Posted on 12/18/2006 3:36:46 PM PST by RDTF
Shares of DynCorp International (DCP: 16.05, +2.14, +15.4%) rocketed up 15% Monday after the government contractor wrested a lucrative translation and interpreting contract away from competitor L-3 Communications (LLL: 79.00, -4.72, -5.6%). The stock gained as much as 21% earlier in the session.
The Falls Church, Va., company announced Monday that Global Linguistic Solutions, a joint venture formed by DynCorp International and privately held McNeil Technologies, won a $4.6 billion, five-year contract from the Department of Defense to provide language services to the U.S. Army and other U.S. government agencies fighting in Iraq. The contract calls for 6,000 local Arabic translators and up to 1,000 U.S. staff who are trained in the regional languages.
The contract, known colloquially on Wall Street as the "taxicab contract" for the number of bilingual taxi drivers who became translators working with L-3, takes effect in March, and is expected to generate $600 million in sales. It represents a huge leap for DynCorp, which pulls in about $2 billion in annual revenue and previously had no experience in overseeing linguistics services. Its support work in Iraq and Afghanistan includes base operations, drug eradication programs, training for law enforcement officers, and security services. Provides maintenance services for aircraft, weapons, support equipment as well.
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It's not clear what DynCorp did right to win this contract, but it buoys the company's prospects, which analysts agree were already good. DynCorp was the only rival bidder for the linguistics contract, and Walton described the company as "the clear underdog."
President of the joint venture is retired U.S. Army Maj. Gen. James "Spider" Marks, who oversaw the Iraq language program as intelligence chief for the ground forces that invaded the country in March 2003. DynCorp said the joint venture vice president is Michael Simone, former commandant of Defense Language Institute.
(Excerpt) Read more at smartmoney.com ...
ping-
more info
DynCorp sure gets around. I thought they only dealt with aviation.
Dyncorp is a subsidery of Computer Sciences corp. It is the 2nd largest "soldier of fortune " company in the U.S.
L3 communications (mentioned in the article) has MPRI as its "soldier of fortune" company, and is the largest in the country.
Thanks for the info again.
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