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Government Technology/News
NSF Taps University of Illinois Supercomputing Center for Computing System Deployment
by Nichols Martin
Published on June 5, 2020
NSF Taps University of Illinois Supercomputing Center for Computing System Deployment

The University of Illinois at Urbana-Champaign's National Center for Supercomputing Applications has received a $10 million award to activate and operate a new advanced computing system for the National Science Foundation (NSF). NCSA said Wednesday that its Delta computing system would support the data processing needs of advanced research areas.

The center will link the Delta system with the country's cyber infrastructure ecosystem through the help of NSF's Extreme Science and Engineering Discovery Environment or XSEDE that facilitates digital services coordination.

"With Delta, we will help emerging research areas, such as computational archaeology and digital agriculture, take advantage of new computing methods and hardware while simultaneously making advanced computing systems more usable and accessible to a broad community of researchers," said William Gropp, NCSA director.

Delta will leverage modern graphics and central processing unit technologies to bolster computing power.

News/Press Releases
Trump Signs Executive Order on COVID-19 Economic Recovery Authorities
by Brenda Marie Rivers
Published on June 5, 2020
Trump Signs Executive Order on COVID-19 Economic Recovery Authorities

President Trump has issued an executive order directing government agencies to accelerate infrastructure investments and exercise legal authorities to “respond to the full dimensions" of the COVID-19 pandemic and its impact to the U.S. economy.

The White House on Thursday published the EO mandating agencies and executive departments to use their authorities to return Americans to work while providing “appropriate protection” for public health, natural resources and the environment.

Under the directive, the secretary of transportation must exercise emergency authorities and submit a progress report on expedited projects to the Office of Management and Budget (OMB), Council on Environmental Quality (CEQ) and  assistant to the president for economic policy.

The EO additionally directs the U.S. Army Corps of Engineers (USACE) to speed up work and completion of civil works projects. USACE may also launch projects in advance, according to the document.

Other directives include the acceleration of infrastructure, environmental and energy-related activities in federal lands under the oversight of the secretaries of defense, agriculture and interior.

“The need for continued progress in this streamlining effort is all the more acute now, due to the ongoing economic crisis,” the EO states. “Unnecessary regulatory delays will deny our citizens opportunities for jobs and economic security, keeping millions of Americans out of work and hindering our economic recovery from the national emergency.”

Financial Reports/News
SAIC Announces Q1 Results; Nazzic Keene Quoted
by Sarah Sybert
Published on June 5, 2020
SAIC Announces Q1 Results; Nazzic Keene Quoted

Science Applications International Corporation (SAIC) has announced results for the first quarter ended May 1, 2020, the company reported on Friday.

“SAIC continues to operate as an essential business in a resilient market through the COVID-19 pandemic. Our focused response prioritizes our employees' safety and well-being, ensuring on-going, high-quality customer performance, and protecting shareholder interests," said SAIC CEO, Nazzic Keene and 2020 Wash100 Award recipient. 

SAIC has estimated the first quarter impact from the COVID-19 pandemic to be approximately $33 million of revenue, $8 million of adjusted EBITDA and an immaterial net impact to free cash flow. 

These impacts were primarily driven by SAIC employees and subcontractors unable to access facilities to perform on customer contracts and uncertain profit recovery on ready-state labor. Since the onset of the COVID-19 pandemic, SAIC has operated as an essential business, continuing to operate in a resilient market and business model.

SAIC’s revenues for the quarter increased $142 million compared to the prior year quarter due to the acquisition of Unisys Federal, revenue on new contracts primarily supporting the U.S. Air Force and intelligence community, and increased volume on existing programs, partially offset by the impacts of the COVID-19 pandemic. 

The company’s operating income as a percentage of revenues of 4.4 percent, decreased from 5.8 percent in the comparable prior year period, due to higher acquisition and integration costs and the impacts of COVID-19, partially offset by the acquisition of Unisys Federal.

SAIC’s net income attributable to common stockholders for the quarter decreased $19 million as compared to the same period in the prior year primarily due to decreased operating income and higher interest expense.

