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byline: Rich Griset

Codan to acquire Herndon-based Domo Tactical Communications

Codan Ltd., an Australian manufacturer with its U.S. headquarters in Ashburn, has entered into an agreement to acquire 100% of the shares in Herndon-based Domo Tactical Communications from a private equity company. Subject to regulatory conditions typical of transactions of this nature, the acquisition is expected to be completed by April 30, Codan announced Tuesday.

Financial terms of the deal were not disclosed, but Australian news reports put the deal at about $88 million in U.S. dollars upfront, with a later payment of about $16 million if certain targets are met.

DTC is a commercially-off-the-shelf technology provider of high bandwidth wireless communications with capabilities in MIMO Mesh networks and next generation software defined radios that stream data across its self-forming and self-healing networks. DTC is a long-term supplier for more than 20 key U.S. government agencies, as well as the “Five Eyes” intelligence communities, including the military, special forces, border control, and first responders and broadcasters. DTC has locations in the United Kingdom and Denmark.

“The acquisition of DTC is consistent with Codan’s well-publicized strategic growth plan for our tactical communications business. This is focused on providing total voice, data and video communications solutions by transitioning from a traditional voice-only platform,” said Donald McGurk, Codan’s CEO, in a statement.

Codan is a global technology company that develops technology solutions to solve communication, safety, security and productivity problems in some of the harshest environments around the world.

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Leidos to buy Arlington-based Gibbs & Cox for $380M

Reston-based Fortune 500 government contractor Leidos Holdings Inc. has agreed to acquire Arlington engineering and design firm Gibbs & Cox Inc. in a $380 million cash transaction as part of its efforts to expand into the maritime market and add engineering talent to its team.

Leidos expects the deal to be completed in the second quarter of fiscal year 2021, subject to customary closing conditions.

Gibbs & Cox has 525 employees focused on delivering naval architecture and maritime engineering support to the U.S. Navy, government customers and international clients. Its core capabilities also include electrical engineering and design integration, environmental, safety and health, program management, structural engineering and production design.

Roger Krone, chairman and CEO of Leidos, said the acquisition will help Leidos broaden its maritime business and add marine engineering, naval architecture, 3D modeling and design and other services.

“In addition to being positioned on the front end of next generation vessels, the business combination provides significant tailwinds for participation in the maritime unmanned market and accelerates Gibbs & Cox’s expansion in the undersea domain,” Krone told analysts last week on an earnings call.

Leidos’ full fiscal year 2020 revenue rose 10.8% to $12.3 billion and recorded $3.25 billion for the fourth quarter, representing a 10.1% increase from the year prior. The information technology and engineering services contractor posted $17.8 billion in fiscal year 2020 net bookings.

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CGI Inc. awarded $137M contract to overhaul Va. procurement system

Global IT company CGI Inc., which has its U.S. headquarters in Fairfax, announced Tuesday it has been awarded a $137.8 million contract by the Virginia Department of General Services (DGS) to support “transformational enhancements” to the state government’s eVA online procurement system.

eVA provides a centralized, online purchasing hub for state and local agencies to choose goods and services from more than 112,000 approved vendors. CGI was selected to modernize the eVA platform with next-generation technologies, tools and capabilities. The contract runs from Feb. 1, 2021 through Dec. 31, 2031.

The contract includes a transition to more modern and user-friendly procurement and reporting tools for state and local government users, as well as businesses and public users who desire to understand what public bodies are purchasing.

Through the new contract, CGI will deliver:
– An enhanced shopping experience, including better catalog maintenance and buyer tools
– Improved supplier services, such as electronic order delivery, contracts, catalogs and improvement plans
– Enhanced collaboration between users and suppliers
– Increased standardization across functions to make it easier to use
– New smart routing and workflow functions to increase process efficiency

Since launching in 2001, eVA has processed 12.6 million purchase orders worth $127 billion. The system currently serves 245 state agencies and more than 1,000 local jurisdictions. eVA has also provided emergency procurement information related to the COVID-19 pandemic response, connecting vendors and suppliers with state purchasing contracts.

“CGI is excited to extend our partnership with the Department of General Services, where together we will implement a new, market-leading, unified platform with a modern user experience for procurement functions based on a highly flexible and configurable model, said Lynne Bushey, CGI senior vice president and U.S. mid-Atlantic business unit leader, in a statement.

Founded in 1976 and based in Canada, CGI is among the largest independent IT and business consulting services firms in the world. With 76,000 consultants and other professionals worldwide, CGI’s services include strategic IT and business consulting, systems integration, managed IT and business process services and intellectual property solutions. CGI reported $12.16 billion in revenue for fiscal 2020.

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Parsons wins $600M USPS contract

Centreville-based Parsons Corp. has secured a potential seven-year, $600 million contract for nationwide program management services for the U.S. Postal Service.

The contract is Parsons’ third consecutive award from USPS and extends a 17-year business relationship between the two entities. Previously, Parsons helped the agency install self-service kiosks, renovate parking structures and manage leased spaces as part of USPS’s national facilities program.

