Nazzic S. Keene, CEO of Science Applications International Corp. (SAIC), will retire in October, the Reston-based Fortune 500 contractor announced Thursday. She will be succeeded by former Microsoft Corp. executive Toni Townes-Whitley, also formerly president of CGI Federal.
Townes-Whitley will become CEO-elect on June 12, taking the helm of a company exceeding $7 billion in annual revenue, with more than 26,000 employees. She will also replace Keene on SAIC’s board. Keene will remain CEO until Oct. 1, and then will stay on as a special adviser to Townes-Whitley and SAIC through Feb. 2, 2024.
Townes-Whitley, a 35-year global technology veteran, most recently served as president of U.S. Regulated Industries at Microsoft, where she led the company’s U.S. sales strategy to drive digital transformation within the public sector and regulated commercial industries. Before she joined Microsoft, she led CGI Federal and held management roles at Unisys Corp.
Townes-Whitley serves on boards including Nasdaq, Johns Hopkins Medicine, Thurgood Marshall Fund, Partnership for Public Service, and the Princeton University Faith & Work Initiative. She earned her bachelor’s degree in public policy and economics from Princeton University’s School of Public and International Affairs and certifications from Wharton Executive Education, New York University and the Performance Management Institute.
Nazzic Keene, SAIC’s CEO.
“We thank Nazzic for her tremendous contributions and dedication to SAIC, which resulted in greater opportunities for our employees, improved outcomes for our customers and increased value for our shareholders,” SAIC Board Chair Donna Morea said in a statement. “The board’s selection of her successor is the result of a thorough and thoughtful CEO succession planning process to identify the right leader to accelerate the momentum built over the four years of Nazzic’s leadership. Toni is an innovative and collaborative leader whose success in digital transformation and leading-edge technology integration makes her our clear choice to lead SAIC’s next chapter.”
Keene, who had previously been an executive at CGI Inc., joined SAIC in 2012 as senior vice president for corporate strategy and planning and became chief operating officer in 2017. She became CEO and was elected to SAIC’s board of directors in 2019. Keene serves on the board of directors for the Federal Reserve Bank of Richmond and is on ADP’s board of directors as well as Inova Health System’s board of trustees. She previously served on the boards of Wolf Trap and Capital Partners for Education, and she was an executive committee member of the Leukemia and Lymphoma Society, National Capital Region.
During Keene’s tenure as CEO, SAIC acquired Unisys Federal for $1.2 billion in 2020, adding 2,000 employees to SAIC and bringing the company’s cloud migration and other services to the company. This April, SAIC won an $889 million defense contract to develop and implement an information technology solution for the Defense Counterintelligence and Security Agency’s system. And in May, SAIC closed the sale of its logistics and supply chain management business to ASRC Federal Holding Company LLC for $350 million.
“I have known, respected and admired Toni for years and am thrilled to welcome her to our SAIC family,” Keene said in a statement. “I am proud of all we have accomplished for our customers and colleagues during my tenure at SAIC, and I am excited to work alongside Toni in the coming months to ensure we don’t miss a beat in driving sustained growth and performance.”
A 70-unit apartment community in Richmond‘s Manchester neighborhood sold for $14.8 million May 12.
Putnam Mill LLC, an entity connected to First Priority Management of Washington, D.C., purchased The Mill at Manchester Lofts, a former paper mill and warehouse that now consists of studio, one-, two-, and three-bedroom loft style apartments at 815 Perry St. as an investment. The seller was Fulton Street Partners, a Raleigh, North Carolina-based multifamily investment firm.
The apartments were 95% leased at the time of the sale. According to the community website, the property is managed by BH Management Services LLC, with rentals starting at $1,005.
Jenny Stoner and John Pritzlaff, of Cushman & Wakefield | Thalhimer, represented the purchaser in the sale. Putnam Mill will complete an interior and overall renovation after closing.
Peter Blake, the long-time director of the State Council of Higher Education for Virginia (SCHEV), will step down by the end of the year, SCHEV announced Thursday.
Blake has been director of SCHEV since 2012. The state higher education agency makes policy recommendations and approves new degree programs and schools within universities. During Blake’s tenure, SCHEV has produced two statewide strategic plans for higher education, as well as creating an internship program with the Virginia Chamber of Commerce Foundation and developing the Pathways to Opportunity Plan to increase access to higher education. According to Thursday’s announcement, Blake plans to take some time off before making any future plans.
