Defense Business Briefing -- May 5, 2020

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

This week's top story

DOD readying guidance on how to reimburse contractors feeling COVID-19 money crunch

The Pentagon intends to roll out this month detailed guidance for reimbursing defense contractors whose employees can’t work because of the COVID-19 pandemic, according to a new memo.

News & notes

General Dynamics, Northrop Grumman report some absenteeism during COVID-19 outbreak

The leaders of both General Dynamics and Northrop Grumman said they are seeing some employees fail to show up for work, but said they expect absentee rates to soon improve.

DOD acquisition chief sees positive surge in defense industrial base, but 'slowdown' continues

Pentagon acquisition chief Ellen Lord said that for the first time since the outbreak of COVID-19, more defense companies are re-opening than closing.

Boeing announces job cuts

Boeing's chief executive said the company has begun cutting employees, seeking to reduce its headcount by about 10%.

KBR reports profit growth in government solutions business

KBR said sales in its government solutions business during its most recent quarter totaled $955 million, down 2% from the same three-month period a year earlier.

Oshkosh reports increased defense sales

Oshkosh said sales in its defense segment during the most recent quarter reached $615 million, up 26% from the same three-month period a year earlier.

Mercury Systems reports increased sales, profit

Mercury Systems said sales in its most recent quarter reached $208 million, up 19% from the same three-month period a year earlier.

Aerojet Rocketdyne reports lower sales

Aerojet Rocketdyne said sales in its most recent quarter totaled $476 million, down 3% from the same three-month period a year earlier.

CACI says pandemic cost $10 million in sales in the quarter

CACI International said the coronavirus crisis cost the company about $10 million in its most recent quarter, primarily related to employees and subcontractors who were unable to access their facilities or telework.

Textron reports increased sales at Bell, Textron Systems

Bell and Textron Systems both reported improved quarterly sales.

ManTech says majority of workforce is able to work full-time

ManTech International's chief executive said less than 20% of the company's workforce is facing a situation where they may not be able to work full-time because of coronavirus-related access restrictions.

Appointments and promotions

Aerojet Rocketdyne hires Gowder

Aerojet Rocketdyne said it has named Amy Gowder chief operating officer, effective immediately.

SAIC reshuffles defense leadership

Science Applications International Corp. said it has named Gabe Camarillo to lead its naval sea and air systems operations and Josh Jackson to oversee its Navy and Marine Corps information warfare operations, effective immediately.

ASRC Federal names Felix CEO

ASRC Federal said it has named Jennifer Felix president and chief executive.

Primer AI brings on McGurk and Gordon

Primer AI, a San Francisco-based machine learning company, said it has named Sue Gordon a strategic adviser to its board and Brett McGurk as a member of the board.

What’s happening

The week ahead

The week ahead features two Senate Armed Services Committee hearings as well as several virtual appearances by senior defense officials, include the defense secretary.

For Inside Defense subscribers

Top House defense Dem says DOD doesn't need new industrial base stimulus funds

House Armed Services Committee Chairman Adam Smith (D-WA) said he doesn't think the Defense Department should receive industrial base stimulus money in an upcoming COVID-19 rescue package, but the DOD acquisition chief says the department is planning to ask for billions.

Pentagon 'learning more than ever' about supply chain vulnerabilities during COVID-19 crisis

The Pentagon is gaining new insights about risks to its international supply chain due to efforts to monitor and shore up the defense industrial base during the economic downturn caused by COVID-19.