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$178 million from the FAA
Monday, April 1, 2002
Promod Sharma sees his company’s future written in the sky. The president and CEO of Maryland-based Client Network Services, Inc. (CNSI) is celebrating a contract from the Federal Aviation Administration, worth more than $178 million, to provide services in support of the agency’s National Airspace System mission and support systems. This will include enroute air traffic control centers, terminal area air traffic control systems, communication and surveillance systems, search and beacon radar and surveillance systems and maintenance monitoring control systems.

This contract is the largest for the 8-year old CNSI, whose client base includes federal and state government agencies, commercial clients, and international entities. CNSI has done some subcontracting for the FAA on databases, but those contracts were in the thousands of dollars, not millions.

Winning this contract is notable, given the current glut of talent and a dearth of government consulting projects. It’s also significant for the fact that CNSI displaced an incumbent contractor, which is not common where government contracts are concerned.

For Sharma, going after bigger, long-range contracts was a no-brainer. “When we started CNSI, we wanted a company that would double every year,” explains Sharma. “We’ve been very aggressive in going after large contracts. We’re very focused on our planning, and we have a very strategic approach to what we do.”

Bidding for government contracts is no way to make a fast buck. It’s not out of the ordinary for bidders on large contracts to begin dedicating resources toward planning sometimes years in advance of an official government request for proposals. While committing resources to the bidding process over a longer period of time theoretically increases the odds of success, it also adds to the stack of chips a company has on the line. Obviously, the gamble is greater for smaller companies.

CNSI began its bidding process at the start of 2001, investing a year in gaining a thorough understanding of the FAA’s needs, goals, motivations, cost factors, and anything else that might figure into the agency’s decision-making process. CNSI also looked at the potential for growth in its relationship with the FAA. Sharma already foresees the possibility that additional work stemming from this project could double his company’s long-term business with the federal agency.

Government contracts favor the tortoise over the hare. Entrepreneurial razzle-dazzle carries little weight with government bureaucrats. Instead, bids for federal projects must follow a thorough and well-developed set of regulations and lengthy procedures to ensure that contracts are awarded to the best-qualified and most capable contractors.

CNSI will commit a sizeable portion of its 360-employee workforce to the FAA project, while adding another 150 workers to its payroll, many of them employees of the FAA’s prior contractor. It’s typical in federal contract bidding for the successful bidder to retain the staff of the unsuccessful, incumbent contractor, because ensuring a smooth transition for the client is critical to a successful bid.

Adding so many employees, especially when most are located at remote client sites can lead to management headaches, Sharma concedes. But CNSI’s employee count has doubled almost every year. It’s a sign, not only for Sharma’s company, but also for the entire consulting sector that perhaps things are looking up.
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