Please ensure Javascript is enabled for purposes of website accessibility

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.

Derivatives exchange company to create 37 jobs in Fairfax

Tysons-based derivatives exchange company Nodal Exchange will invest $300,000 to expand its Fairfax County headquarters, creating 37 jobs, Gov. Glenn Youngkin announced Thursday.

The company will increase capacity at its headquarters, located at 1921 Gallows Road in Tysons.

“Nodal Exchange offers the largest suite of power and environmental contracts in the world, and we are proud that this Virginia-grown business manages risk in such a critical market, resulting in impressive growth at its headquarters in Fairfax County,” Youngkin said in a statement.

Founded in 2007, Nodal Exchange is part of EEX Group, a group serving international commodity markets. Nodal Exchange offers more than 1,000 power contracts. The company also offers natural gas and environmental contracts, and its wholly-owned subsidiary, Nodal Clear, is registered with the Commodity Futures Trading Commission as a derivatives clearing organization.

“Nodal Exchange was founded in Fairfax County, Virginia, which we believe is an ideal location for attracting and retaining an outstanding professional team necessary for operating a derivatives exchange and clearing house. … It is a wonderful location with a highly educated and diverse workforce,” Nodal Exchange and Nodal Clear Chairman and CEO Paul Cusenza said in a statement.

The Virginia Economic Development Partnership worked with the Fairfax County Economic Development Authority to secure the project for Virginia. The VEDP will support Nodal Exchange through the Virginia Jobs Investment Program, which provides consultative services and funding to support employee recruitment and training to companies creating jobs.

Raytheon moving global HQ to Arlington

Raytheon Technologies Corp. announced Tuesday that it will relocate its global headquarters from Massachusetts to Arlington in the third quarter of this year, a move that will see four of the top five U.S.-based aerospace and defense contractors headquartered in Virginia. Raytheon is the second-largest defense company in the world, just below Lockheed Martin, and will be the commonwealth’s largest aerospace and defense contractor.

Raytheon’s new corporate headquarters will be in Arlington’s Rosslyn neighborhood, near  company’s existing Raytheon Intelligence & Space business located there. Raytheon has not sought or accepted financial incentives from the state, it said in a release. A spokesperson said that Raytheon expects to “slightly expand the scope of our existing leased space in Arlington,” where 130 corporate staff members currently work. Chris Johnson, senior director of global media relations, said that the company does not expect its corporate staff to increase significantly as a result of the move.

“I commend Raytheon Technologies’ leadership and pledge that Virginia is committed to being a partner in their mission to build a safer, more connected world,” Gov. Glenn Youngkin said in a statement. “With four of the top five major U.S. aerospace and defense leaders now based in Virginia, [Raytheon’s] decision to headquarter in Arlington demonstrates the commonwealth is the best destination for the aerospace and defense community.”

Raytheon has 600 facilities in 44 states and territories, and all four of its business units have operations in Virginia, where it has more than 1,000 employees and is a top employer in Loudoun County and Falls Church. The company, which employs more than 180,000 people worldwide, reported $64.38 billion in 2021 sales. Raytheon Technologies formed in 2020 following the merger of Raytheon Co. with the aerospace business of United Technologies Corp.

Raytheon’s announcement comes after The Boeing Co. said in May that it would move its global headquarters from Chicago to Arlington. The world’s third-largest defense contractor joins Falls Church-based Northrop Grumman Corp. and Reston-based General Dynamics Corp., which rank fourth and fifth respectively among the world’s largest defense contractors.

Raytheon Chair and CEO Gregory J. Hayes was elected chairman of Raytheon’s board in 2021 and worked for nearly 21 years at UTC in several senior roles across finance, corporate strategy and business development. He was appointed UTC CEO in 2014 and named chair in 2016 and led UTC’s reshaping into a company focused on aerospace, spinning off Otis Elevator Co. and Carrier Global Corp. in 2020. He led UTC’s merger, including its remaining aerospace businesses, Pratt & Whitney and Collins Aerospace Systems, to form Raytheon Technologies in April 2020. Hayes received his bachelor’s degree from Purdue University, in Indiana, and is a certified public accountant.

