|The Minuteman Federal Deal Meter
The Minuteman Federal Deal Meter covers M&A transactions of services firms principally serving federal agencies. Transactions covered are those announced from January 1 through February 13 of 2005 and 2006.
For the list of M&A transactions closed in the sector since January 1, 2005, email Chuck Chappell, Director of Washington Operations, at email@example.com.
Minuteman Ventures LLC advises company owners on the sale of their businesses, and assists corporate and private equity buyers in strategic acquisitions and divestitures. Our team consists of experienced entrepreneurs and business executives who founded or operated companies and corporate divisions.
We specialize in companies that sell services, products, and solutions to federal government clients. We pride ourselves in being the investment bank for
entrepreneurial companies in the federal sector.
When Large Federal Contactors Acquire Small Companies
The View on Smaller Firm Acquisition from Perot
While major transactions grab headlines, many larger, public
federal services continue to consolidate the federal services
sector by acquiring much smaller industry firms.
We reviewed the 77 2005 M&A sector transactions in 2005 for
those where a) the acquirer was public and b) the companies
those acquirers bought had $50 million in revenue or less.
Some 22 transactions in 2005 qualified using the criteria.
Once we removed the outliers (including transactions involving
Lockheed Martin, Northrop Grumman and General Dynamics on
the basis of their size alone), buyers in this group were
21.5 times on average larger in revenue than the companies
they bought. Stated differently, seller revenue constituted
only 4.6% of the buyer's revenue at the time of the
transaction. We call this the Buyer-Seller Revenue Ratio
This phenomenon — large and very large firms acquiring
small and very small ones — is a consistent hallmark of
the federal services M&A world.
The BSRR can be extraordinarily high in many cases,
well beyond the BSRR average.
Why do large firms, especially public ones with high
visibility, reach down to acquire small firms that have minimal
impact on the buyer's revenue base?
First is simple demographics. That is where the action resides,
with well over 20,000 federal contractors with annual revenue
under $20 million.
Second, small is in the eye of the buyer. A $500 million firm
can truly benefit from a $5-10 million firm if that entity brings
with it a newly won five-year contract with a ceiling of $60
Third, sellers with a strong strategic edge can add value
immediately to a much larger company if the buyer has no
easy access to the seller's agency relationship or other key
asset. Minuteman Ventures recently represented for sale a
company with fewer than 15 Top Secret-SCI cleared personnel
supporting application development in one of the three-letter
intelligence agencies. Suitors came from a wide range of
buyers, including one with over $10 billion in revenue! Why?
The 'Small' had an asset — high level cleared employees
in an often contractually impenetrable agency — that the
"Big' could not otherwise obtain.
We put that question of size and M&A to Jim Ballard,
President, Government Services Group, for Perot
Perot Systems in July 2005 acquired 65-person PrSM Corp.
(pronounced "prism") for $7.2 million. Perot Systems is at a
run rate to exceed $2 billion in revenue in 2006.
Characterized as a leader in consulting, business process,
application, and infrastructure services, Perot Systems is
constantly looking for companies with technical depth, no
matter the size. PrSM brought that, said Ballard.
As smaller transactions can take a similar amount of time and
capital to complete as larger deals, the small company must be
'very, very strategic,' he said. "For us to acquire a small
company, it must be a rifle shot, not a shotgun."
Ballard's group looked at 20 companies last year with revenue
under $25 million. Few passed muster, a result often brought
on by the need for a specific strategic fit associated with such a
small firm when compared to Perot Systems.
Smaller firms get no special break from the Perot Systems
CFO, explained Ballard. The pricing, synergy and strategy must
still equate to a return to Perot shareholders that exceeds
Perot's internal cost of capital.
Indeed, Perot Systems strives for M&A transactions that are
accretive, meaning the small company's earnings must add
value immediately to Perot Systems', no matter that such
earnings are immaterial when consolidated with the New York
Stock Exchange firm.
Perot Systems and operational personnel from PrSM knew each
other from joint assignments at Department of Energy sites at
Los Alamos and Oak Ridge. (PrSM is headquartered in
Knoxville, Tenn.) PrSM Corp. is a safety, environmental and
engineering services firm mainly performing work for U.S.
Department of Energy contractors.
The acquisition allowed Perot Systems to provide a broader
footprint of safety and quality engineering services to the U.S.
