Judy Bradt, Principal

1
Advanced Issuesin US Government
Contracting Keys to SuccessA Briefing for
Canadian Industry at the US Maritime Security
Expo
Judy Bradt, Principal
21 Sep 2005
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Agenda

• US Government Business Development
• US Maritime Security Buyers Money
• Forecast Opportunities in USCG
• Access, Rules Process Your Questions re
• GSA Schedules
• Small Business Set Asides
• US Export Controls
• Government Relations

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You already have expertise.

• Vendor Registration
• US Government Information
• US Government Procurement Rules
• Solicitations
• Trade Agreement Coverage
• Meeting the People

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US Government Business Development

• Whats most effective?
• Whats most frustrating?

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Business Development

• Meet the people
• Top officials sessions, receptions
• Program managers visiting
• Staff at government booths
• Consider hiring expertise for
• Business development
• Public relations
• Government Relations
• Legal issues

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US Maritime Security

• Buyers, Money,
• Government Relations

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Maritime Security Buyers

• Federal Department of Homeland Security
• Transportation Security Administration (TSA)
• Customs and Border Protection
• Immigration and Customs Enforcement
• Federal Emergency Management Agency (FEMA)
• US Citizenship and Immigration Services (USCIS)
• US Coast Guard (USCG)
• State Local Port Authorities, first
  responders, emergency preparedness, law
  enforcement
• Private Sector Port Authorities carriers
  infrastructure

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Maritime Security Money

• The Port and Maritime Security Act
• Funding through FY2006
• Cargo Protection/Screening, Infrastructure,
  Security Planning
• Mandates local Port Security Committees
  Maritime Transportation Security Programs
• Specifies equipment systems, studies,
  technologies
• Reauthorization over the next 12 months
• Will there be money for
• your systems, solutions and services?

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Government Relations

• (Okay. Lobbyists.)

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Government Relations / Lobbyists

• When government relations can matter
• Regulatory standards
• Congressional funding earmarks
• Program funding needed
• Innovative solutions needing champions
• GET PROFESSIONAL HELP.

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Government Relations / Lobbyists

• Look for
• References success integrity
• Understands you potential buyers
• Current, relevant contacts / connections
• Typically, monthly retainer for a year.
• Gut feel comfort

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Market Research Sources

• Free. Good. Enough.
• Pick any two.

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Prospecting?Follow the Money.

• Past Contract Data
• Bid Notices
• Budget bills
• Forecasts
• Industry Days
• Marketing Calls
• Constant Presence

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Forecast Opportunities in USCG

• Free Information
• Commercial Services

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US Coast Guard (USCG)

• Part of Department of Homeland Security
• Mission Organization
• Acquisition Forecasts
• New Forecast October 1st
• Identifies who buys what, and where
• Acquisition structure
• Doesnt identify program managers with needs

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Contact Sources

• Federal Yellow Book
• Government directories from clients
• Experienced reps
• Government Affairs Specialists
• Client Referrals (Canada USA)
• Shoe Leather Meet People!

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USCG Buying in FY 2003

• Top Contractors
• General Dynamics
• Lockheed Martin
• QSS
• PSI Net
• GTSI

• Top Purchases
• InformationTechnology
• Radio Navigation Eqt.
• Ship Repair
• Building Maintenance
• Construction
• Engine Maintenance
• Audio-Visual Services

Source Eagle Eye Inc.
Wide range of purchases
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Government Market Data Services

• Free Test Drives of these Data Services.
• Forecasts, agency info, awards (esp. IT)
• Input, Federal Sources and e-Pipeline
• Past contract data (all products/services)
• Eagle Eye Inc.
• See sample report USGC in FY03

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Professional Market Research

• Trade Commissioners Market Prospects
• Data Service Firms
• Niche Consultants
• Business Development Firms
• Often have former government employees
• May also provide lobbying

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Access, Rules Process

• Answers to Your Questions

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The Buy American Act (BAA)

• Price Preference (not prohibition)
• 12 for Small Business 6 for the rest
• 50 on military contracts
• Domestic End Products
• 100 US production gt50 US content
• goods used inside USA
• goods delivered incidental to services
• Waivers
• Price, quantity, quality, public interest

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US rules say NAFTA beats BAA FARS Part 25
Bookmark it. Learn it. Tell your company. Tell
your channels. Tell your prospects.
http//farsite.hill.af.mil/vffara.htm
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DFARS Part 225 says how DoD can buy Canadian
Bookmark it. Learn it. Tell your company. Tell
your channels. Tell your prospects.
http//farsite.hill.af.mil/vffara.htm
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Canadian U.S. firms compete equally when

• NAFTA covers the buying department and goods or
  services purchased, and
• The federal goods or services contract exceeds
  US58,550 or
• The federal construction prime contractexceeds
  US7,611,532

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Buy American applies to

• Federal products, services including RD
  departments, and lower-value contracts not
  covered by NAFTA
• Exemptions for National Security (NAFTA 10.18)
• Small Business Set-Asides
• State Local Prime Contracts
• Always for projects receiving federal grants
  (e.g. airports, highways, transit)
• Sometimes for goods, services, or construction

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If Buy American appliesRequesting Waivers

• Each situation is unique.
• Specifics at FAR Part 25 / DFARS 225.103
• Price, quality, quantity, public interest
• Military must beat domestic price by 50
• Only prime contractor can apply
• Only buying agency can grant
• Must meet one or more waiver criteria

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GSA Schedules

• YOU ASKED
• Do I need one in order to sell?
• When does it make sense?
• Were on GSA. How can we promote our Schedule
  Contract?

