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SCHEV approves ODU/NSU Joint School of Public Health

The State Council of Higher for Virginia (SCHEV) has approved the (JSPH), offered by and , the schools announced on Thursday.

Council members approved the school at a Sept. 17 meeting, according to a SHEV spokesperson.

“We have a real opportunity to create and sustain transformational change in Virginia’s communities where, for too long, we have seen serious health inequities,” ODU President Brian O. Hemphill stated in a release. “The formation of the Joint School of , in partnership with Norfolk State University, will serve Hampton Roads well as we provide a growing pipeline of who are fully dedicated to building and maintaining healthy communities.”

The Joint School of Public Health (JSPH) is part of Macon & Joan Brock Virginia Health Sciences at ODU, an academic health sciences center. Classes will be held at NSU, ODU and Eastern Virginia Medical School at ODU.

NSU is only the second historically Black or university to offer a public health program.

“This is a unique partnership between our two institutions that in time will show the of regionalism … and how collaboration can be used to find solutions to improve wellness and health outcomes for everyone, especially in underserved communities,” NSU President  Javaune Adams-Gaston said in the release.

Diabetes and heart disease mortality rates across Hampton Roads are higher than other areas of Virginia, according to the Bon Secours 2023 Community Health Needs Assessment Implementation Plan. Officials leading the JSPH want to improve health equity for the region.

“The Joint School of Public Health is an opportunity for some of the best and the brightest students, faculty and staff in our region to come together to address our most pressing needs around public health and health equity in Hampton Roads,” Dr. Alfred Abuhamad, executive vice president of Macon & Joan Brock Virginia Health Sciences at ODU and dean of the Eastern Virginia Medical School at ODU, stated in a news release.

The JSPH will offer two departments: the Department of Epidemiology, Biostatistics and Environmental Health, and the Department of Health Behavior, and Management. Students can earn bachelor of science degrees in public health; public health with a major in health services administration; and environmental health. Master’s degrees in public health and health care administration and a doctorate in health services research will also be offered.

Next, the JSPH will seek accreditation from the Council on Education for Public Health, a national accreditation body that requires a site visit and curriculum review.

Siemens Energy agrees to pay $104M over Dominion bidding scheme

Siemens Energy pleaded guilty and agreed to pay $104 million this week to settle a federal criminal investigation into stealing in order to undercut competitors’ bids in 2019 to build a gas turbine “peaker” plant in the Richmond metropolitan area.

The settlement comes after three former Siemens employees and a former Dominion employee pleaded guilty to various charges, including conspiracy to convert secrets and conspiracy to commit wire fraud, as part of a scheme to help Siemens prevail over two competitors — General Electric and Mitsubishi Heavy Industries Ltd. — in winning the contract to build the plant, a deal valued upwards of $500 million. Peaker plants are backup facilities that provide extra electricity when there is a high grid load.

is scheduled to be sentenced on Dec. 5. Along with the financial penalty, the U.S.-based subsidiary of German global manufacturing conglomerate Siemens Energy AG has agreed to a three-year term of organizational probation, according to a U.S. announcement released Monday.

“Corporate accountability remains a top priority for the Department of Justice,” Jessica D. Aber, U.S. attorney for the Eastern District of Virginia, said in a statement. “The actions of these defendants undermined the integrity of the competitive marketplace, harming both competitors and consumers. The department has established whistleblower programs to encourage corporations and individuals to come forward with timely information regarding misconduct and criminal behavior. Failing to do so invites prosecution and serious consequences.”

Siemens Energy issued the following statement: “The agreement between Siemens Energy Inc. (SEI) and the U.S. Department of Justice () conclusively resolves a matter related to the misconduct of former employees which took place more than five years ago. The company proactively discovered the conduct in 2020 and voluntarily disclosed it to its customer and two affected competitors whose claims it subsequently settled.

“SEI also investigated the matter extensively with the assistance of a prominent law firm and has cooperated fully with the U.S. government investigation. It took disciplinary action against several individuals, including separation, and has further enhanced the company’s already-strong compliance program.

“SEI is committed to the highest standards of integrity and compliance and the aberrant conduct that occurred in this case does not reflect who we are as a company.”

According to the DOJ, GE and Mitsubishi submitted closed bids for the project to Dominion in May 2019, and a Siemens account manager, Michael P. Hillen, “coordinated with a Dominion insider,” Theodore S. “Ted” Fasca, then director of generation system planning, “who used his sensitive position to improperly obtain GE and MHI confidential information.”

