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Tech Bisnow
January 6, 2012
DoD Cuts:
A Survival Guide

Our next Washington Women's Series will focus on the media. (Yes, we're a part of it, but our speakers are much cooler than us.) Join ABC News White House Correspondent Ann Compton, Travel Channel president Laureen Ong, and Atlantic Media Company VP Linda Douglass. Thursday, Jan. 12 at the Renaissance Dupont. Sign up today!

President Obama announced a plan to whack over $450B from the DOD budget over the next decade. It may force some fed IT contractors to look at other ways to make money.
WidePoint is one of those companies. Too much uncertainty under this dome forced it to diversify its revenue stream. This week, it acquired Avalon Global Solutions, a communications management provider. WidePoint, a cybersecurity and mobile telecom company, based in Oakbrook Terrace, Ill., but with a large presence in Fairfax, Va., spent 2011 expanding its commercial footprint to rely less on gov contracting dollars. Avalon, acquired for $8.5M and potentially $3M more if certain targets are met, brings with it over 70 commercial customers, and a few government ones like ATF and DOT. Both agenices will be new fed customers for WidePoint.
Oceus (Facebook) Mini
Sam Donaldson
During WidePoint’s conference call Thursday morning, the familiar voice of Sam Donaldson, a private investor, chimed in with some questions about the future of gov business. (He stole the questions right out of our mouths.) WidePoint CFO Jim McCubbin says cybersecurity is likely safe from any gov cuts, and the state and local gov market is seeing an uptick as agencies look for cost saving tech that Jim says his company provides. He didn’t say how much the company’s federal business was hurt in 2011 but thought overall the company would see improvements in 2012. Sam was pleased.

Fleeing The Small Biz Nest
Citizant marketing VP Bruce Milligan with wife Allison
Citizant marketing VP Bruce Milligan (with his wife Allison) says 2012 may be the year that the Chantilly, Va-based gov contractor breaks free of its small business status. It graduated from the 8(a) program over a year ago and has been working on non-set aside contract wins to make the transition to a mid-size company. Basically, it's going through pubert(a). Bruce says Citizant has a strong pipeline of work for 2012 based on large IDIQ wins at DOJ and Treasury. The company also submitted a proposal for work on DHS’ Eagle II contract. Not bad for one of the most competitive fed contracting climates Bruce says he's seen.
Citizant CEO Raymond Roberts
Last time we spoke to Citizant CEO Raymond Roberts, he was in expansion mode both through square footage and employees. It’s contracts, like HUD’s enterprise architecture services BPA, are helping propel Citizent beyond a small business. The company recently announced new task orders under the contract to assess the agency’s IT systems and future costs. Its most recent report was delivered to Congress this week. But the company is focused on driving business from DOJ, DHS, and Treasury as it transitions out of reliance on small business set-asides.

MicroTech Building Army Cloud
MicroTech CEO Tony Jimenez
Tony Jimenez’s MicroTech was one of four companies awarded the Army’s first Private Cloud Mobile IDIQ contract. (HP, General Dynamics and Criterion were the others.) The full and open $250M deal, which drew lots of bidders, calls for server consolidation and updating and optimizing IT with fixed and containerized data centers. Vienna, Va.-based MicroTech’s part will be to provide, maintain, operate, and support the Army’s mobile data centers. Tony’s company will also provide hosting services, and various cloud services like SaaS, PAAS, IAAS, and data and application migration services. Tony, a military vet, opened MicroTech’s Innovation and Integration Center last summer to boost its cloud and data center business. It's nice when the Army takes notice of something you've done. Well...with a few exceptions.
Are you diversifying your revenue stream? Tell your story to tech editor Tania Anderson.
Cardinal (Cook) TECH
Argy (Innovate)
Oceus (Facebook)
Bisnow Mobile TECH


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