ASRC Federal is a perennial top GOVCON competitor and we last examined ASRC Federal in July 2021…so let’s give this high flying Alaskan Native Corporation another look. There is much to consider about ASRC Federal so we will only touch on a few aspects of their business in this blog.
Buy, buy, buy!
ASRC Federal – and other ANCs – are not typically synonymous with growing via acquisition. If that’s your myth, it just got busted! ASRC Federal has kept a low M&A profile since the previous CEO – Mark Gray – worked to add customer access and technical capabilities. Recently, ASRC Federal made news with a pair of very different acquisitions.
SAIC’s Logistics & Supply Chain Business
This month, ASRC Federal announced the completion of their acquisition of SAIC’s Logistics and Supply Chain Management business unit. With this acquisition, ASRC Federal absorbed 240 employees who bring experience providing supply chain management and logistics solutions for the Defense Logistics Agency (DLA), which is ASRC Federal’s third largest customer by contract spending. This acquisition bolsters ASRC Federal’s main capabilities in providing procurement, logistics, and warehousing services at military locations throughout the United States.
ASRC’s president, Jennifer Felix, is an SAIC alumna with experience facilitating acquisitions in previous roles. While the inner workings of this deal are unknown, it would be reasonable to assume that Felix and her relationships at SAIC played a role in getting it across the finish line.
In April 2023, ASRC Federal announced the acquisition of Broadleaf, Inc. – which provides information technology (IT) services to include cybersecurity, network engineering, cloud migration, as well as a variety of professional services. With this acquisition, ASRC Federal absorbs nearly 600 employees who strengthen their footprint at the U.S. Army’s Aberdeen Proving Ground (APG), the U.S. Navy (NAVSEA, NAVWAR, NAVSUP), and the Defense Counterintelligence and Security Agency (DCSA).
ASRC Federal has utilized this acquisition to re-vitalize their APG portfolio by adding 70 employees on site. Coincidentally, ASRC Federal also just hired Shane Sims away from SAIC to bolster their APG presence.
Contract wins epitomize the diversity of their customer portfolio
This is not a “one trick” GOVCON pony. ASRC Federal continues to pursue and win higher end technical services contracts is some very desirable markets.
ASRC Federal maintains its space market presence
National Aeronautics and Space Agency (NASA) Repair, Operations, Maintenance, and Engineering (ROME) Contract – In March 2023, the National Aeronautics and Space Agency (NASA) awarded an ASRC Federal subsidiary a five-year, $320 million 8(a) small business set-aside IDIQ for repair, operations, maintenance, and engineering (ROME) services. Contract work includes facilities operations and maintenance services, architect-engineering services, construction services, and facilities information resources services.
U.S. Department of the Air Force (USAF), U.S. Space Force (USSF), Rocket Systems Launch Program Mission Assurance (RSLP MA) Contract – In February 2022, ASRC Federal was awarded an eight-year, $226 million IDIQ for the Rocket Systems Launch Program Mission Assurance (RSLP MA) program for the USSF Space Systems Command (SSC). Under the contract, the ASRC Federal Space and Defense (AS&D) team provides systems engineering, risk management, technical analysis, and independent verification and validation (IV&V) for RSLP missions. The contract also requires planning and analysis for logistics related to solid rocket motors, transportation and handling equipment, component testing, and motor refurbishment and booster processing support.
U.S. Department of Commerce (DoC), National Oceanic and Atmospheric Administration (NOAA), Fairbanks Command and Data Acquisition Station (FCDAS) Operations and Maintenance Support Services–In June 2022, NOAA awarded ASRC Federal subsidiary Netcentric Technology a five-year, $44 million recompete contract to provide operations and maintenance support for the Fairbanks Command and Data Acquisition Station (FCDAS). NOAA maintains FCDAS in Fairbanks, Alaska for the purpose of acquiring meteorological and environmental data from its polar-orbiting environmental satellites.
Featured Federal Civilian wins
U.S. Department of Agriculture (USDA), Farm Production and Conservation Business Center (FPAC-BC), Natural Resources Conservation Service (NRCS), METIS ART II – In January 2023, ASRC Federal subsidiary Highland Technology was awarded a two-year, $100 million recompete contract to develop, modernize, enhance, and maintain information systems, software applications, web services and databases supporting conservation assistance for farmers and ranchers. The Farm Production and Conservation Business Center is now a top-five customer for ASRC Federal because of this award.
U.S. Department of Homeland Security (DHS), Transportation Security Administration (TSA) DISCOVER Security Technology Contract – In April 2022, ASRC Federal Data Network Technologies was awarded the one-year, $17 million ceiling value Transportation Security Administration (TSA) Dynamic Integrated Secure Connectivity for Operational Value and End Point Resiliency (DISCOVER) contract. Under this contract, ASRC Federal provides new technology supporting the modernization of airport screening systems nationwide. DISCOVER integrates TSA screening equipment to automate data collection and management, improve security agility, and increase operational efficiency. Up to this point, ASRC Federal has had a very limited relationship with TSA.
The FedSavvy Strategies Takeaway
- The acquisition of SAIC’s Logistics and Supply Chain Management arm will help ASRC establish a larger base of consistent work with a significant customer. This addition allows ASRC Federal to develop other business units while relying on the consistency of logistics and supply chain work to absorb some of the costs.
- The Broadleaf acquisition further demonstrates ASRC Federal’s focus on acquisitive growth and interest in building capabilities and presence among defense customers.
- ASRC Federal continues to maintain their core customer base in the space market in both civil and military space customers.
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