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DoD/Executive Moves/News
Stephen Kitay to Step Down as DoD Space Policy Head
by Brenda Marie Rivers
Published on August 10, 2020
Stephen Kitay to Step Down as DoD Space Policy Head

Stephen Kitay, deputy assistant secretary of defense for space policy, is slated to leave the public sector after 18 years in government service. Kitay wrote in a LinkedIn post dated Aug. 8th that he intends to step down from his position at the Department of Defense (DoD) to assume an undisclosed role in the private sector.

He has been serving in his current capacity since 2017 and recently helped lead the DoD’s efforts to evaluate the COVID-19 pandemic’s impact on the U.S. space industrial base. He also served as a staff member at the House Committee on Armed Services from 2011 to 2017.

According to Kitay’s letter, his experience as an intelligence professional, military leader and government official enabled him to have a "distinct understanding" of opportunities and challenges in the U.S. space industry.

He noted that he is “truly grateful” for the Trump administration’s initiatives to drive the nation's space leadership.

DoD/News/Press Releases
DIU’s Michael Brown on DoD’s Need for Budget, Experimentation Flexibility
by Brenda Marie Rivers
Published on August 10, 2020
DIU’s Michael Brown on DoD’s Need for Budget, Experimentation Flexibility

Michael Brown, director of the Defense Innovation Unit (DIU), has said the Department of Defense (DoD) needs to establish trust with Congress to streamline budgeting procedures while promoting flexibility in experimentation, DoD News reported Friday.

Brown told attendees at the Aspen Security Forum that speeding up the current two-year budgeting process will help the DoD adopt innovative technologies while leveraging various contracting authorities.

"But the speed is now all about the budgeting process. And that requires work with Congress,” he said. "We have to develop a relationship that involves trust so that there is more budget flexibility.”

According to Brown, the DoD cannot afford to be behind the private sector in terms of experimentation. The U.S. also needs to scale up efforts in areas such as artificial intelligence, biotechnology and cyber autonomy to keep up with adversaries like China, he added. 

"We're not moving in government at an agile pace that reflects the nature of the competition. It's about speed," said Brown. "We need to be quick on our feet to be able to prototype, test in military application, and then have a rapid uptake to get those vendors into production."

News/Press Releases
Northrop Grumman Expands Aerospace, Defense Workforce; Katie Qian Quoted
by Sarah Sybert
Published on August 10, 2020
Northrop Grumman Expands Aerospace, Defense Workforce; Katie Qian Quoted

Northrop Grumman has reported that the company will expand its local workforce as aerospace and defense workforce in Utah and has projected that it will fill more than 600 positions, Northrop Grumman announced on Monday.

“We’re on track to actually add a lot more over the next few months, and that trend is expected to continue over the next few years,” said Katie Qian, director of Air Force programs at Northrop Grumman.. “Being a technical company, we are looking for lots of engineers.”

Northrop Grumman’s company wide expansion has been initiated due to new projects that are now under contract. The program has aimed to create jobs through 2075.

“We are building facilities to support these new projects that are coming on,” Qian added. “For example, we just opened a brand-new facility at Hill Air Force Base to support the ground-based strategic deterrent program. (It) is a large program that supports the Air Force.”

Northrop Grumman will also seek to expand its civil contract with NASA on the Space Launch System. With missile defense and other customers expanding right now, the company will be adding support across the board in multiple business sectors. 

“We are responsible for designing, manufacturing, testing, sustaining solid rocket motors for various Air Force applications — everything from satellite launch vehicles and missiles for strategic deterrence,” Qian concluded. “We are looking at our teams to staff up in multiple positions and we’re going to be hiring like crazy through the rest of the year.”

About Northrop Grumman

Northrop Grumman Corporation (NYSE: NOC) is an American global aerospace and defense technology company. With over 85,000 employees and an annual revenue in excess of $30 billion, it is one of the world's largest weapons manufacturers and military technology providers.