Using private and work email accounts, Hillen “then disseminated the confidential information to Siemens Account Manager Mehran Sharifi, who analyzed the confidential information with other employees. Realizing that Siemens had a less competitive bid than GE by some metrics, Sharifi recommended to Siemens Executive Vice President and Head of Sales for North America John Gibson that Siemens resubmit a lowered bid to undercut GE’s bid price.”

Gibson passed along the other companies’ bid details to other Siemens senior executives, the DOJ said, and submitted a lower bid for the Dominion project, “undercutting GE’s bid” and winning the Dominion project. “Even after submitting the lowered bid, Siemens continued misappropriating GE and MHI confidential information on numerous occasions throughout June 2019,” according to the DOJ. Dominion was not accused of wrongdoing.

Gibson and Sharifi both pleaded guilty to conspiracy to convert trade secrets, with Gibson receiving a sentence of three years and seven months in prison. Sharifi faces a maximum sentence of 10 years in prison when he is sentenced Oct. 11. Hillen and Fasca both pleaded guilty to conspiracy to commit wire fraud and were sentenced to three years and one month in prison.

“The FBI will work to hold those accountable who steal confidential information to obtain a competitive advantage, whether they be agents, employees, executives, or corporations themselves,” said Stanley M. Meador, special agent in charge of the FBI’s Richmond Field Office.  “We will rigorously investigate those who criminally conspire to defraud companies for their personal gain.”

The was canceled in 2020, but Dominion has plans to build a similar combustion turbine plant in . Known as the Chesterfield Energy Reliability Center, the gas plant would be on the retired Chesterfield Power Station site northwest of Dutch Gap Conservation Center, Dominion announced in September, with General Electric having won the bid to manufacture its turbines.

The plant was intended to be built elsewhere in Chesterfield, but some residents opposed the project and fought county rezoning to allow the new plant to be built at the James River Industrial Park. In the new location, the plant is allowed at the former power station site under a 2010 conditional use permit, Chesterfield officials have said.

Sports betting brings in tax money, gambling helpline calls

RICHMOND, Va. — Football season has kicked off and stretches from September to February. The sport is forecasted to bring in $35 billion in legal bets this season, according to the American Association.

In Virginia it is one of the top types of wagers made, according to Virginia Lottery gaming updates. Sports betting started in Virginia in 2021. It generated almost $69 million in taxes in fiscal year 2023, according to a legislative report.

That revenue is stacking coffers in U.S. states for totals in the billions.

More people are sports betting now, and people in their early 20s are the fastest-growing group of gamblers, according to a 2023 report from the American Psychological Association, or APA. Nearly two-thirds of adolescents, ages 12 to 18, report having an experience with .

Experts worry early exposure to gambling could lead to gambling addiction, and could be linked to higher risks of mental distress, according to the APA.

U.S. Rep. Paul Tonko, D-New York, and Sen. Richard Blumenthal, D-Connecticut, recently introduced legislation to tackle problem gambling, known as the ‘‘SAFE Bet Act.”

The bill calls for a nationwide 12-month long survey to better provide data on the scope of “problem gambling and gambling-related harm experienced by individuals using online sports betting.”

Qualified researchers would collect the data, and the study would not be sponsored by the gambling industry.The findings would be made available to the public, according to the bill.

The bill also proposes a national self-exclusion , where individuals can restrict themselves from placing a sports wager with a sports wagering operator, and also a process for a person to add or remove themselves from the list.

Sports betting does not require a bettor to walk into a casino and there are no set hours of operation. Someone can place a bet from their couch, or on their phone at any time of the day. The ads are also not regulated, so people consume sports betting promotions on social media and TV.

The August numbers recently released by the Virginia Lottery show a 30.6% increase over the previous year. placed over $416 million in bets in August and won over $376 million.

Jaleel Patterson, a senior at , places bets a few times a week, and definitely on Sundays because “NFL season is here.”

He has turned a profit, but not enough to be a sustainable income. Sports betting can be entertaining with friends who enjoy the competition, he said.

“If your favorite team is playing their favorite team, you will gamble and say ‘oh, my team is gonna beat your team,’” Patterson said. “Between friends, I feel like that makes it more fun compared to just doing it on your own.”

It is important for a bettor to determine what they want to spend, and even the amount of time they will spend on the apps, he said.

“Only play with what you are willing to lose,” Patterson said.

Brendan Dwyer is the director of research at the Center for Sport at Virginia Commonwealth .

“[Sports betting] is a potentially fun activity if done responsibly,” Dwyer said.

