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byline: Richard Foster

Northrop Grumman receives $959M defense contract

Falls Church-based aerospace and defense contractor Northrop Grumman Corp. was awarded a $959.1 million contract Friday from the U.S. Army for production of infrared countermeasures, which protect aircraft from heat-seeking missiles.

The work is to be completed by April 29, 2026.

The contract comes on the heels of a $2.3 billion defense contract Northrop Grumman received earlier in April to support and maintain propulsion subsystems for Minuteman II intercontinental ballistic missiles. In March, Northrop Grumman and partner Raytheon Missiles & Defense were awarded a Missile Defense Agency contract worth up to $3.93 billion to perform work on the U.S. ballistic missile defense system.

A Fortune 500 company, Northrop Grumman employs roughly 97,000 people worldwide and reported $36.79 billion in 2020 revenue. The company reported $8.9 million worth of contract awards and $9.2 billion in sales for the first quarter of 2021, up from $8.6 billion in sales for the first quarter of 2020.

Noblis acquires McKean Defense

Reston-based not-for-profit federal contractor Noblis announced Monday that it has acquired Philadelphia-based McKean Defense and its affiliates, Mikros Systems and Cabrillo Technologies.

The amount of the acquisition was not disclosed.

Formerly an employee-owned defense contractor specializing in surface ship readiness for the U.S. Navy, McKean Defense is now a wholly owned subsidiary of Noblis. Glenn Hickok, vice president of Noblis’ Defense Mission Area, will take on the additional title of president of the McKean subsidiary. McKean CEO Joseph Carlini stepped down and will serve as a strategic adviser through the integration process.

“As mission-driven companies, Noblis and McKean Defense have a common purpose to enrich lives and make our nation safer with a shared passion for excellence and innovation,” said Noblis President and CEO Amr ElSawy in a statement. “We are excited to welcome McKean employees to the Noblis family and look forward to combining forces to bring new and complementary solutions to address our clients’ growing needs.”

“McKean is an employee-owned company,” said Carlini. “As such, it was important for us to join an organization with a strong, ethical foundation, similar values and a singular focus on helping to advance national security priorities. We found that in Noblis, and I’m confident that together, our teams and service to our clients will thrive.”

Hickock, the subsidiary’s new president, said, “I’m already impressed by the McKean team. They have deep client relationships and extensive mission knowledge—particularly in the naval operations arena. Together, our team can remain agile while adding scale, capabilities and contract vehicles to expand our impacts in the Defense Mission Area and lean further forward in addressing our clients’ changing needs.”

Noblis spun off from The Mitre Corp.’s Center for Advanced Aviation System Development in 1996.

Northam: State to loosen more restrictions May 15

Beginning May 15, the state will loosen more restrictions, including allowing larger social gatherings and expanded audiences for entertainment venues and sporting events, Virginia Gov. Ralph Northam announced in a video message released Thursday. Restaurants will also be allowed to resume serving alcohol after midnight.

Northam’s amendments to his pandemic executive orders, which take effect May 15, include:

  • Increased social gatherings. The maximum number of people allowed at social gatherings will increase from 100 to 250 people for outdoors settings and from 50 to 100 people for indoor settings.
  • Greater attendance at entertainment venues. Indoor entertainment venues such as movie theaters will be allowed to operate at 50% capacity or 1,000 people, up from 30% capacity or 500 people. Outdoor entertainment venues such as theme parks will be allowed to operate at 50% capacity with no cap on attendees.
  • More spectators allowed at recreational sporting events. Outdoor sporting events will increase from 500 to 1,000 people or 50% capacity, whichever is less. The number of spectators allowed at indoor recreational sporting events will increase from 100 to 250 spectators or 50% capacity, whichever is less.
  • Restaurants can resume alcohol sales after midnight. Establishments will not be required to close dining rooms from 12 a.m. to 5 a.m.

Earlier in the week, Northam expanded access to bar seating for the first time in more than a year and also increased attendance limitations on cross-country events and school-based fine arts performances.

