Strativia: Navigating the Evolution of a Federal Government Contracting Success Story
From Startup to Success: A Journey Begins
In 2006, Kenneth Kelly embarked on a venture that would redefine his career and establish a formidable presence in the federal contracting arena. Founding Strativia, a company initially rooted in software development for banks and credit unions, was a leap of faith propelled by necessity and opportunity. Back then, government contracting was a distant aspiration, with the company’s portfolio primarily focused on lead generation software.
The early days were marked by significant challenges, especially during the economic downturn of 2008, which compelled many banks to halt new expenditures. Faced with dwindling demand, Strativia had to pivot quickly, expanding its clientele to include state and local governments before venturing into the federal landscape.
Early Lessons in Federal Contracting
Kenneth’s foray into federal contracting began not with a grand plan but rather a fortunate encounter. At a conference, a representative from the Department of Energy (DOE) approached him about logistics work, leading him to understand that the government holds substantial contracts across various low-tech services, not just the high-profile IT and cybersecurity projects many firms chased.
This eye-opening experience drove Strativia to explore additional service verticals, enabling it to identify opportunities beyond its initial IT focus. The company gradually transitioned toward science, technology, and engineering sectors, ultimately finding a niche that represented over one-third of its work.
Recognizing and Seizing Opportunities
One key project that marked Strativia’s growth was winning a $75 million contract with the National Institute of Standards and Technology (NIST). This landmark deal was transformative, opening doors that were previously closed and propelling Strativia into the upper echelons of federal contractors. Kenneth emphasizes that the scope of possibilities is tremendous when the right resources are pooled and reinvested in the company.
Despite the robust competition in federal contracting, Strativia maintained its relevance by diversifying its service offerings. Initially, only 30% of their work concentrated on IT; now that figure is approximately 10%. The company has expanded into logistics support and various critical services that maintain government operations, reflecting a deep understanding of where the government allocates its budget.
The Importance of Human Capital
Strativia’s success hinges not only on contracts won but also on the talent behind the scenes. For Kenneth, leadership is vital. Hiring skilled professionals with experience in winning full and open contracts became a priority as the company grew. The transition from being a small business to a more significant player necessitated building a leadership team that could navigate larger contracts and more competitive landscapes.
In addition to fostering a culture of recognition and appreciation, Strativia invests in its team through training and development programs. Reimbursing employees for tuition showcases a commitment to cultivating talent and helping them grow within the company. Such practices have created a robust team which, in turn, helps Strativia consistently elevate its service level.
Lessons Learned: Staying Relevant
Understanding the unique challenges faced by small businesses entering the federal landscape has taught Kenneth valuable lessons. One crucial takeaway is the importance of being adaptable. The ability to pivot to new service lines when initial markets dry up is essential. Kenneth advises new companies to seek mentorship and forge partnerships with larger firms, which can provide the past performance necessary to win government contracts.
He also highlights the value of research—knowing where federal money is spent can significantly impact a small business’s chances of securing contracts. Tools and resources provided by the Small Business Administration (SBA) are invaluable, empowering entrepreneurs to make informed decisions and navigate the complex world of government contracting.
The Road Ahead
Today, Strativia stands on the precipice of a new age, targeting annual revenues of $100 million and eventually reaching over 1,000 employees. For Kenneth, this ambitious goal stems from a deep-rooted belief that if one can envision success, they can achieve it. He encourages other entrepreneurs to foster a mindset of readiness—always being prepared to seize opportunities when they arise.
Building a Legacy of Knowledge
Kenneth actively shares his insights and experiences at workshops and seminars, empowering the next generation of small business owners. His emphasis on preparation, continuous learning, and the willingness to diversify service offerings lays a blueprint for success in government contracting.
In embracing both the highs and lows of entrepreneurship, he reinforces the notion that success is not merely the absence of challenges, but rather, the resilience and adaptability to navigate them.
Strativia’s journey encapsulates the essence of entrepreneurship: a venture filled with learning, growth, and the relentless pursuit of excellence.
