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ENERGY • ENVIRONMENT • NATIONAL SECURITY • HEALTH • CRITICAL INFRASTRUCTURE
© SAIC. All rights reserved.
Babak Nouri, Vice President, Business DevelopmentApril 19, 2012
Subcontracting: Doing Business with Prime Contractors
2012 OSDBU Procurement Conference
SAIC.com
© SAIC. All rights reserved.
The Current Environment
• The Challenge - Government customers have challenges that affect the business environment
– Budget challenges resulting in reduced discretionary dollars are forcing hard choices– Limited resources affect the acquisition cycle:
• Opportunities taking longer to be awarded• Increased use of indefinite delivery/indefinite quantity vehicles (including GSA schedules)
– The cost of doing business as a prime has increased significantly
• The Opportunity – from a small business perspective teaming allows a chance to:
– Increase revenue at reduced opportunity cost– Diversify current revenue/customer base– Build past performance
• The Reality– Crowded space with many, many voices– Large businesses realize the value small businesses can bring– Primes are more selective in terms of subcontractor selection for a variety or reasons
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Ways to Engage a Large Business (Big Picture)
• Too little, too late– Inquiry regarding teaming opportunities following press release of contract award– Identifying open job positions on large business website
• Passive (“just enough”)– Registering on CCR and SBA websites– Registering on large business small business website– Generic email to company small business office
• Active– Marketing federal agency customers to:
• Identify upcoming opportunities • Learn and become familiar with the contractor landscape at customer location
– Identify opportunities through forecasts and other market research tools to develop a pipeline
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Ways to Actively Engage a Large Business
• Meeting prime contractor personnel – Presenting capability briefing – Discussing opportunities
• Teaming/Subcontracting– Your firm has knowledge of the opportunity– Firm has demonstrated past performance and customer knowledge– Relationship formalized well in advance of the opportunity being
competed through teaming agreement
• Use of a prime’s existing contract vehicle to facilitate business– Business has marketed opportunity and customer is receptive with
caveats– Customer is constrained/prefers to use certain IDIQ/GWAC vehicles– Critical step is to match opportunity to:
• Contract scope• Terms and conditions unique to contract
Time and Effort
Required
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Teaming Decisions – A Deeper Dive
• Scenario 1: Follow-on contract– We have an incumbent subcontractor team – Small possibility for team adds to cover a niche requirement or small business
socioeconomic category– Priorities:
• Candidates known to the customer;• Relevant experience in the niche area; • Relevant experience on a ‘like’ contract
• Scenario 2: New opportunity (SAIC is not a current prime)– Same priorities as above but more opportunity for new subcontractors– Strong preference given for “incumbent” subcontractors
• Scenario 3: MAC IDIQ (or GWAC-type contracts)– Larger number of subcontractors– Less stringent on selection priorities– Opportunities will be at the task order level – be proactive and responsive
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Most teaming decisions are based directly tied to an SOW/PWS well before the RFP is released
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Things to be mindful of and strategies to consider
• Teaming Discussions– Make sure an NDA (non-disclosure agreement) is in place before meaningful negotiations– Secure a signed teaming agreement to ensure being on the team– Assign points-of-contact to effort and know prime POCs including:
• Capture manager (and possibly proposal manager)• Procurement/Subcontracts• Program manager
• “Blocking & Tackling” – Proposal phase– Be responsive to all data calls during proposal phase and any down-select/BAFO efforts– Share any market intelligence you come across– Continue to place an emphasis on stellar performance and employee retention
• Post award– Secure a signed subcontract– Get to know the Program Manager – For IDIQ contracts:
• Plan to actively market• Understand how task orders will be shared/disseminated
• Avenues to differentiate yourself from other subcontractors– Consider investing in technical certifications for the organization or employees– Know the customer and target your teaming activities– Develop a competitive cost structure – cost has at times been the only factor
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