“Our experience in program management, architectural and engineering design and construction management supports the USPS’s ongoing modernization efforts,” said Chris Alexander, executive vice president and general manager for the engineered systems market at Parsons, in a statement.

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ManTech names VP of mission/enterprise IT

Herndon-based technology contractor ManTech announced Monday it has recruited Steven Oh as vice president of mission/enterprise IT for the company’s newly formed Innovation and Capabilities Office.

An IT, information security and project management professional, Oh will lead the technical focus area responsible for advancing ManTech’s business solutions that enhance Mission/Enterprise IT (M/E IT) services and assist ManTech’s workforce through M/E IT training and exercise support.

His prior positions include: technology director of the intel and homeland division for General Dynamics Information Technology (GDIT); senior principal of cloud for CSRA; and cloud program manager for InfoZen.

Founded in 1968, ManTech is a technology contractor for U.S. defense, intelligence and federal civilian agencies. A Fortune 1000 company, it reported more than $2 billion in revenue in 2019.

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Northam announces $3.6M expansion of Eaton in Henrico

Power management manufacturer and supplier Eaton Corp. plc will invest $3.6 million to move production from California to its facility in Henrico County, Gov. Ralph Northam announced Friday.

The move will create 80 jobs through the expansion of the Henrico facility’s production capabilities and the addition of new lines for electrical component manufacturing. Eaton, an American Irish-domiciled company, provides sustainable solutions to help customers better manage electrical, hydraulic and mechanical power.

“Eaton’s decision to move production to Henrico County and expand its presence in our commonwealth demonstrates the strength of Central Virginia’s manufacturing workforce,” Northam said in a statement. “The company’s commitment to sustainable power solutions aligns perfectly with the Clean Energy Virginia initiative, and we look forward to partnering with Eaton as we work to accelerate our transition to renewable energy.”

Eaton operates in more than 175 countries and has distribution centers in Henrico County and Charlottesville. Eaton employs approximately 92,000 people and had revenues of $17.9 billion in 2020.

“Optimizing our existing Eaton footprint in Henrico will ensure that our operations are well-positioned for future success,” said Chris Butler, senior vice president and general manager of Eaton’s power quality division. “This investment further solidifies our commitment to our operations in the greater Richmond area, and we look forward to being a longstanding member of this community.”

The Virginia Economic Development Partnership worked with the Henrico Economic Development Authority and Port of Virginia to secure the project for Virginia and will support Eaton’s job creation through VEDP’s Virginia Jobs Investment Program (VJIP), which provides consultative services and funding to companies creating new jobs in order to support employee recruitment and training activities.

As a business incentive supporting economic development, VJIP reduces the human resource costs of new and expanding companies. VJIP is state-funded, demonstrating Virginia’s commitment to enhancing job opportunities for citizens. The company is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program, as well as state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.

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Short Pump Hilton enters receivership

The Hilton Richmond Hotel and Spa in Short Pump has entered receivership after its owner, Shamin Hotels, fell behind on loan payments, according to documents filed in Henrico County Circuit Court.

In an order dated Jan. 21, Fairfax-based based Crescent Hotel Management Services LLC was named special receiver for the Short Pump Hilton, which was the flagship of Chester-based Shamin Hotels’ empire. According to its website, Crescent manages dozens of hotels and resorts in the United States and Canada, including Hilton-, Marriott- and Hyatt-branded properties.

As receiver, Crescent will “operate, manage, maintain and control” the 254-room property, which opened in 2009.

Previous court documents state that the noteholder wants Crescent to keep the property open and run it while a foreclosure sale is conducted.

In a complaint filed on Dec. 2, 2020, 12042 West Broad Street Holdings LLC, the Bethesda, Maryland-based noteholder on the property, alleged a breach of contract, saying Shamin Hotels fell behind in its loan payments beginning in April 2020. That filing states that Shamin borrowed $45 million from JPMorgan Chase Bank National Association on Oct. 11, 2013.

Shamin CEO Neil Amin, Shamin’s lawyers, Crescent Hotel Management Services and the lawyers representing 12042 West Broad Street Holdings and did not return calls for comment for this story.

Amin has said the hotel was appraised at $68 million at the time of the loan, and the purpose of the loan was to refinance the original construction loan. He also said his company was cooperating with the noteholder to allow them to take control of the property through receivership and a possible public auction. Shamin fell behind in its loan payments because of the pandemic, he said.

“This is a unique situation that is affecting all conference hotels nationwide, and with our revenue declining by $10 [million] since the start of the pandemic and a noteholder that is not being supportive, we felt that this is the best decision for our company and our organization,” Amin told Virginia Business in December.

As of Dec. 1, 2020, Shamin owed $46.8 million on the loan, including a principal amount of $40.2 million, $1.18 million in accrued interest, $1.19 million in default interest and more than $127,000 in accrued late fees, according to the December filing. The filing noted that the property may be worth as little as $26 million.

Amin said that his company, one of the largest independent hoteliers in the United States with more than 60 properties, initially attempted to work with the noteholder until they “demanded significant lender fees and unsuitable guarantees in order to access those funds. We then offered other solutions such as providing a [significant] influx of capital to support the hotel over the next few years or paying off the loan at value significantly higher than the lender’s valuation.”

