By now you’ve had your fill of top 10 lists for 2010. But this is one list you don’t want to miss. What will 2010 hold for Government Contracting? What shape will collaboration take between industry and government in addressing the tough issues of the day? ExecutiveBiz brought that question to top industry leaders. Here’s what they’re saying:

1.) Industry More Competitor with Government

Norm Augustine’s 2010 Prediction:

“The issues facing the nation and the world increasingly transcend the ability of either government or industry to solve alone. For example, the government clearly has overall responsibility for homeland security, yet 90 percent of the assets to be protected currently reside in the private sector.

“At the same time, as the federal debt grows along with the non-discretionary part of the federal budget, heightening fiscal pressures will be placed on the procurement process. As a consequence, industry is unfortunately likely to find itself more and more a competitor with government than a partner … with proven bad ideas rising from the ashes yet another time (e.g., fixed price research and development contracting).  The problem will be exacerbated by the inability/unwillingness of qualified individuals with industry experience to serve terms in government.

“As one who has spent a significant part of his professional life in each government and industry, I truly hope the above is wrong but that would not be how I would bet.”

(Norm Augustine is retired Chairman and CEO, Lockheed Martin Corp.)

2.) More Contracts related to the ‘Battlefield of the Future’

Paul Cofoni’s 2010 Prediction:

“CACI expects intelligence to be a mainstay of growth in 2010 and beyond. In addition, CACI is bidding for millions of dollars in cyber security contracts, as awareness of this kind of threat grows. C4ISR technology is also one of CACI’s strengths, and the company expects to see more contracts related to the ‘battlefield of the future,’ helping to guide and protect the warfighter and target the enemy on the battlefield.

“Going forward, our domestic operations are solidly positioned in the well-funded and high-priority areas of defense, intelligence, homeland security, and IT modernization. We remain agile in responding to market changes and aligned with the administration’s priorities in cyber security, smart power, and IT modernization.

“Many experts predict that non-defense government spending will grow faster than defense spending in coming years, and government contractors can meet those demands by offering new services in sectors like healthcare logistics, energy IT and IT modernization. Still, national security remains at the top of our government’s greatest challenges, and we will continue to concentrate our resources to help our clients preserve the freedom and liberty of our nation’s citizens while expanding to meet new areas of demand.

“National security remains at the top of our government’s greatest challenges, and we will continue to concentrate our resources to help our government and our clients preserve the freedom and liberty of our nation’s citizens. Even with multiple domestic issues facing our country, we cannot lose sight of ever-increasing threats from determined, persistent, and well-resourced terrorist organizations. There is no margin for error in our national security posture.

“Our recent record results for both the quarter and the year validate our strategy to focus our solutions in the well-funded and critical areas of defense, intelligence, homeland security, and IT modernization. strong performance in CACI’s U.S. operations.

“We anticipate continued demand for our proven solutions to keep our nation safe and implement efficient and cost-effective solutions to modernize federal agencies. We are positioned to expand our capabilities in defense healthcare logistics and IT modernization and address new opportunities in cyber security, smart power, and energy. We also expect to see continued growth in our highly profitable U.K. operations, including greater penetration into the public sector.”

(Paul Cofoni is President and CEO, CACI)

3.) Government-Industry Collaboration will be robust

Renny DiPentima’s 2010 Prediction:

“Government contracting will continue to be robust over the next decade, just as it has been over the previous five decades. A responsible and collaborative business relationship between government and industry benefits both. Government depends upon contractors in large part to get its jobs done and contractors depend upon government to keep their companies financially sound. This government-contractor relationship, more than ever, will depend upon mutual respect and trust and performance from both parties that delivers results.

“Effective, responsive collaboration [between government and industry] will require a clear understanding and expression of requirements on the part of government, effective and efficient solutions from industry that deliver results, and a working relationship based on trust and respect on the part of both. The collaboration must be characterized as a constant flow of communications between both government and industry at all phases of their work, from pre-solicitation exchange of ideas, to appropriate dialogue to truly understand the government’s requirements, to a clear articulation and demonstration of the solutions proposed by industry. Collaboration based on open communications, trust, and respect is essential to the success of solving any of the tough issues ahead.”

