Charles Lyons-Burt
Doug Magee is a known quantity and highly respected staple of the government contracting industry, having previously worked at KBR, DynCorp International, Michael Baker International and Akima. For the last two years, he has led the government services segment of Day & Zimmermann.
We last spoke with Magee in Q4 of 2023 and were eager to catch up with him. Since that conversation, the company has added a new business unit to its portfolio called Emerging Markets, which is tasked with managing new technology initiatives D&Z has undertaken.
The company also won a $30 billion Department of Energy contract as a joint-venture partner in June 2024. Magee spoke about the award during our conversation, and also thoroughly described the way he and the company see the GovCon industry right now, where the opportunity areas lie and the unique ways D&Z is filling need areas for the federal government and military.
ExecutiveBiz: To start, what’s the most impactful trend you’re currently seeing in the GovCon market?
Doug Magee: From the perspective of our business, we’re observing a significant push toward modernization, which is driving transformative changes shaping our industry. The market is increasingly emphasizing modernization and technology integration. Agencies are seeking contractors who can deliver advanced solutions in areas like artificial intelligence, cybersecurity, advanced robotics and data analytics. These changes are driven not only by budgets but also by the need to enhance operational efficiency and improve service delivery.
From a sustainability and resilience standpoint, there’s a sustained demand for contractors to support initiatives addressing climate change, renewable energy and infrastructure improvements. Agencies are prioritizing national security goals amid societal and political pressures, including evolving conflicts in an unstable geopolitical environment.
In the military modernization sector, we’re actively designing multiple microgrids for the Department of Defense across the continental United States. Our architecture and engineering group, Mason & Hanger, is leading several projects to enhance energy resilience and security at military installations. These projects utilize large-scale paralleled natural gas generators, photovoltaic arrays, and battery energy storage systems. Mason & Hanger has more than 40 years of experience supporting energy sustainability and resilience, including designing embassies worldwide. This includes a focus on net-zero footprints in resource-constrained regions and facilities resilient against weather, power, or security threats.
Another significant trend in the GovCon market is the growing emphasis on teaming partnerships and joint ventures to meet increasing demands. Companies are leveraging these collaborations for scalability and bandwidth, demonstrating a commitment to delivering exceptional value in a dynamic security landscape. For example, our architecture and engineering group is contributing to NASA’s modernization efforts, including designing the first vertical wind tunnel in 80 years at the Langley Research Center in Hampton, Virginia.
Our partnership with BL Harbert International exemplifies how complementary experience can bridge gaps and enhance capabilities. Together, we aim to deliver mission-critical solutions for national defense and modernization initiatives on the home front.
With a new administration, we anticipate a shift from globalism to a more nationalistic focus, increasing pressures on NATO and affecting projects like manned systems. Modernization efforts are also likely to include unmanned aerial systems, automated drones, AI and replenishing munitions stockpiles depleted in Ukraine. Enhancing munitions production with automation will improve scalability, flexibility and safety.
On the security front, the fundamentals of providing protective services remain unchanged, but they are being enhanced with technologies like drones, cellular infrastructure, cybersecurity tools and contraband detection services. These advancements will continue driving success in preventing and deterring potential threats.
EBiz: How are you seeing GovCon organizations respond to that trend?
Magee: Companies like ours—Day & Zimmermann, SOC and Mason & Hanger—have the opportunity to meet customers’ modernization needs. We’re making strategic investments in technologies such as advancements in AI to include: machine learning, augmented reality and virtual reality. These efforts focus on key areas to support modernization and ensure relevance for mission-critical needs.
One example is our use of augmented reality to improve design efficiency. This emerging technology allows clients to now visualize project designs in an augmented reality environment, enabling them to catch design considerations early in the process. This capability offers added value and enhances important collaboration with clients. For instance, our drones, equipped with LiDAR, can scan buildings inside and out.
Our investments in advanced technologies also include automation, digital twins, cloud computing and drones. These tools significantly enhance operational efficiency and service delivery for our clients.
Teaming partnerships and joint ventures remain vital for addressing complex needs. By bringing together diverse strengths, these collaborations provide a comprehensive suite of stronger solutions. Additionally, mergers and acquisitions will likely continue, driven by lower interest rates and the need to consolidate industry partners to build capacity.
