Today’s compliance standards are as challenging as ever. That’s as true for small businesses as large ones. As a company moves from a small to mid-sized, it’s scrutinized under a finer glass by DCAA, OFCCP,  DoL and others. “Issues that weren’t as important when you were a $25 million company are critical when you’re $75 million and winning more significant contracts,” says Dan Gahr, senior vice president and chief financial officer of Whitney Bradley & Brown, Inc., a mid-sized company that focuses on weapon systems acquisition and requirements generation. Since coming on board in 1998, Gahr has helped WBB grow from 30 to 360 employees, with a compound annual growth rate of 30 percent. Here, Gahr offers three ways small companies can stay ahead on the compliance front as they continue their ascent as a midsized company.

HIGHLIGHTS

• Since joining WBB in 1998, Dan Gahr has steered the company toward a compound annual growth rate of 30 percent.

• Small business growth requires you diversify your advisor pool; tap an accounting firm with government contracting expertise; and stay attuned to industry challenges, says Gahr.

• Despite a challenging economy, WBB’s solid infrastructure has placed the company on a trajectory for continued organic growth into 2010, says Gahr.

1.) Diversify advisor pool. No one law firm can answer all your questions, says Gahr. “You may have something in your company that’s really unique and you need to find experts on that particular topic,” he says. “Some companies tend to put off those costs,” adds Gahr, “but we embrace them as the cost of doing business.” WBB taps employment law firms to navigate OFCCP regulations, corporate lawyers for corporate structure or bylaw issues, yet others for ESOP-related issues (WBB is an employee-owned company). Getting involved in professional organizations offer other good ways to keep abreast of industry issues and find corresponding experts in a given field, adds Gahr.

2.) Tap a nationally-recognized accounting firm. “It’s really important to align yourself with a good accounting firm early in your growth,” says Gahr. Typically, small companies see such an investment as an expense they can avoid, though. That’s a mistake, says Gahr. “The last thing you want is to be in the unenviable position of having to correct things once you’ve grown … the bigger you are, the harder it is to correct,” he says. As WBB has grown, it’s tapped a nationally recognized audit firm, with expertise in government contracting, to ensure its audits remain up to speed. “We didn’t skimp on that [investment] … we wanted to get all of that accounting piece right from the beginning,” says Gahr.

3.)  Don’t be an ostrich. “Don’t stick your head in the sand,” says Gahr. “If you hear about something, find out about it … be proactive in being compliant in every area you can think of,” he says. Gahr’s certainly mindful of the industry challenges ahead, from insourcing to tightening federal budgets. Still, because of the proactive extra steps that Gahr has taken to stay compliant, WBB is well-positioned to continue its organic growth into 2010. “I still think that for us, and for companies of our size, given the size of the federal budget and the piece we’re actually taking, what’s going on won’t impact us in general,” he says, adding: “We think there are any number of good opportunities out there that we have yet to tap where we can take our products and services and continue to grow and diversify.”

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It’s been less than a year since Six3 Systems, a company focused on acquiring government services providers with a focus on national security, got off the ground. But the company already has its second acquisition in the works.

In partnership with the private equity firm GTCR, Six3 Systems has just announced a definitive agreement to acquire BIT Systems, Inc., an intelligence, surveillance, and reconnaissance (ISR) company. Backed by 300 employees, BITS provides advanced solutions to intelligence community partners.

For Bob Coleman, Six3 Systems’s CEO whom we called one of 20 People to Watch this year, the acquisition meets a key goal: to build a leading national security services provider with highly specialized capabilities.

“We believe that BIT Systems and their innovative solutions represent the future of ISR systems development, systems engineering, and analysis,” says Coleman. “Combining BITS with our existing identity intelligence and counterintelligence competencies will create a highly strategic asset with strong capabilities in advanced data processing and analysis,” he adds.

With the BITS acquisition, Six3 Systems is expected to generate approximately $200 million of annual revenue.

With the stimulus package fresh on everyone’s mind, ExecutiveBiz recently sat down with Al Gordon, CEO of National Strategies, for tips on how to reach state and local clients. For 10 years, Gordon worked in the governor’s office of New York, where he routinely met with companies looking to do business with the state. So, what works — and what doesn’t — when pitching to clients on the state and local level? We brought that question to Gordon and he offered some key takeaways:

• Prioritize your markets.
• Do due diligence.
• First impressions are everything.

Check out our talk with Gordon — he breaks down each tip and offers some surprising tidbits about the stimulus package. And to learn more, be sure to check out Gordon’s ExecuitveBiz talk on June 10. Details here.

It’s been less than a year since John Edwards was appointed president of Agilex Technologies‘ intelligence, security and defense sectors. In that time, Edwards has helped steer the Herndon, Va.-based IT solutions provider toward greater focus in those areas. Here Edwards discusses which IT services are resonating the most with his federal customers — information management is a prime focus — and how he effectively gauges his customers’ “pain points.”

EB: Why did you choose to come to Agilex?

John Edwards: A couple of reasons. I was impressed with the leadership of the company and the expertise of its people. It also boiled down to the opportunity and the challenge of a new start-up company. I had been at my other company [Blackbird Technologies] for five years, and was ready take on a new challenge.

EB: What areas of service are resonating the most with your customers?

John Edwards: We focus on helping customers get more value from information while reducing the cost to manage it. The challenge of information management is growing for everyone; we’re extremely well-positioned. For example, our CTO Tim Hoechst was previously the chief technology executive for Oracle in the public sector and no one is better at managing Oracle systems. Another key member of the team is Bob Otto, the former CIO and CTO at the U.S. Postal Service. Bob is fantastic at negotiating licenses and streamlining IT operations.

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The Faces of a “New” Washington-Power Chart

Change came to the nation’s capital this week, as President Obama was sworn in as our 44th President. Navigating through the myriad of names and faces of the new administration can be a daunting task. That’s why The Financial Times (FT) created an interactive “Power Chart” detailing a veritable who’s who in the new administration. The chart provides a dynamic perspective on the key players within this new presidency. Simply move your mouse over the 50+ links to read each profile. A grouping feature is also included if you are interested in seeing President Obama’s Chicago connections, past classmates, etc. We are hoping FT plans to keep the chart up-to-date since the theme of the incoming administration is “Change”. Try it here.

Can You Hear Me Now?

For weeks now, DC area residents and inaugural visitors have been prepped for the crowds, lack of facilities, and traffic jams expected during President Obama’s inauguration. Are cell phones next? In response to the overwhelming attendance expected at inaugural activities, cellular companies are taking the unusual step of asking customers to limit their usage. The crowd of 2 million is expected to be comprised of a generation entirely comfortable with technology, but perhaps unused to its heretofore unforeseen limits. As Joe Farren, spokesman for the Cellular Telecommunications and Internet Association, an industry trade group, states, “We can only bend the laws of physics so much.” Click here to read more

More Predictions! Ten GovCon Predictions for ‘09

Wouldn’t it be great if you could gather the area’s top executives in a room and get their predictions for 2009? Look no further. Last week, we shared predictions from some of the area’s top executives on how this coming year will play out for the federal marketplace. This week we’re sharing more. Check out these executives’ predictions on top government contracting trends to watch in 2009 — and let us know if you agree.

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