(Renny DiPentima is former president and CEO of SRA)

4.) Business Models Must Accommodate More For Less

Jacques Gansler’s 2010 Prediction:

“I think the key point of the next decade is going to be the budget crunch combined with, from the defense side, the huge spectrum of potential concerns on the security basis: pirates, terrorism, regional conflict, insurgence, possible future peer competitors, nuclear deterrence and that whole huge spectrum. In that environment we have to figure out ways to get more for less … and the models for getting more for less changes the business environment.”

(Jacques Gansler, former Under Secretary of Defense for Acquisition, Technology, and Logistics, is now a professor at the University of Maryland’s School of Public Affairs.)

5.) Government Will Expect More Secure Offerings from Industry

Melissa Hathaway’s 2010 Prediction:

“The need for partnership between industry and government will increase over the next decade especially as our enterprises become further interconnected due to our dependence on information technology. The seams between private networks and government networks will continue to blur and it will be harder to know where one ends and the other begins.

“We must work to understand the full extent of the vulnerabilities and interdependencies of our enterprises because our opponents are exploiting these seams and stealing our sensitive and proprietary information at an unprecedented volume. This requires industry and government to share details on vulnerabilities of and security threats to our infrastructures and information assets. Industry will need to provide a stronger service offering of security testing of networks to lower our collective exposure. Additionally, I expect that the government will demand from industry more secure software products and services. I am hopeful that the next decade will bring greater transparency and willingness to share information among and between enterprises so that, in partnership, we can raise our collective security posture.”

(Melissa Hathaway is President of Hathaway Global Strategies, LLC and Senior Advisor at Harvard Kennedy School’s Belfer Center)

6.) Another Year of Confidence Re-Building

Bill Hoover’s 2010 Prediction:

“2010 will be another year of caution and confidence rebuilding. Concerns about the deficit will influence both the government’s and citizens’ priorities and actions. National security and citizen safety remain the top priorities of government. Government services sector will continue to be the nation’s ‘anchor to windward.’”

(Bill Hoover is President and CEO of AMERICAN SYSTEMS)

7.) Year of Positive Trends and Challenges Ahead

Linda Mills’ 2010 Prediction:

“Government contracting is seeing some very positive trends and some challenges that the industry and government together will have to work to overcome in the next decade. Some of the positives we are seeing in legislative and policy trends include increased use of IDIQ contracts, Secretary Gates push towards 75 percent solutions, and spiral developments. At the same time, however, industry continues to face a move toward fixed price development contracts, long procurement cycles, continued protests, and insourcing.

“Northrop Grumman acted quickly and responsibly to comply with another positive trend, the tightening of the OCI policy. The key to go-forward success is consistent and clear communication with the contracting community and consistent application of these policies across government. Going into the new decade, we expect the government will uniformly enforce these new OCI regulations.

“Collaboration between government and industry will remain important in the next decade. Most tough issues require government legislative and policy changes before real progress can occur.”

(Linda Mills is Corporate Vice President and President, Northrop Grumman Information Systems)

8.) Cyber Czar, Bid Protests Key Issues to Watch

Stan Sloane’s 2010 Prediction:

“The new cyber czar will start to grapple with the challenges he’s taking on, and we’ll see some progress on the policy front, as well as collaboration with industry on intellectual property protection.

“There will be growing dissatisfaction with the bid protest mess, and we will start to see reform in the way of penalties for companies which abuse the process.
(May be a wish versus a prediction!)

(STAN SLOANE is President and CEO of SRA)

9.) Year of Modest Growth, Productivity Gains for GovCon Sector

Ralph Shrader’s 2010 Prediction:

“I’m cautiously optimistic that 2010 will be a year of modest growth and productivity gains for the economy as a whole, and for the government contracting sector. The most important challenges of the 21st century are the business of government — from national defense and economic security — to health, citizen services, and international development. While government officials clearly need to set policy, be in command, and carry out inherently governmental functions, the biggest challenges can’t be solved by government alone, so collaboration with industry is critical. Industry teammates bring innovation, specialized expertise, and value that helps win the peace and prosperity that citizens want and expect from government.

“Collaboration begins with respect. Government contractors must recognize that the mission of our nation and acceptance of taxpayer dollars is a sacred trust. The government, in turn, needs to respect the real value and patriotic commitment of the contractor community. Industry and government are on the same team, facing the same challenges, working toward the same goals. If all sides can embrace this point of view, the year and decade ahead will be among the most successful in history.”

