Three Reston-based companies won spots on a potential three-year, $800 million U.S. Army contract to support the branch’s Information Systems Engineering Command (USAISEC), the Department of Defense announced Monday.
Fortune 100 defense contractorGeneral Dynamics Corp., NCI Information Systems Inc. and Fortune 500 defense contractor Science Applications International Corp. (SAIC) will compete for orders under the contract to help USAISEC carry out its mission, according to the DOD. The USAISEC provides engineering and associated information technology support at Army posts, camps, and stations, interconnection between installations and extension to deployed forces, according to the Army.
The Army Contracting Command received 11 bids for the contract.
Work locations and funding will be determined with each order and the contract is expected to be completed by Oct. 4, 2023.
General Dynamics has a global workforce of more than 100,000 employees and generated $39.4 billion in 2019 revenue, while NCI Information Systems reported more than $268 million in revenue and employs more than 1,000 people. SAIC employs more than 25,000 people and has pro forma annual revenues of $7.1 billion.
The U.S. Air Force awarded McLean-based defense contractor Alion Science and Technology Corp. a $71 million task order to help the branch’s research laboratory (AFRL) develop space, electromagnetic and information technologies for potential national security use, the company announced Monday.
Under the task order, Alion will provide research, development, test and evaluation services to the AFRL’s space vehicles directorate while the Air Force looks to advance joint, coalition and multidomain warfare systems.
“Our expertise in conducting physics-based modeling, simulation and assessments for multidomain analytics for space superiority and space control capabilities, operations and architecture assures national security space missions support the warfighters,” Todd Stirtzinger, Alion senior vice president and general manager of the advanced technology group, said in a statement. “These will be the drivers for shaping future architectures, to include multidomain dependencies and executing the assessment models for AFRL/RV.”
Alion will assess situational awareness capabilities and analyze indication and warning thresholds, timelines, protection and defense response options to mitigate threats, according to the company.
Founded in 2002, Alion specializes in training, big data analytics and cybersecurity. The company has more than 55 offices in the U.S. and more than 25 research labs.
The U.S. General Services Administration awarded Reston-based Fortune 500defense contractor Science Applications International Corp. (SAIC) an $878 million task order to provide cybersecurity, engineering, tech and research and development services.
Under the task order, SAIC will develop and deploy capabilities to help warfighters access critical information and data at speeds and scales necessary for to gain and maintain decision-making advantages. The company’s services will ultimately allow for integration of all-domain data (including land, sea, air, space, cyber and electromagnetic), according to SAIC.
“SAIC’s operational and tactical integration expertise and our investments in digital engineering and rapid technical integration will accelerate warfighting capabilities that counter adaptive threats and keep pace with warfighter needs,” Michael LaRouche, executive vice president and general manager of SAIC’s National Security Group, said in a statement. “For instance, SAIC’s investments in virtual environments and technologies will help warfighters with a space test and training environment – live or simulated – that truly integrates how leaders command space and cyber systems to deliver global combat effects.”
SAIC’s work will allow the government to process, exploit, disseminate and act on information against emerging and evolving threats as well as eliminate or minimize outdated technology and reduce total lifecycle costs associated with Joint All Domain Command and Control (JADC2) systems that connect sensors from all of the military services.
SAIC employs more than 25,000 people and has pro forma annual revenues of $7.1 billion.
Old Dominion University‘s Dragas Center for Economic Analysis & Policy’s 2020 State of the Region report for Hampton Roadsoffers a sobering look at how the pandemic has harmed the regional economy and left tens of thousands of Hampton Roads residents jobless.
Employment in Hampton Roads fell dramatically, hotel occupancy continues to be outpaced by 2019 after bottoming out in April and import tonnage and market share at the Port of Virginia dropped this year. Full recovery from COVID-19 is likely to take years, according to ODU’s latest annual report about the regional economy, which was released Tuesday.
In April, individual employment fell by 11.6% in Hampton Roads. By June, 59,000 fewer residents were employed, as compared to just three months earlier. Regional COVID-19 job losses eclipsed those seen during the 2007-2009 Great Recession. In April, 77,000 Hampton Roads residents filed initial unemployment claims, which were seven times greater than the peak of the Great Recession, according to the report. And the impact is being felt disproportionately by minority communities, including African Americans and Hispanics.
“While the region’s dependence on direct federal spending (particularly through the Department of Defense) helped insulate Hampton Roads from some of the worst effects of COVID-19, the other two ‘pillars’ of the local economy – tourism and the Port of Virginia – dramatically felt the impact of the pandemic,” the report states.
