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Navy awards Raytheon potential $903.9M contract

The Navy has awarded Raytheon, a subsidiary of Arlington County Fortune 500 aerospace and defense contractor RTX, a contract worth up to $903.9 million, if all options are exercised, to provide support for a sensor system, the U.S. Department of Defense announced Monday. 

The initial $34 million firm-fixed-price, cost-plus-fixed-fee, cost-plus-incentive-fee and cost only contract covers design, development, integration, test and maintenance of system capabilities for the design agent and engineering support efforts for the Cooperative Engagement Capabilities (CEC) sensor system. CEC allows data from sensors in different places to provide a single integrated picture, meaning multiple ships, aircraft and land units can share radar target measurements simultaneously in real time.

Purchases for the U.S. Navy makes up 65% of the contract. The contract also includes purchases for the governments of Japan (15%), Australia (13%), Canada (6%) and Germany (1%) under the Foreign Military Sales program, which allows the United States’ international partners to purchase defense equipment and services. 

The U.S. Navy will pay $20.54 million of the contract, with $1.7 million coming from the United States Marine Corps. The governments of Japan, Australia, Canada and Germany will pay about $11.8 million with the contract. About $2.89 million will expire at the end of the current fiscal year. 

Work will be performed in St. Petersburg and Largo, Florida as well as Maynard, Massachusetts. Work is expected to be completed by November 2025. If all options are exercised, work will continue through November 2029.

Last week, the Navy awarded Raytheon a $590.8 million contract to produce nine Next Generation Jammer Mid-Band (NGJ-MB) ship sets for the military branch’s EA-18 Growler electronic warfare aircraft and four more sets for the Royal Australian Air Force. The NGJ-MB is an electronic attack system.

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023. Raytheon is also based in Arlington.

A smart defense

In late 2020, the Air Force made headlines when it announced that an artificial intelligence co-pilot, named ARTUµ, helped command and control a U.S. military spy plane for the first time in history.

If the name, pronounced R-2, sounds familiar, it is. Think R2-D2, or “Artoo,” Luke Skywalker’s lovable droid and X-Wing copilot from the “Star Wars” franchise. Except this was not a galaxy far away, but Beale Air Force Base in California.

ARTUµ controlled sensors and tactical navigation of a U-2 Dragon Lady on a reconnaissance training mission out of Beale on Dec. 15, 2020. It was charged with searching for enemy missile launchers while the plane’s human pilot, known only by the call sign “Vudu,” searched for enemy aircraft during a simulated missile strike.

The tech, developed by McLean-based Fortune 500 contractor Booz Allen Hamilton and Air Force researchers, modified an open-source gaming algorithm and ran more than 1 million training simulations in a lab — a “digital Dagobah,” Will Roper, who then served as the service’s assistant secretary for acquisition technology and logistics, wrote in an editorial for Popular Mechanics. ARTUµ was mission-ready in just over a month.

“Failing to realize AI’s full potential will mean ceding decision advantage to our adversaries,” Roper said at the time. 

Fast-forward four years and AI’s technological advancements have continued, transforming lives and — controversially — livelihoods as it becomes more entrenched in the workplace. At the same time, the military has continued to cite how critical AI will remain in helping the U.S. outpace its adversaries. Even as the Pentagon faces ongoing tensions in the Middle East amid the conflict between Israel and Hamas, and in Europe with Russia’s ongoing war on Ukraine, military leaders are refocusing for the potential of a wide-ranging battle with China in the Pacific that would most likely unfold across sea, air, land, space and cyberspace.

Virginia’s defense contractors are at the cusp of that work, with a hand in some of the largest and most transformative AI projects on behalf of the military. Those range from warfighting tools like unmanned vehicles to generative AI software to perform mundane business support tasks like military personnel record searches. That’s work that could be game changing for the military at a time when budgets and manpower are tight and harnessing data could be key to maintaining the upper hand against an adversary.

“We try to focus on mission meets
innovation,” says Holly Levanto, who is overseeing delivery of AI and digital solutions for Booz Allen Hamilton’s defense clients. Photo by Shannon Ayres

“I think that the eye is on the prize … when it comes to [the Department of Defense] right now, from the perspective of this is something we have to do from a national security point of view based on threats that we see from other nation states,” says Jason Payne, chief technology officer for Arlington County-based Microsoft Federal, which currently has a contract worth as much as $21.9 billion to produce more than 100,000 AI-enhanced goggles for the Army. “We know that near-peer competitors are investing heavily in this technology.”