News/Press Releases
Viasat Partners With American Express to Support Small Businesses During COVID-19; Cody Catalena Quoted
by Sarah Sybert
Published on August 10, 2020
Viasat Partners With American Express to Support Small Businesses During COVID-19; Cody Catalena Quoted

Viasat has partnered with American Express, along with other companies, under the Stand For Small program to support millions of small businesses during the COVID-19 pandemic, Viasat reported on Monday.

“Our goal is to help small businesses thrive in their communities by enabling them to reliably stay online and connected to customers, partners and prospects," Cody Catalena, Viasat's vice president and general manager of Global Business Solutions, commented. 

The Stand for Small initiative will provide support and access to business-critical services, offers, tools and expertise and benefits through a centralized, digital platform. The resources will assist small businesses during the COVID-19 crisis and recovery efforts.

Viasat’s partnership will also help business owners reduce operating expenses, manage teams remotely and enhance digital capabilities. Viasat will provide discounted satellite-enabled business internet services to new U.S. small business customers.

The company’s business internet service covers 96 percent of the U.S. population, and offers a variety of unlimited and metered data plans with download speeds up to 100 Mbps. 

Viasat has also implemented a number of initiatives to help U.S. small businesses stay connected during the COVID-19 crisis, including grants to help make their businesses more resilient and the FCC's 'Keep Americans Connected' program. 

The company has also optimized its satellite communications network when businesses turned to work-from-home environments, prioritizing real-time business communications applications, network storage and other business-critical online tools.

"We're proud to participate in the Stand for Small effort, joining American Express and other leading companies, to help small businesses endure and adapt during these difficult times,” added Catalena. 

About Viasat 

Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. 

Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people's lives anywhere they are—on the ground, in the air or at sea.

News/Press Releases/Wash100
General Dynamics Partners with Bath Iron Works to Support U.S. Navy Development; Phebe Novakovic Quoted
by Sarah Sybert
Published on August 10, 2020
General Dynamics Partners with Bath Iron Works to Support  U.S. Navy Development; Phebe Novakovic Quoted

General Dynamics has partnered with Bath Iron Works and the International Association of Machinists and Aerospace Workers (IAM) Local S6 under an agreement to end the ongoing strike by shipyard workers in Bath, Maine, the company reported on Monday.

“We are pleased to have reached agreement with our union partners and look forward to getting back to the job of building ships for the U.S. Navy,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics and six-time Wash100 Award recipient.

Federal Mediation and Conciliation Service deputy director Rich Giacolone and IAM International president Robert Martinez assisted to facilitate the tentative agreement. Approximately four-thousand members of the Local S6 have been on strike since June 22. The agreement is subject to ratification vote by the union’s members.

“We greatly appreciate the assistance of Director of Trade and Manufacturing Policy Peter Navarro and AFL-CIO Metal Trades Department President Jimmy Hart for their help in bringing the parties together.”

General has a long history of supporting the U.S. Navy. In Dec. 2019, the company received a $22.2 billion contract from the U.S. Navy to build nine more nuclear-powered Virginia-class submarines. The contract includes an option for a 10th vessel over five years

The company’s submarines are designed to attack both land and sea targets with Tomahawk cruise missiles and other weapons. 18 of the attack submarines were delivered in 2019, including $17 billion for the prior installment that had been the Navy’s largest contract.

If exercised, the option for a 10th sub would bring the value of the new contract to $24 billion,

About General Dynamics

General Dynamics, headquartered in Reston, Virginia, is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; IT services; C4ISR solutions; and shipbuilding and ship repair. General Dynamics employs more than 100,000 people worldwide and generated $39.4 billion in revenue in 2019.

Financial Reports/News/Wash100
Perspecta Announces Q1 FY 21 Financial Results; Mac Curtis Quoted
by Sarah Sybert
Published on August 10, 2020
Perspecta Announces Q1 FY 21 Financial Results; Mac Curtis Quoted

Perspecta has announced financial results for the first quarter of fiscal year 2021, which ended July 3, 2020, the company reported on Monday. 

