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Point Blank Files Chapter 11

Thursday, April 15th, 2010

Armor manufacturer Point Blank, a Delaware Corporation based in Florida, announced yesterday that it has filed a voluntary petition for Chapter 11 reorganization. The Company also announced that it has reached an agreement for up to $20 million of Debtor-in-Possession (“DIP”) financing, pending bankruptcy court approval. The DIP is a loan to help with the restructuring. At the end of Wednesday trading, the company’s stock had fallen to .05 per share.

The company blames the need to file for bankruptcy on “continued expenses associated with legacy issues from former management, and the lack of financing available to the Company given the state of the credit markets.” Those “legacy issues” are that the former CEO David Brooks is under indictment for fraud and the company itself has been under investigation by the Securities and Exchange Commission as well as the subject of a shareholder lawsuit. All told, this costs Point Blank about $600,000 a month on legal fees.

But let’s face it, they grew rapidly to accommodate OTV and IOTV contracts and then they didn’t sustain the same level of work. It happens. Other companies are dealing with issues in their own ways as well. Maybe they can find a small business shill to get them some work under the proposed IOTV Class Waiver.

Posted in Armor, Industry | 1 Comment »

Proposed IOTV Class Waiver

Thursday, April 15th, 2010

First off, what is a class waiver? What you need to know is that it is a determination made between DoD and the Small Business Administration to make a change to what types of businesses may provide goods or services to the government. In this case they are considering a Waiver of the Nonmanufacturer Rule, allowing small businesses who do not manufacture the IOTV to bid on providing them. Normally, a business has to manufacture 51% or more of an item to be the prime contractor on a project and they can then sub the remainder out to other businesses. This normal way of doing business is perfectly acceptable and assists a small business to take on a project larger than what they have the infrastructure to support.

However, I am a bit concerned about the precedence such a waiver might make. What I mean by this is that a decision to allow non-manufacturers to bid on providing goods as a small business could facilitate a win by a company consisting of just one person, with virtually no overhead, teamed with a large company who does all of the work. The preponderance of businesses in America are small businesses and this would essentially undermine the small business set aside. If it looks like it works here, what is to stop them from applying it more liberally? Small businesses are the backbone of the tactical industry and are the fountainhead from which much of the innovation springs. They must be compensated for their hard work and dedication to the military through the awarding of contracts.

If the concern of the federal government is that no small businesses are manufacturing the IOTV this could be remedied by awarding more companies contracts. As it is, the most recent round of awards took a long time and caused upheaval in the armor industry while companies kept workers on staff in anticipation of an award that never came. Award more contracts to both large and small businesses, and large companies won’t need to lobby to alter a system that works. Note to Contracting Officers; there is more than one company in the armor business. Spread the wealth.

Here is the notice on FedBizOps. I encourage businesses who would be affected by such a decision to contact the POC and provide feedback.

Posted in Armor, Industry | Comments Off on Proposed IOTV Class Waiver

Cerberus to Acquire DynCorp for $1 Billion Cash

Tuesday, April 13th, 2010

The ATK purchase of Blackhawk wasn’t the only merger in the news. According to an article by Nathan Becker in the Wall Street Journal, Cerberus Capital Management LLP is purchasing DynCorp International Inc. in a deal estimated at $1.5 Billion (yes, with a “B’). This includes a cash payment of $1 Billion and another $500 Million in debt assumption.

This is still not a done deal. DynCorp has 28 days to solicit alternative proposals from third parties, and the company said it “intends to consider any such proposals.” Additionally, it must be approved by shareholders who will receive $17.55 per share as well as federal regulators. Watchdog groups opposed to the merger claim that this move will bring the company private and less prone to oversight.

While DynCorp is not a manufacturer of Soldier Systems items they do provide a great deal of services to the US Government. You can hardly deploy to theater without running into them in one capacity or another. Of course Cerberus owns Tier 1 Group as well Freedom Group, a conglomeration of companies concentrating in the firearms and tactical business.