He expects the amount of wagered on sports across the U.S. will eventually slow down, but not in the immediate future.

“I don’t think we’ve completely penetrated the market,” Dwyer said. “I think we are still having new sports fans feel comfortable sports betting.”

Males under age 25 are most likely to become problem bettors, including betting money they don’t have or behaving irresponsibly, according to Dwyer.

“I don’t think that’s unique to sports betting,” Dwyer said. “It’s something you see with alcohol consumption, drug use, and anything that involves regulating your behavior. Sports betting is an extra activity that fuels that misbehavior.”

Sports betting isn’t any more emotional than gambling in a casino, Dwyer said. But when a bettor has a specific attachment to a sports team, it can be more emotional.

“If you don’t bet and you watch a football game, you’re going to be emotional about your favorite football team playing,” Dwyer said.”Sports in general is just more emotional.”

Carolyn Hawley is a professor and president of the Virginia Council on Problem Gambling, which operates a helpline. She is also a past member of the Board of Directors of the National Council on Problem Gambling.

The helpline received 967 intakes from January through June 2024, according to its August newsletter. That surpasses the total number of intakes last year, which was 898.

The state helpline has seen a shift in the age of callers, which used to be older individuals who had gambled for years before developing a problem, Hawley said in a previous Capital News Service interview.

Signs of problem gambling can be when it has a certain priority throughout a person’s daily life, according to Hawley.

“Are you spending a lot of time thinking about gambling and planning your next gambling activity?” Hawley said. “Are you spending more time gambling than you would with other activities that you used to enjoy? Do you need more and more to get that same level of excitement?”

Anyone who thinks they have a gambling problem can contact the confidential and toll-free helpline at 1-888-532-3500 or visit the website: https://vcpg.net/.

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.

Virginia Natural Gas taps new CEO

Shannon O. Pierce will succeed Robert Duvall as of Virginia when Duvall retires in April, according to an announcement by , parent company of the utility.

A native of Surry, Pierce stepped into the roles of VNG president and senior vice president of Southern Company Gas, VNG’s parent company, on Sept. 28. A year ago, Pierce was named vice president of strategy and chief administrative officer for VNG, which delivers natural gas service to more than 310,000 customers in southeastern Virginia.

Robert Duvall will retire as CEO of Virginia Natural Gas in April.
will retire as CEO of in April.

“We are incredibly grateful for Robert’s and significant contributions to our company, customers and communities over decades of service,” Southern Company Gas Chairman, President and CEO Jim Kerr stated in a release. “Shannon brings extensive and unique leadership experiences into her new roles, which align with the company’s values and will help to build on Robert’s legacy of success.”

Duvall has led VNG twice. He served as the utility’s president from 2014 to 2016 before returning to Virginia Beach in 2020 to lead the utility through the pandemic. In between, Duvall worked as senior vice president of customer operations, safety and technical training for Southern Company Gas.

Duvall began his career in 1984 as a distribution engineer at Atlanta Gas Light, also a subsidiary of Southern Company Gas.

Pierce started out as a lawyer for McGuireWoods in Richmond and joined Southern Gas in 2004. Previously, she served as vice president of growth and chief external affairs officer at SouthStar Services, another Southern Company Gas subsidiary. She earned her undergraduate and law degrees from the .

Va. universities take ‘heavy hand’ with protest policies, advocate says

RICHMOND, Va. — Students, lawmakers and free-speech activists question if updated policies that regulate student demonstrations violate First Amendment rights.

After campus protests that led to some clashes with police, institutions such as , , and Virginia Tech adopted similar policies.

The new rules ban encampments, require masked individuals to show identification if asked, limit where students can hold events and implement stricter rules on chalking, a popular form of peaceful protest.

students across Virginia have protested in response to the Israel-Hamas war, through marches and gatherings in solidarity with Palestine. The movement peaked before the end of spring semester, when Virginia students erected encampments on campuses that led to police response and 125 arrests, according to the Virginia Mercury.

Demonstrations erupted around the world after the Oct. 7 Hamas terrorist attack on Israel that killed approximately 1,200 people, according to the Associated Press. About 250 hostages were seized in the attack.

A war ensued in the region that has led to the death of at least 41,000 Palestinians, as of October.

State Attorney General Jason Miyares denounced student demonstrations last November, and stated Jewish students felt unsafe and threatened by certain chants and slogans that called for a free Palestine. Miyares concluded some of the speech is antisemitic and might not be protected by the First Amendment, because it could incite “imminent lawless action.”

Miyares recommended Virginia colleges implement changes to foster safer campuses and avoid disruptions of the educational environment, according to communications director Shaun Kenney.

