NCI isn't the newest hit show on CBS, but an IT services provider primarily for US federal government agencies. Among its services are enterprise systems management and integration, health IT, cybersecurity and information assurance, network design and engineering, logistics, program management and lifecycle support, training and simulation, and application development. Defense and intelligence agency clients (which account for about 85% of sales) include the Army, Air Force, USSOCOM, and the National Guard. The company also serves federal civilian agencies such as NASA, the Department of Energy, and the Senate.
NCI enjoys status as a pre-qualified bidder for hundreds of millions of dollars of government business. That puts it in a select group, but it also means that it goes up against industry giants such as Lockheed Martin, Northrop Grumman, General Dynamics, BAE Systems, and Raytheon, with whom it also may partner up on certain contracts. The number of qualified bidders it may go up against varies from a handful on the $900 million engineering and integration services contract vehicle for the Army, to as many as five dozen on the largest contract vehicle, the $50 billion infrastructure, application, and IT management package that covers all federal departments and agencies.
Business did dry up a bit in 2011. Despite the revenue fall of about 4% from 2010, however, the company's 2011 revenues still ended up at nearly 20% more than the 2009 total. The decline from 2010 was driven primarily by its core contract base suffering expired orders and contracts, scaled back work, and lost contract recompetes. All of that outweighed the gains the company did see through its AdvanceMed acquisition, its Program Executive Office (PEO) Soldier contract with the US Army (which accounts for around 15% of revenue), and wins in new and existing contracts.
The deal for AdvanceMed (a Computer Sciences Corporation affiliate) gave NCI a boost in the area of fraud and waste prevention services for the health care industry. AdvanceMed provided investigative services to administrators of Medicare and Medicaid programs to identify cases of funds misappropriation.
Although the company does make occasional acquisitions, it focuses on growing organically. That's easy to understand considering they have more than $100 billion in government business to vie for. Like companies in similar positions, NCI relies on the quality its customer relationships to generate new business. It sees opportunities for expanding to more customers within the agencies it serves.
NCI operates from offices in Arizona, Alabama, California, Illinois, Maryland, Nebraska, Ohio, Tennessee, Texas, Virginia, and Washington state.
Chairman and CEO Charles Narang controls about 85% of the company's voting power. – less