lmi 2011 annual report

2011 ANNUAL REPORT

OPTIMIZING GOVERNMENT RESOURCES

1LMI 2011 ANNUAL REPORT

3 Letter from the Chairman of the Board4 Letter from the CEO5 Improving Government Outcomes by Optimizing Resources6 Advanced Analytics

10 Semantic Technology14 Organizational Networks18 LMI Research Institute20 Corporate Governance22 Corporate Officers22 Regional Directors23 Program Leaders25 Consulting Services27 Financial and Other Data

TABLE OF CONTENTS

Michael A. Daniels, Chairman of the Board, and Nelson M. Ford, President and Chief Executive Officer.


Letter from the Chairman of the Board

In 2011, LMI celebrated our 50th anniversary by recon-

necting with our roots and celebrating some of the people

who played such important roles in the early years of the

organization, including Paul Ignatius and Bill Tuttle. As I

saw these men and other founders being introduced to a

new generation of LMI employees, I was confident that all

those who had a hand in LMI’s formation would be proud

of our growth and of our people today.

A half-century ago, when Secretary of Defense Robert S.

McNamara conceived the idea for LMI, he launched a new

approach to government management—one in which the

concentrated talents of logistics experts would amplify

government’s effectiveness by improving the people,

processes, and technology behind its mission.

And so began LMI’s history of providing prudent, imple-

mentable solutions to the problems facing the public sec-

tor. My fellow directors and I are immensely proud of how

our staff continues to uphold LMI’s reputation as a com-

pany of the brightest minds, dedicated to serving the gov-

ernment’s interests. Their careful stewardship further

underscores our ability to produce impressive results—for

our clients and for our stakeholders—no matter how

daunting the task.

We’re enthusiastic to be a part of this organization as it

moves forward toward another 50 years of success. We

know that, despite our remarkable history, LMI’s best days

aren’t in the past, but in the years ahead.

I have lived and worked in Washington since the early 1970s and un-

derstand the way government operates. But even I, a former OMB

budget examiner, could not have envisioned a national debt ap-

proaching $16 trillion.

We are no longer asking ourselves how we got here, and it is clear

that many share the blame for our unsustainable situation. All paths to

solvency require broad-based solutions with much shared pain. We

can’t expect federal revenues of 15 percent of GDP to cover federal

expenses running at 24 percent of GDP. But in addition to our fiscal ir-

responsibility, it should be noted that the government’s approach to

managing our taxpayer dollars is archaic. The slog of bureaucratic

process and regulation is on timetables that don’t align with the pace

of business in the digital age. Agency budgets are tied to a given fiscal

year, with little recognition of the long-term utility of large capital ex-

penditures or incentives.

The question we must ask now is, how are we going to get ourselves

out of this quagmire? In these daunting times, all governments face

difficult tradeoffs. What programs to cut? How to raise revenues?

Where to commit valuable (and diminishing) resources? Whether to

invest in a long-term project or address an immediate crisis? Agencies

must take cold, hard looks at their operations, pare their activities to

those that are essential to their mission, and consider whether their

organizations are up to the tasks at hand.

Thanks to advances in technology and management, many tradi-

tional limits of physical location, information access, and business

process can be lifted. While many bureaucratic organizations are loath

to change direction, it is possible for them to exploit these advances,

reconsider the broader mission, and develop new solutions to meeting

their goals.

At LMI, our business is to help government become better focused

on essential tasks and to suggest ways of providing key services more

efficiently. I am confident our talented and capable staff has what it

takes to help our federal clients rise to the occasion.