Another critical focus is customer engagement. As programs like the Department of Energy’s initiatives evolve, inter-agency partnerships and collaboration will play a central role. Listening to customers’ daily challenges is essential for developing mission-critical tools and ensuring we meet their needs effectively.
Talent acquisition and retention in the engineering space remain top priorities. The shortage of skilled engineers requires innovative strategies to attract and retain top talent, ensuring we can continue delivering on our commitments.
Overall, these trends underscore the importance of agility, innovation, and a proactive approach to navigating the evolving demands of the GovCon market. By staying ahead of these changes, we can effectively support our customers’ modernization goals.
EBiz: What do you think are the most pressing national security threats we’re facing today? How is Day & Zimmermann addressing these threats?
Magee: One major issue we’re seeing is cybersecurity threats. Ongoing cyberattacks by state and non-state actors continue to pose a threat to critical infrastructure, government systems and the private sector. These cyber attacks lead to data breaches, financial losses, service disruptions and even threats to power grids. We’ve fortified our integrated security capabilities through strategic investments in automation, cyber technology, drones and cellular infrastructure. Addressing these risks is a priority for us and the industry as a whole.
Geopolitical tensions among global powers, particularly involving the U.S., Russia and China, are creating an unstable global environment marked by territorial conflicts. Examples include Israel, Ukraine and Taiwan, which drive military planning and actions. With extensive experience in 174 countries, we provide robust support to U.S. interests and allies worldwide. In Israel, for instance, we’ve been the leading security provider under the Worldwide Protective Services contract since 2016. Our teams work around the clock to ensure the safety of U.S. personnel and facilities, often under complex and high-stakes conditions.
The proliferation of weapons of mass destruction is another pressing global threat. Chemical, biological, radiological, nuclear and explosive weapons remain a significant concern, particularly nuclear threats from countries like Russia, North Korea, Iran and China. The trafficking of unsecured stockpiles adds to these risks. Efforts to mitigate these dangers include programs like the START Treaty and negotiations on new arms control agreements. However, instability in regions like Syria and Ukraine raises concerns about weapons stockpiles.
We have over 75 years of experience providing safeguards, security and emergency management for critical national assets. For example, through DOE’s $30 billion Pantex contract, our teams manage security and operations at sites protecting special nuclear materials.
Extremist groups also remain a critical concern. While traditional terrorist threats have evolved, domestic extremism and lone wolf attacks pose ongoing risks. International terrorist organizations and non-state actors remain active, especially in unstable regions like Syria and parts of Africa.
Lastly, misinformation campaigns orchestrated by foreign adversaries are a growing threat to national security and societal stability. These efforts aim to manipulate public perception, create discord and undermine trust in democratic institutions through false narratives and propaganda.
Addressing these diverse challenges requires agility, innovation and a commitment to safeguarding critical assets and interests globally.
EBiz: What are Day & Zimmermann’s core values? How do you think these values translate into continued success and growth in the GovCon market?
Magee: Day & Zimmermann’s core values—safety, diversity, integrity and success—support everything we do, including our mission success. These values are part of why I joined the company. I believe it’s important to understand, embrace and live by the core values an organization represents. I’m grateful our teams also embrace these values, contributing to and upholding them as we serve our mission each day.
When I visit locations like Qatar, Israel and other overseas sites where we perform our mission, I’m consistently inspired by how these values are reflected in our daily operations. For more than 124 years, Day & Zimmermann has upheld these values, driving our purpose and patriotism in designs, operations, systems, ordnance and security, all focused on preventing and deterring potential threats.
Safety is our top priority. Our unwavering devotion to safety and security is a promise we uphold fiercely for customers and teams worldwide. It is the cornerstone of creating the safest environments possible as we navigate complex challenges in remote, austere and high-threat areas.
Integrity is deeply embedded in our culture. It reflects our unrelenting commitment to the Day & Zimmermann promise. We do what we say, and we prioritize the right path for our mission, our services, our customers, and our teams.
Diversity is not limited to gender or race. Within the government services portfolio, it also includes the varied backgrounds of the people we hire. We attract top talent from the U.S. government community and beyond, bringing a level of diversity that strengthens the security mission we support.
Finally, success is the ultimate outcome. It drives us forward and reflects the results of living our values every day.