"We are off to a solid start this fiscal year and our first quarter results continue to demonstrate solid execution across the enterprise, delivering on our revenue, adjusted diluted earnings per share and free cash flow conversion expectations," said Mac Curtis, chairman and chief executive officer of Perspecta and six-time Wash100 Award recipient.

Perspecta’s revenue for the quarter was $1.11 billion, up 1 percent compared to the fourth quarter of fiscal year 2020. Income before taxes for the first quarter of fiscal year 2021 was $3 million and Perspecta’s operating margin decreased from 3.8 percent to 0.3 percent year-over-year. 

The company’s net loss was $3 million, or a loss of $0.02 per diluted share and adjusted net income was $76 million for the first quarter of fiscal year 2021, down 11 percent year-over-year. Adjusted EBITDA was $167 million for the first quarter of fiscal year 2021, down 18 percent compared to adjusted EBITDA for the first quarter of fiscal year 2020. 

Adjusted EBITDA margin decreased from 18.4 percent to 15.1 percent. Perspecta’s adjusted diluted EPS for the first quarter of fiscal year 2021 was $0.47, down 10 percent compared to adjusted diluted EPS for the first quarter of fiscal year 2020.

Perspecta reported that the Defense and Intelligence segment revenue of $776 million increased by 3% compared to the first quarter of fiscal year 2020, primarily due to new business wins and growth on existing programs. 

The Civilian and Health Care segment revenue of $332 million decreased by 6 percent compared to the segment's revenue from the comparable period of the prior year due to NASA Agency Consolidated End-User Services and other program wind downs.

Defense and Intelligence adjusted segment profit margin for the first quarter of fiscal year 2021 decreased to 12.6 percent from 15.7 percent in the first quarter of fiscal year 2020. Civilian and Health Care adjusted segment profit margin for the first quarter of fiscal year 2021 improved to 10.2 percent from 9.3 percent in the first quarter of fiscal year 2020. 

Total adjusted segment profit for the first quarter of fiscal year 2021 decreased to $132 million from $151 million in the first quarter of fiscal year 2020.

Perspecta generated $132 million of net cash provided by operating activities in the first quarter of fiscal year 2021. Quarterly adjusted free cash flow was $102 million. At quarter end, Perspecta had $122 million in cash and cash equivalents, $750 million of undrawn capacity in its revolving credit facility, and $2.5 billion in total debt, including $229 million in finance lease obligations. 

The company’s contract awards totaled $1.2 billion in the first quarter of fiscal year 2021. Notably, the company received the U.S. Army Training and Doctrine Command Army Training Information System (ATIS) contract. 

Perspecta was awarded an Other Transaction Agreement from the U.S. Army Training and Doctrine Command to deliver Phase II of the ATIS program including the development, integration, delivery, operation and maintenance of an enterprise capability for Army training and education information. 

"I am pleased with both our operational performance and business development efforts during these challenging market conditions. Additionally, our new business wins build on the positive momentum in both of our segments and we remain dedicated to meeting our customers' needs and generating value for all our stakeholders,” Curtis added. 

About Perspecta Inc.

At Perspecta, we question, we seek and we solve. Perspecta brings a diverse set of capabilities to our U.S. government customers in defense, intelligence, civilian, health care and state and local markets. Our 280+ issued, licensed and pending patents are more than just pieces of paper, they tell the story of our innovation. 

With offerings in mission services, digital transformation and enterprise operations, our team of nearly 14,000 engineers, analysts, investigators and architects work tirelessly to not only execute the mission, but build and support the backbone that enables it. Perspecta was formed to take on big challenges. We are an engine for growth and success and we enable our customers to build a better nation. 

Government Technology/News/Wash100
Report Calls for Significant Increase in Federal AI Research Spending to $25B; Rep. Will Hurd Quoted
by Jane Edwards
Published on August 10, 2020
Report Calls for Significant Increase in Federal AI Research Spending to $25B; Rep. Will Hurd Quoted

A new report from the Bipartisan Policy Center and the Center for New American Security recommends that the federal government immediately double research-and-development spending on artificial intelligence and increase R&D funding for AI efforts to $25 billion by fiscal year 2025.

