2022 Procurement Playbook - DLA (03/4/2022)

FEDERAL GOVERNMENT
CONTRACTING
PROCUREMENT
PLAYBOOK
2022 WEBINAR SERIES
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ABOUT THE SERIES:
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PROCUREMENT RULES, REGULATIONS & NUANCES
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HEAR FROM THE GOVERNMENT AND INDUSTRY ABOUT DOING BUSINESS
WITH THE AGENCY/DEPARTMENT. GAIN INSIGHT ON SALES AND CAPTURE
STRATEGIES, LEARN ABOUT TRENDS, ACQUISITION FORECAST, AGENCY
EVENTS, SET-ASIDE OPPORTUNITIES & MORE!

WHAT FEDERAL
CONTRACTORS
NEED TO KNOW
ABOUT COVID
MANDATES
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THURSDAY, March 17, 2022
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48666827260683

Federal Government Contractors
IN-PERSON NETWORKING EVENT
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THANK YOU TO OUR SPONSORS

 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
THIS PROCUREMENT TECHNICAL ASSISTANCE CENTER IS FUNDED IN PART THROUGH A COOPERATIVE AGREEMENT WITH THE DEFENSE LOGISTICS AGENCY.

YOUR SOURCE
FOR
SUCCESSFU
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To Learn More, Please Visit
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david@fbcinc.com
240-841-2210
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May 20, 2021, Market Connections, Inc.

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No Matter Where You Are on
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DOING BUSINESS WITH
DLA
DEFENSE LOGISTICS AGENCY

MEET OUR PANELISTS

DATA PERSPECTIVE:
ARCHISHA MEHAN
AMEHAN@GOVSPEND.CO
M

GOVERNMENT
PERSPECTIVE:
CHRISTOPHER HALL
CHRISTOPHER.HALL@DLA.MI
L

M&A PERSPECTIVE:
PAUL KLICK
PKLICK@MCLEANLLC.CO
M

Doing Business With The US Federal Government Hello@JenniferSchaus.com
Business Opportunities & Outlook
FEDMINE -

Fedmine's mission is to bring accurate information, unmatched
transparency and clear accountability to federal government contracting.
Founded in 2004, Fedmine is a federal market intelligence platform that
provides simplified access to the most comprehensive federal contract data
sets – allowing reporting & analysis not previously possible.
Fedmine is now part of GovSpend, the largest provider of data and
Purchase Orders in the State, Local, and Education market.
Our Mission is Simple...

DLA – Defense Logistics Agency
DLA is the nation’s combat logistics support agency and manages the global
defense chain for the 5 military services, 11 combatant commands, and other
federal, state and local agencies and partners.
Major Subordinate Commands are:
• DLA Aviation
• DLA Troop Support
• DLA Disposition Services
• DLA Land and Maritime
• DLA Energy
• DLA Distribution

DLA – Strategic Plan
Vision:
“As the Nation’s Combat Logistics Support Agency and valued partner, we are
innovative, adaptable, agile, and accountable – focused on the Warfighter Always..”
Five Lines of Effort, over the next 5 years:
• Warfighter Always
• Support to the Nation
• Trusted Mission Partner
• Modernized Acquisition and Supply Chain Management
• Future of Work
Link to the Strategic Plan

DLA – Contracts Awarded
DLA awarded $39.1B in contracts in FY 21 to 10,543 companies,
compared to $42B in FY 20– link to report
FY 2021 FY 2020 FY 2019 FY 2018
97AS - DEFENSE LOGISTICS AGENCY (DLA) $39,148,677,752 $41,976,132,610 $44,211,049,771 $45,460,124,120

Top Companies
Top NAICS

DLA – Small Business Contracts Awarded
In terms of contracts
awarded as Small
Business in FY 21 $13.3B
was awarded to 8,245
companies – link to report

