Tuesday, January 6, 2009
Introducing the Insider
The Industry Defined
HUBZones: Anyone Can Play
Beyond Reproach: The Incumbent's Bind
Breaking Wave: Human Resources BPO
Cooperative Personnel Services: Differentiating Not a Problem
Adventures in Marketing
Policy & Regs: Can We Satisfy the Appetite for Cleared Personnel?
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Posted January 2, 2008
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The security around Booz Allen's "exploration" or "strategic alternatives" hasn't muffled signals that the potential deal is "almost done," according to multiple sources. We provide in the full January issue three separate items on this very unusual development for one of the industry's most distinguished firms. First, there is an update on the potential deal we've heard about. Second, we analyze the potential implications for the Booz Allen government business if the potential deal completes. Third, given the volatile flux facing the industry from a number of quarters, we analyze the implications for the industry of the potential deal.
We also mention in passing that a growing number of private equity buyouts have been falling through for a variety of reasons. We have no idea if they apply to this potential deal, but they are ambient in the business environment, e.g., banks too pinched to lend generous "leverage."
We did a pretty good job prognosticating key developments affecting the industry in 2007, including growth and profit trends, M&A activity, and a realistic view of the return of oversight. We were dead wrong about the FFRDCs being interested in serving in program management support roles—a good fit in terms of lack of perceived organizational conflicts of interest.
Next, we look a year ahead to identify some anticipated developments pertinent to government services firms. If you liked the surprises of 2007, you'll probably love 2008. In general, we see more of the same kinds of challenges, with the degree of difficulty probably increasing for each.
Just for fun, subscribers can also check out our OUT/IN list for the new year. To give you a flavor:
Out: Many presidential wannabes bashing contractors
In: Two presidential nominees bashing in unison
People in the industry know that the applicable procurement regs vary in many agencies from the governmentwide regs. "Supplements" tailor regs to the specific needs of agency missions. This is both good and bad for agencies and their suppliers. Alan Chvotkin reviews this sometimes dry subject and explains the implications of proposals to make the FAR more monolithic, again.