Crunching data

The Pentagon is also investing heavily in AI technology. Its fiscal 2025 budget request, which totals $850 billion and was released in March, includes $1.8 billion for AI spending as well as an additional $1.4 billion for the department’s Combined Joint All-Domain Command and Control project, an ambitious departmentwide effort to connect “sensors to shooters to targets” globally.

But those dollar figures, the Pentagon admits, don’t likely tell the full story. With AI involved in so many programs, the Pentagon’s comptroller has acknowledged it’s difficult to provide a detailed breakdown of its AI investments. Even pinning down the exact number of AI defense projects is challenging. A 2022 Government Accountability Office report found that the DOD had at least 685 ongoing AI projects spanning the military service — a figure based on procurement and research and development dollars.

While those numbers may not offer a ton of clarity on the scope to which the Pentagon is looking toward AI, they do underscore the importance of it for the military, and Virginia contractors are benefiting from that desire.

Booz Allen Hamilton bills itself as the largest supplier of AI services to the federal government, with more than 300 active projects involving AI, according to Holly Levanto, a vice president overseeing the delivery of AI and digital solutions for Booz Allen’s U.S. defense clients.

“We try to focus on mission meets innovation,” Levanto says.

That work has included some of the Pentagon’s largest AI projects to date, including an $800 million, five-year task order awarded in 2020 to integrate and develop AI for the warfighter in the Alliant 2 Joint Warfighter Task Order, as well as a $885 million, five-year task order awarded in 2018 to help the DOD sift through its enormous amount of reconnaissance data — a project called Enterprise Machine Learning Analytics and Persistent Services, or eMAPS — through the deployment of AI and neural and deep neural networks. Booz Allen won a $1.5 billion recompete for the project in 2022.

Focusing on those mission areas has meant incorporating AI in ways to parse data faster. As an example, the Navy gathers vast amounts of data from its ships, Levanto says. Booz Allen has turned raw naval message traffic into tabular data that can be more easily and quickly analyzed to pinpoint trends. 

“We can send AI models to the edge at the point of data collection,” says Levanto, a former naval surface warfare officer. “And so, we have some real-world scenarios where we’ve done that in points on the battlefield.”

Booz Allen also launched a venture capital fund in 2022 to sharpen its tech capabilities. It has now invested in 10 companies, eight of which are AI-focused, Levanto says. That included an investment in Wisconsin-based RAIC Labs, which developed a model- generating platform using unstructured data. In 2023, RAIC made headlines when its tech was used to track a Chinese intelligence balloon that traveled over the U.S. before being shot down by a military jet off the coast of South Carolina.

“Our ultimate goal is to get the Department of Defense to be able to utilize these leading commercial technologies … and so we need to help bridge that,” Levanto says.

Falls Church-based General Dynamics Information Technology, a subsidiary of Reston-based Fortune Global 500 aerospace and defense contractor General Dynamics, is also no stranger to big defense contracts involving AI, or those that involve wrangling large sets of data.

In March, GDIT received a $922 million contract to modernize enterprise IT infrastructure for U.S. Central Command, which directs and enables U.S. and allied military operations across the Middle East and a portion of Africa.

Data is the biggest barrier to AI, says GDIT’s Brandon Bean, the AI and machine learning leader for the company’s defense division. That includes data quality and integrity as well as accessing old, siloed IT architectures. Where it used to be that applications were built to create data as a byproduct, the paradigm has shifted. Now, data “is what the application is built to support,” Bean says. “The data comes first.”

At a September conference hosted by GDIT at Amazon’s HQ2 headquarters, John Hale, chief of cloud services for the Defense Information Systems Agency, discussed how DOD is working with contractors to update antiquated computer code with AI.

“We’re using AI capabilities to … modernize legacy code that all the people who ever wrote it are long gone,” Hale said. “And you know, it’s not perfect, but it gets us like 85 to 90% of the way there, and then we’re able to manually fill in that last 10 to 15% to bring these applications into the 21st century.”

