Vangent reported revenue from continuing operations of $214.8 million for the quarter ended July 3, 2010, an increase of $79.7 million or 59% compared to $135.1 million in the quarter ended June 27, 2009. The increase in total revenue from continuing operations reflects an $83.0 million or 72% increase in revenue from the Government Group. The increase is primarily attributable to $85.9 million in revenue from Vangent’s 2010 U.S. Census contract.
What have been your experiences working for Vangent? How have they managed this large contract? As this firm derived a major portion of their revenue from the 2010 Census, it’s important for us to look into their background. A search reveals that Chairman of the Board Robert B. McKeon has a shady past which is revealed in this Business Week article:
McKeon is the founder of Veritas Capital, a New York private-equity firm that invests in intelligence and defense contractors. Among the fund’s holdings: DynCorp International Inc. (DCP ) in Irving, Tex., whose name was tarnished in the late 1990s when some of its employees in Bosnia became embroiled in a sex trafficking scandal.
In the summer of 2005, another scandal-plagued military contractor caught McKeon’s eye. MZM Inc. was the focus of a federal investigation into whether its owner bribed California Representative Randy “Duke” Cunningham in exchange for hundreds of millions of dollars of government contracts providing technical and other support to intelligence agencies and the military. Sensing an opportunity, McKeon hired a former CIA general counsel to quiz Pentagon and intelligence officials about the viability of MZM’s business, which before the invasion of Iraq included helping with controversial analysis of Saddam Hussein’s nuclear capabilities. “We take on messy situations, and MZM was a mess,” says McKeon, whose top secret security clearance still doesn’t allow him to know all the details of what his companies do.
Not everyone is cheering. Critics argue that Athena’s apparent success rests on lucrative contracts landed under questionable circumstances. “Veritas is profiting from the spoils of congressional bribes,” says Keith Ashdown, vice-president of Taxpayers for Common Sense, in Washington.
What other skeletons are in the Vangent closet?