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August 3, 2018 | International, C4ISR

L3 Announces Business Segment Realignment

  • Aerospace Systems and Sensor Systems Combine to Form ISR Systems Segment
  • Mark R. Von Schwarz to Retire

NEW YORK--(BUSINESS WIRE)--Aug. 2, 2018-- L3 Technologies (NYSE:LLL) announced today that the company is realigning its business segments to maximize growth and improve its integration and collaboration across the enterprise.

Effective immediately, Aerospace Systems will combine with Sensor Systems to form the new Intelligence, Surveillance & Reconnaissance (ISR) Systems segment, which will heighten L3's focus on developing and delivering best-in-class global ISR and signals intelligence (SIGINT) solutions. The segment will be led by Jeffrey A. Miller, corporate Senior Vice President and President of Sensor Systems, and have combined estimated 2018 sales of $4.7 billion. Mark R. Von Schwarz, President of Aerospace Systems, will retire from the company after the transition is complete. L3's Electronic Systems and Communication Systems segments remain unchanged.

“We are rapidly transforming L3 for integration and growth by strengthening our technological alignments, which enables us to more effectively build upon our competitive advantages,” said Christopher E. Kubasik, Chairman, Chief Executive Officer and President. “The increased scale of our new ISR Systems segment highlights our attractive position as a Global ISR prime contractor and accelerates our ability to address our customers' increasingly complex needs.”

Mr. Kubasik continued, “This business realignment action supports our objective to improve operating margin to 12% for 2019.” The company reaffirms its consolidated 2018 financial guidance provided on July 26, 2018. Commencing in the third quarter of 2018, L3 will report its results under the realigned business segments.

L3 Technologies is an agile innovator and leading provider of global ISR, communications and electronic systems for military, homeland security and commercial aviation customers. With headquarters in New York City and approximately 31,000 employees worldwide, L3 develops advanced defense technologies and commercial solutions in pilot training, aviation security, night vision and EO/IR, weapons, maritime systems and space. The company reported 2017 sales of $9.6 billion.

To learn more about L3, please visit the company's website at www.L3T.com. L3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L3 is routinely posted on the company's website and is readily accessible.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-Looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180802005210/en/

Source: L3 Technologies

L3 Technologies
Corporate Communications
212-697-1111

https://www.l3t.com/press-release/l3-announces-business-segment-realignment

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  • Contract Awards by US Department of Defense - April 26, 2019

    April 29, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense - April 26, 2019