(Ralph Shrader is Chairman, CEO, and President, Booz Allen Hamilton)

10.) Time for Fundamental Review is Now

David Walker’s 2010 Prediction:

“The federal government needs to engage in a fundamental review and re-engineering of what it does, how it does business and who does its business in the coming decade. This includes the need to address the 15 or so long standing and systemic acquisition and contracting challenges identified by the GAO. Successfully addressing these challenges will benefit both the country and taxpayers.”

(David Walker is president and CEO of the Peter G. Peterson Foundation)

It’s been said that prediction is a very difficult thing — especially if it’s about the future. Fortunately, when we set out to name 2009’s People to Watch, we placed are bets correctly, giving readers a sneak peak of Beltway game changers who’d more than likely be leaving their mark over the coming year. We’re happy to report we were right — check out our update, below, on those who’ve made the most impact over the course of this year:

Brad Antle: On the look-out for next big IT services and engineering company

Brad Antle began 2009 with a new role: President of Bradford SCG, a consulting group focused on the information technology and services industry. Antle came to that role having wrapped up a nearly 10-year stint as president and CEO of SI International, Inc. The year also saw Antle team up with an old partner: the private equity firm, Frontenac. Back in 1998, SI International was founded with backing from Frontenac. In 2009, Antle again teamed with the firm to form a new venture: Salient Solutions. Backed by $100 million, Salient Solutions was formed to acquire and build a $500 million federal IT services and engineering company over the next five years. “We’re currently on the hunt for a company that can serve as the platform and foundation for Salient Solutions LLC,” says Antle. “This first acquisition will form the core of a company committed to aggressive organic growth that we will stimulated with private equity investment.”

Bill Ballhaus: Raising DynCorp’s defense profile

Bill Ballhaus ushered in 2009 as one of Forbes’ list of most powerful CEOs “40 and under.” Ballhaus went on to hold true to that prediction, and ours. Despite a challenging environment — shifting defense priorities, topping the list — Ballhaus steered DynCorp toward a number of key strategic wins this year. In June, DynCorp landed a $915 million aviation contract with the U.S. government — a sum greater than its entire revenue for the previous quarter. Then, in July, the U.S. Army contracted a DynCorp-led team to support ongoing operations in southern Afghanistan with logistics services. By August, DynCorp had posted higher profits on increased sales for its first quarter of fiscal 2010, which ended July 3. A month later, Ballhaus led DynCorp in its acquisition of Phoenix Consulting Group Inc., a company with 400 employees that provides services to the intelligence community. The acquisition speaks to central goal for Ballhaus: to accelerate growth, expand service offerings, and penetrate new segments.

Bob Coleman: New role as head of Six3 Systems

This past year Bob Coleman traded in the title of COO for CEO. But not of ManTech. Coleman partnered with GTCR, a U.S.-based private equity firm with a track record of building successful companies in government services, to form Six3 Systems. Backed by $2.75 billion of committed capital from GTCR, Six3 Systems focuses on building a government services platform specializing in national security and defense intelligence. That collaboration continued to keep Coleman busy throughout 2009. In June, Coleman and GTCR announced plans to acquire Harding Security Associates Inc. That acquisition allows Six3 to further expand its national security services offerings. With that “critical first step” wrapped up, we’ll likely see more from Coleman in 2010, as he continues his long-term objective to build what he calls a “highly specialized national security services provider focused on solving our nation’s most pressing security challenges domestically and abroad.”

Joe Doherty: Cementing ACS’ role in the federal market

Joe Doherty spent 2009 making good on his promise to cement ACS’ place in the federal marketplace. In fact, the year oversaw record bookings across federal, state, local, and government healthcare markets. Strategic wins included a $37.5 million contract to help rebuild storm-damaged rental property in Louisiana; a contracts from the Texas Comptroller of Public Accounts to increase the amount of unclaimed property the state returns to its rightful owners; a five-year contract extension to provide IT services to the city of Irvine, Calif.; and a six-year contract with the Louisiana Department of Social Services to provide electronic benefit transfer services. What’s next? Doherty had this to say recently, to ExecutiveBiz: “We’ll see the positive impact of our increased sales resources resulting in a larger pipeline, significant new deals in emerging markets and overseas; and our organization [having] a deeper and broader skill set through strategic acquisitions.”

