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Executive Moves/News
Maj. Gen. David Bassett to Lead Defense Contract Management Agency
by Nichols Martin
Published on May 22, 2020
Maj. Gen. David Bassett to Lead Defense Contract Management Agency
David Bassett
David Bassett

Maj. Gen. David Bassett, head of the U.S. Army’s Program Executive Office for Command Control Communications – Tactical, has been appointed to serve as director of the Defense Contract Management Agency, C4ISRNet reported Thursday.

Effective June 4, Bassett will lead the agency tasked with the oversight of defense contracting processes. He will also receive a promotion to the rank of lieutenant general.

The Army executive officer led the management of a variety of technology procurement programs such as those of the Armored Multi-Purpose Vehicle and updates for the Abrams battle tank.

Bassett joined military service after his post-college commissioning in 1988. He first served with the signal corps then went on to the Army’s procurement arm 11 years later.

Financial Reports/News
CAE Reports Q4, FY 2020 Financial Results
by Sarah Sybert
Published on May 22, 2020
CAE Reports Q4, FY 2020 Financial Results
CAE Reports Q4, FY 2020 Financial Results

CAE has announced its fourth quarter and full fiscal year 2020 report, noting strong annual performance despite the impact of the COVID-19 pandemic, the company reported on Friday. 

CAE noted its annual revenue was $3.6 billion, up 10 percent over the prior year. Annual segment operating income was $537.1 million compared to $480.6 million in fiscal year 2019. The company’s annual segment operating income before specific items was $590.4 million

The annual net income attributable to equity holders was $311.4 million, compared to $330.0 million in fiscal year 2019. Net income before specific items was $359.7 million in 2020, compared to $335.2 million last year, a 7 percent EPS increase over the same period last year.

Fourth quarter fiscal 2020 revenue was $977.3 million, down 4 ercent from the fourth quarter last year. Fourth quarter net income attributable to equity holders was $78.4 million compared to $122.3 million last year. Net income before specific items in the fourth quarter was $122.3 million, compared to $127.5 million last year. 

CAE’s free cash flow from continuing operations was $185.1 million for the quarter compared to $116.8 million in the fourth quarter last year. Free cash flow for the year was $351.2 million, compared to $323.8 million in the same period last year. The cash conversion ratio for fiscal year 2020 was 98 percent.

Income taxes this quarter were $26.9 million, representing an effective tax rate of 25 percent, compared to 13 percent for the fourth quarter of fiscal 2019. In the fourth quarter 2020, the income tax rate was impacted by a goodwill impairment charge for the Healthcare segment. 

The company noted that, excluding the effect of the goodwill impairment, the income tax rate would have been 19 percent this quarter. On this basis, the decrease in the tax rate from the fourth quarter of fiscal 2019 was mainly due to the change in the mix of income from various jurisdictions.

Net finance expense this quarter was $38.5 million, $12.8 million higher than the fourth quarter of fiscal 2019, mainly from higher interest on long-term debt due to the issuance of unsecured senior notes in March and December 2019 and higher interest on lease liabilities as a result of the adoption of IFRS 16.

CAE’s growth and maintenance capital expenditures totaled $84.0 million this quarter and $283.4 million for the year. Net debt at the end of the year was $2,365.7 million for a net debt-to-capital ratio(13) of 47.8 percent. 

CAE concluded a new two-year $500.0 million senior unsecured revolving credit facility and expanded its receivable purchase program from $300 million to $400 million. The transactions provide the company access to additional liquidity and further strengthen its financial position.

Return on capital employed (ROCE) was 10.7 percent in the fourth quarter compared to 11.4 percent last quarter and 12.9 percent in the fourth quarter last year, before specific items. Excluding the impacts of the adoption of IFRS 16, ROCE before specific items would have been 10.9 percent this quarter and 11.6 percent last quarter.

About CAE 

CAE is a global leader in training for the civil aviation, defence and security, and healthcare markets. Backed by a 70-year record of industry firsts, we continue to help define global training standards with our innovative virtual-to-live training solutions to make flying safer, maintain defence force readiness and enhance patient safety. 

We have the broadest global presence in the industry, with over 10,000 employees, 160 sites and training locations in over 35 countries. Each year, we train more than 220,000 civil and defence crewmembers, including more than 135,000 pilots, and thousands of healthcare professionals worldwide.

Government Technology/News
Tech Experts Warn Huawei Restrictions Could Negatively Impact U.S. Revenue Stream; Mike Pompeo, Xiaomeng Lu Quoted
by Sarah Sybert
Published on May 22, 2020
Tech Experts Warn Huawei Restrictions Could Negatively Impact U.S. Revenue Stream; Mike Pompeo, Xiaomeng Lu Quoted
Mike Pompeo
Mike Pompeo

Since the Pentagon announced new restrictions on Huawei technology and software to make semiconductors, experts have noted that the blacklist could harm the U.S. revenue stream by limiting the marketplace.  