State Secretary of Education Aimee Guidera in August urged governing board members of Virginia to update their codes of conduct, according to an email statement.

“Considering the challenges faced on college and university campuses last academic year and reports that the fall will be even more chaotic, we have asked each institution take proactive steps to update policies,” Guidera stated.

The Students for Justice in Palestine has chapters across Virginia that organize campus demonstrations.

State , in multiple statements and most recently at a legislative hearing, highlight the SJP as a source of antisemitism and disruption on campuses.

Last academic year, an anti-abortion campus event at also ended in disruption, when abortion-rights protesters interrupted a meeting because they did not want people “spewing hate on our campus,” according to the Commonwealth Times.

Student protestors at Virginia Commonwealth encampments on April 30. Photo by Summer DeCiucis, Capital News Service
Student protestors at Virginia Commonwealth encampments on April 30. Photo by Summer DeCiucis, Capital News Service

The new policies will impact how and where student organizations meet moving forward.

Sereen Haddad is a Palestinian student and organizer for the SJP chapter at VCU since October 2023. Haddad has regularly helped host peaceful protests in support of Palestine.

Haddad is concerned the policies intended to protect free speech, actually infringe on free speech rights. The new policies limit outlets for peaceful protests, she said. Students can only display posters the size of a letter-size piece of paper and assemble in designated areas.

“It’s very clear that quite frankly all these policies that are being put in place are no way promoting safety, instead they do promote fear and they promote silence,” Haddad said.

The 25-year-old Foundation for Individual Rights and Expression is a nonpartisan and nonprofit organization that defends free speech.

FIRE rates and tracks the policies that regulate student expression at almost 500 colleges and universities. It works to ensure students are able to lawfully protest, and reaches out to universities whose policies violate the First Amendment.

Laura Beltz, director of policy reform at FIRE, has seen the impact of increased policies regarding student demonstrations.

“We’ve seen a lot of policy changes happening this academic year,” Beltz said. “An unprecedented number of new restrictions on the way students can get out and express themselves on campus.”

No Virginia universities are in direct violation of the First Amendment, yet these institutions have taken a heavy hand through new restrictive policies, according to Beltz.

“I’m concerned that students will see these new regulations when they come back to campus and the message they will receive is that it’s either too onerous to get out and express themselves or that there’s really no reasonable opportunity to do so,” Beltz said.

FIRE ranked UVA. No. 1 in advertised commitments to free expression, on a last updated in November 2023. The annual list is set to be updated this fall, and will take into consideration the actions of universities over the past academic year.

The Senate Education and Health Committee met Sept. 17 to hear directly from those who were involved in student-led actions, as well as eyewitnesses, and to learn about the new policies.

Numerous speakers from Virginia colleges offered testimony at the two-hour long hearing, including teachers and students arrested in the spring. Jewish students and people affiliated with universities offered perspectives that the demonstrations were important to address injustice. Representatives also said certain SJP chants are offensive.

Committee chair Sen. Ghazala Hashmi, D-Chesterfield, a former college professor, encouraged universities to think about uniform policies to approach student activism and faculty rights when it comes to protest.

Sen. Schuyler VanValkenburg, D-Henrico, teaches high school government classes. He questioned if the Senate should be doing anything legislatively concerning college policies.

Colleges have two conflicting responsibilities: to uphold free speech and to uphold anti-discrimination, according to VanValkenburg. Colleges need to make sure all kids have a voice and are safe, he said.

“At the end of the day this comes down to clear boundaries, clear rules, clarity and objective standards that are followed, no matter what,” VanValkenburg said. “I might like some of those rules, I might not like some of those rules, but they’re the rules.”

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.

Three Va. CEOs make world’s most powerful women list

Three Virginia CEOs made ‘s 2024 list of the world’s 100 Most Powerful in business, which the media company released Wednesday.

Kathy J. Warden, chair, president and of -based Fortune 500 Northrop Grumman ranked highest among the trio of Virginia , taking the No. 25 spot — a drop from 2023 when she ranked as No. 20.

In January, Warden became chair of the Greater Washington Partnership. She also serves on Merck’s board and is board chair of global nonprofit Catalyst.

Northrop Grumman reported $39.3 billion in sales in 2023, an increase of 7% from the previous year. The company employs more than 100,000 workers, including 6,800 in Virginia.

Phebe N. Novakovic, chairman and CEO of -based Fortune 500 defense contractor , immediately followed Warden on the list, ranking No. 26. Novakovic also trailed Warden by one spot on the list last year, when she was ranked No. 21.