Julius Genachowski: Championing “Open Internet” rules

The year began with big news for Julius Genachowski: He was selected by then President-elect Barack Obama as the next chairman of the Federal Communications Commission. “Genachowski is something of a double threat,” wrote InformationWeek at the time, “having filled important government staff positions in Washington and working at a brace of private business ventures.” By June, the US Senate confirmed Genachowski for FCC Chairman. Within 30 days, Genachowski was tackling universal broadband — “our generation’s major infrastructure challenge,” as he put it. By August, Genachowski was overseeing a public inquiry designed to further regulation of cell phone and mobile internet providers. “It is essential that the commission develop policies that encourage a new generation of innovators, working with new tools, on new platforms, and having an extraordinary impact on our economy and society,” said Genachowski. He also announced plans to impose open internet rules, which would make airwaves available to next generation wireless networks.

Bill Hoover: “Executive of the Year” among 2009 distinctions

Recently, Bill Hoover received a key honor: being named “Executive of the Year” by the Fairfax County Chamber of Commerce’s Greater Washington GovCon Council, the Professional Services Council, and Washington Technology magazine. The award, which recognizes an executive at the helm of a company between $75 to $300 million, caps a year of accomplishments for Hoover. The year began with AMERICAN SYSTEMS’ selection by the Department of Defense as one of 12 companies to support its biometric identification systems, a contract worth up to $497 million. Hoover also spent the year strengthening the company’s delivery of comprehensive readiness services — training, simulation and performance measurement assistance — to military and civilian agencies that support national security. Another key win this year was being awarded an IDIQ contract valued at nearly $15 million to provide technical and security engineering services for the Space and Naval Warfare (SPAWAR) Systems Center Pacific.

Linda Mills: Overseeing a stronger cyber role

The year saw Linda Mills position Northrop Grumman’s billion IT sector for stronger growth and efficiency. Those efforts began by combining the company’s information technology and mission systems units into a new Information Systems unit. Mills also spent the year lending her voice to an issue beyond Northrop Grumman’s walls: the education of America’s youth. “The growing shortage of science-based talent in our workplaces and universities is a serious problem for this nation,” said Mills, in accepting a Woman of the Year Award by the National Capital Area Council of the Boy Scouts of America in June. Mills also tackled another pressing issue: cybersecurity. In July, she helped kick-off a ribbon-cutting ceremony for Northrop’s new Cyber Security Operations Center in Maryland. Billed as a “cyber CSI,” CSOC focuses on protecting Northrop Grumman and translating those “lessons learned” to customers’ networks and data worldwide, said Mills in a National Press Club briefing that same month.

Mark Warner: Keeping US entrepreneurial fire alive

Mark Warner kicked off 2009 with generational and political change for Virginia, when he filled John Warner’s seat. Warner had already distinguished himself as a political force. In 2006, he wrapped up his term as governor with an 80 percent approval rating. This go-round, as senator, Warner’s impact has remained consistently strong, particularly among moderates. One of Warner’s biggest points in his favor has been optimism he’s injected into an otherwise dreary economic climate. In June, this former venture capitalist and current member of the Senate’s Commerce Committee, told attendees of The Greater Washington Initiative: While the federal government’s level of activity in the economy may be unprecedented, it’s a temporary measure to jumpstart new industries such as high-speed rail, green technology, and alternative energy. True to his entrepreneurial roots, Warner has also proposed more aggressively boosting small business lending by re-allocating some TARP funds and getting banks to open up lines of credit.

Who do you think has left their mark on government in 2009? Share your comments here.

Northrop Grumman recently announced it would streamline its sector units from seven to five in order to improve the company’s program performance and enhance its cost competitiveness. The five new sectors will be aerospace systems, electronic systems, information systems, shipbuilding and technical services — and Linda Mills will be a key part of that change. Mills, who currently oversees the company’s $4.5 billion information technology unit in McLean, Va., will lead the Information Technology and Mission Systems sectors combined to form the new Information Systems sector — a $10 billion provider of advanced technologies to defense, intelligence, civil agency and commercial customers.

“Linda Mills’ proven track record, broad customer experience in the areas served by the sector and deep understanding of the systems integration and IT capabilities of the business make her ideally suited to serve as president of the Information Systems sector,” says Ronald D. Sugar, Northrop Grumman chairman and chief executive officer.