Department of Energy and to expand offerings into other
markets such as the U.S. Department of Defense and NASA.
PrSM's expertise in advising on the safety and occupational
health issues related to nuclear power gave Perot Systems the
technical strength it sought, said Ballard, while providing an
opportunity for PrSM to bid on larger contracts. The PrSM unit,
now fully branded as Perot Systems, has already won its two
In the end, it is fair to say that Jim Ballard and Perot Systems
overcame any impediments due to the acquired firm's size in
transacting and integrating this acquisition.
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Where will the Next Generation of Federal Sector CEOs Come From?
Robert Brudno is Managing Director of Savoy Partners
The Old Guard CEOs are moving on in many sectors of the IT,
professional services and government contracting industries
and potential successors are often not easily found inside their
companies. There are many reasons why this has occurred, but
few choices exist for boards of directors that must increasingly
focus on this urgent problem.
Too many companies leave their best performers in their areas
of strength, rather than rotating them through other functions
and business units to give them the broad experience
necessary to become candidates for CEO. GE does it right. It
moves marketing people into finance and light bulb people into
turbines in a well-planned executive development program that
always seems to produce successors for GE (and for other
companies). The government contracting industry stovepipes
its top performers and wonders why they lack successors for
Demographics tell part of the story. The next generation of
industry leader should be in their mid-forties to early fifties
right now. When that group was graduating from college, the
Cold War had ended and telecom, Silicon Valley and other
businesses seemed more attractive than the government
market. Today, defense, homeland security and information
security are hot businesses, but the lack of bench depth is
remarkable. When asked recently to initiate a search for a COO
as a potential heir apparent to a sixty-something CEO, I was
able to put together a list of prospects in one day, and the list
was not very long.
Part of the problem is the understandable reluctance of CEOs
who are at the top of their game today to give up the throne.
People are living and working longer. CEOs don't view 65 as a
natural career end any more. Unfortunately, when they gain a
reputation for being never willing to "let go," the best internal
successors move on and outside prospects are deterred by the
uncertainty of the change of command.
Some believe that all of the M&A activity in the industry should
have a positive impact, as companies can acquire executive
talent along with more revenues. Unfortunately, the best talent
is often the first to quit when companies act like conquerors
and stifle the entrepreneurship that was rewarded by the
acquired company. Second, as the largest companies in the
industry, like GD and Lockheed Martin, continue to be the
biggest consolidators, few executives from the smaller,
acquired companies are able to immediately scale up.
Hiring from the military or government is a traditional source
of executive talent for the industry, but few retirees have the
business experience to immediately assume the reins of a
large, private sector company.
So, what can companies do to build their bench strength and
prepare for CEO succession? Here are some of the choices:
- Immediately establish an executive development program
that includes early identification of the top performers. Too
often companies lose their next generation of leaders before
they even emerge as senior, general managers. The most
ambitious have been lured away, want to try their hand at
running smaller companies, or otherwise react to the
ossification that they see above them.
- If companies must go outside, they should proceed with
care. Boards have made many mistakes hiring successors who
do not fit the culture. Many presume that the largest executive
search firms can find the right person without realizing that
these firms often have so many client "off limits" constraints
that the pool of talent is smaller than it would be if a top
"boutique" search firm were used. Many times, hiring the big
name recruiter is intended more to defend a failure than
improve the chances of success.
- Beware the siren call of hiring a real "outsider" who will
bring a "fresh" perspective. The CEO or COO position is not a
good place for on-the-job training in government contracting.
Finding someone who actually knows the business is harder,
but is much more likely to lead to success.
- Move senior executives around, even if the customers
might object. Create an inside pool of candidates with broad
experience so that the choices are internal when the time
comes to move one up.
- Hang on to those produced by #1 and #4.
While the federal budget dollars will be moved around in the
years to come, most of the players in this industry will have
ample opportunity to diversify and expand. Capital seems to be
plentiful. Human capital at the top is not.
Robert Brudno is Managing Director of Savoy Partners, a
Washington, D.C.-based retained executive search consulting
firm. Over the past 25 years, Mr. Brudno has completed many
senior level searches for top executives in the aerospace,
defense, professional services, and high tech industries.
Recently, he recruited the new CEO of SAIC, a new President
for CACI, and performed other senior, succession searches. He
can be reached at 202-887-0666.