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What a GSA Schedule is

• Negotiated contract for goods/services
• Can run up to 20 years
• Central terms, conditions, pricing
• A hunting license
• A door-opener
• A deal-closer
• No guarantee of business.
• Not the only way to sell.

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GSA Schedule 70 Chilling.

• Fiscal 2004 US 16,786,315,711
• 4,975 firms (13 over 2003)
• Top vendor (Dell) 10 next 24 firms 40
• Top 100 firms won 67
• 4,950 firms shared US8.5 B (49)
• 2,210 firms (44 of vendors) sold lt 25K
• 1,911 firms (38 of vendors) sold 0

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Worth considering if

• Prospects prefer to buy that way
• You spend time money marketing
• You have commercial sales, 2 year track record
• Buyers close lots of 4th quarter business
• Primes require it for teaming
• Losing too much margin selling via partners

Dont get a GSA Schedule until you know how you
will use it.
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Consider other options if

• Buyers can and will use other vehicles
• Forecast sales lt 25,000
• No time to prepare or learn market
• Cant meet GSAs admin requirements
• You wont adapt marketing materials
• Low priority marketing/sales effort

Even if you use someone elses Schedule, you must
do the marketing!
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Ways to Get a Schedule

• Do it yourself / with minimal help
• Classroom-assist FedMarket.com
• Consultants
• Large consultancies, law firms
• Small specialty firms
• Solo consultants

Learn more about your options www.summitinsight.
com/article10--gsatimemoney.asp
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How Can I Promote My GSA Schedule?

• Web site
• Marketing material
• Publicity, advertising
• Direct mail / email
• Fiscal Year End Tactics!
• Every sales call

BUY THE BOOK! www.governmentmarketingbestpractices
.com
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Barrier EffectsBeyond Buy American

• Small Business Set Asides
• Export Controls

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Small Business Set Asides

• YOU ASKED
• Why do they keep hitting my firm?
• Dont they violate NAFTA?
• How can I win business despite them?

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Small Business Set-Asides

• NOT COVERED BY NAFTA!
• FAR Part 19 Defines US small business
• US Government 23 goal
• US primes seek to meet quota
• Canadian companies usually dont qualify

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Small Business Work-Arounds

• Smart marketing, long lead times
• Teaming content limitations
• Consider opening a US subsidiary
• 2 years
• Must meet FAR Part 19 definitions
• Sometimes, no solution

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Innovative Security Solution?

• The Technical Support Working Group (TWSG)
• manages US interagency and international RD for
  combating terrorism
• rapid development for high priority needs
• joint international cooperative RD with major
  allies
• Antiterrorism (defensive)
• Counterterrorism (offensive)
• Intelligence Support
• Consequence Management

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www.tswg.gov
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US Export Controls

• How do they affect me?

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US Export Controls

• Do you import items from USA for your solutions?
• Hardware
• Software, technical information
• Might be controlled by US Department of State
• What must I look out for?
• Reticence of US industry export licenses
  exemptions
• Registration with Canadas Controlled Goods
  Programme
• Canadian Charter of Rights and Freedoms
  obligations
• Compliance, compliance, compliance.
• GET PROFESSIONAL HELP. PERIOD.

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International Trafficin Arms Regulations (ITARs)

• Title 22, Code of Federal RegulationsParts
  120-130 (at www.pmdtc.org)
• Controls export from USA of Technical Data,
  Defense Articles Defense Services

Purpose is National Security But Impacts Trade
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US Department of State Directorate of Defense
Trade Controls

• Administers ITAR to items on US Munitions List
  (USML) and Missile Technology Control Regime
  (MTCR) Annex
• Registers US exporters and manufacturers of USML
  items
• Issues Export Licenses (for controlled items)
• Issues Technical Assistance Agreements (for
  defense services, technical data)
• Limits re-transfers of controlled items
• Administers arms embargoes

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ITARs Canadian Exemption

• ITAR 126.5 READ IT.
• Permits license-free export to Canada of certain
  controlled items typically hardware
• Technical Assistance Agreements (TAAs) are still
  needed for many items like data specifications
• Canadian importers under ITAR 126.5 must
  participate in Canadas Controlled Goods Programme

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What ITARs Meanto US Industry

• US exporter must ask permission to export items
  or transfer data.
• Process takes weeks outcome uncertain.
• Penalties include jail time heavy fines.
• US firms are wary of using the Canadian Exemption
  (ITAR 126.5)
• How badly does
• US government need you?

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Summary

• US Government Business Development
• US Maritime Security Buyers Money
• Forecast Opportunities in USCG
• Access, Rules Process Your Questions re
• GSA Schedules
• Small Business Set Asides
• US Export Controls
• Government Relations

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• Find hidden opportunities.
• Meet top people faster than you imagined
  possible.
• Accelerate Your Success. Save Time and Money.

judy.bradt_at_summitinsight.com 703.627.1074 www.sum
mitinsight.com
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Best wishes to Canadian Industry at OCEANS 2005
Judy Bradt, Principal
20 Sep 2005