Military Embedded Systems

General Dynamics completes CSRA acquisition, U.S. Navy avoids conflict of interest


April 05, 2018

Lisa Daigle

Assistant Managing Editor

Military Embedded Systems

FALLS CHURCH, Va. General Dynamics has completed its previously announced acquisition of IT provider CSRA.

The acquisition, valued at approximately $9.7 billion, is expected to be accretive to GAAP earnings per share and to free cash flow per share in 2019. General Dynamics officials expect the move to generate estimated annual pretax cost savings of approximately two percent of the combined company's revenue by 2020. CSRA is now part of General Dynamics Information Technology.

The U.S. Navy -- which has used CSRA to deliver support services to Naval Sea Systems Command (NAVSEA) defense procurement programs and other initiatives through several task orders under the SeaPort Enhanced contract and other acquisition vehicles -- announced that it has initiated several measures to avoid any potential organizational conflict of interest (OCI) that may emerge following the acquisition.  To mitigate any actual or perceived OCIs,  the companies will segregate and isolate from General Dynamics and its associated systems engineering, acquisition, and mission support performed by CSRA's SEABU for NAVSEA to a third party as soon as possible.


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