“We are thrilled to welcome Raytheon Technologies’ global headquarters to Virginia, America’s corporate hometown,” Virginia Economic Development Partnership President and CEO Jason El Koubi said in a statement. “Raytheon and other leading firms are attracted to the commonwealth’s world-class talent, dynamic industrial and innovation ecosystem, strategic location, global connectivity and exceptional quality of life. Raytheon Technologies’ global headquarters location will reinforce strategic partnerships and further strengthen Virginia’s aerospace and defense ecosystem in areas like avionics, cybersecurity, directed energy, electric propulsion, hypersonics and quantum physics. We look forward to a continued partnership with Raytheon Technologies as we begin this exciting new chapter.”

Shannon Flanagan-Watson, interim director for Arlington Economic Development, said, “Raytheon’s announcement, as well as that of Boeing last month, show that more companies are choosing Arlington for their headquarters. Our skilled, highly-educated workforce, key investments in public infrastructure and our exceptional tech ecosystem are factors companies desire when locating a company. We welcome Raytheon’s global headquarters and look forward to their continued presence in Arlington.”

Raytheon Technologies traces its origins to the 1922 founding of Raytheon Co. in Cambridge, Massachusetts. Raytheon became the supplier of magnetron tubes, essential in the Britain’s air defense, to the Allies during World War II. Today, Raytheon businesses provide the U.S. Navy’s F/A -18 fighter jets with precision weapons, radars, sensors and other systems.

In April, Raytheon Missiles & Defenses received a $483 million contract from the Navy to activate, sustain and modernize the service’s fleet of three Zumwalt class of guided missile destroyers. The contract includes options that, if exercised, will total $1.68 billion over five years. The contract also includes additional design, integrations, test and evaluation and other services for the Zumwalt, a stealth destroyer that has been beset by development problems.

Raytheon manufactures Stinger anti-aircraft missiles, which the U.S. is providing to Ukraine in its defense against invading Russian forces. In May, Raytheon won a $624 million U.S. Army contract to produce 1,300 more of the Stinger missiles. The contract is being funded through a provision of the Additional Ukraine Supplemental Appropriations Act.

Bermuda insurer to establish U.S. HQ in Henrico

Bermuda-based Hamilton Insurance Group Ltd. will invest at least $415,000 to establish the U.S. headquarters of its subsidiary in Henrico County, a project estimated to create more than 70 jobs, Gov. Glenn Youngkin announced Friday.

Hamilton’s wholly owned subsidiary, Hamilton Select Insurance Inc., is a commercial insurer that underwrites excess and surplus insurance.

“Henrico County is a great location for specialty insurance companies, and we are excited to welcome Hamilton Select Insurance to that hub,” Youngkin said in a statement. “Greater Richmond offers access to a talent pipeline from the region’s many higher education institutions, and the quality of life attracts and retains a skilled workforce that can serve Hamilton Select’s new U.S. headquarters operation for years to come.”

Founded in 2013, Hamilton underwrites specialty insurance and reinsurance risks through its wholly owned subsidiaries. Hamilton Select targets small-to-midsize accounts in the U.S.

“I’m pleased that we’ve chosen Henrico County as the focal point for establishing Hamilton Select,” said the company’s CEO, Clayton Rhoades, in a statement. “The Richmond region offers a diverse talent pool of experienced insurance professionals, as well as a pipeline of future hires from the world-class colleges and universities across the commonwealth. Virginia provides our employees with an excellent quality of life with access to entertainment and recreation options along with great schools.”

The Virginia Economic Development Partnership worked with the Henrico Economic Development Authority to secure the project. VEDP’s Virginia Jobs Investment Program will provide services and funding to support employee recruitment and training activities.

A hybrid solution

Guidehouse’s leadership had in mind many of the perks that some employees now demand when the global management consulting firm began its search for a new headquarters in 2019.

Those included more flexible spaces, access to the outdoors, and technologies to support remote work and meetings. The firm also was growing. With a substantial workforce already located in Northern Virginia, Guidehouse — a management consultancy formed when Veritas Capital acquired PricewaterhouseCoopers’ public sector arm in 2018 — had also acquired Chicago-based Navigant Consulting.

Access to Guidehouse’s previous D.C.-based home near the White House was becoming untenable with street closures, says Chief Operating Officer Charles Beard. The company needed proximity to federal clients, but it also needed access to an airport to support its global growth. Access to health care was also key.

Washington Dulles International Airport and Inova Health System — for which Beard serves as a board member — were key drivers in Guidehouse’s decision to move its base to Fairfax County. Announced in May 2021, the move includes a $12.7 million investment spread over two floors, representing about 75,000 square feet, at 1676 International Drive in McLean. 

