Army Radio Contract Drawing Big Names, Partners Into Competition

Army Radio Contract Drawing Big Names, Partners Into Competition - top government contractors - best government contracting eventOn Dec. 20, ExecutiveBiz reported that ITT Exelis and Northrop Grumman will partner to compete for an upcoming contract to improve radio communication within Army vehicles.

In today’s Washington Post, Marjorie Censer writes that the team can expect stiff competition for the award as “contractors are lining up for a rare opportunity to win a spot on a military radio program.”

Chris Brady, vice president of assured communications for General Dynamics‘ C4 systems business unit confirmed to the Post that General Dynamics will enter a bid.

“It's a significant opportunity to break into one of these funded programs,“ Brady said.

Brady said the company may partner as a prime contractor on its bid, but is very wary of costs.

“A principal consideration here will be unit cost, and every time you add members to your team, you have to consider the ripple of [general and administrative expense] and markups,“ Brady told the Post. “That's cost that you would be well served to avoid in a competition like this.“

A representative of Harris Corp. also told Censer that while the company expects to enter a bid, it is also cost wary.

“Affordability is going to be, I think, one of the keystone requirements,“ said Dennis Moran, vice president for government business development in Harris's radio communications unit.

However, the Lexington Institute‘s Loren Thompson told Censer that as “there aren't very many big new starts in military electronics… it's really crucial for the leading companies to put together the strongest possible teams if they want to have a future.“

Alliances are going to be increasingly important due to reduced spending and the amount of competition in the military electronics industry, Thompson said.

“When the technologies and skills are fungible, the teams will coalesce and come apart with amazing agility depending on how opportunities emerge.“

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