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ATK Purchases Blackhawk

Monday, April 12th, 2010

ATK has purchased Blackhawk Products Group for an undisclosed sum. (Whew, it’s nice to finally be able to say that after sitting on that story all weekend.) In a move that begs more questions than answers, ATK has purchased another of the major players in the tactical nylon industry. Almost a year ago they purchased Eagle Industries but with the purchase of BPG they also get a manufacturer of apparel, footwear, hydration, sleep systems, armor, and weapons accessories.

Cats and Dogs Living Together…while some might see Eagle and Blackhawk long rivals in the tactical industry, under the same corporate umbrella as a sign of the end times, it is not. Just interesting times.

So this obviously begs the question, will ATK consolidate these concerns or will they follow the lead of Armor Holdings, gobbling up companies and allowing them to continue to compete even under their umbrella?

In closing we would like to say, “Congratulations Mike!” and we look forward to seeing what this new future brings to ATK, BPG and the industry as a whole.

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Army Seeks Small Business MOLLE Manufacturers

Thursday, April 1st, 2010

While the Sources Sought Notice came and went, the fact remains that the Army is considering seeking small businesses to manufacture MOLLE. Yes, businesses as they anticipate multiple awards. They are looking at a three year Indefinite Delivery Indefinite Quantity (IDIQ) contract with one base year plus two option years. This means that the government will set minimums and maximums for a contract year and will place orders as they are needed and within those limits. Option years are awarded at the discretion of the government based upon need and performance.

For example, the government proposes a maximum base year consisting of production of 50,000 MOLLE Rifleman sets, 50,000 Tactical Assault Panels, 50,000 Medium Rucksacks, 50,000 Hydration Systems, 5000 Grenadier and SAW sets, 10,000 Pistol sets, and 2000 Medic Sets.

One issue that the Sources Sought puts to rest is whether we would see a new solicitation for the still under development Medium Rucksack which just recently finished phase I testing at Fort Knox. Medium Rucksack will become a component of MOLLE and produced under that contract. The Army hopes to begin fielding as early as July for use in Afghanistan.

The sources sought notice contains a great deal of info for those interested in MOLLE and is worth the read.

Posted in Contracts, Industry, MOLLE | Comments Off on Army Seeks Small Business MOLLE Manufacturers

SpecOps Warfighter Expo East 2010

Sunday, March 28th, 2010

We are only a few weeks out from the 2010 SpecOps Warfighter Expo East held at Fayetteville, NC’s Crown Expo Center April 13-16. Like last year it will be held in conjunction with the annual Special Forces Branch Symposium. The expo is open at no charge to all active duty, active reserve, law enforcement and government personnel. However, there is a fee for attendance by industry.

For more information or to register, visit DefenseTradeShows.com.

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Introducing NET TAC

Thursday, March 25th, 2010

Larry Vickers has long been interested in offering a one-stop resource for those who want to purchase is signature products as well as those that he uses himself. With his demanding training schedule it was a project that had to stay on the back burner. However, he recently teamed with Duke Creative, a company earning a well deserved reputation for excellence in developing e-commerce solutions for tactical companies.

“I’ve been wanting to start an e-commerce site for a while now and have never had the opportunity to do so. Now that I’ve partnered with a webmaster knowledgeable in tactical gear, he agreed to start and manage the store for me; a no-brainer situation considering the success he’s brought to other e-commerce websites,” said Larry Vickers, renowned tactical trainer.

Net Tac is up and running and featuring products from Blue Force Gear, Daniel Defense, EOTAC, and TangoDown.

www.NetTac.com

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Posted in Clothing, Industry, weapons | Comments Off on Introducing NET TAC

Vltor Drops Magpul Suit

Tuesday, March 23rd, 2010

Vltor Weapons Systems has announced that they have reached an amicable agreement with Magpul and are dropping the patent infringement suit filed last October according to an Vltor press release. Vltor went on to further state they are happy with the settlement that fully protects their interests but that further details would not be forthcoming.

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Posted in Industry, weapons | Comments Off on Vltor Drops Magpul Suit

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