The report published Thursday offers 14 recommendations to maintain U.S. leadership in AI. BPC and CNAS developed the report in consultation with Reps. Will Hurd (R-Texas) and Robin Kelly (D-Ill.).

“We are calling for a dramatic investment in R&D spending from the federal government,” Hurd, a two-time Wash100 Award winner, told Netgov in an email. “Investing in R&D could mean waiting years before you can see tangible results, which can be difficult in an environment with so many funding priorities. But AI will be a critical enabling technology of the future.”

The report also calls for the U.S. to diversify and expand its computing capacity by convening a task force to form a national compute and data resource; addressing the need to broaden broadband into rural areas; and establishing a competitive grant program for universities to come up with affordable high-performance computers and graphics processing units that are accessible to underserved and rural areas.

The document classified the remaining recommendations into four other principles, including the federal government’s role in incentivizing R&D in the private sector and the need for international cooperation to advance AI R&D efforts.

Cybersecurity/Government Technology/News
William Evanina Offers Update on Foreign Actors’ Activities Ahead of 2020 Elections
by Jane Edwards
Published on August 10, 2020
William Evanina Offers Update on Foreign Actors’ Activities Ahead of 2020 Elections

William Evanina, director of the National Counterintelligence and Security Center, has issued a statement providing updates on attempts by foreign threat actors to influence preferences of voters, undermine the citizens’ confidence in the democratic process and shift U.S. policies ahead of the 2020 U.S. presidential elections.

“Many foreign actors have a preference for who wins the election, which they express through a range of overt and private statements; covert influence efforts are rarer. We are primarily concerned about the ongoing and potential activity by China, Russia, and Iran,” Evanina said in a statement published Friday.

He said Russia is using several measures to disparage former Vice President Joe Biden, while China opposes the idea of President Donald Trump winning the election. Iran is seeking to undermine Trump and the country’s democratic institutions by promoting disinformation on social media.

Evanina noted that the Intelligence Community has and will continue to deliver classified briefings on election threats to the presidential campaigns, political committees and all congressional members.

“We have provided nearly 20 classified election threat briefings to these stakeholders since mid-May 2020,” he said. “We will also keep providing updates to the American public, consistent with our national security obligations.”

DoD/Executive Moves/News/Wash100
Lt. Gen. David Thompson Nominated as Vice Chief of Space Operations
by reynolitoresoor
Published on August 10, 2020
Lt. Gen. David Thompson Nominated as Vice Chief of Space Operations

Lt. Gen. David Thompson, vice commander of the U.S. Space Force, has been nominated by President Trump to serve as the service’s vice chief of space operations.

Defense Secretary and 2020 Wash100 Award winner Mark Esper also announced Thompson’s nomination for promotion to the rank of general in a news release published Friday. Thompson previously served as vice commander of Air Force Space Command, which became the Space Force in December 2019.

He joined the Air Force in 1985 and has held leadership roles, including director of plans and policy and deputy director of global operations at Strategic Command and commander of the aerospace data facility at Buckley Air Force Base in Colorado.

Government Technology/News/Press Releases
Army Begins Dev’t of Mobile App for Squad Leaders
by Matthew Nelson
Published on August 7, 2020
Army Begins Dev’t of Mobile App for Squad Leaders

The U.S. Army has started the development of a mobile application that aims to help leaders manage daily tasks and connect with squad members. The team will collaborate with the Army Futures Command to study various approaches for counseling, sponsorship and training management, the service branch said Wednesday.

Sgt. Maj. Michael Grinston formed a team of 15 non-commissioned officers to help develop the app and provide inputs.

“We’re really looking at how do we give a squad leader an app — like a leader’s book — right there in the palm of their hands,” said Grinston.

The Army plans to unveil the app during the Association of the U.S. Army's yearly meeting in October. The app's development is a part of the This is My Squad effort, a program that seeks to assist squad leaders in fostering trust with their members.

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