Having started my relationship with Government Contracting in 1988, the term “beltway bandit” was a familiar one to me. At the time, it was undergoing an iterative adjustment, focusing not only on the private companies physically located around the beltway in the Nation’s Capital, but especially referring to those gaming the small business programs.

These were the companies who jockeyed to get certain NAICS Codes assigned to procurements, making large businesses small, as an example. They opened new companies using former (sometimes current) employees in an effort to skirt affiliation rules and capture set-asides. In some cases, actual small companies allowed larger companies to ‘pass-through” work in exchange for a percentage or other favors, circumventing self-performance requirements. If you review a summary of changes to socioeconomic programs and policies over the past two decades, you can map those changes made to these activities occurring. Research the term “Beltway Bandit” and you will find many references to it in articles created by local and national news outlets, to include the Washington Post, Howard University News Service, The Business Journals, Task & Purpose and Federal News Network. 

This is about recognizing the latest group earning this title, and sounding the alarm for those who may become their victims. While this demographic is not new, it has been energized by tools and developments not in play during the 80’s. Take, for example, social media. Add in the pandemic and the all too real stressors placed on small businesses, and what you have is a very enticing and very harmful concoction. This “Beltway Bandit Brew,” like arsenic, cannot be easily detected. Its symptoms don’t present any differently than common ailments, but the end result is the same. Ingest arsenic and you lose your life. Consume the ‘brew’ and you lose your money, your business, your reputation and in multiple cases, your personal freedom.

The Beltway Bandits of today prey on the increased urgency felt by entrepreneurs and owners seeking refuge in Government Contracting due to the need and relevance of their industries being stalled or eliminated. The Bandits latched on to these fears and began singing the age-old song of “Easy Money Courtesy of Your Uncle Sam,” and developed their version of getting richer quicker and easier from the comfort of your chair. As you sip on this intoxicating fantasy, they will tell you the processes outlined by others are only meant to keep you from realizing your financial goals and that the Government “owes” you the dollars you can see identified as set-asides. They will tell you “winning contracts is easy” and that you can win one and “hire other companies to do the work” supposedly while you are sitting on a beach ordering tropical drinks. They won’t tell you about prosecutions of companies and individuals not adhering to requirements, or of those misrepresenting their performance (or lack thereof for the “middle man” believers). They will definitely not mention the indictments and jail time realized by more than a few of the “pop-up PPE” companies who wanted to cash-in, only to get duped themselves by another breed of bandits, the ones facilitating fraudulent and non-existent supply chains.

While these latest bandits are not always located in or near the Nation’s Capital, their objectives related to our industry are consistently clear. It’s ONLY about their financial gain and NEVER about the value received by the requirement owner, first-responder or warfighter. Let me be clear, Government Contracting is a business that is approached from different angles. There are those who:

I identify myself and most of my friends and colleagues in one or more of the above operating mindsets. In my experience and opinion, the Bandits tend to be guided by (and thrive on) the philosophy of “There’s a sucker born every minute.” They promise you the world, and like magical diet pills, don’t ever deliver the results.

You can find them everywhere that social media has reach. They are the epitome of the late night infomercials of the 80’s, just with 24/7 access on a YouTube channel near you. They are some of the most charming folks you’ll meet, until you hold their feet to the fire, that is. They establish a following of misguided believers who will defend them to the end, all the while with the Bandit’s hands in their pockets, picking them clean, financially speaking. When confronted, they will often play the victim of the establishment, to gain your pity. All the while engaging in bully tactics. I’ve seen it, experienced it, and have colleagues and clients describe it using those very terms.

In 2017, on the Federal News Radio What’s Working in Washington? program segment titled Beware: new version of ‘Beltway Bandit’ there is a great comment about beltway bandits associated with the technology sector. Joshua Konowe, serial entrepreneur and founding member of multiple startups in the region, said the following:

I think this perfectly sums up the what and how it happens in the federal sector, with this latest generation of Beltway Bandits. Caveat emptor.

Peace, Health and Success,

Go-To-Guy Timberlake