Washington Management buys Fed Sources

Two powerful consulting firms have combined their strength. The Washington Management Group Inc., which specializes in the General Services Administration's Federal Supply Schedule, has bought Federal Sources Inc., a market intelligence provider.

WMG President and chief executive officer Bill Gormley said the acquisition combines his group's professional consulting services with FSI's research capabilities.

"Today we create an unmatched strategic alliance in our industry," he said.

WMG provides contract award services to companies that do not have GSA schedule contracts and management services to those that do. FSI provides market research and marketing consulting services for companies selling to the government.

Gormley, a former assistant commissioner of the Federal Supply Service, will run both firms. He said his first challenge is to integrate the consulting services and market research tools in effective ways. State and local government business, Gormley said, should grow as those agencies use new cooperative purchasing provisions that allow them to use the GSA schedules.

Ray Bjorklund, vice president of consulting services at FSI, said he and his colleagues met with WMG and other potential buyers that Primedia Information Inc., FSI's owner, was in discussions with.

"We didn't know until the 11th hour who the buyer would be," he said.

Bjorklund said FSI leaders met with Gormley Friday morning to begin melding the two companies into one. He was not expecting anyone to be laid off, he said.

"Any business can change, but this is a complementary relationship between what we're good at and what they're good at," he said. "It could be a powerhouse."

The Coalition for Government Procurement, which is WMG's largest client, is also working on aiding the integration process, said Coalition Executive Vice President Larry Allen.

"We're going to take a look and see how we can leverage the services that FSI provides for Coalition members," he said. "We think their services are very complementary and a lot of our members are already users of their services as well."