General Dynamics Corp. Chairman and CEO Phebe N. Novakovic.

A graduate of Smith College and the Wharton School at the of Pennsylvania, Novakovic has led the world’s sixth largest aerospace and defense company since 2013. General Dynamics employs more than 100,000 people and recorded $42.3 billion in revenue for fiscal 2023, a 7.3% increase from 2022.

Before joining General Dynamics in 2001, Novakovic worked for the CIA, the federal Office of Management and Budget, and under two deputy defense secretaries.

Toni Townes-Whitley, who took the reins at Reston federal contractor Science Applications International Co. (SAIC) a year ago, made the Fortune list for the first time this year, debuting at No. 95. One of only two Black female Fortune 500 CEOs, Townes-Whitley previously served as president of Microsoft’s U.S.-regulated industries, president of CGI Federal and held management roles at Unisys. SAIC has 24,000 employees and reported revenue of $7.7 billion in FY 2023.

Toni Townes-Whitley, CEO of SAIC.

Internationally, General Motors CEO Mary Barra topped this year’s list, followed by CVS Health CEO Karen Lynch. Accenture Chair and CEO Julie Sweet, who has worked in the past from the international professional services company’s Arlington County office, was ranked No. 4, after Citigroup CEO Jane Fraser.

Compiled by Fortune’s editors, the list is based on the female leaders’ company size and health, career path, influence beyond their organization and how they wield . The ranking, global in scope for the second year in a row, has 12 leaders from East Asia, eight apiece from France and the U.K., three each from Australia and Singapore, and two apiece from Spain, Brazil, and Germany.

“Since its inception, the Most Powerful Women in business list has served as a powerful reminder of the tremendous impact women leaders continue to have in shaping business today,” Alyson Shontell, Fortune’s editor-in-chief and chief content officer, stated in a release. “They are not just adapting to change; they are driving meaningful transformation.”

This article has been corrected since publication. 

Afton Scientific announces $200M Albemarle expansion

Afton Scientific, a manufacturer of sterile injectable pharmaceuticals, plans to invest over $200 million to expand its manufacturing facility in , Gov. Glenn Youngkin announced Wednesday.

The is projected to create more than 200 jobs.

Founded by Thomas Thorpe in Charlottesville in 1991, Afton Scientific is a contract development and manufacturing organization (CMDO), providing comprehensive services including drug development and manufacturing. At its facility at Avon Court, Afton Scientific offers a range of services including sterile manufacturing, packaging and labeling, analytical and micro lab and support services.

“This announcement represents an exciting advancement in providing critical, life-saving therapies to more Americans, and Afton Scientific is thrilled about our expansion in Central Virginia, where we’ve grown the company since day one,” Thorpe, CEO of Afton Scientific, stated in the announcement.

In January, , a Washington, D.C.-area private investment firm that specializes in government regulated industries and works to close gaps in sectors like , announced it had made a majority investment in Afton Scientific.

“Companies like Afton are mission critical to the safety and well-being of America, and their importance is only going to increase as we continue to onshore and reinforce our pharmaceutical supply chain,” Malcolm Little, a partner at Arlington Capital Partners, said in a statement. “Ensuring systemically important domestic manufacturing is well-optimized has always been a focus of ours and since partnering with Afton nearly a year ago, we have worked hand-in-hand with Thomas, his strong management team and Gov. Youngkin to help meet the ever-increasing demand for its aseptic CDMO services.”

The expansion will allow Afton Scientific to implement new manufacturing technologies and increase manufacturing capacity.

Virginia competed with “several” states for the project, according to Youngkin’s office. The Virginia Partnership worked with Albemarle County and the Central Virginia Partnership to secure the expansion for the commonwealth.

Youngkin approved a grant from the Commonwealth’s Opportunity Fund to assist Albemarle County with the project. Additionally, Afton Scientific will receive support through the Virginia Talent Accelerator Program, a VEDP service provided in collaboration with the Virginia Community System and other partners. Launched in 2019, the program provides direct delivery of recruitment and training services at no cost to companies.

Afton Scientific is a current participant – and a 2012 graduate – of the Virginia in Export Program, which provides assistance to Virginia exporters.

For Government Contracting Companies, AI Can Be a Gift That Keeps on Giving

Report highlights how AI can benefit a business, offers best practices for a successful AI journey

By Kim Koster

Government contractors make their living working for, and being held accountable to, the U.S. government and by extension, the American public. That means they have to deal with a uniquely challenging set of risks. And that likely explains why they’re approaching artificial intelligence more cautiously than other industries.