Although hotel occupancy and revenues have slowly crept up in recent months, regional occupancy bottomed out at 31% in April. (In April 2019, the region’s hotel occupancy rate was 70%.) For the week of Sept. 20 through Sept. 26 (the most recent week of statistics available), hotel revenues in Virginia decreased by 47% and rooms sold declined by 29% compared to the same week last year, according to the Dragas Center. This was a major hit for the region that was expecting a hotel revenue boost from the canceled Something in the Water music festival, which in 2019 sold 35,000 tickets and drew crowds of 12,000 to 15,000 people each day during the three-day event.
Additionally, import tonnage at the Port of Virginia declined 17.3% between June 2019 and June 2020. Its cargo market share dropped from 16.5% to 16.2%, when comparing the first five months of 2019 to the same time interval in 2020.
Despite some signs of recovery since the onset of the pandemic, the report suggests that Hampton Roads is still projected to report a negative economic growth for 2020. Robert McNab, director of ODU’s Dragas Center, suggests that the region should not expect a quick recovery from COVID-19, noting that full employment recovery from the Great Recession took nearly a decade.
“We must reimagine what recovery will look like in a changed world,” McNab said in a statement. “This is a time to question assumptions and old ways of doing things. How can the region thrive in a world where people wear masks, keep their distance and, in many cases, operate virtually?”
On top of the COVID-19 challenges detailed in the report, ODU’s 2020 State of the Region report included five additional chapters providing information about Great Recession Recovery, mental health, food insecurity and the Thomas Jefferson National Accelerator Facility in Newport News.
Below are highlights:
The Way We Were: 2010-2019 – A look at how Hampton Roads struggled following the Great Recession. “The last decade, however, might be characterized as one in which Hampton Roads was largely left behind. The nation and Virginia grew faster than the region. More jobs were created elsewhere. While Virginia was ‘open for business,’ it seemed that Hampton Roads was on the outside, looking in.”
Anxiety and Stress in the Workplace – The estimated $1 billion in lost productivity and health care expenses connected to mental health issues in 2019 is projected to grow this year. “Approximately 70% of workplace anxiety and stress costs arise from lost productivity (e.g., sickness absence, leaving the workforce early) and about 30% come from direct medical costs borne by health care systems.”
Food Insecurity in Hampton Roads – One in 10 residents of the region were unsure of the source of their next meal in 2018. “Food insecurity is highly sensitive to the business cycle. Yet, even though a record number of Americans were working, food insecurity remained persistent for more than 1 in 10 households.”
Youth Mental Health in Hampton Roads – More young people, particularly teenagers, report rising levels of anxiety and depression. “The COVID-19 pandemic, the closure of schools due to stay-at-home orders and the ongoing economic recession have thrown this crisis into sharp relief.”
Jefferson Lab – A January 2019 study of the Thomas Jefferson National Accelerator Facility in Newport News estimates that the laboratory’s 2018 fiscal year regional economic impact was $269.2 million in economic output, resulting in $149.2 million in labor income and 2,015 jobs.
A U.S. Army and industry veteran, McAleer most recently served as chief operating officer for Nashville, Tennessee-based Military System Group, which designs and manufactures weapons mounts. He also serves on the board of Utah-based thermal management company Airborne ECS, which designs and manufactures environmental control systems for aerospace and defense.
“A generational shift has changed the world of industrial cybersecurity, and protection of highly complex and sophisticated military control systems is no exception,” Energy Innovation Capital Managing Partner George Coyle, a Mission Secure board member, said in a statement. “Mission Secure was founded on the premise of protecting these military control systems from cyberthreats, and the company is uniquely positioned to lead the world in this regard. And with Bob’s skill sets and leadership, we will continue to drive the growth of the Mission Secure Defense business.”
During his 27 years with the Army, McAleer served in warfighting billets in airborne artillery, Stryker infantry and special operations units. He spent 11 years overseas and six in command and has previously served as the chief of exercises, chief of future operations for U.S. Forces Korea, chief of staff of the Army’s Legislative Liaison and then led the U.S. Army’s Senate Liaison Division.
McAleer earned his bachelor’s degree in economics from the U.S. Military Academy at West Point, his master’s degree in business administration, a master’s of science in operations research from Georgia Tech and a master’s degree in national security and resource strategy from the National Defense University.
“I was drawn to Mission Secure because of its highly capable people and its unique position in an unchartered field critical to our federal government and Defense Department: cybersecurity for industrial control systems,” McAleer said in a statement. “It’s a soft underbelly of our national security establishment. Mission Secure is laser-focused on delivering solutions for platforms and key infrastructure to thwart hackers and nation-state actors alike.”