DLA– Contracts Awarded – Small Business

DLA – Small Business
Top PSC
Top NAICS

$2.2B was awarded under the National Interest Action Code Covid-19 in FY 21 to
757 companies – link to report
COVID 19
FY 2022 FY 2021 FY 2020
97AS - DEFENSE LOGISTICS AGENCY (DLA) $1,457,237,661 $2,238,117,718 $2,402,415,768

DLA – Top Categories

DLA– Top GWACs
GWAC FY 2021 FY 2020 FY 2019
DLA SOE TLSP $1,258,026,357 $0 $0
DLA JETS $547,810,270 $449,000,164 $411,099,322
SIISS $118,720,898 $89,902,438 $5,963,468
NASA SEWP V $108,315,275 $122,160,566 $69,174,985
OASIS Unrestricted POOL 1 $5,399,591 $16,264,333 $11,991,096
Check out the companies winning awards under the SOE TLSP (Special Operations Equipment,
Tailored Logistics Support Program) - link here

Opportunities
Opportunities can be:
• New opportunities based on new initiatives
• Dependent on agency need and funding availability
• Contracts that are expiring that could be recompeted
Where do you get the information:
• Budget and Program information
• Look at the Pre-Solicitations and Sources Sought Notices in sam.gov, at the agency level
• Create expiring contract searches based on what you do!
• If you are on an IDIQ/GWAC/BPA then look at task orders that are expiring on these
vehicles

DLA – Expiring Contracts - OTSB
$8.9B in Mod 0
contracts
awarded as Other
than Small
Business expires
in the next 12
months

DLA– Expiring Contracts - OTSB

DLA – Expiring Contracts – Small Business
$6B in contracts awarded as
small business expire in the next
12 months

DLA – Expiring Contracts – Small Business

DLA – Opportunities
Save your searches, follow opportunities – Respond to Sources Sought and Pre-Solicitations
Link to DLA forecast page

DLA
Inside Perspective From The Government

MAIN LINK TO AGENCY / DEPARTMENT:
https://www.dla.mil/
LINK TO SMALL BUSINESS OFFICE:
https://www.dla.mil/SmallBusiness/
ABOUT THE SMALL BUSINESS OFFICE:

LINK TO ACQUISITON FORECAST:
https://business.defense.gov/Small-Businesses/Acquisition-Forecasts/
GOVERNMENT – ACQUISITION FORECAST:

LINK TO SBA SCORECARD:
https://www.sba.gov/document/support-department-defense-contracting-scorecard
GOVERNMENT – SBA SCORECARD:

What is DLA?

Small Business Contracts > $13 billion for FY21

Quick Facts About DLA
SUBSISTENCE
CLOTHING AND TEXTILES
CONSTRUCTION AND EQUIPMENT
MEDICAL
INDUSTRIAL HARDWARE
AVIATION SYSTEMS
LAND SYSTEMS
MARITIME SYSTEMS
FUEL/ENERGY
26,000
ABOUT
Manages the supply chains for food,
textiles, construction material, industrial
hardware and medical supplies and
equipment, including pharmaceuticals.
Disposes of excess property by
reutilization, transfer and
demilitarization; conducts
environmental disposal and reuse.
Provides storage and distribution
solutions/management,
transportation
planning/management, logistics
planning and contingency
operations;
operates a global network of
distribution centers.
Manages the supply chain for
aviation weapons systems repair
parts, flight safety equipment, maps,
environmental products and
industrial plant equipment.
Manages the supply chain for
ground-based and maritime
weapons systems repair parts,
small arms parts and fluid-
handling systems.
Manages the supply chain for petroleum and
lubrication products, alternative fuel/renewable
energy, aerospace energy; provides fuel
quality/technical support, fuel card programs and
installation energy services.
DLA TROOP SUPPORT
DLA DISPOSITION SERVICES
DLA DISTRIBUTION
DLA AVIATION
DLA LAND & MARITIME
DLA ENERGY
DLA PERSONNEL NINE SUPPLY CHAINS
SIX MAJOR SUBORDINATE COMMANDS
ABOUT
4
26,000