    DEFENSE LOGISTICS AGENCY Sea Box,* Cinnaminson, New Jersey, (SPRD11-19-D-0100, $471,828,000); W&K Containers,* Mill Valley, California, (SPRDL1-19-D-0101, $19,513,750); and NexGen Composites,* Franklin, Ohio (SPRDL1-19-D-0097, $253,608,919) have each been awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for ISO & Quadcon Containers. They are five-year contracts with no option periods. This was a competitive acquisition with four responses received. Locations of performance are New Jersey, Texas, California, South Carolina and Ohio, with an Oct. 29, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan. Freeman Holdings of Arizona, LLC, doing business as Million Air Yuma,* Yuma, Arizona, has been awarded a minimum $21,991,384 fixed-price with economic-price-adjustment contract for fuel. This was a competitive acquisition with 148 responses received. This is a 46-month contract with one six-month option period. Location of performance is Arizona, with a March 31, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE607-19-D-0076). Rantec Power Systems, Los Osos, California, has been awarded a maximum $8,429,618 firm-fixed-price contract for two different power supplies. This was a sole source acquisition using justification 10 U.S.C. 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a one-year base contract with one one-year option period for each power supply. The majority of the option is being exercised at the time of award. Location of performance is California, with a March 31, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-C-0106). AIR FORCE The Boeing Co., St. Louis, Missouri, has been awarded a $127,632,494 modification (P00003) to previously awarded contract FA2103-18-C-0061 for the B61-12 Life Extension Program. This modification provides for the initiation of an undefinitized contract action for Lot 1 and Lot 2 Long Lead items. Work will be performed in Saint Charles, Missouri, and is expected to be complete by Aug. 31, 2020. His modification brings the total cumulative face value of the contract to $131,932,494. Fiscal year 2018 and 2019 procurement funds, and fiscal year 2019 research and development funds, in the amount of $29,218,278 are being obligated at the time of award. Air Force Nuclear Weapons Center, Eglin Air Force Base, Florida is the contracting activity. Raytheon Co., McKinney, Texas, has been awarded a $94,272,118 fixed‐price‐incentive modification (P00004) to previously awarded contract FA8620-18-C-2001 for DAS‐4 production and upgrades. This modification provides for the purchase of an additional 54 production AN/DAS‐4 Multi‐Spectral Targeting System Model B High Definition/Target Location Accuracy (HD/TLA) turrets and one DAS‐1A to DAS‐4 turret unit upgrade. Work will be performed in McKinney, Texas, and is expected to be complete by Jan. 31, 2021. This contract involves foreign military sales to The Netherlands. Fiscal year 2017 aircraft procurement funds in the amount of $1,480,393, fiscal year 2018 aircraft procurement funds in the amount of $22,338,740, fiscal year 2019 aircraft procurement funds in the amount of $60,142,814, and foreign military sales funds in the amount of $10,310,171 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright‐Patterson Air Force Base, Ohio, is the contracting activity. University of Dayton Research Institute, Dayton, Ohio, has been awarded a $46,794,000 indefinite-delivery/indefinite-quantity contract for Proactive Research Enabling Supportable Systems (PRESS). This contract provides for PRESS in order to improve materials and processes for maintainability and manufacturing. Work will be performed in Dayton, Ohio, and is expected to be complete by May 1, 2026. This contract was the result of a competitive acquisition and 3 offers were received. Fiscal year 2019 research, development, test and evaluation funds in the amount of $508,000 are being obligated on the first task order at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-D-5630). NAVY Granite-Healy Tibbitts, JV, Watsonville, California, was awarded $27,186,257 for firm-fixed-price task order N6247319F4540 under a previously awarded multiple award construction contract (N62473-16-D-1803) for construction of maintenance dredging piers 1, 3, and Paleta Creek at Naval Base San Diego. The maintenance dredging will re-establish the design operational and/or berthing depth required for United States Navy vessels and other visiting vessels. The dredge material is expected to be disposed of at upland disposal sites. All dredge material for upland disposal will be screened for unexploded ordnance and radiological debris, dried or dewatered prior to transport for disposal at a commercial landfill. The proposed maintenance dredging work will remove dredge material to restore the pier slips and creek area for safe, unrestricted navigation. The task order also contains one unexercised option, which if exercised would increase the cumulative task order value to $38,244,577. Work will be performed in San Diego, California, and is expected to be completed by November 2021. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $27,186,257 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity. (Awarded April 25, 2019) Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $26,890,125 cost-plus-fixed-fee contract for the procurement of Navy engineering services. This contract includes options which, if exercised, would bring the cumulative value of this contract to $201,706,155. Work will be performed in Manassas, Virginia (68 percent); Waterford, Connecticut (10 percent); Groton, Connecticut (10 percent); Middletown, Rhode Island (7 percent); and Newport, Rhode Island (5 percent), and is expected to be completed by December 2025. Fiscal 2018 and 2019 other procurement (Navy) and fiscal 2019 research development test and evaluation (Navy) funding in the amount of $5,155,627 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, District of Columbia is the contracting activity (N00024-19-C-6400). Miller Electric Co. Inc. doing business as PEC Contracting and Engineering*, Reno, Nevada, was awarded a maximum amount $25,000,000 indefinite-delivery/indefinite-quantity contract for commercial and institutional building construction alterations, renovations, and repair projects at Naval Air Station Fallon. