BDM broadens IT push

BDM International Inc. is broadening its pursuit of federal information technology opportunities and is eyeing an expansion into value-added product sales.

The McLean, Va.-based integrator has made growth in the commercial, state and local government, and international markets a strategic thrust. But the company is investing in its traditional federal business as well. Last month the company hired William C. Hoover, former president of PRC Inc., to head its federal arm, BDM Federal Inc. Philip A. Odeen, president and chief executive officer of BDM, believes the federal sector remains an attractive market, particularly in IT.

"We have more bidding opportunities this year than ever," Odeen said. In 1995 the company bid projects worth an estimated $1.5 billion; the value of projects BDM has bid thus far in 1996 already exceeds that total.

Hoover is now managing that bid pipeline. He has been tasked with bolstering the IT content of the company's civilian business. Within the Defense Department, many of BDM Federal's projects - such as the Defense Enterprise Integration Services (DEIS) pact - are squarely in IT. But in the civilian sector, the company's business includes technical services work that is not IT-oriented.

Companywide, BDM aims to increase its IT content from the current level of 50 percent to two-thirds of the company's business by 1998, according to Odeen.

BDM is bidding on some high-profile civilian IT projects. The company is teaming with Boeing and MCI to pursue the Federal Aviation Administration's Standard Terminal Automation Replacement System contract.

The company also is competing for the Patent and Trademark Office's modernization pact and will defend its Electronic Data Gathering, Analysis and Retrieval System contract with the Securities and Exchange Commission when it is recompeted next year.

As for DOD business, Odeen noted that the Pentagon's IT spending is increasing. In DOD, BDM is pursuing the Defense Information Systems Agency's $3 billion, multiple-award DEIS II procurement.

Projects such as DEIS II are critical to BDM's strategy of leveraging omnibus services vehicles across government agencies.

The government is doing more software development work under indefinite-delivery, indefinite-quantity contract vehicles, Odeen noted.

IDIQ pacts allow BDM to provide services "across all federal agencies" rather than pursuing services procurements on an agency-by-agency basis, Hoover said.

Possible Solution

In another initiative, BDM Federal is considering an expansion of its activities in the product end of the IT business. Hoover said BDM is interested in providing "value-added solutions. BDM is looking at future opportunities where there is value added, not just iron sold. That's a part of the business BDM is interested in growing." Hoover said product sales offer the ability to provide re-engineering and other services to help customers take full advantage of their computer systems.

The Air Force's DMRD 924 pact is one example of a BDM contract with a product/service mix. The company also is examining the reformed General Services Administration schedule as a potential outlet for products and services.

"That's something we will be looking at," Hoover said.

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