“Few careers allow one to work on important issues with smart, capable and committed people on important issues,” Blake said in a statement. “Higher education does indeed change lives, and I am grateful to have had the opportunity to help make Virginia one of the best states for education.”
Blake was previously a SCHEV research analyst and also served as the state’s secretary of education from 2005 to 2006. He was vice chancellor of the Virginia Community College System from 2006 to 2012. He is a graduate of Virginia Commonwealth University and the University of Virginia Darden School of Business’ executive program.
“On behalf of the dozens of Virginians who have served on the council over the past 12 years, we are grateful to Peter for his leadership and for building a capable and dedicated staff to carry out the mission,” SCHEV Council Vice Chair Katharine Webb said in a statement. “Peter is admired across the state for being an honest broker in an enterprise with many stakeholders. As we go forward with a search for a new leader, each council member shares a common bond and commitment to the commonwealth’s excellent system of higher education.”
Ken Ampy, SCHEV Council chair and Astyra Corp. CEO, will establish a search committee, which will work in coordination with the state secretary of education’s office and others.
The company announced Monday it had acquired Georgia-based Fisher Engineering Inc. and followed it with a Wednesday announcement it had acquired Florida-based civil engineering firm Hole Montes Inc.
Financial details of the transactions were not disclosed, but Bowman financed the deals with a combination of cash, seller notes and equity, according to news releases.
Founded in 2007, Fisher specializes in fire protection and life safety engineering. Its services include code consulting, systems design and life safety survey and analysis. Based near Atlanta in Johns Creek, Georgia, the firm also has offices in Arizona, Maine, Maryland, Michigan, North Carolina and Virginia Beach.
“We’ve been pursuing the acquisition of Fisher for quite some time,” Bowman CEOGary Bowman said in a statement. “Fisher has built a great platform from which we can expand a national and international fire protection and life safety practice. … Fisher’s experience as a prime contractor to the United States federal government will provide us a pathway to expand our reach to the single largest infrastructure consumer in our market.”
Fisher’s 24 employees will join Bowman.
“Bowman has a reach that will enable our business to grow at a rate we could not otherwise achieve,” Doug Fisher, Fisher’s co-founder and principal of fire engineering, said in a statement. “There’s a tremendous opportunity to leverage our collective experiences, customers and cultures to create something far bigger and more valuable than what we have today.”
Bowman expects the acquisition to contribute approximately $5 million in annual net service billing.
The second announced purchase, Hole Montes, offers infrastructure planning services, including survey, geographic information system (GIS) and construction management services. Founded in 1966, the company has an office in Naples, Florida, and Fort Myers, Florida.
“Hole Montes is a well-respected firm with a long-established presence in Southwest Florida,” Bowman CEO Gary Bowmansaid in a statement. “They possess expertise and client relationships that complement ours and will benefit from our national platform.”
Hole Montes’ 65 employees will join Bowman.
“Working with Bowman during the diligence and pre-integration period has given us tremendous comfort that this is the right next step for our leadership, our employees and our customers,” Hole Montes CEO Bob Mulhere said in a statement. ”We’re excited to accelerate our growth and to contribute our expertise to Bowman’s portfolio of services.”
Bowman expects the acquisition to initially contribute approximately $7 million in annual net service billing.
Bowman has more than 1,700 employees in more than 70 offices across the country and provides planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services. The company went public in May 2021 and has acquired several companies across the country as it continues to look for strategic growth opportunities. The company reported $261.7 million in 2022 revenue.
Carilion Clinic has promoted its executive vice president and chief operating officer, Steve Arner, to president of the Roanoke-based nonprofit health system. He will remain COO while taking on new duties as president, Carilion said in its announcement Tuesday.
Nancy Howell Agee, who has served as CEO and president since 2011, will also continue as CEO.
In addition to serving as Carilion Clinic‘s COO and executive vice president for the health care organization’s Roanoke operations since 2012, Arner has been president and CEO of the 703-bed Level 1 trauma center Carilion Medical Center since 2014. As president, Arner will oversee day-to-day management of the $2.4 billion health system’s seven hospitals and more than 240 medical offices.
