Technology Firms Expect Growth In Government Specialty Work

[Rose Siding]

Six years ago two government contracting veterans, former CACI International Inc. executives, founded SI International Inc. in Reston. Although the region was packed with companies building technology systems for the government, they thought there was room for another. SI International now has 2,000 employees and is hiring 200 to 300 more.

The fact that federal contract spending isn't expected to grow as fast as it has in recent years doesn't bother SI's executives. Although funding may drop off or become flat in some areas, they expect government demand to remain strong for their specialty -- designing, building and securing communication networks.

"The guys who are not getting the budget attention are the guys who build big platforms, like atomic submarines," said Thomas E. Dunn, SI International's chief financial officer. "We're very bullish about hiring for the next 12 months."

Federal spending on contractors is expected to grow more quickly than it has historically, though not quite at the booming pace of the three years after Sept. 11, 2001. And the growth will likely be uneven, with contractors that specialize in technology services growing the most in 2005, according to experts.

http://www.washingtonpost.com/wp-dyn/articles/A42857-2005Jan2.html?nav=rss_politics

[Tempest]

1. Wanna bet?

Bush is proposing massive cuts in all kinds of programs, and the Pentagon is also proposing big cuts.

So what do you think will get cut first, weapons systems or computer systems?

According to a friend's son who works on the DHS computer contract, computer purchases and software projects are already being put on hold. And this is before any cuts have been formally introduced.

The only computer companies who'll make money from the government are those with close ties to the players in the administration.

[Rose Siding]

2. CACI will make out ok

One of their guys was in the Abu Ghraib photos (no charges, as I recall)