Letter from the CEO

Our nation’s government is operating within a new reality of fiscal un-

certainty. The combination of reduced tax receipts and sharply higher

spending has led to a growing deficit and a budget crisis that will be

difficult to resolve. The foreseeable future holds much of the same, as a

slow economic recovery is coupled with the projected rapid increases in

entitlement spending associated with the Baby Boom generation enter-

ing retirement. Similarly, defense spending (despite the drawdown of

forces in both Iraq and Afghanistan) steadily increases as many weapon

systems reach the end of their useful lives and new threats emerge in

Africa, Asia, and the Pacific Rim. The problems of government manage-

ment are tougher and more complex than ever before. Finding the

right solutions will depend on our ability to clearly identify the desired

outcomes and understand how changes in processes and resources will

affect those outcomes.

We must optimize the use of available resources. Such optimization

will require wholly new strategies that take advantage of the rapid ad-

vance of information technology. At center stage will be three tech-

nology-enabled approaches:

� Advanced analytics will help us make better decisions that are

based on data-driven modeling.

� Semantic technology will help us extract valuable information from

unstructured information, such as policy documents and mainte-

nance manuals.

� Organizational networks will help us integrate the otherwise isolat-

ed contributions of people and organizations to achieve a common

purpose.

Over the past few years, LMI and the LMI Research Institute have

created and matured innovative tools and methods that align with

these areas of study. We have been applying these tools and meth-

ods—either alone or in inventive combinations—to develop unique,

yet practical, solutions to the most challenging problems facing gov-

ernment managers.


Improving Government Outcomes by Optimizing Resources

6 LMI 2011 ANNUAL REPORT

Advanced AnalyticsAdvanced analytics has become central to the government’s ability to generate insights that

lead to better decisions. Over the years, our analytical tools have become more complex, de-

veloping from simple spreadsheets to complex specialized software suites. The tools have

been developed to support many different goals (for example, to identify financial or identity

fraud, to evaluate the effectiveness of different health protocols, or to highlight savings op-

portunities by evaluating spending patterns). Regardless of the goals, advanced analytics al-

lows government managers to make their decisions based on facts, rather than bias, instinct,

or anecdotal evidence.

Using our wide array of advanced analytic techniques and tools, LMI frequently helps gov-

ernment decision makers address complex problems and challenges in an environment that

is placing a stronger priority on optimizing performance against the backdrop of diminishing

resources.

We continue to push the boundaries of analytics, and our results have helped many agen-

cies significantly improve their performance.

SysLinks™ is the first practical method for linking reliability and maintainability models with spares optimizationsfor complex networks.

Modeling Complex SystemsLMI has used advanced analytic methods to construct predictive models of a country’s

greenhouse gas emissions. LMI computational methodologists, working together with en-

ergy and environmental experts, leveraged multiple databases on country indicators of social

and economic activity. They then used econometric and statistical methods to model how

these indirect indicators might relate to a country’s GHG emissions. The LMI team used these

methods to predict (or proxy) a country’s true emissions given their level of economic activity

and implementation of green measures. In this manner, the team showed that through the

use of advanced analytics in conjunction with large amounts of data, nontraditional meth-

ods of measuring emissions can prove to be an effective tool for verifying and evaluating

GHG emitters.

Optimizing the Supply LineLMI developed two powerful tools that help managers decide what to buy when demand for

parts is either highly variable or sporadic.

The Next Generation Inventory Model, or Next Gen, abandons customary mathematical as-

sumptions about safety stock and buy quantities. Instead, Next Gen bases its decisions about

when and how much to buy directly on the times between customer demands and the de-


mand quantities. Next Gen’s revolutionary algorithms make full use of the information in the

demand stream. A new computational approach makes these algorithms fast enough to be

practical. The payoff is a reduction of up to 50 percent in inventory investment and up to

20 percent in replenishment actions (number of buys)—relative to the best known ap-

proaches—without sacrificing customer service. Alternatively, Next Gen can reduce cus-

tomer wait time 30 to 50 percent, without increasing inventory investment.

