As an alternative to the traditional, hierarchical prime-sub contracting model, the Reddix Group’s Networked Team approach is truly innovative and a re-usable strategy across the Federal government. In addition, our thought leadership on policy combined with a management philosophy that focuses on high performing, Integrated Program Teams (IPTs) brings together requisite subject matter expertise at the task level for delivering measurable, tangible results. While typical, status-quo contract teams are stifled by pre-determined qualifications, constrained resources and inability to adapt, our approach is designed to foster collaboration, deliver innovative solutions and improve operational effectiveness.

1. Joe Reddix, PMP
2014 Project Management Symposium
AN ALTERNATIVE TO THE PRIME
/ SUBCONTRACTOR MODEL

2. The Network is the Prime!
6/9/2014
“insanity is doing the same thing over and over and expecting a different result.“
- Albert Einstein
“High-performing private sector firms quickly bring
together small multi-disciplinary, integrated
program teams (IPTs)…At the hub of these IPTs is a
strong and effective program manager who
stewards the process from beginning to end.”
-The U.S. CIO’s 25-Point Plan to Reform Federal IT
Management
2An Alternative to the Prime/Subcontractor Model - The Reddix Group

3. Sequestration and budget pressures combining to cut contracting
Sequestration resulted in a 6.6 percent decline in discretionary budget authority
» Agencies decreased activities and furloughed employees
» DOD used its annual reprogramming authority to shift money from procurement to O&M
» Some agencies were restricted from offering new starts while under a CR
Fiscal 2013 saw $462.1 billion in prime, unclassified contracts, down 11 percent
In billions of constant 2013 dollars
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Discretionary budget authority Contract obligations
Reagan Bush I Clinton Bush II Obama
+11%
CAGR
-5%
CAGR
Note: O&M – Operations and Maintenance; CR – Continuing Resolution
Source: Bloomberg Government proprietary contracts database and Bloomberg Government budget database
$462.1 billion
in FY 2013
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4. What did the government buy in fiscal 2013?
» Services represented 61 percent of spending, on par with last year
» Top four spending categories are for technical services; top product is aircraft
Government continued to purchase more services than goods
Dollars in billions
Source: Bloomberg Government proprietary contracts database
$0 $10 $20 $30 $40 $50 $60 $70
Knowledge-based services
Facility-related services
Research and development
Technology services
Aircraft
Technology equipment
Engines and power generation
Construction services
Weapons and ammunition
Equipment-related services
Medical services
Medical supplies
Ships and submarines
Fuel
Transportation services
Logistics services
Food
Land vehicles
Drones
Space vehicles
All other categories
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5. 2013 Federal Spending Summary
6/9/2014 5
Source: Bloomberg Government proprietary contracts database and Bloomberg Government budget database
An Alternative to the Prime/Subcontractor Model - The Reddix Group

6. Small Business Goals FY 2013
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7. Prime/Sub vs. Peer-to-Peer Model
Size doesn't matter!
I am your Prime and too big to fail!
6/9/2014
Peer-to-Peer Networked Team.
7An Alternative to the Prime/Subcontractor Model - The Reddix Group

8. Networked Structure of Companies
Comprehensive capabilities
Our contract team is a network of companies organized to do Federal IT work, particularly large and/or difficult projects. In
addition to best-of-breed technology companies, the team includes firms that provide professional support such as accounting,
human resources, and legal advice.
Coordination, not competition
The Reddix Group is the Team Lead. It serves as the network hub, handling communications and coordination. To avoid
competing with the companies we coordinate, The Reddix Group does no technical work directly for the customer. That’s left to
our team’s member firms.
The best team for the task
When a task order is issued, we assemble individuals and companies with relevant expertise into a Task Team—the best possible
team for that particular task. Any member firm can lead a Task Team doing work that involves its area of expertise. If a task
requires expertise the team initially lacks, a best-of-breed company is brought in to provide it.
Customers are team members
When we undertake Federal IT work, Reddix Group personnel team up with agency representatives to form an Integrated Program
Team. We talk with stakeholders and end-users at every stage of a project, according to lean startup/Customer Development
principles.
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9. Networked vs. Hierarchy
Traditional Contract Team
Hierarchical
• Organized like an industrial-era military unit, in a
command-and- control hierarchy with fixed lines of
authority.
Exclusive
• Locks in subcontractors with exclusive deals. Uses their
qualifications to get work.
Backward-looking
• Keeps out firms whose technology might displace old,
proprietary applications.
Profit-oriented
• The Prime Contractor uses its privileged position to
maximize its profits.
Expensive
• Large contractors have large overhead costs. These high
costs are passed on to the customer.
Reddix Group Networked Team
Networked
• Organized like an agile software development project, in
a collaborative network with fluid lines of
communication.
Inclusive
• Brings in member firms with open arrangements.
Leverages their capabilities to do work.
Forward-looking
• Invites in firms with technology that’s useful in creating
new, open systems.
Performance-oriented
• The Team Lead assembles the best possible “task team”
to get the job done.
Economical
• The Team Lead’s operations require minimal overhead.
This low cost structure saves money.
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10. Networked Team
6/9/2014
A Seal Team approach to contracting!
"The Only Easy Day Was Yesterday"
"It Pays to be a Winner"
10An Alternative to the Prime/Subcontractor Model - The Reddix Group