For CENTCOM, GDIT is tasked with creating data analytical services to support decision-making across nearly 20 networks and building data centricity and literacy across the command. By leveraging AI, including incorporating data tagging, what has previously required a more tedious process of manual data sampling of mountains of records can be extrapolated much faster, giving commanders the potential to better evaluate what worked during missions, or develop trainings based on lessons learned. It could also help service members to prove justifications for injuries that may not have been recorded in their medical records, Bean says.

AI in the cockpit

While AI is helping the Defense Department wrangle large amounts of data for higher level decision-making, the Pentagon is also incorporating AI in weapons systems and for operational use by warfighters. And that tech is getting increasingly advanced.

In May, Air Force Secretary Frank Kendall, who has advocated for the military’s use of AI, rode in an F-16 Fighting Falcon that was controlled by AI in a dogfight exercise against another F-16 flown by a human. Relying on sensors, California-based Shield AI developed the program used by the Air Force during the flight. In March, Arlington County-based Boeing announced a collaboration with Shield AI to develop autonomous and AI technologies for defense programs. Boeing declined to comment for this story.

With AI in the cockpit, the technology shows no signs of slowing down, including in a variety of unmanned vehicles, which will be a key component in future battles, with several drone initiatives underway by the Pentagon and military branches.

At Newport News-based Huntington Ingalls Industries, Virginia’s largest industrial employer and the nation’s only builder of nuclear-powered aircraft carriers, computer vision and recognition technologies have improved to the point where autonomous undersea vehicles like the company’s REMUS platform can be used to hunt for targets, gather intelligence and respond to findings without having to report back to the surface, says Andrew Howard, senior director of unmanned surface vehicles and autonomy programs within HII’s Mission Technologies division.

“Based on … customer comfort with things, different use cases, they could either update its survey pattern based on that information, or they could use that as the cue to pass information back to a surface operator to … take action based on that,” Howard says. “So, it’s really kind of made the information a bit more actionable than it used to be.”

The Navy in December 2023 announced that it had successfully launched and recovered a REMUS “Yellow Moray” drone via torpedo tubes on the USS Delaware, a Virginia-class attack submarine commissioned in 2022 and built by HII in partnership with General Dynamics’ Connecticut-based Electric Boat subsidiary. The Navy has said it could field the program for its submarine fleet later this year.

Meanwhile, the Marine Corps has been testing similar surface-level technology for its Long-Range Unmanned Surface Vessel (LRUSV) program using technology developed by HII that uses cameras and machine learning to identify and classify targets for maritime domain awareness, Howard adds. The drone’s tech passes intelligence to an operations center for action. Based on that feedback, the drone can then update its mission and shadow an intended target if called upon to act.

Gathering intelligence with less risk to warfighters can help save lives. Making that information more readily available can make work easier, too.

Reston-based Fortune 1000 contractor CACI International offers the DarkBlue Intelligence Suite, a tool that incorporates various AI techniques, including computer vision and image processing, to help analysts in dark web investigations and tracking. The company received a $239 million six-year task order in August to provide intelligence analysis and operations, including the DarkBlue suite, to the Army’s Europe and Africa command.

AI is also helping the Marines step into the metaverse. In October 2023, Fairfax’s CGI Federal, the U.S.-based arm of the Canadian professional services and consultancy, announced that it successfully completed a $34 million pilot to digitally twin the Florida-based Marine Corps Platform Integration Center’s assets into a virtual world by tagging its inventory and helping the service track its assets in real time. Being able to keep up with equipment like tanks as they travel the world could be of huge importance in a distributed battle across the Pacific, where troops could set up on airfields constructed on austere island chains. It could also help the service track maintenance needs and predict trends across vehicle fleets, says CGI Vice President Stephanie Ackman, who leads the company’s technology practice for defense, space and intelligence clients. 

“When the rubber meets the road … [does a taxpayer] care about where the stuff is?” Ackman asks. “Yes, but they care more so about the safety of the individuals that are down range.”  

Leidos wins $823M task order

The U.S. Defense Information Systems Agency (DISA) has awarded Leidos an $823 million task order to provide operations and sustainment for the Department of Defense Network program (DoDNet), the Reston-based Fortune 500 federal contractor announced Monday.

In 2022, DISA, which provides information technology and communications services for national leaders, the military services and others, awarded Leidos with a $11.5 billion indefinite-delivery, indefinite-quantity contract to consolidate IT services for multiple agencies onto a single network, DoDNet.

