WidePoint Profile
WidePoint Corporation provides Technology Management as a Service (TMaaS) that includes federally certified communications management, identity management, interactive bill presentment and analytics, and Information Technology as a Service solutions.
The company helps its clients achieve their organizational missions for mobility management, information technology management, and cybersecurity objectives in this challenging and complex business environment.
The company offers its TMaaS solutions through a flexible managed services model, which includes both a scalable and comprehensive set of functional capabilities that can be used by any customer to meet the most common functional, technical and security requirements for mobility management. The company’s TMaaS solutions were designed and implemented with flexibility in mind such that it can accommodate a large variety of customer requirements through simple configuration settings rather than through costly software development. The flexibility of the company’s TMaaS solutions enables its customers to be able to quickly expand or contract their mobility management requirements. The company’s TMaaS solutions are hosted and accessible on-demand through both a secure federal government certified proprietary portal and/or through a secure enterprise portal that provides its customers with the ability to manage, analyze and protect their valuable communications assets, and deploy identity management solutions that provide secured virtual and physical access to restricted environments.
Solutions
The company’s TMaaS framework combines the strengths of its core capabilities into a single secure comprehensive enterprise-wide solution set that offers its customer’s the ability to securely enable and manage their mobile IT and telecommunication assets as described below:
Telecom Lifecycle Management
The company offers comprehensive telecom lifecycle management solutions to enterprises both in the public and the private sectors. The company’s solutions are delivered in a hosted and secure multi-modal delivery environment. The company’s solutions provide full visibility of telecom assets for its clients thereby enabling its clients to securely and efficiently manage all aspects of telecom assets. The company offers state-of-the-art call centers that are available 24/7 to help its customers stay productive.
Mobile and Identity Management
As one of two DoD designated External Certificate Authorities, the company offers several different federally certified digital certificates and credentials that enable its customers to provide the strong multifactor authentication (MFA) solution to conduct business through secure portals owned and managed by the U.S. federal government, access government facilities and secure mobile devices that are used to access corporation networks, databases and other IT assets. The company also offers comprehensive mobile security solutions that protect users, devices, and corporate resources, including establishing effective policies to create a scalable, adaptable, successful mobile program. The company also offers the same MFA solution to enterprise in the private sectors with the same level of cybersecurity assurance.
Digital Billing and Unified Communications Analytics Solutions
The company offers innovative and interactive billing communications and analytics solutions to large communications service providers (CSPs). The company’s customized solutions give their end customers the ability to view and analyze their bills online via its advanced self-serve user portal 24/7. The company’s solutions are delivered in a hosted and secure environment and provide its CSPs with full visibility into their revenue model which drives a stronger customer experience.
IT as a Service
The company provides comprehensive information technology (IT) as a service offerings (ITaaS), including cybersecurity, cloud services, network operations, and professional services. The company provides a complete outsourcing solution that includes hardware, software, network and associated management for its clients’ IT needs. Additionally, the company provides development operations support, artificial intelligence implementation, and the Microsoft stack of technologies to help its customers to be productive, agile, and efficient in a secure environment. provide the above solutions from the cloud that ensures scalability, resiliency, and security. The company also provides migration to the cloud services that enables its customers to take advantage of cost savings through economies of scale and elimination of redundancy, as well as taking advantage of built in scalability and resiliency of the cloud.
Sales Cycle
The company sells service solutions to government and business enterprises. The company’s ability to successfully sell its services depends upon the relationships it builds and maintains relationships with key decisions makers at existing customers and prospective customer organizations. The company’s sales cycle is long and is often affected by many factors outside of its control, including but not limited to customer specific proposal and acquisition processes, unique customer service requirements, the customer’s timetable and urgency, changes in key leadership and/or personnel that slows down the proposal or project, an evaluation by different functional groups within the prospective customers organization before a purchase decision is made by the organization, budgetary funding delays, intermittent U.S. federal government shutdowns, competitive bidding processes and other policy constraints, as well as additional factors that may lengthen the sales cycle. Many of these variables are outside the company’s control and it attempts to manage the financial impact on it by building a large pipeline with opportunities that have overlapping sales cycles. It could take more than 12 months to enter into a contract with a customer from the time the company first actively engage a prospective customer and then a full implementation could range from mere weeks to several months depending on the complexity of the customers statement of work and level of engagement by it and the customer to get the deployment completed.
Sales Approaches
The company approaches selling its services under either a direct sales model under which it controls the contract and key relationships or it partners with a large systems integrator and other strategic partners to provide its TMaaS solution as part of their overall total solution offering to the end customer. The company has historically grown its business under the direct sales model; however, more recently it has closed a significant portion of its new sales through its partnerships with large systems integrators.
