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Former SEK Solutions Executives Sentenced For Defrauding US Government

Monday, July 15th, 2019

Last Friday, Khalil Naim, former executive of SEK Solutions was sentenced for his role in defrauding the US Government. In addition to one month of incarceration beginning August 30th, he will pay $479,641.23 in restitution. Last year, he pleaded guilty aiding and abetting a false statement his wife Edna Naim made to capture a contract as a so-called 8(a) business, a small, disadvantaged business. By law, Edna Naim was required to run that business in order to be eligible for the set aside contract. In reality, Khalil Naim and another man named Ron Villanueva ran it.

Former State Representative Ron Villanueva was sentenced to 2-1/2 years in prison and over $524,000 in restitution after pleading guilty earlier this year to charges stemming from assisting two forms defraud the US government. Specifically, Villanueva had served as Vice-President and then President of SEK Solutions as well as a board member of Karda Systems.

Additionally, Samuel Caragan of Karda Systems, who was found guilty of making a false official statement in a scheme with Villanueva, was sentenced to four years of probation, including six months of home detention and must pay over $240,000 in restitution.

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TenCate Advanced Armor USA Inc Receives Cogswell Award for Security Excellence

Sunday, July 14th, 2019

Hebron, OH, Thursday, July 4, 2019 – TenCate Advanced Armor USA Inc. was recently awarded the Cogswell Award along with 50 other companies working in the defense sector. More than 13,000 companies were evaluated in accordance with the principles laid out in the Industrial Security Program, which measures a company’s capability and resolution to maintain and further extremely high information security requirements and ultimately keeping future programs and platforms for the US armed forces uncompromised. Only cleared Defense Contractors which show a sustained degree of excellence and innovation in their overall security program are eligible for the award, and less than 0.4% of all cleared Defense Contractors ever receive the Cogswell Award.

The award is highly influential and underlines TenCate Advanced Armor USA Inc.’s capability to hold, maintain, and utilize US Government technical information with extreme discretion. A key future requirement in a globalized defense industry is to maintain critical information uncompromised, and it is expected to become a critical pillar in the armed forces’ procurement processes. The increased attention to information security is aimed at securing the technological advantage of the US Warfighter in any confrontation, which is the reason that critical information should remain uncompromised.

The high level of security has been achieved through an aggressive internal training program and systematic and recurrent awareness enhancing activities. The efforts have been targeted to ensure that ITAR and other confidential information is treated with the highest level of attention. The process to increase the information security level is an ongoing effort to keep the practices of TenCate Advanced Armor USA Inc. exceeding the highest standards.

The Cogswell Award selection process is rigorous. A DSS Industrial Security Representative may only nominate facilities that have at a minimum two consecutive superior industrial security review ratings and which show a sustained degree of excellence and innovation in their overall security program management, implementation and oversight. DSS makes the final selections.

The award was established in 1966 in honor of the late Air Force Col. James S. Cogswell, the first chief of industrial security within the Department of Defense. Cogswell was responsible for developing the basic principles of the Industrial Security Program, which includes an emphasis on the partnership between industry and government to protect classified information. This partnership ultimately ensures the greatest protection for the US Warfighter and our Nation’s classified information.

TenCate Advanced Armor USA Inc. provides survivability systems to private entities and for large multi-year government programs, uniquely designed for personnel, land systems, watercraft, and aviation platforms. Capabilities also include state-of-the-art protection solutions as a tier one provider of personal protection products (P3) for the US Government, police departments, and federal agencies. TenCate Advanced Armor is an OEM-independent entity that can partner with government and industry to analyze, advise, design, integrate, develop, manufacture, and manage survivability programs across life cycles.

www.tencateadvancedarmor.com

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Armor Express Expands Leadership Team with the Additions of Lushana Offutt, Senior Vice President, Government Operations and Rick Dressler, Vice President, Federal Operations

Thursday, July 11th, 2019

Dave Herbener, Founder and Former CEO of KDH Defense Systems Joins Board of Directors

CENTRAL LAKE, MI – July 11, 2019 – Armor Express, a leading manufacturer and distributor of high-performance protective solutions for the Domestic and Federal Law Enforcement markets, Department of Defense and First Responders, today announced two strategic hires – Lushana Offutt, Senior Vice President, Government Operations and Rick Dressler, Vice President, Federal Operations – as the Company continues to build out its leadership team.

