Industry Week in Review – January 2, 2015
Aerospace & Defense Update
Earlier this week, Bombardier Inc. announced a deal with an unnamed customer for a firm order of 16 of its CSeries regional jets, along with options to purchase an additional eight jets. The order, for the CRJ900 NextGen model, is worth approximately $1.12 billion at list price should the customer exercise its options. Deliveries of the company’s new, bigger CSeries aircraft are expected to begin in the second-half of 2015. The NextGen model of the CRJ900 aircraft is upwards of 5.5% more fuel efficient than its predecessor, making it one of the most cost efficient jets in its class. Including this agreement, the Company has secured firm orders for 1,183 CRJ Series jets, with 359 orders for the CRJ900 and CRJ900 NextGen aircraft.
Raytheon Technical Services was awarded a $270.5 million IDIQ with the U.S. Navy. Under the contract, Raytheon will provide avionics support for the Navy’s V-22 tilt-rotor aircraft fleet. Specifically, Raytheon’s technical services unit will cover V-22 avionics software acquisition, engineering, integration, and testing services. Additionally, the Company will provide support to the classified and unclassified V-22 laboratories, configuration, and data management. Raytheon Technical Services has provided technical and support services related to the V-22 since the inception of the joint-service, multi-mission aircraft. Work under the contract is scheduled to be completed in December 2019.
Government Technology Solutions Update
The National Geospatial Intelligence Agency (“NGA”) is the first within the Intelligence Community to put a GitHub-developed app in Apple’s iTunes store and is expected to expand its apps into Google Play in the coming weeks. The app, Anti-shipping Activity Messages (“ASAM”), is the first open-sourced app that was created directly through GitHub and takes advantage of innovation driven by the open-source provider’s six million users. The NGA is developing additional apps across 16 different topics such as anti-piracy and geospatial information generation and provides successful open-source examples to the IC.
The Federal Bureau of Investigation (“FBI”) has announced plans to add cybersecurity special agents to investigations teams. Cyber now permeates every aspect of the FBI’s Criminal, Cyber, Response, and Services Branch including counterterrorism, criminal investigations, and traditional cyber-attacks. As such, the FBI is seeking cybersecurity capabilities to combat these advanced criminal threats and needs additional talent to do so. In particular, it is looking for seasoned investigators that are knowledgeable in hacking, network intrusion, data breaches, and botnets.
VSE Corporation (Up 13.1%) – Shares were up this week after the Company announced that it will acquire the Prime Turbines, CT Aerospace, Kansas Aviation, and Air Parts & Supply Co. business units of Killick Aerospace Group.
NCI to acquire Computech, a provider of agile and lean application software development and IT operations and maintenance. The deal is worth $55.8 million and Computech generated $40.0 million in revenue in 2014.
VSE Corporation to acquire Killick Aerospace Group’s Prime Turbines, CT Aerospace, Kansas Aviation, and Air Parts & Supply Co. business units, providers of maintenance, repair, and overhaul services and parts supply for corporate and regional jet aircraft engines and engine accessories. The deal is worth $184.0 million, exclusive of $45.0 million in earn-outs.