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g. shop drawings). Projects may include, but are not limited to, alterations, repairs, and construction of administration buildings, maintenance/repair facilities, aircraft control towers, hangars, fire stations, office buildings, laboratories, dining facilities and related structures. Work will be performed in Fallon, Nevada. The term of the contract is not to exceed 60 months with an expected completion date of April 2024. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with 11 proposals received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2617). (Awarded April 25, 2019) Centerra-SJC II, LLC. *, Fort Worth, Texas, was awarded a $15,374,563 firm-fixed-price task order modification under a previously awarded indefinite-delivery/indefinite-quantity contract (N69450-15-D-1621) for exercise of options two, three, four, and five for renovations to 84 housing units. The work to be performed provides for complete exterior and interior repairs for 84 housing units at Tierra Kay Housing complex. The renovation of the Tierra Kay housing areas is to provide quality housing for unaccompanied service members, and will improve quality of life during their deployment to Guantanamo Bay. This will optimize energy performance of the housing area. The total task order amount after exercise of these options will be $18,612,025. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by April 2020. Fiscal 2019 operations & maintenance, (Army) contract funds in the amount of $15,374,563 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity. (Awarded April 25, 2019) Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $13,908,052 cost-plus-incentive-fee modification to previously awarded contract N00024-16-C-5102 to exercise an option for AEGIS Speed to Capability Development. The contract provides for systems engineering, modeling and simulation, and design for AEGIS Speed to Capability cycles as well as the completion of the development and fielding of the AEGIS Baseline 9 AEGIS Weapon System and integrated AEGIS Combat System on AEGIS Technical Insertion (TI) 12 configured destroyers as well as TI 12 and TI 08 configured cruisers. Work will be performed in Moorestown, New Jersey (97 percent) and Johnstown, Pennsylvania (3 percent) and is expected to be complete by May 2020. Fiscal 2019 research, development, test & evaluation (Navy) funding in the amount of $1,938,130 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Didlake, Inc., Manassas, Virginia, is awarded a $12,076,573 firm-fixed-price, indefinite-delivery/ indefinite-quantity modification for the exercise of option four for annual custodial services at Naval Air Station Oceana, Naval Weapons Station Yorktown, and Norfolk Naval Shipyard. The work to be performed provides for annual custodial services, including, but not limited to, all management, supervision, tools, materials, supplies, labor, and transportation services necessary to perform custodial services for office space, restrooms, and other types of rooms. After award of this option, the total cumulative contract value will be $53,345,575. No task orders are being issued at this time. Work will be performed at various installations in Portsmouth, Virginia (43 percent); Virginia Beach, Virginia (44 percent); and Yorktown, Virginia (13 percent). This option period is from May 2019 to April 2020. No funds will be obligated at time of award. Task orders will be primarily funded by Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $11,705,043 for recurring work will be obligated on individual task orders issued during the option period. Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-15-D-0063). Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $9,142,030 cost-plus-incentive-fee modification to previously awarded contract N00024-15-C-5151 for AEGIS Ashore Support and Ship Integration and Engineering of the AEGIS Weapon System (AWS) for AWS Baselines through Advanced Capability Build (ACB) 16. The contract modification provides for AEGIS ashore on-site support in Romania and Poland, AEGIS Ashore Planning Yard support and Ship Integration Engineering support including technical data package and test package/procedure development; technical documentation; feasibility studies; configuration management support; lifecycle and system engineering; environmental qualification testing; topside analysis; Ballistic Missile Defense engineering; combat system alignment and integration of Advanced Naval Weapon Systems on DDG 51 Class ships. Work will be performed in Camden, New Jersey (29 percent), Deveselu, Romania (15 percent), Redzikowo, Poland (15 percent), Moorestown, New Jersey (13 percent), Norfolk, Virginia (9 percent), San Diego, California (9 percent), Pearl Harbor, Hawaii (5 percent), and various places below one percent (5 percent) and is expected to be complete by September 2019. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $3,268,951 will be obligated at the time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY The Johns Hopkins University Applied Physics Laboratory LLC, a not-for-profit University Affiliated Research Center, Laurel, Maryland, has been awarded a ceiling $100,000,000 modification (P00003) to previously awarded indefinite delivery indefinite quantity (IDIQ) contract HR0011-17-D-0001 for engineering, development and research capabilities. The modification brings the total cumulative face value of the contract to $198,000,000 from $98,000,000. Work will primarily be performed in Laurel, Maryland, with an expected completion date of November 2021. IDIQ task orders can extend an additional six months until May 2022. No funds are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1825952/source/GovDelivery/

