My Two Census

Formerly the non-partisan watchdog of the 2010 US Census, and currently an opinion blog that covers all things political, media, foreign policy, globalization, and culture…but sometimes returning to its census/demographics roots.

Posts Tagged ‘contractors’

Contractors still robbing America’s tax dollars: Harris Corp. reports huge earnings as 2010 systems fail miserably

Thursday, April 29th, 2010

Yup, it’s true. We hate the Harris Corporation. These people stole $800 million from United States taxpayers, and I hope that their stock drops considerably when people and the media get wind of this. Hopefully members of Congress stop kowtowing to this horrible corporation and start blacklisting them from receiving government contracts because of their tumultuous history of poor performance. (To the multitude of Harris Corp. employees who, according to Google Analytics, regularly read this blog, maybe your company should take some action to correct its mistakes now before the feds do it for you!)  Here’s a press release about their latest earnings:

Harris Corporation Reports Strong Third Quarter Orders, Revenue and Earnings

Increases Fiscal 2010 Guidance; Expects Higher Revenue and Earnings in Fiscal 2011

MELBOURNE, Fla., April 28, 2010 /PRNewswire via COMTEX/ — Harris Corporation /quotes/comstock/13*!hrs/quotes/nls/hrs (HRS 51.97, +2.18, +4.38%) reported GAAP income from continuing operations for the third quarter of fiscal 2010 of $166 million, or $1.27 per diluted share, compared with $136 million, or $1.02 per diluted share, in the prior-year quarter. Excluding acquisition-related costs, non-GAAP income from continuing operations in the third quarter of fiscal 2010 was $170 million, or $1.30 per diluted share, compared with $136 million, or $1.02 per diluted share, in the prior-year quarter. Revenue for the third quarter of fiscal 2010 was $1.33 billion, compared with $1.21 billion for the third quarter of fiscal 2009. Orders in the third quarter were $1.45 billion, compared with $1.03 billion in the prior-year quarter. A reconciliation of GAAP to non-GAAP financial measures is provided in Tables 5 through 7, along with the accompanying notes.

“Earnings in the third quarter increased 25 percent, reflecting continued excellent operating performance in RF Communications and Government Communications Systems,” said Howard L. Lance, chairman, president and chief executive officer. “Revenue increased 10 percent for the company, and higher orders across all of our segments should continue to drive double-digit revenue growth in the fourth quarter. Our strategy of investing in new technology and applications to solve our customers’ complex, mission-critical, and quickly evolving communications and information technology needs is working. Higher orders, strong backlog and a robust opportunity pipeline should position Harris for achieving another year of higher revenue and earnings in fiscal 2011.”

Increased Earnings Guidance

The company has increased its guidance for non-GAAP income from continuing operations for fiscal 2010 to a range of $4.35 to $4.45 per diluted share ($4.23 to $4.33 per diluted share on a GAAP basis). This increase compares with a previous range of $4.25 to $4.35 per diluted share ($4.13 to $4.23 per diluted share on a GAAP basis). Fiscal 2010 non-GAAP earnings guidance excludes acquisition-related costs. Revenue in fiscal 2010 is still expected to be in a range of $5.2 to $5.3 billion.

Guidance for fiscal 2011 earnings is being initiated in a range of $4.55 to $4.65 per diluted share, representing a year-over-year increase of 3 to 6 percent, compared with the mid-point of fiscal 2010 non-GAAP guidance. Fiscal 2011 revenue is expected to be in a range of $5.5 to $5.6 billion, representing a year-over-year increase of 5 to 7 percent compared with the mid-point of fiscal 2010 guidance.

RF Communications

Third quarter orders for the RF Communications segment totaled $656 million, including $488 million in the Tactical Radio Communications business and $168 million in the Public Safety and Professional Communications business. At the end of the third quarter, total backlog in RF Communications was $1.50 billion, including $1.01 billion in the Tactical Radio Communications business and $489 million in the Public Safety and Professional Communications business.

Revenue for RF Communications in the third quarter was $551 million, compared with $439 million in the prior-year quarter. Revenue included $429 million in Tactical Radio Communications, driven primarily by deliveries to the U.S. Army, Marine Corps and Air Force. Revenue in Public Safety and Professional Communications was $122 million.

