The Department of Justice just told the Department of Defense to back off, and DoD did. It’s a rare public confrontation between two major government departments, especially over a subject as politically volatile as mergers and acquisitions, where the Pentagon had wanted more authority in a process Justice and the Federal Trade Commission currently control —…
By Sydney J. Freedberg Jr.Millennium Space Systems is delivering on critical missile tracking constellation
With programs like MTC, Millennium Space Systems is redefining what it means to be an operational prime – rapidly delivering operational small sat constellations on rapid timelines.
WASHINGTON: The Pentagon is “weeks” away from taking a tougher line on mergers between defense contractors — but two top defense industry analysts told Breaking Defense that was a bad idea. “Their only possible response to M&A [Mergers & Acquisitions] is S&P[:] Signaling & Posturing,” said the Teal Group’s Richard Aboulafia. “As with so many…
By Sydney J. Freedberg Jr.
WASHINGTON: Perhaps the most respected living Defense Secretary, Bill Perry, sat down with reporters today to tout a new book and give the American people a shot at one of the finer brains to have led the Pentagon. Perry is renowned for having hosted the so-called Last Supper with defense industry chiefs, which set the stage…
By Colin Clark
WASHINGTON: The Defense Department has told its big industry partners for most of the last 15 years that there’s no need for consolidation at the top. Lockheed Martin, Boeing, BAE Systems, Raytheon, General Dynamics and Northrop Grumman are big enough, they said. Mergers of prime contractors would limit competition, Ash Carter, Frank Kendall and other…
By Colin Clark
WASHINGTON: Lockheed Martin’s planned purchase of Sikorsky Aircraft, the biggest U.S. helicopter manufacturer, is a natural fit that will mean a lot more to buyer Lockheed and seller United Technologies Corp. than it will for the military rotorcraft industry, present or future. Here’s why. First, the two companies have worked together on military helicopter programs for decades.…
By Richard Whittle
UPDATED: Insights From Steve Grundman, Former DUSD Industrial Affairs WASHINGTON: For several years, senior Pentagon officials have said they don’t expect or encourage mergers of the giant defense companies, but mergers and acquisitions of smaller entities might well make sense. The first example we saw was the merger of ATK and Orbital Sciences. Today, Harris…
By Colin Clark
Modernizing military simulation with open systems architecture
Best-of-breed common models and architecture enable virtual training and testing with the same data in a cyber-resilient posture.
WASHINGTON: In many respects, the merger announced this morning between ATK and Orbital Sciencesappears just a sensible move between two space and defense companies facing a declining demand for rockets and rocket engines. The Space Shuttle flies no more, leaving ATK without the considerable revenue stream from its reusable solid rocket motor. The United Launch…
By Colin Clark
WASHINGTON: The federal government shutdown won’t hurt much this week but after two to three weeks, contracts won’t get paid or issued, testing won’t get done. and production of major weapons systems may be disrupted or halted. That was the consensus of several senior defense executives, including Exelis CEO David Melcher, at a gathering held here…
By Colin ClarkNEW YORK: “It is utterly unconscionable — utterly unconscionable — that Congress will allow sequestration to go on.” Those are the words of Frank Kendall, the Pentagon’s head of acquisition, speaking to an audience of several hundred New York financial types. Kendall is just back from a trip to Afghanistan and he had heard from…
By Colin ClarkIn the aftermath of the EADS-BAE merger being called off, speculation continues about the outlook for defense merger and acquisition (M&A) activity – andwhat impact that will have on government and suppliers.
By Colin Clark[Corrected at 4:50 pm to fix misquotation; see note below] With today’s spectacular but not unanticipated collapse of the mega-merger between Airbus parent company EADS and British armsmaker BAE, what’s next? The conventional wisdom is that BAE, the smaller of the two firms, is now vulnerable. But top analysts tell Breaking Defense that, in many…
By Sydney J. Freedberg Jr.Paris and Berlin are in a bind as British-based BAE and Franco-German giant EADs, the parent company of Airbus, seek approval to merge into the world’s largest aerospace company. If the French and German governments accept the companies’ current merger terms, their ability to influence the new tri-national behemoth will be sharply diminished and they…
By Sydney J. Freedberg Jr.Today’s surprise announcement that UK-based arms-maker BAE and Airbus parent EADS are exploring a merger — sort of, maybe, if their respective boards approve an extremely complex deal that creates a so-called “dual-listed” entity in which each partner still issues its own separate stock — sent shockwaves throughout Europe and through the commercial aviation industry…
By Sydney J. Freedberg Jr.
Reaping the Benefits of a Global Defense Industry
The U.S. defense industry, being reshaped by declining post-war budgets, globalization, and the increased pace of technological change, must work with the Pentagon and take proactive steps to maintain our historic preeminence on the battlefield. Our industry does not easily embrace change. In fact, history demonstrates that shifts in the defense industry have largely been…
By Bill Lynn