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Company Growth May Impact ID/IQ Task Order Awards
by Liz Gill, Wickwire Gavin PC
A recent court ruling may have a distinct impact on the ability
of entities previously certified as small-businesses to compete
for certain contracts.
This is an important consideration if your company has
acquired a small business and anticipated relying on its
small-business status to compete for and acquire future
The general, longstanding rule is that a size certification is
valid for the life of the contract, including option periods, even
if the company grows in size. But the rule established in this
recent case allows an agency to ask you to recertify on each
task order issued under an ID/IQ multiple award contract.
A federal court held in a post-award protest that a decision by
the SBA Office of Hearing and Appeals ("OHA") requiring a size
re-certification as of the offer date specified in the task order
RFP was neither irrational nor illegal. The contractor, in
LB&B Associates, Inc. v. United States, No. 05-1066L,
2005 U.S. Claims LEXIS 368 (Dec. 8, 2005), alleged that the
OHA decision was inconsistent with SBA regulations and binding
precedent that its existing size certification qualified it as a
small business for the life of the contract.
LB&B was one of many awardees selected under an Air Force
multi-award ID/IQ contract. At the time it submitted its offer on
the underlying ID/IQ contract, LB&B properly certified that it
was a small business. When the RFP was issued for the task
order at issue, however, LB&B no longer met the size
certification requirement for the corresponding NAICS code.
Prior to award of the task order, the Air Force filed a protest
with the SBA's Area Office to determine if LB&B still qualified
as a small business for purposes of the task order. The Area
Office ruled that LB&B could rely on its earlier size certification
submitted for the underlying ID/IQ. On appeal, the OHA found
LB&B no longer eligible to receive the task order since it was
no longer a small business. The OHA determined that: (1) the
task order RFP was a solicitation for a new contract; (2) the
task order RFP required re-certification; and (3) certain SBA
regulations require an offeror to self-certify it is a small
business under the standard specified in the solicitation.
LB&B filed a protest with the Court of Federal Claims seeking
preliminary and permanent injunctive relief. LB&B argued that
the SBA regulations provide that a concern that qualifies as a
small business at the time it receives its contract is considered
a small business for the life of the contract. Therefore, its
previous certification for the ID/IQ contract was applicable.
The Court agreed, but also noted that the SBA has recognized,
in connection with other types of multi-award contracts such as
Federal Supply Schedule and Multiple Award Schedule
contracts, that contracting officers have the discretion to
require re-certification of small business status at the time of
the new contract. Because the underlying ID/IQ did not
guarantee work but only the opportunity to compete for future
contracts, the court upheld the OHA's decisions that the ID/IQ
contract provided only a framework for future contracting and
the present task order RFP represented a new procurement that
could involve a new certification. Thus, the Contracting Officer
could request a size re-certification for the separate task order.
This case notes the importance of the timing of certifications
under different types of government contracts.
For traditional contracts, the size determination is made at the
time of the offer and any change in the size of a company over
the course of the contract is irrelevant. 13 C.F.R.
121.404(g). Under this SBA regulation, if the company
grows to be other than small, the agency can still exercise
contract option periods and count the award as an award to a
For multi-award ID/IQ contracts, however, this decision
highlights the discretion of a contracting officer to require small
businesses to re-certify where the new contract involves or
requires small business set-asides.
Thus, if the small business that has been acquired by your
company now exceeds its previously applicable size
requirement, it may not be eligible for new task order
awards issued under the multiple award ID/IQ contract.
Elizabeth M. Gill is associated with the firm of Wickwire
Gavin, P.C. Her legal practice focuses on counseling of federal
and state contractors, government contract litigation,
construction litigation, and surety law. She may be contacted
by email at firstname.lastname@example.org.
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The Federal Deal
FGR offers analysis of M&A transactions involving
government services contractors. The analysis is written by
Stuart McCutchan, president and CEO of InfoBase Publishers,
Inc. © and editor of the Defense Mergers & Acquisitions, a
premier source for information on defense/aerospace M&A.
Opinions expressed below are those of InfoBase. All rights
reserved. For more on InfoBase Publishers' services, contact
Bill Burton (410-820-6821, email@example.com
General Dynamics to Acquire Anteon
On Dec. 14, 2005 General Dynamics Corp. (NYSE: GD)
announced its biggest acquisition of the decade: Anteon Corp.