The U.S. has stated that the change is in preventative measures under the reasoning that Huawei's equipment could be used for Chinese government espionage. Citing national-security concerns, Commerce Department officials put Huawei on an export blacklist.

The proposed rule, which is still under discussion in the Trump administration, would tighten the regulation of shipments to Huawei. The existing rules allow continued shipments to blacklisted companies for products that are made overseas and contain less than 25 percent U.S.-made content. 

Under the new regulations, chip makers using U.S. equipment are now required to have a license before the suppliers ship components to Huawei or any of its subsidiaries. The new rule could disrupt U.S. developers’ ability to obtain vital components for its phones, laptops and smart-devices.

Mike Pompeo, Secretary of State, reported that the restrictions will enhance the integrity of future 5G networks from "untrustworthy" companies, but Xiaomeng Lu, China practice lead at technology consultancy Access Partnership who previously worked at Information Technology Industry Council (ITI), noted that the U.S. restrictions could "shoot American companies in the foot."

Lu stated  on Friday that the restricted regulatory change will cause U.S. chip companies to lose significant sales to the Korean, Taiwanese, Chinese and Japanese competitors. As the revenue stream continues to rise, foreign chipset companies will secure new investments, research and development in the next generation semiconductor technologies without the U.S. as a major competitor. 

"It could harm U.S. companies if they cease to be able to participate effectively and push for their preferred options. It also changes the geopolitical and economic risks faced by Taiwan, a major supplier of chips and electronics for many U.S. firms," Lu added.

Executive Moves/News
Noblis Names Matt Salter BD VP for Noblis FCS; Amr ElSawy, Mile Corrigan Quoted
by Sarah Sybert
Published on May 22, 2020
Noblis Names Matt Salter BD VP for Noblis FCS; Amr ElSawy, Mile Corrigan Quoted
Matt Salter
Matt Salter

Noblis has appointed Matt Salter as vice president of business development for the Noblis Federal Civilian Solutions (FCS) mission area, the company reported on Friday.

“As the business development director for our FCS mission area Matt has contributed to business growth and successfully launched an FCS emerging business development leader program which helped foster employee growth,” said Amr ElSawy, president and CEO, Noblis. “We look forward to his continued contributions to our growth in FCS and his collaboration across Noblis to help us meet our government clients current and future needs.”

Salter will bring his deep expertise and proven track record in business development within the public and private sectors to his new role at Noblis. He has served in a variety of senior leadership positions at the company before his appointment as vice president. 

In his previous roles, Salter advanced IT modernization efforts including cloud, high performance computing, enterprise information management and risk-based decision making.

Before his promotion, Salter served as  Federal Civilian Business Development director, Transportation Systems Senior Manager and Business Development lead, Research Development lead and  Risk and Safety Management Alert System (RASMAS) program manager throughout his 12 year tenure at Noblis. 

As program manager, he led cross functional teams in product development, system implementation and training, and subscription sales to healthcare providers across the U.S. and Canada. Salter earned a bachelor’s degree from George Mason University and holds numerous management and business development certifications.

“Matt has contributed significantly to Noblis’ growth and high bid performance standards in our federal civilian mission area,” said Mile Corrigan, vice president, Noblis Federal Civilian Solutions. “He has applied discipline and rigor across Noblis’ business development lifecycle while mentoring account leaders and capture managers across the enterprise.”

About Noblis

Noblis is a dynamic science, technology, and strategy organization dedicated to creating forward-thinking technical and advisory solutions in the public interest. We bring the best of scientific thought, management, and engineering expertise together in an environment of independence and objectivity to deliver enduring impact on federal missions. 

Noblis works with a wide range of government clients in the defense, intelligence and federal civil sectors. Together with our wholly owned subsidiary, Noblis ESI, we tackle the nation's toughest problems and apply advanced solutions to our clients' most critical missions.

News/Wash100
Gen. Mark Milley Makes Significant Progress in Wash100 Popular Rankings; 10 Days Left to Cast Your Vote
by Sarah Sybert
Published on May 22, 2020
Gen. Mark Milley Makes Significant Progress in Wash100 Popular Rankings; 10 Days Left to Cast Your Vote
Gen. Mark Milley
Gen. Mark Milley

Gen. Mark Milley, chairman of the Joint Chiefs of Staff, is making significant headway in the Wash100 Popular Vote Rankings, as voting draws to a close on June 1st. Climbing three spots since last week, Milley’s momentous progress shows just how important your vote is for these executives of consequence. Cast your vote before June 1st to have your voice heard!

