DynCorp International (DI) Chairman and CEO Steve Gaffney was featured on Government Contracting Weekly, where he discussed changing trends in the defense industry.
Major Changes in the Defense Contracting Industry
Gaffney discussed changes that have occurred in the defense contracting industry in the last 30 years.
“What I’ve noticed is you actually have to look at what’s been going on in the country which feeds into ‘how does the Defense Department and the acquisition arm react?’” Gaffney commented.
When discussing the state of the industry in the 1980s, Gaffney said, “There was this partnership between the government and industry, which led to most of the contracts at the time [being] fixed-price, so it was very common to take fixed-price contracts for very complex projects.” In the 2000s, after 9/11, compelling government needs to support U.S. foreign policy led to a more competitive industry, focused on innovation.
“Whenever there was a lot of competition, it really brought out the best in the industry,” Gaffney said.
Shifting within the Industry
Gaffney then discussed how DI has anticipated changes in the industry and reshaped its portfolio, as well as how the Company serves its customers.
“Do I think we’re fundamentally going to shift away from national security and supporting contingency work? I don’t think so. But do I see a time that we’re actually going to shift to the Pacific Rim or shift to actually trying to serve the mission much more efficiently? And the answer to that is yes,” commented Gaffney.
In terms of how DI has shifted organizationally, Gaffney commented, “We are going to be asked to do more with less.”
“Those are the types of things we’ve been focused on. How do we serve the mission better? That’s why we restructure, that’s why we look at getting the leadership in place that looks towards the future and not so much towards the past. How can we better serve that customer so that in the future they pick us for new wins?”
Recent Contract Wins
Gaffney attributes recent contract wins on the strong teams in place at DynCorp International.
“It all comes down to literally building a team that is able to confront the realities of the marketplace on a recurring basis in order to figure out ways to win.”
“You have to have the right values because as a service provider, our people are our products. It’s important that you have the appropriate leadership in place so that they, the customer, want to continue to do business with us,” he added.
About Government Contracting Weekly
Government Contracting Weekly is a television show that informs and helps companies win government business. It airs Sundays at 7 a.m. on CBS-affiliate WUSA9, a local station serving the D.C. Metro Area.