This is proprietary and confidential information provided to you by Out of the Box Consulting. OotBox specializes in Public Sector business development including Federal, Military, Prime Contractor, First Responder, Fire, Police, Homeland Security, DoD, Federal Agencies, State, county and municipality opportunities.
Our discussion today fits into a strategic landscape including Markets, Channels, Industrial, Automotive, Federal and Healthcare. For sake of semantics it is important to DEFINE a Market, an Industry, a Channel and how we define our customer.
So in this discussion Markets (or a marketplace) is equal to an Industry. Channels are modes of selling whether direct or indirect. Partners can be our customers but in this scenario Partners are company’s that provide an adjunct to our offerings. We are now looking at Government and Government agencies as a Market (Industry) for your company’s growth. Within that Industry there are several Channel partners - one most likely will be the new customer target for you.
We here again the distinction between players in a complex sale. In the Federal Government market complex sales will most likely target the SYSTEM INTEGRATORS as they are much like the sub-contractors in the Major Industry Company’s whether Automotive, Aerospace, First Respnders and the like. As Delphi might be a sub-contractor and supplier to GM, so to is L3 or Lockheed a sub-contractor to Government agencies which are conduits to Military projects and obviously Military budgets.
Channels are intregal to the flow of money from the military and federal budget out to Agencies, Prime Contractors, Sub-contractors, Contract Vehicles and contracting VAR’s. Until now, many in this audience have primarily relied on a Direct to End User sales and marketing model. With the Federal Government the best way to win business is to understand the players and player responsibilities. This sales model is indirect in many deals and as your company grows in its ability to understand and win in the market, the final play will be directly to the endusers. That is not to say you will not begin your marketing and sales with the military branch contracting officers, or contract officers on agency specific contracts sush as, FAA, SEWP, NIH, DHS, DOD and others. You will be pursing them also.
The basic take away from this slide is that in the coming 5 years, with the economic stimulus package money getting where it needs to be contracting officers will be inundated with bids, competitive, set aside of all type. You job is to get out of that rat race while at the same time making it easier for you officer and their buyers to select you in a NON-BID situation. If you have a GSA don’t let the buyer or officer tell you it has to have 3 bids gotten on it – it already has. With this inundation of bids the easiest way to get them across the procurement or contract officers desk is to list it on a contract. This is not difficult to do. If you have a competitive bid simply let the officer know that if they need a GSA, 8A, HubZone or Veteran’s certification you have TEAMING AGREEMENT for those. This is good news to the officer! His/Her job just got way better and much easier.
The best overall vision to help grasp how to get govt contracts is to understand the flow of money and how your company might participate in this flow - Where do you fit? Where are you trying to go? Who is YOUR customer? The answer will always be to FOLLOW THE MONEY. The money comes from the Federal Government is allocated to Depts and Agencies that manage the administration, procurement and projects of endusers such as the military branches. We can use this example to show how to follow the money. In this case Dept of Homeland Security has the budget. One of many project they are managing is a contract to purchase IT hardware and software called First Source . This contract for this project is then bid and awarded. Sometime it is sole sourced. In this case ONE of the winners of the contract is a Federal Government VAR named Govt Acquisitions. Govt Acquistions also has relationships and contracts on many more DHS contracts. So when attempting to grow business in the Federal Government, Govt Acquisitions may be a good partner to know. Once a contract is awarded theses few awardees are the ONLY way for that agency and it’s endusers to buy product or services. This is a PRECOMPETED contract. Other agency’s, other than DHS, may also be able to use this contract to purchase goods for their projects. This is the KEY TO THE GOVERNMENT BUYING KINGDOM.
This “follow the money” strategy can be implemented over and over for every government contract.These are Value Added Resellers who have won contracts. So Emtec is a winner on the ADMC program , World Wide Technologies is one of the winners on the ITES II contract for IT enterprise solutions and so on. One of the best ways to keep track of these PROGRAMS is through VAR Business and GovernmnetVAR along with you normal FedBizOpps and AFWAY bid sites. I have in the presentation several lists for 2009 and 2010 set aside programs and other small business contracts that you can be a part of today and tomorrow. There are sites that aggregate all the fedbizopps and state and local rfq, rfps and task orders, but it is really just a lazy was of doing FedBizOpps.
