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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EDS CEO Michael Jordan characterized the EDS financial state at the end of July as a "tale of two cities." He referred to the positive trend in firmwide financial results, but also to the burden of persistently troubled contracts, the largest being the Navy Marine Corps Intranet. (In June and July, the Insider reported some positive developments on the NMCI front.)
But what about the rest of the EDS federal business? The trade press and securities analysts rarely discuss it because NMCI and the company financial picture crowd it out. In quest of an authoritative sense of where the EDS federal business is heading, NMCI aside, the Insider talked for an hour in late August with Jim Duffey. A 21-year company veteran, he took the reins of the federal business in July as Vice President of Global Sales and Client Solutions, U.S. Government.
In this interview, Duffey sheds some light on his plans, the size of the business, sources of its growth, its differentiation, and use of management consulting capability.
This article concludes with Insider comment on the interview.
For many government services firms, acquisitions figure prominently in the strategic growth plan. This is especially true of mid-size firms feeling the squeeze—too small to be a prime contractor, yet bridling at a subcontractor role. For others, access to cleared workers and defense/intelligence customers is a key driver of acquisitions.
Regardless of the strategic merits, studies consistently find that 60-70 percent of deals actually diminish shareholder value. The Insider asked Don Shay and Sandra Burnis, experts in merger integration, to identify why the post-merger part of most deals is trying and often fails. Part II, in October, will spell out how to stay out of trouble.
Recent public attention has focused on the GSA Schedules program, including questions about scopes of work and the remedial GSA/DoD "Get It Right" program. So it's not surprising that, in the glare of the Schedules spotlight, many have missed the significant and extensive regulatory changes affecting the GSA Schedules that the Federal Acquisition Regulation (FAR) Council issued on June 21, 2004. This final rule, which became effective on July 19, adds new flexibility for the customer agencies and clarifies other procedures that have long been questioned.
Agencies, current and prospective Schedule holders need to understand these changes and their implications for doing business the "right way" and to minimize the risk to future business opportunities. Ignoring these changes could be costly. Policy expert Alan Chvotkin of the Professional Services Council provides advice on what to monitor and do to stay in compliance with the new changes, one of the top distribution channels for professional service providers to the federal government.