This is a follow up to our December 2020 update of ManTech.
Since we last looked at ManTech, the company was bought by The Carlyle Group in an all-cash transaction with a value of approximately $4.2 billion. There were some interesting potential buyers when the journey to sell ManTech started. However, the classic private equity buy happened which was not overly surprising. This follows the growing trend of private equity firms backing government contractors (e.g., Amentum, SPA), enabling them to grow and be absorbed in other entities. However, Carlyle stated they would acquire ManTech and operate it as is (for now).
ManTech’s shifting customer portfolio
ManTech’s core customers have changed slightly since our last blog post. Notably, the Navy has surpassed the Army in being the company’s top customer, likely in part due to ManTech’s acquisition of Gryphon Technologies, its largest acquisition to date. Gryphon provides advanced capabilities in model-based systems engineering (MBSE), predictive analytics, data/computational science and cloud engineering solutions and a strong footprint in the Navy.
ManTech has also gained a stronger presence in both the Federal Bureau of Investigations (FBI), U.S. Department of State (DoS), and Defense Information Systems Agency (DISA) but now has comparably less work in the Centers for Medicare and Medicaid Services (CMS), U.S. Department of Veterans Affairs (VA), and National Aeronautics and Space Administration (NASA).
Note that ManTech has a significant presence in the U.S. Intelligence Community (IC); however, this visual does not include their classified work. According to Executive Vice President and General Manager Adam Rudo, ManTech serves all major agencies within the IC and provides enterprise IT operations and maintenance, as well as cybersecurity support.
Notable Contract Wins
ManTech’s shifting customer portfolio has been impacted by the following noteworthy wins:
- U.S. Department of Justice (DoJ), Federal Bureau of Investigation (FBI), Criminal Justice Information Services Division (CJIS), Enterprise System of Services contract– In May 2021, the FBI awarded ManTech a five-year, $123 million ceiling value contract to help the FBI manage, secure, and maintain information systems. ManTech will support enterprise cybersecurity strategy and training across the bureau using a cyber cognitive platform.
- U.S. Department of State (DoS), Bureau of Diplomatic Security (DS), Global Protective Technology Engineering Services (GPTES) – In May 2017, DoS awarded ManTech an 11-year, $816 million ceiling value contract to provide wide-ranging electronic and physical security countermeasure programs safeguarding personnel supporting State’s mission, both overseas and domestic. This work designates ManTech to deliver omnipresent, round-the-clock technical security with a focus on terrorist threats.
- U.S. Department of the Navy, Naval Sea Systems Command (NAVSEA), Ship Combat Management Systems Engineering– In August 2022, ManTech was awarded a five-year, $184 million ceiling value contract to help the Navy engineer ship combat management systems. ManTech will perform technical engineering work to support NAVSEA in managing the lifecycle of integrated warfare systems for the branch’s surface vessels. Note that this contract is a continuation of work held by legacy Gryphon.
It’s about the 1’s and 0’s…in space?
Although ManTech is well-known for their dominance in the full-spectrum cyber and enterprise IT arenas (especially within the IC), the company recently stated that it is now focusing on gaining work in the space arena. Specifically, ManTech is looking to exploit the connection between cyber and space to “space resilience”.
ManTech previously held a legacy of work in the space domain for NASA and the U.S. Department of the Air Force, which included support for spaceflight systems hardware and software, as well as the operations and maintenance of Goddard Space Flight Center test equipment and facilities. This renewed focus on space may signal ManTech’s re-entry into this work.
Recently, the company was awarded a 10-year, $476 million ceiling value contract by U.S. Space Force to provide systems engineering solutions for the agency’s Space Systems Command (SSC). This contract aligns with ManTech’s stated goal in that it will provide a wide array of mission critical space launch programs with launch service integration, fleet surveillance and certification for space and missile systems at Space Force facilities at Los Angels Air Force Base, Vandenberg Space Force Base and Cape Canaveral Space Force Station.
Google Cloud Partnership
In April 2021, ManTech announced the formation of a strategic partnership with Google Cloud to provide secure, advanced cloud and hyperscale analytics services to the federal government. Google Cloud will provide its Google Cloud Platform (GCP), and ManTech as a Google Cloud Premier Partner will help government clients gain visibility into on-premises data centers and cloud platforms and manage complex IT systems through Google’s Anthos platform. Anthos could also help agencies manage containers, infrastructure, policies and security services across on-premises and multi-cloud environments while enabling ManTech to develop cloud-native tools and modernize applications for government.
In September 2021, the two companies announced the launch of a joint demo center in Northern Virginia to enable customers to engage in practical problem solving and showcase Google Cloud and ManTech’s combined technology capabilities. This center will enable the two companies to jointly assist agencies with core areas of modernization, much like Booz Allen Hamilton’s D.C. Innovation Center, Accenture Federal’s Digital Studio, or Deloitte’s Greenhouse Labs.
The FedSavvy Strategies Takeaway
- The Carlyle Group’s acquisition of ManTech, which was approved by shareholders this month, demonstrates private equity’s increasing presence in GOVCON ownership. ManTech will likely grow and could be rebranded before being sold in the next few years.
- Although ManTech will likely maintain a strong base of cyber work within the IC, expect to see its entry into the space domain with a focus on protecting space assets.
- ManTech’s new partnership with Google Cloud demonstrates an alignment with the proliferation of multi-cloud environments in the federal space, allowing the company to offer capabilities in advanced visibility, application modernization, and risk management. Although AWS and Azure currently dominate the federal space, this partnership could allow Google Cloud to gain some traction.
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