losses to reverse in FY2020, returning the Construction
business line to profitability consistent with expectations. contracting opportunities that are not dependent upon the
sole source provision of 8(a) are also pursued.
The Corporation’s Construction business line provides
services to the federal government, and in some cases
participates in contracts offered by the government solely
to small businesses. Some of the Corporation’s construction
companies have received 8(a) certifications from the U.S.
Small Business Administration (SBA). 8(a) certifications allow
these subsidiaries to bid on contracts set aside specifically
for 8(a)-certified entities as well as other small business con-
tracts. While the Corporation may take advantage of direct
contract opportunities under the 8(a) program, government In FY2019, the Corporation’s Construction businesses gen-
erated 45% of its revenue from 8(a) sole source contracts,
29% from 8(a) competitive bid contracts, and 26% from
non-8(a) full and open bid contracts. A majority of 8(a) rev-
enue was generated from the U.S. Department of Defense.
In FY2019, the Construction business line continued
to provide employment opportunities for BBNC share-
holders with an average of 23 shareholder employees
throughout the year.
GOVERNMENT SERVICES
The following table displays results of Government Services earnings, before interest and taxes for the fiscal
year ended (in thousands):
FISCAL YEAR
2019 2018 2017
260,580 267,250 277,541
233,096 238,744 245,365
27,484 28,506 32,176
REVENUES
Government Services
$
COSTS AND EXPENSES
Government Services
Earnings from Government Services
$
The following table displays results of Government Services EBITDA for the fiscal year ended (in thousands):
EBITDA
The Government Services business line (Government
Services Group) is comprised of companies that pro-
vide a broad range of services including engineering
and technical services, information technology man-
agement services, environmental services, opera-
tional testing and evaluation services, medical and
applied science projects, medical staffing, and bio-
medical research and development, primarily for the
federal government. In addition, Bristol Bay Shared Ser-
vices, LLC, based in Anchorage, Alaska and Huntsville,
Alabama, is the administrative shared service company
supporting the Government Services Group.
The Government Services Group experienced a 2.5%
decrease in revenue, as well as an earnings decrease
of $1.0 million over FY2018.
$
2019 2018 2017
28,708 29,746 35,201
As with the Construction business line, the Corporation’s
Government Services Group provides services to the
federal government, and in some cases, participates
in contracts offered by the government solely to small
businesses. Some of the Corporation’s Government
Services companies have received 8(a) certifications
from the SBA. 8(a) certifications allow these subsidiaries
to bid on contracts set aside specifically for 8(a)-certi-
fied entities as well as other small business contracts.
While the Corporation may take advantage of contract
opportunities under the 8(a) program, government
contracting opportunities that are not dependent
upon the sole source provision of 8(a) are also pursued.
M anagement ' s D iscussion and A nalysis
31