A12
S
KLMNO WASHINGTON BUSINESS Government targets ineffective contracts to cut costs
Lockheed Martin, IBM among companies with projects under review
by Kate Andersen Brower and Todd Shields
The Obama administration
said Monday that it plans to re- view 26 government informa- tion-technology projects worth a total of $30 billion as part of an effort to trim back or cancel con- tracts that aren’t meeting goals. Among the contracts singled out for scrutiny were a $1.5 bil- lion project for Lockheed Martin to update air traffic control equipment; a $281 million award to Computer Sciences Corp. to help process patent applications; and a $350 million project for AT&T to improve the Treasury Department’s telecommunica- tions. Before leaving office last month, former White House budget director Peter Orszag or- dered a review of the $80 billion the government spends annually on technology to determine whether lax oversight has led to cost overruns, delays and the im- plementation of obsolete sys- tems. “We need to end a culture in
Washington where we continue to throw good money after bad money,” said Vivek Kundra, the government’s chief information
was identified for review, as was Raytheon’s $251million contract for the patent-processing project. The White House worked with
federal agencies to determine which projects should be includ- ed on the “high priority” list in an effort to make them more effi- cient, Kundra said. He cited a De- partment of Veterans Affairs project that got under way in 1998 at a cost of $250 million, was halted in 2004, restarted in 2005 and stopped again “after spending millions of dollars.” Kundra wouldn’t say when a decision would be made on proj- ects that may be canceled. AT&T spokesman Michael Bal- moris declined to comment. Lockheed Martin spokesman Jef- fery Adams, Computer Sciences Corp. spokeswoman Marian Herbst Kelly, IBM spokesman Clint Roswell, and Raytheon spokesman Jon Kasle all said they couldn’t immediately com- ment. The initiative is part of a larger
JAMES M. THRESHER/THE WASHINGTON POST
“We need to end a culture in Washington where we continue to throw good money after bad money,” said Vivek Kundra, the government’s chief information officer. Projects proposed for review total $30 billion.
officer, on a conference call Mon- day. “If these projects can’t be turned around, if they don’t add value, we will take the appropri- ate actions. They may be discon-
tinued.” The projects cited range from
$64.5million awarded by the Commerce Department for an in- formation system to $7.6 billion
for an Interior Department sys- tem.
IBM’s portion of a $4.5 billion
cargo-tracking system for the De- partment of Homeland Security
effort by the Obama administra- tion to pare the budget deficit, which the White House projects to be a record $1.5 trillion this year, or about 10 percent of the U.S. gross domestic product. Oba- ma has ordered a three-year freeze in non-defense and nation- al security programs in his budg- et released Feb. 1. He has also or- dered some agencies to reduce their 2012 budget requests by 5 percent.
— Bloomberg News Edens & Avant buys its 30th area shopping center
by Danielle Douglas Capital Business Staff Writer
Edens & Avant, a national retail
developer and operator, said Monday it has purchased the Hunters Woods Village Center in Reston for an undisclosed price, an acquisition that brings to 30 the number of Washington area shopping centers owned by the company. “We are absolutely focused on
investment in this market for the long term,” said John Cocker, Edens & Avant’s director of in- vestments for the mid-Atlantic re- gion. “And Hunters Woods is a great example of the product type that Edens & Avant would be in- terested in acquiring.” Anchored by a Safeway grocery
store, the 120,195-square-foot Hunters Woods is typical of the more than 129 retail centers in Edens & Avant’s national port- folio. The company, based in Co- lumbia, S.C., specializes in the ac- quisition and development of neighborhood shopping centers or mixed-use, open-air properties. This latest deal comes on the heels of a string of recent build- outs and renovations for Edens & Avant in the Washington region. In late June, Edens & Avant broke ground on the Mosaic, a 31-acre town center in Merrifield sched- uled to open in fall 2012. The de- velopment, which is more than 60 percent leased, features 400,000 square feet of retail space, a 150-key hotel room, 60,000 square feet of office space, an eight-screen movie theater and
Monitor your investments at
washingtonpost.com/markets.
Daily Stock Market Performance Index
Dow Jones Industrial Average
11,300 10,600 9900 9200
Nasdaq Composite Index
2550 2350 2150 1950
S&P 500 Index 1230
1170 1110 1050 990
1067.36 –0.4 –4.3 2159.63 –0.9 –4.8
114 townhouses. Work is also underway for the
redevelopment of two additional properties in Northern Virginia. At the Shops at West Falls Church, just off Lee Highway, the com- pany is remodeling the Safeway and adding a pancake house. Edens & Avant bought the 85,097- square-foot shopping mall in 2005 for $18.6 million as a part of the purchase of several proper- ties, according to Real Capital An- alytics. In Arlington County, the com-
pany is repositioning Arlington Ridge, an 84,502-square-foot strip center that it purchased in 2007 for $21.7million. The shopping center will feature outdoor dining and pedestrian-friendly walk- ways. Construction on both assets is slated for completion this fall.