Guidehouse originally forecast the move would bring more than 900 jobs for a total of 1,550 employees headquartered at the new Tysons-area location, but Beard says that number could increase. In October 2021, Guidehouse completed the acquisition of Dovel Technologies, which offers technical services, including data analytics and artificial intelligence, for health, life sciences and public safety clients.

Financial terms of the deal weren’t disclosed, but Beard says Dovel’s acquisition adds about 2,000 employees, some of whom are located throughout the Washington, D.C., metro region and could relocate to the new headquarters. The added workforce gives Guidehouse technical services capabilities, including increased access to the Centers for Disease Control and Prevention and “priority client” the National Institutes of Health. Guidehouse employs more than 10,000 people worldwide.

Not counting data centers, Guidehouse’s move represents one of the largest economic development deals in Northern Virginia for 2021, according to Virginia Economic Development Partnership data. VEDP assisted the county’s economic development authority in securing the project, and Guidehouse is eligible for benefits from the state’s Major Business Facility Job Tax Credit for bringing new, full-time jobs to the commonwealth.

Fairfax County Economic Development Authority President and CEO Victor Hoskins says smaller lease sizes like Guidehouse’s represent a growing trend that the county — and others — are taking note of. Previously, companies would lease about 250,000 to 300,000 square feet for about 1,500 employees. But now, “they’re leasing a lot less space for the same amount of jobs,” Hoskins says.

That seems to be part of Guidehouse’s original design, however. With employees no longer coming into the office five days a week, there was less need for dedicated offices and desks. There are only about 180 desks per floor, and those seats are doubled when counting other collaboration spaces, says Catherine Morrison, Guidehouse’s director of corporate real estate.

What employees did need was collaboration space, and the pandemic accelerated a move toward more adaptive, modular spaces, another area that Guidehouse had already been working on.

Executives describe the new headquarters as more like a branch, a place to support remote work with amenities to visit as needed, “like going to a Starbucks, but a private Starbucks,” Morrison says.

The new office space opened in January, though swing space in the building was available for employees prior to then. Though supply chain issues were a factor, Morrison says, Guidehouse worked closely with contractors, who anticipated delays, to order some materials early.

Hybrid work also can keep people off the region’s busy roads, which fits with the company’s sustainability goals, Beard says, adding he wants people to see the office as a “lifeboat.” He has also touted the headquarters’ proximity to nearby dining and child-care options.

“We’ve all gotten accustomed to meeting with one another virtually and we’ve watched young babies become young toddlers, and we know them by name as much as we know their parents by name,” Beard says. “We don’t want to lose that, so the office space will also be a place for gathering, for bringing our extended work families together on occasion.”  

What will Amazon HQ2 look like? Arlington planners weigh in.

Arlington County Planning Division’s Site Plan Review Committee will review the layout and architectural design for PenPlace, the proposed second phase of Amazon.com Inc.’s East Coast headquarters, as well as the proposed public space, in its Monday night meeting.

Meeting documents show the proposed layout of the Pentagon City site, which puts the would-be 354-feet high Helix building in the 10.4-acre site’s northeast corner.

Diagram courtesy Arlington County Site Plan Review Committee.

The application, submitted by Bethesda, Maryland-based developer JBG Smith Properties, includes three 22-story office towers that would include ground-floor retail space, three retail pavilions ranging from one to three stories, underground parking, a 20,000-square-foot Arlington Community High School, a daycare and 2.5 acres of public space.

The public space proposal includes a central green with an amphitheater setup, an entry and retail plaza at the midpoint of 12th Street, a plaza at about the midpoint of Fern Street that would have food trucks during lunch times, a shaded forest and walk and a dog run.

The architectural changes made after the previous committee meeting include that building heights will vary rather than taper, and that the design will focus on pedestrian movement. The front of retail stores will be in highly visible, high-pedestrian volume spots, such as facing 12th Street, and retail uses will be in building corners.

Additionally, the base — the first to fifth stories — of buildings will be different from the upper levels, either with changes in building materials, terraces and outdoor spaces, changes in plane, building step-backs and/or variation in the architectural design or the façade.

The staff recommendations for the public space are that JBG Smith Properties add greenery to the plazas at Eads and Ferns streets and eliminate redundant pathways to link greenery, and that the developer improve the accessibility of the park’s north entrance on Army Navy Drive. The public space will also have “green ribbons” of planted areas between building fronts and pedestrian paths.