The company’s sales approaches are summarized below:
Systems Integrators: The company partners with large systems integrators to collectively pursue large market opportunities that include its some or all of its TMaaS solution within the scope of the solicitations. In these types of arrangements, the company generally operates as a subcontractor and manages the customer relationship closely with the prime contractor.
Strategic Partnerships: The company partners with vendors who are leaders in their industries, such as Healthcare, Telecommunication, Transportation, etc. to leverage their channels or reseller networks to sell its TMaaS solution. This approach allows the company to sell into markets that would be otherwise be to reach. By leveraging these partners’ existing customer relationships, the company can shorten the sale cycle and have a higher success rate.
Internal Sales Force: The company has a team of sales professionals account managers and project managers that are responsible for identifying and pursuing commercial and government opportunities for its TMaaS offerings. The company takes a team approach for engaging with a potential customer. The company’s sales teams consist of sales lead, account managers, solution experts and other subject matter experts to assist with execution of product demonstrations, proposal creation and submission, contract negotiation, relationship management, sales closing and final transition of closed deals to the operations team. Sales commissions are calculated and paid based on net collected gross managed service revenues times a fixed commission rate that declines over the base term of the contract. There are no commissions paid after the base term expires. The company plans to add resources for this effort to help manage its system integrator and strategic partnership efforts, as well as increasing the number of qualified leads in its sales pipeline to further spur growth.
Upselling and Cross Selling: After a customer is on boarded, the company focuses on delivering its service promise and then upsell and cross sell its TMaaS solution offerings. The company may enter into preferred supplier network programs agreements with its customers and offer its TMaaS solutions on similar terms and conditions to their suppliers and customer which in turn could increase its potential sales opportunities. The company also directly asks its customers for referrals into their professional network, customer and supplier groups to drive additional sales opportunities.
Indirect Sales Approach: The company may use an indirect sales approach to reach new target markets by outsourcing its lead generation and certain business development activities through a third-party channel partner.
The company’s sales team has a wide variety of skills and expertise to cultivate qualified leads and guide its prospective customers towards finding a solution that meets their organization’s goals and objectives.
Marketing and Branding
The company’s marketing strategy is to build its brand and increase market awareness of its solutions in its target markets that will allow it to successfully build strong relationships with key decision markers involved in the sales process on the customer side. Key decisions makers typically consist of information technology executives, finance executives and managers of communications assets and networks.
The company engages in a wide variety of broad-based and targeted marketing campaigns designed to broaden market awareness of its solutions and expertise. Broad-based marketing campaigns include attending and speaking at industry and tradeshows, website marketing, publishing technical whitepapers and use case studies, topical webcasts, public relations campaigns, subject matter expert forums and industry visibility initiatives. Targeted marketing campaigns, including internet search engine optimization, directed e-mail and direct mail, co-marketing strategies designed to leverage existing customer and network relationships.
Customer Concentrations
The company derives a significant amount of its revenues from contracts funded by federal government agencies for which it acts in capacity as the prime contractor, or as a subcontractor. Contracts with federal government agencies in particular, will be the primary source of the company’s revenues for the foreseeable future although it is working to increase its footprint with commercial customers through its relationships with large systems integrators and strategic partners. Accordingly, negative changes in federal government fiscal or spending policies (including continuing budget resolutions and government shutdowns) that impact the spending budgets of the company’s key government customers, including Department of Homeland Security, will directly affect its financial performance.
The company’s customers can be motivated to meet their organizational needs for mobile management, IT management, and security objectives in this challenging environment. As a result of delivering the company’s TMaaS service solution it can often save its customers a significant portion of their total spend on mobility and security management which translates into real cash savings. While most of the company’s customers use their savings to purchase and upgrade their managed services, its customers could potentially negatively impact its billable revenue base and result in lower profit margins if they decide to retain the savings and not purchase additional higher margin services. The company has an attractive set of solutions.
The company’s government customer base is located predominantly in the Mid-Atlantic region of the U.S. while its commercial customer base is located throughout the continental U.S., Canada, Europe and the Middle East. Historically, the company has derived, and may continue to derive in the future, a significant percentage of its total revenues from federal government contracts in the United States.
Due to the nature of the company’s business and the relative size of certain contracts, which are entered into in the ordinary course of business, the loss of any single significant customer would have a material adverse effect on its results of operations. In future periods, the company will continue to focus on diversifying its revenue by increasing the size and number of customer contracts both in public and private sectors.
Government Contracts
The company has numerous government contracts and contract vehicles. The company’s contracts with the federal government, and many contracts with other entities, permit the government customer to modify, curtail or terminate the contract at any time for the convenience of the government, or for default by the contractor.