Jim Henderson, Chief Executive Officer of Armor Express commented, “The additions of Lushana and Rick to our team are significant, especially as we grow our business with the U.S. Government and with the major contract opportunities on the horizon. Both have vast experience, knowledge and relationships across government and industry that will serve our organization and customers well. They have overseen multi-billion-dollar contracts throughout their careers and understand customer needs, which was critical in our selection process. We are excited to have Lushana and Rick onboard and look forward to working with our partners as we continue to expand our life-saving capabilities.”

The Company is pleased to welcome its new Head of Government Operations, Lushana Offutt, who brings over 20 years of defense and federal sector experience. Most recently, Ms. Offutt served as Senior Vice President, Operations at ADS Inc., a leading provider of equipment, procurement, logistics, and supply chain solutions to the Department of Defense (DoD) as well as federal, state and local agencies. She helped develop the business strategy, while overseeing all support functions including proposal development, contract administration, information technology, purchasing, inventory, and logistics. Previously, she served as Senior Vice President, Strategy, leading business development and capture management initiatives. She joined ADS in 2008 as Vice President, Program Business Development and served later as Vice President, Air Force, Army and International Sales. Earlier in her career, she held various positions with SYColeman Corporation, L3 Communications and NISH.

Also joining Armor Express as its new Vice President, Federal Operations is Rick Dressler, a seasoned professional in the Defense and Federal Law Enforcement industries. Mr. Dressler brings to the Company close to 30 years of special operations and management experience, having served in various senior roles for the U.S. Army; U.S. Air Force Reserve; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and on Capitol Hill. Prior to joining Armor Express, his most recent roles were that of Supervisory Special Agent and Program Manager at the ATF’s headquarters in Washington D.C. He also served as a Special Agent (Lt. Col.) in the Air Force Reserve, Office of Special Investigations (AFOSI).

Ms. Offutt will be responsible for overseeing the Company’s Military, Federal and International operations, including contracts, programs, proposals, sales and business strategy, working closely with the operational teams in Eden, NC and externally with all customers. She will be based in the Company’s new headquarters in Arlington, VA, and initially spend time at the Eden, NC facility where the majority of contracts are being produced for the U.S. Army, U.S. Marine Corps, U.S. Navy Security Forces, and various Federal customers. Mr. Dressler will spearhead program and contract management, sales, sales support, and customer service for all Federal accounts and future business opportunities. He too, will be based in the Arlington, VA office.

Lushana Offutt added, “I’ve been fortunate throughout my career to have worked in such great companies that were all focused on servicing the needs of the men and women who put their lives on the line every day. I now look forward to working with the Armor Express and KDH teams to leverage the experience I’ve gained across all facets of operations, program management and sales to not only help the Company grow but help support our customers. The customer always comes first and that was a shared vision that attracted me to Armor Express. We have a great team in place, one that is expanding, and a product assortment and commitment to innovation that makes me confident in our ability to increase our share of market and deliver the best and safest products to our customers.”

Mr. Dressler added, “I’ve spent my career serving our country, in both the Military and Federal Government, and I have worn and sourced our products in the field. They are second to none and continue to evolve as new technologies come to market and as we gain insight from customers around the world. Every agency has different needs and part of my former responsibilities was harnessing the right resources and equipment to ensure Agents, Officers and Military personnel were safe. I look forward to utilizing my past experiences and relationships to improve our customer offering and service capabilities. The need for protection has never been greater and I believe we have the resources and drive to deliver exactly what our customers need.”

The Company also announced today that David Herbener, Founder and former Chief Executive Officer of KDH Defense Systems has joined the Company’s Board of Directors. This follows the most recent appointment of Sam White to the Board, a highly respected and seasoned executive from the body armor industry.