For critical items with sporadic demand, LMI developed Peak Policy. Peak Policy uses a sim-

ulation-based hedging strategy that balances the risks of either being out of stock or over-

invested in stock. Peak Policy can reduce customer wait time by 20 to 50 percent without

increasing long-term inventory investment. Alternatively, Peak Policy can reduce inventory

investment by as much as 10 percent without affecting customer service. Competing ap-

proaches, such as Croston’s forecasting method and bootstrapping, increase inventory

investment by as much as 50 percent relative to Peak Policy, and for the same level of cus-

tomer service.



Finding Meaningful Patterns in DataLMI’s analysis team supporting the healthcare sector leans heavily on its expertise in oper-

ations research, computer science, statistics, engineering, and mathematics to develop

quantitative methods for classifying and understanding patterns in data. The team’s work

is yielding valuable insights into better predicting data abnormalities and outliers. For ex-

ample, using LMI-developed techniques, we are helping a federal agency assess the likeli-

hood that healthcare utilization data submitted for risk adjustment (and payment)

purposes are inaccurate. By detecting such outliers early, we can prevent overpayment to

healthcare plans and can better identify likely candidates for audits.

Quantifying the Effects of Funding CutsThe Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics

asked LMI to develop a mathematical model to analyze the behavior of major defense ac-

quisition programs that experienced a decrease in funding (below planned levels). LMI

leveraged advanced analytic methods to develop a new model of the cost and time re-

quired to complete a development program phase, incorporating such variables as staff

productivity, costs of dividing effort into tasks for individuals or teams, costs of coordinat-

ing the work of individuals and teams, overhead, and costs of purchased materials. This

new staffing efficiency model yields reliable and specific predictions about the effect of

funding reductions.

Linking Modeling and Simulation Methods to Gain a Holistic PerspectiveModern engineering systems are complex and heavily interrelated. These systems have be-

come macrosystems (sometimes referred to as systems-of-systems or networked systems)

that depend on the complementary performance of their components to achieve a larger

common objective. In the past, analysis of the combined behavior of macrosystems was

impractical—if not impossible—because of the required complexity of the associated

modeling. LMI’s recent advances in both modeling and computational capabilities allow us

to help our clients consider a system’s availability as a whole, not just as a sum of its parts.

Advanced analytics professionals from LMI worked with a team from Georgia Tech to de-

velop the System Optimization and Network Linkage™ method. SysLinks is the first practi-

cal method for linking reliability and maintainability models with spares optimizations for

complex networks. It leverages multiple modeling and simulation methods. Each method

in isolation provides an element of insight; when combined, they provide logistical and op-

erational decision makers with dramatically more relevant and holistic analyses that can

help them build highly available and highly reliable macrosystems.


Large amounts of public-sector information are available through searchable databases and

data management systems; however, significantly more information remains locked away

in prose, graphics, video, and other media that cannot be manipulated or searched. That

unstructured information represents an untapped treasure-trove of knowledge, but unlock-

ing that data still requires rudimentary keyword queries and laborious page-by-page and

picture-by-picture searches.

Enter semantic technologies—the automatic linking of information from multiple sources

(structured and unstructured) and the assembly of search results in a way that is meaningful

to the information consumer.

LMI is developing a suite of semantic search methods and tools to help our clients quickly

gain access to information that will help them cut costs and improve performance. Our value

comes from our expertise in our clients’ respective domains of practice. Decades of experi-

ence enable us to build sophisticated domain-specific vocabularies (known as ontologies)

and semantic search rules that help our clients realize tangible efficiencies.

Semantic Technology

OpenPolicy™ unlocks information in manuals, policy, guidance, and other documents.


Finding the Hidden DataThe annual cost of corrosion to the Department of Defense (DoD) is estimated to be be-

tween $10 billion and $20 billion. LMI has been helping the Office of Corrosion Policy and

Oversight study the cost-, safety-, and availability-related effects of corrosion on our mili-

tary’s weapon systems and facilities. Unfortunately, the information we need to study re-

sides in millions of maintenance and financial records. Much of the data is contained within

unstructured text fields. The challenge is how to extract this valuable information reliably

from those fields, despite varying levels of detail and many forms of creative spelling.

