Moog Resolves Security Clearance Hurdle by Forming Subsidiary

July 9, 2024
Moog Military Aircraft will have an independent organizational structure and procedures to ensure the protection of classified information.

Jul. 5—Moog Inc. has resolved a security clearance issue that stemmed from the fact the company's CEO, Pat Roche, isn't a U.S. citizen.

The U.S. Defense Counterintelligence and Security Agency had notified Moog last year that the company couldn't enter into new contracts requiring a federal security clearance as a result. Roche, an Irish citizen, is a legal U.S. permanent resident.

In a regulatory filing this week, the Elma-based motion-equipment manufacturer said it had formed Moog Military Aircraft, a subsidiary "with an independent organizational structure and procedures to ensure the protection of classified information." The Department of Defense has given Moog a new facility security clearance.

Mark Graczyk is serving as president and senior management official for Moog Military Aircraft, reporting to the subsidiary's board of directors. Moog said the facility security clearance allows the company to bid on and receive new classified contracts from U.S. government contracting agencies and from prime contractors.

"We are pleased with the receipt of our security clearance, which allows our new subsidiary to bid on and receive new classified contracts," Roche said in a statement. "There continues to be increased demand for critical U.S. defense applications. I believe Moog's innovative solutions can solve for these demanding technical challenges."

Moog previously said only about 2% of its revenues from the past fiscal year were generated from contracts requiring a facility security clearance. The company said the resolution of the issue will not impact its financial guidance for the current fiscal year.

In April, Moog revealed that its newly formed subsidiary focused on that work had received an interim security clearance, allowing the subsidiary's leadership to work toward obtaining a final and full security clearance.


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