(NYSE: ANT), a systems integration company that provides
mission, operational and IT enterprise support to the U.S.
government. Anteon is being acquired for an enterprise value
of $2.2 billion. General Dynamics has only once paid more for
a company: Gulfstream Aerospace, for which it paid $4.8 billion
This deal represents a break from General Dynamics' recent
pattern of acquiring smaller information technology hardware,
software, and integration companies — but not
from its exclusive focus on adding to its Information Systems &
Technology (IS&T) group.
IS&T — the House that M&A Built — was already
fifty percent larger than any of General Dynamics' others
sectors at the close of 2004, turning in revenues of $6.8 billion.
During 2005 that lead will only lengthen, driven by the
acquisitions of FC Business Systems, Itronix, Tadpole Computer,
and MAYA Viz. Next year that process will accelerate sharply,
even if the sector closes no deal other than Anteon. The
numbers are stunning: from mid-2004 through the first quarter
of 2006, the company will have added more than 13,000 people
to the payroll of General Dynamics IS&T.
This deal will approximately double the size of the smallest of
IS&T's three businesses, General Dynamics Network Systems.
Anteon will add $1.5 billion in sales (the expected 2005 figure)
to the $1.75 billion which GD earned in the "Network
infrastructure & IT services" category in 2004. We're not
surprised that GD is choosing to add to this category, which has
been growing at a torrid rate of 33 percent since 2002, all of it
internally generated. We are surprised that it has taken this
long for the company to throw fuel on the fire. But with two
deals announced in two days (Anteon and FC Business
Systems), the era of strategic neglect is plainly at an end.
What GD is Getting
Anteon could be likened in many respects to CACI International.
Both companies operate largely within the program
management support sector of the professional services
marketplace. Both have used M&A to add customers and
capabilities, and have thereby edged judiciously up the food
chain. And both, most importantly, have top notch business
development operations which have allowed them to generate
most of their growth internally.
The numbers tell the story: since Anteon was created in the
1996 acquisition of Ogden Corp.'s Professional Services
business, revenues have grown from $110 million to $1.5
billion. Revenues from its nine acquisitions have accounted for
only a third of that growth. Headcount has risen to 9,500
people. And backlog — that indicator of past success and
predictor of future prosperity — stands at $6.6 billion.
All in all, a staggeringly impressive performance (and a
staggeringly impressive return for owner Caxton-Iseman
Capital, whose $32.5 million investment has returned more
than $700 million, counting the six percent stake it continues to
hold in Anteon).
Beyond its core business in IT services and program
management support, Anteon has added domain knowledge in
the areas of open architecture, information assurance,
modeling and simulation. These capabilities will marry well
with General Dynamics' existing capabilities. We're especially
intrigued by the modeling and simulation business, which
includes a robust sideline in training soldiers for urban warfare.
Beyond the obvious relevance to the current situation in Iraq,
this business has a unique synergy with GD: the company has
through its own M&A strategy (in particular the buys of MAYA
Viz and Itronix) been pushing closer to the edge of the
battlefield itself. In his comments during the Q&A portion of the
conference call, IS&T chief Jerry DeMuro talked of "pushing
information to the edge" for the warfighter.
Why GD Wants It
First, the obvious: at roughly $3.5 billion a year, General
Dynamics Network Systems will have risen to Tier one status
in the federal services marketplace, able to contend as equals
with Lockheed Martin, Northrop Grumman, Computer Sciences,
and SAIC. The point bears repeating: in a marketplace where
the customer keeps rolling up his requirements into bigger,
more complex packages, the size of the bidder does indeed
matter. And in the case of General Dynamics Network Systems,
when the requirements get really wooly, it will be able to call
on some high end capabilities resident in its Advanced
Information Systems and C4 Systems businesses.
During the conference call with analysts, GD chairman and CEO
Nick Chabraja noted that this deal and the Veridian deal have
similar EBITDA multiples (14.6 in the case of Veridian, 13.1 in
the case of Anteon). But he said that where Veridian was a deal
driven by the opportunity to realize cost savings, this deal is
being driven by perceived opportunities in marketing.
The company is particularly excited by the fit with Anteon from
an operational perspective. Putting the matter at the highest
level, Anteon brings expertise in mission IT services, bridging
the gap between General Dynamics' enterprise IT services and
Acknowledging that Anteon adds most directly to General
Dynamics Network Systems, Chabraja makes the case that this
deal will help dissolve the boundaries between Network
Systems and IS&T's two other pillars: Advanced Information
Systems (AIS) and C4 Systems. This is the characterization of
the deal we find the most interesting, because it ties the deal
strategically to the dealmaking which has been building other
parts of this sector. We return again to the MAYA Viz and
Itronix deals, and the Pentagon's emphasis on putting better IT
tools directly into the hands of warfighters.