Adjusted EBITDA as a percentage of revenues for the quarter decreased to 7.8 percent of revenues from 8.4 percent of revenues in the prior year quarter driven by the impacts of COVID-19 and lower current quarter net profit write-ups, partially offset by the acquisition of Unisys Federal.

Diluted earnings per share for the quarter was $0.62 compared to $0.92 in the prior year quarter. Adjusted diluted earnings per share for the quarter was $1.38 compared to $1.36 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 58.5 million from 60.0 million during the prior year quarter, primarily due to shares directly repurchased from a private equity holder in the second quarter of fiscal year 2020, as well as plan share repurchases in fiscal year 2020.

SAIC’s cash flows provided by operating activities for the first quarter were $367 million, an increase of $189 million compared to the same period in the prior year. The improvement is primarily due to $200 million of sales of receivables under the Master Accounts Receivable Purchase Agreement (MARPA) and cash provided from operating activities of Unisys Federal. 

During the quarter, SAIC deployed $39 million of capital, consisting of $23 million in cash dividends and $16 million of mandatory debt repayment. There were no plan share repurchases or voluntary debt repayments in the first quarter. 

The company's Board of Directors declared a cash dividend of $0.37 per share of the Company's common stock payable on July 31, 2020 to stockholders of record on July 17, 2020. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

“Our strong first quarter results demonstrate the resiliency of our market and business model, providing organic revenue growth, consistent profitability, and strong cash generation,” added Keene. 

About SAIC

SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. 

With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.

News/Press Releases
FDA, NIH, NCI Releases Test Performance Data from Serological Test Kits Regarding COVID-19; Stephen Hahn, Norman Sharpless Quoted
by Sarah Sybert
Published on June 5, 2020
FDA, NIH, NCI Releases Test Performance Data from Serological Test Kits Regarding COVID-19; Stephen Hahn, Norman Sharpless Quoted

The U.S. Food and Drug Administration (FDA) has released test performance data from four more serological tests kits from its independent performance validation study effort with the National Institutes of Health's (NIH) National Cancer Institute (NCI), the administration reported on Friday. 

"These data are the result of an important cross-government effort," said FDA commissioner Stephen M. Hahn, M.D. "There's been incredible teamwork across scientists at the FDA, NCI, CDC and BARDA and I'm glad to be sharing the data with the wider research community. By posting these data publicly, we're advancing not only Americans' access to trustworthy tests, but also the wider field of research into serology testing."

Through the collaboration of FDA, NIH, Centers for Disease Control and Prevention (CDC) and Biomedical Advanced Research and Development Authority (BARDA), the team released the first round of results. 

An intergovernmental team will leverage NCI's capability for the federal government to independently evaluate certain antibody tests, including antibody tests that were not the subject of an EUA or pre-EUA, as well as those that were under FDA review. The FDA has shared data from four additional tests.

The testing was performed at the Frederick National Laboratory for Cancer Research to evaluate serological tests. NIH National Institute of Allergy and Infectious Diseases provided reference samples and materials used in the evaluation. Other contributors include the Mount Sinai Health System, the Icahn School of Medicine at Mount Sinai, members of the Departments of Microbiology and Pathology and the Vitalant Research Institute.

"We're pleased to step up and provide NCI's laboratory capacity and expertise to support this crucial partnership to further our understanding of antibody test performances," said NCI director Norman Sharpless, M.D. "This speaks to the terrific convening power of the federal government and highlights the strength of cross-agency collaboration within the Department of Health and Human Services. NCI will continue to play its part by examining these kits and generating important data that supports FDA's decision-making."

About FDA

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation's food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.

Acquisition & Procurement/M&A Activity/News
CPI Acquires General Dynamics Antenna Systems Business, SATCOM, to Grow Offerings; Bob Fickett Quoted
by Sarah Sybert
Published on June 5, 2020
CPI Acquires General Dynamics Antenna Systems Business, SATCOM, to Grow Offerings; Bob Fickett Quoted

Communications & Power Industries LLC (CPI) has acquired SATCOM Technologies, the antenna systems business of General Dynamics Mission Systems, CPI reported on Friday. The transaction was funded using a new committed debt financing. 

