2022 Procurement Playbook - DOD (01/28/2022)

FEDERAL GOVERNMENT
CONTRACTING
PROCUREMENT
PLAYBOOK
2022 WEBINAR SERIES
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Fridays @ 12pm Eastern
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ABOUT THE SERIES:
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PROCUREMENT RULES, REGULATIONS & NUANCES
FRIDAYS – 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!

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 Full training calendar: virginiaptac.org & useful links
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 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.

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DOING BUSINESS WITH
DOD
DEPARTMENT OF DEFENSE

MEET OUR PANELISTS

DATA PERSPECTIVE:
ARCHISHA MEHAN
ARCHISHA@FEDMINE.US

M&A PERSPECTIVE:
MITCH MARTIN
MMARTIN@MCLEANLLC.C
OM

GOVERNMENT
PERSPECTIVE:
VICKY MUNDT
VICTORIA.L.MUNDT.CIV@MAI
L.MIL

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 – allowing reporting & analysis not previously possible.
Fedmine is now part of GovSpend, the largest provider of data and P.O. in
the SLED market.

FEDMINE -
DoD – Total Contracts Awarded
For FY 21, the DoD awarded $48.78B to 7,687 companies, down from the $52.99B
awarded in FY 20 – link to FY 21 report
• Contracts awarded under National Interest Action Code for Covid account for $180.8M
in FY 21, compared to $577.9M in FY 20
• $1.14B was awarded as OTA’s – link to report
• $353M was awarded as SBIRs &STTR Contract awards – link to report
Note: Contract data is as of 1/24/22.
Agency Code is 9700

FEDMINE -
DoD – Contracts Awarded – Contd.

FEDMINE -
DoD – Top NAICS DoD – Top Categories
Note: % is based on total DoD spend of $48,8B in FY 21

FEDMINE -
DoD – Top Primes

FEDMINE -
DoD – Top Business – Small Business

FEDMINE -
DoD – Top GWACs

FEDMINE -
DoD – Exhibit 53

FEDMINE -
DoD – Opportunities
Opportunities can be:
• New opportunities based on new initiatives
• Contracts that are expiring that could be recompeted
Where do you get the information:
• DoD Budget and Program information
• Look at the PreSolicitations and Sources Sought Notices in sam.gov
• Create expiring contract searches based on what you do!

FEDMINE -
DoD – Opportunities

FEDMINE -
DoD – Opportunities – Expiring Contracts – Top NAICS Codes

FEDMINE -
DoD – Opportunities – Expiring Contracts awarded as small business

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

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 Cubic’s
product development.
acquired by
Closed Date: 8/19/21
Price: $1,000.0M
EBITDA: N/A
Revenue: N/A
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
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 Amentum’s growth into
the intelligence and technology market.

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
 Federal budget and spending dynamics
 Political factors
 Public market valuations
 Economic and market performance
 Interest rates
 Contract award basis
 Contract role (prime / sub)
 Backlog
 Recompete profile
 Financial profile / size
 Management quality – depth & breadth
 Customer mix
 Capabilities
 Addressable market
 Proprietary technology – IP
 Business model - product vs services
 Contract vehicles
 Alignment with funding priorities

M&A ACTIVITY -
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

M&A ACTIVITY -
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

MAIN LINK TO AGENCY / DEPARTMENT:
https://www.defense.gov/
LINK TO SMALL BUSINESS OFFICE:
https://business.defense.gov/Small-Business/DoD-Small-Business-Offices
ABOUT THE SMALL BUSINESS OFFICE:

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

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

GOVERNMENT – 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

GOVERNMENT – DOD Mentor Protégé Program:
DOD Mentor Protégé 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

GOVERNMENT – CONNECT:
business.defense.gov
osd.business.defense@mail.mil
@businessdefense
facebook.com/businessdefense
CONNECT
“A patriotic passion to serve small businesses that protect the warfighter.”

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

ARCHISA
ARCHISA@FEDMINE.US
MITCH MARTIN
MMARTIN@MCLEANLLC.COM
VICKY MUNDT
VICTORIA.L.MUNDT.CIV@MA
IL.MIL
THANK YOU TO OUR PANEL!

2022 Procurement Playbook - DOD (01/28/2022)

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