“It’s good news that half of all adults in Virginia have gotten a shot so far,” Northam said. “Vaccination numbers are up, and our COVID-19 case numbers are substantially lower than they were earlier this year. So, we have been able to begin easing some mitigation measures. We took a few more targeted steps this week, and we will do more next month. I’m optimistic that we will be able to take more steps in June.

“We are working to significantly ramp up vaccinations even further and aim to reduce capacity limits in June, hopefully all the way. But some things need to continue — we all need to keep wearing masks, social distancing and encouraging each other to get a shot. It’s how we take care of one another.”

More than 5.5 million COVID-19 vaccine doses have been administered in Virginia and 3.5 million Virginians — 41% of the population — have received at least one dose of a COVID vaccine, the Virginia Department of Health reported Thursday. All Virginians ages 16 and older are eligible to receive the vaccine.

Amazon to create 1,000 jobs with Henrico fulfillment center

Amazon.com Inc. plans to build a multistory, 650,000-square-foot facility robotics fulfillment center at Richmond Raceway in Henrico County, creating 1,000 jobs, Virginia Gov. Ralph Northam announced Wednesday.

The center, which will be built on 119 acres of ancillary land used for overflow parking by the raceway, is expected to open in 2022.

“Amazon continues to demonstrate confidence in Virginia by expanding and reinvesting in our commonwealth,” Northam said in a statement. “This new robotics fulfillment center in Henrico County is the latest milestone in the growing partnership between Amazon and Virginia, and reinforces our standing as both a technology hub and a leader in supply chain management. As we work to rebound from the impacts of the pandemic, we are grateful for Amazon’s commitment to supporting our communities and providing jobs to thousands of Virginians.”

The robotics facility is the second such Amazon facility in development for Virginia. The mammoth e-tailer also is building a $230 million, five-story robotics fulfillment center in Suffolk’s Northgate Commerce Park, as well as a $50 million, 650,000-square-foot import processing center in Chesapeake’s Western Branch area.

The Henrico facility will be located on one of two undeveloped parcels totaling 247 acres north of Azalea Avenue, east of Wilkinson Road and on either side of Richmond Henrico Turnpike that have previously been used by the raceway for overflow parking.

Richmond Raceway, which is owned by NASCAR, last week sold the 119-acre portion of the parcel where Amazon’s fulfillment center will be located to Dallas-based Hillwood Investment Properties. Hillwood worked with Richmond Raceway to get the two parcels rezoned for industrial use in 2020 as part of a larger partnership with NASCAR to redevelop surplus land at raceway tracks around the nation and spur economic development in communities where NASCAR operates. Hillwood has also partnered with Amazon to develop several distribution center projects around the country.

Amazon is currently building its $2.5 billion HQ2 East Coast headquarters in Arlington, where it has hired about 1,600 of its projected 25,000 to 37,850 HQ2 employees. The company has more than 27,000 full-time and part-time employees in Virginia, where it has 10 fulfillment and sortation centers and delivery stations, as well as 13 Whole Foods Market locations and three Prime Now hubs.

“Amazon has been proud to call Virginia home since 2006,” said Alicia Boler Davis, Amazon’s vice president of global customer fulfillment. “Collectively, it takes a strong workforce and local support network to serve our customers across the commonwealth and the region. The launch of this state-of-the-art fulfillment center in Central Virginia will create more than 1,000 jobs with industry-leading pay and benefits starting on the first day of employment. I’m excited to see Virginians continue to excel at Amazon, building better and brighter futures.”

The Virginia Economic Development Partnership (VEDP) worked with the Henrico Economic Development Authority, The Port of Virginia and the Greater Richmond Partnership to secure the fulfillment center for Virginia. Funding and services to support Amazon’s employee training activities for the center will be provided through VEDP’s Virginia Jobs Investment Program. Amazon is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program for the project, as well as the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.

Genworth files for mortgage insurance biz IPO

Henrico County-based Fortune 500 insurer Genworth Financial Inc. filed paperwork with the U.S. Securities and Exchange Commission Monday for a proposed initial public offering of the company’s mortgage insurance business.