Posted in Armor, Industry, Press Release | 1 Comment »

Ocean State Innovations Appoints Bryan Boulis as President

Wednesday, July 10th, 2019

PORTSMOUTH, R.I. –- Ocean State Innovations, a leading textile solutions provider, announced the appointment of Bryan Boulis as President.

Mr. Boulis has many years of diverse textile experience. Most recently, he served as Managing Director at 1947 LLC, a textile and brand management firm. Prior to that, he was Senior Vice President of Sales at Duro Textiles, a textile dye and finishing company, and the President of Fairhaven Textiles, a textile converting firm. Mr. Boulis is a 1979 Graduate of Stonehill College.

“We look forward to continuing our commitment to our customers and our employees by offering textile solutions and a great place to work. Bryan’s experience developing unique solutions for our customers, combined with developing talent for our team, are critical parts of our future.” said Edward Ricci, Ocean State Innovations, CEO.

Ocean State Innovations’ continued strategic growth has received enthusiastic support from Praesidian Capital, which initially invested both first lien debt and equity in B&O/OSI. “Since our initial investment, B&O/OSI has continued to provide premiere textile products and customer service,” said Jason Drattell, the founding partner of Praesidian. “We are pleased with Bryan’s appointment as President, and we anticipate continued success in the coming years as management executes on their strategic vision.”

For more information, please visit www.osinnovate.com.

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Savage Arms Announces Sale From Vista Outdoor

Monday, July 8th, 2019

WESTFIELD, Massachusetts – July 8, 2019 – Vista Outdoor announced today the sale of Savage Arms, one of the world’s largest manufacturers of hunting rifles and shotguns, in a management led buyout to a group of investors headed by Al Kasper, the president and CEO of Savage. The press release can be found here.

“We want to thank Vista Outdoor for the support over the last six years. They invested in us and provided guidance in the transformation of the Savage brand, further developed our product portfolio allowing entry to new markets,,” said Al Kasper, Savage President and Chief Executive Officer. “Savage is an extremely strong brand and in a great position to keep charging forward. The momentum gained under Vista Outdoor will propel us for future success. It is business as usual and Savage is excited to continue building on existing relationships within the firearms industry.”

Savage, Stevens and Fox shotguns have been delivering innovative products for more than 125 years. In 1894, Savage forever changed the world of firearms with a commitment to a higher standard in quality. Savage has built a reputation for continuously improving firearm design while becoming the standard for accuracy and value in the industry.

“We are excited to build on the Savage legacy and are blasting into our next chapter. Here at Savage we are excited to show you what we have coming, because we are just getting our barrels warm! You’ll see more customizable platforms based on our incredibly versatile Accufit stock system, and a continued focus on making your firearm best fit your shooting and hunting needs.” said Beth Shimanski, Director of Marketing. “As we are transitioning, you’ll see more detailed information coming, with updated contacts and information.”

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Meprolight USA Hires General Manager, VP of Sales and Marketing

Tuesday, July 2nd, 2019

Bill Yerby, industry executive, brings 29 years of experience to Meprolight’s USA division.

Middletown, Penn. (July 2019) – Meprolight USA, the US Subsidiary company of Meprolight®, a world leader in a variety of optic solutions from electro-optics sights, thermal sights and devices, self-illuminated sights, and innovative pistol sights, has announced that is has named Bill Yerby as General Manager, Vice President of Sales and Marketing for Meprolight USA.

“I am excited to be working with Meprolight,” Yerby commented. “As a global brand that is highly respected in the law enforcement and military markets, I will continue to expand its reputation here in the United States to include our law enforcement and commercial customers.”

“Yerby’s success in building relationships and growing market share in the outdoor industry is well known, and we are pleased to have him on our team,” Assaf Shimron, CEO of Meprolight® added. “We have made a significant commitment to our US customers and the investment in our US division will be sooner realized under the leadership of Bill Yerby.”

Yerby brings 29 years of experience leading high-performance teams specializing in consumer goods for the outdoor sports and recreation markets. As Meprolight USA’s new GM and VP of Sales and Marketing, Yerby will be responsible for growing the law enforcement and retailer networks, developing strategies and increasing brand awareness in the outdoor marketplace.

