There is considerable buzz in the marketplace about activity, with rumors abounding about potential public government and defense firms exploring strategic alternatives (e.g., Mercury Systems), as well as an expectation of continued divestitures (e.g., QinetiQ’s divestiture of its U.S. Services Division), as companies realign and refocus their growth strategies.
According to a new Deloitte report analyzing the financial performance of the top 20 major U.S. aerospace and defense sector companies, U.S. defense contractors posted a 2.6% revenue decrease in 2013.
Consolidation remains a key IT priority for the Department of Defense (“DoD”) and the nation’s Intelligence Community (“IC”). On March 18th, the Defense Intelligence Agency (“DIA”) released an RFP for its Enhanced Solutions for the Information Technology Enterprise (“ESITE”) contract vehicle, a 5-year, $6.0 billion, multiple-award IDIQ, designed to integrate IT services across national intelligence agencies.
Boeing’s first quarter earnings release this week offered generally clear skies, with a strong tailwind from its commercial operations. The world’s largest aerospace / defense company delivered 161 aircraft in the first three months of 2014, decidedly trumping Airbus’ 141 deliveries in the same period.
In recent years there has been a flurry of consolidation via acquisitions within the Healthcare Information Technology (“HIT”) space. As mentioned in a previous post, Trending Towards Healthcare, billions of dollars annually are spent under various contracts to address HIT high priority initiatives (e.g., technology integration into day-to-day activities and security breach mitigation).
According to a new Department of Defense report this week, the price tag for Lockheed Martin’s F-35 Joint Strike Fighter, the Pentagon’s most expensive weapons acquisition program, increased by $7.4 billion in 2013.
Aviation maintenance, repair, and overhaul (“MRO”) providers convened at MRO Americas, the industry’s marquee conference, in Phoenix this past week. Analysts speaking at the conference stated their predictions that the overall North American MRO market will face a constrained growth environment over the next decade.
This week, select U.S. military service groups sent Congress “wish lists”, called unfunded priorities or unfunded requirements, totaling approximately $36 billion in value of priority items that were not included in the Pentagon’s 2015 budget proposal.