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Tag: government contractor

ICF acquires SemanticBits for $220M

Fairfax-based management consulting firm ICF International Inc. announced Thursday it had completed its $220 million acquisition of health tech contractor SemanticBits.

In June, ICF announced it had entered into a definitive agreement to acquire the Herndon-based company, and that its existing credit facility would fund the $220 million transaction.

“As one of the industry’s leading digital service and platform providers using open-source, SemanticBits scales our rapidly growing set of digital modernization capabilities and, together with our deep federal health expertise, will enable ICF to support larger, more complex projects across federal civilian agencies,” ICF CEO and Chair John Wasson said in a statement.

Founded in 2005, SemanticBits provides scalable digital modernization solutions to federal health agencies, including the Centers for Medicare & Medicaid Services, the U.S. Food and Drug Administration and the federal Department of Veterans Affairs. The company has 450 employees.

“We are excited to join ICF and offer our civilian agency clients advanced health IT technology and data science solutions informed by deep domain expertise,” SemanticBits CEO Ram Chilukuri said in a statement. “Together, we can scale our ability to support federal agencies and help unlock new health insights.”

ICF expects SemanticBits to generate approximately $135 million in 2022 revenue and expects about $115 million of that to recur in 2023, according to a news release.

This transaction is the latest of three for ICF, which in January completed its acquisition of McLean-based IT federal contractor Creative Systems and Consulting, adding 270 employees. In November 2021, ICF acquired ESAC Inc., a Rockville, Maryland-based data management and health care IT provider, gaining 40 employees.

Founded in 1969, ICF has about 8,000 employees across more than 75 offices. The firm reported $1.55 billion in 2021 revenue, an increase of 3.1% from its 2020 revenue.

Booz Allen Hamilton launches $100M VC fund

Booz Allen Hamilton Inc. has formed a $100 million corporate venture capital arm, the McLean-based Fortune 500 global management consultancy announced Wednesday.

Named Booz Allen Ventures LLC, the arm will invest in early-stage companies and technologies across four categories: defense, artificial intelligence/machine learning, cybersecurity and deep technology.

“We are proud and excited to continue our work with the best startups to support our U.S. government clients,” Booz Allen Chief Technology Officer Susan Penfield said in a statement. “The ability to navigate bigger, faster technology waves and identify the right emerging technologies for their mission needs, as well as our own, is vital to enabling growth and mission speed.”

Booz Allen Ventures will help the company expand its tech scouting program, sourcing and recommending tech investments focused on mission-specific applications, according to a news release.

Booz Allen employs approximately 29,500 workers globally, with about 10,000 employed in Virginia. For the 12 months ended March 31, Booz Allen reported revenue of $8.4 billion.

Northrop Grumman division lands $458M Navy contract

A division of Falls Church-based Northrop Grumman Corp. won a $458 million contract to support the Navy’s Columbia and Dreadnought Fleet Ballistic Missile Program, the U.S. Department of Defense announced Friday.

Under the cost-plus-incentive-fee and cost-plus-fixed-fee contract, Northrop Grumman’s Marine Systems in Sunnyvale, California, will provide fiscal 2022 through 2026 shipyard field operations, program management, systems engineering, documentation, logistics and hardware production activities.

The Columbia class of ballistic missile submarines will include 12 submarines designed to replace the 14 Ohio-class submarines. Ballistic missile submarines provide a launch platform for intercontinental missiles.

Work is expected to be completed Nov. 30, 2027, and will primarily take place in California. About 4% of the work will be performed in Washington, about 3% in Florida, 0.8% in Maryland, 0.5% in Georgia and about 3% in the United Kingdom.

A Fortune 500 defense contractor, Northrop Grumman employs roughly 90,000 people worldwide and reported $35.67 billion in 2021 revenue. In March, the company won two contracts worth nearly $200 million for Navy projects.

McLean-based ID.me lays off 54 workers

McLean-based tech company ID.me Inc. has laid off 54 employees, months after the Internal Revenue Service — among other government agencies — said it would drop its plan to require taxpayers to submit to facial recognition via ID.me’s software.

Fifty-four employees lost their jobs, according to the Worker Adjustment and Retraining Notification Act, which is posted on the Virginia Employment Commission’s website. The notice says the date of notice and the date of impact for the layoffs was June 7.

“ID.me is grateful for all those who have joined in our mission of making identity verification easier and more secure in an equitable and accessible fashion. As ID.me progresses, we continue to look for ways to reduce redundancy and streamline our processes through technological innovation. While we are not commenting on individual personnel changes at this time, we can assure you that no Trusted Referees were let go,” an ID.me spokesperson said in a statement.

A “trusted referee” is a video chat agent who confirms identity.

