Defense Business Alert

Executives at the Air Force's top weapons suppliers say they are looking for new ways to streamline munitions production as demand grows and the service focuses on more advanced adversaries.

Kratos Defense & Security Solutions said Wednesday it has agreed to sell its public safety and security system integration business for $69 million to Securitas Electronic Security.

While the Pentagon agrees that imports of steel and aluminum "impair" national security, it has warned that trade restrictions stemming from the Commerce Department Section 232 investigations could harm relationships with key allies.

The Navy has awarded conceptual design contracts to Austal USA, Fincantieri Marinette Marine, General Dynamics Bath Iron Works, Huntington Ingalls Industries and Lockheed Martin at $14.9 million apiece for the guided missile frigate replacement program, as it readies to later down select to one vendor.

L3 Technologies was one of the first to sell off its services business, spinning off what's now Engility in 2012. Lockheed Martin followed suit in 2016, divesting its information systems and global solutions unit.

The new tax legislation passed late last year has been hailed by many business executives, who argue the changes will help them invest in their workers and new technology.

Industry groups are supporting a new rule intended to make commercial item determinations more consistent and bolster opportunities for nontraditional contractors.

The Defense Department approved waivers totaling nearly $16 billion in nonrecurring costs that would have been charged to foreign countries buying U.S. weapons over the past six years, according to the Government Accountability Office.

Government contracting attorneys and advocates say a provision in the Fiscal Year 2018 National Defense Authorization Act on lobbying by former government officials is more restrictive than previous regulations and might surprise defense contractors.