With input from maintenance technicians across the military services, we developed a com-

puterized search algorithm that examines each unstructured text field to determine whether

the work was corrosion related. We enhanced the ontology by extracting the actual words

and phrases used in the maintenance records and then reviewing each to determine its rela-

tionship to corrosion. Our work developing this word- and phrase-driven ontology brought

new accuracy in understanding the larger picture of corrosion-related maintenance activi-

ties. In addition, this information is now fed back to the acquisition community so that fu-

ture designs can account for potential corrosion issues.

Validating Bid AssessmentsEach year, healthcare contractors offer Medicare Advantage plans or Section 1876 cost

plans by electronically submitting a “bid” to the Centers for Medicare and Medicaid Serv-

ices that prices the healthcare plans’ benefit offerings, describes the healthcare benefits,

and outlines the enrollee cost sharing. During the annual review process, analysts must

evaluate thousands of benefit packages for accuracy and compliance, relying heavily on

an LMI-developed software tool, AskMarty™, to analyze the bids.

To further enhance the efficiency and accuracy of our analyses, LMI implemented text

analytics to mine structured information from the notes in the benefit packages and a se-

mantic search to ensure bid compliance with ever-evolving Medicare regulations and poli-

cies. The result is an on-screen comparison of plan benefit information that is easily

deciphered by CMS analysts. The tool flags potential errors that otherwise would have to

be identified through manual inspection, improving the efficiency of the analytical staff

and the accuracy of results.


Accessing Knowledge Locked within Regulations, Manuals, and InstructionsWe have applied semantic technologies to search and retrieve information from DoD sup-

ply chain policy issuances, manuals, and instructions for the Deputy Assistant Secretary of

Defense for Supply Chain Integration. We employed OpenPolicy, LMI’s semantic search

tool, to tackle this seemingly impossible task. Our supply chain experts quickly developed

a 3,000-item ontology of words, phrases, abbreviations, synonyms, and other related con-

cepts specific to DoD’s supply chains. We then joined the ontology with the client’s large

body of supply chain documents through our automated semantic tagging process. The

result was documents that were made “smarter,” because they are associated with expert

knowledge captured in the ontology system. It is now possible to quickly identify similari-

ties and differences among multiple documents.


Whether the objective is rapid emergency response or optimized supply chain management,

collaboration within and across networks is critical, because it promotes efficiencies and

helps to overcome the hierarchical or bureaucratic boundaries that can get in the way of

mission effectiveness.

For government, managing organizational networks presents specific challenges, including

confusion over expectations, a natural desire to operate independently, reluctance to share

capabilities, and a general lack of awareness of the roles and responsibilities of other mem-

bers and organizations. LMI helps our government clients overcome these challenges and

maximize their operational efficiency.

Among the tools we use is LMI’s proprietary Organizational Catalyst for Effective Net-

works™ (OCEN™) framework, which identifies the roles and responsibilities of key network

members and integrates interagency efforts and activities.

We have applied this framework, as well as other stakeholder engagement and program

management capabilities, in efforts across government. No matter the engagement, LMI’s

work helping government improve its organizational networks leads to greater mission ef-

fectiveness.


Organizational Networks

LMI’s proprietary OCEN™ framework identifies the roles and responsibilities of key network members and integratesinteragency efforts and activities.

Safeguarding Critical AssetsLMI is helping the Assistant Secretary of Defense for Health Affairs implement the Defense

Critical Infrastructure Protection program to protect DoD assets and enable effective

response to natural and man-made disasters. To implement a risk management program,

LMI worked with a network of military departments, combatant commands, and healthcare

experts to identify the physical, personnel, and information management elements vital to

successful operations. We then connected DoD to risk management, research and develop-

ment, information sharing, and cybersecurity work groups in a national program run by the

Department of Health and Human Services. These connections are helping DoD develop bet-

ter policies and procedures for monitoring the effectiveness of the medical response net-

work and its ability to support disaster relief operations.

