ITT Exelis cuts employees, square footage

March 10, 2013

McLean-based ITT Exelis plans to reduce its employee head count by about 6 percent and cut its facility square footage by about 10 percent this year, part of an effort to reshape for a more competitive and cost-conscious environment.

David F. Melcher, Exelis’s president and chief executive, said in a call with investors earlier this month that the 6 percent employee cut — which equals about 1,200 of its 20,000 workers — will be partly achieved by a voluntary early retirement program that 600 employees have accepted.

The company, which has about 7.6 million square feet at 150 locations, will have less than 7 million square feet by the end of 2013, said Peter J. Milligan, Exelis’s chief financial officer.

This year alone, Exelis expects $60 million to $70 million in restructuring charges. The company is also starting a second phase of restructuring over the next year to two years that will further consolidate its square footage, reduce its corporate overhead and reengineer business processes, Melcher said.

MacB acquires Luna unit

Dayton, Ohio-based MacAulay-Brown, which has its regional headquarters in Vienna, said last week it has acquired the secure computing and communications division of Roanoke-based Luna Innovations. The unit’s employees will be added to MacB’s advanced technology group.

The acquisition marks the latest move for MacB, which has been repositioning itself. The company hired Sid Fuchs, formerly of ATS Corp. and TASC, in August 2011 and then consolidated its subsidiaries about a year ago.

More recently, the company announced that Mark P. Chadason, formerly of ManTech International, would lead its newly formed national security group and manage the Vienna headquarters.

GAO denies Kaseman protest

The Government Accountability Office last month rejected McLean-based Kaseman’s protest over an Army logistics program.

Kaseman had argued that it should not have been eliminated from consideration for the Army’s Logistics Civil Augmentation Program, better known as LOGCAP.

The company argued that the agency made an “unreasonable” evaluation of its proposals and treated offerors unequally, but the GAO disagreed.

“[W]e see no merit in Kaseman’s assertion that this aspect of the agency’s evaluation was unequal,” the GAO report said.

GAO rejects Wyle protest

The GAO also denied Lexington Park-based Wyle, which had filed a protest against a task order awarded to Colonial Beach, Va.-based Imagine One Technology & Management for Navy program management and engineering services.

Wyle’s proposal received a slightly better evaluation than that of Imagine One but offered a much higher price tag — $88.9 million versus $65.9 million. Wyle contended that the Navy’s cost realism review was unreasonable and that the Navy treated the competitors differently.

“We have fully considered all of Wyle’s arguments and find that they provide no basis to sustain the protest,” the GAO wrote.

censerm@washpost.com

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