2019 BBNC Annual Report | Page 33

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