Optimizing Training ResourcesThe Office of the Assistant Secretary of Defense for Reserve Affairs asked LMI to develop the

Regional Integrated Training Environment, a network of installations that support total force

training requirements through coordinated training resources. The challenge was to gain


DoD-wide acceptance for the RITE concept and then to build collaboration among depart-

ment leaders and managers and establish an effective governance structure to drive success.

LMI used the OCEN framework to illustrate network relationships, identify key DoD stake-

holders, and find the best way to garner acceptance among senior leaders. We also re-

viewed other DoD governance structures and identified an existing governance body and

structure suitable for overseeing the implementation of RITE.

Linking the Vendors, Storage Sites, and UsersManaged by the Centers for Disease Control and Prevention, the Strategic National Stockpile

is designed to provide a continuous supply of essential medical items (such as antibiotics,

vaccines, antidotes, and other critical medical equipment and supplies) in the event of a

major natural or technological disaster. Since the SNS’s inception 13 years ago, LMI has pro-

vided SNS leaders with strategic and innovative thinking about how to integrate logistics,

technology, procurement, and acquisition to improve disaster preparedness and response

planning. Currently, we are integrating automatic identification technologies (such as bar

codes and radio-frequency identification tags) into the program’s Oracle-based enterprise re-



source planning system. These automatic identification technologies will act as the informa-

tional “glue” that links the dispersed network of vendors, storage locations, and organiza-

tional components into a more cohesive, efficient whole.

Improving Acquisition ManagementTo improve its stewardship of taxpayer funds, the Department of Commerce asked LMI to

evaluate its acquisition environment across all 12 bureaus. We found the bureaus lacked a

comprehensive approach for overseeing and managing acquisitions. We developed an ac-

quisition project management framework and worked with representatives from various

Commerce bureaus to network and integrate major functional areas. The resulting frame-

work provides a disciplined, repeatable, and comprehensive process for managing all Com-

merce acquisitions. Between each project phase are milestone reviews during which we help

bring together the network of affected stakeholders to assess project readiness and risk be-

fore seeking authorization to begin the next phase. With multiple stakeholders engaged,

minor issues can be resolved before they become costly problems.


The LMI Research Institute funds LMI’s innovation activities, including research projects, ac-

ademic partnerships, and outreach. Through the Institute, LMI continually works to identify

leading practices and develop practical applications for our clients.

This year, the LMI Research Institute undertook projects to refine the tools and methods

we use in advanced analytics, semantic technology, and organizational networks, as well as

to advance innovation in other areas.

LMI Research Institute

The LMI Research Institute has funded projects to advance innovation in many areas, including modeling the NationalAirspace System.


Refining our Proprietary Tools and CapabilitiesAll LMI Research Institute projects are led by members of the LMI consulting staff. Their in-

depth expertise is combined with ideas from academia and leading private-sector companies

to solve the challenges facing our government. The Institute manages the overall innovation

project portfolio to bring cross-functional expertise to bear.

Partnering with Outside ExpertsThe LMI Research Institute brings in thought leaders from top universities and industry to

work with LMI in partnerships. Our academic partnerships give us access to leading research

in supply chain, enterprise architecture, engineering, sustainability, infrastructure manage-

ment, and other areas. In addition, students and faculty members at our partner universities

have opportunities to work with us on the real-world problems of our clients. These partner-

ships are an important source of new ideas and leading-edge research for LMI; they have

provided direct value to our clients.

The Institute also invites experts to speak to our staff about pressing government chal-

lenges and future possibilities for improvements. For example, in 2011, we invited speakers

to discuss the National Academy of Engineering’s Grand Challenges, with seven recognized

leaders discussing the challenges in their respective fields. The excellent slate of speakers

provided new perspectives for LMI to consider as we develop solutions for our clients.

