LESG Capture Plan Template v1'2

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Theres No Free Lunch A Presentation of Small
Business Best Practices Donna Coleman Small
Business Advocate SAIC, Inc.
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Outline

• Why are we here?
• Learn about Small Business Opportunities
• Learn about the SBIR/STTR Programs
• Support AAUMRI
• Alternate Business Model
• Theres another model for working with Small
  Business
• Issues
• Value proposition for Small Business
• Supplier diversity versus Small Business
  Development
• Regulatory/mandatory versus Good Business Sense
• Discipline and Process in our Small Business
  Programs
• Technology Transfer
• Margin pressures
• Conclusion

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Why Were Here

• Review SBIR/STTR Opportunities
• Hear AAMURIs ability to support these
  opportunities.
• Small Businesses are Hungry
• Large Businesses Care
• Why Me?
• SAIC Cares
• We have a long history in working with AAMURI
• We have an Idea -- Thats Working!
• Share our Idea with you
• Most people will forget this presentation a few
  wont and those few will succeed.

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Two Models Only One Makes Sense


LB
SB
SB
LB
SBA Model Incentivizes subcontracting Does not
promote SB leadership
SAIC Value Model Incentivizes SB growth and SB
contract leadership
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Issues 1

• Value proposition for Small Business
  Relationships with Large Business
• Whats in it for me? everyone asks this.
• For Small Business
• Long term collaborative strategic growth
• New technologies
• Increased revenue, pipeline of opportunities,
  contract vehicles
• Position small company for acquisition.
• For Large Business
• Close relationship with business to chase small
  business set asides
• Derivative pull through business
• Niche business area partner
• Potential acquisition candidate
• Supplier diversity versus Small business
  development
• SAIC is not a manufacturing firm. Not focused on
  supplier diversity
• SAIC is services firm, seeking people who can
  make us strong
• We host Small Business and M/P programs in
  Business Development
• Focus is to GROW BUSINESS, not make SBA rankings
  and percentages
• June 30th SBA Re-Certification Regulation
• Novate ,Too Small/Too Big, Exit Strategy

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Issues 2

• Regulatory/mandatory versus Good business sense
• Dont focus on compliance. Business and
  profitability are all that counts.
• Flawless execution.
• Dont just answer the mail on a proposal.
• Backstop model
• Seek credible small businesses who can prime
  Small Business Set Aside
• Put financial controls in place to ensure a
  reputable prime
• Develop close relationship, bid together
• SAIC provides niche support where they are not
  skilled to bid
• Ask small business What do you need to win?
  Tell them Well do it.
• Dont get credit with SBA with this approach, but
  you grow business and win on SBSA
• A servant leader mentality grows business and
  makes money. Its counter intuitive but its true.

IF
THEN
LB
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Issues 3

• Discipline and process (SAIC Best Practice)
• Rule 1 Know the company
• CHEMISTRY! If the foundation of the business
  relationship is wrong, youre relying on dumb
  luck to succeed.
• Ensure prior business with the company. Know the
  General Manager.
• Rule 2 SB is in niche business to extend
  skills, customer diversity
• Precludes stepping on SBs business if they are
  niche, not our business line
• Rule 3 Set standards (SAIC rule, not in DoD or
  NASA requirements)
• At least 6M revenue, 60 people, in business 6
  years
• Why? Aggressive proposal activity is a major
  financial drain on the small business. This
  ensures critical mass to enable the company to do
  their part in the mentoring process.
• Rule 4 The 13 questions and our expectation
  management
• SAIC rule to bring on a SB. Not required by DoD
  or others.
• SB expects to be mentored and grown. We work this
  mutual agreement hard. Ensures each side
  understands what they are signing up to.
• Rule 5 Formal Program Manager assigned to each
  SB
• Rule 6 Regular meetings with SAIC leadership
• Opportunity to share their expectations not met,
  critique the Program Manager

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Issues 4

• Technology Transfer
• Core of each SB program
• Skill or tool can we transfer that makes them
  attractive to customer base.
• This costs money. To buy the tool, train it. To
  train and transfer processes.
• Margin pressures
• This Backstop program consumes resources.
• Develop corporate infrastructure, establish and
  refine tools, infrastructure assessment, HR
  assessment, accounting programs, organizational
  structure, competitive assessments, pipeline
  development, related training.
• Program manager, technology transfer, tool
  purchases, training programs
• Lack of resources on low overhead contracts
  severely limits capital to fund work with the SB.
  Limited or no resources with pressures on lower
  rates. Overhead use lowers time sold
• Solution to ensure a successful program is to
  fund it at the customer level.
• Translates to time sold programs with no fee
• Lack of funding limits the value proposition.
  Limited out of pocket funds.
• Where weve been funded, we accomplished 2x or
  more with a Strong SB or Protégé

Theres No Free Lunch
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Conclusion

• Expectation management is the first key to
  success.
• My 5K Analogy
• Train 9 weeks from Couch Potato to 5K
• Chart the course
• Then run the real course!
• Re-Set Expectations and Train Some More
• Run to Success!

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Conclusion

• Outcome of Relationship depends on flawless
  execution
• Focus on business development versus supplier
  diversity
• Discipline and process
• Technology transfer
• Small business backstop model
• The goal of a successful Relationshp must be to
  grow business for the Small Business and the
  Large Business.
• Outcome of a program is a direct function of what
  you put into it.
• If you resource a program, it will produce more
  value than if done out of hide.
• Small business is good business for all of us!
• A servant leader mentality grows business and
  makes money. Its counter intuitive but its
  true.