Edens & Avant is also planning some capital improvements for Hunters Woods next year, hoping to bring the center, which is more than 95 percent occupied, to ca- pacity. The company is renovating more than 20 of its shopping cen- ters nationwide. “We like to create places where the community can be engaged with the businesses in our shop- ping centers,” Cocker said. “And we believe that we can add value for the community with these re- developments.”
Although a number of Edens &
Avant’s assets are located in the Washington suburbs, the com- pany is also seeking to establish itself in the downtown D.C. retail market, most notably with the ac- quisition of the 116,083-square- foot retail portion of CityVista in
THE MARKETS 10,174.41
Close %Chg –0.4
Daily
%Chg –2.4
YTD
Industry Group Personal Products
S&P 500 Industry Group Snapshot Daily
Diversified Consumer Svcs Food & Staples Retailing Pharmaceuticals Multi-Utilities
Professional Services Office Electronics Airlines
Road & Rail Machinery
%Chg 1.24 1.23 1.01
0.80 0.79
–1.90 –1.91 –1.95 –1.97 –2.04
International Stock Markets Daily
Americas
Brazil (Bovespa) Canada (S&P/TSX Comp.) Mexico (Bolsa) Europe
Eurozone (DJ Stoxx 600) France (CAC 40) Germany (DAX) U.K. (FTSE 100)
Asia Pacific S O N D J
Company 3M
Alcoa
AmExp AT&T BoA
Boeing
Caterpillar Chevron
Dow Jones 30 Industrials Daily
Close 81.08
10.37 40.20 26.49 12.87 63.30 66.84 75.05
Cisco Systems 21.68 Coca-Cola DuPont
Home Depot 27.83 HP
55.60 40.37
Exxon Mobil 59.50 GE
14.89 39.04
%Chg %Chg 0.5
–1.9 –35.7 –1.4 0.2
YTD –1.9 –0.8
–5.5
–2.0 –2.9 0.0
–2.5 0.5 0.1 1.0
0.0 –14.5 16.9 17.3 –2.5 –9.4 –2.5 19.9
–0.9 –1.2
Other Measures Index
–12.7 –1.6 –3.8
–2.0 –24.2 Close
DJ Total Stock Market Index 11,094.37 Russell 2000
602.67
Post-Bloomberg DC Area Index 183.22 CBOE Volatility (VIX)
25.66 F M A M J
Company IBM
Intel J&J
JPMorgCh Kraft Foods McDonald's Merck
Microsoft P&G Co Pfizer
Travelers Wal-Mart Walt Disney
Close 126.47
18.70 58.87 36.88 29.15 73.34 34.97 24.28 60.03 16.10 49.74
United Tech 67.22 Verizon
29.41 51.14 32.93
Daily
–1.1 0.2
–0.7 0.2 0.4 1.5
–0.7 –1.3 0.1 1.8
–0.4 J A
%Chg %Chg –0.8
YTD –3.4
–8.3 –8.6 –11.5 7.2
17.5 –4.3
0.2 –20.3 0.1 1.1
–1.0
–11.5 –0.2 –3.2 –5.0 –4.3 2.1
Daily%Chg YTD%Chg –0.5 –1.3 –0.5 0.7
–3.5 –3.6 –2.2 18.4
Australia (ASX 200) China (CSI 300) Hong Kong (Hang Seng) Japan (Nikkei)
4429.00 2896.19
20,889.01 9116.69
Cross Currency Rates EU €
US $
US $ per EU € per
Japan ¥ per Britain £ per Brazil R$ per
Canada $ per Mexico $ per
0.7898 85.2400 107.9400
0.6444 0.8159 0.0076 1.7700 1.0521
2.2411 0.0208 1.3322 0.0123
0.0
–0.1 –0.4 –0.7
Japan ¥
1.2662 0.0117 0.0093
Britain £
1.5518 0.5647 1.2256 0.4462
Brazil R$ Canada $ Mexico $ 0.9505 0.0774 0.7507 0.0611
132.2800 48.1509 81.0200 6.5980 0.3639
2.7465 1.6326 0.5944
0.6125 0.0499 1.6824 0.1370 0.0814
12.9201 16.3587 0.1520 20.0488 7.2990 12.2801
Interest Rates Consumer Rates
Money market funds 6-Month CDs 1-Year CDs 5-Year CDs New car loan Home-equity loan
0.71 0.79 1.08 2.36 6.10 7.36
Close
65,981.86 11,718.63 32,142.67
253.76
3553.23 6010.91 5234.84
%Chg –1.0 0.0
–0.5
0.6 0.8 0.1 0.8
YTD%Chg –20%
–2.5% 0 +2.5%
Commodities Futures
Copper Corn
Crude Oil Gold
Natural Gas
$3.2915 $4.1725 $73.10
Close %Chg 0.0
Daily
$1226.90 $4.07
–0.9 –1.0 0.0
–1.2
Value of $1000 invested for the past: Daily
0% +20%
Exchange-Traded (Ticker) %Chg Coffee (COFF.L) Copper (COPA.L) Corn (CORN.L) Cotton (COTN.L) Crude Oil (CRUD.L) Gasoline (UGAS.L) Gold (BULL.L)
–0.2 0.1 0.3 0.5
Natural Gas (NGAS.L) Silver (SLVR.L)
Gainers
–0.8 –0.7 –0.2 –1.7 0.3
Gainers and Losers from the S&P 1500 Index Daily
Close %Chg
CommVault Systems $23.65 13.8 Compellent Tech Kensey Nash
Cal-Maine Foods Sanderson Farms Washington Post Petroleum Dev
WorldFuelServices Blue Coat Systems Micron Technology Sigma Designs
IPC The Hospitalist Avon Products
Diamond Foods Inc Zep Inc
Informatica Boston Beer SUPERVALU
Smithfield Foods Sterling Bancshares
0.32% 0.25% 3.25%
Bank Prime Federal Funds LIBOR 3-Month
30-Year fixed mortgage 15-Year fixed mortgage 1-Year ARM
3.65% 3.95% 4.52%
10-year note Yield:
5-year note Yield:
2.60 1.41
4:30 p.m. New York time.
