Northrop Grumman, SAIC restructure Amsec joint venture

Northrop Grumman Corp. and Science Applications International Corp. have unveiled a restructuring plan for Amsec LLC, their joint venture that provides engineering, logistics and technical support primarily to Navy ship and aviation programs.

The plan will divide the company along customer and product lines, according to the companies.

The companies created Amsec as a joint venture in 1999. It has since grown from $100 million in revenue in 2000 to approximately $500 million in fiscal 2007, which ended January 2007.

Under the restructuring, Northrop Grumman's Newport News, Va., sector will retain the ship engineering, logistics and technical services businesses under the Amsec name.

SAIC will assume Amsec's aviation, combat systems and strike force integration services, including Amsec subsidiary Eagan, McAllister Associates Inc., a command, control, communications, computers, intelligence, surveillance and reconnaissance, information technology and naval aviation support firm. It will become a wholly owned subsidiary of SAIC integrated within its Defense Solutions Group.

In addition, SAIC will receive Amsec's Strike Force Systems and Integration Division, which provides combat systems ? including the Navy's Aegis guided missile system ? integration, training and engineering support to major Navy customers. The division will also be integrated into SAIC's Defense Solutions Group.

Following completion of the restructuring, Amsec will operate as a separate business unit of Northrop Grumman's Newport News sector, headed by Irwin Edenzon, vice president of technology development and fleet support.

Northrop Grumman said the restructuring, which is expected to be completed in mid-July, will not affect its financial results.

Northrop Grumman of Los Angeles has 122,000 employees and had annual sales of $30 billion in 2006. The company No. 3 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • VIDEO: Explore the 2019 M&A Trends

    Editor Nick Wakeman interviews Kevin DeSanto of the investment bank KippsDeSanto about the highlights of their annual M&A survey and trends driving acquisitions in the federal space. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman and senior staff writer Ross Wilkers discuss the major news events so far in 2019 and what major trends are on the horizon. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.