Investing in ResearchResearch is an essential part of the value we bring to our work and our clients, and we con-

tinue to invest heavily in it. We are expanding our network of academic partners to bring

more ideas to bolster our own expertise, and we are continuing our distinguished visiting

speaker series with experts to share their experience on “Leadership Challenges When Re-

sources Are Constrained.” Undoubtedly, these efforts will inform our future research and

advances in our tools and methods.

LMI’s mission is to help our clients find better ways of doing business to better serve their

customers—the public. The work we do at the LMI Research Institute helps us move our

clients toward a future of new possibilities—a future in which innovative ideas and solutions

improve the effectiveness of government services and save the federal taxpayer money.


Seated, left to right: Robert Dail; Nelson Ford; Michael Daniels, Chairman of the Board; and Patricia McGinnis.Standing, left to right: Jonathan Perlin; Douglas Bereuter; Kenneth Krieg; Robert Raggio; Steven Kelman; and Dave McCurdy.

At the beginning of FY11, Michael Daniels became LMI’s Chairman of the Board. He has

more than 30 years of experience in the science and technology sector. In his role as Chair-

man, he helps direct the corporation in expanding into such areas as healthcare and technol-

ogy.

In 2011, two directors retired from the Board, Douglas Bereuter and Alice Maroni. Mr.

Bereuter joined the Board in 2005 and served on the Human Resources and Compensation

Committee and the Governance and Nominating Committee. He was most recently the Pres-

ident and CEO of The Asia Foundation.

Ms. Maroni joined the Board in 2007 and served on the Audit and Finance Committee and

the Governance and Nominating Committee. Ms. Maroni, currently working for the Con-

gressional Budget Office, was previously a visiting Distinguished Fellow at The Henry L.

Stimpson Center and the former Chief Financial Officer of the Smithsonian Institution.

Corporate Governance


Members of the FY11 Board

Michael A. Daniels, Chairman of the Board and Chair of the Executive Committee. Former Chairman of

Network Solutions, former Chairman and Chief Executive Officer of Mobile365, former Chairman

of the Northern Virginia Technology Council, and former Senior Vice President of SAIC.

Robert T. Dail. President of Supreme Group, USA. Former Director of the Defense Logistics Agency

and former Deputy Commander, U.S. Transportation Command.

Nelson M. Ford, President and Chief Executive Officer. Former Under Secretary of the Army, former As-

sistant Secretary of the Army for Financial Management and Comptroller, former Principal Deputy

Assistant Secretary of the Army for Financial Management and Comptroller, and former Deputy

Assistant Secretary for Health Budgets and Financial Policy.

Steven Kelman. Weatherhead Professor of Public Management at the John F. Kennedy School of

Government, Harvard University. Former Administrator of the Office of Federal Procurement Policy

in the Office of Management and Budget.

Kenneth J. Krieg, Chair of the Audit and Finance Committee. Founder and Head of Samford Global

Strategies. Former Under Secretary of Defense for Acquisition, Technology, and Logistics.

Dave McCurdy. President and Chief Executive Officer of the American Gas Association. Former Pres-

ident and Chief Executive Officer of the Alliance of Automobile Manufacturers and former U.S.

Representative from Oklahoma.

Patricia McGinnis, Chair of the Governance and Nominating Committee. Distinguished Professor of Prac-

tice at George Washington University’s Trachtenburg School of Public Policy and Public Administra-

tion. Former President and Chief Executive Officer of the Council for Excellence in Government and

advisor to the White House on Presidential Appointee Leadership Programs during the first 2 years

of the Obama administration.

Jonathan B. Perlin, Chair of the Human Resources and Compensation Committee. Chief Medical Officer

and President, Clinical and Physician Services Group, HCA. Former Under Secretary for Health,

Department of Veterans Affairs.

