering from a recent deployment. Then they will have to be trained and equipped up. A plan will be figured out how to deploy a 1000 support troops and replace them with a battalion of infantry. The support infrastructure will probably have to switch first. Contractors taking over for the rear echelon folks.

Another challenge will be writing and awarding the contracts for this. Unless they plan on expanding existing contracts there will be a several month period of writing the RFP, putting it out and evaluating the proposals. Awards may be protested which could add to the delays. Once awarded the contractors will have to hire their people and get them into place. Expect the almost constant sniping from Congress and the Media about this. See the LOGCAP contract from Iraq for example.

The Obama administration really cannot do anything else. They have reached the fish-or-cut-bait point. Either abandon Afghanistan or pour resources in. At the same time he does not want to “surge” troops there as that will make him and many Democrats look like idiots for opposing the same in Iraq. So he does the next best thing: surge contractors to maximize his troop availability. Good luck to them and the soldiers.

Cross posted at Inane Taskers

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

ADAPTIVE METHODS AWARDED CONTRACT WITH IWS5B — Press Release

adapatives

ADAPTIVE METHODS AWARDED CONTRACT WITH IWS5B

Centreville, VA., June 1, 2009 – Adaptive Methods was awarded a three-year contract and was funded an initial $4.5 million. Adaptive Methods will provide services to the Surface Ship Undersea Warfare (USW) Combat Systems Program Office (IWS5B).

The Company’s goals for the contract are to foster innovative technical solutions to the myriad of USW challenges, to enable the insertion of promising technologies into both new and existing Surface Ship Undersea Warfare combat systems, and to mitigate COTS hardware end-of-life issues by using portable software implementation of improved processing algorithms. The range of work will include system engineering, architecture design, software engineering, algorithm and prototype development, and installation, integration, and test activities.

Work will be performed by personnel from all Adaptive Methods offices including the new Rhode Island office.

Adaptive Methods, headquartered in Virginia with offices in Maryland, Florida, Tennessee, and Rhode Island, is a developer of advanced sensor processing and computing architecture products for surveillance, security, and military combat systems.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Despite Gates’ Goals CACI Signs Contract To Support DoD Acqusition Office

The Undersecretary of Defense (Acquisition, Logistics & Technology) is the DoD office that overseas the Services acquisition programs. Secretary Gates‘ has announced significant acquisition reforms along with President Obama since January 20th. One of these is to reduce the contractor involvement in the acquisition workforce and decisions. Despite this the office just awarded a five year contract to CACI to provide support to all aspects of the offices’ work. Washington Technology reports that this is a continuation of a contract that the company has had for several years before. The contract is worth about $30 million.

The best efforts not with standing it will take several years to remove contractors form the positions they are in supporting DoD. There is currently a great deal of reliance on them as they provide personnel and experience not necessarily available with the current civil service work force. That does not mean they cannot be replaced, but in the past there has been a tendency to convert the positions to government. That is what Gates plans to do in the next few years. More to come on this for sure.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

SAIC Revenue Reaches Milestone

March 27, 2009 by · Comment
Filed under: Business Line, Companies, Earnings, Events, IT, logistics, S&T, SAIC, SETA 

Fox Business reports that SAIC reached an annual revenue of over $10 billion when it reported its Fiscal Year 2009 results. SAIC is one of the top ten defense contractors and primarily provides engineering and consulting services to the Pentagon. Last year it generated an operating income of $776 million which is a growth of 15% over 2008. The company also provided strong guidance for 2010 due to a backlog of almost $17 billion in contracts.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Next Page »

>