Revenue and Accounts Receivable

12 Months Ended

Dec. 31, 2015

Revenue and Accounts Receivable [Abstract]

Revenue and Accounts Receivable

Note 5. Revenue and Accounts Receivable

Revenue resulting from contracts and subcontracts with the U.S. Government accounted for 97.3%, 96.1%, and 98.3% of consolidated revenue in 2015, 2014, and 2013, respectively.  As our primary customer base includes agencies of the U.S. Government, we have a concentration of credit risk associated with our accounts receivable, as 99.9% of our billed accounts receivable were directly with U.S. Government customers. While we acknowledge the potentially material and adverse risk of such a significant concentration of credit risk, our past experience of collecting substantially all of such receivables provide us with an informed basis that such risk, if any, is manageable.  We perform ongoing credit evaluations of all of our customers and generally do not require collateral or other guarantee from our customers.  We maintain allowances for potential losses.

The components of accounts receivable are as follows (in thousands):

	December 31,
	2015			2014
Billed accounts receivable	$	15,340		$	15,447
Unbilled receivables		4,190			7,447
Allowance for doubtful accounts		(485	)		(372	)
	$	19,045		$	22,522

The activities in the allowance for doubtful accounts are set forth below (in thousands):

	Balance Beginning of Year		Bad Debt Expenses (1)		Recoveries (2)		Balance End of Year
Year Ended December 31, 2015	$	372	$	113	$	--	$	485
Year Ended December 31, 2014	$	321	$	51	$	--	$	372
Year Ended December 31, 2013	$	319	$	2	$	--	$	321

(1)  Accounts receivable reserves and reversal of allowance for subsequent collections, net

(2)  Accounts receivable written-off and subsequent recoveries, net

Revenue by Major Market and Significant Customers

We derived substantially all of our revenues from contracts and subcontracts with the U.S. Government. Revenue by customer sector for the last three fiscal years is as follows:

	2015				2014				2013
					(dollar amounts in thousands)
Federal	$	117,328	97.3	%	$	122,549	96.1	%	$	203,917	98.3	%
State & Local, and Commercial		3,306	2.7	%		5,013	3.9	%		3,477	1.7	%
Total	$	120,634	100.0	%	$	127,562	100.0	%	$	207,394	100.0	%