Subsystem Technologies eyes defense, intell growth with KMS acquisition

Federal IT contractor Subsystem Technologies has acquired KMS Solutions to further grow in the defense market and also add an intelligence community footprint.

Terms of the deal were undisclosed and KMS, a minority and woman-owned business, will operate as a subsidiary of Arlington, Va.-based Subsystem. KMS' key market areas include the defense and intelligence communities along with other federal technology and human capital management programs.

Deltek data indicates unclassified federal contract obligations for Subsystem Technologies and KMS Solutions totaled $29.9 million and $6.6 million, respectively, for the government's 2016 fiscal year ended Sept. 30.

Founded in 2005, KMS counts the Navy as a main customer and received 91 percent of fiscal 2016 obligations from that agency, according to Deltek. The company's services include systems engineering, integration, cybersecurity and information assurance for classified computer systems.

Subsystem offers engineering, cyber, management consulting and other IT services to defense and civilian agencies. The company's unclassified 2016 prime dollars primarily came from the Army at $19.7 million and the Transportation Department at $9.3 million.

Subsystem's contract portfolio includes the OASIS professional services vehicle's small business portion, while KMS holds a position on the Navy's Seaport-e professional services vehicle.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.

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