Most recently, Yerby spent the past 17 years working with Vista Outdoor, Bushnell and Bolle Brands as Director of Sales and Marketing focusing on a wide range of high quality and innovative products for the outdoor enthusiast.

Yerby is well known and respected throughout the outdoor industry. He is a leader with strategic vision and proven execution skills. His energy, enthusiasm, and passion for the outdoor markets have earned him the confidence, respect, and trust of his peers as well as retailers across North America.

Yerby holds a Bachelor’s Degree in Business Marketing from California State University, Northridge and enjoys many outdoor activities, including hunting, fishing, and winter sports.

Stay current with Meprolight USA at www.meprolight.com.

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US Defense Industrial Capabilities Report

Monday, July 1st, 2019

Last week, the Office of the Under Secretary of Defense for Acquisition in conjunction with the Sustainment and Office of the Deputy Assistant Secretary of Defense for Industrial Policy released a report entitled, “Industrial Capabilities” which covers the entire defense industry for the year 2018.

In general, as you can imagine, the state of industry isn’t as great as we’d like. For the past several decades we have abdicated our industrial capability writ large to foreign nations. While we have retained quite a bit of our capability to produce defense articles here in the United States, it relies on a vast supply chain, and much of that is what is missing here domestically.

Of particular interest to SSD readers is the section on soldier systems. As you are probably aware, due to the Berry Amendment, which dates back World War Two, all textiles purchased by the Department of Defense must be manufactured in the United States from materials of US origin. While there has been a resurgence of commercial demand for clothing made here in the USA, the vast majority of our domestic textile capability exists to service the military.

While this niche fares pretty well, each year the capacity dwindles. Unfortunately, some of this is caused by lack of interest. Much of our textile supply chain is privately held by family owned businesses. As those operating these businesses reach retirement age, the younger generations are reticent to take up the reins. Those companies who manufacture clothing and individual equipment for the government operate on very tight margins. What’s more, the military is notorious for buying in spurts causing feast or famine cycles which are difficult to manage. Many feel the headache is not worth it. They’ll either sell the company off, or just close it altogether.

The report specifically call out this issue:

Evident industrial base risks in the soldier systems sector include single sources, capacity constraints, foreign dependency, market fragility, and diminishing manufacturing sources and material suppliers. The case studies below illustrate examples where the risk of permanent capability loss is enough to potentially warrant government action.

Erosion of U.S. Textile Industry

Between 1995 and 2009, the U.S. textile industry suffered a historic contraction, and Asian markets now dominate global textile supply. U.S. manufacturers are at a competitive disadvantage in workforce and raw material costs and availability. DoD is reliant on single sources and foreign sources, and competes with commercial demand for adequate production capacity.

However, clothing and individual equipment are just part of the soldier systems portfolio. The report also goes on to specifically address batteries:

Erosion of U.S. Rechargeable and Non?Rechargeable Battery Industry

Characterized by irregular demand proportional to operational tempo, the military battery industrial base is diminishing. Military-unique requirements can depart from commercial demands in size, quality, safety, power density, weight, and environmental ruggedness. Lack of stable production orders has resulted in lost capability and capacity, increased surge lead times, workforce erosion, and inhibited investments by remaining suppliers. Surge-capacity-limiting constraints occur at several points along the value chain, from raw material to final battery assembly.

Another issue of concern is our “Own the Night” advantage.

Foreign Reliance for Essential Night Vision Components

U.S. military “night vision” systems are enabled by an image intensifier tube, a vacuum-sealed tube that amplifies a low light–level scene to observable levels. The Department is reliant on foreign capabilities to supply image intensifier tube core glass and gallium arsenide photocathodes. Core glass is DoD-unique, and demand is very low compared to commercial glass production; the foreign sole source manufactures the core glass in batches based on demand, every few years, to replenish a U.S. buffer stock. Gallium arsenide allows for a more efficient conversion of light to electrical energy at extremely low light level, so by adding gallium arsenide to the photocathode, a brighter and sharper image is achieved. Gallium arsenide supply risk is considered reduced as the number of global suppliers has increased over time, though available suppliers remain foreign.