Contract vehicles include Government Wide Acquisition Contracts (GWACs), and Blanket Purchase Agreements (BPAs) based upon GSA Schedule 70, and customer specific contracts. The company also holds a number of Indefinite Delivery/Indefinite Quantity (ID/IQ contracts, including, but not limited to:
Department of Homeland Security for Cellular Wireless Managed Services (CWMS) 2.0 Indefinite Delivery/Indefinite Quantity Contract (DHS CWMS 2.0 IDIQ); and
Subsidiaries of WidePoint are approved subcontractors for the following ID/IQ contracts: NASA End-User Services and Technologies (NEST), GSA Alliant 2, GSA Enterprise Infrastructure Solutions (EIS), GSA Connections II, National Institutes of Health Chief Information Officer Solutions and Partners (CIO-SP3), NASA Solutions for Enterprise-Wide Procurement (SEWP), and Department of Justice (DOJ) Enterprise Standard Architecture V (ESA V).
The company will continue to build on its partnerships with key systems integrators and strategic partners to compete for public and private sector opportunities.
Product Development and Technology Solution Enhancements
For the year ended December 31, 2022, the company incurred product development costs associated with its next generation TMaaS platform application, Secure Identity Management Solutions, Unified Communications Analytics (UCAS) solution, and data center of approximately $3.2 million, which were capitalized.
Security Certification and Accreditation
The company’s TMaaS solution framework has received multiple security certifications and accreditations from the federal government. As a result it has multiple authorizations to operate (ATOs) from the Department of Homeland Security, the General Services Administration, the Department of Defense, and the Department of Commerce. The ATOs attest to the fact that it meets all of the cybersecurity requirements for processing sensitive data as ascribed by the Federal Information Management Act at the Moderate and High levels. These ATOs are difficult, time consuming, and costly to attain. The company’s security certification and accreditation represents a significant reduction of security risk for its customers both in public and private sectors.
Data Centers
The company hosts its proprietary solutions and operate all servers, systems and networks multiple data centers located in North America and Europe. The company also hosts its proprietary solutions in the cloud and have plans to migrate more customers to the cloud in the future. utilize monitoring technology software tools that continuously checks its servers and key underlying components at regular intervals for issues with system availability and performance, server and application security and penetration vulnerabilities, and other factors that may impact the availability of its systems to its customers. To facilitate data loss recovery, the company operates a multi-tiered system configuration with load-balanced web server tools, replicated database servers and fault-tolerant storage devices.
Competition
The company’s principal competitors include MDSL/Calero, Tangoe, Inc., Brightfin, DMI, A&T Systems, and Turning Point Global Services, LLC; Identity Management – Entrust Corp., IdenTrust and XTec Inc.; Digital Billing & Analytics – Amdocs Britebill and Globys Inc.; ITaaS - BMC Software, HPE, StratCore; Next Level Technologies, and many others.
Due to its significant federal government contract concentrations, the company also experiences competition from a variety of both large and small companies, including divisions of large federal government integrators, such as Lockheed Martin Corporation, Northrop Grumman Corporation, and other large and mid-sized federal contractors, as well as a limited number of small to mid-sized subject matter expert organizations offering specialized capabilities within the identity management space.
Contracting
The company prefers to serve as the prime contractor when it wins contract awards. The company also may enter into strategic teaming agreements with another competitor or a vertical supplier to capture a market opportunity. Prospective customers in the company’s target market use a wide array of contract vehicles to purchase technology services ranging from individual purchase orders, awards or consolidated service contracts (including blanket purchase agreements and similar indefinite delivery indefinite quantity contracts) that cover a range of technology services.
Seasonality
The company derives a large percentage of its revenue from the U.S. Federal Government, their budgeting process also affects the purchasing patterns of its the agency customers that will significantly impact the quarter to quarter (year ended December 31, 2022) financial performance.
Regulation
The company’s most significant source of regulation relates to compliance with laws and regulations relating to the formation, administration, and performance of the U.S. government contracts, including the Federal Acquisition Regulation, and agency regulations analogous or supplemental to the Federal Acquisition Regulation, which comprehensively regulate the formation, administration, and performance of government contracts; the Truthful Cost or Pricing Data Act, which requires certification and disclosure of all cost or pricing data in connection with some contract negotiations; the Procurement Integrity Act; the Cost Accounting Standards, which impose cost accounting requirements that govern its right to reimbursement under some cost-based government contracts; and laws, regulations, and executive orders restricting the use and dissemination of information classified for national security purposes, the exportation of specified solutions, technologies and technical data, and the use and dissemination of sensitive but unclassified data; the General Data Protection Regulation is a regulation in EU law on data protection and privacy in the European Union (EU) and the European Economic Area (EEA). It also regulates the transfer of personal data outside the EU and EEA areas.
History
WidePoint Corporation was founded in 1991. The company was incorporated in 1997 under the laws of the state of Delaware.