In the 2024 GAUGE Report, a comprehensive annual benchmarking analysis for the government contracting (GovCon) industry (available for free download here), we found a cautious uptake of AI among the 1,200 contributors. In the report (which I co-authored with CohnReznick’s Christine Williamson), about one-third of contributors indicated their companies are currently using AI in its various forms. That’s a significantly lower adoption rate than we’ve seen with other industries. In a separate 2024 Unanet benchmarking report covering the architecture, engineering and construction industries, more than half the companies we surveyed indicated they currently use AI.

As much as taking a conservative approach to AI makes sense in light of the security, ethical, compliance and other risks it presents, there’s another AI-related risk that GovCon companies must account for: the risk of being too cautious in integrating it into their business. Not only do overly conservative companies stand to miss out on the significant the technology can create inside their business, that reticence could ultimately put them at a decided competitive disadvantage.

It’s a fine line to walk, but one they must walk nonetheless because, as we wrote in the 2024 GAUGE Report, “From enhancing strategic forecasting and planning, automating tedious administrative tasks, detecting operational issues and analyzing data trends, AI offers many powerful capabilities that growth-minded GovCon businesses can no longer afford to ignore.”

Business development is one area where AI can really move the needle for government contractors. In the 2024 GAUGE Report (see the two graphics below), more than half the executives we surveyed indicated their companies either currently use or plan to use AI in business development/marketing. They identified content generation as an area within business development where AI can have a significant impact.

Amid fierce competition for government contracts, 57% of GAUGE contributors said finding new revenue sources is their company’s most significant financial challenge. Meanwhile, roughly 60% of GovCons indicated they’re winning less than 50% of the proposals they submit, and close to two-thirds saw no improvement in win rate year-over-year.

AI can help change all that. With AI-driven analytics to evaluate and prioritize new business opportunities, companies can comb the digital landscape to uncover new business opportunities, then target projects and clients that align with their strategic priorities. AI algorithms also can predict the probability of success for projects, helping decision-makers prioritize their new business pursuits.

Meanwhile, AI-powered content-generation tools can help firms improve and refine the proposals they submit, which translates into more winning bids. For example, AI can assist a proposal team in interpreting complex contract language and developing optimal pricing strategies for a . It also can automate content-collection so companies can generate proposals faster, with greater accuracy, boosting proposal-generation capacity and overall proposal quality without increasing headcount.

Project management is another area where AI is proving its versatility and value.  Predictive analytics can help companies anticipate shortages, identify skills deficits, and make assignments across projects and tasks,  optimizing utilization. AI also can examine past trends and project data to help companies bring more fidelity into the budget. It enables a company to create more reliable estimates for on-time delivery at the anticipated cost. These insights enable project managers to quickly course-correct when needed, which can translate into better project outcomes, stronger client relationships and more repeat business.  With natural language processing, project managers can get key information from emails, contracts, and reports delivered to them in seconds, supporting timelier, better-informed decision-making.

While relatively few GovCon companies are using AI in their finance & accounting operations, our GAUGE findings suggest there are benefits to doing so. For example, companies that use AI are much less likely to have invoice cycles longer than 15 days relative to companies that don’t use AI. That’s particularly important for smaller companies, which depend more on consistent cash flow. What’s more, intelligent AR (accounts receivable) and AP (accounts payable) automation tools show great promise for taking manual work off peoples’ plates, and helping companies get paid more efficiently, securely, and accurately.

AI can be a difference-maker in another critical area for government contracting companies: compliance. Close to 40% of companies are either considering how to use AI or are already using AI to support greater efficiency in meeting the growing regulatory responsibilities they face. AI models can be trained to interpret regulatory language, and to detect and alert companies to data disparities across systems and reports.

Use cases such as these barely scratch the surface of what AI can do for a government contracting business. But harnessing that takes preparation on the front end. Based on what we learned from the government contracting executives we surveyed for the GAUGE Report and from our own first-hand experience implementing AI, it’s a journey that will succeed with careful planning, commitment and follow-through, as detailed in the steps below:

While every company’s AI journey is unique, we’ve gathered enough experience to be able to map how that journey will likely unfold for a government contracting firm. The graphic below, representing our AI Maturity Model, depicts this evolutionary arc:

 

Having laid the groundwork for AI, the fun part is seeing how it performs in an actual pilot use case. With these pilots, it’s important to start small with a narrow proof-of-concept. Rather than gravitating to the shiniest new AI toy and trying to find a use for it, identify use cases that project to provide real value and ROI to your business, then identify AI tools that you think will work best in those use cases. Set up controlled experiments to test your AI software in a lower-stakes environment, with the goal of capturing quick wins, and with the knowledge that some of these experiments may not pan out. Create well-defined goals and KPIs for your AI pilot projects (time savings, quality improvements, etc.) and closely track performance, while also gathering and analyzing user feedback and documenting outcomes and best practices.

