DynCorp to go ahead on $4.6 bn linguistic contract; shares up
Defense contractor DynCorp International Inc said the US Army has allowed it to resume work on a $4.6 billion contract to provide translation services to support US military operations in Iraq, after a rival withdrew its protest, sending shares up...
By Agencies |
Defense contractor DynCorp International Inc said the US Army has allowed it to resume work on a $4.6 billion contract to provide translation services to support US military operations in Iraq, after a rival withdrew its protest, sending shares up more than 9 per cent.
DynCorp will execute the project along with McNeil Technologies as part of a joint venture Global Linguist Solutions (GLS). DynCorp owns a majority interest in the JV.
L-3 Communications Holdings Inc, which had previously opposed the contract award, has agreed to become a subcontractor to GLS.
The company, which was the previous holder of the contract, withdrew the protest it had filed with the Government Accountability Office.
L-3, Pentagon's No.7 supplier, expects annual sales of about $150 million from the subcontract, it said in a statement on Thursday.
GLS will initially employ up to 7,000 locally hired translators and up to 1,500 US citizens with security clearances who are native speakers of languages spoken in Iraq.
L-3 also said its current contract for providing translation services was extended by the U.S. Army to June 9 from March 9, during which time linguist services will be transitioned to GLS.
Shares of DynCorp rose $1.34 to $16.83, while those of L-3 fell $2.13, or about 2 per cent, to $107.28 in morning trade on the New York Stock Exchange.
DynCorp will execute the project along with McNeil Technologies as part of a joint venture Global Linguist Solutions (GLS). DynCorp owns a majority interest in the JV.
L-3 Communications Holdings Inc, which had previously opposed the contract award, has agreed to become a subcontractor to GLS.
The company, which was the previous holder of the contract, withdrew the protest it had filed with the Government Accountability Office.
L-3, Pentagon's No.7 supplier, expects annual sales of about $150 million from the subcontract, it said in a statement on Thursday.
GLS will initially employ up to 7,000 locally hired translators and up to 1,500 US citizens with security clearances who are native speakers of languages spoken in Iraq.
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L-3 also said its current contract for providing translation services was extended by the U.S. Army to June 9 from March 9, during which time linguist services will be transitioned to GLS.
Shares of DynCorp rose $1.34 to $16.83, while those of L-3 fell $2.13, or about 2 per cent, to $107.28 in morning trade on the New York Stock Exchange.
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