How GD sees the market with CSRA in the fold

Almost one year since the blockbuster CSRA deal, General Dynamics IT still has some integration work to do but is mostly looking outward at market opportunities that underlined the acquisition's thesis.

General Dynamics’ IT services business is approaching the one-year anniversary of its blockbuster acquisition of CSRA on April 3 and still has some work to do in terms of integrating both businesses through consolidating real estate and IT systems.

The now-$8.3 billion-revenue business also did some portfolio reshaping with the sale of its former citizen-facing call center division in the fall.

But now with a new operating model and overall approach largely inherited from CSRA, GDIT is turning more attention outward to pursue a wider addressable market they see as full of large opportunities, executives told a group of reporters Friday at the business’ new headquarters in Falls Church, Virginia.

Bernie Guerry, chief operating officer of GDIT, said the business plans to bid on $50 billion in contract opportunities this year and currently has $15 billion in proposals under evaluation, mostly for new business.

Many of the bids under that umbrella are for contracts worth at least $500 million for large, complex IT jobs across the defense, civilian, homeland security and intelligence arenas that the newly-recasted GDIT feels better positioned for with the larger scale CSRA brought to the table and in what is viewed as an improving market dynamic.

“That’s significantly more than historically either company had been doing just a year ago,” Guerry told reporters. “There’s a healthy budget across each of our markets, particularly in the IT space and IT modernization, and you really need to be able to scale for many of these opportunities.”

GDIT’s new growth and operating model is “really the model that legacy CSRA was following and it’s one of the reasons why they were so attractive to us,” GDIT Chief Financial Officer Alison Harbrecht said. “We’ve leveraged what they had started to build and expanded that concept because we knew that growth model was going to be necessary to go after the large-scale deals in the market.”

These large contracts come after a long period of a “flat budget environment” as Guerry described it, and particularly as defense spending wound down in the early part of this decade. Agencies are packaging together those larger contracts for complex technology upgrades with added budget dollars and policy pressures to modernize their IT infrastructures.

Guerry said that umbrella of opportunities includes a telecommunications modernization program for the Defense Department, cloud computing initiatives at the intelligence community and an IT system management effort for the Federal Aviation Administration.

GDIT is also awaiting the outcome of the at-least $3 billion recompete of the Navy's Next Generation Enterprise Network services contract to maintain and modernize the branch's global internal IT network. That award is due sometime in the spring.

One key aspect of CSRA’s operating model that was attractive to GDIT -- and two other prospective bidders in the Winter 2017-18 auction process -- and viewed as important to keep was partnerships with other technology companies as a way to bring commercial tools and practices into government agencies.

That approach is unchanged and one that the recasted GDIT has embraced, according to Chief Technology Officer Yogesh Khanna, who held the same role at CSRA before the acquisition.

“We take a very holistic partner ecosystem approach because we’re not a product house as such, we don’t make any hard products,” Khanna said. “Partners are our lifeblood and we heavily rely on everything that they bring including their engineering prowess to collaborate with us and (bring) outside thinking.”

The partnership aspect includes within General Dynamics itself: particularly the company’s $4.7 billion-revenue mission systems segment that is essentially the IT hardware business. Mission Systems specializes in communications and other equipment primarily for defense, space and public safety customers.

Khanna said the idea there is to “fuse that with the power of IT” given not just the "GDMS" business' engineering and mission support work, but the other General Dynamics defense divisions as well.

Another key piece of the integration also was a physical location change. GDIT shifted its headquarters at the end of January to the new Falls Church site in the proximity of General Dynamics’ corporate headquarters from the former hub in Fairfax.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.