“With economic headwinds beginning to be felt across many industries, as good stewards of our company we must position ID.me for long-term success. ID.me is committed to investing its resources wisely to ensure its customers continue to be properly served,” the statement continued.

Founded in 2010 as TroopSwap, ID.me works with 10 federal agencies, including Social Security and Veterans Affairs, and 30 states, in addition to more than 500 retailers.

In April, The Washington Post reported that the House Committee on Oversight and Reform opened an investigation into the efficacy and security of ID.me’s software. Lawmakers wrote a 10-page letter to the company’s CEO requesting detailed records about its contracts with federal, state and local governments, as well as asking the company to provide answers about how it investigates potential inaccuracies in its systems, The Post reported.

In late April, a Treasury official said, “Both Treasury and the IRS are committed to transitioning away from ID.me as soon as possible,” The Wall Street Journal reported.

Two govcons to merge, move HQ to NoVa

Colorado-based government contractor Vectrus Inc. and Mississippi-based The Vertex Co. will merge to form a company that will be based in Northern Virginia.

Vectrus shareholders approved the all-stock merger, expected to close in the third quarter of 2022, on Wednesday. The combined company will be named V2X Inc. and will trade on the NYSE under the ticker VYX. Vectrus shares currently trade under the ticker VEC. At 4 p.m. Friday, Vectrus shares were trading for $31.73, a drop of about 0.94% from its cost at opening.

“Today’s overwhelming approval marks a significant step toward completing our merger with Vertex, and creating one of the leading providers of critical mission solutions and support to defense clients globally,” Vectrus CEO Chuck Prow said in a statement.

The new company headquarters will be in what is currently a Vectrus’ office at 7901 Jones Branch Drive in Tysons.

The combined company will have 2021 pro forma revenue of about $3.4 billion and an adjusted EBITDA of about $283 million. Under the agreement, Vertex shareholders will own approximately 62% of the combined company on a fully diluted basis. Vectrus shareholders will own approximately 38%.

Prow will serve as CEO of V2X, and Vectrus Chief Financial Officer Susan Lynch will serve as V2X’s CFO. The V2X Board of Directors will have 11 members, six from the current Vectrus board (including Prow) and five from Vertex, including Vertex President and CEO Ed Boyington.

Vectrus has about 8,100 employees across 205 locations in 28 countries. In 2021, the company reported $1.78 million in revenue.

Vertex provides turnkey lifecycle support for government and commercial clients and has about 6,000 employees across 125 locations. Private equity firm American Industrial Partners’ Capital Fund VI LP is the majority owner of Vertex. The company rebranded from Vertex Aerospace in March. In December 2021, Vertex acquired Raytheon Technologies’ Defense Training and Mission Critical Solutions segments.

Carlyle Group to acquire ManTech for $4.2B

Herndon-based ManTech International Corp. has entered into a definitive agreement to be acquired by The Carlyle Group for approximately $4.2 billion, the tech contractor announced Monday.

In the all-cash transaction, ManTech shareholders will receive $96 per share in cash, a 32% premium to ManTech’s closing share price of $72.82 on Feb. 2, which was the last trading day before news articles of a potential agreement broke. The cash per share is also a 17% premium to the closing stock price of $81.97 on May 13.

“We have always admired ManTech’s unwavering commitment to support national security customers and their critical missions through differentiated capabilities and technology solutions,” Dayne Baird, managing director on Carlyle’s Aerospace and Government Services team, said in a statement. “ManTech’s talented employees and leadership team have built a remarkable company with strong market positions across the federal government.”

The ManTech Board of Directors unanimously approved the transaction, which is expected to close in the second half of 2022. Stockholders with shares representing 49.2% of the current outstanding voting power of the ManTech common stock have entered into an agreement to vote their shares in favor of the transaction.

ManTech Chairman, CEO and President Kevin M. Phillips said in a statement, “Following a comprehensive review of strategic alternatives, our board determined that this transaction is in the best interest of our shareholders and provides them with the most compelling value maximization outcome, offering liquidity at a significant premium. We look forward to leveraging Carlyle’s deep knowledge and experience investing in and growing companies, as we deliver stronger outcomes for our customers and increased opportunities for our employees.”

Founded in 1968, ManTech provides technology solutions for U.S. defense, intelligence and federal civilian agencies. In 2021, the Fortune 1000 company reported $2.55 billion in revenue. In December 2021, ManTech announced it had completed its $350 million acquisition of Gryphon Technologies.

As of March 31, Carlyle managed $325 billion of assets. The investment firm employs almost 1,900 people in 26 offices across five continents. Gov. Glenn Youngkin formerly served as co-CEO of The Carlyle Group before retiring in 2020 to mount his campaign for governor.

