API Technologies Enters Into Agreement with United States Department of Defense
API Technologies Corp., a provider of highly engineered products and services to the global defense sector, and the United States Department of Defense, have established a corporate structure through a proxy agreement that enables API, through its direct subsidiary, API Defense USA, to compete for classified programs and contracts from the DoD. This agreement opens doors for API Defense USA to participate in the fastest growing segment of DoD contracting.
According to Defense Department budget-watcher Bill Sweetman of Aviation Week, the R&D, procurement and operations budgets for 2010 is just over $50 billion for classified programs.
Under the proxy agreement, all of API Technologies' current operating subsidiaries will become direct subsidiaries of the API's Secret cleared subsidiary, API Defense USA, which will be governed by a Proxy Board with the required security clearances. Vice Admiral Robert T. Conway, Jr. (U.S. Navy, retired), Rear Admiral Kenneth L. Fisher (U.S. Navy, retired) and General Richard D. Hearney (U.S. Marine Corps, retired) will become directors of API Defense USA. Under the new structure, Mr. Stephen Pudles, has become the CEO of API Defense USA, responsible for all of the Company's global operations, and Mr. Phillip DeZwirek, currently Chairman of API Technologies, has become its CEO.
"This structural change immediately adds significant strategic impact to our business and is the culmination of several months of joint effort between API and the Department of Defense," said Stephen Pudles, CEO of API Defense USA. "We have unlocked the classified-projects procurement market by bringing in three experienced retired military personnel, with the necessary security clearances, to fill these critical board positions. API Defense USA can now compete for new and growing contracts that were previously off-limits."
Mr. Pudles continued, "Admirals Conway and Fisher as well as General Hearney, signal that API Technologies and API Defense USA are even better positioned to compete at the highest level of defense contracting where security is of paramount concern. I am confident that our Proxy Board members will enable API Defense USA to increase its business and thus benefit API's shareholders as we continue to increase revenues, profits and overall value."
"We are all very confident that we have now organized and positioned API Technologies and all of our subsidiaries to better compete for these important new sources of revenue for our company," said Mr. DeZwirek, API Technologies Chairman and CEO.
Vice Admiral Robert T. Conway, Jr., USN, is a career Surface Warfare Officer whose last assignment was as the Commander, Navy Installations Command, Washington, D.C., where he served as the Navy technical authority for Shore Installation Management. He has extensive major staff experience within the DoD and is familiar with government contracting requirements and regulations. He received his master's degree from Providence University, Providence, R.I. and is a graduate of the Industrial College of the Armed Forces at the National Defense University, Washington, D.C. In 2009, he founded R.T. Conway & Associates, a consulting business to assist corporate executives on matters involving Infrastructure, Facilities, Security, Technology and Renewable Energy.
Rear Admiral Kenneth L. Fisher, USN, is an experienced naval aviator with extensive operational and major staff experience. His last assignment prior to retirement was as Deputy and Chief of Staff, Commander in Chief, U.S. Pacific Fleet. He too is very familiar with government contracts having spent five years as a senior leader for Booz Allen Hamilton and two years in business development for a major DoD Contractor in addition to consulting for other major defense contractors.
General Richard D. Hearney, USMC, culminated his military career as the Assistant Commandant of the Marine Corps. As such, he was involved with major acquisitions for the Marine Corps at the highest level of the DoD. After retirement, he founded RDM Strategies to help innovative companies apply their technologies to protecting our homeland. Prior to that, he served as president and chief executive officer of Business Executives for National Security (BENS), a national, nonpartisan organization of business leaders. Additionally, General Hearney was vice president of Military Aircraft and Missile Systems Group for the Boeing Co. and was the regional vice president of business development for Western Europe for the McDonnell Douglas Corp.