$15.56 11.5 $24.73 8.2 $32.51 7.2 $45.80
6.1
$368.78 6.1 $25.52 4.6 $26.32 4.5 $18.16 3.8 $7.38 3.7 $9.97 3.5 $24.00 3.0 $29.79 2.7 $44.92 2.7 $16.97 2.7 $32.80 2.5 $66.80 2.5 $10.33 2.5 $15.73 2.4 $4.75 2.4
Losers Ciber
Arctic Cat Nautilus Inc
Volt Info Sciences Medcath Corp
KendleInternational GibraltarIndustries Kelly Services
Close %Chg $2.65 –9.6
Daily
$7.42 –9.3 $1.41 –9.0 $6.72 –8.4 $7.80 –8.2 $8.71 –8.2 $7.69 –8.1 $10.67 –7.5
UnitedCommunityBank $2.50 –7.1 Penford Corp Cambrex CDI Corp
Brunswick Corp Neenah Paper Inc Mannatech Inc Spherion Kirkland's Griffon
Cascade Corp Viad Corp
2-year note Yield:
6-month bill Yield:
0.48 0.18
Note: Bank prime is from 10 major banks. Federal Funds rate is the market rate, which can vary from the federal target rate. LIBOR is the London Interbank Offered Rate. Consumer rates are from Bankrate. All figures as of
$5.02 –7.0 $4.07 –6.7 $12.37 –6.6 $13.85 –6.4 $14.52 –6.3 $2.29 –6.1 $5.69 –6.1 $11.42 –6.0 $11.57 –5.9 $28.71 –5.9 $15.68 –5.9
Treasury Performance Over Past Three Months
Orange Juice Silver
Soybeans Sugar Wheat
$800
Mount Vernon Triangle. Cocker said that the company will enter- tain other acquisitions or ground- up development opportunities in the Washington market as they present themselves.
douglasd@washpost.com LOCAL DIGEST EXECUTIVES
ManTech makes moves at the top ManTech International said
Monday that it is reorganizing its top management ranks. The presidents of its three main divisions will also carry the title of chief operating officer and will re- port to chief executive George J. Pedersen, said the Fairfax-based company, which provides tech- nical and engineering services to numerous government clients. The presidents are Louis M. Ad- deo, who oversees the Technical Services Group; Terry M. Ryan, Systems Engineering and Ad- vanced Technologies; and L. Wil- liam Varner, Mission, Cyber and Technology Solutions. —Associated Press
MANUFACTURING
Grace unit will raise some prices
Grace Construction Products, a division of Columbia-based W.R. Grace, said it plans to raise prices on its concrete admixtures and decorative concrete products. The price increases, effective
Jan. 1 or as contracts allow, aver- age from 6 percent to 10 percent. The unit makes various prod-
ucts that make concrete stronger, longer-lasting and more crack- resistant, as well as additives for cement processing, fire-protec- tion, waterproofing and masonry products.
—Associated Press
MERGERS & ACQUISITIONS
$12 million deal for American Capital American Capital said on Mon-
day that it received $12 million from the sale of its cybersecurity firm Narus to Boeing.
American Capital said the fig- ure rises to $21 million if invest- ments in Narus by American Cap- ital’s affiliated funds are counted. Still, the proceeds were less than its second-quarter valuation of Narus by $2 million, or 13 per- cent, the Bethesda-based firm said.
On Mondays, The Washington Post offers Capital Business, a weekly publication covering the region’s business community. A one-year subscription costs $49 and is available only to Post subscribers. Visit
washingtonpost.com/ capitalbusiness for more details.
American Capital said it real- ized a gain on the transaction of $3 million during the third quar- ter.
Narus will be a subsidiary with- in Boeing’s Network and Space Systems unit in Sunnyvale, Calif. —Associated Press
Data and graphics by
TUESDAY, AUGUST 24, 2010
Close %Chg $1.3375 –0.8 $17.99
Daily 0.0
$10.0700 –0.2 $0.2007 $6.9225
+0.6 +2.0
day $1000
month $1200
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56