Avantus Federal acquires N.C. tech firm

Avantus Federal has acquired North Carolina-based tech contractor Far Ridgeline Engagements (FRLE), the McLean-based IT defense contractor announced last week.

Financial details of the transaction were not disclosed.

“For almost 15 years, Far Ridgeline Engagements has earned eminence by maintaining a strong focus on providing solutions to our nation’s special operations and intelligence missions critical in strengthening peace and security in today’s global threat and technology environment,” Avantus CEO Andy Maner said in a statement. “This next phase of our growth will enhance our customers within the special operations and intelligence communities in need of the best tailored expertise and solutions.”

Founded in 2007, FRLE provides tailored operational, training and technical solutions, primarily supporting special operations.

“Partnering with Avantus over the past few years gave us a great appreciation for the cultural fit with FRLE,” FRLE CEO Brendan Hess said in a statement. “Merging our culture, values and capabilities provides an excellent opportunity to better serve our employees, clients and partners in the years to come.”

Private equity firm NewSpring Holdings bought Avantus Federal in October 2020, when McLean-based defense contractor E3/Sentinel LLC announced it would operate under the Avantus Federal name. Avantus had operated as E3/Sentinel since 2018, following the merger of E3 Federal Solutions and The Sentinel Co.

Avantus provides data, cyber and space services and solutions to defense, intelligence, Homeland Security and federal civilian customers. Post-acquisition, the company has 1,200 employees.

Leidos wins $545M biomedical research contract

Reston-based Fortune 500 government contractor Leidos Holdings Inc. won a potential $545 million contract to support biomedical research for the National Institute of Allergy and Infectious Diseases (NIAID), the company announced Wednesday.

Under the seven-year, indefinite delivery, indefinite quantity contract, Leidos will provide services including chemistry manufacturing and control, non-clinical research, analytics, computational biology, biostatistical services and other duties for the institute, which is led by Dr. Anthony Fauci, the nation’s leading expert on contagious diseases.

“Leidos is proud to support NIAID and provide world-class innovations to treat and prevent infectious, immunologic and allergic diseases,” Liz Porter, Leidos Health Group president, said in a statement. “For more than two decades, Leidos has supported the U.S. biomedical research community. We are pleased to continue this journey and provide robust biomedical research to reinforce NIAID and its important mission.”

The NIAID, National Institutes of Health, and the U.S. Department of Health and Human Services will fund the project in whole or in part.

Leidos provides technology, engineering and science services to defense, intelligence, civil and health markets. The company employs 43,000 people and reported $13.74 billion in 2021 revenue.

HII division announces new VP of infrastructure and sustainability

Newport News-based Fortune 500 military shipbuilder HII announced Wednesday that Eric Crooker is the new  vice president of infrastructure and sustainability at its Pascagoula, Mississippi-based Ingalls Shipbuilding division.

In this role, Crooker will focus on compliance and enterprise risk management along with overseeing environmental; health; safety and security; and facilities and maintenance elements. His team will oversee environmental, social and governance expectations.

“I am pleased to announce this strategic alignment of several of the most critical elements of our business,” Ingalls Shipbuilding President Kari Wilkinson said in a statement. “The purpose of this organizational shift is to increase the collaboration between the teams already ensuring the health and protection of our people and our shipyard, and to enable sustainability for future generations of shipbuilders to come.”

Crooker has been with Ingalls for 10 years and worked in operations, facilities, legal and security. He previously worked in corporate law, compliance, emergency preparedness and crisis management.

He is a second-generation shipbuilder and holds a bachelor’s degree in economics and a law degree from Tulane University.

Northrop Grumman secures $252M Marine Corps contract

Falls Church-based Fortune 500 defense contractor Northrop Grumman Corp. landed a $252 million contract to produce and test a handheld precision ground targeting system for the U.S. Marine Corps, the Department of Defense announced Thursday.

Under the hybrid, follow-on contract, Northrop Grumman will work on the Next Generation Targeting Handheld System, a lightweight, man-portable system that allows Marines to acquire and locate targets as well as perform guidance against them. The contractor will also provide spare parts, engineering services, logistics support, training and documentation.

Work is expected to be completed by February 2030 and will be performed in Apopka, Florida.

The contract is a follow-on to the NGHTS Other Transaction Authority Agreement (OTA) prototyping effort. In September 2018, the service awarded OTAs to Northrop Grumman, Arlington-based BAE Systems Inc., Texas-based Elbit Systems of America LLC and Pennsylvania-based Fraser Optics LLC.

Northrop Grumman employs roughly 97,000 people worldwide and reported $35.67 billion in 2021 revenue.