Across the board changes for longtime federal procurement consultant

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In the wake of a purchase by Washington Management Group, Federal Sources experiences an exodus of top managers.

Housecleaning starts at the top when one company buys another.

James Kane, president of Federal Sources Inc. since June 2000, has left the company effective Dec. 8, just 45 days after Washington Management Group acquired the McLean, Va., federal procurement consultant.

'A couple of weeks after the acquisition, WMG indicated they wanted me to stay on but in a different role,' Kane said. 'We both worked in pretty good faith to determine what that new role would be, but it was pretty clear we couldn't come to an agreement.'

Kane said he's already lined up his next position but give further details.

'Suffice it to say, I will be very engaged in the government IT market,' he said. 'I really have an awful lot of respect and admiration for Fed Sources. I think what they've accomplished over the last couple of years is really something. I'm ready to move on.'

Joe Caggiano, son of Paul Caggiano, chairman of WMG of Washington, will be the new chief operating officer beginning next week, according to executives at Fed Sources.

Within three weeks of the acquisition, WMG dismissed Howard Stern, Fed Sources' senior vice president, who had headed up the consulting unit. Stern left Nov. 14.

'We had a 35-second conversation,' Stern said of his meeting with Bill Gormley, president of WMG. Cost cutting was cited as the reason for his termination, Stern said.

Kane, on the other hand, said that the consulting business was one of Fed Sources' real successes over the past three years and was on track to grow by $1 million this year.

Terri Beck, Fed Sources' vice president of business development and former director of the Industry Advisory Council, confirmed that she will be leaving the company at the end of the year. She is joining ConnellyWorks, a new marketing and communications firm in Fairfax, Va., serving the government IT market.

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