NCI, Inc. [NCIT] this week said it has agreed to acquire certain assets of MTC Technologies [MTCT] related to the company’s support for the Army, a transaction that is being done to help pave the way for BAE Systems‘ pending acquisition of MTC.
The sale of the contract is due to conflict of interest concerns stemming from BAE’s pending $450 million acquisition of MTC, which was announced in December (Defense Daily, Jan. 3). BAE said it still expects its acquisition to close this spring. The company didn’t say if the terms of the deal will be altered as a result of NCI acquiring certain assets of MTC.
NCI said on Tuesday it would acquire MTC’s Program Executive Office Soldier, Project Manager Soldier Warrior, and Project Manager Soldier Equipment contract. The single award contract was issued in March 2007 and has a base period of performance lasting until April 2012, with options that could extend the program through April 2015. The base value of the award is $238.5 million with a ceiling value of $382 million.
NCI expects to retain the professional team currently working on the program to maintain continuity. Terms of the deal were not disclosed. NCI said it expects the transaction to close this month.
For NCI, the acquisition will give it a new customer set within the Army as well as a contract position that still has some years left to it. Moreover, MTC had the original contract prior to its win in the recompete last year, giving it an opportunity to further strengthen its customer relationships.
“The PEO Soldier team has a tremendous reputation with a very strategic customer,” Charles Narang, chairman and CEO of NCI, said in a statement. “They have built an enviable record of performance on this and other contracts with this customer and we believe that the addition of this management team to our company will position us for future expansion in the professional services market area.”
Under the PEO Soldier contract MTC provides a wide range of professional engineering services and support.