Resources
www.dla.mil/SmallBusiness/Contact/
www.dla.mil/SmallBusiness/ www.dla.mil/Small-Business/Resources/Outreach-
Calendar/
www.dla.mil/Info/Strategic-Plan/Industry-
Engagement-Plan/DemandForecast/

FEDMINE -
M&A Activities Within Top Contractors
M&A ACTIVITY - DLA

FEDMINE -
M&A ACTIVITY - DLA
Paul Klick
Managing Director
TODAY’S SPEAKER
Paul Klick, a Managing Director at The McLean Group, has nearly 25 years of
investment banking experience and has completed over 80 sell- and buy-side M&A,
capital formation and advisory assignments. Mr. Klick joined The McLean Group in
2018 to help lead the firm’s efforts serving clients in the technology, media and
telecom (TMT) sectors.
Prior to joining The McLean Group, Mr. Klick was a Managing Director at Evergreen
Advisors Capital and Outcome Capital, both middle market investment banks
providing merger & acquisition advisory services for companies within the TMT
sectors. Mr. Klick started his career at Friedman Billings Ramsey where he spent nearly
fifteen years working on mergers & acquisitions and equity and debt offerings for
financial services, real estate, technology and communication companies.
Mr. Klick received a Bachelor of Business Administration degree with a concentration
in Finance from the Cox School of Business at Southern Methodist University.

M&A ACTIVITY - DLA
THE MCLEAN GROUP
The McLean Group is a 25-year-old boutique investment bank and financial services firm focused on the Defense, Government &
Intelligence (DGI); Physical & Cyber Security; Critical Infrastructure; and Maritime Transport & Facilities markets. Our 60+ professionals
bring deep industry experience and relentless execution to every client engagement. We provide solutions that blend financial creativity
with operational expertise. Whether we are providing transaction advisory, valuation opinions, or growth capital, our services are
unmatched in these core markets.
Our clients are special, and their missions are often vital to national security. They are required to be excellent at all times, and they
expect the same from their transaction advisor.
HIGHLY SPECIALIZED BOUTIQUE INVESTMENT BANK
Our trusted team of financial professionals provides middle-market clients with transaction advisory services, business valuation services,
and growth capital to help them reach their short and long-term goals.
CORE BUSINESS
KEY STATISTICS
Mergers &
Acquisitions
Sell-Side Advisory
Buy-Side Support
Corporate Divestures
Leveraged Transactions
Exit Strategy Plans
ESOPs
Valuation
Advisory
Business Valuations
Complex Securities Valuations
ESOP Valuations
Estate & Gift Valuations
Impairment Testing
Portfolio Valuations
Purchase Price Allocations
Tangible Asset Valuations
Fairness / Solvency Options
Growth
Capital
Capital Infusion
> $6B
Total Transaction Value
Since 2010
130+
Closed M&A Engagements
Since 2010
400+
Annual Valuation Clients
25+
Years Supporting Our Clients
3
Dedicated Offices
6
Growth Capital Investments
Defense, Government &
Intelligence
Physical & Cyber
Security
Critical
Infrastructure
Maritime Transport &
Facilities

FEDMINE -
M&A ACTIVITY - DLA
Date: 3/2/2022
EV: NA
EBITDA Multiple: NA
Subsector: Defense
Looking to
acquire
Key Statistics
2021 saw a record amount of M&A activity in the DGI space from both
strategic and financial buyers. Middle market platform companies
were among the most active as private equity firms looked to acquire
capability sets and customer presences. Additionally, there were a
number of significant private equity exits to large strategic buyers such
as Carlyle’s sale of Novetta to Accenture, Enlightenment’s sale of 1901
Group to Leidos, Veritas’ sale of Alion to Huntington Ingalls Industries,
and H.I.G.’s sale of WBB to Serco.
2
3
3
3
3
4
5
5
6
6
7
9
Date: 3/1/2022
EV: ND
EBITDA Multiple: ND
Subsector: Aerospace
acquired by
Key Statistics
Date: 3/1/2022
EV: ND
EBITDA Multiple: ND
Subsector: Intel Analysis
Merger
Key Statistics
Date: 2/28/2022
EV: ND
EBITDA Multiple: ND
Subsector: Security
acquired by
Key Statistics
Date: 2/28/2022
EV: ND
EBITDA Multiple: ND
Subsector: Aerospace
Majority
acquisition by
Key Statistics
Date: 2/27/2022
EV: ND
EBITDA Multiple: ND
Subsector: Government
acquired by
Key Statistics
TOP ACQUIRERS IN 2021 1
STRATEGIC FINANCIAL COMMENTARY

