Teal Group In The Media

Our analysts are sought out by the business community and by the media for their independent insights and forecasts.

16
May
2008

Lockheed Wins GPS Satellite Contract

Featuring: Marco A. Caceres

Lockheed Wins GPS Satellite Contract

Marco Caceres, a senior space analyst at the Teal Group in Fairfax, said the Pentagon has been lucky that the current GPS systems have lasted so long, but they now need to be replaced. “You’re fighting two wars,” he said. “You have military troops all over that have to communicate, and they’re dependent on satellites.” The newest GPS program will be closely watched, as the Pentagon’s space programs have long suffered cost overruns, problematic technologies and delays. John Young, the Pentagon’s undersecretary for acquisition, technology and logistics, said he has directed the Air Force to tie the contractor’s payments to “specific program accomplishments,” not to adjust the scope of the program or change its technical specifications and to “consider solutions which lower cost or risk to deliver within or below budget.”

The oversight efforts, Young said, are part of “continuing a DoD push to award fees more carefully and on a more objective basis.” Of the Pentagon’s eight biggest satellite programs, all are over budget, from at least 20 percent over to more than double the original price, Caceres said. That includes a missile detection and warning satellite system made by Lockheed. “DoD is always looking for the latest technology for its satellites,” Caceres said. “The problem is that technology develops quickly but the development of the satellite itself takes a while. By the time it gets to its maturity, you realize there’s more advanced technology out there, so you add that at the last minute, and it leads to higher costs.”

Media Outlet: The Washington Post Tags GPS III | Lockheed Martin

02
March
2008

Northrop, EADS Tanker Win Sparks Controversy in U.S.

Featuring: Joel Johnson

Northrop, EADS Tanker Win Sparks Controversy in U.S.

"The last bastion of the losing protectionist is to wave the bloody 'Buy America' shirt," said analyst Joel Johnson of the Teal Group. "It tells you they don't have another argument -- e.g., the (Northrop) product was newer, more capable and less risky."

 

Media Outlet: The Washington Post Tags Aerial Tanker | Boeing | EADS | Northrop Grumman

29
February
2008

At Boeing, shock — and then anger

Featuring: Richard L. Aboulafia

At Boeing, shock — and then anger

He said the decision to have Northrop and EADS build the new tanker would be difficult to overturn if an appeal occurred. Richard Aboulafia of the Teal Group in Fairfax, Va., said the decision was not “what anyone expected” because Boeing had the home team and incumbent advantage. He said there is very little historical precedent that a protest would result in overturning an award.

Media Outlet: Seattle Post-Intelligencer Tags Boeing | Tanker

11
February
2008

Muscular Defense Plan Buoys Contractors

Featuring: Philip Finnegan

Muscular Defense Plan Buoys Contractors

That would mean big new opportunities and more funding for major projects for local defense and technology contractors, including Lockheed Martin of Bethesda, General Dynamics of Falls Church, SI International of Reston, CACI International of Arlington and Northrop Grumman, which is based in Los Angeles but has a large presence in the Washington area. “The expectation has been that it can’t continue to increase as it has,” Phil Finnegan, a defense analyst at the Teal Group in Fairfax, said of defense spending. “But it has surprised everyone to see how long this increase has continued. This budget was a great budget for all defense contractors. It includes continuing growth — not as fast as last year, but it enabled everyone’s programs to be funded.” Finnegan, other analysts and executives at contracting companies said they don’t expect the party to last indefinitely.

Media Outlet: The Washington Post Tags Defense Budget

15
June
2007

Intelsat Puts Itself Back on the Auction Block

Featuring: Marco A. Caceres

Intelsat Puts Itself Back on the Auction Block

Combining the consumer businesses with the world’s largest commercial satellite operator could raise significant antitrust issues, analysts said. “Of course this has regulatory red lights all over it,” said Marco Caceres, an analyst with the Teal Group, a Fairfax market-research firm. “Now you’re talking about companies basically having a monopoly within satellite broadcasting, making it really tough for newcomers to compete.”

Media Outlet: The Washington Post Tags Satellite

06
April
2007

Light Warfare

Featuring: Dr. David L. Rockwell

Light Warfare

Raytheon’s Quiet Eyes is one of several examples of new directed energy weaponry, a munitions class that includes lasers, highpowered microwaves and particle beams. Spending on surface-to-air missile-zapping will average $830 million a year over the next decade, estimates Teal Group, a defense consultancy, up from $450 million today. Directed energy technology is wellrooted in many of the 2,900 “threat reduction” research programs at the Los Alamos National Laboratory. “We see a future in lower-cost systems, and Raytheon has both a head start and a very solid production base already with its [Sidewinder] missiles,” says David Rockwell, a senior electronics analyst at Teal. “It could be a big deal for them.”

Tags Directed Energy Weapons | Raytheon

31
October
2006

Free to a Good Country

Featuring: Joel Johnson

Free to a Good Country

"Some bread on the table is better than none," said Joel Johnson, an expert on international arms sales at the Teal Group, a Washington-area consulting firm. "Rather than turn a Navy ship into a reef, it's better to send it to a third-world nation which can then hire an American contractor to refurbish it."

 

Media Outlet: The Washington Post Tags Navy ships | Refurbishment

30
June
2006

Questions orbit around future of NASA

Featuring: Marco A. Caceres

Questions orbit around future of NASA

As the federal deficit grows, it may be difficult to find the $104 billion it will cost to send Americans back to the moon, say Launius and Marco Caceres of the Teal Group, an aerospace analysis firm. Caceres warns NASA’s competing priorities may have consequences, especially if corners are cut. The nation “is giving NASA all this difficult, visionary stuff to do but … not giving them the resources to do it,” he says. “Eventually it catches up with you and you have an accident.”

Media Outlet: USA Today Tags NASA

31
October
2005

Small Firms Turn to Drones

Featuring: Steven J. Zaloga

Small Firms Turn to Drones

But the mini drones are far more common, making up about 75 percent of the military’s pilotless planes. They are cheaper to build, easier to use, and popular with the ground troops because they have saved hundreds of lives, said Steven Zaloga, a senior analyst with the Teal Group Corp., a defense consulting firm in Fairfax. Aiding their proliferation is the Pentagon’s decision to give millions of dollars to the commands overseas to spend on their most pressing wartime needs without going through the time-consuming purchasing bureaucracy, Zaloga said. Getting rid of the red tape opened the flood gates for small firms. “These mini drones gave the people with their boots on the ground mini-intelligence systems, which in turn spurred more demand,” Zaloga said. “Drones are no longer just for the general sitting in his Pentagon office.”

Media Outlet: The Washington Post Tags Drones

08
March
2005

BAE to Buy Maker of Bradley Vehicles

Featuring: Philip Finnegan

BAE to Buy Maker of Bradley Vehicles

Analysts said the acquisition would give BAE, already the biggest foreign player in the U.S. defense market, an even better chance of winning top Pentagon contracts. “Their whole strategy has really been focused on the U.S.,” said Philip Finnegan, director of corporate analysis for the Teal Group, noting that the company has made several U.S. acquisitions in recent years.

Media Outlet: The Washington Post Tags Acquisitions | BAE Systems | United Defense Industries

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