Honeywell’s first-quarter 2016 sales totaled $9.5 billion, while its year-over-year earnings per share rose by 9 percent, the company announced Friday. Core organic sales grew 1 percent, and the company raised its earnings per share guidance for the year by 7-10 percent, to $6.55-$6.70.
A Honeywell subsidiary, Honeywell Federal Manufacturing and Technologies, is the managing and operating contractor for the National Nuclear Security Administration’s National Security Campus, which produces non-nuclear components for nuclear weapons. The company extended its contract to run the Kansas City, Mo., site last year, with a new five-year base contract and up to five years’ worth of options. The plant’s budget is roughly $900 million per year.
Honeywell management did not provide details of the subsidiary’s contribution to the company’s quarterly earnings in a press release or conference call on Friday.
Davis to Leave NNSA
Brig. Gen. Stephen L. Davis, who has served as the National Nuclear Security Administration’s principal assistant deputy administrator for military application since September 2014 and assumed the role of deputy administrator for defense programs on an acting basis following the retirement of Don Cook, will be moving to another Air Force assignment in early July.
Davis will take over for Brig. Gen. Richard M. Murphy as director of manpower, organization, and sources, deputy chief of staff for manpower, personnel and services at Air Force headquarters in Washington, D.C.
The NNSA has not announced the upcoming change in the leadership team, but a Defense Department notice indicated Davis will be replaced by Brig. Gen. Michael J. Lutton, who currently serves as commander of the 91st Missile Wing at Minot Air Force Base, N.D.
Lutton will assume his duties at NNSA on July 5, coinciding with Davis’ new assignment.
NNSA to Conduct Sandia Site Tour for Potential M&O Bidders
The National Nuclear Security Administration (NNSA) next week will offer a site tour of the Sandia National Laboratories site in Albuquerque, N.M., for potential bidders for the lab’s follow-on management and operations contract competition. The April 27 site tour may be followed by one-on-one meetings on April 28 or 29 to give potential bidders the chance to offer recommendations to the NNSA on the contract competition draft solicitation documents released late last month. Lockheed Martin subsidiary Sandia Corp. currently operates SNL for about $2.6 billion per year and a period of performance that will expire next April. The follow-on contract will feature a four-month transition and five-year base period, along with options for up to five additional years.
Energy Bill Amendment Boosts LDRD Program
An amendment to the energy modernization bill passed Wednesday by the Senate seeks to boost funding for the Department of Energy’s (DOE) laboratory-directed research and development (LDRD) program, which involves basic science and exploratory research at DOE labs. Sen. Martin Heinrich (D-N.M.) highlighted his amendment in the Energy Policy Modernization Act that eliminates a requirement “that imposed redundant overhead charges” on funding for LDRD. LDRD funding has decreased in recent years, while overhead continues to be charged to its projects.
Heinrich’s amendment would prevent laboratory operating contractors from allocating the costs of general overheard to LDRD, which would free up more of the funding to be directed to the research. “By supporting LDRD, our national labs [will] be able to continue using this powerful tool to attract and retain top researchers from around the world to work at the labs,” Heinrich said in a statement. The energy bill, which also includes provisions to enhance the electric grid and promote energy efficiency, passed the Senate by an 85-12 vote and will now move to the House for consideration.
Strategic Deterrent Coalition to Host Symposium in June
The nonprofit Strategic Deterrent Coalition has scheduled its annual symposium for June 20-21 on the campus of the University of New Mexico in Albuquerque, N.M. The organization, which says “America must avoid the tendency to understate the complexity of the specialized equipment, facilities, personnel, knowledge and expertise” necessary to sustain the U.S. nuclear deterrent, will bring to the event speakers that include Adm. Cecil Haney, commander of U.S. Strategic Command; Gen. Robin Rand, commander of Air Force Global Strike Command; Frank Klotz, head of the National Nuclear Security Administration; and Jill Hruby, president of the Sandia National Laboratories. Those interested in attending should visit www.sdc-usa.org.
DOE IG: NSTec Resolved All Questioned Costs
National Security Technologies (NSTec), the managing and operating contractor for the Nevada National Security Site, has resolved all questioned costs identified in a previous internal cost allowability audit, according to a Department of Energy Inspector General’s Office report released last week. NSTec’s audit of its costs from fiscal 2012-2014 identified $292,650 in questioned costs, all of which has been resolved, the report said. A 2013 IG report identified $20,923 in questioned costs and “internal control weaknesses” in payments made at the site, but all of these costs and weaknesses have also been resolved, the report said. The latest report made no recommendations for the contractor.