With the five-year task order, Leidos will ensure DoDNet is secure, scalable and operational and will offer cybersecurity support, systems engineering, network architecture and management and technical support. Leidos will also provide a virtual desktop for users, allowing them to access a reliable network on any device, according to a news release. 

The work will expand support from 30,000 users to more than 160,000 users, including users at 14 agencies that provide functions critical to military services. When complete, DoDNet will support about 370,000 users. 

Leidos provides technology, engineering and science services to defense, intelligence, civil and health market customers. It has about 47,000 employees and reported approximately $15.4 billion in 2023 revenue.

L3Harris announces $41.2M Orange County expansion

Florida-based aerospace and defense contractor L3Harris Technologies announced on Thursday a $41.2 million expansion and modernization of its Aerojet Rocketdyne facility in Orange County, with plans to add 80 employees. 

Over the next three years, L3Harris also plans to construct new facilities and buy new equipment for the facility, according to a statement from the company and another by Virginia Gov. Glenn Youngkin. “Our country’s security depends on defense manufacturers like L3Harris, and we are proud that this long-term corporate partner continues to reinvest in Virginia,” Youngkin said in a release. 

California-based Aerojet Rocketdyne, which makes propulsion and power systems for everything from rockets to space vehicles to strategic missiles, was acquired by L3Harris in 2023 in a $4.7 billion deal. Aerojet last invested $11 million in expanding the Orange facility in 2015, adding 100 jobs.

Aerojet’s Orange County facility, which has been in operation for more than 40 years, focuses on the manufacture, testing and development of complex rocket propulsion systems. According to the Department of Defense, the rocket motor systems “propel DOD missiles and missile defense interceptors, along with space launch vehicles and national security satellites used in civil and commercial applications.”

The majority of the Orange County expansion’s funding comes from $215.6 million in federal funding from the 2023 Additional Ukraine Supplemental Appropriations Act, which is helping supply weapons and other aid to Ukraine in its war against Russia. 

According to an April 14 DoD release, the funding, which was provided through DOD’s Office of Manufacturing Capability Expansion and Investment Prioritization, is aimed at strengthening the supply chain for solid rocket motors. It will be used “to modernize manufacturing processes at the company’s facilities [in Orange County as well as Arkansas and Alabama], consolidate production lines, purchase equipment, build systems to process data, and increase production and delivery speed for Javelins, Stingers, and the Guided Multiple Launch Rocket System.” 

“We have been a part of the Virginia community for decades and look forward to growing our talented workforce here as we produce the vital propulsion that helps protect our nation and its allies,” Aerojet Rocketdyne President Ross Niebergall said in a statement. 

Virginia’s state government and Orange County are contributing a combined total of about $2.18 million in incentives for site improvement and construction, according to L3Harris. 

A statement from a spokesperson for L3Harris was quoted in several Florida news outlets last week, explaining that the company had made the “difficult decision to ‘rightsize’” its workforce, cutting as part of the company’s announced initiative to save more than $1 billion over the next three years. A request for comment on how the Orange County expansion fits into that decision was not immediately returned by L3Harris or the governor’s office. 

L3Harris Technologies formed in 2019 through a merger between L3 Technologies and Harris Corp. Today, L3Harris has 50,000 employees and is one of the top 10 defense contractors in the United States. L3Harris reported $19.4 billion in revenue in 2023, up 14% over 2022. 

The Virginia Economic Development Partnership worked with Orange County and the Central Virginia Partnership for Economic Development to secure the project for Virginia.

The Aerospace Corp. relocates HQ to Chantilly

The Aerospace Corp., a nonprofit government contractor that bills itself as running the nation’s only federally funded research and development center “committed to the space enterprise,” officially relocated its headquarters from El Segundo, California, to Chantilly on Thursday.

The organization, which provides technical expertise in space-related science and engineering, has no plans for “significant relocation” of its more than 4,600 current employees, according to a news release, and the 2,800 employees currently in El Segundo will remain there.

According to an Aerospace spokesperson,  the company has more than 750 employees based in Chantilly plus 1,000 employees based in various locations in the Washington, D.C. area.