  • Rebuilding it ... Better, stronger, faster.

    July 30, 2018 | International, C4ISR

    Rebuilding it ... Better, stronger, faster.

    By: Mike Gruss   The long-held thinking in Washington is that if the Department of Defense wants to stay ahead of its adversaries, it will need improved capabilities, many of which are being developed outside of the Beltway. To that end, Pentagon leaders launched the Defense Innovation Unit Experimental, commonly referred to in defense circles as DIUx, as a way to attract new companies into the fold and accelerate the pace of acquisition. In fall 2017, Secretary of Defense Jim Mattis visited the organization's headquarters and said its influence would grow. A few months later, DIUx's director, Raj Shah, left the organization for the private sector. Capt. Sean Heritage has served as the acting managing partner since then. Heritage spoke recently with C4ISRNET's Mike Gruss. C4ISRNET: What's the status of the DIUx reboot? CAPT. SEAN HERITAGE: The last two years have been largely focused on fielding capability across the department. We like to say we can solve problems faster, better, cheaper using commercial technologies with nontraditional companies that are out there. We've learned that we have some amazing talents on our team and rather than just defaulting to fielding capability, we are creating tailored solutions using organic expertise. We've been able to do this primarily in a suborganization we refer to as the Rogue Squadron — it works in the UAF, counter-unmanned aerial system world. We're sharing our lessons learned across the department. We're coaching people on how we do things so that they can emulate us. So, we'd like to think that if we are the only ones doing CSOs [commercial solutions openings] and OTAs [other transaction authorities], in our image a year or two from now, then we failed. C4ISRNET: How do you know this is working? HERITAGE: We know all our prototypes aren't going to transfer to production. Our target goal is between 40 to 60 percent success rate. The feeling is that if we are more successful than that, then we probably aren't being innovative or creative enough and assuming enough risk on behalf of the department. With regard to our creating line of effort, we're very proud of the [Air Operations Center] Pathfinder project. Kessel Run was a great example of fielding capability and then leveraging organic talent to create tailored solutions and transition to a program of record. Then the coaching effort, we're defining success by creating somebody in other organizations in our image every six months. C4ISRNET: On talent development, is part of that asking leaders to rethink how they're using their people or is it something else? HERITAGE: The best example would go back to Kessel Run. That really started with the Defense Innovation Board. We were able to help the Air Force explore the art of the possible, which made a compelling case for the DIB's original recommendation: you guys need software developers as a core skill at the unit level to solve these problems in real time. They like to use the example that Home Depot has 6,000 software developers to sell you hammers. You can say the same for any service. How many software developers do you have? Well, the answer is we don't know, because we don't have a specialty for software developers, but no doubt once you know people across your team, there are many very capable people who do software development on the side. How do you leverage that? How do you more deliberately recruit to that? And how do you develop them? C4ISRNET: What's one area where you guys have been able to say, “Without us, we're not sure this would've happened as fast?” HERITAGE: We are very proud of the work we are doing in the artificial intelligence world. So, we are doing some projects on predictive maintenance. Again, for the Air Force, focusing on the [E-3 Sentry airborne warning and control system] out of the gate. But it's scaling across other platforms. We're already able to deliver value by solving that problem, reducing unplanned maintenance. Another contract was let out that's scaling to the Army with their Bradley Fighting Vehicles. We are going to be doing predictive maintenance with them. Something that may be lost on many people is our involvement in the formulation of the JAIC, the Joint AI Center. That would not have happened without us, but, more specifically, that would not have happened if we weren't here in the Valley and had access to create relationships with some significant talent in the civilian world. C4ISRNET: I wanted to reframe what you were saying. If DIUx wasn't in existence, do you think that there wouldn't