He also played a significant role in the state’s COVID-19 response as chair of the Virginia Hospital and Healthcare Association from October 2020 through April 2022.
After joining Carilion in 2005, Arner held leadership roles in hospital administration, cardiac and vascular services, surgical services and facility management, and he also was president and CEO of Carilion Rockbridge Community Hospital. In 2003, Arner earned an MBA from Brigham Young University.
During his time with Carilion, Arner helped spearhead capital improvements, including the Crystal Spring Tower addition to Carilion Roanoke Memorial Hospital, which will be completed in 2025.
“Steve is an outstanding leader, and we are delighted to promote him,” Agee said in a statement. “He has a strong work ethic and cares deeply about our patients, our teams and our work together caring for the communities we serve.”
As VHHA chair, Arner coordinated the collective response of Virginia’s health care provider organizations to the pandemic, and he has served on the VHHA board since 2014 and its executive committee since 2015. Arner was also state delegate to the American Hospital Association Regional Policy Board from 2016 to 2021 and serves on the strategic planning committee for America’s Essential Hospitals.
“Carilion today is a nationally ranked academic health system that provides an extraordinary range of services, from primary care to the most advanced, complex care,” Arner said in a statement. “I look forward to continuing on a pathway of growth and collaboration.”
Gaming revenues from Virginia’s two casinos open in April totaled $35.4 million last month, according to data released Monday from the Virginia Lottery.
Rivers Casino Portsmouth, which received its casino license in November 2022 and opened Jan. 23, reported $21.3 million in adjusted gross revenue (wagers minus winnings) in April. Of that, $13.8 million came from its 1,420 slots, and the remaining $7.5 million came from its 81 table games.
The Virginia Lottery Board approved the casino license for the HR Bristol operator in April 2022, and the Hard Rock Hotel & Casino Bristol‘s temporary facility opened on July 8, 2022. Its permanent facility is expected to open in July 2024. HR Bristol reaped $14 million in adjusted gross revenue (AGR) in April. The casino reported $11 million in AGR from its 888 slots and $2.7 million from its 29 table games.
Last month, Virginia took in almost $6.37 million in tax revenue from casino gaming activity — $3.8 million from the Portsmouth casino and $2.5 million from the Bristol casino. For Rivers Casino Portsmouth, 6% of its AGR (about $1.28 million) will go to Portsmouth, while 6% of the Hard Rock Bristol‘s AGR (about $842,000) will go to the Regional Improvement Commission, which the General Assembly established to distribute Bristol casino tax funds throughout Southwest Virginia.
The Problem Gambling Treatment and Support Fund will receive $30.7 million from Rivers Casino Portsmouth’s taxes and $20.2 million from Bristol casino taxes for a total of $50.9 million. The Family and Children’s Trust Fund will receive about $12,700 from April taxes, of which about $7,700 comes from the Portsmouth casino. The remaining $4.18 million in taxes will stay in the Gaming Proceeds Fund.
Virginia’s third casino, Caesars Virginia’s temporary casino, opened Monday in Danville. The temporary facility has 740 slot machines, 25 live table games and 28 electronic table games.
Dugan started with the regional SBDC as a part-time program manager in 2014 and became a business adviser in 2015, adding the title of assistant director in 2019. She took on the leadership role May 1, after serving as interim director since March 27, replacing Joyce Krech, who retired after more than two decades.
Dugan said that she plans to leverage the SBDC’s network for resources, including host institution James Madison University, the regional SBDC’s advisory council and other regional business programs to identify and develop services needed to build small businesses.
“The Shenandoah Valley SBDC is very adept at one-on-one advising that can be customized for each individual business,” Dugan said in a statement. “We want to continue to enhance those services by listening to what businesses and localities truly need, finding gaps in services and then using the expertise and resources available throughout our extensive network to drive business opportunities and skills to the next level.”
The regional SBDC is one of 27 Small Business Development Centers across Virginia. They provide no-fee, confidential advising, business training and connections to resources for new and existing businesses. Formed in 1989, the organization is hosted by JMU in partnership with George Mason University and is funded in part through a cooperative agreement with the U.S. Small Business Administration and local governments.
