News Release - 05-27-2010

DELTA CEO Participates in In-Sourcing Roundtable
The Montgomery County Chamber of Commerce features GovConNet Breakfast Forum on “In-Sourcing, Procurement Trends & Forecasts.”


Bethesda, MD – With the trend of federal in-sourcing growing the effects on contractors large and small is being noticed. On May 25, 2010 the Montgomery County Chamber of Commerce Government Contracting Network (GovConNet) sponsored a Breakfast Forum on “In-Sourcing, Procurement Trends & Forecasts” to take a closer look at the issue. The event brought together large and small contractors from across the Washington area as well as government representatives.

As part of the breakfast DELTA Resources’ President & CEO Maria Proestou participated in a panel discussing “In-Sourcing & Business Strategies and Opportunities.” Ms. Proestou was joined on the panel by Michael Bowlds, President, Mountaintop Marketing Group; Lauren Jones, Principal Analyst, Federal Industry, INPUT; and Timothy A. Kokinda, LandForces Program Lead, Lockheed Martin Information Systems & Global Services-Defense. The panel was moderated by Larry Davis, Managing Partner, Aronson Capital Partners.

The discussion focused on how much of an impact in-sourcing has on contractors and what they are doing to face the challenge. Proestou said that importance of customer relationships, partnering for access to contract vehicles. and diversification are key to DELTA’s success. While the federal government looks to create 600,000 new jobs it was unlikely according to Jones. She indicated that several hires would be merely associated with replacing retirees at an estimated rate of 2% meaning there should still be opportunities for contractors to continue to receive work.

Prior to the panel the event was kicked off with two speakers. Army In-Sourcing was discussed by Brigadier General, U.S. Army (retired) Edward M. Harrington, Deputy Assistant Secretary of the Army, Procurement. Harrington acknowledged that the trend to not exercise option years and re-compete services contracts are having a negative effect on small businesses. He recommended that contractors contact elected officials about reviewing the laws for in-sourcing inherently governmental and closely associated with inherently governmental functions.

The other speaker was Robert A. Burton of Venable LLP who covered the topic of “Regulatory Changes & In-Sourcing.” He discussed the consortium he formed that is providing a response to a March 31, 2010, Office of Federal Procurement Policy memo that was released for public comment. The memo provides federal agencies with guidance on how to implement in-sourcing. As currently drafted the memo does not limit in-sourcing to “Inherently Governmental Functions” but rather to those functions considered "critical" to the government. The actions based on the memo could provide a lasting impact on contractors.