Please join Jennifer Schaus & Associates every Wednesday Friday in 2022 for a complimentary webinar series. See the full recording on our YouTube Channel https://www.youtube.com/channel/UCYvCaZcAvSYYEAZCqj2CQ9g and full schedule on our website: https://www.jenniferschaus.com/far-supplements
For more information about our federal contracting services please contact us at hello@jenniferschaus.com
Win more federal government contracts!
2. ABOUT THE SERIES:
WEDNESDAYS โ FAR SUPPLMENT SERIES
PROCUREMENT RULES, REGULATIONS & NUANCES
FRIDAYS โ CORRESPONDING PLAYBOOK SERIES
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!
Panel Discussions with Federal Government & Industry Leaders
Fridays @ 12pm Eastern
INFO / SPONSOR: Hello@JenniferSchaus.com
3. THANK YOU TO OUR SPONSORS
Panel Discussions with Federal Government & Industry Leaders
Fridays @ 12pm Eastern
INFO / SPONSOR: Hello@JenniferSchaus.com
4. ๏ผ Full training calendar: virginiaptac.org & useful links
๏ผ Register for free counseling: https://virginiaptac.org/services/counseling/
๏ผ Your โone stopโ shop for Government Contracting assistance
๏ผ 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.
5. YOUR SOURCE
FOR
SUCCESSFU
L
To Learn More, Please Visit
WWW.FBCINC.COM
david@fbcinc.com
240-841-2210
Face-To-Face & Virtual Events | Content Marketing | Exposure & Engagement | Government Agency Based Marketing (ABM) | Branding
Lead Generation / Lead Nurturing | Top of Funnel, MQL & SQL Development | Agency Driven | Positioning | 150+ Events Per Year
"68% OF FEDERAL GOVERNMENT PERSONNEL ATTEND EVENTS"
Source: Content Marketing Review 2021,
May 20, 2021, Market Connections, Inc.
6. DOING BUSINESS WITH
DOD
DEPARTMENT OF DEFENSE
Panel Discussions with Federal Government & Industry Leaders
Fridays @ 12pm Eastern
INFO / SPONSOR: Hello@JenniferSchaus.com
7. MEET OUR PANELISTS
Panel Discussions with Federal Government & Industry Leaders
Fridays @ 12pm Eastern
INFO / SPONSOR: Hello@JenniferSchaus.com
11. Doing Business With The US Federal Government Hello@JenniferSchaus.com
FEDMINE -
Our Mission is Simple...
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 โ allowing reporting & analysis not previously possible.
Fedmine is now part of GovSpend, the largest provider of data and P.O. in
the SLED market.
12. Doing Business With The US Federal Government Hello@JenniferSchaus.com
FEDMINE -
DoD โ Total Contracts Awarded
For FY 21, the DoD awarded $48.78B to 7,687 companies, down from the $52.99B
awarded in FY 20 โ link to FY 21 report
โข Contracts awarded under National Interest Action Code for Covid account for $180.8M
in FY 21, compared to $577.9M in FY 20
โข $1.14B was awarded as OTAโs โ link to report
โข $353M was awarded as SBIRs &STTR Contract awards โ link to report
Note: Contract data is as of 1/24/22.
Agency Code is 9700
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FEDMINE -
DoD โ Contracts Awarded โ Contd.
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FEDMINE -
DoD โ Top NAICS DoD โ Top Categories
Note: % is based on total DoD spend of $48,8B in FY 21
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FEDMINE -
DoD โ Top Primes
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FEDMINE -
DoD โ Top Business โ Small Business
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FEDMINE -
DoD โ Top GWACs
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FEDMINE -
DoD โ Exhibit 53
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FEDMINE -
DoD โ Opportunities
Opportunities can be:
โข New opportunities based on new initiatives
โข Contracts that are expiring that could be recompeted
Where do you get the information:
โข DoD Budget and Program information
โข Look at the PreSolicitations and Sources Sought Notices in sam.gov
โข Create expiring contract searches based on what you do!
20. Doing Business With The US Federal Government Hello@JenniferSchaus.com
FEDMINE -
DoD โ Opportunities
21. Doing Business With The US Federal Government Hello@JenniferSchaus.com
FEDMINE -
DoD โ Opportunities โ Expiring Contracts โ Top NAICS Codes
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FEDMINE -
DoD โ Opportunities โ Expiring Contracts awarded as small business
23. Doing Business With The US Federal Government Hello@JenniferSchaus.com
M&A ACTIVITY -
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
300+
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
24. Doing Business With The US Federal Government Hello@JenniferSchaus.com
M&A ACTIVITY -
DEPARTMENT OF DEFENSE
Key Transactions
acquired by
Closed Date: 5/25/21
Price: $3,477.1M
EBITDA: 14.7x
Revenue: 2.34x
Transaction Rationale
Cubic supplies training technology to the U.S.
Army and its allied forces and develops
software for public transportation companies.
