These types of contracts are also becoming a lower percentage of total federal spending, said David J. Berteauof CSIS. “Services contracts have been declining faster than contracts for products,” he said.
Virtually every agency CSIS spotlighted saw reductions in services contract obligations; the Department of Health and Human Services, however, bucked the trend and reported slight growth.
SAIC reports decline in earnings
Science Applications International Corp.
reported significant declines in both sales and profit for its most recent quarter, which it said were related both to sequestration as well as the costs of splitting the company.
SAIC is in the process of dividing into two public companies: one focused on government services that will retain the SAIC name and another specializing in technology for the national security, health and engineering sectors that will be called Leidos.
For the three-month period ended Aug. 2, SAIC said its profit dropped to $42 million (12 cents per share), a nearly 62 percent decline from the same quarter a year ago. Revenue fell about 12.5 percent to $2.47 billion.
K. Stuart Shea, the contractor’s chief operating officer, said the company is moving closer to completing the split.
“We are nearing the finish line,” he said in a call with investors last week. “Employees are prepared and eager to get on to their new companies.”
GAO denies edCount protest
The Government Accountability Office last month denied a protest filed by District-based edCount after it was excluded from an Education Department competition for operations management of the National Clearinghouse for English Language Acquisition and Language Instruction Educational Programs.
The company challenged “virtually every aspect of the agency’s evaluation of its proposal,” the GAO wrote in its report.
Still, the GAO backed the Education Department.
CACI wins fight for legal expenses
A federal judge has ruled in favor of Arlington-based CACI International in a dispute over whether its accusers should pay its legal expenses after the company won dismissal of a case alleging its employees directed mistreatment of Abu Ghraib detainees.
The judge ordered the four plaintiffs, all Iraqis who served time at the prison, to pay nearly $14,000.
This summer, CACI secured a long-fought victory when a federal judge dismissed the lawsuit against one of the company’s units, deciding that because the alleged abuse happened overseas, the U.S. District Court in Alexandria did not have jurisdiction to hear the case.
After CACI filed the bill for its expenses, lawyers for the plaintiffs submitted an opposition to the request, arguing that it was unjust.
CACI said in a reply that the opposition “is just the latest example of plaintiffs arguing that they are entitled to an exemption from the rules applicable to every other federal court litigant.”