This “follow the money” strategy can be implemented over and over for government contracts and more importantly PROJECTS. In this case we follow the Large System Integrators and how we might interact with them as our Customer and our entrée into major Federal Government Contracts. Here I show 4 Federal System Integrators. Whether they are weapons manufacturers or Government “Research” agencies, these and many more companies are awarded government contracts on a daily basis. For your company those contracts that emulate your success in the commercial world are the contracts to look for in the government market. These companies, and in particular the PROJECTs they win and are involved in are the contracts to learn about and pursue. I have included above a Word document that lists contracts awarded in a two week time span for Sept 29 - Oct 10, 2008. This list shows awarded contracts of over $1 Billion dollars.
Another Large Federal Contract is the DoD’s DISA contract. I assisted in the development of the SSTEW program for Dynamic Systems which is a Pre-Bid, Pre-Approved Services vehicle for SUN MicroSystems warrantees and professional services. This is a 10 year, exclusive, no-limit contract. Dynamic Systems as a Federal partner for SUN competed and won SUN’s authorization as the sole provider of these services. SUN provided Pre-Bid advantageous prices for this contract – now serviced through Dynamic Systems. You can see you can replace SUN as the vendor with that vendor that really likes what your are doing and wants to support you. Tell them you are growing and focusing on you Public Safety Sector which includes, all Military branches, all government agencies, all state and local agencies and First Responders. A couple of key phases to think about in this market is “RUGGED” and “MOBILE”.
Another Federal Government contract is SEWP now in it’s fifth iteration. Each contract is pre-solicited and awarded for 5 years. What you see here are the awardees on SEWP IV. You will see many Federal VAR’s and a few direct manufacturers. In this type of contract (more product based than systems based) one measure of success for a manufacturer is the number of sku’s on each VAR’s contract. The more sku’s the better the possibility of having a project manager find your product and purchase it. Another point here is the fact that many times your are awarded based on certifications such as Veteran’s Owned, Minority owned (8A), or small business. Here Dell does not have those types of “set aside” certifications but they won the award also and would be interested in you if you had those certs.
This is pretty straight forward. 2009 Top 20 Programs by Agency. You have Navy, Air Force, DHS, Treasury, Defense, NASA and HHS. This are your major customers with whom you can subprime. If you have certification that may be all they need. If you are in a remote location, Montana, Wyoming they may need you. So sell to them and see what they possibly need that you can help out with.
Here we are talking about a couple of things. Recompete contracts and consolidations that have carried over from 2008 but will go in 2009 Task Orders Positioning yourself on more contract vehicles so that as competition and demand increases you will be in the right place at the right time.
You are a small business in IT and IT solutions if you have less than 500 people. Remember the government is thinking the Big Boys with thousands of people, particularly in the IT sector where so much competition resides. But they have done something to level the playing field. SET-ASIDES and great sounding phrase that can help you if you position yourself to be in the game. What you see here is NASA doing a Multi-Disciplinary Engineering and Technology Services buy using 8a SET ASIDE worth $500 million. You see the Air Force NETCENTS II contract back out there for Small disadvantaged veterans with a $4.2 B price tag. Now are there enough SDVOB to take care of this requirement? NO. They need people like to you take pieces and projects and complete them as subprimes.
TOP 10 State and Local Justice and Public Safety & Homeland Security Opportunities in 2009. Lets look at Q1 because in all liklihood it hasn’t been awarded with the budget crisis and a new administration slowing down the dollars. LA Cty, Ft Monmouth Cty in NJ and Washington States Wireless Broadband Expansion all have projects that are not going to be answered by one VAR or VENDOR. SubPrimes and Strategic partners are going to share in this project. So be a Prime or be a Sub but be in the game!