Amin has said that his other hotels are performing better than the Short Pump Hilton because they are less dependent on revenue from conferences. Shamin has new properties scheduled to open in 2021, including a Home2 Suites and a Hampton Inn and Suites in Short Pump, and The Landing at Hampton Marina, a Tapestry Hotel by Hilton, in Hampton.

Shamin began in January 1979 when Amin’s father, P.C. Amin, and uncle, B.N. Shah, purchased their first hotel in Lumberton, North Carolina. Shamin is an amalgam of the founders’ last names.

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Seven Va. exporters graduate from VALET program

Gov. Ralph Northam announced on Friday the list of the latest seven companies to graduate from the Virginia Economic Development Partnership’s (VEDP) Virginia Leaders in Export Trade (VALET) program.

More than 300 companies have now graduated from the a two-year international business acceleration program that assists participating Virginia exporters with international sales plan development services, assistance from a team of international service providers, international business meetings with potential partners, educational events and customized market research.

There are currently 46 companies participating in the VALET program. VEDP has a network of international market research consultants covering more than 70 countries around the globe.

The graduating companies are:

  • Atomized Products Group of Chesapeake Inc., Chesapeake
  • Biomic Sciences LLC, Albemarle County
  • Cambridge International Systems Inc., Arlington County
  • Diamond Healthcare Corp., Richmond
  • ExploreLearning, Charlottesville
  • Fonteva, Arlington County
  • Sentry Equipment & Erectors Inc., Bedford County

“In today’s challenging and uncertain business environment, Virginia companies need support to identify new customers and navigate global markets,” said Northam in a statement. “The VALET program’s tools and expertise continues to help Virginia exporters drive sales, which are an important economic engine for the commonwealth. We applaud these seven businesses for their commitment to international growth and their achievements in Virginia and abroad.”

Virginia exports over $37 billion in goods and services annually. Exports of Virginia’s products and services support more than 257,000 jobs and generate $2 billion in annual tax revenue.

“Export sales drive employment and capital investment in the commonwealth, and we are proud that a proven program like VALET is available to help Virginia businesses capitalize on global opportunities and position them for success for many years to come,” said Stephen Moret, VEDP president and CEO, in a statement.

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BAE Systems awarded additional $184M for Marines amphibious vehicle

Arlington-based defense contractor BAE Systems has received a $184 million order from the U.S. Marine Corps for more Amphibious Combat Vehicles (ACV) under a contract option.

In December, BAE Systems received approval to begin full-rate production of ACVs and received a $184 million contract modification to produce an initial 36 vehicles for the service branch’s ship-to-shore operations.

This option on the contract increases the total number of vehicles to 72 at a total value of $366 million.

“The exercising of this option validates years of teamwork in partnership with the Marines to provide the most adaptable amphibious vehicle possible to meet their expeditionary needs,” said John Swift, director of amphibious programs at BAE Systems, in a statement. “The ACV was designed to meet the Marines’ needs of today while allowing for growth to meet future mission role requirements.”

BAE Systems describes ACV as “a highly mobile, survivable, and adaptable platform for conducting rapid ship-to-shore operations and brings enhanced combat power to the battlefield.” The company is under contract to deliver two variants to the Marine Corps.

Along with Italy’s Iveco Defence Vehicles, BAE was selected for the ACV program in 2018 to replace the Marines’ legacy fleet of Assault Amphibious Vehicles (AAV), which were also built by BAE. The Arlington defense contractor was also recently awarded an indefinite delivery quantity (IDIQ) contract worth up to $77 million for the ACV program, which includes the provision of spare and replacement parts, testing equipment, and other services.

ACV production and support is taking place at BAE Systems locations in Stafford, Virginia; San Jose, California; Sterling Heights, Michigan; Aiken, South Carolina; and York, Pennsylvania.

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Hourigan names new health care division director

Richmond-based commercial construction and development company Hourigan announced Friday that it has named Brian Brown as director of its health care division.

Brown brings more than 26 years of experience to the role, including 16 years at Hourigan. At Hourigan, Brown has been instrumental in delivering projects ranging from medical office buildings and critical care facilities to his ongoing work on VCU Health’s Adult Outpatient Pavilion.

“We have always considered health care an essential market sector and have been proud to partner with clients to deliver projects that have a lasting impact on the health and wellness of our communities,” said CEO Mark Hourigan in a statement. “Brian’s new responsibilities are a reflection of our deep commitment to serve this market at the highest level.”

Brown is a certified healthcare constructor (CHC), a member of the American Society for Healthcare Engineering (ASHE) and a LEED-accredited professional.

Hourigan’s current projects include VCU Health’s Adult Outpatient Pavilion, which includes 604,000 square feet of various clinical disciplines, the Massey Cancer Center and a 472,000-square-foot parking garage. Hourigan is also working on a building addition for a new hybrid operating room at Bon Secours Mercy Health’s Memorial Regional Medical Center in Mechanicsville; a master facility plan expansion for Chesapeake Regional Medical Center; and an imaging center for HCA Virginia’s Johnston-Willis Hospital in Chesterfield.

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