By Chris Kirkham
Washington Post Staff Writer
Tuesday, July 18, 2006; D04

The Fairfax County Economic Development Authority on Monday opened a Silicon Valley office aimed at luring technology firms to the Washington area in pursuit of federal contracts.

The move also comes at a time when poor earnings reports may prompt tech companies to seek more stable clients outside the private sector. While many Silicon Valley firms already compete for government contracts, the county hopes to persuade those who may be on the fence.

"It's not a big secret -- people know about opportunities with Homeland Security and Defense," said Gerald L. Gordon, president and chief executive of the development authority. "But a lot of these companies are in the decision-making process. We think there are a lot of opportunities in Fairfax, and we think we're the only ones telling that story."

Wayne Schell, president and chief executive of the California Association for Local Economic Development, said it's typical for outside representatives to entice Silicon Valley companies to relocate.

"They come in, they last for a year, and then they go home," Schell said, noting that recently a dozen states had set up shop in the area.

He said Fairfax County's goal is a bit different, however, and could be useful for networking between tech firms and larger contractors.

The one-man operation in Palo Alto, Calif., will be staffed by Leo J. Campbell, a former consultant with the U.S. Postal Service who oversaw development of information tracking technologies. He'll be networking with technology councils and will help companies navigate the often-confusing process of finding and securing federal contracts.

The Silicon Valley branch will add to the economic development authority's satellite offices in India, Germany, South Korea, Israel and London -- a network of county offices that exceeds the development efforts of many states.

California technology companies "felt disproportionately the pain of the dot-com bubble, and now they are nervous about the next downturn," said Anirban Basu, an economist and chief executive of the Sage Policy Group who studies the Washington economy. "If the civilian front will not meet that because demand is waning, then it makes sense for them to begin looking at the federal space."