Follow The Money Vars
Federal Government Business Development <ul><li>You may have heard it all before. </li></ul><ul><li>“ Government business takes forever. “ </li></ul><ul><li>“ Sure there’s money but there are too many hoops ” </li></ul><ul><li>Learn a 3 phase approach to move toward Government contracts in your own time and your own budget. </li></ul><ul><li>Learn the contracts that can introduce your products and service quickly. </li></ul><ul><li>Learn the difference between GSA, GWAC, IDIQ and other buying vehicles. </li></ul><ul><li>Learn where you can find if your products are already on a government contract – and often without your permission. </li></ul><ul><li>Implement a marketing program that will get the attention of decision makers and buyers. </li></ul><ul><li>Jump ahead of the RFQ game. </li></ul><ul><li>Visit: www.ootbox.vpweb.com </li></ul><ul><li>Email: email@example.com </li></ul>
Trends in Government Buying <ul><li>Bottom Line </li></ul><ul><li>Although federal agencies are trying to maintain small business contracting goals, pressure to streamline acquisitions and maximize resources continues to push agencies toward the increased use of contract vehicles. </li></ul><ul><li>Furthermore, agencies are seeking to leverage economies of scale and managed service principles in an effort to award work efficiently. Doing so helps avoid protests, but it is also significantly delaying some acquisitions. The results of these trends are illustrated by the fact that solicitations have not yet appeared for 5 of the INPUT Top 10 Small Business Opportunities forecast for FY 2008. </li></ul><ul><li>The FY 2009 list indicates: </li></ul><ul><li>Federal agencies will continue to rely heavily on multiple award contract (MAC) vehicles to fulfill their requirements, meaning competition will continue to increase for open-market small business set-aside contracts. </li></ul><ul><li>The consolidation of contracts and systems alike will increase the number of MACs set-aside specifically for small businesses and task orders within MACs competed among small businesses only. </li></ul><ul><li>Likewise, as the pace of technology systems and IT network consolidation continues to pick up steam, fewer new open-market systems integration requirements are appearing. </li></ul><ul><li>Oversight of federal procurement will continue to support small business spending and pressure to meet Small Business Administration goals is mounting </li></ul><ul><li>Source: Input March 2009 </li></ul>
MISSION The Defense Information Systems Agency is a combat support agency responsible for planning, engineering, acquiring, fielding, and supporting global net-centric solutions to serve the needs of the President, Vice President, the Secretary of Defense, and other DoD Components, under all conditions of peace and war.
<ul><li> FY 2009 Top 20 Quick Reference List </li></ul><ul><li>RANK AGENCY PROGRAM ACRONYM ESTI RFP DATE EST AWARD DATE ESTIMATED VALUE </li></ul><ul><li>1 Army CTS 04/2009 10/2009 $30 billion </li></ul><ul><li>2 HHS CIOSPNEW 01/2009* 08/2009* $19.5 billion* </li></ul><ul><li>3 NASA I3P 01/2009 09/2009 $15 billion* </li></ul><ul><li>4 Air Force NETCENTS II 12/2008* 05/2009* $9 billion </li></ul><ul><li>5 Navy NGEN 01/2009* 06/2010* $8.8 billion </li></ul><ul><li>6 Defense SITE DoDIIS 10/2008 09/2009* $6.6 billion </li></ul><ul><li>7 State CPLE 12/2008* 4/2009* $6.3 billion </li></ul><ul><li>8 Defense MiDAESS 02/2009 09/2009 $3.5 billion (Gov’t Est.) </li></ul><ul><li>9 Treasury TIPSS-4 01/2009* 09/2009* $3 billion </li></ul><ul><li>10 Defense DISN GSM 02/2009 02/2010* $2.7 billion (Gov’t Est.) </li></ul><ul><li>11 Army HRSS 01/2009* 09/2009* $2.15 billion* </li></ul><ul><li>13 Air Force MPEC II 08/2009 01/2010 $2 billion* </li></ul><ul><li>14 Navy CANES 01/2009 08/2009 $1.9 billion (Gov’t Est.) </li></ul><ul><li>15 Air Force DESP III 02/2009* 02/2010* $1.9 billion* </li></ul><ul><li>16 Army CHS III 12/2008* 05/2009* $1.75 million </li></ul><ul><li>17 Air Force IATAC 11/2008* 06/2008* $1.68 billion* </li></ul><ul><li>18 NASA RAPID III 01/2009 06/2009 $1.5 billion* </li></ul><ul><li>19 Air Force GCSS-AF 11/2008 07/2009* $900 million* </li></ul><ul><li>20 DHS Omnibus 12/2008* 08/2009* N/A </li></ul>