The reports also mentions the merger of two Night Vision manufacturers, stating “INDPOL (Industrial Policy) is examining whether the merger could result in a loss of competition, create single source dependence, or constrain capacity.”

Overall, it’s refreshing to see these issues addressed at this level. Hopefully, the Homeland Procurement Reform (HOPR) Act we mentioned last week will be enacted into law. The increased demand on the domestic clothing industry will help fill capacity and provide more predictable demand.

The story isn’t all bleak. While the investment tends to be from multinational corporations, we are seeing some investment in new textile infrastructure here in the US, thanks to increased productivity, due to automation, as well as ever increasing labor costs in China. For example, South Korea-based Youngone recently opened a brand new factory in El Monte, California to support Outdoor Research. Other businesses are opening new, or refurbishing elements of the supply chain in the Carolinas.

Posted in Industry, Made In USA! | 4 Comments »

Forging Ahead: Rheinmetall Spearheads Ongoing Consolidation in the Military Vehicle Sector

Monday, July 1st, 2019

The high-tech Rheinmetall Group continues to pursue a strategy of industrial consolidation. Now that the competition authorities have given the project the go-ahead, a military vehicle joint venture between Rheinmetall and BAE Systems in the United Kingdom is poised for final implementation.

Moreover, a buyback of shares held by MAN Truck & Bus SE in the joint venture company Rheinmetall MAN Military Vehicles GmbH (RMMV) is set to further strengthen Rheinmetall in the wheeled armoured vehicles realm, one of the Group’s mainstays.

The planned partial buyback of stock held by MAN Truck & Bus SE in the joint venture Rheinmetall MAN Military Vehicles GmbH (RMMV) increases the share of the present Tactical Vehicles business unit to 100%. The two partners will continue to cooperate in the field of military trucks through their joint venture Rheinmetall MAN Military Vehicles, in which Rheinmetall holds a 51% stake. The joint venture recently won major orders from Australia and the German Bundeswehr.

As co-owners of RMMV, Rheinmetall and MAN agree that the tactical wheeled vehicle business will grow more robustly under exclusive Rheinmetall management, i.e. outside the RMMV framework.

The Tactical Vehicles business unit is synonymous with products such as the Boxer and Fuchs/Fox wheeled armoured vehicles and the Survivor R tactical law enforcement vehicle. Rheinmetall was recently selected to supply Her Majesty’s Armed Forces with a large number of 8×8 Boxer armoured vehicles. Last year in Australia, Rheinmetall won a roughly €2.1 billion order for the Boxer, one of the largest single contracts in the Group’s history.

The share buyback is due to take place during the second half of 2019, taking retroactive legal effect on 1 January 2019.

Joint Venture with BAE Systems in Great Britain

In January 2019 Rheinmetall and BAE Systems announced that they would be setting up a UK-based joint venture to facilitate cooperation in the land systems field. Rheinmetall thus welcomes the recently published announcement of the British procurement authority CMA approving the creation of a military vehicle joint venture between Rheinmetall and BAE Systems. The formal foundation of the joint venture, to be known as Rheinmetall BAE Systems Land, is expected to take place shortly. The company will be located in Telford, England.

The new wheeled armoured Mechanised Infantry Vehicle for the British Army, and the pending modernization of the UK’s fleet of Challenger 2 main battle tanks, are two important projects which the new company will be vying for.

Rheinmetall’s Vehicle Systems division

The Vehicle Systems division of Rheinmetall AG was formed on 1 January 2016. With annual sales last year of €1.6 billion, it is one of the world’s foremost suppliers of military vehicles. The division is the Düsseldorf-based Group’s centre of excellence for military vehicles ranging from unprotected and protected trucks to heavy armoured fighting vehicles. Serving markets around the globe, the Vehicle Systems division is responsible for Rheinmetall’s complete spectrum of military trucks, including the TG and HX logistic vehicles; tracked and wheeled tactical vehicles like the Fuchs/Fox, Boxer*, Puma* and Lynx; and turret solutions for armoured fighting vehicles – all from a single source.

* jointly produced with other contractors

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