Other industry veterans agree.

“Linda Mills is an exceptional leader both within Northrop Grumman as well as in our community,” says Donna Morea, president of CGI. “Her unparalleled commitment to operational excellence, her business savvy, and her integrity help make NGIT a trusted partner to government and business alike.  We also benefit from Linda’s insight and drive here in our greater Northern Virginia community, as a contributor to the Northern Virginia Technology Council as well as other local not-for-profit organizations.”

Berney McVey has been appointed vice president and chief information officer for Information Systems at Northrop Grumman. Previously he served as vice president and CFO for the company’s former Information Technology sector. That IT sector recently merged with the Mission Systems sector and is now Information Systems, headed by Linda Mills.

In 2008 ExecutiveBiz had listed McVey as one of ten finance executives that readers should definitely know about and his move from CFO to CIO is evidence of his keen business intellect. In his new position McVey will have responsibility for the company’s IT Solutions shared service organization. He served as the IT sector’s controller and has extensive experience in program financial management, business operations, and international, commercial and government contracting. Since joining Northrop Grumman in 1978, McVey has steadily risen up through the business management ranks of the company and is highly regarded by colleagues.

What a year. From market meltdowns to a change in administration, 2008 will go down as a year of unprecedented change. Local businesses and leaders were no strangers to change, either, and ExecutiveBiz was there every step of the way, chronicling the key players in commercial and government markets. In case you missed any of our headline grabbers, don’t panic —  we’ve compiled a list of 2008’s most read and interesting articles. So, pull up a chair, relax, and enjoy a look back at the names that mattered most — and whom we’re sure to hear more from over the coming year.

New at the Top
ExecutiveBiz rang in January 2008 with a look at “new at the top” government contracting executives. Each arrived on the scene at a time when their employers were in the midst of aggressive growth and expansion efforts, and each stood poised and ready to take those efforts to new levels.
Read more

Global Strategies Group (North America) Inc.’s John Hillen
How could you not like a corporate president who insists that Anita’s is his favorite local place to eat and who likes to read Harry Potter to his kids? John Hillen, CEO of Global Strategies Group (North America) Inc., reveals he’s just like the rest of us — except he also happens to oversee some of the most complex and highly-classified international security issues. Read more

SRA’s Stan Sloane
By the time we sat down with SRA’s president and CEO, Stan Sloane, last January, he was busy crafting an ambitious plan to reach $5 billion in revenue by 2012. In an exclusive interview, Sloane discussed his growth strategy, the hot trends he was tracking, and a little side hobby of his: flying planes. Read more

EDS’s Dennis Stolkey
Over the past 22 years, Dennis Stolkey has made an impressive ascent through the ranks of EDS (now an HP company), and manages its U.S. government sector — a practice worth $3 billion. Last February, Stolkey sat down with ExecutiveBiz and shared a few secrets to his longevity. In a personal turn, he also offered an inspiring glimpse of how he refused to let a personal battle with dyslexia impede his rise up the leadership ladder. Read more

Top 10 COOs
Comedian Rodney Dangerfield used to say, “I don’t get no respect.” One wonders if, in a previous life, Dangerfield was a chief operating officer. While the president and CEO are accountable for establishing an organization’s goals, over time it is the COO who is charged with delivering results on a daily basis. A company with a strong No. 2 holds a tremendous edge over its competitors. Read more

CSC’s Jim Sheaffer
As president of CSC’s North American Public Sector, Sheaffer is responsible for all of the business CSC does with government clients in North America — that includes United States federal and state governments, as well as Canada. In the midst of those responsibilities, Jim found the time to sit down with us back in March and discuss the company’s overall plans for growth. Read more

Northrop Grumman’s Linda Mills
Back in July, Linda Mills spoke with ExecutiveBiz about her role as corporate vice president and president of Northrop Grumman IT. Mills oversees the company’s $4.5 billion information technology unit in McLean, Va., and is successfully leading the IT services component of the largest, fastest-growing division of the company. Mills discussed the key strengths that have helped her navigate her past and current roles, and how she’s making sure her unit stays relevant in a competitive marketplace. Read more