Veritas Capital, who partnered with Evergreen
Coast Capital Corp. on the deal, will look to
leverage its expertise in the government
technology market to accelerate Cubicโs
product development.
acquired by
Closed Date: 8/19/21
Price: $1,000.0M
EBITDA: N/A
Revenue: N/A
Transaction Rationale
Novetta provides expertise in analytics,
intelligence, cloud engineering, and cyber
services. Accenture Federal Services will
utilize the acquisition of Novetta to add a
national security portfolio to its business,
which will provide mission solutions in the
domains of analytics, intelligence, cloud
engineering, and cyber.
acquired by
Closed Date: 10/25/21*
Price: $1,912.9M
EBITDA: 8.7x
Revenue: .64x
Transaction Rationale
PAE delivers agile and steadfast solutions to
the U.S. government and focuses on
supporting military readiness, peacekeeping
missions, nation building activities,
personnel recruitment and training, and
disaster relief services. The acquisition of
PAE complements Amentumโs growth into
the intelligence and technology market.
25. Doing Business With The US Federal Government Hello@JenniferSchaus.com
M&A ACTIVITY -
DRIVERS OF GOVCON M&A VALUE
Components of Enterprise Value
MARKET FORCES
1
SALABILITY OF CONTRACT BASE
CORE BUSINESS FUNDAMENTALS
SPECIALIZATION / DIFFERENTIATION
2
3
4
Value Drivers
๏ง Federal budget and spending dynamics
๏ง Political factors
๏ง Public market valuations
๏ง Economic and market performance
๏ง Interest rates
๏ง Contract award basis
๏ง Contract role (prime / sub)
๏ง Backlog
๏ง Recompete profile
๏ง Financial profile / size
๏ง Management quality โ depth & breadth
๏ง Customer mix
๏ง Capabilities
๏ง Addressable market
๏ง Proprietary technology โ IP
๏ง Business model - product vs services
๏ง Contract vehicles
๏ง Alignment with funding priorities
26. Doing Business With The US Federal Government Hello@JenniferSchaus.com
M&A ACTIVITY -
DRIVERS OF GOVCON M&A VALUE
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
27. Doing Business With The US Federal Government Hello@JenniferSchaus.com
M&A ACTIVITY -
DRIVERS OF GOVCON M&A VALUE
Value Drivers Strength Neutral Weakness
Management and Infrastructure
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
Nature of Services and Technology / I.P.
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
28. MAIN LINK TO AGENCY / DEPARTMENT:
https://www.defense.gov/
LINK TO SMALL BUSINESS OFFICE:
https://business.defense.gov/Small-Business/DoD-Small-Business-Offices
Doing Business With The US Federal Government Hello@JenniferSchaus.com
ABOUT THE SMALL BUSINESS OFFICE:
29. LINK TO ACQUISITON FORECAST:
https://business.defense.gov/Small-Business/Acquisition-Forecasts
Doing Business With The US Federal Government Hello@JenniferSchaus.com
GOVERNMENT โ ACQUISITION FORECAST:
30. LINK TO SBA SCORECARD:
https://www.sba.gov/document/support-department-defense-contracting-scorecard
Doing Business With The US Federal Government Hello@JenniferSchaus.com
GOVERNMENT โ SBA SCORECARD:
31. Doing Business With The US Federal Government Hello@JenniferSchaus.com
GOVERNMENT โ 10 Steps To Doing Business With DOD:
10 Steps To Doing Business With DOD
1
Enlist Your Support Network
2
Understand the Rules
3
Register in SAM
4
Target Your Market
5
Create a Capabilities Statement
6
Identify Prime Contracting & Subcontracting Opportunities
7
Pound the Pavement
8
Bid on Your First Contract
9
Win Your First Contract
Provide Stellar Performance
10
32. Doing Business With The US Federal Government Hello@JenniferSchaus.com
GOVERNMENT โ DOD Mentor Protรฉgรฉ Program:
DOD Mentor Protรฉgรฉ Program
Step 1: Establish a Counterpart
Communication, Compatibility, and
Commitment!
Step 2: Determine the Type of Agreement
Direct Reimbursed
Credit
Step 4: Submit Agreement Proposal
Step 3: Develop Agreement
Step 5: Start Agreement
Step 6: Reporting and DCMA
Review Requirements
Step 7: Ask Questions
33. Doing Business With The US Federal Government Hello@JenniferSchaus.com
GOVERNMENT โ CONNECT:
business.defense.gov
osd.business.defense@mail.mil
@businessdefense
facebook.com/businessdefense
CONNECT
โA patriotic passion to serve small businesses that protect the warfighter.โ
34. THANK YOU
FOR ATTENDING!
> PPT SLIDES ARE ON
SLIDESHARE.NET
> RECORDING IS ON YOUTUBE
Panel Discussions with Federal Government & Industry Leaders
Fridays @ 12pm Eastern
INFO / SPONSOR: Hello@JenniferSchaus.com