Ultimately, AI, like any technology, must demonstrate its value to your business. As we conclude in the 2024 GAUGE Report, “It’s clear from the research that firms with the scale to maintain data hygiene, integrate their systems, and invest in the right tools are reaping the many benefits of AI. And although risks — regulatory, ethical, cybersecurity — are very real, they are also the reward.”

Kim Koster is vice president of product marketing at Unanet, a Northern Virginia-based software company that provides enterprise resource planning and customer relationship management solutions for organizations in the government contracting, architecture, engineering, construction and professional services markets. https://unanet.com/

 

As dockworkers strike continues, experts weigh potential supply chain impacts

The situation remains at a stalemate following the first day of a historic strike by the International Longshoremen’s Association (ILA) at from Maine to Texas.

Thousands of ILA members joined the picket line as a midnight deadline passed Monday evening — with no deal reached between ILA and the United States Maritime Alliance (USMX), which represents the ports. The is calling for a significant wage increase as well as assurances on automation at the port.

ILA President Harold Daggett joined members on the picket lines at Maher Terminal in Port Elizabeth and APM Terminals and Port Newark Contain Terminal Tuesday. The union says it intends for demonstrations to continue round-the-clock for as long as it takes for USMX to meet its demands for rank-and-file members.

“We are now demanding $5 an hour increase in wages for each of the six years of a new ILA-USMX Master Contract,” said Daggett. “Plus, we want absolute airtight language that there will be no automation or semi-automation, and we are demanding all Container Royalty monies go to the ILA.”

Opposing sides

Thousands of members joined in solidarity on picket lines at all the major ports on the Atlantic and Gulf Coasts. In a show of international solidarity, Bobby Olvera Jr., president, International Longshore and Warehouse Union, appeared with with Daggett and ILA Executive Vice President Dennis Daggett when the commenced overnight.

“When we fight, we win,” said Olvera. “Brother and Sisters, on behalf of all the members of the ILWU, from Alaska to San Diego, British Columbia, and most definitely from the Islands of Hawaii, the ILWU stand with ILA. We are family – WE ARE ONE!”

Meanwhile, USMX stood by its most recent offer and expressed a desire to continue bargaining.

“USMX is proud of the wages and benefits we offer to our 25,000 ILA employees, and strongly supports a collective bargaining process that allows us to fully bargain wages, benefits, technology, and ensures the safety of our workers, day-in and day-out,” USMX said in a statement updating the status of the negotiations on Oct. 1. “We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike. Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy.”

“We look forward to hearing from the Union about how we can return to the table and actually bargain – which is the only way to reach a resolution,” USMX closed its statement.

The state, region and country are bracing for the fallout, which would intensify as it drags on. As NJBIZ reported Tuesday, officials have prepared in anticipation of the shutdown.

Supply chain concerns

NJBIZ heard from sector and subject experts about the different ramifications and how they are adjusting to the disruption.

“We are in constant contact with our customers. As you would expect, many are still in the planning stages,” said Carter Andrus, chief operating officer, Prologis, a leader in real estate, with facilities in New Jersey, New York, Savannah, Baltimore, and Florida. “We saw a rush to get as much product out of the port by Sept. 30, and we are working with customers to provide some overflow parking and storage areas to temporarily store inventory. Other customers are evaluating different options and will consider adjusting operations pending how the situation evolves.”

“This strike, which affects 36 ports and is the first by the union since 1977, threatens to disrupt the nation’s supply chain, potentially raising prices on various goods like food, toys and cars,” Robert Dowler, president, and Benjamin Lowe, immediate past president, said in a statement on behalf of The Association of Supply Chain Management Greater North Jersey Chapter. “The impact of the strike could be significant, potentially costing the economy up to $5 billion per day and causing delays in essential goods, especially as the holiday shopping season approaches.

The organization noted that the strike could also affect international and more.

“While some operations, like cruise ships and the transportation of certain fuels and essential goods, are expected to continue, the strike could lead to delays in shipments of items such as cars, fruits, and holiday merchandise, exacerbating supply chain pressures,” the statement closed.

