5 février 2020 | International, C4ISR
By: Jill Aitoro
WASHINGTON — L3Harris Technologies could divest up to 10 percent of the company, according to CEO Bill Brown, as its recent decision to sell its airport security business for $1 billion is seen as the first of more transactions expected to refine the firm's portfolio.
L3Harris signed a definitive agreement to sell the business unit to Leidos, according to an announcement Tuesday. The transaction is expected to close in mid-2020, barring any issues tied to regulatory approvals. Proceeds from the divestiture are expected to be used to repurchase shares and offset dilution.
The deal is part of a larger strategy to reshape the portfolio, focusing on what Brown described on a call with analysts as “high-margin, high-growth, technology-differentiated businesses where we can win and generate attractive returns.”
“Although this is the first and largest transaction we're contemplating, our portfolio-shaping process is ongoing and may ultimately result in 8-10 percent of total company revenue being divested over time,” he said.
The company's 2019 revenue of $18.1 billion could translate to as much as $1.8 billion in divestitures.
Brown told Defense News in June 2019 — one month before the merger of Harris and L3 Technologies was completed — about plans to divest a “pretty significant” piece of the business in the first six months as a single company.
“Anytime you put two companies with two portfolios together and you rethink what strategy you want to accomplish, there's going to be some pieces of the portfolio at the back end of the bus,” Brown said at the time. “We have to look at where we want to put our management time, capital, and [research and development] investment. We can't put it on pieces that might not be as strategic."
Brown told analysts that the deal would not impact the company's $3 billion free cash flow target in 2022. That in theory would set up L3Harris for a sizable acquisition down the road, should the company choose to go in that direction.
A company spokesman could not comment on the specific defense-nondefense split post divestiture, but L3Harris would presumably see a larger slice of the business focusing on defense opportunities.
In the 2019 Defense News Top 100 list of the largest defense companies, Harris and L3 reported 72 percent and 81 percent of revenue as defense-focused, respectively.
L3Harris reported $18.1 billion in fiscal 2019 revenue. Once the deal with Leidos closes, the airport security businesses' $500 million in annual revenue would transition off the books. That said, L3Harris is forecasting 5-7 percent revenue growth in 2020 — so it won't be a straight reduction.
20 juin 2023 | International, C4ISR
The scope of supply completes also the technological upgrade of the first two German Air Force’s RAT 31 DL/M for which other contracts have been recently signed.
30 octobre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
NAVY CubicGATR Technologies Inc., Huntsville, Alabama, is awarded a $325,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the purchase of up to a maximum 172 Next Generation Troposcatter system manufacturing and delivery, test support, technical data delivery, logistics data delivery, training data delivery and training support, fielding support and sustainment support. Work will be performed in Huntsville, Alabama, and is expected to be complete by October 2029. Fiscal 2019 procurement (Marine Corps) funds in the amount of $28,820,220 will be obligated on the first delivery order immediately following contract award, and funds will not expire at the end of current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-D-2000). BAE Systems Land & Armaments LP, Sterling Heights, Michigan, is awarded a $119,938,228 modification to exercise options for the fixed-price-incentive (firm target) and firm-fixed price contract line item numbers (CLINs) 4000, 4003 and 4004 portions of a previously awarded contract (M67854-16-C-0006). This modification is for the purchase of 30 Amphibious Combat Vehicles and associated production, fielding and support costs and depot support products. Work will be performed in York, Pennsylvania (60%); Aiken, South Carolina (15%); San Jose, California (15%); Sterling Heights, Michigan (5%); and Stafford, Virginia (5%), and is expected to be completed in January 2022. Fiscal 2020 procurement (Marine Corps) funds in the amount of $119,938,228 will be obligated at the time of award, and will not expire at the end of the current fiscal year. The contract was based on full and open competition with the solicitation publicized on the Federal Business Opportunities website with five offers received. The option CLINs were included within that contract and are being exercised in accordance with Federal Acquisition Regulation 52.217-7 Option for Increased Quantity-Separately Priced Line Item. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-16-C-0006). Northrop Grumman Systems Corporation-Marine Systems, Sunnyvale, California, is awarded a cost-plus-fixed-fee $7,542,234 contract modification (P00024) to a previously awarded contract (N00030-16-C-0015) to provide support for technical engineering services, design and development engineering, component and full scale test and evaluation engineering and tactical underwater launcher hardware production to support the development and production of the Common Missile Compartment. Work will be performed in Sunnyvale, California (55%); Ridgecrest, California (20%); Cape Canaveral, Florida (10%); Bangor, Washington (5%); Kings Bay, Georgia (5%); Barrow-In-Furness, England (2%); New London, Connecticut (1%); Quonset Point, Rhode Island (1%); and Arlington, Virginia (1%), with an expected completion date of Sept. 30, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $315,604; and United Kingdom funding in the amount of $5,454,694 are being obligated on this award. Funds in the amount of $315,604 expire at the end of the current fiscal year. Subject to the availability of funding, fiscal 2020 research, development, test and evaluation and United Kingdom funding in the amount of $1,771,936 will be obligated on this award. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. DEFENSE LOGISTICS AGENCY Stonewin Capital LP, New York, New York, has been awarded a minimum $34,494,452 fixed-price with economic-price-adjustment contract for marine gas oil. This was a competitive acquisition with 41 responses received. This is a 60-month contract with one six-month option period. Locations of performance are New York, California, Texas and South Carolina, with an Oct. 31, 2024, performance completion date. Using customers are Army, Navy, Military Sealift Command, Coast Guard and federal civilian agencies. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE608-20-D-0350). AvKare Inc., Pulaski, Tennessee, has been awarded an estimated $10,600,000 firm-fixed-price requirements contract for Metformin HCL ER tablets. This was a competitive acquisition with one response received. This is a one-year base contract with four one-year option periods. Locations of performance are Tennessee, New York and Kentucky with an Oct. 28, 2020, performance completion date. Using customers are Department of Defense, Department of Veterans Affairs, Indian Health Services, and Federal Bureau of Prisons. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D2-20-D-0084). AIR FORCE L‐3 Communications Vertex Aerospace LLC, Madison, Mississippi, has been awarded an estimated $30,000,000 firm-fixed‐price, indefinite‐delivery/indefinite‐quantity modification (P00019) to previously awarded contract FA8106‐17‐D‐0001 for contractor logistic support of the Air Force C‐12 fleet. Work will be performed in Madison, Mississippi; San Angelo, Texas; Okmulgee, Oklahoma; Buenos Ares, Argentina; Gaborone, Botswana; Brasilia, Brazil; Bogota, Columbia; Cairo, Egypt; Accra, Ghana; Tegucigalpa, Honduras; Budapest, Hungary; Joint Base Andrews, Maryland; Nairobi, Kenya, Rabat, Morocco; Manila, Philippines; Riyadh, Saudi Arabia; Bangkok, Thailand; Ankara, Turkey; Edwards Air Force Base, California; Holloman Air Force Base, New Mexico; Joint Base Elmendorf‐Richardson, Alaska; Oslo, Norway; and Yokota Air Base, Japan, and is expected to be completed by Dec. 31, 2020. The estimated cumulative face value of the contract is $120,000,000. Fiscal 2020 aircraft procurement funds are being used and no funds are being obligated at the time of the award. The Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity. DEFENSE HEALTH AGENCY InteIillidyne LLC, Falls Church, Virginia, has been awarded a $27,041,715 firm-fixed-price contract to provide direct support to the Defense Health Agency (DHA) Global Service Center and the enterprise to fully support the integration of all desk side support, remote, or onsite troubleshooting, onsite information technology touch labor, network support services activity program management, network security and infrastructure assurance activities to include risk management framework support, in-room video teleconferencing support, Defense Health Headquarters site asset management and network/systems engineering, where required, into the Military Health System Joint Active Directory Management and the Military Health System Medical Community of Interest network environment systems and infrastructure. This award is the result of a sole source acquisition. This contract will have a one year period of performance, Oct. 30, 2019, to Oct, 29, 2020, with one six-month option period. This contract provides continuity of services until DHA is able to conduct a competitive award anticipated in the third quarter of fiscal 2020. This award utilizes fiscal 2020 operations and maintenance funds in the amount of $27,041,715. The Defense Health Agency, Falls Church, Virginia, is the contracting activity. ARMY Quasonix LLC,* West Chester, Ohio, was awarded a $21,736,371 firm-fixed-price contract for Quasonix telemetry transmitters in support of live fire testing. One bid was solicited via the internet with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 28, 2024. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-20-D-0003). MISSILE DEFENSE AGENCY Northrop Grumman Systems Corp., Azusa, California, is being awarded a firm-fixed-price prototype award with a total value of $20,000,000 through the Missile Defense Agency's authority under 10 U.S. Code § 2371b. This prototype award was competitively solicited via publication through the Space Enterprise Consortium Other Transaction Agreement between Space and Missile Systems Center and Advanced Technology International (FA8814-18-9-0002). Twelve proposals were received. Under this award, the performer will provide the Missile Defense Agency's Hypersonic and Ballistic Tracking Space Sensor Program with prototype payload design and signal-chain processing risk reduction demonstration. The work will be performed in Azusa, California, with an estimated completion date of Oct. 31, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $15,000,000 will be obligated at the time of award. These funds will expire at the end of the 2020 fiscal year. Missile Defense Agency, Schriever Air Force Base, Colorado, is the contracting activity (HQ0857-20-9-0003). Leidos Inc., Reston, Virginia, is being awarded a firm-fixed-price prototype award with a total value of $19,995,345 through the Missile Defense Agency's authority under 10 U.S. Code § 2371b. This prototype award was competitively solicited via publication through the Space Enterprise Consortium Other Transaction Agreement between Space and Missile Systems Center and Advanced Technology International (FA8814-18-9-0002). Twelve proposals were received. Under this award, the performer will provide the Missile Defense Agency's Hypersonic and Ballistic Tracking Space Sensor Program with prototype payload design and signal-chain processing risk reduction demonstration. The work will be performed in San Diego, California, with an estimated completion date of Oct. 31, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $15,000,000 will be obligated at the time of award. These funds will expire at the end of the 2020 fiscal year. Missile Defense Agency, Schriever Air Force Base, Colorado, is the contracting activity (HQ0857-20-9-0002). Harris Corp., Fort Wayne, Indiana, is being awarded a firm-fixed-price prototype award with a total value of $19,994,752 through the Missile Defense Agency's authority under 10 U.S. Code § 2371b. This prototype award was competitively solicited via publication through the Space Enterprise Consortium Other Transaction Agreement between Space and Missile Systems Center and Advanced Technology International (FA8814-18-9-0002). Twelve proposals were received. Under this award, the performer will provide the Missile Defense Agency's Hypersonic and Ballistic Tracking Space Sensor Program with prototype payload design and signal-chain processing risk reduction demonstration. The work will be performed in Fort Wayne, Indiana, with an estimated completion date of Oct. 31, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $15,000,000 will be obligated at the time of award. These funds will expire at the end of the 2020 fiscal year. Missile Defense Agency, Schriever Air Force Base, Colorado, is the contracting activity (HQ0857-20-9-0001). Raytheon Co., El Segundo, California, is being awarded a firm-fixed-price prototype award with a total value of $19,958,883 through the Missile Defense Agency's authority under 10 U.S. Code § 2371b. This prototype award was competitively solicited via publication through the Space Enterprise Consortium Other Transaction Agreement between Space and Missile Systems Center and Advanced Technology International (FA8814-18-9-0002). Twelve proposals were received. Under this award, the contractor will provide the Missile Defense Agency's Hypersonic and Ballistic Tracking Space Sensor Program with prototype payload design and signal-chain processing risk reduction demonstration. The work will be performed in El Segundo, California, with an estimated completion date of Oct. 31, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $15,000,000 will be obligated at the time of award. These funds will expire at the end of the 2020 fiscal year. Missile Defense Agency, Schriever Air Force Base, Colorado, is the contracting activity (HQ0857-20-9-0004). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2002532/source/GovDelivery/
2 juin 2021 | International, Aérospatial
SMi Group reports: Senior representatives from the British Army, DE&S UK MoD, and the Royal Air Force will be speaking at the UAV Technology conference