Weekly Roundup June 29 – July 2 2015

Weekly Roundup
June 29 – July 2 2015

A Note From Our President & Founder Jim Garrettson

The halfway point of 2015 and Fourth of July weekend offers us a good opportunity to look back on the year’s most significant developments in the GovCon sector, specifically in the M&A space.

These six months have offered us announcements and completions of deals in all shapes and sizes, which ranged from either combinations of forces to divisions.

Contracting and healthcare market observers awoke this morning to learn that Centene will purchase Health Net for $6.3 billion in cash and stock and take on $500 million in assumed debt.

Centene’s federal market aims through the deal include the expansion of its footprint in the Department of Veterans Affairs and the Medicare and Tricare programs.

Only one month into 2015, Harris Corp. unveiled its plans to acquire Exelis in a deal worth close to $5 billion in cash and stock that closed in late May.

Harris offered us a glimpse into next steps for its future this week when the Melbourne, Fla.-based company said it will reorganize into a four business-unit structure that will take effect Friday.

The early part of 2015 also saw the official start of Orbital ATK, which formed out of Orbital Sciences’ merger with ATK’s aerospace and defense groups in a transaction the companies valued at nearly $5 billion at the time of the original announcement.

Raytheon started its latest play into the commercial cybersecurity market in June when the missile maker and San Francisco-based investment firm Vista Equity Partners wrapped up the formation of a joint venture that operates under the name ”Raytheon | Websense.”

The venture — which Raytheon owns 80 percent of — will offer what it calls “defense-grade cybersecurity” technologies to more than 21,000 commercial sector customers.

Within GovCon’s services segment, Engility completed its purchase of TASC for $1.3 billion all-stock in February to make a company that makes 53 percent of its revenue from intelligence and civilian agencies, with the other 47 percent from defense customers.

SAIC also closed its $790 million cash acquisition of Scitor in May to add new contracts with the Air Force and classified intelligence community work and Maximus wrapped up its $300 million cash buy of Acentia in April to gain more federal contract vehicle positions.

Two transactions GovCon observers will have their attention on as the year unfolds include one company’s impending split in two and another’s transition to become a publicly-traded company.

CSC announced its plan to divide in May and intends to finish the split by the end of October, after which one company will focus exclusively on the U.S. public sector market and the other in the commercial and international government segments.

Special purpose acquisition company Global Defense & National Security Systems said in June it would buy STG for $165.5 million in cash and stock and plans to close the deal by September.

GDEF made its initial public offering in October 2013 and has sought to build a mid-tier GovCon technology and services contractor since it undertook that IPO.

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Air Force Secretary Deborah Lee James will offer her perspective on the service branch’s current status and future plans to the Potomac Officers Club July 22 as the “2015 Air Force Forum” keynote speaker.

James became the Air Force’s top civilian officer in late 2013 after 11 years at SAIC.

         

Air Force Chief Technology Officer Frank Konieczny and Maj. Gen. Arnold Bunch, military deputy to the assistant secretary for acquisition, will also address the GovCon executive audience.

Speakers that will give a private sector perspective on the Air Force will include Bill Gattle, president of space and intelligence systems at Harris Corp.; and Trey Obering, an executive vice president at Booz Allen and a retired lieutenant general who once led the Missile Defense Agency.

Prior to that, the Potomac Officers Club will kick off its summer “CIO Speaker Series” for industry and government executives to hear from federal IT leaders on their technology priorities.

        

Doug Wolfe, the CIA’s chief information officer, will be the first federal CIO to address the POC at a July 16 breakfast event with Pentagon CIO Terry Halvorsen scheduled for August 6 and Transportation CIO Richard McKinney for August 20.

Heidi Shyu, the Army’s chief acquisition official, will address the POC September 2.

Click here to register for these events and to view POC’s full calendar.

THIS WEEK’S TOP NEWS STORIES

Mac Curtis, Steve Omick: New ‘Vencore Labs’ Org to Have Gov’t, Commercial Sector Footprints
Vencore unveils its new applied research hub nearly a year after the company launched its post-SI Organization brand.
Ray Duquette: CAE to Build Poseidon Flight Simulators for US, Australian Military
Duquette, CAE USA’s president & GM, says this deal marks the first international sale of a “comprehensive P-8A training system.”
Systems Made Simple Lands VA Caregiver, Payroll Support Contracts; Horace Blackman Comments
The Lockheed Martin subsidiary will help the VA operate the agency’s caregiver application tracker and payroll operations support system.
Mike Tanner on Hitachi Data Systems’ US Federal Market Entry, Data Center Consolidation Trends
HDS’ federal subsidiary lead discusses the organization’s 2013 start and origins in Q&A with ExecutiveBiz.
Michael Shrader on Carahsoft’s Federal Market Partnerships, Role of Product Resellers
Shrader, a VP at Carahsoft, also overviews how state and local agencies use federal vehicles for IT purchases in conversation with ExecutiveBiz.
Lockheed Awards Space Fence Thermal Tech Subcontract to Domaille; Tim Kanne Comments
Domaille expects to start the delivery of the thermal management components to Lockheed by the middle of this year.
Deltek: 38 Cloud Offerings From Industry Hold FedRAMP-Compliant Status
The research firm says 18 cloud products are certified by FedRAMP’s JAB panel, 17 by individual agencies and 3 from a cloud assessor’s report.
SBA: Agencies Beat Small Business Contracting Targets for 2014
Federal agencies awarded 25 percent of contracts to small businesses in FY 2014, an increase from the 23.4 percent recorded in the prior fiscal year.
Susan Gordon to Issue NGA Acquisition Framework
NGA’s deputy director aims to have the guidance on technology procurement finalized and released to employees within the next sixth months.
Lt. Gen. Robert Neller Nominated for Marine Corps Commandant Role
The four-decade USMC veteran would succeed Gen. Joseph Dunford, the White House’s nominee for chairman of the Joint Chiefs of Staff.
Robert Girrier Appointed Naval Unmanned Weapons Systems Director
The vice admiral and 32-year Navy veteran previously served as Pacific Fleet’s number-two officer and also held the rule of chief of staff there.
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