The Perfect Fit

Without the status to win the set-aside contracts or the nationally recognizable name that comes with being a top 20 defense contractor, these companies are often left in a bit of a quandary. But that's changing. Many government organizations have embraced the values of the midtier integrator, which offers broad technology portfolios aided by strong specializations in particular advanced technologies that are critical to an agency's growth.

Obviously, the midtier has the same challenges as any other contractor: long sales cycles, procurement red tape and changes in project scope. In that respect, all providers are on the same playing field. But what does distinguish the midtier—as a general rule—is an aggregate of traits that agencies have found to be the recipe for a great partnership. Here are a few of those traits:

1. Agility: Midtier providers, as a rule, remain comfortably below a "threshold of bureaucracy" that afflicts many of the mega systems integrators. When an agency needs its provider to move into rapid ramp-up mode, the complexity of the mega systems integrator—many tiers of approvals, layers of management and the need for multiple sign-offs—can delay start times and bring progress to a halt. But the midtier, by and large, is not burdened with these large-company ills. As one example, Presidio was faced with the challenge of updating 65 Air National Guard bases with LAN infrastructures after 9/11. Execution was the key; we estimated it would take nine to 18 months to complete the job, but our client's response was "you have 90 days." What might otherwise have entailed extensive site surveys, design phases and reviews, and exhaustive Gantt charts was compressed into a matter of days, enabling us to bring all 65 of the sites up in 90 days. This can only be accomplished when the team has the full support of top management to accelerate processes.

2. Technology certifications: Agencies are also looking for proof that their contractors have raw engineering talent and experience, which often comes via the engineering certifications that the contractor is awarded from its equipment-vendor partners. Small businesses may not have the resources to earn these certifications, and large integrators that tend to emphasize services won't always have the wide area possessed by midtier players.

3. Total ownership: An integrator with a broad technology portfolio, along with supporting services such as leasing and financing, has a natural advantage; it can "own" an entire network-architecture upgrade project and take direct responsibility for its success—end to end. By reducing its reliance on smaller subcontractors, it also reduces the risks, such as performance shortfalls, budget overruns or blame-shifting. And the contracting agency benefits in other ways: The engineering team that installs the network infrastructure is more likely to be the same team that will support it as the agency's needs change over time.

When midtier integrators possess those three characteristics, an agency can be certain that it's dealing with a partner that makes its business the highest priority and can get the job done.

What are the challenges to the midtier integrator? The No. 1 concern is the recruiting and retention of skilled engineering personnel. With the growth of advanced technologies, that need is becoming even more acute. Those midtier integrators with the best capital funding are the best equipped. Why? Because strong capital funding allows them to launch and build an internal organization, keep tighter control over it than external agencies and reap the advantages as they reach the break-even point.

All in all, midtier integrators may have advantages that few of the largest integrators can claim. Now they need to manage their growth and maintain their competitive edge.

Eric Martinis is managing director of the federal region for Greenbelt, Md.-based Presidio Networked Solutions.