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October 19, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

No way around it™: Facing budget cuts, Army braces to fight for modernization

As budget experts caution the Army will see reduced or at best flat budgets in the coming years, service officials are readying for a more difficult look at how to cut costs to preserve modernization momentum. This could mean making harder decisions about the future of its inventory or making cuts to reduce readiness or end strength.

https://www.defensenews.com/congress/budget/2021/10/11/no-way-around-it-facing-budget-cuts-army-braces-to-fight-for-modernization

On the same subject

  • Northrop sells IT business to Veritas Capital for $3.4B

    December 9, 2020 | International, C4ISR, Security

    Northrop sells IT business to Veritas Capital for $3.4B

    WASHINGTON — Northrop Grumman has struck a $3.4 billion deal to sell its federal IT and mission support business to Veritas Capital. The agreement, announced Dec. 7, is expected to close by June 2021. At that point, Veritas plans to incorporate the Northrop business units with Peraton, a Veritas subsidiary that supports government customers and specializes in technology products for the space, defense and intelligence markets. Northrop is expected to generate $2.3 billion in revenue, which will be funneled into share repurchases and debt retirement, the company said in a news release. “This divesture allows us to drive value and reflects our strategy of focus on growing core businesses where technology and innovation are the key differentiators,” said Kathy Warden, Northrop's CEO and president. “We expect to create compelling value to our shareholders through this transaction and execution of our capital allocation strategy.” Reports of the sale first surfaced in October. Byron Callan, an analyst with Capital Alpha Partners, said that the sale shows there is still isn't consensus within the defense industry on how to organize IT and services businesses alongside more traditional hardware business units for products like aircraft, vehicles or other weapons. Callan pointed to Lockheed Martin's sale of its information and global services business to Leidos in 2016; L-3′s sale of its IT solutions division to CACI in 2015; and Harris' sale of its IT business to Veritas in 2017, which later became Peraton. However, other major companies have acquired government IT companies, such as General Dynamics's purchase of CSRA in 2018. “We have believed that as DoD spending flattens in the 2020s, primes could seek to jettison ‘non-core' businesses that will still be profitable, but face declining sales or more intense competition,” Callan wrote in an email to investors. https://www.c4isrnet.com/industry/2020/12/08/northrop-sells-it-business-to-veritas-capital-for-34b/

  • Watchdog agency accuses chief of military police of blocking investigations | CBC News

    May 5, 2024 | International, Land

    Watchdog agency accuses chief of military police of blocking investigations | CBC News

    The country's military police watchdog has accused the Canadian Forces Provost Marshal of obstructing its independent reviews of complaints.

  • Deadline Tomorrow: USAF B-21 Training Systems Futures Challenge

    April 14, 2021 | International, Aerospace

    Deadline Tomorrow: USAF B-21 Training Systems Futures Challenge

    Innovators, The USAF is in the process of inviting selected prototypes from the first challenge! Don't miss the next opportunity to potentially be selected as a viable future concept for integration into B-21 Training Systems. Deadline is TOMORROW Wednesday 14 April 2021 at 7:00PM EST. Submit your innovations in Vulcan . U.S. Air Force B-21 Training Systems Futures Challenge Deadline: WEDNESDAY 14 April 2021 The U.S. Air Force opportunity expiring TOMORROW is for transformative and future capabilities that can significantly enhance and/or accelerate cost savings, flight time optimization, and human performance within USAF training cycles. U.S. Air Force end users and program personnel will select compelling concepts for virtual demonstration and potential integration into future technology roadmaps. IT TAKES A NETWORK!

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