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Potomac Yard-VT Metro station opens in Alexandria

In its heyday during World War II, Potomac Yard handled freight for six different railroads and employed 1,500 workers to keep trains moving, until it succumbed to economic pressures.

On Friday, after decades of planning, the transformed former rail switching yard opened as Metro’s 98th station, serving the Yellow and Blue lines between the Braddock Road and Ronald Reagan Washington National Airport stops in Alexandria.

“Wherever Metro goes, community grows,” Washington Metropolitan Area Transit Authority General Manager and CEO Randy Clarke said before a crowd of hundreds who gathered at the $370 million station — named for Potomac Yard and Virginia Tech — to mark the occasion. The ceremony concluded a four-year period of construction.

The Potomac Yard-VT station is viewed by the region’s leaders as an economic engine expected to help drive billions of dollars in investment in Alexandria. The station, just two stops away from Amazon.com Inc.’s new HQ2, is arriving where strip retail shopping centers and residential homes have infilled as officials lobbied to build the station, which has been included in planning documents for the neighborhood since the 1970s. Anchored by Virginia Tech’s $1 billion Innovation Campus, which is expected to open in 2024, WMATA forecasts that the station will bring in 26,000 more jobs and 13,000 more Metro riders.

“This has been a one of the most, if not the most anticipated economic development project, for the city in decades,” Stephanie Landrum, president and CEO of the Alexandria Economic Development Partnership, told Virginia Business.

While many elected leaders on hand Friday touted the benefits of Metro for boosting future economic development, U.S. Sen. Mark Warner also used it to rally behind the potential for a new FBI headquarters to move to Northern Virginia. The U.S. General Services Administration is eyeing federally-owned land in Springfield as one potential home for the agency as it seeks to relocate from its current location in Washington, D.C., and Virginia leaders have sparred with Maryland officials over which state is better suited for the building. Two sites in Prince George’s County, Maryland, are also in consideration.

Warner anticipated that at least some of those 13,000 new Alexandria residents “are going to be FBI agents” going to work in Springfield.

“Climb on this station, get to Springfield in about 11 minutes, at most,” Warner said, noting the area’s proximity to “all of the rest of the intelligence community … all across Northern Virginia. It’s going to be a great day.”

A ‘gravy train’ in Alexandria

Among the morning’s many train-related jokes, U.S. Rep. Don Beyer, a Democrat whose district includes the neighborhood, referred to the new station as a “gravy train” for the region, while noting that he would have preferred that it were named “Hokie Nation Station,” a reference to the Virginia Tech campus, which will be the university’s hub for computer science and engineering graduate studies. During construction of the first academic building, students are already attending classes in temporary space in a shopping center.

The combination of Amazon and Virginia Tech’s presences have contributed to more economic development. The Boeing Co. announced in May 2022 that it was moving its headquarters from Chicago to nearby Arlington County, after the company in 2021 gave $50 million to the university to support diversity at the Innovation Campus. Boeing CEO Dave Calhoun is a Tech alumnus.

Virginia Tech President Tim Sands, accompanied by the Hokie bird mascot on stage, said Friday there are about 60,000 Hokies “within a few Metro stops of this site.”

“We have about 1,500 students, faculty and staff that will be here in full buildout over the next several years,” Sands said. “We’ll have research programs up and running; they already have been started, [and] they will connect the technology worlds in this region.”

According to the Alexandria Economic Development Partnership, about 555,000 square feet of commercial space has now been completed near the new station.

In addition to the Innovation Campus, the Institute for Defense Analyses’ 370,000-square-foot headquarters opened in Potomac Yard in January 2022, and the 100,000-square-foot headquarters and training center for the National Industries for the Blind opened in March 2019.

In April 2017, the American Physical Therapy Association’s board voted to purchase land for its new headquarters directly across from the new station after it determined that its previous location, about a mile away on the Potomac River waterfront, needed significant renovations and would be better suited for residential use. The association was attracted to the redevelopment underway at Potomac Yard and in 2020, opened its $70 million, 85,000-square-foot headquarters. APTA CEO Justin Moore told Virginia Business on Friday that five of the association’s workers used the new Metro station that morning.

The association hired about 30 new employees last year, Moore said, and has about 19 current openings. He credits being in a “dynamic neighborhood” with helping the organization’s recruitment efforts, and being close to public transportation fits the organization’s mission of improving health.

“In our old buildings, it was 99% single-car drivers,” Moore said, but with improved Metro access, “we’re already in the 80s.”

The opening of the station, originally set for April 2022, was delayed twice and follows Metro’s $3 billion Silver Line extension, which added six stations toward Dulles International Airport and stretched service to Loudoun County in November 2022. Clarke said 1.5 million passengers have now traveled on the new Silver Line.

Boeing receives $1.2B aircraft development contract

Arlington-based Boeing Co. will develop two E-7 Airborne Early Warning and Control aircraft for the Air Force under a $1.2 billion award announced by the Pentagon Tuesday.

The contract initiates prototype development activities of U.S. variations of the aircraft, which replaces the service’s E-3 aircraft. Work will be performed in Seattle and is expected to be completed by August 2024. The Air Force plans to begin production in fiscal 2025, with the first E-7A expected to be fielded by fiscal 2027, the service said in a news release Tuesday. The Air Force plans to buy a total 26 of the aircraft.

“The E-7A will be the department’s principal airborne sensor for detecting, identifying, tracking, and reporting all airborne activity to Joint Force commanders,” Andrew Hunter, assistant secretary of the Air Force for acquisition, technology and logistics, said in a statement. “This contract award is a critical step in ensuring that the department continues delivering battlespace awareness and management capabilities to U.S. warfighters, allies and partners for the next several decades. The E-7A will enable greater airborne battlespace awareness through its precise, real-time air picture and will be able to control and direct individual aircraft under a wide range of environmental and operational conditions.”

