Leidos CEO Roger Krone: Slow Pace of Govt Appointments Delays Procurement Process

Roger Krone

Roger Krone, chairman and CEO of Leidos, has said the slow pace of leadership appointments at the Defense Department and other federal agencies has pushed back acquisition decisions and deadlines, Inside Defense reported Thursday.

Krone told analysts during the fiscal 2017 first-quarter earnings call that the company has “seen more slowness than we expected in the acquisition organizations of our customers, due in part to the slow pace of executive leader appointments and budget uncertainty.”

He said the Trump administration still has to fill at least 500 “confirmable” government positions, according to a report by James Bach for the Washington Business Journal.

Krone, an inductee into Executive Mosaic’s Wash100 for 2017, cited the lack of a NASA administrator and the presence of only one confirmed official at DoD.

He also mentioned the House’s approval of the fiscal 2017 spending package that proposes additional funds for defense programs.

“This backdrop bodes well for the market areas we are most exposed to and also bodes well in our view for what we can expect” for the next fiscal year, Krone added.

Revenue share of Leidos’ civilian agency work rose from 10 percent to 27 percent in the first quarter after the company merged with Lockheed Martin’s information systems and global solutions business in 2016, the report added.

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