These are days of change for the defense contracting community. Just yesterday, Defense Secretary Robert Gates announced a 2010 Pentagon budget that showcases far-reaching changes to Defense Department priorities. In the midst of Secretary Gates“™ announcement, ExecutiveBiz recently sat down with Dan Mongeon, president and CEO of Agility Defense and Government Services. Mongeon weighs in on trends to watch in defense, and explains how Agility “” a global $7 billion company, with roughly $2.6 billion in federal business “” is preparing to bring new solutions in military and civilian logistics to the table.
A key business challenge for defense contractors has been figuring out where the Defense Department is headed under the Obama administration. Any ideas?
Dan Mongeon: I think when all is said and done, the Obama administration will conclude there is a clear role for the defense contractor. Contractors who do the job right provide value for the troops and save the taxpayers money. So, where it makes sense to leverage best business practices and commercial capabilities, I think the Department of Defense will continue to do so.
Another thing defense contractors are mindful of is the draw down of troops in Iraq. How do you see Agility“™s efforts unfolding in that area?
Dan Mongeon: There are some opportunities with those draw downs: the retrograde of equipment, the tons and tons of excess in scrap equipment, and then the build-up in Afghanistan. With those areas, another focus will be on resetting the forces and figuring out how much of that will be done in the United States and how much overseas. We need to make sure we understand what the Defense Department is going to look like in the next three years.