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Digital Fusion Now Part of Kratos

Kratos Defense & Security Solutions announced that it had completed the acquisition of Digital Fusion as an expansion of their capabilities in UAV and C4ISR. MSNBC has the press release. Digital Fusion which is based in Hutsville, AL and primarily supports the U.S. Army provides Kratos new opportunities in that market. One of the easiest ways for a company to grow capability or enter a new market is to acquire an existing company that already has the work. While there are sometimes issues of merging corporate cultures and people in the long most of these M&A activities are beneficial.

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Story on earmarks illustrates issue

The Wall Street Journal and The Huntsville Times both have stories today on Congressional Earmarks, the Defense budget and corruption. See the stories here and here. The Journal highlights how a Huntsville company, Digital Fusion, received an earmarked contract from a Texas Democrat at around the same time they gave him a large campaign contribution. The Times is following up on a recent case where Federal workers at the Space and Missile Defense Command (SMDC) were taking bribes from contractors for giving contracts to them. In that case the contractors have yet to be named. The Federal investigators as part of their follow-up are looking at companies that received earmarked contracts through SMDC. The first case is not a crime unless you can tie the contribution directly to the contract award which is almost impossible without some kind of documentation. That is what befell Congressman Cunningham from California as they had written evidence linking the two events. SMDC spreads a lot of RDT&E money around each year, much of it earmarked by local Senators and Congressman. All received campaign contributions from contractors and deny any linkage. You be the judge.

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