Operating income for RF Communications was $205 million in the third quarter, compared with $151 million in the prior-year quarter. Non-GAAP operating income, which excludes acquisition-related costs, was $208 million. Non-GAAP operating margin was very strong at 37.8 percent due to favorable product mix, cost-reduction actions implemented in the second half of fiscal 2009, and operational efficiencies.

New orders for tactical radio communication systems in the quarter were driven by:

accelerating customer adoption of the company’s next-generation Falcon III(R) radios in U.S. and international markets;

equipping the military’s 6,644 M-ATVs (Mine Resistant Ambush Protected All-Terrain Vehicles); and

strengthening international demand.

Demand has increased for the company’s JTRS-approved, Falcon III family of ground tactical radios. At the end of the third quarter year-to-date Falcon III orders totaled $620 million. The field-proven radios are providing warfighters with unprecedented situational awareness, bringing new applications such as streaming video for the first time to the tactical edge of the battlefield.

Major Falcon III radio wins in the third quarter included a $73 million order from the U.S. Marines for Falcon III AN/PRC-117G multiband manpack radio systems to provide high-speed networking applications such as streaming video and a $12 million order from the U.S. Marines to upgrade existing Falcon III AN/VRC-110 multiband, multimode vehicular tactical radio systems from 20-watt to 50-watt systems to improve communications over longer distances and enhance reliability in rough terrain. Harris also received a $74 million order for Falcon III AN/PRC-152(C) multiband handheld radio systems in vehicular adapters to equip the military’s new 6,644 M-ATVs. Following the close of the quarter, Harris received a $20 million order from a Department of Defense customer for Falcon III AN/PRC-117G multiband manpack radio systems.

Other significant U.S. orders in the third quarter included a $78 million order for Falcon II(R) AN/VRC-104 high-frequency (HF) tactical radio systems also to equip the military’s 6,644 M-ATVs. Following the close of the quarter, Harris received a $101 million order for Falcon II AN/PRC-117F multiband vehicular radios to equip the next phase of M-ATV purchases and to retrofit other existing MRAP vehicles.

International tactical radio wins in the third quarter included a $112 million order from the Australian Department of Defence that was predominantly Falcon III AN/PRC-152(C) multiband handheld radios to provide next-generation battlefield networking capabilities. Other major international orders included a $44 million order for Falcon II RF-5800H HF radio systems from a country in Asia, and a $10 million order for Falcon II RF-5800H HF radio systems from the Iraq Ministry of Interior.

In the Public Safety and Professional Communications business, Harris was awarded orders totaling $100 million to upgrade the Miami-Dade County public communications infrastructure to a modern, P25 standards-based digital radio system. The flexible system platform will serve more than 80 agencies and 32,000 users, increasing functionality and improving interoperability among first responders and other radio system users. Also, a $13 million order was received in the quarter for our OpenSky(R) system to connect employees at a Texas-based public utility serving 50 counties.

Following the close of the quarter, Harris received an order from the New York State Police for 1,100 Unity(TM) XG-100P multiband radios. The Unity radios will provide interoperability between the state police and local, metro and county law enforcement organizations. In a single radio, the state police will be able to communicate with local systems that are conventional or digital, and that operate on the various VHF, UHF, 700 MHz or 800 MHz bands.

Government Communications Systems

Third quarter revenue for the Government Communications Systems segment was $666 million, compared with $649 million in the prior-year quarter. Operating income was $90 million in the third quarter, compared with $74 million in the prior-year quarter. Operating margin was strong at 13.6 percent and reflected continued excellent program performance and award fees.

Revenue increased for the Geostationary Operational Environmental Satellite-Series R Ground Segment (GOES-R GS) weather program for the National Oceanic and Atmospheric Administration (NOAA), the Modernization of Enterprise Terminals (MET) program for the U. S. Army, the IT services relocation program for the U.S. Southern Command (USSOUTHCOM) and several classified programs for national intelligence customers. Revenue also benefited from several small, recent acquisitions related primarily to the new growth initiatives of Cyber Integrated Solutions and Healthcare Solutions. Revenue from the Field Data Collection Automation (FDCA) program for the U.S. Census Bureau’s 2010 census declined as the program nears completion.

Brazil’s Census is way more technologically advanced than ours. This is pathetic.