The E-7’s open systems architecture and agile software enable it to evolve and remain ahead of future threats, Boeing said in a news release. The E-7 can track multiple airborne and maritime threats simultaneously with 360-degree coverage using its Multi-role Electronically Scanned Array sensor. The E-7 is based on Boeing’s 737 airliner, and the company said its established supply chain will reduce maintenance and logistics costs while increasing mission readiness.

“The E-7 is a proven platform,” Stu Voboril, Boeing E-7 program vice president and general manager, said in a statement. “It is the only advanced aircraft that is capable of meeting the U.S. Air Force’s near-term airborne early warning and control requirement while enabling integration across the Joint Force.”

Air Forces in Australia, Turkey, South Korea and the United Kingdom each operate E-7 aircraft.

 

Navy awards Boeing subsidiary $463M contract

Fairfax-based Argon ST Inc. has received a $463 million Navy contract to procure and produce sensor components for fielding in manned and unmanned aircraft, the Pentagon announced Friday.

Argon ST is a wholly owned subsidiary of Arlington-based aerospace contractor Boeing Co. Under the contract, Argon ST will procure various Multi-Intelligence Sensor Development (MISD) Sensor Suite components for use in aircraft. The company will also provide engineering support for the Navy, foreign cooperative partners and foreign military sales customers.

According to the Pentagon announcement, 75% of the work will be performed in Fairfax, with the remaining 25% taking place in Germantown, Maryland. Work is expected to be complete in January 2028.

In a February 2021 pre-solicitation notice, Naval Air Systems Command said that Argon ST is “the original designer, developer and manufacturer” of the MISD Low Band Sensor Suites used by the Navy and Army and determined that the company was the only one with the expertise to fulfill its needs.

Founded in 2001, Argon develops command, control communications, computers, intelligence, surveillance and reconnaissance (C4ISR) and combat systems to its clients. Boeing acquired the company, which is a division in the Boeing Defense, Space & Security unit, in August 2010.

Boeing has more than 140,000 employees worldwide. The company reported $62.2 billion in revenue in fiscal 2021.

Boeing defense unit announces leadership shifts, reorganization

Arlington-based Boeing Co. Thursday announced a series of top leadership changes and a reorganization to consolidate its eight divisions within the Boeing Defense, Space and Security unit into four.

Boeing said the changes, effective immediately, are aimed at accelerating its operational discipline, quality and performance and at streamlining senior leadership roles and responsibilities.

According to a news release, there are four new divisions within BDS:

  • Vertical Lift will be led by Vice President and General Manager Mark Cherry.
  • Mobility, Surveillance & Bombers will be led by Vice President and General Manager Dan Gillian. The division includes the KC-46, SAOC, E-7, VC-25B, P-8, Bombers, AWACS/AEW&C, 777X components and executive transport programs.
  • Air Dominance will be led by Vice President and General Manager Steve Nordlund. The division includes classified programs, the F/A-18, F-15, T-7, MQ-25 and MQ-28 programs and the nonspace portfolio of BDS’ advances prototype arm, Phantom Works, including it Virtual Warfare Centers. Nordlund will also become the senior site executive for the St. Louis region.
  • Space, Intelligence and Weapon Systems, led by Vice President and General Manager Kay Sears. The division includes space exploration and launch programs, satellites, munitions, missiles, weapon system deterrents, maritime undersea, Phantom Works Space and several subsidiaries, including Boeing Intelligence and Analytics. Jim Chilton, senior vice president for space and launch programs, will continue to manage those programs, as well as satellites and Phantom Works Space, until Feb. 4, 2023, after which point he will become a senior adviser focusing on space ventures to Boeing Defense, Space and Security President and CEO Ted Colbert.

“I am confident this reorganization will drive greater and more simplified integration and collaboration across Boeing Defense, Space and Security,” Colbert said in a statement. “These changes will help accelerate operational discipline and program quality and performance, while stabilizing our development and production programs. These are necessary steps to put BDS on the path to stronger, profitable growth.”

BDS’ previous eight divisions were Autonomous Systems; Space and Launch; Vertical Lift; Bombers and Fighters; Missiles and Weapons; Mobility and Surveillance; Phantom Works; and International Government and Defense.

In October, Reuters reported that BDS appointed Steve Parker chief operating officer in an effort to shore up money-losing defense programs as the company deals with delays and cost overruns on fixed-price contracts. Parker previously led BDS’ bombers and fighters division, and oversaw its 15,000 employees in St. Louis as a senior executive. He is now responsible for manufacturing and safety, total quality, supply chain and program management functions for BDS, Boeing spokesperson Paul Lewis told Virginia Business in an email.

In addition to the consolidations, Tim Peters, vice president and general manager of mobility and surveillance, and Cindy Gruensfelder, vice president and general manager of missile and weapon systems, will retire after assisting with transitions.

As part of the announcement, Plano, Texas-based Boeing Global Services, which provides aviation parts and engineering to commercial, defense and space customers, will integrate its domestic and international government services into one organization led by Torbjorn “Turbo” Sjogren, vice president and general manager of BGS’ government services, the company said.

BDS, based in Arlington, employs about 15,000 people in 15 countries and 48 states and its revenue in 2021 was $26.5 billion. It is one of three Boeing business units. In May, the company announced it was moving its corporate headquarters to Arlington, from its previous home in Chicago.