Milley secured his fourth Wash100 Award in 2020 for overseeing over 3 million service members in his new role and for his efforts to preserve regional peace and stability across the globe as well as the safety of U.S. citizens.

He received a 2019 Wash100 Award for supporting development of the service’s competitive technology efforts. His success in those missions led to his nomination as the 20th chairman of the U.S. Joint Chief of Staff in Dec. 2018 to succeed Gen. Joseph Dunford, a former Wash100 Award winner, in the role.

Elsewhere in the rankings, Central Intelligence Agency (CIA) chief information officer (CIO) Juliane Gallina made a notable jump, moving from fifth place to second place within the week. With her move, Gallina knocked CIA director, Gina Haspel t to third place after she held first for a majority of last week.

This year’s sixth annual Wash100 Awards has been the most contested in history, with a record breaking 14,000 votes cast and counting! The fight for first place has escalated to a fever pitch and your votes could be the difference between first and second place. You just have click here to vote before June 1st.

About The Wash100

The Wash100 Award, now in its seventh year, recognizes the most influential executives in the GovCon industry as selected by the Executive Mosaic team in tandem with online nominations from the GovCon community. Representing the best of the private and public sector, the winners demonstrate superior leadership, innovation, reliability, achievement and vision.

Visit the Wash100 site to learn about the other 99 winners of the 2020 Wash100 Award. On the site, you can submit your 10 votes for the GovCon executives of consequence that you believe will have the most significant impact in 2020.

Government Technology/News
Intelsat Launches CellBackhaul to Provide MNOs 4G, 5G Broadband Coverage; Gerry Collins Quoted
by Sarah Sybert
Published on May 22, 2020
Intelsat Launches CellBackhaul to Provide MNOs 4G, 5G Broadband Coverage; Gerry Collins Quoted
Intelsat Launches CellBackhaul to Provide MNOs 4G, 5G Broadband Coverage; Gerry Collins Quoted

Intelsat has launched Intelsat CellBackhaul, an end-to-end managed service that will help Mobile Network Operators (MNOs) provide national, cost-efficient and rapid 4G and 5G broadband coverage, the company reported on Thursday. 

“Our service will enable our U.S. mobile network operators to quickly and cost-effectively expand their coverage and bring connectivity into unserved and underserved areas, including many previously considered unreachable or unprofitable,” said Intelsat Director of Product Management for Networks, Gerry Collins.

Intelsat will enable MNOs to offer mobile broadband coverage, including connecting more subscribers, land areas, roadways and IoT devices. MNOs can utilize Intelsat CellBackhaul for network densification and backup coverage to ensure connectivity. 

The company’s CellBackhaul will provide all of the elements an MNO will require for cellular-backhaul purposes, including network-design consultation, connectivity from the MNO's cell sites to their core network over Intelsat's high-performance integrated space and ground network and 24×7 network-operations support. 

Additionally, the company will offer satellite antenna and modem, plus additional equipment installation and maintenance options and guaranteed Service Level Agreements (SLAs). As the U.S. Federal Communications Commission (FCC) moves forward with its planned $9 billion 5G Rural Fund,  67 percent of the U.S. landmass could be eligible for funds to bring 5G into rural communities.

Intelsat will support connectivity needs of American farms and ranches, offering new opportunities to MNOs. Intelsat has projected to roll out the Intelsat CellBackhaul service to mobile operators in additional regions, including Africa, in late 2020. 

“We innovate to help our customers connect more people, places, and devices they otherwise would not be able to connect, and we do that on a global scale,” added Collins. 

About Intelsat

As the foundational architects of satellite technology, Intelsat operates the world’s largest and most advanced satellite fleet and connectivity infrastructure. We apply our unparalleled expertise and global scale to connect people, businesses, and communities, no matter how difficult the challenge. 

Intelsat is uniquely positioned to help our customers turn possibilities into reality – transformation happens when businesses, governments, and communities use Intelsat's next-generation global network and managed services to build their connected future.

Government Technology/News
Suzette Kent: Federal Agencies Can Now Reconsider Physical Needs, Future Digital Roadmap
by Jane Edwards
Published on May 22, 2020
Suzette Kent: Federal Agencies Can Now Reconsider Physical Needs, Future Digital Roadmap
Suzette Kent
Suzette Kent

Suzette Kent, federal chief information officer and a 2020 Wash100 Award recipient, said there has been an expanded use of digital tools as more federal employees telework due to the coronavirus pandemic and that agencies can now begin to reassess their physical requirements, Federal Times reported Thursday.

