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DRS Technologies Awarded Contract to Provide the U.S. Army with Target Location and Designation Systems — Press Release

ARLINGTON, Va., April 29, 2013 /PRNewswire/ — DRS Technologies, Inc., a Finmeccanica Company, announced today that it has been awarded a $15.5 million contract by the U.S. Army for an advanced targeting system. The cost-plus-fixed-fee, incrementally-funded contract by the U.S. Army Contracting Command, Aberdeen, MD is for the Engineering and Manufacturing Development phase of the Joint Effects Targeting System (JETS) Target Location and Designation System (TLDS).

The management, design and manufacture of these prototype systems will be performed at DRS facilities in Dallas, Texas and Melbourne, Florida with an estimated completion date in March 2016.

“The DRS JETS solution is the result of several years of innovation and development. We offer an integrated design that affordably improves soldier precision targeting capability,” said Mike Sarrica, President of DRS Network & Imaging Systems. “This award is a testament to the hard work and dedication of DRS team members to understanding our customer’s requirements and developing, qualifying, testing and producing a superior product.”

Systems delivered as part of the JETS program will provide the dismounted Forward Observer and Joint Terminal Attack Controller the ability to acquire, locate and mark for precision Global Positioning System-guided and laser-guided munitions. The TLDS component of this system will provide the dismounted Forward Observer with a common and light-weight handheld precision targeting capability.

About DRS Technologies
DRS Technologies, Inc. (DRS) is a leading supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide. The company is a wholly owned subsidiary of Finmeccanica SpA (FNC.MI), which employs approximately 70,000 people worldwide. Within DRS, the Network and Imaging Systems (NIS) Group manufactures and supports advanced electro-optical sensor systems, and develops innovative networking capabilities that integrate these sensors in a broader tactical C4 environment. NIS operates in Dallas, Texas; Melbourne, Fla.; Cypress, Calif.; Huntsville, Ala.; Columbia, Md.; and the United Kingdom. For more information about DRS, please visit the company’s website at www.drs.com.

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Navy Buys Internet Services for Troop Morale & Welfare

The U.S. military is made up of mainly young men and women who form the bulk of the enlisted members. They have grown up with the internet and instant communications. Over the last ten years they have added such tools as Facebook, Twitter, Skype and other social media applications. The U.S. military recognizes this and in a move to help morale and welfare contracted to set up internet cafe services across the world.

DRS Technical Services (DRS) has been awarded an Indefinite Quantity/Indefinite Delivery (ID/IQ)m contract to provide these kinds of services by the U.S. Navy. The value of this contract if all options are executed would be over $250 million. As with all ID/IQ contracts there is no guarantee that the Navy will order any tasks under this so even though DRS has qualified for the work they may get little or none out of it.

The services will be to set up and maintain logistics support for communications services for DoD and other government agencies internet cafes and site for personnel use. The majority of the work will be done in Iraq and Afghanistan but will also have support in Germany and the U.S. It looks like this task will be used by other Agencies as they are the majority of personnel deployed in Iraq right now.

The need for these kind of services is just a normal growth of the other Morale, Welfare and Recreation (MWR) services provided by the U.S. military. This includes commissary and exchanges for shopping as well as organized sports and tourism and other activities meant to fill time. The internet connection is especially key now to provide troops with family contact beyond the traditional mail.

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Another BRAC Contract to Help Navy Move

In the last round of the Base Realignment and Closing (BRAC) for the U.S. Defense Department one of the goals was the consolidation of research, test and training centers. This work has proceeded over the last four years with a goal of most of it being completed by 2012. As part of the decisions the Navy is moving their Integrated Combat Systems Test Facility (ICSTF) from California to the Naval Surface Warfare Center (NSWC) in Dahlgren, VA.

The ICSTF has been located at the Point Loma facility near San Diego for over thirty years. Its role is to provide certification of software and programs that control the weapon systems on ships. It is part of the Navy’s Space and Naval Warfare Systems Command (SPAWARS). SPAWARS itself was one of the original BRAC changes moving from the Arlington, VA area to San Diego in the Nineties.

To support the various parts of BRAC many different contracts have been issued to a number of contractors who aid in the transfer of everything from personnel, equipment, manage IT handover and housekeeping services. To support the move of the ICSTF DRS Technologies was given a contract by the Navy worth up to $25 million.

Under the contract DRS will provide support for general activities including the laboratory transition and set up.

BRAC’s long term goal is to save the Department money through creating efficiencies and reducing overhead. As always with these types of plans there is an upfront cost that must be paid. These kind of contracts are just one part of it as the bigger cost will be either relocating or replacing the employees and the possible construction required to build or rehabilitate buildings.

When BRAC is over there should be a smaller, more focused U.S. defense establishment.

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US Government takes a step to allow DRS purchase by Finmeccanica

October 27, 2008 by · Comment
Filed under: Acquisitions, DRS Technologies, Finemeccanica, IT, Italy 

The US Government’s Committee on Foreign Investment approved the planned acquisition of DRS Technologies by Italian company Finmeccanica. The deal is worth over $5 B and is structured as a stock purchase at $81 or so a share. DRS traded today at just over $80. DRS had long been rumored as an attractive takeover target, and the purchase by a European company again highlights their desire to get into the US Defense market.

See a short article at NJ.com.

Cross posted at BNET.

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DRS sells more generators

As part of a ID/IQ contract with DRS to buy generators the US Army ordered $91 M worth of options. The funding will purchase 5,000 Tactical Quiet Generators (TCG) in a variety of sizes. The generators have been in development since 1997 and DRS has delivered several thousand of them. Since the US Army is dependent for many things on reliable sources of electricity generators are important. In tactical situations generators tend to attract attention through their noise and infra-red signatures. Anything that can be done to reduce these signatures improves the survivability of forces.

For more see the press release at MarketWatch.com.

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DRS reports

DRS Technologies reported that sales were a record high for the last quarter. See an article here. DRS also reported a 40% increase in profits and a record backlog of over $1 B dollars. As discussed here, Finmeccanica has agreed to buy the American company. This would be one of the largest foreign acquisitions of an American defense company.

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US defense budget spreads the wealth

These three articles illustrate how the US defense budget as it has grown over the last several years effects localities economically. This one and this one discuss how Western Pennsylvania relies on the budget to support local industry. This article about Hawaii shows the effect of the Pacific Missile Range Facility on the island of Kaua’i. Although tourism is the major economy on that island the conduct of AEGIS missile defense tests certainly adds money to the local economy. Read more

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Finmeccanica follows through

Bump – Fresh off good financial reports for the quarter, EADS is now looking at DRS Technologies as well. See an article here. This makes it sound like DRS might be a good buy.

As rumored this weekend Finmeccanica bought DRS today. The deal is for around $5 B. See an article here. This is the biggest acquisition so far by an European company. DRS has been an attractive take over target for a few years, one of the reasons its stock was so high. If this deal can make it through the necessary regulatory and legal review it will be quite stunning. Prior to this BAE and EADS had been doing smaller acquisitions, under a $1B. In today’s political environment due to the KC-45 deal and it being an election year it should be interesting to see Congress’s reaction.

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DRS Technologies wins sub-contract from Booz Allen Hamilton to inspect DoD fuel sites

DRS Technologies was hired as a sub-contractor by Booz Allen Hamilton to conduct inspections of DoD fixed fuel sites world wide. See a UPI article for more details. BAH had been given a logistics support contract by the Defense Logistics Agency recently. DRS technologies currently supports DoD fuel system in the US.

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