GD also has a special interest in Anteon's largest program, the
tortuously-named Applications and Support for Widely-diverse
End User Requirements ("ANSWER"). Since receiving its
ANSWER hunting license from GSA in 1998, Anteon has become
the program's most prolific contractor, winning 477 task orders
(as of the end of 2004) and realizing revenues of close to $200
million per year. The company is confident it has its ducks in a
row for the follow-on Alliant procurement, to be awarded next
year. And General Dynamics can be confident that Anteon, with
its heavy reliance on multiple award-type contracts and the
GSA schedule, is operating directly in the mainstream of one of
the most powerful trends in the government technology
One final insight into this deal: we wonder whether Mr.
Chabraja's downplaying of cost savings can necessarily be
taken at face value. We base this on an exchange between
Chabraja and CIBC analyst Miles Walton, in which the latter
observed that NS has much higher sales per employee than
Anteon ($270K/employee vs. $180K/employee at Anteon).
Chabraja dismissed such comparisons as a "silly exercise",
noting that NS differs from Anteon in that it passes a high
percentage of its sales through to subcontractors, which has
the effect of inflating its employee productivity numbers.
Which has us thinking: if some of those NS revenues could be
kept at home — if they were performed by the Anteon
business instead of being passed through to subcontractors
— well, then the Anteon business would have just added
a new source of prime-contract-level, fully-margined revenues.
And General Dynamics would have figured out a way to realize
a greater return on the contracts which it had already won. And
there's nothing silly about that.
The Game Remains Afoot
Most industry observers would agree with the idea that the best
days of the defense marketplace expansion are past. Major
programs are on the chopping block. An expensive war and an
even more expensive hurricane season have sapped
government resources. Some companies have been acting as
though the deluge was already upon them, pulling in their M&A
programs and paying cash out to shareholders just as fast as
they can rake it in.
But they do continue to rake it in. Margins in the government
technology services marketplace have never been better, and
the top line is still arcing upwards, albeit more gradually. That
trend has two of the industry's biggest players —
Lockheed Martin and General Dynamics — engaged in a
full-fledged acquisitions race, joined at the periphery by
players like BAE Systems and (watch out) SAIC.
GD is betting that even if spending tops out and margins pull
back (and we do think they will have to), Anteon's vaunted
business development department will be able to market the
company out of trouble. In his conference call with analysts,
Chabraja said that Anteon and General Dynamics "have
identified currents of growth that are significantly faster than
the overall budget." Add a little of what Chabraja called the
"secret sauce" behind the deal (which may include Anteon's
burgeoning backlog as a principal ingredient), and you have the
strategic case for growth in a down market. If a rising tide
floats all boats, the ebb tide is still characterized by swift
eddies in which a maneuverable boat can still work up a good
head of steam.
We wouldn't bet against General Dynamics, which over the past
decade has had just as much opportunity to prove it can
expand in a down market as it has in a growing market.
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FGR presents briefs on selected technology services
contracts awarded by the U.S. government to federal
contractors during the last two months. The briefs are compiled
by InfoBase Publishers, Inc. ©, a leading provider of
competitive intelligence for the worldwide defense/aerospace
industry. All rights reserved. For more on InfoBase Publishers'
services, contact Bill Burton (410-820-6821), firstname.lastname@example.org
or click http://infobasepub.com.
Army PEO STRI Chooses UNITECH to Provide MILES
The U.S. Army Program Executive Office, Simulation, Training
& Instrumentation (PEO STRI) (Orlando, FL) awarded Universal
Systems & Technology, Inc. (UNITECH) (Centreville, VA) a
four-year, $18.8 million task order on a previously awarded
contract to design and produce the latest Multiple Integrated
Laser Engagement Simulation (MILES) technology devices.
Under the task order, the company will develop MILES devices
to aid training and exercise support training for soldiers by
producing their newly developed Shoulder Launcher Munitions
(SLM) Weapons Effects Simulators (WES). The Army deployed
the MILES system as a tactical simulation training method for
preparing soldiers for combat in the early 1970s.