“By shifting our headquarters to the Washington, D.C., metro region, we will deepen our ties with key decision makers and stakeholders, and reaffirm our commitment to working side-by-side with our partners as they carry out our nation’s critical missions,” Steve Isakowitz, Aerospace’s president and CEO, said in a statement.

As the space industry has changed in recent years — including growth in U.S. government and commercial space investment, the establishment of the U.S. Space Force in 2019 and the reinstatement of the U.S. Space Command, which is responsible for preparing military operations in space — Aerospace’s technical support has shifted “from traditional functions to emerging needs,” according to a news release.

“Aerospace has taken a leading position navigating through this change as we accelerate our efforts to outpace the threats we face in space,” Isakowitz said.

Aerospace provides technical solutions for space mission needs and research and strategic analysis on national policy related to space, and it tests, analyzes and troubleshoots rocket and satellite systems. The organization’s customers include the U.S. Department of Defense, the intelligence community, NASA and other civil agencies.

Aerospace is investing $100 million in its engineering, research and laboratory capabilities at its main engineering and technology campus in El Segundo. The company also has major locations in Albuquerque, New Mexico, and Colorado Springs, Colorado.

Editor’s note: An earlier version of this article listed an incorrect number of employees working for Aerospace in California. This story has been updated with the correct number.

Editor’s note: This story has been updated with information about Aerospace’s Virginia and Washington, D.C., workforce.

Propulsion system

Madeline Davis has never set foot on a Navy submarine, so she doesn’t get to see the products she makes in action.

Davis is a CNC (computer numerical control) machinist at Fairlead Integrated in Portsmouth, where she makes metal parts for the Navy’s silent service. The defense contractor supplies shipboard integrated parts, including for the Navy’s Virginia- and Columbia-class nuclear submarines. Davis has worked in her position since May 2022, after she completed a 16-week CNC machining program that March at the Accelerated Training in Defense Manufacturing Program, a Navy-funded, three-year pilot program managed by the Institute for Advanced Learning and Research in her native Danville.

“It taught me exactly what I needed to know,” Davis, 22, says of her experience.

About 200 miles from the sea service’s largest base — Naval Station Norfolk — the program is helping transform Danville from a textile town into a critical player in national security.

ATDM, a public-private partnership between IALR, Danville Community College, the Navy, the Department of Defense and industry stakeholders, is seen as a crucial pipeline to train workers who will be essential to the nation’s defense, particularly in producing parts to repair, upfit, and build nuclear-powered nuclear-powered submarines, in coming decades. In addition to CNC manufacturing, ATDM offers four-month tracks in additive manufacturing, quality control inspection — also known as metrology — and welding. Nondestructive testing (a process by which a material is evaluated without causing damage) was added in January. With ATDM, the Navy is seeking to help meet workforce demands by condensing into four months what might otherwise take a year or two to learn.

The Navy’s nuclear submarine industrial base, which includes 17,000 suppliers and two main shipyards, including Newport News Shipbuilding, expects to need to hire as many as 100,000 workers in the next decade just to build new submarines, says Whitney Jones, who manages the program for Naval Sea Systems Command.

“That is just to build new construction submarines, not the rest of the Navy, not in-service sustaining and service platforms,” Jones says. “It’s a huge number. And when we looked at that number, we were like, OK, technology and the scale of technology is not a nice-to-have; it is an absolute imperative that we go do that.”

ATDM started training its first students in July 2021. As of May, it has produced 217 graduates, says director Debra Holley. Starting this year, it will ramp up to train 528 students, with a goal of graduating 800 to 1,000 students each year by fiscal 2025. For now, students attend the program without charge — though some may be sent by their employers for upskilling while being paid. They also receive free housing and transportation in Danville.

The program recruits nationally and, in addition to the general population, has recruiters who focus on transitioning military members and Afghan refugees who have evacuated to the United States, Holley says. About half of the participants, however, learned about the program through word of mouth, including Davis, who previously worked in retail. Another recent participant came from Texas, where she worked at a convenience store. “She heard about us … came up here, went through our program and then went to the Norfolk Naval Shipyard as a welder,” Holley says.

After applying online, applicants are interviewed and then reviewed by a committee, Holley says. While previous experience isn’t required, motivation is key, she says, adding that the program has recently received about three applications for every available slot.

