Deltek, Aronson deal shakes up contractor services market

Deltek is getting out of the consulting business around schedules run by the General Services Administration.

Deltek sold the Washington Management Group to Aronson LLC, an accounting and consulting firm, for an undisclosed sum.

Jeff Capron, Aronson’s managing partner, said in a release that the deal lets both companies focus on their core competencies in the government contracting market.

Kevin Plexico, Deltek’s vice president for information solutions, said in an email to Federal News Radio that his firm was focused on providing software and information to project-based businesses and not the type of consulting that WMG provides to contractors.

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“We are very excited to have found Aronson as a partner for this going forward and it’s a natural fit in their business,” he said.

WMG helps vendors get on and maintain their GSA and Veterans Affairs Department schedule contracts.

In an email to Deltek customers, Plexico added the business model for delivering contract management services is different from the rest of what the company offers.

“Our goal was to develop a go-forward plan for WMG that gives you the support you need but also aligns to Deltek’s long-term strategy,” he wrote. “Focused on helping clients obtain and maintain GSA schedule contracts and supporting Office of Inspector General audits, Aronson’s consulting staff serves a wide range of government contractor clients across the country, from small contractors to Fortune 500 companies. Given Aronson’s focus and skill set, we think it provides an excellent home for our WMG clients. We are working closely with Aronson to ensure that you will continue to receive the same high quality service, support and expertise that you’ve come to expect from WMG.”

Deltek acquired the Washington Management Group in 2011 as part of its $26 million purchase of FedSources, a competing market research firm.

Scott Orbach, president of EZGSA, which is a competitor of WMG, said it makes sense for Aronson to buy WMG.

“Aronson is in the business of selling hours and buying WMG fits within their existing business model,” Orbach said. “When WMG went to Deltek, I didn’t think it fit in their business model. WMG is a pretty big player. I don’t’ know how they rival Aronson in size, but it seems to be a merger between No. 1 and No. 2.”

Aronson said by acquiring WMG, contractors would have access to expanded services, including government contract experts and more collaboration with GSA from more frequent interaction.

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Lexy Kessler, Government Contracting Practice Partner, Aronson

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