Alliant Techsystems announced today that it has negotiated definitive agreements with Canadian-based MacDonald, Dettwiler and Associates to acquire its Information Systems and Geospatial Information Services businesses for C$1.325 billion (about $1.318 billion). MDA’s IS/GIS business has more than 1,900 employees and estimated FY 2009 revenues of approximately USD$ 500 million, and is a global leader in space-based radar systems, space robotics (the robotic arms for the NASA Space Shuttle and International Space Station are MDA products), satellite systems, and imaging satellite ground stations and processing; with additional world-class capabilities in satellite payloads, C4ISR, and geospatial services.
ATK’s rationale for the acquisition was straightforward:
The US Naval Facilities Engineering Command Southwest in San Diego, CA has awarded a number of firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award construction contracts for commercial and institutional building construction at various locations within its area of responsibility. In fact, it has awarded 2 very similar sets of contracts to the same set of providers. the only thing that differs is their exact areas of performance within NAVFAC SW.
The term of the contracts are not to exceed 60 months, with an expected completion date of January 2009 for the 1-year base period, and January 2013 if all 4 option years are exercised. For each of these 2 contract sets, the maximum dollar value over all 5 possible years, for all 6 winning contracts combined, is $500 million, with a guaranteed minimum of $25,000 for each contract. In practice, this means a grand total of $1 billion for all 6 contractors combined, with a guaranteed minimum of $50,000 for each. These 6 contractors may now compete for individual task orders under the terms and conditions of the awarded contracts. The winners are:
Northrop Grumman Electronic Systems-Marine Systems in Sunnyvale, CA received a $20.5 million firm-fixed-price contract to design and produce replacement gears for the propulsion system in the Navy’s 4 T-AOE 6-class fast combat support ships, USNS Supply [T-AOE 6], USNS Rainier [T-AOE 7], USNS Arctic [T-AOE 8] and USNS Bridge [T-AOE 10]. Fast combat support ships provide fuel, ammunition, food and other cargo to U.S. Navy ships at sea worldwide. The new hardware will replace components of the ships’ main reduction gear, which converts and transmits engine power to the propeller. The contract includes 5 options for installation support and 1 option for the purchase of additional hardware, which, if exercised, would bring the cumulative value of this contract to $22.4 million.
Work will be performed at various locations worldwide and is expected to be complete by September 2013. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured with 2 offers received. The solicitation was issued on an unrestricted basis, using full and open competitive procedures via the Military Sealift Command, Navy Electronic Commerce Online and Federal Business Opportunities web pages. The U.S. Navy’s Military Sealift Command in Washington, DC issued the contract (N00033-08-C-7501).
