I am excited to be presenting, “Realizing the Desired Reward on Exit,” at the National Defense Industrial Association (NDIA) New England Chapter’s Getting Your Government Contract Business from Spring to Summer event on May 22, 2019 in Burlington, Massachusetts.

This advanced workshop will provide benefit across the spectrum from firms providing services to the federal

Just a few days into Donald Trump’s presidency, he has already taken actions that raise potential challenges and opportunities for federal contractors. In his Memorandum of January 23, 2017, Trump imposed a hiring freeze on civilian employees.  The order also states that “[c]ontracting outside the Government to circumvent the intent of this memorandum shall not be permitted.”  The order requires the director of the Office of Management and Budget (OMB) to “recommend a long-term plan to reduce the size of the Federal Government’s workforce through attrition” within 90 days (i.e., late April of this year). The order will expire upon implementation of the OMB plan.  In the short-term, this creates obvious challenges for agencies and their contractors seeking new employees to perform government services.

Continue Reading

Government contractors are learning the hard way that agencies need to be kept apprised of major changes within the company during the entire period of bid evaluations. Most recently, the Government Accountability Office (GAO) made an example of Lockheed Martin Integrated Systems, Inc. (LMIS), which was excluded from awards for failure to disclose its spin-off agreement with Leidos.

Continue Reading

Recently, Bass, Berry & Sims co-hosted (along with investment banking firm Bluestone Capital Partners and accounting firm BDO) a CEO panel discussion on “Building Shareholder Value in the Mid-Tier.”  Panelists included Chris Coleman, CEO of LookingGlass Cyber Solutions. Paul Leslie, CEO of Dovel Technologies. and Julian Setian, CEO of SOS International. Tim Garnett of The Avascent Group delivered a keynote presentation. The focus of the event was to discuss strategies for middle-market government contractors to build value for shareholders.

Continue Reading

Recent mergers and acquisitions activity among government contractors has been frothy, especially in the government services sector. What has been driving all the activity? Elevated stock prices and readily available credit has certainly accounted for some of it, at least until the recent decline of capital markets at the end of 2015 and thus far in 2016. However, even with the capital markets decline, there are macro trends specific to government services that at least partially counteract the decline of the broader market and cause many in the sector to remain relatively bullish on continued M&A activity.

The most important of these macro trends are contract vehicle consolidation and a shift toward low price-technically acceptable (LPTA) awards. During President Obama’s term, in the name of budgetary concerns, the administration has worked with agencies to reduce the number of federal contracts by consolidating contracts into fewer and larger vehicles. Mid-sized government services players need to grow larger to be able to continue to compete for these larger vehicles. They often seek growth by acquiring other contractors with sought-after, differentiated capabilities and deep customer relationships. Buyers are choosy when it comes to acquisitions, and contract consolidation has made it more difficult to accurately analyze whether a target’s contracts will be eliminated altogether or consolidated into a larger vehicle. This makes valuations a challenge, which helps explain why we see a fair number of earn-outs based on renewals of specific contracts. However, companies with coveted prime positions on full and open contract awards with a good backlog can find themselves highly desired targets.


Continue Reading