Rappahannock Electric Cooperative has named Lee Brock as its principal engineering manager, the Fredericksburg-based utility announced Tuesday,
In the new role, Brock will lead and coordinate engineering, design and construction for REC’s large-scale power projects and focus on response and service to new members in the large commercial and industrial space. Her team will also work closely with REC’s economic development team to ensure consistent response and processes for smooth transition from project concept to completion.
“With Ms. Brock’s transition into this new role supporting REC’s service projects, we have a winning team to support economic growth in the communities we serve, maintain member focus from initial application through project completion, and ensuring grid health and reliability,” said John Arp, REC’s chief engineering and grid operations officer.
Brock previously served as REC’s managing director for engineering and power supply. In that role, her responsibilities included leadership and oversight of the electrical system planning, engineering and technical services, ensuring the successful implementation of the cooperative’s strategic plan while carrying out REC’s mission of providing reliable electric service.
Brock has a bachelor’s degree in electrical engineering from the Stevens Institute of Technology and has 43 years of experience in the electric utility industry. Prior to coming to REC in 1995, she worked for 15 years for Atlantic City Electric Co. in New Jersey as an electrical engineer in the bulk power planning, distribution planning and technical services departments.
REC provides electric service to more than 174,000 connections in parts of 22 Virginia counties. It operates and maintains more than 18,000 miles of power lines through its service area, which ranges from the Blue Ridge Mountains to the Chesapeake Bay.
The change is to “provide greater definition around the nature of [the] holding company, which includes three engines of insurance, investments and a group of diverse businesses in Markel Ventures,” according to a news release.
The company will also launch a new website, mklgroup.com, but continue trading under the stock ticker symbol MKL on the New York Stock Exchange. There won’t be any significant structural or organizational impacts, executives said.
“Over the last 93 years, Markel has evolved from a regional transportation insurer to a global Fortune 500 family of companies and investments,” CEOTom Gayner said in a statement. “Given the nature of this evolution, we have used the name Markel to refer both to our specialty insurance business and our holding company. This new name for our entire group of companies will help us create greater clarity as we continue to grow each of our three engines.”
Markel’s global specialty insurance business will continue as Markel, and its primary website will stay markel.com.
Sam Markel started the firm in 1930 to insure jitney buses. Over nearly a century, it has grown with various acquisitions and in 1986 became public, with a listing on the NASDAQ exchange. It was first listed on the Fortune 500 in 2016.
“We chose the name Markel Group because even though we have many different businesses powered by 20,000 people around the globe, we are all part of the same team and we share the values of the Markel style,” Gayner said. “Together, our three engines form a connected system that is uniquely equipped to help our customers, colleagues and shareholders win in the long term.”
Markel has about 20,300 employees and reported $11.67 billion in 2022 operating revenue, down from $12.84 billion in 2021. Its total 2022 assets were $49.79 billion.
RICHMOND, Va. – A former Virginia medical cannabis employee initially got into the business to help his wife with her multiple chronic ailments, including multiple sclerosis.
For the past five years, Bart Dluhy has grown plants and made extracts to see what might help ease his wife’s pain, he said. He began his cannabis career as a budtender in a Las Vegas medical facility, where he helped patients select products for particular ailments.
Dluhy completed online cannabis certificate programs through Syracuse University in 2022. He is certified in cannabis health care and medicine, and cultivation. Dluhy is also an official “ganjier” — think sommelier, but for cannabis.
His experience led him to work in a Virginia medical facility operated by Jushi, Dluhy said, where he made cannabis edibles, vape cartridges and various extracted products. Dluhy left after about three months on the job.
“Part of the reason why I left is I didn’t feel good about myself working for a company that was not taking care of the patients that were their consumers,” Dluhy said.
The medical cannabis market is the only way to legally purchase cannabis in Virginia. But, current Virginia patients point to the program’s shortcomings, and cannabis advocates say top state officials and lawmakers are actively suppressing it. The main issues reported range from registration fees, inconsistent supply, high prices, low potency, and overall access.
Virginia lawmakers decriminalized cannabis possession in 2021, with specific parameters. When the General Assembly adjourned this March, they did so without creating the anticipated recreational cannabis market that lawmakers have discussed for years.
