As we know, the government contracting industry is a keystone for growth in the National Capital region. Since our region plays host to the seat of the federal government and the heart of the nation’s military, the businesses of the National Capital region must provide many of the solutions and products needed to support such a massive enterprise.
In turn, there is a tremendous opportunity in the region for companies on the cutting edge of technology, ranging from IT and cybersecurity to advanced defense systems, to partner with government and grow.
“The government has always been a critically important market with a budget now in the trillions,” Aaron Binstock, a Partner at Cooley LLP who specializes in the government contracting market, said in a recent article. Moreover, the government spends hundreds of billions of dollars on a wide range of technology products and services each year, and a lot of the spending…is pretty insulated from economic downturn.”
This in turn has meant that the government contracting industry is part of the reason why our region has been somewhat insulated from the economic shocks of COVID-19, compared to our peer metro areas.
As examples of how business, including mergers and acquisitions, continue to strengthen our region, this edition of National Capital Dealbook will focus on deals—just in the past few weeks—that were cemented with the federal government or between government contracting companies.
Northrop Grumman awarded $222.5 million Space Force Contract
Highlighting the potential stability of government contracts, especially through periods of economic slowdown or uncertainty, Northrop Grumman secured $222.5 million to continue supporting the legacy Defense Program Support satellite constellation, which helps detect ballistic nuclear missile launches, detonations, and other space launches.
Launched over ten years ago by Northrop Grumman, the longevity of the program, and Northrop’s involvement in it, reinforces the National Capital area as not just a hub of the government contracting industry, but also a powerful driver of the burgeoning space industry.
Leidos Providing Support to Defense Health Agency
As part of a longstanding, 10-year agreement between the Defense Health Agency and Leidos, the company will provide its MHS Genesis Stage 6 Enterprise Services for $170 million, helping the Agency with program management and enterprise services.
Alion Science and Technology Secures $59 Million Contract with U.S. Navy
Coming on the heels of another $75 million Navy contract, Alion secured a $59 million agreement to support the Navy’s Warfare Development Center (NWDC) as it develops weapons systems for electronic warfare.
Under the contract, Alion will implement advanced threats as part of the development regime. This will help the sea service build capabilities that can overmatch the growing prowess of peer and near-peer competitor forces, something which is especially concerning in the C4ISR areas that Alion will be supporting the Navy in.
National Security Tech Specialist Novetta Expands with Acquisition
Novetta, a McLean-based government contractor that focuses on providing software engineering solutions like machine learning and DevSecOps applications for in national security uses, acquired WaveStrike, which brings its own stable of related solutions into Novetta’s portfolio.
With Baird serving as WaveStrike’s exclusive financial advisor, the union of the two companies demonstrates the changing—and growing—demand for these kinds of solutions in the national security space, which demands solutions to be more quickly and more securely developed to keep up with the threat environment.