be the same level of talent? HERITAGE: The talent we are able to attract to our team, to work through any problems and inform strategic thinking, wouldn't have happened. What we have is very open-minded senior leaders who are yearning for diverse thinking. And, as a career military guy, it's not all that diverse. What we're able to do is reach into a talent pool that has lots of credibility and expertise that isn't resident in the department. C4ISRNET: What's something DIUx is doing now, that it wouldn't have done three years ago? HERITAGE: The biggest difference is the deliberate embracing of our role in creating solutions and scaling ... coaching. Those were things that DIUx didn't do in the past. We have much more support from across the department. We no longer need that direct cover of the Dep. Sec. Def as a direct report. The percentage of our team that is military is higher than at the beginning. That's not necessarily by design. We are attempting to recruit more individuals, commercial executives, to help coach us. We don't want to be a military organization that happens to be in Silicon Valley, Boston and Austin. We want to truly be representatives of the culture. C4ISRNET: You talked about that 40 to 60 percent goal. What are the other ways you measure success? HERITAGE: The first one is the number of customers within the department that are coming our way to ask us to help them solve problems using our relationships, authorities and methodologies. That's one metric and that number continues to go up. The other is the number of nontraditional companies who want to help solve problems. A commercial solutions opening is a honey-pot for all these creative companies to say, ‘Can I contribute?' The number of companies continues to go up. It was 40-plus on the last CSO. The record to date is over 70. Now we're in a position where we have to say no to projects. We're a little more selective. C4ISRNET: What is DIUx's role with AI? HERITAGE: A lot of folks claim to be able to contribute to the AI mission area. There are 593 initiatives across the department that claim to be AI. It's our ability and our connections with Project Maven that have afforded us the opportunity to influence the way ahead for the department and facilitate some conversions. Some of the work that we're able to do with these nontraditional companies is not only shaping understanding of the power of AI across the department, but it's focusing everybody as well. We're able to help make them a bigger part of the conversation or maybe inspire them to a bigger part of the conversation. C4ISRNET: How do you convince a company that working with the Pentagon is the right path, and it's not a quagmire like it has been at Google? HERITAGE: We don't spend time trying to convince companies to do or think anything. There are plenty of folks out here and elsewhere, who are passionate about contributing to the cause, and appreciate what they are learning just through having access to the data that we're able to provide them. But it's a challenging conversation to be a part of because we don't want to turn people off. We're here to provide people with opportunity. C4ISRNET: Where can you help the most in IT? HERITAGE: [Information technology] is an example of how a DoD organization can leverage technology and access to a network that is still secure, yet different than what the rest of the department is using. It's things that you probably take for granted. We have people come to our team for a short period of time, after a career within the department going, “Wow, look at how my productivity has changed since I've been here.” I have access to Slack and the G Suite and a whole host of other tools that are not allowed, and for good reason, on DoD networks. C4ISRNET: One concern is whether new vendors can provide overmatch. Is that the case? HERITAGE: We look at the companies to make sure they're going to be around long enough to provide this capability. When we talk about our responsibility to help navigate the “Valley of Death,” and make sure that these prototypes don't just die, these companies have to have legs underneath them and investors behind them to be viable down the road so that we don't spend our time developing a prototype that they won't be around to deliver. https://www.c4isrnet.com/thought-leadership/2018/07/27/rebuilding-it-better-stronger-faster/

  • Army switches up cyber leadership

    February 24, 2021 | International, C4ISR, Security

    Army switches up cyber leadership

    Two top Army officers are swapping roles between Army Cyber Command and the cyber and electronic warfare schoolhouse.

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