News Briefs II
Lockheed Martin Makes Plans To Spin Off 10 DivisionsThe Washington Post
Lockheed Martin Corp. announced Monday that it will spin off 10 "non-core" divisions with 5,000 employees to a newly created company jointly owned by a Lehman Brothers Holdings Inc. partnership, a management team and Lockheed Martin.
Nine of the 10 divisions are pieces of Loral Corp. that have been left in a free-standing group, in preparation for a spinoff, since Lockheed Martin acquired Loral last April.
The new company, to be called L3 Communications, will be run by Frank C. Lanza, who was Loral's chief operating officer. After the purchase of Loral, he became a Lockheed Martin executive vice president and was viewed as a possible successor to Chief Executive Norman R. Augustine when Augustine retires in about five years.
Loral was a feisty collection of defense electronics units that had been assembled over two decades by Wall Street investor Bernard L. Schwartz, who let Lanza run the company.
A taciturn New Yorker admired for his creativity and engineering genius, Lanza chafed at the buttoned-down atmosphere at Lockheed Martin's Bethesda, Md., headquarters, according to people who know him. He never moved permanently to this area, and will set up the new company's headquarters in New York.
At the time of the merger last year, Loral spun off its space divisions into a separate firm, Loral Space & Communications Ltd., run by Schwartz. Joining Lanza in the new venture will be Robert V. LaPenta, a Lockheed Martin vice president who had been Loral's comptroller.
DynCorp Wins Big Contract From Pentagon for Military ServicesThe Washington Post
DynCorp has won a potentially huge contract to provide a host of support services - digging latrines, installing telephones or whatever else is needed - for the U.S. military's deployments into foreign trouble spots over the next five years.
The contract is worth a minimum of $25 million to the Reston, Va., company, but the actual value could be significantly higher, depending on the number and scope of overseas deployments.
Halliburton Co.'s Brown & Root Inc. unit, which has had the contract since 1991, received $738 million from 1993 to 1996 for supporting missions in Somalia, Rwanda, Haiti, Saudi Arabia and Bosnia, said Rey Aponte, a spokesman for the Army Materiel Command, which awarded the contract.
Under the contract, DynCorp will have to be ready to deploy thousands of workers anywhere in the world on a few days' notice. Those employees will have to perform myriad tasks, including cooking meals, washing clothes, building roads and installing sophisticated communications networks.
The contract in many ways represents the changing nature of overseas military operations. Companies like DynCorp often can provide support services faster and cheaper than can military personnel. Using private-sector support workers also allow the Defense Department to deploy fewer soldiers, which is politically helpful for it in a time of thinning ranks and increasing scrutiny of foreign troop commitments.