Mission Secure provides cyber protection, threat hunting and incident response. The concept for the company started in 2010 when the U.S. Department of Defense requested to be able to identify cyberattacks from weapons systems and platforms and be able to maintain control and fulfill the mission.
Due to its land availability, geothermal cooling opportunities and workforce readiness and development, Southwest Virginia could be an attractive data center destination, according to the study. A large data center located in the region could create more than 2,000 jobs during construction, 40 direct and 59 additional permanent jobs, the study found, with $233 million in economic activity generated during construction and more than $50 million in annual economic activity once operations begin.
“Southwest Virginia is primed to become the next hot spot for data centers,” U.S. Sen. Mark Warner said in a statement. “This is a rapidly growing industry in Virginia and companies would be smart to consider GO Virginia Region One due to its land availability, ready workforce, and unique opportunities for sustainability and growth.”
In GO Virginia Region One, which was the focus of the study, there are six sites that met the general criteria for a large, 36-megawatt hyperscale data center and four additional sites could host smaller data centers of up to 10 megawatts. Three sites have geothermal cooling potential, with the ability to source 51-degree or 55-degree water from underground pools in previously mined properties. Geothermal cooling systems could save a data center more than $1 million annually in reduced electric costs and municipal water water purchases.
Previously mined properties could also be used for solar development, the study found.
“The availability of solar development potential, cost-effective geothermal cooling, and the region’s desire to transform itself from a coal-producing area to an innovative renewable energy hub, provides a compelling case for data centers who are increasingly mandating new facility locations that allow sustainability goals to be met,” according to the study.
The study found a reasonable pool of workers with transferable skills in the region, as well as strong IT training programs and resources at community colleges and the University of Virginia at Wise that could fulfill workforce training requirements. Tax incentives are also part of the discussion, as the commonwealth allows for a separate property tax rate to encourage investment. Although no localities in GO Virginia Region One have a data-center-specific taxation class, local government officials are discussing more competitive tax rates for data centers, according to the study.
Led by R. Kent Hill, managing principal of OnPoint Development Strategies, LENOWISCO Planning District Commission and the Southwest Virginia Energy Research and Development Authority served as strategic partners for the study, and funding was provided by the GO Virginia Region One Council and the Virginia Department of Mines, Minerals and Energy.
“Project Oasis provided an in-depth look at how we can attract data centers to Southwest Virginia, what we need to do in order to attract data centers and the opportunities that could come by making some key investments in infrastructure,” Coalfield Strategies Managing Partner Will Payne, project lead for InvestSWVA, said in a statement. “The study shows that Southwest Virginia is a prime location for data centers, particularly as the industry looks for location diversity.”
Tysons-based Fortune 500 IT services company DXC Technology has completed the sale of its U.S. State and Local Health and Human Services business to private equity firm Veritas Capital for $5 billion, the Fortune 500 company announced Monday.
DXC Technology announced in March it would sell the business unit, which provides technology enabled, mission critical solutions for U.S. administration and operations of health programs. The completion of the transaction forms a new company called Gainwell Technologies, which will operate as a standalone company with more than 7,500 employees. It will focus on Medicaid management information systems, fiscal agent services, program integrity, care management, immunization registry and eligibility services.
“On behalf of everyone at DXC, I would like to thank our people who are joining Gainwell for their service and commitment to DXC. I would also like to thank our customers who are in great hands going forward,” DXC President and CEO Mike Salvino said in a statement. “I am very pleased that we have delivered on our plan in completing this transaction, which strengthens our balance sheet and allows us to bring the ‘new DXC’ to the market. Our focus on our people and our customers combined with our improved financial flexibility better positions DXC for long-term success.”
DXC will use the net proceeds to reduce debt by approximately $3.5 billion, and following the debt repayment, DXC will have approximately $6 billion of total debt and $3 billion of net debt.
“Today marks the beginning of an exciting new chapter for Gainwell, and we thank DXC for its partnership and stewardship in establishing the company as a true technology leader,” Veritas Capital CEO and Managing Partner Ramzi Musallam said in a statement. “With the invigoration and focus of a standalone company, Gainwell is poised as an innovative partner in the evolving healthcare technology market. We are proud to build upon Gainwell’s deep heritage and experience to continue to support clients in achieving essential outcomes in their communities nationwide.”
DXC Technology was formed in April 2017 as a result of the merger of Computer Science Corp. and the Enterprise Services business of Hewlett Packard Enterprise. The company has 138,000 employees worldwide and last year had revenues of more than $21 billion.
