Since the Sept. 11 terrorist attacks and the country's subsequent emphasis on fighting terrorism and enhancing homeland security, the once sleepy government IT sector has become the darling of Wall Street. In the last two years alone, seven government contracting companies completed initial public offerings raising more than $1.051 billion in equity capital. Significantly, most of these IPO's traded above their initial offering price on the first day of trading, and most are still trading above the initial offering price.
State and local governments will continue their full-scale retreat from offshore outsourcing this year to avoid the political backlash that often accompanies the loss of government jobs to overseas sites, industry and government officials said.
It's no secret that mergers and acquisitions are on the rise. In the government IT market, the number of M&As rose from 47 in 2001 to 64 in 2002 to 73 in 2003. And the aggregate value of those deals jumped from $3.8 billion in 2002 to $5.9 billion last year. Along with the rise in the number of deals, a new generation of M&A players has emerged, such as <b>Todd Stottlemyer</b> of ITS Services, left, <b>Michael Solley</b> of NCI Information Systems and <b>Greg Bedner</b> of Perot Systems. Washington Technology looks at some of these new players and the strategies that are driving their deals.
Government Micro Resources Inc. has proven to be a reliable small business, bringing in about $100 million from its government work each year. Although the company graduated from the SBA's 8(a) development program five years ago, it still qualified for small-business set-aside contracts. That will change Jan. 28, when a new procurement rule goes into effect that says small IT VARs must have 150 or fewer employees.
ITS Services Inc. is planning to acquire Science & Engineering Associates Inc. in a deal that will create a company with about $200 million in annual revenue.
Wireless Facilities Inc. has bought High Technology Solutions Inc., a company offering communications systems engineering and operational outsourcing services to federal agencies.
McNeil Technologies Inc. of Springfield, Va., has acquired Research and Evaluation Associates Inc., a Chapel Hill, N.C.-based company that offers services to state and federal agencies.
<b>New Hampshire Administrative Services Department</b><br><b>Project: </b>Statewide Enterprise Resource Planning System<br><b>Term:</b> TBD<br><b>Estimated value:</b> TBD<br><b>RFP release:</b> January <br>The department has a requirement for a statewide ERP system that will include budget and finance, human resources and electronic purchasing modules.
For three top-tier government contractors ? the Boeing Co., Computer Sciences Corp. and Electronic Data Systems Corp. ? the new year provides a chance for correction following an unpleasant end to 2003.
Making predictions is easy. Getting them right is ... well, not so easy. Just ask the guys who predicted that the stock market would reach 36,000.But that doesn't mean you can't get a useful sense of directions and trends. For our annual look at the year ahead, the Washington Technology staff talked to experts in government and industry and found widespread agreement on several important issues.
Everyone's new year starts with a long list of resolutions and goals. For these government and industry executives, that list also includes challenges and problems that will have repercussions beyond their own companies or organizations. The government IT community will be marking closely their successes and failures.
In a $65.8 million cash deal, Reston, Va.-based SI International Inc. will buy government IT, engineering and logistics provider Matcom International Corp.
