Defense Business Briefing -- July 30, 2019

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

This week's top story

Raytheon and United Technologies hold 'joint kickoff' for integration work

Raytheon and United Technologies held a "joint kickoff" event for their integration process, according to a top Raytheon executive.

News & notes

Booz Allen reports record high headcount

Booz Allen Hamilton is "pedal to the metal on hiring," according to its chief executive, as its headcount surged to more than 26,000 in the most recent quarter.

Raytheon CEO says company made 'tune-ups across the board' in missile systems business

Following lower profit margins, Raytheon has taken steps to put "normal best practices" in place in its missile systems business unit, the company's chief executive said.

Raytheon CEO says company sees larger counter-hypersonics market

Raytheon is focused on both hypersonics and counter-hypersonics, but the latter is so far creating a larger market, according to the company's chief executive.

Blumenthal seeks more info on how DOD will review Raytheon-UTC merger

Sen. Richard Blumenthal (D-CT) said he'd like information about the "consideration and criteria" the Pentagon will use when reviewing the planned merger between Raytheon and United Technologies, given the consolidation trend underway.

Esper to recuse himself from decisions on proposed Raytheon-UTC merger

Mark Esper, whom the Senate confirmed as defense secretary today in an overwhelming, bipartisan 90-8 vote, has sent a letter to Sen. Elizabeth Warren (D-MA) pledging to recuse himself from any decisions about a proposed merger between Raytheon, his former employer, and United Technologies.

Major defense contractors report improved sales

Some of the largest defense contractors reported higher quarterly sales and profit.

Lockheed CEO: Since Turkey F-35 decision, company has sought alternate supply sources

Lockheed Martin has already taken actions to address Turkey's suspension from the F-35 program and expects limited "future production or sustainment impact," the contractor's chief executive said.

Lockheed says value of hypersonic contracts now totals more than $3.5 billion

Lockheed Martin, buoyed by two new wins, now estimates the total value of its hypersonic business at more than $3.5 billion, according to the company's chief executive.

Background investigation personnel set to officially shift from OPM to DOD in late September

Federal employees at the National Background Investigation Bureau were notified today their office will be realigned from the Office of Personnel and Management to the Defense Department's Defense Counterintelligence Security Agency on Sept. 29.

Appointments & promotions

Blue Delta adds new board members

Blue Delta Capital Partners said it has added Donna Morea and Deepak Hathiramani to its advisory board.

What's happening

The week ahead

Two major Pentagon nominations are scheduled to be considered this week, while large defense contractors hold a series of earnings calls.

For Inside Defense subscribers

Potential IG investigation becomes latest sticking point in Pentagon's JEDI cloud saga

Republican lawmakers are imploring the Trump administration to delay the award of a massive enterprise cloud contract until the Defense Department inspector general investigates potential conflicts of interest, but DOD says it has already examined those allegations and found they did not affect the acquisition process.

Audit finds DOD agencies failed to check adequacy of contractor cybersecurity

A new Defense Department inspector general audit has found DOD agencies routinely failed to check whether defense contractors were protecting sensitive information on their networks with the required security controls.