WT Business Beat


More signs of Deltek expansion

When I interviewed Deltek’s CEO Mike Corkery a few months back, he talked about his strategy on expanding what it can offer customers in the company's various markets.

One of the markets he mentioned was marketing and communications because, often, the work companies in that field do is project based, so they need, according to Corkery’s reasoning, enterprise resource software that is built around the needs of project management.

Corkery and Deltek pushed that strategy forward this week with the acquisition of Sohnar, an enterprise software provider best known for its Traffic LIVE solution. Terms of the acquisition were not disclosed.

Sohnar is a London-based company, but it has offices in New York and Sydney, Australia.

Traffic LIVE is a traffic management solution used by marketing agencies to manage projects and the flow of creative jobs within those firms, Deltek said in its release.

It’s also a tool for managing people – generally the most expensive assets these companies have – in a cost effective and profitable manner.

Deltek describes Traffic LIVE as a professional services automation solution. It’s also a cloud-based offering. I found this interesting because it’s another sign of how important technology has become to delivering service what you might not typically thing of as needing technology.

Traffic LIVE will be integrated into Deltek’s Maconomy ERP solutions, the company said.

While the acquisition of Sohnar doesn’t have a direct government market impact, I think it’s worth pointing out because of Deltek’s close ties to the contracting industry.

It’s also good to follow a company as it pursues its strategy and puts concrete actions behinds its words.

Of course, Deltek is no stranger to making acquisitions. It’s been very active in recent years, practically cornering the market for research around government contracts with deals for Input, FedSources and Centurion Research. Another related deal was the purchase of MySBX, a kind of social network for connecting companies.

It’s also acquired Maconomy, which bolstered its access to engineering and architecture firms.

So, I’d expect Deltek to continue to expand. There is no reason to think it won’t.

Posted on Mar 27, 2014 at 10:47 AM0 comments


Update on GD-Lockheed fight for Army contract

Thanks to an alert reader, I saw that I had missed a crucial fact in Lockheed Martin’s protest fight over an Army IT contract won by General Dynamics.

Lockheed is the incumbent on the contract, and it’s pulled in over $937.4 million in business since winning it in 2006, according to Deltek.

No wonder the company is fighting hard to keep the Army IT Agency as its customer.

Under the contract, Lockheed provides people, equipment, tools, materials and supervision for enterprise transport management services.

With the Army re-evaluating bids as a result of Lockheed’s protest, the company continues to provide the services under a bridge contract that runs through the end of September. The bridge contract was put into place before the Army awarded the contract to GD in February.

If I’m reading the Deltek files correctly, Lockheed took over the work in 2006 and won a recompete in 2009. They didn’t get as lucky with the third competition, losing to GD.

But their protest to the Government Accountability Office convinced the Army reopen evaluations around fixed price and cost-reimbursement pricing, as well as looking into an organizational conflict of interest issue Lockheed raised.

The contract is now back in the Army’s hands, and Lockheed has no guarantee that it will keep the work, but the fight will continue.

Posted on Mar 26, 2014 at 9:27 AM0 comments


Lockheed, GD battle for Army IT contract

Score round two to Lockheed Martin as it battles with General Dynamics for an IT contract to support the Army’s IT Agency Operations Directorate.

General Dynamics IT won the contract, but Lockheed Martin filed a protest with the Government Accountability Office objecting to the Army’s evaluation and source selection decision.


 

Click here for more on why Lockheed is fighting so hard for this contract.

After reviewing Lockheed’s protest, the Army has decided to withdraw its award to GDIT and take a corrective action. That move led GAO to dismiss Lockheed’s protest without ruling on its merits.

It’s interesting to look at what the Army told the GAO it will now do:

  • Conduct an organizational conflict of interest investigation.
  • Perform a price realism analysis for fixed-price line items.
  • Review its evaluation of proposals and, if necessary, perform additional evaluation.
  • Review its cost realism analysis of cost-reimbursement line items and, if necessary, perform more analysis.
  • Issue a new source-selection decision.

At this stage, Lockheed has scored a nice victory, but there are no guarantees. The Army is just as likely to award the contract to General Dynamics again. Of course, Lockheed can refile the protest, so we’ll have to wait and see what happens.

Details are sparse on what the contract is for other than the general description of enterprise transport management services.

According to its website, the Army’s IT Agency is responsible for the Army’s IT infrastructure around Washington D.C. Its tagline is Creating Connections by Putting the Byte into Fight.

The agency has six lines of services: business administration, enterprise management, operations, customer care, engineering, and enterprise information and mission assurance.

Posted on Mar 25, 2014 at 9:34 AM0 comments


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