Omni Federal eyes more big swings with new private equity owner

Omni Federal took what it sees as a fair amount of swings at bigger contracts of a full-and-open nature, a necessary step as part of every federal contractor's graduation from small business status.

Getting those wins based on the solution being offered is one thing. Being able to support that growth trajectory and execution is the other key aspect of making that leap, even as Omni Federal began its own transition.

"We had an understanding that we need to have those economies of scale in certain systems and platforms that we invested in," Omni's founder and chief executive Parag Thakker told us. "You've got to build that muscle to be able to survive."

The company opened for business in 2017 as a software developer and integrator that today employs close to 250 people. Omni develops its products for a user base that includes military operators and intelligence specialists.

For Omni, this new phase of its strategy and vision is where its new owner in private equity firm Madison Dearborn Partners enters the equation. MDP acquired Omni in June for an undisclosed sum amid the contractor's push to further scale out its delivery function.

MDP is the same investor that is in the process of selling the space systems integrator LinQuest Corp. to KBR for $737 million. AEVEX Aerospace, T2S Solutions and Unison are among MDP's other backings in the government market.

Matt Norton, a managing director at MDP and head of its technology and government practice, told us that the new provision of capital to Omni will be far from the only aspect of this partnership.

Norton said MDP will work with Thakker and other members of Omni's senior leadership team on identifying and going after more strategic opportunities by "using MDP's network and resources, and using the new board we're putting in place."

The difference in color of money also is key to understanding where Omni wants to go with MDP's support.

"We spend a lot of money on IRAD (independent research-and-development) across our portfolio, which is a risk that a lot of traditional government contractors will not make," Norton said. "But in the commercial world, that's all you do -- bring an innovative entrepreneurial approach to solving a customer's problem before they give you a contract or a requirement that you're meeting."

Omni was mostly born out of the Defense Department's software factory ecosystem, but also uses commercial technology as foundational to the solutions developed for DOD.

Thakker said that approach especially comes into play with how Omni thinks about the user experience, which in some respects can mean how citizens interact with government agencies.

In the context of what Omni does, how mission operators will use the software becomes paramount.

"People are used to modern software already, the commercial industry has already set that bar right now," Thakker said. "There's a big shift happening and UX is the big driving principle, everything is all about centering around users."

The unique fabric and mechanics of how government agencies buy and deploy software remains key for Omni going forward even with its commercial-like mindset, according to Thakker.

"You cannot just come in from Silicon Valley and say 'Here is a technology, government, use it,'" Thakker said. "We believe in the mindset of working with people versus working for people."