CSRA Merger with Gen Dyn.


#1

So I just learned the General Dynamics and CSRA are merging. Anyone have any insight on this? Is it good news?


#2

I dont think it is a merger so much as GD is buying CSRA. And CSRA just came into existence not too long ago as the merger of CSC and SRA as I recall.

My take on it is that GD must have had a lot of cash and they thought that getting into the “services” business was a good play. I think GD already had a lot of services work but they also manufacture things.

There may be some cuts as they seek to leverage synergy and other such babblespeak goals.


#3

This is kind of interesting . . . A few years ago, CSC divested itself of a service arm working on DoD contracts. The division was spun off as MSE and then purchased by ASRC and became ASRC Federal.

CSC’s explanation was that their DoD contracts were preventing them from bidding on some other government work.


#4

The other interesting bit in all this is that another company, Vencore, itself the result of a spinoff of a spinoff of Lockheed Martin, bought one of the other contractors doing BI work for OPM. Was it Keypoint? google will tell us… anyway, that’s not all that the company did but it is another example of a company with contract BI work being bought up. Maybe it makes for an attractive target.

Yes, Vencore and Keypoint Government services will merge… but its not that simple… Vencore and Keypoint were already owned by the same venture capital firm… and now some other company is involved.

Could this have anything to do with the new boom in the defense budget? Nahhh…


#5

Looks like Gen Dynamics bought CSRA primarily for their large USG IT business and make them the big dog on the block along with their existing submarine, ship and aircraft manufacturing. I think the BI part is not a major concern in the deal but I would hope that GD decides to keep it. Only time will tell as GD evaluates each subset of CSRA.


#6

It’s a little hard to believe that a DoD contractor would be allowed to own a company doing BI work. There is too much chance of them cutting corners to approve their own employees at the expense of the employees of other companies.


#7

I wonder what kind of controls will be put in place to manage that.


#8

Yea you’d think they would be less of a conflict of interest. I guess the process would be need to hire honest, thorough people to circumvent any funny biz! I start with CSRA next week so this definitely caught my eye. Kinda put me on high alert as I’m entering the BI field and want to stay employed at all times!!


#9

Investigators with CRSA will not be allowed to conduct investigations for anyone tied to Gen Dyn. It would be a conflict of interest. This is the same for all of the companies in the BI industry. IF CSRA would get a case tied to Gen Dyn they would turn it back to NBIB, and it would either be conducted by the feds or turned over to one of the other companies.


#10

@Mwhite, if you have a second can you jump over to Investigation and Adjudication Process and answer a couple questions since you are 3-6 weeks ahead of us?
Thx!


#11

Just heard on the news that another bidder for CSRA is CACI. The radio report said CSRA favors the offer from GD. Would be interesting if CACI did buy them and create an even bigger contractor BI entity.

Hot off the presses:

WASHINGTON — Falls Church-based General Dynamics has raised its all-cash offer for information technology contractor CSRA two days after smaller government contractor CACI made a bid that topped General Dynamics’ original offer.

Says the CACI bid was higher but CSRA management feels better about GD.

General Dynamics sweetens offer for CSRA, fending off CACI bid

Oh and the article mentions CSRA’s “cybersecurity and data-analytics business and information technology contracts” but no mention of background investigations :frowning_face:


#12

GDIT countered that offer from CACI today. They are not playing around!


#13

Mwhite - no need to worry about employment in the BI field. If you can stand the career field - you will have work. This is (and has been for decades) a chronically understaffed profession.