Business is taking off for this US Department of Defense contractor. Mark Taylor tells us why.

Before a pilot can take to the skies, the US Department of Defense requires rigorous training on the ground, and sophisticated simulation technology makes this possible. That’s where J.F. Taylor steps in.

Founded in 1983, J.F. Taylor, Inc. designs, engineers, and manufactures hardware and software systems for aircraft training and simulation devices. During its first 10 years in business, the privately owned, family-run company focused on professional engineering services for the government but has evolved into a full-service Department of Defense contractor, providing not only technical expertise, but also professional and administrative support to get projects done on time and on budget.

“As we grew, some of the service contracts we wanted to pursue required administrative and logistics support in addition to engineering services, so we added staff who could help us meet these requirements. To this day, we don’t typically go after a project unless it involves engineering, but we evolved to meet all of our clients’ needs,” said Mark Taylor, vice president of the Lexington Park, Md.-based company.

Mark Taylor

Two teams, one company
Although 100% of J.F. Taylor’s projects are related to defense engineering, Taylor describes the company as having two arms. Many employees work at the Patuxent River Naval Air Station in Maryland on projects for the Naval Air Warfare Center and Navair. Navair is a US Navy command for which J.F. Taylor provides engineering, development, testing, evaluation, and management services for airborne weapons systems and flight simulators through Navair’s Manned Flight Simulator Laboratories.

J.F. Taylor got involved in simulation technology with the Patuxent River Naval Air Test Center in the late 1980s with a P-3C Update IV simulator project. By the time the government cancelled the P-3C Update IV project, the company had recruited staff and built a simulation laboratory. “We transitioned a lot of those people over to Manned Flight Simulator at Patuxent River, which at the time was transitioning away from government-only projects. It needed to grow, so it was bringing in contractors. We captured a strong foothold in that program area, and Manned Flight Simulator remains one of our biggest clients,” said Taylor.

Most of J.F. Taylor’s engineering services contracts are won competitively and are staffed as needed on a cost-reimbursable basis, meaning the client pays the company based on cost, plus a small fee.

Other J.F. Taylor employees work at the Lexington Park manufacturing facility. Most projects out of this office are fixed-price contracts for the government to build flight simulators and components. “At the current time, we do a fair amount of work for other prime contractors and some direct work for the government,” said Taylor.

Partner or competitor
The aircraft trainer market is interesting in that J.F. Taylor either competes or collaborates with the same companies, depending on the project. “Although we consider ourselves on par with the big boys, such as CAE, Lockheed Martin, and Boeing, these companies often consider us as partners when they bid on a project. Because of our pricing advantage, many of them would rather work with us than against us,” said Taylor, adding that J.F. Taylor can often charge less than its competitors due to its smaller infrastructure.

Sometimes, J.F. Taylor’s size works against it. With only 250 employees, it falls within the small business category, meaning it cannot compete effectively for some large projects. “Although we are capable of completing a particular project, it makes more sense for us to look at a teaming arrangement where we can do part of the job because the government might not think we are big enough.”

However, in certain bidding processes, J.F. Taylor has an advantage. For instance, Navair Orlando has awarded an eight-year contract to a dozen companies who compete amongst each other for specific projects. Of the companies awarded the contract, four are small businesses (500 employees or less), for which certain projects are set aside. “We would then compete against the three other small businesses for any of those projects,” said Taylor.

Enabling success
J.F. Taylor has seen significant revenue growth—an average of 25% each of the past five years. According to Taylor, the company has never merged with or acquired another company and has no plans to do so. “Since inception, we set out to grow organically and incrementally. We’ve seen too many companies grow too fast and lose their edge.”

In addition to management’s ability to win profitable contracts that are fun and challenging for employees—and a dose of good fortune—Taylor attributes the company’s growth to a knack for recruiting and retaining talented employees. “We help our employees succeed, whether that is providing them with the right tools or career development opportunities. It’s such a simple idea, but it’s amazing how many companies don’t do that,” said Taylor.

J.F. Taylor’s can-do atmosphere starts with a foundation of mutual respect. According to Taylor, all employees are expected to show respect for their peers, no matter where they are on the org chart. “I don’t care what your job is—looking down on other employees does not promote an environment where everyone can succeed,” he said. A cash-bonus program for jobs well done offers additional motivation.

Taylor noted that many government contractors have a habit of laying off employees once a contract is completed, but J.F. Taylor keeps them busy with new assignments instead. “Our employees feel a deep sense of stability, and our customers feel secure knowing that employees they have worked with well may be available for future work.”

The company further promotes a productive work atmosphere by fully supporting members of its middle management team in their decisions. According to Taylor, these individuals are chosen for their ability to best represent the company, “so we trust their opinions and actions and back them up all the way, especially if they receive opposition from our customers or other employees.”