The Navy-funded Accelerated Training in Defense Manufacturing Program is producing skilled manufacturing workers needed for projects such as building nuclear-powered submarines. Photo by Jamie Nabers, Boss Motion Picture Co.

Dropping anchor

ATDM, which currently has 25 staff members, including 10 instructors, announced plans in early March to fill an additional 38 positions, including 24 instructors, through late summer as it prepares for growth. It plans to hire even more support staff, including recruiters and employment outreach personnel, within the next year. Classes are currently held at IALR and have also previously been taught at DCC. The program is anticipated to move to a new, 100,000-square-foot facility in 2024. The $56 million ATDM Regional Training Center is being funded through a Navy partnership with the DoD’s Industrial Base Analysis and Sustainment program.

As of March, about 45 of ATDM’s 217 graduates have remained in Virginia for work, including some machinists and welders who have been hired by Newport News Shipbuilding, a division of Newport News-based Fortune 500 contractor Huntington Ingalls Industries Inc. The shipyard plans to fill 2,200 skilled trade positions this year and anticipates hiring as many as 19,000 more during the next decade, says shipyard spokesperson Todd Corillo. The nation’s largest builder of military ships is “committed to continuing our participation in future cohorts,” Corillo says, adding it encourages its suppliers in Southern Virginia to take advantage of the program for their hiring needs.

As ATDM grows, so too does another Navy investment in the region. In October 2022, the Navy opened its Additive Manufacturing Center of Excellence (AM CoE) within IALR’s Center for Manufacturing Advancement. That center, adjacent to the future Regional Training Center, is working with industry and academia to grow the Navy’s industrial supplier base by establishing production-ready manufacturing standards and qualifications for 3D-printed submarine parts.

The Navy sees 3D printing as a crucial technology, and it has been testing components for several years. During 2018 and 2019, a metal drain strainer produced by Newport News Shipbuilding was prototyped aboard the Norfolk-based aircraft carrier USS Harry S. Truman. The shipbuilder has subsequently been certified by the Navy to use some 3D-printed metal parts on carriers and submarines.

The Navy’s current supply chain can take as long as 18 months to come up with a crucial part, leading to delays in construction and repair, says Troy Simpson, a member of The Spectrum Group, which is working with ATDM and the AM CoE.

Simpson, who also formerly directed ATDM, says the AM CoE has the potential to turn Danville into the “Silicon Valley” of additive manufacturing.

Given the Navy’s needs and its investments in Danville, it appears to have dropped anchor in the region for the long term. Holley says the program is researching a tuition model if necessary. Jones says the Navy no longer sees the program as a pilot.

“I cannot overemphasize the importance of what we’re going to do down there … [for] national security,” Jones says.  

SAIC wins $889M defense contract

Reston-based Science Applications International Corp. (SAIC) has won an $889 million contract to develop and implement an information technology solution for the Defense Counterintelligence and Security Agency’s systems, SAIC announced Tuesday.

As the prime contractor, SAIC will develop One IT, an enterprise IT solution with an adaptable infrastructure and customer support. The company’s work will include planning and systems architecture development; network, database and storage engineering; service desk support; and cybersecurity.

“As the Defense Counterintelligence and Security Agency transforms security work around the globe, SAIC looks forward to advancing support for user communities,” Michael LaRouche, president of SAIC’s national security and space sector, said in a statement. “Our goal is to enhance efficiency and effectiveness of the agency’s One IT infrastructure by leveraging the experience of our proven team of cloud architects, modernization engineers and integration specialists.”

The contract has one base year and four one-year extension options.

SAIC employs approximately 25,000 people and reported $7.4 billion in fiscal year 2022 revenue.

ASRC Federal buys Manassas defense contractor

Reston-based ASRC Federal Holding Co. has acquired Manassas-based defense contractor Broadleaf Inc., ASRC announced Monday.

Financial details of the transaction were not disclosed.

Founded in 2009, Broadleaf is a U.S. Small Business Administration Certified Native Hawaiian Organization. The company provides information technology services and professional services. Broadleaf was No. 977 on the 2022 Inc. 5000 list of the U.S.’s fastest-growing privately held companies.

“Broadleaf is thrilled to join the ASRC Federal family,” Broadleaf President Vince Apesa said in a statement. “Our team is passionate about driving mission success for our customers, and we look forward to joining forces with the depth of resources and talent available at ASRC Federal to provide even greater value to those we serve.”

