The federal government’s push
to put more contracts into the hands of
small businesses has been a headwind for large companies that have
either lost work to the set-aside program or have seen big-dollar contracts
And Science Applications International
Corp. CEO Tony Moraco told analysts on
a second-quarter earnings call Thursday that his company is "working a lot
with the congressional leaders and the folks in the Pentagon and the
administrators to try and address that.”
SAIC CEO Tony Moraco told
analysts on a second-quarter earnings call Thursday that his… more
Joanne S. Lawton
Moraco said the main remedy
that his company and others in the industry are proposing is for federal
agencies to score subcontracting dollars against agency goals of 23 percent.
Currently, only prime dollars count toward that tally.
If we’re successful
collectively in the acquisition community to give the acquisition officials
credit for not just prime contract but the subcontract work, we think that will
reduce some of the pressure to carve out small business set-asides and provide
a more full-and-open competitive landscape going forward,” Moraco said.
The McLean-based government
services company has felt this small business pressure in two ways.
One instance includes "a
full set-aside where incumbent work has been converted to a small business
prime set-aside,” Moraco said — which forces SAIC (NYSE: SAIC) to be selective
about which small businesses it serves as subcontracting partner and almost
always has an impact on top line.
The other case is where a large
contract is broken up into smaller pieces when it is recompeted, with some of
that going to small businesses — ultimately shrinking the size of the award for
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