JBG Smith is working with the county’s Department of Parks and Recreation to develop a master plan for the park, which the Arlington County Board will vote on at the same time as the proposed site plan. Before the board votes, the planning commission will review the site plan in a meeting that is yet to be scheduled.

All below renderings courtesy Amazon.com Inc., NBBJ and SCAPE Landscape Architecture DPC.

Peraton to move HQ from Herndon to Reston

Federal contractor Peraton Inc. is moving its headquarters from Herndon to Reston, the company announced Thursday.

Peraton has signed a lease at 1875 Explorer St. in Reston Town Center. It expects to begin operating in the new headquarters by September 2022, after the completion of initial construction phases.

In 2021, Peraton completed both the $7.1 billion purchase of Chantilly federal IT contractor Perspecta Inc. and the $3.4 billion acquisition of Northrop Grumman Corp.’s federal IT and mission support services business, with the backing of Peraton parent company Veritas Capital, a New York-based private equity firm.

After a year of acquiring offices and employees across the U.S. and six months of integration, Peraton is ready to move forward as one company, Peraton Chairman, President and CEO Stu Shea said in a statement.

“Identifying a new headquarters that can be tailored to meet the needs and identity of the new Peraton is of paramount importance in that process,” Shea said. “With the announcement of our new Reston headquarters, we are excited to remain in Northern Virginia, close to our customers as well as a robust and diverse talent pipeline and supported by world-class resources and infrastructure.”

The headquarters will house corporate leadership, major operations for three business sectors and its Mission Capability Innovation Center, which will have physical and virtual working environments and access to Peraton Labs’ Research and Innovation Centers. Peraton will continue major operations at other locations.

In terms of how the move might affect remote work policies, Peraton said in a statement that it will continue to support remote work where it makes sense in the future.

“While we expect that employees will spend more time in the office — including our new headquarters — once we gain the upper hand responding to the COVID-19 variants, we have learned that our employees are extremely effective and responsible while working remotely,” the company said.

Post-acquisition of Perspecta Inc. and Northrop Grumman’s integrated mission support and IT solution business, Peraton has more than 150 offices and is in the middle of a multi-year review of its office footprint. The new headquarters site is the first major decision in that process, according to a news release. The company says 5,000 of its 19,000 employees are based in the Washington, D.C., metro area.

Amazon has hired 3,500 HQ2 workers

Amazon.com Inc. has hired 3,500 of its 25,000 planned workers for HQ2, the tech behemoth’s $2.5 billion East Coast headquarters in Arlington. Meanwhile, construction on the two office towers for HQ2’s first phase, Metropolitan Park, is more than halfway complete, company representatives said during a site tour Wednesday.

Clark Construction Group LLC began work on the exterior facade in September.

 

 

Amazon has added about 500 HQ2 workers since September.

In 2019, the Virginia General Assembly passed an incentive package that would pay Amazon up to $550 million in grants for hitting annual goals toward hiring 25,000 HQ2 workers at a stipulated average annual wage by 2030. The company has about 2,500 positions that it is working to fill immediately, Amazon’s vice president of public policy, Brian Huseman, said Wednesday.

Clark Construction Group LLC Vice President Jeff King said that construction is on schedule for a 2023 completion.

 

 

Virginia Gov. Ralph Northam, who was present for the HQ2 progress tour, said, “We knew coming into our administration that we needed to diversify our economy. We have always been very dependent on the military and government contracting — and we always will be — but to bring in a company like Amazon was a large step moving forward in diversifying our economy in Virginia.”

“Met Park” will have two 22-story office buildings, 50,000 square feet of retail space, a roughly 2-acre park space and a 700-person meeting center that community groups will be able to use for free. The site is set to be completed by 2023, and Bethesda, Maryland-based Clark Construction Group LLC is on schedule for the project, Clark Construction Vice President Jeff King said Thursday.

As of mid-November, roughly 800 local employees are working at the site, Huseman said, and a new floor is constructed every 8 to 10 days. 

Last month, Clark Construction passed the halfway mark on its concrete operations, King said, adding that the company has poured 160,000 cubic yards of concrete since HQ2’s groundbreaking. Crews were working on the 15th level and were preparing to frame level 16 on Wednesday. In September, the contractor started on the exterior facade. King estimates that Met Park as a whole is about 40% finished.

Crews are excavating 10,000 cubic yards of dirt from the 2-acre park in HQ2 that will be open to the public.

