What the 2020 Top 100 says about today's market

From the top to the bottom, the 2020 Washington Technology have plenty to say about the major trends driving the market and how customers are pushing contractors in new directions.

Taken as a whole the 2020 Washington Technology Top 100 shows a government contractor market coming off a strong year of growth and positive activity.

Sign number one of a good year is that the aggregate value of the prime contracts for the Top 100 reached $126.3 billion, compared to $115.4 billion for the 2019 Top 100. That’s the fourth year in a row that we’ve seen growth since the market hit bottom with the 2016 Top 100 when the aggregate prime contracts totaled $97.2 billion. The low point came after five years of declines.

The market still hasn’t reached the peak we saw with the 2011 Top 100 when the aggregate prime contracts were valued at $132 billion.

And on a historical note, the 2001 Top 100 – 19 years ago – the aggregate prime contract number was $26.8 billion. That was before the Sept. 11 terrorist attacks super-charged the market.

It is important to note that the 2020 Top 100 is based on federal procurement data collected for calendar 2019. We analyze Federal Procurement Data System reports using over 700 product and service codes that represent IT, systems integration, telecommunication, professional services, engineering services and other technology spending.

An important caveat to this year’s Top 100 is that because we used calendar 2019 data, the rankings do not reflect the impact of the government’s response to the COVID-19 pandemic. Whether that impact is positive or negative will have to wait until next year’s Top 100.

But several long terms trends are evident in the Top 100 that will continue to drive activity in the market regardless of the pandemic.

Mergers and acquisitions, divestitures, major contract awards, and more rapid adoption of business models such as the cloud and managed services will continue to influence what is happening in the market.

You need look no farther than Leidos, the No. 1 company on the Top 100 with $8.1 billion in prime contracts.

The company pulled off two major acquisitions. It paid $1.65 billion for Dynetics, a space engineering firm, and then $1 billion for the airport security technology business of L3Harris. They also won a couple major recompetes valued in the billions – the $4 billion Hanford site cleanup contract and a $4.6 billion DISA contract to run a global network.

Still in the protest phase is the Navy $7.6 billion NGEN contract that Leidos took away from Perspecta.

But Leidos isn’t alone in big wins.

Science Applications International Corp., No. 11 with $3.7 billion in prime contracts, acquired Unisys Federal for $1.2 billion. It also captured a five-year, $2.9 billion OASIS task order to provide software development and other services to the Army. The company also captured a $1.4 billion Justice Department contract to continue supporting the agency’s asset forfeiture program.

Many others are reporting wins as well. For example, NCI Information Systems, No. 83 with $268.3 million in prime contracts, told us that their book to bill ratio for 2019 was two times revenue and will be better than 1.5 times for 2020.

CACI International, No. 12 with $2.9 billion, captured a significant new contract when it won BEAGLE, a $1.8 billion contract to modernize the back office systems for Customs and Border Protection.

A common theme that runs through many of these wins is the desire by many government agencies to modernize their IT infrastructure, applications and systems. The big buzz word many are using is digitization.

The work is attractive for many companies because it tends to be higher margin and it requires a closer working relationship with your customer.

For Serco Inc., No. 32 with $869.5 million in prime contracts, getting into position to win that kind of work meant walking away from lower margin contracts that were primarily competed on a lowest price, technically acceptable basis.

“In the past, we were just saying, let’s bid lower and then we’ll win the work,” said David Dacquino, CEO of Serco Inc., the U.S. subsidiary of the U.K.-based Serco PLC.

Moving away from that kind of work was a challenge. “It was a significant cultural change because we were comfortable with that, but our backyard was getting too small,” he said.

The shift to higher margin work required investments in people as well as acquisitions such as the deal it made for a portion of Alion Science and Technology that added more Navy work.

The government also played a role in pushing that kind of change at Serco. “We saw customers looking to get a better value,” Dacquino said.

That’s just one example of how the government and what it is asking for is driving companies to change. The market is definitely in an era of push and pull, where agencies are more open to commercial technologies and new ways of doing business and companies are finding new ways to introduce those concepts to their customers.

During our Top 100 event, panelists from Booz Allen Hamilton, No. 8 with $5.2 billion in prime contracts, and ManTech International, No. 28 with $1.2 billion in prime contracts, both described how customer demand for modernization drives change.

Many contractors have set up organizations that allow commercial tech vendors and government customers to come in and test drive solutions and try out cutting edge technologies. The result is we see many companies now with “Centers of Excellence” or “Innovation Labs.” And we see it in people’s titles. Srini Iyer is senior vice president of ManTech’s Innovation and Capability Office and Gary Labovich is the Next Generation Modernization Lead at Booz Allen.

They described a hunger by customers for new ways of doing business and getting results more quickly. The moves by the companies on the Top 100 reflect this overarching market driver.

Companies on the larger end of the Top 100 talked about a need to focus much the same way the smaller companies on the Top 100 spoke of focus.

As Tony Colangelo, founder and CEO of Minburn Technology Group, No. 94 with $225.3 million in prime contracts, said the key to his company’s success was the decision “to do a few things really well instead of a lot of things not well at all.”

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.