PAE buys portion of CSC applied technologies unit

June 2, 2013

Arlington-based Pacific Architects and Engineers, better known as PAE, said last week it has agreed to buy part of Falls Church-based Computer Sciences Corp.’s applied technology division for $175 million.

CSC had acquired the unit, which it said posted about $760 million in sales in fiscal 2013, when it bought DynCorp in 2003. (The following year, CSC agreed to sell off pieces of DynCorp that became Falls Church-based DynCorp International).

Under the deal, PAE will take the aviation maintenance, base operations and maintenance, test and training range and space range parts of the business. CSC will hold onto the unit’s training and simulation work.

The group’s senior management team as well as its 5,400 employees will move to PAE.

The acquisition is the latest move for PAE, which was divested from Lockheed Martin in 2011. Since then, the company has bought Marlton, N.J.-based Defense Support Services, which specializes in military aircraft and vehicle maintenance, and consolidated its headquarters in Arlington.

Mike Dignam, PAE’s chief executive, said the buy will help it become “a significant government services company.”

The deal marks CSC’s sixth divestiture in seven months, as the company seeks to rebuild after major losses. David Zolet, who heads CSC’s North American public sector business, said that the business did not fit the company’s focus on new technologies, such as cloud computing and cybersecurity.

ByteGrid buys Cleveland data center site

Reston-based data center company ByteGrid is to announce today it has acquired the Cleveland Technology Center, which includes more than 330,000 square feet of data center space.

The company said it selected the Cleveland-based facility because of the city’s growing presence of major companies in finance, health care and technology — and their associated demand for data center space — as well as low-cost, reliable power.

Kenneth Parent, ByteGrid’s chief executive, said the center is more than half occupied.

In Cleveland, “we saw a lot of market demand that was unmet,” he said.

ByteGrid now operates three data centers, in Silver Spring; Alpharetta, Ga.; and Cleveland, comprising about 625,000 square feet of space. Parent said ByteGrid is actively seeking more acquisitions and hopes to add two to four annually.

LMI hires new CFO

McLean-based government consulting firm LMI is set to announce today that Lori L. Becker, formerly corporate controller at Akima, will become its new chief financial officer.

Anthony Provenzano, LMI’s chief financial officer for the past 24 years, is retiring, the company said.

Becker previously served as comptroller at Vangent and chief financial officer at Deltek.

GAO denies Honeywell protest

The Government Accountability Office last month denied a protest filed by Honeywell Technology Solutions of Columbia against an Army Materiel Command solicitation amendment.

Honeywell had previously filed a protest after the contract for integrated logistics support services was awarded to Alexandria-based Sentel and McLean-based Strategic Resources Inc., or SRI. The agency took corrective action, and the GAO dismissed the protest.

As part of the corrective action, the Army provided companies with a spreadsheet detailing how it would evaluate past performance, and Honeywell filed a new protest, arguing that the Army should raise the minimum requirements for past performance to be considered relevant. The GAO backed the Army’s decision.

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