The return of Download column
Remember the Washington Post’s Download column? Up until its hiatus in 2006, Download offered readers the inside scoop on the tech community’s major players and trends. This past September the column’s readers had reason to celebrate again; that’s when the Post’s Kim Hart kicked off the columns long-awaited return. Hart spoke with ExecutiveBiz about the column’s reentry on the scene (Update: The column will soon be weekly). Read more

Ted Davies on his new role at Unisys
Less than two months after Ted Davies assumed the ranks as president of Unisys Federal Systems, he spoke with ExecutiveBiz about his vision for the company. “I think we are going to get more excitement in the hallways here — and I think the industry is going to see that as well,” said Davies. Davies also weighed in on what the change in administration might mean for the government contracting community. Read more

Top 10 Business Development Executives
They come from a diverse range of backgrounds. Some came to the private sector from the military. Others made the transition from the government. Whatever their individual backgrounds they all share a common theme: Each has developed strategies that have driven their companies’ success. Read more

Ten Finance Executives to Watch
Last June, with the presidential election still looming, ExecutiveBiz went knocking on the doors of leading CFOs and finance executives. We wanted to hear from them, first-hand, how they were weathering not only a change in administration but an increasingly uncertain financial climate. What we found were executives with the kind of leadership skills and eye for strategy to move their companies forward. Read more

So, there you have it — a wrap-up of our top stories for the year. Who else do you think had a major impact on the DC’s area business and leadership in 2008? Who would you add to the list? Let us know!

Just in the time for the New Year, ExecutiveBiz, the area’s largest e-Magazine, has compiled a list of the “Top 20 People to Watch in 2009.”  At a time of economic and political change, these tried and true veterans of the government’s public and private sectors stand poised to take their companies and stakeholders to greater success in 2009.  Through demonstrated drive and business and political acumen, all 20 forged ahead and drove value to their organizations and the industry as a whole. As we look ahead, these respected names are sure to be ones that will make headlines in 2009.

Paul Leslie
President & COO, Apptis

Ever since Paul Leslie came on board Apptis as President and COO in 2007, he’s helped this leading IT solutions and services provider reinvigorate its image within the federal marketplace. Under Leslie’s leadership Apptis has streamlined operations by focusing on “best of breed” IT solutions and revamping other areas.  Apptis is owned by New Mountain Capital, a private equity firm.

Paul Leslie is no stranger to driving value to the company. Prior to joining Apptis, Leslie was President and CEO of Apogen Technologies, which was later acquired by QinetiQ, and this avid Red Sox fan was a key player in its organic growth and ultimate sale.  What’s in store for Apptis with Leslie at the helm?

Read the rest of this entry »

3001: The Final Odyssey is a science fiction novel published in 1997 (the final book in the Space Odyssey series) that centers around the evolution of intelligence, aliens, earth domination and, well, you get the picture. And while not bent on global domination, 3001 Inc., a leading provider of geospatial data production and analysis, and Northrop Grumman have embarked on their own odyssey with today’s announced definitive merger agreement.

Is it just me or is “odyssey” one of those words that just doesn’t look like its spelled right? Something about the letter sequence looks out of place. And what does that have to do with today’s announcement? Nothing really, but I like to insert a random tangent once and a while just to see if everyone is paying attention.

While not always known as 3001, the company has been around for more than 40 years, and the company assumed its 3001 name in 1998 to convey its position as “the leading-edge geospatial provider of choice today and for the next millennium.”

The company is owned by its management and CM Equity Partners, and counts federal customers that include National Geospatial Intelligence Agency, U.S. Army Corps of Engineers, U.S. Navy Facilities Command, and the U.S. Department of Agriculture. 3001 also has numerous contracts supporting state and local governments.

For Northrop Grumman and Linda Mills, corporate vice president and president of Northrop Grumman IT, the transaction, “will significantly complement our current core geospatial business,” adding in the press release that, “Its strong geospatial data collection, processing and production capabilities help us further address the critical needs and priorities across civilian, defense, intelligence, homeland security, energy and environmental business areas, from both domestic and international perspectives.”

Financial terms of the agreement were not disclosed; the transaction is expected to close in the fourth quarter of 2008 and 3001 will become part of Northrop Grumman’s Information Technology (IT) sector. 3001 CEO Bart Bailey will continue to lead 3001 as part of Northrop Grumman.