The towers will include ground-floor retail space, with Amazon signing two retailers so far: Rako Coffee Roasters and pet care company District Dogs. Amazon anticipates having about seven to 12 retailers, including a child care provider, Amazon Senior Asset Manager Kristin Rincon said. The largest available space for retailers is about 12,000 square feet.

In the park space, crews are currently excavating about 10,000 cubic yards of dirt to make way for underground irrigation and foundation work. The park will include more than 300 trees and 50,000 plants, as well as dog runs, recreation areas, a playground and farmers’ markets.

Amazon HQ2’s proposed second phase, PenPlace, is expected to include three more 22-story buildings and the 370,000-square-foot, distinctively spiral-shaped “Helix” building. Arlington County supervisors will likely vote on whether to approve Amazon’s PenPlace plans in early 2022.

Kristi Smith, executive vice president of development for Bethesda, Maryland-based JBG Smith Properties, said that the developer’s housing portfolio in Amazon HQ2’s National Landing neighborhood now includes 2,586 existing apartments, 800 units under construction and a development pipeline with the potential for 2,500 units. JBG Smith is Amazon’s development partner on HQ2, managing the first phase of HQ2’s construction and leasing existing office space to Amazon for HQ2 workers during construction.

Insurance startup to create 70 jobs with Henrico HQ

Startup specialty property and casualty insurance holding company Richmond National Insurance Co. (RNIC) will create about 70 jobs over the next three years as it establishes its headquarters in Henrico County, Gov. Ralph Northam announced Friday.

“The commonwealth is always looking to create an environment that supports startups and businesses of all sizes,” Northam said in a statement. “Greater Richmond’s world-class higher education institutions, talent pipeline, and quality of life have made the region a hotspot for economic activity. We welcome Richmond National Group to Virginia and look forward to supporting the firm’s future success.”

Holding company Richmond National Group Inc. announced Friday the formation of RNIC. Richmond National is supported by more than $70 million in equity capital from a group of investors including Knoxville, Tennessee-based single-family investment office HF Capital, Charlotte, North Carolina-based investment firm Bonhill Capital, Memphis, Tennessee-based WT Holdings Inc. and the senior management team. The company will spend $175,000 to establish its headquarters.

RNIC provides insurance to small and mid-size businesses and will focus on the excess and surplus line market and target hard-to-place risks. Its affiliates will distribute services through wholesale insurance brokers across the U.S. RNIC underwrites risks in the general casualty, contractors casualty, excess casualty, commercial property, inland marine, professional liability and small business package businesses.

“We chose to start our specialty insurance company in the Richmond area primarily due to its deep talent pool of insurance and financial services professionals and its favorable business environment,” Richmond National Group President and CEO Joseph C. Kavanagh said in a statement.

The Virginia Economic Development Partnership (VEDP) worked with the Henrico Economic Development Authority and the Greater Richmond Partnership to secure the project, for which Virginia competed with Pennsylvania, Maryland and Washington, D.C. The VEDP’s Virginia Jobs Investment program will provide funding to support employee recruitment and training activities.

U.S. Senate Federal Credit Union opens new Alexandria HQ

United States Senate Federal Credit Union (USSFCU) held a grand opening for its Braddock Station corporate headquarters and retail branch in Alexandria on Wednesday.

USSFCU selected 1310 Braddock Place, previously home to the National Industries for the Blind, in 2018. The new Bowman Branch on the first floor replaces the credit union’s Eisenhower Avenue location. It opened to the public on Tuesday. The credit union’s headquarters was also on Eisenhower Avenue, but in a different building.

When it was founded in 1935, USSFCU was headquartered in the basement of the Russell Senate Office Building. In 1983, it moved to the Hart Senate Office Building, then to a standalone facility in Alexandria in the ’90s.

USSFCU named the building for Bertie H. Bowman, its longest-serving board member. Bowman served on the board for 46 years, including two terms as its chairman. Bowman was also a U.S. Senate staffer for more than 65 years. Under his leadership, the union went from a few million in assets to more than $1 billion, according to a news release.

“We are celebrating an incredibly significant time in USSFCU history,” USSFCU President and CEO Tim Anderson said in a statement. “Our mission is to improve the financial wellness of our members by integrating sustainability, security, and service into every solution. This purpose is physically embodied throughout our new home.”

USSFCU serves the U.S. Senate and Capitol Hill communities. It has $1.2 billion in assets.