BDM International Inc. President Earle Williams revealed yesterday that the McLean-based professional services company is seeking government action to reverse the award of an $8 million contract now held by BDM to a minority business in California.
Addressing stockholders at the annual meeting here, Williams noted that the contract represents about 14 percent of the company's annual business volume and accounts for the jobs of 225 BDM employes.
At issue are scientific and engineering services that BDM has provided the Army's Combat Developments Experimental Command since 1971. Recently the Small Business Administration announced it would place the next contract with Arcata Associates of Burlingame Calif., when the current one with BDM expires Sept. 30.
In letters to the Army and members of Congress, Williams has accused the SBA regional office in San Francisco of misstating BDM's record. The award to the minority firm was made without competitive bidding under a law designed to aid such businesses. The SBA can pinpoint specific Army contracts and transfer them to small firms, with the Army's only role being to review the new company's competence.
Williams expressed optimism that BDM would retain the contract, based on meetings with government and regulatory officials that he termed satisfactory.
BDM Vice President and Treasurer Terrence M. McManus said first-quarter net income was $554,152 compared with $470,526 last year. Sales were $17.83 million, up 24 percent over the $14.43 millon recorded in the same period last year.
On another topic, Williams said BDM officials have made no decision on a possible public stock offering."We will make a public announcement when and if such a decision is made," he added.