News & Events

Industry Week in Review – July 14, 2017


Aerospace & Defense Update

Earlier this week, the Terminal High Altitude Area Defense (“THAAD”) system, which was previously designed for short-range defense, had its first test against an intermediate-range ballistic missile (“IRBM”), a weaponry system mirroring North Korea’s.  The results of the test were promising as the system seamlessly defended against the incoming threat.  The success adds credibility to the U.S. military’s missile defense program, which has come under intense scrutiny in recent years, due to various delays.  Recently, THAAD has been implemented in Guam and South Korea, which has drawn resistance from China and Moscow, who believe the implementation expands U.S military infrastructure in Asia and risks upsetting the military dynamic in the region.  However, the U.S contends the program is vital to regional stability and global safety.  The Missile Defense Agency plans to deliver 52 more THAAD systems to the U.S. military by the end of 2018, totaling 210 deliveries since 2011.

The U.S. Navy recently announced its search for a multi-mission guided-missile frigate that is both agile and lethal.  The competition calls for private companies to update any existing frigate designs to create a ship capable of joining a full carrier strike group and withstanding war-zone environments.  By drawing from already existing designs, the Navy hopes to speed up the process and deploy the ship with the fleet as soon as possible.  In addition to speed, durability, and fighting capabilities, the Navy anticipates the frigate will contain sensors connected to the rest of the fleet, expanding the mission viewpoint.  The new frigate program will be called FFG(X). The Navy expects to award this contract in 2020 and is planning to buy one ship per year beginning in 2020.

Government Technology Solutions Update

Despite overwhelming support from the House of Representatives and the White House, the Modernizing Government Technology Act has stalled in the Senate.  The IT modernization bill passed the House in May, three weeks after its introduction; however, the Senate Homeland Security and Government Affairs Committee (“HSGAC”) has yet to schedule a committee markup. Concerns over funding mechanisms have arisen as a result of the General Services Administration’s (“GSA”) reorganization, which rolled the Technology Transformation Service (“TTS”) up into the Federal Acquisition Service.  The House’s legislation, naming TTS as the home of the central fund for the bill, creates an obstacle as the fund will now need to move to the GSA’s administrative level.  Regardless, the bill will most likely have to go through the House again to accommodate the changes to the GSA’s structure.

The National Oceanic and Atmospheric Administration (“NOAA”) has awarded positions to 23 firms for the ProTech-Satellite Domain IDIQ opportunity.  The award consists of five full-and-open awardees and 18 small business awards.  The vehicle will be used for professional, technical, scientific, and engineering services under the Satellite Domain.  This opportunity is a $3 billion indefinite delivery / indefinite quantity (“IDIQ”) contract vehicle supporting of five Domains: Satellite, Ocean, Fisheries, Weather, and Enterprise Operations.  There are four task areas under the Satellite Domain consisting of: Studies, Analyses and Reports, Applied Research and Consulting, Data Collection and Surveys, and Program and Project Management.  

Big Movers

FLIR Systems, Inc. (up 8.8%) – Share prices were up this week following a strong financial performance after the appointment of a new CEO in late May and a stock rating upgrade from Raymond James this week

Rockwell Collins (up 3.9%) – Share prices were up this week following the announcement of the company supplying tactical radios for the US, Coalition Forces as part of a joint venture with BAE Systems

Transactions

Consolidated Machine & Tool Holdings, LLC has acquired Astro-Tek Industries, Inc., a provider of specialized equipment used by Tier 1 aerospace and defense companies. Terms of the deal were not disclosed.

Ensign-Bickford, Inc. has acquired Honeybee Robotics, Ltd., a provider of advanced robotic and electromechanical systems. Terms of the deal were not disclosed.

Agile Six Applications, Inc. has acquired The Informatics Applications Group, Inc., a provider of leading mission critical program initiatives in support of those who serve in the military and civilian sectors of our government.  Terms of the deal were not disclosed.

Convergint Technologies, LLC has acquired SigNet Technologies, Inc., a provider of integrated physical security management systems.  Terms of the deal were not disclosed.

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