2009 Federal Gvt Opportunities <ul><li>Bottom Line </li></ul><ul><li>The FY 2009 list is, in many ways, a contrast to the previous year’s lists. As a result of high profile recompete contracts and the consolidation efforts in various agencies, the opportunities within civilian agencies have increased considerably compared to prior year’s list. The FY 2009 Top Opportunities represent $120 billion worth of programs which is a slight increase from the total value in INPUT’s 2008 Top 20 total of $119 billion. </li></ul><ul><li>Task Order based contract vehicles and consolidation continue to dominate the list. Agencies are trying to squeeze out as much cost savings as possible. Across the federal government, agencies are looking to use large government-wide acquisition contracts (GWAC) and multiple award contracts (MAC) as well as consolidation initiatives to save money. </li></ul><ul><li>Vendors are going to have to find positions on these contract vehicles and can expect increased competition for both prime contracts and task orders. </li></ul><ul><li>Like last year, FY2009 is anticipated to maintain the status quo. With tight budgets and the transition to a new administration, major new initiatives are not anticipated until the FY 2010 budget cycle. </li></ul><ul><li>As competition increases, vendors will need to position themselves on the right vehicles for their business and focus on market share. </li></ul><ul><li>Source: INPUT 2009 </li></ul>
<ul><li>FY 2009 Top 10 Set-Aside Opportunities Quick Reference Guide </li></ul><ul><li>Rank Agency Program Est. RFP Date Ant. # of Awards Est. Ceiling Value Competition Type NAICS Code SB Size Standard </li></ul><ul><li>Air Force NETCENTS II </li></ul><ul><li>12/2008* 26-38 $4.2 Billion* SB& SDVOB Set-Asides 541511 541512 517110 $25 Million 1,500 ftp </li></ul><ul><li>Army Support to Assist the Assistant Secretary of the Army’s Manpower and Reserve Affairs </li></ul><ul><ul><li>11/2008* 4 $1 Billion SDVOB Set-Aside TBD TBD </li></ul></ul><ul><li>Army Space and Missile Defense Initiatives Support III </li></ul><ul><li>01/2009* 3 $730 Million Small Business Set-Aside 541712 500 Employees </li></ul><ul><li>NASA Multi-Disciplinary Engineering and Technology Services II </li></ul><ul><li>01/2009 2 $500 Million 8(a) Set-Aside 541712 500 Employees </li></ul><ul><li>Army Strategic Sourcing Environmental Enterprise Services </li></ul><ul><li>12/2008 18 $470 Million Small Business Set-Aside 541620 $7 Million </li></ul><ul><li>Army Information Technology Services Small Business </li></ul><ul><li>09/2008 5 $400 Million Small Business Set-Aside 541519 $25 Million </li></ul><ul><li>FAA Service Operations Support 7 and 8 -Recompete </li></ul><ul><li>11/2008* 2 $400 Million Small Business & 8(a) 541519 $25 million </li></ul><ul><li>DISA DISN Global Services Management Small Business </li></ul><ul><li>02/2009 1 $300 Million Small Business Set-Aside 517919 $25 Million </li></ul><ul><li>9 NOAA NOAA Link 12/2008* 1-2 $250 Million Small Business Set-Aside 517110 1,500 Employees </li></ul><ul><li>Navy Consolidated Afloat Network Enterprise Services Service Oriented Architecture Integration Contract </li></ul><ul><li>03/2009 1 $250 Million Small Business Set-Aside 541512 $25 million </li></ul><ul><li>Note: all 2008 RFP’s listed have been pushed over to the 2009 budget year </li></ul>
<ul><li>One Note on: </li></ul><ul><li>STATE and LOCAL Government </li></ul><ul><li>TOP OPPORTUNITIES for 2009 </li></ul>
Top 10 State & Local Justice/Public Safety & Homeland Security Opportunities of 2009 by Estimated Contract Value <ul><li>ENTITY PROJECT/PROGRAM SOLICITATION DATE EST. VALUE ($M) </li></ul><ul><li>Los Angeles County (CA) L.A. Regional Interoperable Comm Sys (LA-RICS) Q1 2009 $600.0 </li></ul><ul><li>Los Angeles County (CA) California Transportation Congestion Pricing Project Q3 2009 $213.6 </li></ul><ul><li>Washington state Wireless Broadband Networks Expansion Q1 2009 $200.0 </li></ul><ul><li>Illinois Statewide Digital Driver’s License System Q4 2009 $100.0 </li></ul><ul><li>Oregon 800MHz Trunked Radio Replacement Q2 2009 $75.0 </li></ul><ul><li>Clark County (WA) Radio/Data System Q2 2009 $40.0 </li></ul><ul><li>Irving City, TX Consulting Voice Communications Interoperability Q3 2009 $25.0 </li></ul><ul><li>Monmouth County (NJ) Digital Trunked Radio System Q1 2009 $21.0 </li></ul><ul><li>San Fran City/Cnty (CA) Build out, Install, and Integr svs MTA Radio Systems Q3 2009 $20.0 </li></ul><ul><li>Orange County (CA) Public Safety Systems Solution Q2 2009 $15.0 </li></ul><ul><li>Fire Authority </li></ul>