UNITECH will provide the Army with more than 3,500 each AT-4
launcher simulators and 455 visual modification (VISMODS) kits
for the basic device, which simulates multiple existing opposing
forces shoulder-launched munitions. Used to support MILES
training, the launchers will have a modular, flexible design,
allowing the training system to be upgraded quickly and
economically to accommodate additional system requirements.
The VISMODS will simulate weapons other than the AT-4.
The task order was competitively procured through the PEO
STRI Omnibus Contract (STOC). Competition was limited to
small businesses holding STOC contracts only.
UNITECH issued a statement that said its work in this field
created 75 jobs in 2005 and will create 75 more jobs this year
Army SMDC Chooses ASD to Provide IT Support for
The U.S. Army Space and Missile Defense Command (SMDC)
(Huntsville, AL) awarded Advanced Systems Development, Inc.
(Arlington, VA) a 10-year, $405 million, IDIQ contract
(W9113M-06-D-0001) to support the U.S. Army's Command
Information Management System (CIMS).
Under the contract, the company will provide information
technology (IT) solutions for CIMS, which is the overall
command enterprise and architecture that encompasses the
primary IT functions that support the U.S. Missile Defense
Agency (MDA) and the Army Forces Strategic Command. It also
plays a role in space operations and ballistic missile research
and development (R&D).
ASD's subcontractors include:
— SAIC Transformation, Training & Logistics Group
– Systems & Technology Solutions Business Unit
— Camber Corp. (Huntsville, AL).
— InfoPro Inc. (Huntsville, AL).
The contract was competitively procured through solicitation
W9113M-05-R-0010, which was issued on July 8, 2005, and
called for competition limited to small businesses only (NAICS
541512). Proposals were due on August 15, 2005.
The procurement is considered a follow-on effort. The
incumbent was Quality Research, Inc., now part of SAIC, which
performed the work previously under a $73.4 million contract
(DASG60-98-C-0017) awarded in August 1998.
Army TRADOC Picks Six to Supply Distributed
Learning Education and Training Products
On behalf of the U.S. Army Training and Doctrine Command
(TRADOC), the Army Contracting Agency, Northern Region
Contracting Center (ACA NRCC) (Fort Eustis, VA) awarded six
parallel, five-year, firm-fixed-price, IDIQ contracts, worth $1.1
billion collectively, for the U.S. Army's Distributed Learning
Education and Training Products (DLETP) program.
The recipients were:
— Universal Systems & Technology, Inc. (UNITECH)
(Centreville, VA), which was awarded a $320 million contract.
— C2 Technologies, Inc. (Vienna, VA), which was
awarded a $346 million contract.
— Intelligent Decision Systems, Inc. (IDSI) (Centreville,
VA), which was awarded a $342 million contract.
— Logistic Services International, Inc. (LSI)
(Jacksonville, FL), which was awarded a $338 million contract.
— Karta Technologies, Inc. (San Antonio, TX), teamed
with 17 subcontractors including "Tier One" partners CACI, Inc.
– Federal (Arlington, VA); SRA International, Inc.,
Defense Sector (Fairfax, VA); and IBM Global Government
Industry (Bethesda, MD). Karta was awarded a $247 million
— Planning & Learning Technologies, Inc. (Pal-Tech)
(Arlington, VA), teamed with General Physics Federal Systems,
Inc. (Fairfax, VA); Hampton Univ. (Hampton, VA); Information
Systems Support, Inc. (ISS) (Gaithersburg, MD); L-3 Link
Simulation & Training (Arlington, VA); Microsoft Federal
Systems (Washington, DC); New Horizons; Pearson VUE;
Research Triangle Institute (Research Triangle Park, NC);
SphereCom Enterprises; Symantec Corp. (Cupertino, CA); and
Virginia Polytechnic Institute and State Univ. (Blacksburg, VA).
Pal-Tech was awarded a $219 million contract.
Under the multiple-award program, these companies now will
compete for task orders to supply products that use the latest
digital technology for developing Interactive Multimedia
Instruction (IMI) web-based courseware to play in a standalone
mode over the Internet, via CD-ROM, and DVD. The DLETP
program is part of the Army's continuous effort to maintain
high-quality training for all of its troops.
The contracts were competitively procured through solicitation
W911S0-04-R-0010, which was issued on December 4, 2004,
and called for competition limited to small businesses only
(NAICS 339999; 500 employees). Proposals were due on
February 15, 2005.