FEDMINE -
M&A ACTIVITY - DLA
MARKET FORCES
1
 Federal budget and spending dynamics
 Political factors
 Public market valuations
 Economic and market performance
 Interest rates
COMPONENTS OF ENTERPRISE VALUE VALUE DRIVERS
SALABILITY OF CONTRACT BASE
2
 Contract award basis
 Contract role (prime / sub)
 Backlog
 Recompete profile
CORE BUSINESS FUNDAMENTALS
3
 Financial profile / size
 Management quality – depth & breadth
 Customer mix
 Capabilities
 Addressable market
SPECIALIZATION / DIFFERENTIATION
4
 Proprietary technology – IP
 Business model - product vs services
 Contract vehicles
 Alignment with funding priorities

FEDMINE -
M&A ACTIVITY - DLA
Value Drivers Strength Neutral Weakness
Financial Performance
Revenue Size >$50 million $20 million to $50 million <$20 million
Business Development Track Record >10% revenue growth 3% to 10% revenue growth <3% revenue growth
Growth Expectations >15% 5% to 15% <5%
Revenue Visibility
Strong backlog with long-term
contracts
Good backlog with a few near-
term recompetes
Low backlog with several near-
term recompetes
Profitability (EBITDA %) >10% 6% to 10% <6%
Leverage and Liquidity
Low or no interest-bearing debt;
positive working capital
Moderate interest-bearing debt;
working capital close to zero
High interest-bearing debt;
negative working capital
Contract & Customer Portfolio
Strategic Contracts Large opportunity with limited
players
Moderate opportunity, but no
significant strategic contracts
None
Restricted Contracts Not a concern <20% to 25% >20% to 25%
Prime vs. Subcontracts >75% prime 50% to 75% <50% prime
Direct Labor vs. Subcontractors >90% direct labor 75% to 90% <75% direct labor
Customer Concentration <30% from one or a few agencies
30% to 60% from one or a few
agencies
>60% from one or a few agencies
Contract Concentration <20% from one or a few contracts
20% to 50% from one or a few
contracts
>50% from one or a few contracts

FEDMINE -
M&A ACTIVITY - DLA
Value Drivers Strength Neutral Weakness
Financial Performance
Management Depth Strong with long tenures Good management team Lacking in leadership
Key Person Reliance Diversified management team
Somewhat diversified management
team
High dependence on key person
Employee Credentials Highly cleared, well educated, certified Well qualified, but not a differentiator No significant credentials
Strength of Infrastructure Industry leader Adequate, may need upgrades Needs significant upgrades
Contract & Customer Portfolio
Nature of Services High-end
Mix of high-end and less differentiated
services
Little or no high-end work
Proprietary Technology Strong suite that is scalable Some IP, but not a driver None
Processes ISO, CMMI, Agile certifications Some level as appropriate None

THANK YOU
FOR ATTENDING!
> PPT SLIDES ARE ON
SLIDESHARE.NET
> RECORDING IS ON YOUTUBE

ARCHISA MEHAN
AMEHANGOVSPEND.COM
PAUL KLICK
PKLICK@MCLEANLLC.COM
CHRISTOPHER HALL
CHRISTOPHER.HALL@DLA.MIL
THANK YOU TO OUR PANEL!

2022 Procurement Playbook - DLA (03/4/2022)

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