"With the addition of CPI Satcom & Antenna Technologies, our antenna systems portfolio now ranges from VSAT (very small aperture terminal) antennas to portable common data link antennas to very large, complex earth station antennas,” said Bob Fickett, president and chief executive officer of CPI. 

General Dynamics Mission Systems consists of approximately one thousand employees and has facilities in the United States, Europe and India. After the acquisition, the division will work under the name CPI Satcom & Antenna Technologies Inc. The acquired company will be owned and operated as a subsidiary of CPI, and will work closely with CPI's existing antenna systems businesses, CPI Malibu Division and Orbital Systems.  

“We offer a wide selection of related products, including feed components, satcom amplifiers, converters and antenna control systems to support defense, communications, astronomy, earth observation and scientific applications," Fickett added.

CPI Satcom & Antenna Technologies will offer customers a broad and deep portfolio of satellite communications antenna systems and related products for use in defense, communications and scientific applications. 

"CPI remains committed to providing a broad selection of proven, reliable satellite communications products to meet the needs of commercial, government and military customers around the world, and this acquisition enables us to further strengthen our satcom product offering," concluded Fickett.

President of General Dynamics Mission Systems, Chris Brady, recently received his 2020 Wash100 Award for his work to advance and innovate enterprise data, infrastructure systems and defense programs to help and protect federal agencies, military customers and our nation’s national security and defense.

During an interview with Politico in July 2019, Brady explained that his unit develops a number of satellite payloads for classified programs that are critical to U.S. defense efforts. He noted that the company has developed GPS receivers found in U.S. satellites and is involved in the ground segment for NASA’s Space Network Ground Segment Sustainment program. With the acquisition, CPI will expand upon the company’s satellite offerings. 

About Communications & Power Industries

Communications & Power Industries (CPI) is a global manufacturer of electronic components and subsystems focused primarily on communications and defense markets. With a heritage of technological excellence that spans decades, CPI develops, manufactures and globally distributes innovative and reliable technology solutions used in the generation, amplification, transmission and reception of microwave signals for commercial and military applications. 

CPI serves customers in the communications, defense, medical, industrial and scientific markets. CPI consists of Communications & Power Industries LLC, headquartered in Palo Alto, California, and Communications & Power Industries Canada Inc., located in Ontario, Canada.

Government Technology/News/Wash100
Christopher Krebs: Every Intell Service Expected to Aim at COVID-19 Research
by Jane Edwards
Published on June 5, 2020
Christopher Krebs: Every Intell Service Expected to Aim at COVID-19 Research

Christopher Krebs, director of the Cybersecurity and Infrastructure Security Agency (CISA) and a 2020 Wash100 Award winner, said he expects “every intelligence service” to home in and steal COVID-19-related data and research, The Hill reported Wednesday.

“We do expect every intelligence service to be in the mix here,” Krebs said on an episode of CBS’ “Intelligence Matters” podcast posted Wednesday. "The Chinese have obviously been one of the more brazen in terms of their approach, but others are in the game, too.”

He also shared his insights on ransomware attacks and discussed the “destructive” nature of cyber attacks.

“You're seeing a situation where a hospital could be impacted and their network's offline, they can't conduct clinical operations,” Krebs said. “So we're absolutely seeing destructive attacks across the border right now.”

Government Technology/News
Sen. Maggie Hassan Wants Info on Agencies’ IT Modernization Plans, Priorities
by Jane Edwards
Published on June 5, 2020
Sen. Maggie Hassan Wants Info on Agencies’ IT Modernization Plans, Priorities

Sen. Maggie Hassan (D-N.H.), ranking member of the Senate Homeland Security and Governmental Affairs’ federal spending oversight and emergency management subcommittee, has asked federal agencies about their efforts to modernize their legacy information technology systems, Nextgov reported Thursday.

Hassan sent letters to the departments of Treasury, Defense and Homeland Security and seven other federal agencies to respond to six questions with regard to their IT modernization efforts by Aug. 3.