The procurement is considered a follow-on to the five-year,
$1.15 billion Army Distributed Learning XXI (DLXXI) program
awarded to four companies in November 1999.
(ROTC) organizations, the Army National Guard, and other
defense and commercial clients.
Navy SPAWAR HQ Taps Eyak Technology for Network
Management Software and Related Hardware
The U.S. Space and Naval Warfare Systems Command,
Headquarters (SPAWAR HQ) (San Diego, CA) awarded Eyak
Technology, LLC (Anchorage, AK) a $15.2 million
firm-fixed-price contract (N00039-06-C-0014) for network
management software, related hardware and software,
installation, and software license maintenance.
Under the contract, the company will provide a network
management system for the PMW-790 tactical switching
program which uses commercial off-the-shelf products,
compatible with existing legacy equipment, that ensure
achievement of a future need to be compatible with the Global
Information Grid Network operations system.
This contract includes options which if exercised would bring
the cumulative value of this contract to $21.9 million.
Work will be performed at SPAWAR locations in Dulles, VA
(70%); Norfolk, VA (10%); Charleston, SC (10%); and San
Diego, CA (10%), and is expected to be completed by
September 2006 (September 2010 with options). Contract funds
will not expire at the end of the current fiscal year.
This contract was not competitively procured because it is a
sole source acquisition through the Small Business
Administration 8(a) program.
NAWCAD Chooses WinTec Arrowmaker to Support
'Little Black Box' Programs
U.S. Naval Air Warfare Center – Aircraft Div. (NAWCAD)
(St. Inigoes, MD) awarded WinTec Arrowmaker, Inc. (Fort
Washington, MD) a five-year, $26 million, cost-plus-fixed-fee,
IDIQ contract (N00421-06-D-0008) for technical and
engineering services in support of NAWCAD's Special
Communication Requirements Div. (SCRD).
Under the contract, which has an estimated level of effort
(LOE) of 72,960 labor-hours per year, the company will provide
concept evolution, design, development, integration, test and
evaluation, maintenance, logistics, and lifecycle support of
Navy, Army, Air Force, Joint Services, Marine Corps, and other
agency communication-electronic platforms, equipment,
systems, subsystems, and unmanned vehicle systems. WinTec
Arrowmaker will perform cradle-to-grave support (from
providing turnkey systems fully integrated with all equipment
to the development of specific systems to meet or enhance
performance requirements). Work will be performed in Tampa,
FL (81.58%) and St. Inigoes, MD (18.42%).
The contract contains a one-year base (worth $5.1 million) and
four one-year options that, if exercised, could increase its total
cumulative value to near $26 million (estimate) and extend the
period of performance to February 2011. Contract funds in the
amount of $524,123 will expire at the end of the current fiscal
The contract was competitively procured through solicitation
N00421-05-R-0073, which was issued on June 29, 2005, and
called for competition among small businesses only (NAICS
541330; $23 million). Proposals were due on August 1, 2005.
Only one offer was received.
NAWCAD Taps Scientific Research Corp. for R&D
The U.S. Naval Air Warfare Center-Aircraft Div. (NAWCAD)
(Lakehurst, NJ) awarded Scientific Research Corp. (SRC)
(Atlanta, GA) a not-to-exceed $25 million Phase III Small
Business Innovative Research (SBIR) program contract
(N68335-06-D-0006) for Topic N01-013 entitled "Mid-Air
Collision Avoidance System (MCAS) Using Mode 5", and SBIR
Topic N01-188 entitled "Smart Flat Panel Multifunction Color
Display (MFCD) with Positive Pilot Feedback."
Under the contract, the company will provide services and
materials for engineering tasks, including exploratory study of
application, further research and development (R&D), analysis
for system integration, prototype development and fabrication,
customizing prototype to specific platform needs, test and
evaluation (T&E), product support services, production buys
and training as necessary.
Work will be performed in Atlanta, GA, and is expected to be
completed in January 2011. Contract funds will not expire at
the end of the current fiscal year.
The contract was competitively procured using a SBIR program
solicitation under Topic N01-013 (a total of three offers were
received), and Topic N01-188 (a total of five offers were
NUWC Taps SEA CORP to Continue Developing SSTD
The U.S. Naval Undersea Warfare Center Div. Newport (NUWC)
(Newport, RI) awarded Systems Engineering Associates Corp.