Nearly 600 Broadleaf employees will join ASRC Federal, and the acquisition adds Department of Defense and federal civilian customers to ASRC Federal’s portfolio.

“This acquisition strengthens and expands our presence within key [DOD] agencies while also providing growth opportunities with new customers,” ASRC Federal President and CEO Jennifer Felix said in a statement. “I know the high-performing team at Broadleaf will blend seamlessly with the ASRC Federal culture, and together we’ll continue to excel in the support of important customer missions.”

The Broadleaf acquisition follows a March announcement that ASRC Federal would buy Reston-based Science Applications International Corp.’s logistics and supply chain management business for $350 million in cash.

ASRC Federal is a federal government services subsidiary of Arctic Slope Regional Corp., an Alaska Native corporation. Its family of companies provides engineering, IT, infrastructure and professional services support. ASRC Federal has about 8,000 employees and operations across 44 states, districts and territories.

ASRC Federal to pay $350M for SAIC’s logistics biz

Reston-based Science Applications International Corp. (SAIC) has agreed to sell its logistics and supply chain management business to Reston-based ASRC Federal Holding Company LLC for $350 million in cash, both companies announced Thursday.

About 240 SAIC employees will transition to ASRC Federal upon completion of the deal, which is expected to close in spring 2023.

“Today’s announcement represents a milestone in SAIC’s priority to shape our portfolio and advance our strategy,” SAIC CEO Nazzic Keene said in a statement. “The agreement allows for seamless transition and continued support for the logistics and supply chain management business and their important customer missions, while enabling SAIC to concentrate resources in our growth and technology accelerant areas of focus. These areas include secure cloud, enterprise IT and systems integration and delivery, which now account for more than 30% of SAIC revenue.”

SAIC’s logistics and supply chain solutions are used by the Defense Logistics Agency, which provides services to Department of Defense agencies, including the Army, Air Force and Navy. The business is a “natural fit” for ASRC Federal’s base operations support, which provides procurement, logistics and warehousing services at military locations throughout the company, ASRC said in a news release.

“This acquisition provides another channel for growth by further diversifying our robust set of capabilities,” ASRC Federal President and CEO Jennifer Felix said in a statement. “I am excited to welcome this mission-focused team who has earned a best-in-class reputation for delivering innovative solutions to their customers. Their work directly impacts the readiness of America’s warfighters, and they will bring tremendous capability to both new and existing ASRC Federal customers.”

ASRC Federal is a federal government services subsidiary of Arctic Slope Regional Corp., an Alaska Native corporation. SAIC employs more than 25,000 people and reported $7.4 billion in revenue in fiscal 2022.

HII taps former DOD chief of staff as EVP

Eric Chewning, who was chief of staff for two acting defense secretaries in the Trump White House, became Newport News-based Fortune 500 shipbuilder Huntington Ingalls Industries Inc.’s executive vice president of strategy and development on Monday.

Chewning will guide corporate strategy and identify opportunities for growth, cross-division collaboration and potential investment. He reports directly to HII President and CEO Chris Kastner.

“HII is an exceptional defense partner, with a storied 135-year history of providing essential capabilities for America’s and allied warfighters. … I am honored and excited to join this driven and committed leadership team,” Chewning said in a statement.

Chewning was most recently the Americas co-lead for McKinsey & Co.’s aerospace and defense practices. From 2017 to 2019, he served as deputy assistant secretary of defense for industrial policy, and from 2019 to 2020, he was chief of staff for Mark Esper and Patrick Shanahan, who were acting defense secretaries.

Chewning enlisted in the Army after 9/11 and is a former military intelligence officer and an Operation Iraqi Freedom veteran. Before enlisting, Chewning was an investment banker at Morgan Stanley, where he focused on corporate finance and global industrial sector mergers and acquisitions.

He has an MBA from the University of Virginia’s Darden School of Business, as well as a master’s degree in international relations and a bachelor’s degree with honors from the University of Chicago. He is a life member of the Council on Foreign Relations.

HII is the country’s largest military shipbuilder, and its Newport News Shipbuilding division is the nation’s only manufacturer of nuclear-powered aircraft carriers. The company has 43,000 employees and posted $10.54 billion in annual revenue for fiscal 2022.