J.P. Morgan and Goldman Sachs & Co. LLC will serve as joint book-running managers for the proposed offering of Genworth Mortgage Holdings Inc. (GMHI), a wholly owned Genworth subsidiary, according to a company statement.

The number of shares to be offered and the price range for the proposed offering have not yet been determined, the company said.

During a special shareholders meeting in early January, Genworth President and CEO Tom McInerney said that the company was planning the IPO for GMHI during the first half of 2021.

The initial public offering comes as Genworth earlier this month formally terminated its long-delayed $2.7 billion acquisition by China-based Oceanwide Holdings Group Co. Ltd.

Staunton manufacturer to expand, create 31 jobs

Ryzing Technologies LLC, a designer and manufacturer of textile-based engineering solutions, will expand its facility in Staunton, creating 31 jobs, according to an announcement Friday from Virginia Gov. Ralph Northam.

Ryzing is investing $149,000 in the expansion of the facility, which specializes in engineered textiles, rigid inflatable structures, and rapid prototyping. Its  customer base includes the U.S. military and allied forces, as well as industrial, commercial and other government clients.

“Supporting the growth of Virginia’s small businesses is a top priority, and we are thrilled that the expansion of Ryzing Technologies will result in 31 new high-skilled positions,” Northam said in a statement. “We commend the city of Staunton for fostering an environment of innovation and entrepreneurship where companies like Ryzing Technologies can develop pioneering solutions for a wide range of industries, including the military.”

Ryzing was founded in 2015 by Ryan Gundling and Ryan Long, who created the company as a result of participating in Staunton’s Bright Rewired Business Plan Competition. The company’s products include an adjustable, reusable platform for expeditionary military shelters.

“Ryzing Technologies was started five years ago in Staunton for two reasons: the founders personally saw value for their families to live in the area and were confident the area had the amenities required to attract the right talent to grow a successful business,” Gundling, the company’s CEO, said in a statement.

The Virginia Economic Development Partnership worked with the city of Staunton to secure the project and will support Ryzing Technologies’ job creation through VEDP’s Virginia Jobs Investment Program.

Va. unemployment stayed steady in March

Virginia’s seasonally adjusted unemployment rate remained above 5% in March, dropping just 0.1 percentage points below February’s jobless rate.

March’s 5.1% unemployment rate was 2.5 percentage points above March 2020’s rate. Virginia contends to trend lower than the nation, however. The U.S. unemployment rate for March was 6%.

“Virginia’s unemployment rate is steadily improving and we are making real progress in safely reopening our economy,” Virginia Gov. Ralph Northam said in a statement. “While we have made great strides in our recovery, we know there is still more work to do. We will continue to focus our efforts bringing more Virginians into the workforce and supporting families, businesses and communities with the resources they need to build back stronger.”

The labor force increased by 1,618 to 4.23 million in March, with the number of unemployed Virginians decreasing by 5,051, according to data released Friday by the Virginia Employment Commission. The number of employed Virginians increased by 6,669 to 4.02 million.

The largest job gains occurred in the professional and business services sectors, followed by manufacturing, miscellaneous services, construction, mining and logging. The sectors with the largest job losses in March were trade, transportation and utilities, followed by leisure and hospitality services; information; finance; and education and health services.

 

 

Rockingham County produce stand expands to 27-acre facility

Mount Crawford-based Overlook Produce and Farm Adventures will invest more than $850,000 to construct a produce packing facility and retail market pavilion on a 27-acre site in Rockingham County, according to an announcement Wednesday from Virginia Gov. Ralph Northam.

Located off Interstate 81’s Exit 240, the facility will replace Overlook Produce’s roadside produce stand and will offer seasonally available, Virginia-sourced fruits, vegetables, meats, honey, baked goods, flowers, and seafood. It will feature a large open-air market pavilion, greenhouses, pick-your-own strawberry and pumpkin patches, and an expanded warehouse and cold storage facility.

The project will create six new jobs.