Robert F. Raggio. Executive Vice President of Dayton Aerospace. Former Commander, U.S. Air Force

Aeronautical Systems Center.


Corporate Officers

Regional Directors

Front row: Donna Bennett, Senior Vice President, Resource Management; Nelson Ford, President and ChiefExecutive Officer; and William Moore, Executive Vice President, Infrastructure Management. Back row:Manik Rath, Senior Vice President, General Counsel, and Corporate Secretary; Jeffery Bennett, Senior VicePresident, Logistics Management; and Anthony Provenzano, Senior Vice President, Chief Financial Officer,and Treasurer.

Left to right: Eric Stephens, Director, Southwest Region; Linda Novak, Director, Northeast Region; RichTurner, Director, Midwest Region; and Mike Carden, Director, Southeast Region.


David Gallay

Program Leaders

Eric Gentsch John Handy

Thomas Hardcastle Shahab Hasan W. David Helms

Roger ErvinChristopher AlligoodChristopher Alligood Debra DevilleDebra Deville

William Ledder


Program Leaders

Sue Nicholas

John Selman Dennis Wightman

Joseph Zurlo

William Ledder

Robert Schmitt

Raymond SchaibleRaymond Schaible


LMI’s corporate officers guide and direct all of our activities. We provide our consulting services throughthree operating units: Infrastructure Management, Logistics Management, and Resource Management.This section highlights the general structure and capabilities of those units.

Infrastructure ManagementCenter for Health Reform, W. David Helms, Director. Areas of focus are business solutions and services (suchas accountable care organizations, insurance exchanges, healthcare payment reform models, and high-risk pools) for federal and state agencies.

Energy and Environment, John R. Selman, Program Director. Areas of focus include energy program planningand management, climate change and sustainability, greenhouse gas management and reporting, chem-ical and biological program support, environmental and safety management systems, and occupationalhealth and safety planning and management.

Health Information Technology, Maria E. Gaboury, Director. Areas of focus include program management,strategic planning, business case and alternatives analysis, acquisition, contract management, budgetand finance, and process management for implementations.

Health Systems Management, John B. Handy, Program Director. Areas of focus include analysis and assess-ment of the Medicare Advantage program, medical logistics planning and support, public health emer-gency planning and response, agricultural emergency planning and response, management of healthcareservices delivery, wounded warrior support programs, and healthcare management.

Infrastructure and Engineering Management, David R. Gallay, Vice President. Areas of focus include facilitiesmanagement, construction project management, engineering economics and cost engineering, infra-structure outsourcing and privatization, federal installation management, and military base operatingsupport.

Intelligence Programs, Christopher L. Alligood, Program Director. Areas of focus include intelligence capabili-ties within national security organizations, use of Government 2.0 social software in the IntelligenceCommunity, tradecraft and analytic methods, training in core Intelligence Community functions, and in-telligence program management and policy advice.

International, Commercial, and Civil Government, Roger M. Ervin, Vice President. Area of focus is strategic busi-ness development to expand LMI consulting services into new markets ranging from federal, state, andinternational civil government segments to commercial opportunities in which LMI offers competitiveproducts.

Logistics ManagementLogistics Analysis, Eric L. Gentsch, Program Director. Areas of focus include logistics research and develop-ment, logistics business case analysis, acquisition logistics strategy and implementation, integrated logis-tics support planning, logistics engineering, performance-based logistics design and implementation,operations and support cost analysis, and emergency management logistics.

Logistics Services, William S. Crowder, Director. Focus areas include operational contract support integration;worldwide logistical doctrine development, planning, and operations support; logistics concepts of oper-ations and sustainment for new technologies; advanced statistical analysis for casualty estimation; logis-tics war gaming; and modeling and simulation.

Consulting Services


Logistics Technology, William R. Ledder, Program Director. Areas of focus include distribution and transporta-tion business processes, automatic identification technology, satellite and other in-transit tracking appli-cations, asset visibility, and logistics information system program support.

