WT Business Beat

By Nick Wakeman

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Nick Wakeman

Should we care about a $7B energy contract?

Lots of stuff flows through my e-mail inbox everyday and most of the time hitting the delete key is the easiest decision I make.

But a few times a day, I have to stop and really think about it.

For the last couple of years, I’ve heard a lot of executives talk about how energy is an emerging market for companies in the IT and professional services sector. So when I saw the postings about the Army NetZero contract on GovWin, I had to pause and dig a little deeper.

According to an article on Alabama Live, which serves up news from the Birmingham News, Huntsville Times and Mobile Press-Register, the Army Corps of Engineers is planning a group of contracts to buy renewable and alternative energy to the tune of $7 billion.

The Washington Post also wrote about the group of contracts.

The Washington Business Journal also has a story about the Defense Department developing a plan for energy reduction.

Maybe the budget crisis and the need to save money is going to finally energize this long-talked about segment of the market. The threat of global warming and the reliance on non-U.S. sources of oil certainly hasn’t.

But what still has me scratching my head is where is the opportunity for the companies we cover. What’s the IT/engineering/professional services play here?

I don’t think we’ll see CACI International running a wind farm to supply electricity to Fort Bragg or will we?

The question in my headline really is: where is the sweet spot? What will the business opportunity look like?

Let me know if this is something we should be writing more about.

Posted by Nick Wakeman on Mar 06, 2012 at 9:53 AM

Reader Comments

Mon, Mar 12, 2012 Editor

Thanks for all the comments. We'll starting working on an WT energy strategy.

Fri, Mar 9, 2012 Steve C Washington, DC

Energy is going to be very high growth market in GOVCON. While all other agencies are getting cuts, Dept of Energy has received an increase in the presidential budget for 2013. It's HOT sector, no question!

Fri, Mar 9, 2012

Capital intensive, privately-financed energy projects are chronically dilutive to our earnings in the near term, and require a more binding commitment to buy than the IDIQ vehicle contemplated, if they are to be financible. The role for professional services/engineering? Maybe to help the government craft a more cogent acquisition strategy.

Wed, Mar 7, 2012 K.G. Scheessele NC

Nick: Please do check into this for all of us. Energy innovation could be a strong area for GovCon and its high level technology expertise.

Tue, Mar 6, 2012 Elliot V Everywhere

Thanks for the GovWin shout-out Nick! Also I think there is always room to take a deeper look at what future contracts will provide to the marketplace.

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