Overlook Produce owners Joe Ulmer and his wife Janice are native Shenandoah Valley farmers who opened the roadside stand in 2016 after selling their produce for five years through the Shenandoah Valley Produce Auction.

“Virginia’s agricultural sector is strong because of the entrepreneurial spirit of individuals like Joe and Janice Ulmer,” Northam said in a statement. “Shenandoah Valley residents and those who travel Interstate 81 will be able to enjoy the diverse bounty that Virginia’s farmers and watermen provide through this exciting new venture.”

“We are grateful for the opportunity to expand and better serve our community with local produce,” Joe Ulmer said. “With our expansion, we will now be able to offer a larger variety of all your essential local food items.”

The Virginia Department of Agriculture and Consumer Services worked with Rockingham County and the Rockingham County Economic Development Authority to secure the project. Northam approved a $15,000 grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund to assist with the project. Rockingham County will match the $15,000 grant with local funds.

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Graham Holdings Co. to acquire Leaf Group Ltd. for $323M

Arlington-based Graham Holdings Co. announced Tuesday that it has entered into an agreement to acquire Santa Monica, California-based consumer internet company Leaf Group Ltd. in a $323 million, all-cash transaction.

Graham Holdings will acquire all outstanding shares of Leaf Group’s common stock at $8.50 per share. The transaction is expected to close in June or July.

Leaf Group’s portfolio of creator-driven lifestyle brands include Well + Good, Livestrong.com, Saatchi Art and Society6.

Graham Holdings is the family company of the late Katharine Graham, who was the publisher and owner of The Washington Post. Its current holdings include online magazine Slate, digital marketing company SocialCode LLC, a group of seven television stations and higher education company Kaplan Inc. The company also holds Graham Media Group, which was formerly the Post-Newsweek Stations.

“At Graham Holdings, we look for businesses that can prosper under our ownership and Leaf Group’s collection of marketplace and media brands make for a growing company that can do just that. We’re thrilled to partner with [Leaf Group CEO] Sean [Moriarty] and his team and look forward to driving profitable growth at Leaf Group,” Graham Holdings CEO Timothy J. O’Shaughnessy said in a statement.

Sean Moriarty, CEO of Leaf Group, said, “We could not be more pleased to be joining forces with an organization with such a rich history and shared commitment to excellence. Together, we look forward to continuing to build on the strong momentum Leaf Group generated over the past year, with the additional resources and expertise of Graham Holdings helping us further grow the reach of our young brands and innovate for our customers, creators and audiences.”

 

UVA Health hires chief diversity & community engagement officers

Charlottesville-based UVA Health has named Dr. Tracy M. Downs as the health system’s inaugural chief diversity & community engagement officer, effective July 1.

A urologist who specializes in the surgical treatment of urologic cancers, Downs previously served as associate dean for diversity and multicultural affairs and as a professor of urologic oncology for the University of Wisconsin School of Medicine and Public Health. At UW, Tracy played an instrumental role in overseeing the recruitment of and medical education support programs for individuals from ethnically diverse backgrounds underrepresented in medicine.

According to a release, Downs will “serve as UVA Health’s leading voice on diversity, equity and inclusion and be a powerful advocate for related initiatives across the health system and, more broadly, in the local community.” Issues he will focus on including improving community health by addressing social determinants that create health disparities.

“Tracy is a leader of integrity who is passionate about community health advocacy and the work of diversity, equity and inclusion,” said UVA Health CEO Dr. K. Craig Kent in a statement. “He will play an integral role in the ongoing effort to strengthen U.Va.’s partnership with our neighboring communities.”

“I am both excited and humbled by the opportunity to join UVA Health, one of the best academic health systems in the country and a place that strongly values diversity, equity and inclusion,” said Downs. “It is important to me that we are good stewards and provide the same level of compassionate and skilled medical care to all members of society who come from differing diverse backgrounds. I cannot wait to help build upon the core values of UVA Health to serve our community better.”

Downs earned his medical degree from the University of California San Diego. He earned his bachelor’s degree from California Lutheran University.