Newspaper article THE JOURNAL RECORD

Edmond-Based DRG Lands Air Force Contract for More Than $50M

Newspaper article THE JOURNAL RECORD

Edmond-Based DRG Lands Air Force Contract for More Than $50M

Article excerpt

DRG, the rebranded Delaware Resources Group, recently landed a U.S. Air Force aircrew training contract so lucrative that it lifted the company out of "small business" status.

On Jan. 3, DRG officially announced that the Edmond-based company won an air combat command fighter training contract. The five-year contract is in excess of $50 million, according to a statement released by the company.

This agreement places DRG in charge of the training and education for USAF's F-15, F-15E, F-16, F-22, and soon the F-35 aircraft. The latest success is part of an overall two-year growth spurt that DRG Chairman and CEO Phil Busey cites at more than 200 percent.

"Over 10 years, we have grown from two employees to almost 600 in 35 locations nationally," he said. "We have close to 200 employees in Oklahoma alone."

Busey said that while consulting in 2001 and 2002, he noticed some subcontracting models at Johnson Space Center that he felt could be re-created to support defense contracting. The low-cost solution takes employees under subcontracting and offers small business set-asides, he said.

"Boeing saw the model and was interested in it because we met several small business categories - minority small business, Native American incentive - and we could be a lower-cost provider to them, which would let them be much more competitive in their contract proposals," Busey said.

DRG is currently prime contractor on three major aircraft programs. It also has contracts for AWAC E-3 mission crew training and Air Combat Command, which Busey characterized as sort of like the Federal Aviation Administration of the Air Force.

"We formed a teaming relationship with Boeing where they work with us, but we are priming," said Philip Busey Jr., senior vice president of public relations and government affairs.

Therein lies the difference for DRG, which had previously been a subcontractor to Boeing.

"That's kind of a phenomenon," said retired Air Force Lt. Gen. Richard Burpee, of the role reversal between Boeing and DRG. …

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