1 / 20

A CEO’s Perspective on National Imperatives Paul Cofoni President & CEO, CACI International Inc

A CEO’s Perspective on National Imperatives Paul Cofoni President & CEO, CACI International Inc. National Contract Management Association Government Contract Management Conference December 10, 2010. The Market Environment – Spending Reductions Are Inevitable.

rory
Download Presentation

A CEO’s Perspective on National Imperatives Paul Cofoni President & CEO, CACI International Inc

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. A CEO’s Perspective on National Imperatives Paul CofoniPresident & CEO, CACI International Inc National Contract Management AssociationGovernment Contract Management Conference December 10, 2010

  2. The Market Environment – Spending Reductions Are Inevitable No segment of federal, state, or local government will be spared Reductions not likely to occur evenly Politics likely to have a delaying effect National imperatives will dictate

  3. The Market Environment – What Are Our National Imperatives? Job Creation/Growth in GDP Education – STEM Cost and Accessibility of Good Health Care Energy Independence and Security Environmental Improvement National Security Cyber Defense Everything Else

  4. Job Creation/Growth in GDP – What Can Make It Happen? Innovation of new or improved products and services Serve global needs, not just domestic – The biggest opportunity lies in developing economies Innovation has been a consistent driver of our economy over our nation’s history – Demand fulfillment – Demand creation Competition and the associated risk/reward paradigm leads to innovation CACI International, Inc | December 10, 2010 4

  5. Economic Growth Model National Commitment + Competition + Profit Motive Innovation + Entrepreneurialism New Value Creation (Improved Products & Services) Increased Jobs and Domestic Sales + Exports (GDP) Increased Personal Income and Corporate Profits Increased Federal Revenues Increased Federal Spending for Citizen Services CACI International, Inc | December 10, 2010 5 Competition Is the Pressure That Creates Diamonds

  6. Education – STEM(Science, Technology, Engineering, and Mathematics) “We owned higher education in the 20th Century. And we still ‘own’ it, so to speak. Over a third of the top 100 institutions in the Shanghai rankings are U.S. based.” “The population of international students declined from 689,000 to 618,000 between 2001 and 2003. But the numbers have rebounded greatly, with 859,000 F1 visas awarded in 2008.” “While students used to stay and get jobs in America, they are now choosing to go home and help build their economies.” Watson Scott Swail, Ed.D. President & CEO, Educational Policy Institute                                                  Trends in International Student Enrollment P2 May 2010   In 2004, the U.S. graduated 137,437 engineers vs. 112,000 from India and 351,537 from China Bloomberg Businessweek, Dec. 12, 2005 CACI International, Inc | December 10, 2010 6

  7. CACI International, Inc | December 10, 2010 7 PhD Degrees Awarded by U.S. Universities and National Origin (1958-2003)

  8. Healthcare challenges may be opportunities and not just problems Opportunity for economic growth in the U.S. healthcare industry Healthcare services, plus combined medical technology and pharmaceutical industries = Opportunity to lengthen human life How much GDP growth could come from domestic sales and export of life extension? Cost and Accessibility of Good Healthcare CACI International, Inc | December 10, 2010 8

  9. CACI International, Inc | December 10, 2010 9 Energy Independence and Security • Military relies on unrestricted access to energy sources • Sharp increases in energy costs wreak havoc on economy • Environmental issues associated with energy affect the quality and length of life

  10. Environmental Improvement There is no satisfying answer to the question: – How much pollution should we accept in the air we breathe, the water we drink, or the ground in which we grow our food? CACI International, Inc | December 10, 2010 10 • “From 2003 to 2020, the number of vehicles in China will rise from 26 million to 120 million. And then there is India, Russia, and the Middle East – the rest.” • – McKinsey Global Institute • “Between 2006 and 2012, China and India will build 800 new coal-fired power plants – with combined CO2 emissions five times the total savings of the Kyoto accords.” • – The Post-American World, Fareed Zakaria

  11. National Security Without this, not much else matters – The wolf is always at the door This is the one challenge where the U.S. holds the #1 position CACI International, Inc | December 10, 2010 11

  12. The Emerging World of Cyber Threats Cyber attack vectors – Stuxnet Insider treason/disloyalty – WikiLeaks Pre-kinetic/battlefield preparation – Georgia/Estonia attacks Crime – Zeus botnik Terrorism – Jihadist recruiting Counterintelligence – Signal hacking CACI International, Inc | December 10, 2010 12

  13. The Emerging World of Cyber Threats Who are the adversaries? What constitutes war? Laws to allow maximum defense? – Privacy vs. security What is the high ground in this fight? What is the deterrent? What is trust? Who can you trust? – “Send me your leaks!” Contract management organizations will be at the center of addressing these threats CACI International, Inc | December 10, 2010 13 Another race to the moon? Another Manhattan Project? Another supercomputer consortium?

