Earlier this month Northrop Grumman (NG) announced that they were selling their Science, Technical, Engineering and Analysis (SETA) arm to a private equity group. TASC was a company that Northrop acquired back in the Nineties when defense consolidation was all the rage. The company decided to divest this portion of their corporation due to new rules on conflict of interest that were put in...
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United States defense contractors operate under a variety of laws, rules and regulations. Some of these are unique to the U.S. Government and some are common to other countries. One area where the United States has been cracking down on in the last decade is the use of bribes and bribery to gain work or operate. Obviously this is illegal when dealing with U.S. officials and employees but the...
EADS (EADS.PA), the parent company of Airbus, has struggled over the last two years to renegotiate the contract to produce the A400M transport for several different European and foreign countries. The aircraft is the premier aerospace program in Europe right now and is expected to deliver an aircraft that can challenge the C-130 Hercules for sales. Unfortunately the program has faced...
Last spring the United States Department of Defense awarded several contracts to manage their TRICARE health insurance program. TRICARE covers military members, their dependents and retirees. These large, multi-year contracts are to manage one of the four regions that the U.S. is divided into. At least two of the losing bidders protested the awards and these protest have been upheld in the...
With all the focus on health care reform and possible expanded role of the Federal Government there is an increasing interest in the role that contractors may play. They already provide management of the military’s TRICARE program for example. Many of the Medicare and Medicaid programs also rely on private contractors to aid in their administration. If there will be a “public...
When the Obama Administration decided to end the investment in the long range ground based system developed by the Army and currently installed in Alaska and planned to be placed in Europe it touted a new focus on the Navy sea based system. The AEGIS based naval system utilizes a missiles and radars built by Lockheed Martin (LMT) and Raytheon (RTN). These have for the last ten or so years...
It is being reported that the Royal Air Force (RAF) is creating a package of cuts and restructuring for the next defense budget in England. The idea is that if the service itself proposes these ahead of the preparation of the budget by the Ministry’s leadership they will get to pick and choose where they occur rather then having them dictated. It is assumed that no matter if their is a...
The last Dubai Air Show two years ago saw several major contracts announced by the United Arab Emirates and other Middle Eastern states. Qatar ordered C-17 transports and the UAE announced deals for missile defense systems. The total values of these and other deals was in the billions. It is assumed that this year a similar amount of contracts will be announced. This means that the Air Show...
The Obama Administration’s 2010 defense budget is languishing in Congress. The Authorization Act has been passed with fanfare but the key Appropriation Bill is not moving very fast. There are still arguments between the White House and Congress over funding for VH-71 helicopters and the Democrats are trying to attach unpopular legislation to the bill in hope of getting it passed. Now...
Boeing (BA) is starting to understand that the American defense market may be worse in the next few years. At a recent forum on the defense industry the company’s Vice President of Business Development, Christopher Raymond, discussed how the company is looking at overseas markets to make up for the expected down turn in domestic business. Boeing has already made major efforts to sell...
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BNET Government provides daily industry trends and global news coverage with insights for managers and executives within the world wide business of government contracting. We analyze new and interesting contract awards, government policy changes, and the trends in procurements and spending. There will also be discussions of the sector with a focus on small and innovative companies and business lines. The world's governments spend billions each year on a variety of hardware and services and the site will discuss how the money is being allocated.