“Virginia started as a medical state, and technically, we’re still in a medical state,” Dluhy said. “You can’t go and purchase it legally unless you get a prescription from a doctor.”
How it works: Buying cannabis
Virginia residents must first obtain a written certification from a registered practitioner, for a cost upward of $100, depending on the provider. The certification must be renewed annually. Medical cannabis patients are no longer required as of July 2022 to register with the Board of Pharmacy for a card to access medical dispensaries.
But the card, which costs $50, can help verify a patient is approved to use cannabis for medical treatment, which can be a factor in employment. It also has to be renewed annually.
Approximate cost then would be $150 annually for a patient, in addition to any purchases. Cannabis is still considered illegal by the federal government, and patients could run into issues with insurance plans covering referrals and medical cannabis purchases.
There are 18 dispensaries located in Virginia. A government-issued ID must be presented at the dispensary with the certificate in order to make the first purchase.
Sales: Climbing, but losing Virginia patients to D.C.
The estimated number of patients with a medical card in Virginia is approximately 50,000. That’s based on BOP-provided information of the number of cards issued as of June last year before the card was not required, and the total number since 2018. Otherwise, the number of medical patients with just a certificate could not be provided, according to the BOP.
Virginia medical cannabis purchases are tracked through the state Prescription Monitoring Program.
The number of products dispensed last year increased 156% from 2021, when a medical card was required. The information is tracked by “dispensations.”
There were almost 562,000 “dispensations” in 2021, according to info provided by the BOP. That total was over 1.44 million, in 2022. The BOP did not provide a total cash sales figure from the medical program by time of publication.
Maryland’s medical program had almost 163,000 patients at the end of December. Its program officially launched in December 2017, after years of figuring out standards and regulations. Washington D.C. has just under 30,000 currently registered patients as of March, but the population is smaller and there is a thriving “gifting market” as a work around to district law.
The small size of the Virginia medical market limits what processors can produce and sell, Dluhy said.
“It’s expensive for what you get, and when I don’t have some of my own growing, I’ll actually drive to Washington D.C. because they have much better products, much better regulations on their products, and have a better variety,” Dluhy said.
Washington-area medical dispensaries can sell to Virginia customers who have a certification and valid state ID. They used to require a BOP card.
There were over 1,200 unique Virginia patients served in Washington in March, according to the city’s Alcoholic Beverage and Cannabis Administration.
It is easier to find out exactly how many Virginia patients were served in D.C. in March than it is to get a detailed overview of the state’s own medical program. Both D.C. and Maryland post numbers on the managing authority’s website and compile public-facing reports.
The Cannabis Control Authority will begin tracking patient sales and totals when it takes over from the BOP next January, the Authority told Capital News Service. It will make that type of “data transparent and accessible” like the district and Maryland.
Control: Three out-of-state companies own the market
When Virginia lawmakers introduced medical cannabis in 2016, they allowed for one pharmaceutical cannabis processor per each one of the five Virginia Department of Health’s designated health service areas. Pharmaceutical processors are facilities with permits to grow cannabis plants, as well as produce and dispense medical products to patients.
“The biggest issue is that there are only four companies in the entire state and each company has its own specific region, and what that does is that limits competition,” Dluhy said.
The state’s four licensed pharmaceutical processing firms are actually now owned by three out-of-state companies valued at hundreds of millions and traded on the stock market, based on Capital News Service analysis in 2022.
JM Pedini is the developmental director of NORML, the National Organization for the Reform of Marijuana Laws Virginia chapter. Policymakers and advocates alike increasingly consider the state’s limited licensure vertical models outdated, though the model is not unique, according to Pedini.
Patients in health district one, in the Northwest area, have to travel or rely on cannabis delivery. No medical processor has been assigned to the district because of a legal roadblock involving the company PharmaCann Virginia. The lawsuit was recently finalized, allowing the VBOP to re-open applications for patients in the area.
Patients are impacted by the lack of access in health district one, and some have medical conditions that make it laborious to travel, according to Dluhy.
“Either they get fatigued or their back is gonna ache from being in the car for so long,” Dluhy said. “Or maybe they just have troubles with vision or lightheadedness and they don’t want to be on the road on [Interstate] 66 on a big highway for two hours out of their day.”
