Defense Business Briefing – Aug. 4, 2020

Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.

This week's top story

General Dynamics has seen 'most painful' impact of COVID-19 in European IT program

General Dynamics reported a $40 million charge in a program at its information technology business in its most recent quarter because the company is unable to get its employees to the European worksite, according to its chief executive.

News & notes

Northrop CEO says she didn't sign recent letters because COVID-19 impact was 'less significant'

The chief executive of Northrop Grumman said she chose not to sign recent letters sent to Capitol Hill urging funding for coronavirus relief because her company has seen a reduced impact and she wants to focus on continuing to limit the damage.

Contractors report sales, profit increases

Several defense contractors said sales rose during the most recent quarter, despite the ongoing pandemic.

Defense industry not sold on Trump's drone export deregulation efforts

The Trump administration is touting its export policy for unmanned aerial systems as a win for American companies, but some industry representatives say the government still hasn't fixed ongoing restrictions that hinder business.

DBB to discuss small business mentoring program this week

The Defense Business Board plans to meet online this week to talk about a mentor-protégé program it is assessing, according to a Federal Register notice.

Pentagon strikes deal with North American Forgemasters

The Defense Department said it has entered into a $31 million agreement with New Castle, PA-based North American Forgemasters to "sustain and increase critical industrial base capability for domestic production of ultra-large iron and steel forging in support of the U.S. Navy and Naval Nuclear Propulsion Program."

Booz Allen reports increased sales and profit

Booz Allen Hamilton said sales in its most recent quarter were just shy of $2 billion, up about 7% from the same three-month period a year earlier.

L3Harris reports growth in maritime business

L3Harris Technologies said it has seen recent growth in its maritime business, pointing to a new Navy contract win.

Boeing reports tanker charge in defense business

Boeing said it recorded a $151 million charge during the most recent quarter on its KC-46A tanker program "primarily driven by additional fixed cost allocation resulting from lower commercial airplane production volume due to COVID-19."

Aerojet Rocketdyne reports increased sales

Aerojet Rocketdyne said sales in its most recent quarter totaled $512 million, up nearly 6% from the same three-month period a year earlier.

Appointments & promotions

Perspecta hires DiPippa

Perspecta said it has named Damian DiPippa senior vice president and general manager of its intelligence group.

SAIC hires Easter

Science Applications International Corp. said it has named former defense official Steffanie Easter vice president of strategy and planning in its defense systems group.

What's happening

The week ahead

Defense contractors continue to report quarterly earnings this week, while the Space and Missile Defense Symposium goes virtual. The Senate Armed Services Committee is slated to consider several Pentagon nominees.

For Inside Defense subscribers

Pentagon issues contracting guidance for waivers on banned Huawei, ZTE services

The Defense Department has issued guidance for its procurement units on how to process and review waiver requests for contractors who wish to continue using banned equipment and services from Chinese companies Huawei and ZTE.

DOD enters 'next phase' of digital modernization, while teleworking could become the norm

The Pentagon has entered a new phase in its digital modernization plan, with several areas to watch in the coming months including increased agile software development, the award of fifth-generation wireless technology prototype contracts, the release of a new data strategy and decisions around a "sustained" teleworking policy.