Making plans

Kristin Pothier, KPMG US sector leader, Life Sciences, said that when it comes to the industry, there are two points to consider.

“There is always a knee jerk reaction to say that any strike at a port will affect all aspects of every industry and could be very serious in life sciences especially for therapeutics,” said Pothier, before introducing the topics. “Pharma is not an industry that is heavily reliant on shipping ports. The strike is not a surprise and has been on the horizon for a couple of years. Many companies have already done the work to reroute and build stock in whatever mitigation tactic is necessary.”

She said that the pharmaceutical companies and distributors have extensive risk planning teams that kick alternative plans into gear for situations like this.

“There may be periphery items (gowns, gloves, masks etc.) that could potentially impact the sector which ultimately may impact the overall Pharma/Life Sciences industry,” she added.

Ash Shehata, KPMG US sector leader, Healthcare, said that since the pandemic the health care industry has been preparing for supply disruptions and conducting ongoing reviews of supply chain resiliency between distributors and health systems.

“Many of these systems were put in place during the COVID-19 pandemic. Healthcare volumes are up post-pandemic so there is little room for error,” said Shehata. “These supply disruptions will drive more visibility of the existing issues in critical major hubs like NYC, the west coast, and other major metro areas. Additionally, health systems have already experienced high medical cost inflation – second to inflation driving reduced margins. Supply shortages will worsen this margin impact. Supply chain disruptions could eventually impact staff and patients adversely in an already fragile environment.”

This story was originally published in NJBIZ, a BridgeTower Media publication.

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These six Va. billionaires made Forbes’ 2024 richest Americans list

Six Virginia billionaires are among the 400 Americans, according to Forbes’ annual ranking, which the media company released Tuesday.

To make the list, U.S. citizens had to have a minimum net worth of $3.3 billion — an increase of $400 million over 2023’s list.

Collectively, the members of this elite club are worth a whopping record $5.4 trillion, a nearly $1 trillion increase over 2023. A dozen individuals who made the list are worth more than $100 billion.

The top-ranking Virginian on this year’s list is heiress Jacqueline Mars, one of the family owners behind Virginia’s largest privately owned company, McLean-based candy and pet care empire Mars, which was started by her grandfather, Frank C. . With a net worth of $47.6 billion, , who lives in in Fauquier County, ranked No. 19 on the Forbes list. She owns an estimated third of the family business, where she worked for nearly two decades and served on its board until 2016.

Her niece, Pamela Mars, who lives in Alexandria, ranked as the 77th richest American, with a net worth of $11.9 billion. Pamela Mars started working at the family business in 1986 and currently serves as the family’s ambassador to the Mars pet care division.

Drop down to No. 283 on the Forbes list and you’ll find the third-ranking Virginian: Winifred J. Marquart of , with a net worth of $4.7 billion. The great-great-granddaughter of S.C. Johnson & Son founder Samuel Curtis Johnson Sr., Marquart is president of the , which funds programs that help the environment, promote equality and support and youth.

The fourth wealthiest Virginian on the Forbes rankings is Carlyle Group co-founder Daniel D’Aniello, who came in at No. 319 with a net worth of $4.3 billion. Since stepping down as chairman of Carlyle in 2018, D’Aniello, who lives in Vienna, retains the title of chairman emeritus of the global private equity firm where Virginia was CEO. A Vietnam War veteran, D’Aniello worked at Trans World Airlines, Pepsi and Marriott before co-launching Carlyle in 1987.

Bitcoin billionaire Michael Saylor, whom Forbes lists as living in the town of Vienna in Fairfax County but has said in court filings that he lives in Florida, ranked at No. 338 on the list, with a net worth of $3.9 billion. Saylor is founder and chairman of -based tech company MicroStrategy, which is widely reported to be the world’s largest corporate bitcoin holder.

Carlyle Group co-founder and former co-CEO William Conway Jr., who lives in McLean, is the 347th richest American and the sixth richest Virginian, with a net worth of $3.8 billion, according to Forbes. Conway was also a past chief financial officer of MCI Communications, the now-defuct telecom company.

Nationally, Tesla CEO Elon Musk topped the list of the 400 wealthiest Americans for the third straight year, with a net worth of $244 billion. Amazon founder Jeff Bezos ranked No. 2, with $197 billion. And after not making the cut in 2023, former President Donald Trump ranked at No. 319 this year, with a net worth of $4.3 billion.

“The Forbes 400 is richer than ever, and it’s harder than ever to be one of the 400 richest people in America,” Chase Peterson-Withorn, senior editor at Forbes, stated in an announcement.