Maintenance and Readiness Management, Dennis J. Wightman, Program Director. Areas of focus includeweapon system and equipment maintenance policy, requirements, and operations analysis; corrosion im-pact assessment; public- and private-sector integration and partnering; sustainment industrial baseanalysis; manufacturing resource planning; repair capability establishment; and weapon system readi-ness analysis and reporting.

Operational Logistics, Raymond A. Schaible, Vice President. Areas of focus include force projection and distri-bution policy; strategic mobility programs and studies; interagency, multinational, and coalition logistics;defense export and cooperation policy; defense strategy and policy; capacity development; and supportof Department of State and Department of Defense transition planning in Iraq and Afghanistan.

Strategic Logistics, Debra L. Deville, Program Director. Areas of focus include logistics strategic planning, logistics transformation planning and program support, joint logistics capability portfolio management,logistics force design and development, and National Guard and Reserve equipping and resourcinganalysis.

Supply Chain Management, Robert W. Schmitt, Program Director. Areas of focus include design, execution,and control of supply chain resources; supplier relationship management; green procurement; supplychain risk management; spares optimization; demand forecasting; inventory modeling; costing and levelsetting; material management information technology solutions; supply chain performance manage-ment and metrics; and supply chain training.

Resource ManagementFinancial, Acquisition, and Resource Management, Shahab Hasan, Program Director. Areas of focus include re-source management strategies, acquisition and grants policy, standardization, financial management, financial system requirements and compliance, accounting classification structure, cost analysis, opera-tions research, economic analysis, statistical analysis, modeling and simulation, analysis of alternatives,and cost-benefit assessments.

Information Management, Thomas P. Hardcastle, Program Director. Areas of focus include information tech-nology program management, independent verification and validation, enterprise architecture, capitalplanning and investment control, strategic planning and business case analyses, earned value manage-ment, data management, and information assurance.

Organizational Improvement, Sue E. Nicholas, Program Director. Areas of focus include strategic planning, or-ganizational design and assessment, continuous process improvement, human capital strategic planning,workforce planning and modeling, training and leadership development, performance management,communications and change management, and graphic facilitation.

Systems Development, Joseph M. Zurlo, Program Director. Areas of focus include life-cycle software develop-ment, systems integration, mobile and social computing, “big data” analysis, semantic technology,cloud migration and cybersecurity, virtual data center consulting, scientific surveys and data collection,and economic and statistical analysis.


Financial and Other Data

Revenue

Dayton,

Aberdeen, MD

Dayton, OH

Honolulu, HI

ashington, DCNewport News, VA VAPetersburg, VA VA

sville, AL

altimore, MDhanicsburg, PA PA

San Ant tonio,

is, MO

ntgomMontgomery,y, AL

FY07 FY08 FY09 FY10 FY11

$145

$163

$176$182

$190

Note: Revenue is in $ million.

Locations


DoD 53%

Other Civilian 18%

Intelligence10%

Healthcare7%

Other NationalSecurity 7%

Energy andEnvironment

5%

Clients

Master’s 60%Bachelor’s 27%

Other 7%

PhD 6%

Staff Education

Note: Includes consulting staff only.

Satellite Offices

7104 Ambassador Road, Suite 280Baltimore, MD 21244

4696 Millennium Drive, Suite 200Belcamp, MD 21017

130 Temple Lake Drive, Suite 2Colonial Heights, VA 23834

6767 Old Madison Pike, Suite 275Huntsville, AL 35806

5010 Ritter Road, Suite 123Mechanicsburg, PA 17055

11837 Rock Landing Drive, Suite 200Newport News, VA 23606

1777 NE Loop, Suite 808San Antonio, TX 78217

703 Seibert RoadScott AFB, IL 62225

HeadquartersLMI Offices2000 Corporate RidgeMcLean, VA 22102-7805

703.917.9800800.213.4817

[email protected]

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lmi 2011 annual report

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