“Earlier this week I wrote about Science Applications International Corp.’s fourth quarter results and how analysts questioned SAIC execs about whether the company was large enough to pursue enterprise IT modernization contracts...”
“I’m of a couple minds on the question of scale. Is it possible that a $7.4 billion a year company is too small? The question floors me in many ways...”
“It wasn’t that long when the prevailing wisdom was that $1 billion was the goal. That’s when a company had enough scale, but we’ve long blown past that.
In last year’s Top 100, Leidos clocked in at the No. 1 spot with $9.2 billion in prime contracts. All the companies in the top 10 had more than $4 billion...”
“Perhaps there are more than three tiers in the market now. There might be six:
Extra-large – over $4 billion
Large -- $2 billion to $4 billion
Upper mid-tier -- $750 million to $2 billion
Middle mid-tier -- $250 million to $750 million
Lower mid-tier -- $100 million to $250 million
Small businesses – under $100 million...”
“This is the reality of the market. Size matters. So I don’t think SAIC will be the last company to field questions about whether they are big enough to compete...” Read the full article here.
Source: Why size matters in the federal market – By Nick Wakeman, April 1, 2022. Washington Technology.
Reply to this post...