Elements of a Successful Agreement

1
John Reeder Vice President SpecPro, Inc.
Ted Terrazas Chairman TerraHealth, Inc.
Elements of a Successful Agreement
USAF MENTOR-PROTÉGÉ PROGRAM March 15, 2005
2
Basis of Agreement

• The Mentor-Protégé Program as set forth in
  legislative and regulatory coverage has three
  major goals.
• They are to
• Provide Incentives to DoD Contractors.
• Increase Overall Participation of SDBs. 
• Foster Long-Term Business Relationships.   

Consideration represents the element of
bargaining to indicate that each party agrees to
surrender something in return for what they
desire to receive.
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Strategic Expectations (Choose Your Partner
Wisely)

• Mentor
• Enhanced competitiveness
• Team with multi status company
• (Woman/Veteran Owned, SDB, 8(a), Minority,
  HUB, etc)
• Partner vs. Competitor
• Add or Extend capacity and capability in new
  business areas
• Protégé
• Develop enhanced Technical and Business
  capabilities
• Move from Sub to Prime position
• Benefit from unique contracting opportunities
  (i.e. ANC status)
• Extend national reach
• Refine Strategic and Tactical Competence and
  Resources

4
Peer-to-Peer Management Strategy

• Peer-to-Peer instead of Superior-to-Inferior
• Open communications standard
• Defined management responsibilities
• Consistent interaction, monitoring, and review
  of progress
• Facilitates problem resolution, recommendations,
  and quality control updates

5
Efficient Utilization of HBCU/MI

• Subject Matter Experts
• Specialized Training - Oracle Database Design
• Specialize Skills - Infrastructure Assurance and
  Security
• Intern Utilization (Win-Win-Win-Win)
• Mentor Wins - Use of interns results in
  full-time hiring
• Protégé Wins - Use of interns results in
  full-time hiring
• Intern Wins - Provides real life experience
• HBCU/MI Wins Providing opportunities to
  graduates/Supports Local Business
• Hi-Tech Classroom Instruction
• Use of On-Site Computer Labs
• Systems accreditation and certification path
  development

6
Lessons Learned

• Continued expansion brings evolving challenges
• Exponential growth drives facility,
  infrastructure, and human resources demands
• Weekly and monthly meetings are necessary to
  ensure all players understand current priorities
• Defined roles and assignments for Interns are
  necessary to alleviate confusion
• Significant notification and planning for the
  HBCU/MI classes are needed to alleviate stress on
  the trainees and instructor
• Graduation from 8(a)
• Requires aggressive business strategies plans
• Requires more robust marketing efforts
• Requires business teaming

7
Results

• SpecPro Inc.
• Gained acceptance into local business
  communities
• Enhanced Medical operations (Life Sciences)
• Increase in Revenue from 19M to 30M
• Added Teaming Partner
• Increase in Marketing opportunities
• TerraHealth Inc.
• New Contracts (383 growth in revenue, 282
  growth in employees, and a ROI 96 to 1)
• Information Technology Training/Transfer (Oracle
  and Information Assurance)
• Interns in HR, IT, and Marketing creating new
  capabilities
• Enhanced operations and knowledge through
  collaboration
• Facility Clearance
• Increased Revenue while Decreasing Expenses

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Future

• Thanks to our Mentor, SpecPro, TerraHealth Inc.
  is better capable in making America stronger
  through our support services which will
• Increase the pool of contractors
• Increase the overall participation of more
  capable Small Disadvantage Businesses
• Create long term relationships between large and
  small businesses
• Ensure a stable business base