The lawmaker wants agencies to provide information on their comprehensive IT modernization plans, five modernization priorities, status of legacy system modernization, initiatives to phase out the use of legacy platforms, coordination between the office of the chief information officer and the chief financial officer’s office on IT acquisitions and how Congress can help facilitate IT system modernization.

“The public health emergency caused by COVID-19 underscores the need for federal agencies to invest in modernizing current IT systems that cannot meet mission expectations in a crisis,” Hassan wrote in the letter. “Failing to do so could result in costly errors, security vulnerabilities, and inability to serve the American people.”

Hassan said the federal government spent approximately $29 billion on maintenance of legacy IT systems in fiscal year 2019.

Government Technology/News/Wash100
Will Roper on Air Force’s AFVentures Program
by Jane Edwards
Published on June 5, 2020
Will Roper on Air Force’s AFVentures Program

Will Roper, assistant secretary for acquisition, technology and logistics at the U.S. Air Force and a 2020 Wash100 Award winner, said the service is bringing in novel technologies from small businesses through its AFVentures initiative, National Defense reported Thursday.

AFVentures is a partnership between AFWERX and the Air Force Small Businesses Innovation Research/Small Business Technology Transfer Program that seeks to support small companies with technologies that have potential military applications.

“The process as it exists today, does about 1,000 very small entry level awards to get companies in,” Roper said Thursday during a Decode webinar. “The second step is where we move up to medium-sized bets.”

Awards that are considered “small bets” range between $50,000 and $75,000, while “medium bets” range from $1 to 3 million and “big bet” awards are between $5 and 50 million. 

“If they select you for one of those medium bets, well, that’s a pretty good indication of a product market set,” Roper said. “The fact that we selected you means you have a better chance of getting access to that broader market we represent."

Government Technology/News
DIA Produces Initial Output From Data Analytics Program; Lt. Gen. Robert Ashley Quoted
by Nichols Martin
Published on June 4, 2020
DIA Produces Initial Output From Data Analytics Program; Lt. Gen. Robert Ashley Quoted

The Defense Intelligence Agency (DLA) has generated the minimum viable product of a program that aims to develop a rapid data processing system. The Machine-assisted Analytic Rapid-repository System of MARS program has produced initial foreign infrastructure data with coverage on roads, information technology applications and various structures, DIA said Wednesday.

The military uses this data to inform operational planning, targeting and other related activities. MARS' initial product used analytics on infrastructure information with respect to the U.S. military's multiple operational aspects. The program accelerates the process of updating records and supports military decision making.

“With MARS, the ultimate goal is to create a military intelligence environment for the warfighter and analyst to easily discover information, just as the internet delivers information to consumers," said Lt. Gen. Robert Ashley, DIA director and two-time Wash100 Award recipient.

The agency wants to leverage modern technology for bolstered intelligence delivery.

Government Technology/News
Jolly Green II Helicopter Undergoes Joint Testing With Apache
by Nichols Martin
Published on June 4, 2020
Jolly Green II Helicopter Undergoes Joint Testing With Apache

The U.S. Air Force's HH-60W Jolly Green II rescue helicopter has completed a joint flight test with the AH-64 Apache from Eglin Air Force Base, marking a new developmental milestone.

Jolly Green II led the Apache, which came from Redstone Army Test Center in Alabama, during the test mission, USAF said Wednesday.

"The unique configuration of the AH-64 Apache gave our team the opportunity to test capabilities of the HH-60W in ways normally not possible here,” said Christopher Martin, lead engineer of the 413th Flight Test Squadron that works with Sikorsky Aircraft personnel to conduct HH-60W integrated tests. Sikorsky is a subsidiary of Lockheed Martin.

The joint test's completion follows Jolly Green II's other milestones achieved this year such as communications and extreme environment testing.

“We are very proud of the work our integrated test team accomplished in 2020 despite a myriad of operational restrictions due to COVID-19,” said Shawn Hammond, program manager for HH-60W tests.

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