(SEA CORP) (Middletown, RI) a $9.4 million cost-plus-fixed-fee
contract (N66604-06-D-0100) for engineering and technical
services in support of continued development and production of
a Surface Ship Torpedo Defense (SSTD) launch canister.
Work will be performed in Middletown, RI, and is expected to
be completed by December 2010. Contract funds in the amount
of $335,000 will expire by the end of the current fiscal year.
The contract was not competitively procured. It is a Small
Business Innovative Research (SBIR) Phase III procurement
that further transitions the company's earlier demonstrated
technology to a production baseline addressing several mission
areas with emphasis on their unique requirements and
USAF ESC Taps ECSI for More Security Systems
The U.S. Air Force Electronics Systems Center (ESC) (Hanscom
AFB, MA) awarded ECSI International, Inc. (Clifton, NJ) a
$550,000 task order on a previously awarded contract (F19628
-03-D-0011) under the Tactical Automated Sensor Systems
(TASS) program for forward base rapid deployment
This order is in addition to the previous orders which now
brings the total to over $7,350,000. The task order was
competitively procured through ESC's Integrated Base Defense
Security Systems (IBDSS).
Arthur Barchenko President and CEO stated, "After posting a
record $6 million in sales for Fiscal '05, we continue to close
substantial orders for equipment and sales to be delivered in
Fiscal '06. This additional task order reaffirms the fact that
ECSI is an integral part of the Department of Defense (DoD)
security technology program and is recognized as an effective
quality provider for both the military and Department of
Homeland Security (DHS)."
Barchenko further stated, "The Force Protection Program office
of the U.S. Air Force Electronic Systems Center accepted
proposals for multiple award contracts in support of the
Integrated Base Defense Security System program (IBDSS) in
June of 2003. Under the current agreement, ECSI is installing
its premiere product lines designed to prevent unauthorized
entry or access to large, medium and small military facilities.
Since the first major award for the Tinker Air Force Base, we
have received over $13 million in procurements for both the
IBDSS and TASS programs."
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|February 13, 2006
||Alion Science and
|February 8, 2006
|February 8, 2006
|January 30, 2006
|January 26, 2006
||TCS Design and
|January 26, 2006
|January 24, 2006
|January 18, 2006
|January 17, 2006
|January 6, 2006
|January 6, 2006
|January 3, 2006
Solutions (CASS, Inc. unit)
|December 23, 2005
|December 16, 2005
||Aspen Systems Corp.
|December 14, 2005
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Minuteman Ventures LLC News
Joe Fitzgerald, Minuteman's Director of Huntsville
operations, this past month received the "Distinguished
Service Medal" from the Governor of Alabama, the highest
medal awarded by the Governor to a citizen of the state.
Congratulations Joe!… Minuteman Ventures President Paul
Serotkin sits on a panel March 3 at an event titled
'Navigating New Terrain' sponsored by global investment bank
UBS. Held at the Ritz-Carlton Pentagon City in Arlington, Va.,
this is the 3rd Annual Government/Defense IT
Conference held by UBS, with the focus on federal IT
services. Serotkin joins the "Consolidation/M&A Outlook"
panel… Mark your calendar for March 7 and 8.
The Strategic Research Institute is hosting its annual
Defense, Aerospace and IT Investor and Corporate
Development Conference. Leading defense/aerospace and
federal IT investors and corporate development executives will
once again meet in Reston to take stock of the constantly
evolving industry. The event is at the Hyatt Regency Reston,
here for more.… The National Defense Industrial
Association will host its Third Annual National Small
Business Conference May 8–10 in Newport, R.I.
Titled 'Meeting DoD/DHS Mission Needs in the 21st Century,'
the event brings together company executives and DoD/
government leaders to address current issues and
trends… See the Jan. 6 issue of Washington
Technology, which quotes Minuteman's Chuck
Chappell on the draw of private equity funds to the federal
sector. Click here for
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Minuteman Ventures LLC advises company owners on
the sale of their businesses, and assists corporate and private
equity buyers in strategic acquisitions and divestitures. Our
team consists of experienced entrepreneurs and business
executives who founded or operated companies and corporate
We specialize in companies that sell services, products, and
solutions to federal government clients. We pride ourselves in
being the investment bank for
entrepreneurial companies in the federal sector.
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