WT Business Beat


Top failure factors for government contracts

The federal landscape is littered with failed projects. Some are huge, complex projects that grab lots of headlines; others never see the light of day.

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Posted on Apr 23, 2014 at 11:47 AM0 comments


SI makes blockbuster deal for most of QinetiQ North America

The SI Organization has made two acquisitions since it spun out of Lockheed Martin in 2010. Both were good solid deals but not the kind of blockbuster it is trying to land now.

The company is planning to buy virtually all of QinetiQ North America as QNA’s British parent looks to downsize its U.S. operations and back away from the American services market.

The SI is paying $165 million for QNA’s Services and Solutions Group includes everything except for the Cyveillance, a cybersecurity firm QNA acquired in 2009. The company will pay an additional $50 million as part of an earnout based on performance as of March 2015.

According to a financial presentation from the British QinetiQ Group plc, the North American services group had about $800 million in 2013 revenue. All of that business minus $20 million attributed to Cyveillance and some other product business is going to the SI Organization.

In addition to Cyveillance, QinetiQ is keeping its product business in the United States including the Talon and Dragon Runner robots, Q-Nets, which protect against rocket propelled grenades, and SWATS, which wearable systems that track the sound of gunshots to locate snipers, a QinetiQ spokesman said.

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Posted on Apr 22, 2014 at 10:54 AM0 comments


Has the Air Force dodged a bullet with NetCents 2 protests?

The number of protests over the Air Force’s small business awards for the NetCents 2 Network Operations and Infrastructure contract has grown to nine.

But the good news for the Air Force is that no new protests have been filed since April 14, and out of 17 potential protesters (losing bidders), only nine have filed protests.

Yes, that is more than half, but it’s a manageable number. It indicates to me that this set of NetCents 2 awards isn't a disaster. The 12 winners announced March 27 for the $5.8 billion contract might be a defensible set of awards.

We’ll have to watch to see what the Air Force does now, but nine protests points to a relatively quick resolution.

My choice would be to see the protests run their course with a decision by the Government Accountability Office because I’d like to get some insights into the Air Force decision making processes.

But the smarter course for the Air Force might be to take a corrective action that adds the protesters to the contract. That would get NetCents 2 NetOps up and running the quickest.

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Posted on Apr 22, 2014 at 1:22 PM0 comments


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