11. Advantages of a Networked Team
Reduces risk
Technical capabilities are distributed among several member firms, eliminating a single point of failure.
Fosters innovation
The Team Lead serves as a conduit to bring innovative private-sector companies into Federal service.
Saves money
Since the Team Lead does only program management, its overhead costs are low.
Shared risk/value
Your company and it’s team are paid for their respective contribution on a given task order.
An Elastic Solution for Project Management.
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12. Effective Project Management
I’m not going to Disney Land?
Example: Peer-to-Peer Communication!
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13. Lessons Learned!
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14. The SEAL Code
6/9/2014
Loyalty to Country, Team and Teammate
Serve with Honor and Integrity On and Off the Battlefield
Ready to Lead, Ready to Follow, Never Quit
Take responsibility for your actions and the actions of your teammates
Excel as Warriors through Discipline and Innovation
Train for War, Fight to Win, Defeat our Nation’s Enemies
Earn your Trident everyday
United States Navy SEAL
14An Alternative to the Prime/Subcontractor Model - The Reddix Group

15. A Global Perspective
6/9/2014
By 2025, annual consumption in emerging markets will reach $30 trillion—the
biggest growth opportunity in the history of capitalism.
Article | McKinsey Quarterly
August 2012 | byYuval Atsmon, Peter Child, Richard Dobbs, and Laxman Narasimhan
Winning the $30 trillion decathlon: Going for gold in emerging markets
There are a lot of reasons for a future where the “Network is the Prime”!
15An Alternative to the Prime/Subcontractor Model - The Reddix Group

16. References
6/9/2014
• Bloomberg Government, 2014 BGOV200: Federal Industry Leaders Preview
Evan Croen , Director Government Sales Research
Duncan Amos, Quantitative Analyst
Brian Friel, Industries Analyst
Selling in the Federal Market Who’s Buying and Who’s Not, April 14, 2014
Cameron Leuthy, Senior Budget Analyst
• McKinsey & Company
Seven imperatives for success in IT megaprojects
Kreg Nichols, Principal in McKinsey's Atlanta Office
Shantnu Sharma, Consultant in McKinsey's Boston office
and Richard Spires, CIO US Department of Homeland Security, and Vice-chair of the Federal CIO Council
• Small Business Administration, www.sba.gov
• White House, whitehouse.gov
• Navy Seals, Seal Code Warrior Creed, www.navyseals.com
• Einstein, Albert, “insanity is doing the some thing over and over and expecting a different result”
• Big Business Still Winning Small Business Contracts, www.allgov.com
• General Service Administration, www.gsa.gov
• The Daily Republic, www.dailyrepublic.com
• The Washington Post, www.washingtonpost.com
[1] Park, Todd, Making a Difference: Innovation Pathway and Entrepreneurs in Residence U.S. Food and Drug
Administration. April 10, 2012.
[2] Nichols Kreg, Sharma Shantnu, Richard Spires, McKinsey on Government Autumn 2011, Seven imperatives for success
in IT megaprojects.
[3] Bloch Michael, Blumbery Sven, Laartz, McKinsey & Company: Delivering large-scale IT projects on time, on budget,
and on value October 2012.
16An Alternative to the Prime/Subcontractor Model - The Reddix Group

17. 6/9/2014
Q&A
Contact Joseph Reddix:
joseph@reddixgroup.com
The Network is the Prime!
17
An Alternative to the Prime/Subcontractor
Model - The Reddix Group