DynCorp Awarded $4.6 billion Translation Contract from US Army
by Lauren Nemec
It looks like L-3 Communications' days in the sunny #1 spot of the Common Sense Advisory's Top 20 Translation Companies are numbered... or are they?
It was announced last Friday, December 9th that L-3's rival, DynCorp International Inc., has been awarded a disputed $4.6 billion contract from the U.S. Intelligence and Security Command. The contract was first awarded to DynCorp in December of 2006, but L-3 Communications protested the move through the Government Accountability Office.
When reporting on the top language services providers of 2006 back in May of 2007, the Common Sense Advisory pointed out that a contract loss for L-3 would likely boot the company off the top 20, saying "The U.S. Army voted L-3 off the Top 20. In late December 2006 the U.S. Army awarded DynCorp International and McNeil Technologies a five-year contract worth up to US$4.6 billion to provide linguists to the U.S. military in Iraq. L-3 (number 1) was the Army’s incumbent provider. The company could drop out of the Top 20 altogether if it loses its protest, while McNeil – on last year’s list, off this year – could be at the top of the heap next year. L-3 violated a cardinal rule of business by putting all of its wars in one basket."
Fortunately for L-3 Communications and its shareholders, L-3's contract with the army had a series of extensions while the protested $4.6 billion contract was being sorted out, netting them almost an entire year of revenues that otherwise would not have been. According to the Motley Fool, "The failure to win a re-up or a contract extension will not affect [L-3's] previous earnings guidance, which L-3 reaffirmed today: $13.7 billion in 2007 revenue, rising to between $14 billion and $14.2 billion next year; earnings of about $5.88 per share this year and $6.48 next year; and free cash flow of $1.1 billion or better in both years."
Dyncorp entered into a joint venture with McNeil Technologies to create "Global Linguistic Solutions (GLS)",which will provide translation and interpretation services to the U.S. Army in Iraq and other governmental agencies supporting "Operation Iraqi Freedom".
Further reading:
Common Sense Advisory's "Ranking of Top 20 Translation Companies" report for 2006
Yahoo's "L-3 Not Awarded Linguist Contract"
Forbes' "The Troops Support DynCorp"
The Motley Fool's "L-3's Anti-Pyrrhic Loss"
It looks like L-3 Communications' days in the sunny #1 spot of the Common Sense Advisory's Top 20 Translation Companies are numbered... or are they?
It was announced last Friday, December 9th that L-3's rival, DynCorp International Inc., has been awarded a disputed $4.6 billion contract from the U.S. Intelligence and Security Command. The contract was first awarded to DynCorp in December of 2006, but L-3 Communications protested the move through the Government Accountability Office.
When reporting on the top language services providers of 2006 back in May of 2007, the Common Sense Advisory pointed out that a contract loss for L-3 would likely boot the company off the top 20, saying "The U.S. Army voted L-3 off the Top 20. In late December 2006 the U.S. Army awarded DynCorp International and McNeil Technologies a five-year contract worth up to US$4.6 billion to provide linguists to the U.S. military in Iraq. L-3 (number 1) was the Army’s incumbent provider. The company could drop out of the Top 20 altogether if it loses its protest, while McNeil – on last year’s list, off this year – could be at the top of the heap next year. L-3 violated a cardinal rule of business by putting all of its wars in one basket."
Fortunately for L-3 Communications and its shareholders, L-3's contract with the army had a series of extensions while the protested $4.6 billion contract was being sorted out, netting them almost an entire year of revenues that otherwise would not have been. According to the Motley Fool, "The failure to win a re-up or a contract extension will not affect [L-3's] previous earnings guidance, which L-3 reaffirmed today: $13.7 billion in 2007 revenue, rising to between $14 billion and $14.2 billion next year; earnings of about $5.88 per share this year and $6.48 next year; and free cash flow of $1.1 billion or better in both years."
Dyncorp entered into a joint venture with McNeil Technologies to create "Global Linguistic Solutions (GLS)",which will provide translation and interpretation services to the U.S. Army in Iraq and other governmental agencies supporting "Operation Iraqi Freedom".
Further reading:
Common Sense Advisory's "Ranking of Top 20 Translation Companies" report for 2006
Yahoo's "L-3 Not Awarded Linguist Contract"
Forbes' "The Troops Support DynCorp"
The Motley Fool's "L-3's Anti-Pyrrhic Loss"
posted by Lauren Nemec at
9:16 AM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home