The U.S. Navy awarded Falls Church-based Fortune 100 defense contractorNorthrop Grumman Corp. a potential $1.16 billion follow-on contract to manufacture updated electronic warfare systems the branch will use to defend surface combatant vessels against anti-ship missile threats, the company announced Friday.
The award includes a $100.7 million base value and covers AN/SLQ-32(V)7 Block 3 systems production for the Navy’s Surface Electronic Warfare Improvement Program. The system is used to defeat legacy and emerging anti-ship threats using nonkinetic or electronic attack methodologies, according to Northrop Grumman.
The company uses an open architecture to support the new technology‘s integration with other combat systems and the distributed maritime operations framework. Northrop Grumman will help the Navy deploy the new technology to Arleigh Burke-class guided missile destroyers.
“With this follow-on production award, Northrop Grumman will continue to provide game-changing maritime EW capability that will underpin future Fleet Electromagnetic Maneuver Warfare operations,” Ingrid Vaughan, Northrop Grumman vice president and general manager of maritime/land systems and sensors, said in a statement. “We are writing a new chapter in the evolution of the AN/SLQ-32 that will fundamentally change how the Fleet will win the fight for years to come.”
Northrop Grumman employs more than 90,000 people and reported $33.8 billion in 2019 revenue.
The donation from the Smithfield Foundation presented to the Virginia Veterans Services Foundation will be designated to the Veteran Homeless Fund, which provides one-time gap assistance to homeless veterans in the process of being housed and those in danger of becoming homeless.
“Smithfield Foods has been a leader in helping address the challenges faced by veterans who are experiencing or at risk of homelessness, and we are grateful for their ongoing support and partnership,” Northam said in a statement. “This significant donation will ensure that the commonwealth can continue meeting the housing needs of our veterans and their families, especially amid this unprecedented health crisis.”
The company’s $100,000 donation adds to more than $210,000 in previous donations Smithfield has made since 2016 in support of state programs for homeless veterans and their families.
“At Smithfield, our ongoing commitment to support veterans directly aligns with the mission of Virginia’s Veteran Homeless Fund,” Smithfield Foods President and CEO Kenneth M. Sullivan said in a statement. “We are pleased to provide resources to ensure the continued success of programs to help homeless veterans in our home state of Virginia. We are honored to give back to our nation’s veterans, in honor of their service and sacrifice for all of us.”
Virginia in 2015 became the first state in the U.S. to be recognized by the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans to functionally end veteran homelessness, meaning the commonwealth has systems in place to identify veterans experiencing homelessness and help them secure housing.
“Smithfield’s longstanding and continued commitment to Virginia’s veteran community through its employment of veterans and support for programs to assist veterans and their families is truly inspiring,” Secretary of Veterans and Defense Affairs Carlos Hopkins said in a statement. “Donations like this one are especially important as we face the additional financial and health challenges created by the COVID-19pandemic.”
The Veteran Homeless Fund helped nearly 200 veterans and their families move into permanent housing and allowed previously homeless veterans to remain in their homes this fiscal year. Since its 2016 inception, the fund has helped more than 900 Virginia veterans.
Based in Smithfield, agriculture giant Smithfield Foods was founded in 1936 and employs more than 40,000 people in the U.S.
Richmond-based commercial construction and development firm Hourigan announced Friday it has hired David Ryan as chief financial officer and Kelley Holland as general counsel.
Ryan most recently served as vice president for corporate strategy and investor relations at chemical company Albemarle Corp. With nearly 30 years of experience, he has also served in leadership roles with global packaging company WestRock. He earned his bachelor’s degree in finance from the University of Dayton and his master’s degree in business administration from the University of Cincinnati.
Holland was most recently an attorney and partner in the litigation section of Richmond-based law firm Williams Mullen. Her practice was focused on general commercial, environmental and construction litigation. Before her time with Williams Mullen, she served as a law clerk for D. Arthur Kelsey, who was then with the Court of Appeals of Virginia (he is now a justice of the Supreme Court of Virginia). She earned her bachelor’s degree in English with a minor in Spanish from the University of Virginia and her juris doctorate from Regent University School of Law.
“Attracting top talent is critical to the growth of any company and, at Hourigan, it’s been our focus throughout our 25-year history,” CEO Mark Hourigan said in a statement. “Kelley and David each bring impressive experience and credentials to support the firm’s strategic growth, and we’re excited to welcome them to the team.”
Founded in 1993, Hourigan reported approximately $400 million in 2019 revenue. Some of its projects include the new Dominion Energy headquarters, the Virginia Commonwealth University STEM building, the University of Richmond’s Robins Stadium and the Altria Center for Research and Technology.
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