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ExecutiveBiz: Tell us about your company, number of employees, and revenues.
Dr. Long Nguyen: We have five niches. We do Software Engineering, System Engineering, Information Assurance, Program Management and Planning, and Network Operations and Management. We have over 300 people and our revenues are at $60 million a year.
ExecutiveBiz: Your company is no longer considered a small business by the SBA. How does your company compete against the large companies like Lockheed and SRA?
Dr. Long Nguyen: We have been doing that for the last three or four years. We do not have enough breadth to compete with them everywhere, so we pick our battles carefully and do very well in competing for opportunities with clients that have experience working with our company. For example, at Federal Deposit Insurance Corporation (FDIC), we competed against many of the largest and we are one of the 4 awardees to support Software Development of FDIC's financial systems.
ExecutiveBiz: What is the profile of the company you are looking to acquire?
Dr. Long Nguyen: We never say never, so we look at acquisition targets on a case by case basis. Together with that, we have guidelines for potential acquisitions. If it's an IT company, we are looking at the size- $20 million to $30 million company. If the company has a strong presence in the intelligence world, that would be a plus. We would also be interested in a company's strong presence at places where we have no work. For example, we have never worked for NASA. We are not working for HHS. So any companies that have strong presence in places that we are not at, we want to talk to them.
ExecutiveBiz: What are some of the hottest trends you are following in the government contracting space?
Dr. Long Nguyen: We are looking at where the IT budget is . Our process has always been that we want to have a larger base of customers, too. So over the years, we have worked for seventy different agencies. We are evenly distributed between DoD and non-DoD agencies. Most of our Defense customers are in the Defense Information Systems Agency (DISA) and the Army. While most of our civilian customers are with the Department of Homeland Security (DHS). That is the trend we have been following for a year or two.
ExecutiveBiz: What advice would you give a CEO entering the government contracting space?
Dr. Long Nguyen: Several years ago we invested in our Software Engineering qualifications and capabilities. We started with CMM Level 2 certification. Next, we went on to CMM Level 3. Then, we fully transitioned to CMMI Level 3. By the end of this year, we should be at Levels 4 and 5. Advice I would give to companies that are focused on the Information Technology industry, especially Software Engineering, is that they should get the certification for CMMI. Many customers require that. And small companies should go after prime contracts themselves by putting together winning teams, in order to control their own destiny. Pragmatics has 20 prime contracting vehicles.
ExecutiveBiz: What will the company look like in 3 years?
Dr. Long Nguyen: In three years, we should be between $100 and $150 million per year. We should be ready to go for an IPO.
ExecutiveBiz: Why do you want to go IPO?
Dr. Long Nguyen: As I mentioned, we get more value for our shareholders. Second reason is we want to grow bigger. With more funding, we can acquire more companies. With a larger critical mass, we can compete with the big companies better.
ExecutiveBiz: What company do you look at for a model that is publicly traded?
Dr. Long Nguyen: If you look at SRA, they have done well. That is one model that we are following. Another one is NCI, who just went public a few months ago. We have followed those companies closely to see things they do right and what mistakes they made to avoid them. We have been talking to investment banks, which have extensive experience with IPO's, so that we lay out a road map for our own IPO.
ExecutiveBiz: How did you overcome the obstacles when starting your business?
Dr. Long Nguyen: When I started the company, my background was mostly academic. I didn't come from a government agency, so I didn't have a network of government people to rely on. I didn't come from a big company like SAIC or CSC, so I didn't have a network of those professional people that I could rely on. Like I mentioned, my background was mainly academic. The way to overcome that is that you need to work very hard, go out and talk to people, and persevere. Never give up.
ExecutiveBiz: What is something most people don't know about you?
Dr. Long Nguyen: I always remember my humble background and try not to be arrogant. I try to be humble and give back to the community.
ExecutiveBiz: What is something most people don't know about Pragmatics?
Dr. Long Nguyen: We like to think that we not only do good work for our customers, but we are consistent about our responsibility for our community, too. After 9/11, we established a Pragmatics Relief Fund for the Pentagon victims. Right after Katrina, we established the Pragmatics Relief Fund for the Katrina victims. Last year, we supported our wounded veterans from Iraq and Afghanistan by organizing a dinner with entertainment from the USO, Air Force Band, and providing gifts and information for job seekers.
For more information about Dr. Long Nguyen and Pragmatics, visit the Pragmatics web site at www.pragmatics.com.
Interview with Dr. Long Nguyen conducted by JD Kathuria.
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