  14. CACI International, Inc | December 10, 2010 14 Cyber Threat Implications for Acquisition and Contracting • Increased complexity for IT systems requirements and acquisition strategies • Supplier base challenges and implications • One hundred percent testing and inspection and increased infrastructure costs for companies • Likely increase in security classification requirements • Decreased number of “acceptable” suppliers • Increased cost and infrastructure barriers for small business • Limitations on data and information that can be posted to Internet Likely impacts – increased costs, smaller supplier base, longer acquisition cycles, real challenges for small businesses

  15. CACI International, Inc | December 10, 2010 15 What Are the Implications for the Nation? • National strategies are required for these large, complex problems • These challenges will be with us for decades • These challenges cannot be met with specifications and RFPs alone – Can we move from arms length to collaborative undertakings? • Understand the relationship between risk and reward in the government-industry relationship • Shifting risk is not managing risk – may actually increase risk

  16. Rockwell Boeing Argo Systems Loral Litton Precision Gear BDM (Carlyle) McDonnell Douglas Hughes Electronics Satellite Boeing Honeywell-Electro-Optics Fairchild Weston Systems Inc. Lockheed Martin Loral Jeppesen Sanderson Ford Aerospace BDM International Inc. Aerospace Electronic Systems Librascope LTV–Missile Business IBM–Federal Systems Unisys Defense General Dynamics–Ft. Worth MEL Lockheed Martin Marietta Gould Ocean System Division General Electric–Aerospace COMSAT Corp. Commercial Aerostructures Affiliated Computer Services Inc. (ACS) Northrop – West Virginia Logicon Teledyne Ryan Aeronautical General Dynamics Space Business Northrop Northrop Grumman LTV–Aircraft Operations Grumman Corp. Westinghouse El. Defense Ryan Aeronautical Kistler Aerospace Corp. Alvis Logistics–EDD Business Federal Data Corp. Taratin TASC (Primark) PRC (Black & Decker) General Instruments–Defense Varian–Solid State Devices Hughes Litton Industries General Motors Avandale Industries Raytheon BET PLC's Rediffusion Simulation Newport News Shipbuilding General Dynamics Missile Division TRW Hughes Electronics Magnavox REMCO SA Raytheon STC PLC–Navigation Systems Raytheon – Flight Simulation Raytheon Co-Plant, Quincy TRW-LSI Products Inc. Corporate Jets E-Systems Chrysler Techn. Airborne TI Defense Eng & Const. Int’l Aircraft Integration Systems Segment Vertex Aerospace Veridian Corp GM Defense Motorola Integrated Info Sys Galaxy Aerospace Primex Technologies Santa Barbara GTE Government Systems Corp. Units Gulfstream Aerospace NASSCO Holdings, Inc. Computing Devices International, Inc Lucent Advanced Technology Systems General Dynamics Lockheed Martin Defense Sys, Armament Sys Bath Iron Works Chrysler Defense, Inc General Dynamics Source: CSIS, SDC, DACIS DM&A Space Propulsions Missile Operations Electronics Division Fort Worth Div. Space Systems ‘00 ‘01 ‘02 ‘03 ‘04 ‘88 ‘80 ‘82 ‘84 ‘86 ‘90 ‘92 ‘94 ‘96 ‘97 ‘98 ‘99 There Will Be Winners and Losers – Consolidation Will Increase Peace Breaks Out AWF Greatly Reduced

  17. CACI International, Inc | December 10, 2010 17 How Do We Deal With New Federal Spending Realities? New Focus Areas – Move from resourcing the need to: • Hard choices • Across-the-board federal productivity improvement • Managing demand • Pay for output, not input • Return to lean, process reengineering, and process standards to improve efficiency • Examine what is core and what is not • Innovation, streamlining, and service excellence become more important differentiators

  18. CEO Constituencies CACI International, Inc | December 10, 2010 18 Employees Shareholders Board of Directors CEO Clients Gov’t Oversight Contract Management SEC/DCAA/GAO Congress

  19. Going Forward Hard choices must be made as government, as companies, and as citizens How do we convert challenges into opportunities for growth? How do we combat the cyber threat to our nation? National strategies must be developed to address all of these issues Contract and acquisition managers will be the architects of the future relationship between industry and government You will help determine how risk is understood, shared, and managed You will help structure lasting business relationships You will be central in helping to incentivize innovation to develop solutions You will help build mutually beneficial partnerships CACI International, Inc | December 10, 2010 19

  20. Going Forward (cont’d) Never underestimate your role in moving us forward to meet the challenges we face!

More Related