Tuesday, April 27th, 2010

It is a pretty pathetic and sad story when a developing nation’s ability to integrate technology with governance far exceeds our own. Brazil’s strategy saves massive amounts of both time and money. Yet, this is something that I’ve discussed for quite some time with regard to other nations, like Australia. Here’s some news from Brazil which makes you wonder why more people who made decisions about the 2010 Census in the mid 2000s weren’t fired on the spot:

The Harvard Business Review‘s Daily Stat for Tuesday, April 6, 2010, highlighted a disruptive innovation in, of all things, census-taking. According to the publication:

    It’s a national census of hundreds of millions of people across 8 million square kilometers, using a workforce of 230,000 and budget of $1.4 billion. The 2010 U.S. Census? No, it’s Brazil’s 2010 census. The current U.S. headcount, by contrast, requires 3.8 million workers and $14 billion. Census takers in Brazil use PDAs and laptops; those in the U.S. still rely mainly on paper. – Source: Instituto Brasileiro de Geografia e Estatístic

While the United States tends to be seen as the technology innovation capital of the world, it seems we’re falling down in “government services innovation.” Doesn’t the US Census fall under the administration’s social innovation program? What other program is intended to have an impact on every single citizen of the US, if not this one?

On any corner of a typical US city, one can buy GPS-enabled, off-the-shelf, 3G-powered mobile devices, with local storage for data collection and Web-enabled connections to the back office. In short, the perfect mobile device for census collections is almost a commodity.

But it seems the US Census Bureau made the classic Innovator’s Dilemma mistake of choosing the slow, safe (and expensive) player, while the consumer mobile world blew by.

The supplier in question is Harris Corp. (NYSE: HRS), which started work on the mobile census project in 2006. It turns out that four years is an eternity in the modern mobile world, and Harris simply couldn’t match the speed of the market with its own proprietary, custom-built devices.

In contrast to the US approach to having custom devices built, Brazil partnered with LG Electronics Inc. (London: LGLD; Korea: 6657.KS) , as noted in TechTicker: “Brazil will start taking its population census in the second half of this year and to ensure a smooth and efficient counting, the Instituto Brasileiro de Geografia e Estatistica (IBGE) has roped in LG to supply 150,000 GM750 phones.”

The GM750 is ruggedized and comes with its own application; but otherwise, the core phone itself is a device anyone with $100 or less could buy at the corner mobile store.

You may be thinking, who really cares? Perhaps we all should. According to CNN, Hermann Habermann, a former deputy director of the Census Bureau, thinks that without handheld data collection via mobile phone, the government is missing out on a chance to get information more quickly and cheaply than through the mail.

The technology would also help to better identify which Census tract a home is in, which determines an area’s representation in Congress and the distribution of more than $435 billion in federal funds every year. With GPS, according to CNN, the Census Bureau’s Daniel Weinberg, assistant director for the decennial census, anticipated placing residences within a 0.5 percent error rate into the correct tract. Without GPS, the Census Bureau places approximately 5 percent of residences in the wrong tract.

Unfortunately, with the fallback to paper, the error rate is likely to remain, as is the (inadvertent) mis-distribution of funds. While a 4.5 percent error differential may not seem like much, when you’re distributing billions of dollars each percentage point is quite significant in its effect on the local and state economies.

Lessons learned? Pay attention to the trends happening in parallel to your “normal” business and technology world — or you may find that your technological innovation has been disrupted by the fast movers you couldn’t be bothered to notice.

Whether in private, public, government, or other spaces, look around, and you’ll see disruption creeping up on you. Be aware of the technology environment and evolve! Or suffer the costs.

— Dan Keldsen is a Principal and Strategic Advisor at Information Architected.

Earth Day Special: How much waste is there at the Census Bureau?

Saturday, April 24th, 2010

We didn’t cover Earth Day (which was earlier this week) on this site, so here’s our belated Census Bureau Earth Day tribute…The Census Bureau is now printing the address listing pages and other assignment-related materials for the massive  non-response follow-up (NRFU) operations. It seems like the Census didn’t care because all the printers ran non stop 24 hours to print out many documents (details of which are coming soon)…

*Apologies for an earlier version of this post that only semi-listed the materials printed. We will hopefully have a complete list by Monday…