Patient complaints: Product cost, quality and offerings
There are many registered medical patients who complain about low product quality and limited offerings. A Reddit channel dedicated to Virginia medical cannabis users features regular posts about customer issues. The subreddit has over 6,000 people subscribed to it.
There are also posts where patients state they prefer the current medical system over illegal sales.
“There are certain things that a medical facility would do to optimize the product as medicine as opposed to recreation, and a lot of those things that should be done aren’t being done,” Dluhy said, who is active on the subreddit.
Virginia also offers a limited number of product types compared to other states, according to Dluhy. Virginia products can contain THC, or CBD, or a combination. Many other cannabis compounds can be medicinally helpful, according to Dluhy.
Cannabis compounds such as CBG have proven to be anti-inflammatory in mice and helped to slow the growth of colorectal cancer, according to Harvard Health. THCV has shown promise in test trials to help stabilize insulin levels and facilitate weight loss.
“All of these compounds have excellent medical value and different ones are good for different ailments,” Dluhy said.
Other states offer products with different ratios of these compounds, something Dluhy said is important because everyone tolerates cannabis differently. Some medical programs can offer 20-to-1 ratios, or even 5-to-1 ratios of different THC and CBD combinations. This can make it easier for patients to find the exact product to help their ailments, Dluhy said.
Virginia dispensaries are owned by corporations that operate in other states, but the same company in California can legally offer more variety due to demand and stronger products. Virginia medical cannabis sales are currently capped at 10 milligrams of THC per dose.
Other frequent complaints include pricing and inconsistent product availability, which can be hard for a patient who finds a medicine that helps but can’t find it again.
Gleaf dispensary in Henrico County was the second dispensary to open in the area. Photo by Chloe Watson, VCU Capital News Service.
Similar products offered at a Virginia dispensary can cost less at the same company’s dispensary in another state, according to a Capital News Service review of products matched by brand, potency and sales tier. A product that costs $60 in Virginia costs $35 for the same amount in Philadelphia, Pennsylvania — from the same parent company.
Medical patients turn to the black market, and use apps like Telegram to buy cheaper products that may also be better quality, according to Dluhy. However, this can be especially risky for medical patients, as black market products are not screened for heavy metals, pesticides, or other contaminants that would be found through state-mandated testing, he said.
Dluhy blamed these widespread issues on government restrictions and lawmaker delay to create a legal recreational market.
“The longer they wait, the longer people are putting themselves at risk, wasting money, not getting the medicine that they legally should have access to,” Dluhy said. “I really put the fault of this on the government.”
“No one wants to sell crap, but they are restricted because of the legislation,” he added.
Legislation: Does Virginia stay or does it grow?
The Virginia medical program needs to evolve, and the governor’s administration needs to help facilitate that growth and expansion, according to Pedini.
There were some failed legislative efforts this session to expand the medical program.
Sen. Adam Ebbin, D-Alexandria, introduced Senate Bill 1090 to increase the number of allowed cannabis processor permits from one to two for each health service area.
Del. Dawn Adams, D-Richmond, introduced House Bill 2369 to increase the annual number of cannabis dispensing facility permits from five to 12. It also removed the requirement that dispensaries must be owned by a pharmaceutical processor.
That would have allowed more competition in the market, which could help drive down product costs.
The legislation also allows for registered cannabis products to have slightly more THC than the allowed amount per dose by increasing the allowable product deviation from 10% to 15%, without having to submit a new registration to the BOP.
Companion bills SB 788 and HB 1598 transfer oversight of medical cannabis to the Cannabis Control Authority. The Authority was created in 2021 with the anticipation it would regulate aspects of recreational sales.
The medical program will still operate the same, but patients will be better suited under an agency where regulators have an expertise in this area of policy, according to Pedini.
Jeremy Preiss is the acting head of the Virginia Cannabis Control Authority. It will oversee the medical program starting January 2024. The Authority plans to connect with “patients, practitioners, and providers” closer to the date to provide “full awareness” of transfer details, Preiss stated.
“Legislation was passed this session to address this and other patient-specific concerns,” Pedini stated in a follow-up email. “While improvements were made, many more are still needed in order for Virginia’s program to meet the expectations of patients and practitioners.”
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.
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