“That gives us real data and real feedback — not ‘what if’ scenarios. Federal teams can now reconsider what their physical footprint needs to look like," she said Thursday during a keynote at the virtual Adobe Digital Government Symposium. "But more importantly for all of us, what continued investments we need in our technical infrastructure and what our future road map looks like of digital capabilities.”

Kent said several government agencies have 95 percent of their employees teleworking due to the COVID-19 pandemic, a move that has resulted in an increased use of digital signatures. She added that working from home has not led to a drop in productivity at several agencies.

“In the future it will be mandatory to have a workforce that is technology-enabled, constantly connected and where human interactions can occur potentially without human contact,” she noted.

Contract Awards/News/Wash100
Lt. Gen. Jack Shanahan: JAIC Needs Own Procurement Authority to Speed Up Contracting Process
by Jane Edwards
Published on May 22, 2020
Lt. Gen. Jack Shanahan: JAIC Needs Own Procurement Authority to Speed Up Contracting Process
Jack Shanahan
Jack Shanahan

Lt. Gen. Jack Shanahan, director of the Department of Defense’s (DoD) Joint Artificial Intelligence Center (JAIC) and a 2020 Wash100 Award winner, said he believes JAIC needs to have its own acquisition authorities within the next two years to expedite the process of awarding contracts and delivering AI tools across the military, FedScoop reported Thursday.

Shanahan said Thursday during an AFCEA virtual event that having procurement authorities would allow JAIC to provide a level playing field for nontraditional tech contractors and small businesses when it comes to securing contracts. “Everybody is an equal player,” he added.

He hinted that JAIC will soon issue more requests for information as the center works to ramp up its collaboration with industry on various AI initiatives. JAIC currently awards contracts through agencies that have their own acquisition authorities, including the Defense Innovation Unit and the General Services Administration.

A spokesperson told the publication that Rep. Adam Smith (D-Wash.), chairman of the House Armed Services Committee, supports Shanahan’s call. “As the focal point for AI and despite the young age of the JAIC, Chairman Smith supports the need for JAIC to have the appropriate authorities to ensure they are able to acquire technologies rapidly, without the stunting layers of bureaucracy,” the spokesperson said.

News/Press Releases
Trump Administration to Withdraw From ‘Open Skies’ Accord
by Jane Edwards
Published on May 22, 2020
Trump Administration to Withdraw From ‘Open Skies’ Accord
The White House
The White House

The White House has initiated a move to withdraw from a 1992 treaty designed to reduce the risk of war between Western countries and Russia by allowing countries to perform reconnaissance flights over each other’s territories to reassure that an attack is not being prepared, The Wall Street Journal reported Thursday.

Senior U.S. officials were slated Thursday to issue a notice to allied countries that it would withdraw from the Open Skies treaty in six months.

“Russia didn’t adhere to the treaty. So until they adhere, we will pull out,” President Trump told reporters Thursday. “But there’s a very good chance we’ll make a new agreement or do something to put that agreement back together.”

There are more than 30 state parties to the Open Skies accord, which took effect in 2002. The decision came a year after the Trump administration moved to leave the Intermediate-range Nuclear Forces Treaty between the U.S. and the Soviet Union.

News/Wash100
James Geurts: Attendance Increasing for Navy, Supply Chain Personnel
by Brenda Marie Rivers
Published on May 21, 2020
James Geurts: Attendance Increasing for Navy, Supply Chain Personnel
James Geurts
James Geurts

James Geurts, the U.S. Navy’s acquisition chief and 2020 Wash100 Award recipient, said he is “seeing many more” suppliers continue operations following closures resulting from the ongoing COVID-19 pandemic, National Defense Magazine reported Wednesday.

Geurts, who serves as assistant secretary of the Navy for research, development and acquisition, told reporters at a teleconference that over 200 suppliers stopped operations over the past six to eight weeks. The Navy has been monitoring over 10K firms in the defense industrial base amid the health crisis, he noted.

“As we've gone through the crisis, we have not had to shut down any of our shipyards — both private or public — and as I look at the case count, we are having [a] relatively flat number of cases and more folks coming back than getting infected,” he said.

According to Geurts, attendance for Navy personnel is also “creeping back up” after a 50 percent drop.

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ExecutiveGov, published by Executive Mosaic, is a site dedicated to the news and headlines in the federal government. ExecutiveGov serves as a news source for the hot topics and issues facing federal government departments and agencies such as Gov 2.0, cybersecurity policy, health IT, green IT and national security. We also aim to spotlight various federal government employees and interview key government executives whose impact resonates beyond their agency.

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