Over 26,000 individuals attended this year’s annual Association of the United States Army (“AUSA”) conference in Washington D.C. Every year a variety of attendees, from active-duty and retired military leaders to industry professionals worldwide, gather to listen to discussions on important military and national security subjects and view exhibits from defense companies showcasing their best capabilities
As the Federal Government attempts to modernize its enterprise information technology (“IT”) systems, many agencies are focusing on increasing their agility in procurement and contracting processes by utilizing agile development. While still in its early stages, the Federal adoption of agile has been kick-started in recent years in response to private security successes in utilizing agile practices.
The U.S. Senate approved the 2016 defense policy bill on Wednesday, just six days after it was passed by the House of Representatives. The bill will now be presented to President Obama, who is expected to veto it due to its loophole that provides additional funding to defense via the Overseas Contingency Operations (“OCO”) account.
Late Wednesday night, President Obama signed into law a Continuing Resolution (“CR”) averting a government shutdown. This stop-gap spending measure will fund the government through December 11th, keeping defense spending at fiscal 2015 base budget levels of $496 billion and slightly increasing Overseas Contingency Operations (“OCO”) from $64 to $75 billion, allowing federal programs to remain uninterrupted.
BBA Aviation PLC (“BBA”) announced its plans to acquire one of its largest competitors, Landmark Aviation, for $2.07 billion from private equity firm The Carlyle Group. The acquisition represents BBA’s big bet on a recovery in the U.S. business-jet market, following slow and steady recovery from the past couple of years, and its expectations for “accelerated growth” in the medium to long term for the sector.
Boeing has rejected Aerojet Rocketdyne’s $2 billion bid for United Launch Alliance (“ULA”), a rocket launch joint venture with Lockheed Martin. Chris Chadwick, President and CEO of Boeing Defense, Space & Security, said no serious consideration was given to the unsolicited bid, as he expects ULA to be an instrumental part of their portfolio moving forward.
According to industry reports, Aerojet Rocketdyne is in discussions with Boeing and Lockheed Martin about acquiring their joint venture, United Launch Alliance (“ULA”), for approximately $2 billion. If a deal is finalized, the agreement will be subject to regulatory approvals. Recently, ULA has faced financial and political pressure as competition from lower-cost services, particularly SpaceX, increases, and reliance on Russian-built engines continues.
According to an article by Reuters on August 30 labeled, “Boeing uses its clout to control supplier consolidation”, Boeing has played an important role in some recent M&A transactions in the aerospace industry. The article describes Boeing use of its “assignability clause” to refuse or delay the transfer of ownership for some of its supply contracts.