BUSINESS DEVELOPMENT &

NETWORKING…know what you are selling and why…

Germanna Government Contracting Seminar 2011

Agenda

1. The Foundation Know Your Business Be Willing To Risk It All Don’t Go It Alone Long Term Vision Build A Business Plan What Is Unique About Your Idea Establish A Culture

2. Relationships Are Key3. Practical Steps4. In Depth Look (SBIRs/STTRs)

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Germanna Government Contracting Seminar 2011

Know Your Business

Hands-on Experience Language, Acronyms, Organizations, Systems, Tools, etc. Landscape Movers and Shakers Get Involved in Peripheral Organizations (Chamber, MAC,

FredTech, SNA, IEEE, SISO, OMG, AOC, Business Roundtables and After Hours, NCMA, ASNE, NSBA/SBTC, BBB, QAISC, NDIA, Breakfast Clubs, etc.)

“Go to the ant, you sluggard; consider its ways and be wise!” Pr 6:6

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Germanna Government Contracting Seminar 2011

Be Willing To Risk It All

If you won’t invest – how can you convince others to invest?

Requires a passion and love for what you will be doing

Insufficient capital is a common mistake Angel / VC Investors verses Private

“The plans of the diligent lead to profit as surely as haste leads to poverty.” Pr 21:5

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Germanna Government Contracting Seminar 2011

Don’t Go It Alone

Wisdom in the council of many Many hands make light work – lots of hats to wear

HR, Security, Facilities, Finance, Contracts, BD, Marketing, IT, Corporate Management, Investor Management, etc.

More Partners means More “Skin in the game” means More folks working to make it a success

Maintain balance between home and work

“Plans fail for lack of counsel, but with many advisers they succeed.” Pr 15:22

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Germanna Government Contracting Seminar 2011

Long Term Vision

Vision = Patience with Reachable Goals Do not let failures defeat you Drive, determination and positive attitude

keeps you moving forward through the bumps High percentage of businesses fail within 5

years

“Where there is no vision, the people perish…” Pr 29:18

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Germanna Government Contracting Seminar 2011

Build A Business Plan

Road map What you share with others Writing it down is the first step to making

it real

“The mind of man plans his way, But the LORD directs his steps.” Pr 16:9

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Germanna Government Contracting Seminar 2011

What Is Unique About Your Idea

Why would someone want to work with / for you?

What is it that will set you apart from your competition?

“I will give you hidden treasures, riches stored in secret places, so that you may know that I am the LORD, the God of Israel, who summons you by

name.” Isa 45:3

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Germanna Government Contracting Seminar 2011

Establish A Culture

Defined by your Purpose, Vision, Mission and Core Values Purpose – why you want your business to exist Vision – purpose translated to your “field of play” Mission – wheels that allow you to move toward your Purpose and

Vision Core Values – measuring sticks by which you can determine how far

down the road toward your Purpose and Vision you have traveled

“You, my brothers and sisters, were called to be free. But do not use your freedom to indulge the flesh; rather, serve one another humbly in love.”

Gal 5:13

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Germanna Government Contracting Seminar 2011

Relationships Are Key

With co-workers and peers With other companies With bank With your employees With your customers With your managers With your investors With your local community With your technical communities of interest

“Even a child is known by his actions, by whether his conduct is pure and right.” Pr 20:11

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Germanna Government Contracting Seminar 2011

Check Your Foundation: Know your business Needed capital Team assembled Business plan w/Long term

vision Established culture Consistent marketing material The culture is attracting the

right work force Leverage existing relationships

1

BDFunnel

Fill Your Funnel with Opportunities:

Opportunities grow as your reputation and relationships grow• FedBizOps• SBIR / STTR• BAAs• CRADAs• GSA• Seaport-e• Subcontracts (large/small)• CEOSS• Commercial

2

TheBusiness Development

& NetworkingTrack

Build your reputation: Best way to increase your

relationships• Past Performance• CPARS• Community involvement

(local and technical)• Conferences and Symposiums• Technical papers and books• Newspapers / Articles

5

Deliver on your wins. Employees are the best BD’ers

Manage expectations Over deliver Pay attention to details

4

Celebrate Wins! they build “roads” for the delivery of work (i.e., task orders / delivery orders) and the building of relationships (old and new)

3

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Germanna Government Contracting Seminar 2011

Practical Steps (1 of 2)

Help Small Business Administration (SBA)

http://www.sba.gov/ How To Do Business With…

http://www.navsea.navy.mil/nswc/dahlgren/default.aspx Business Opportunities Small Business Tool

Small Business Advocates Naval Surface Warfare Center Dahlgren - Mr. Kris Parker

Contact Info:Phone: 540-653-4806kristofer.parker@navy.mil

DoD Office of Small Business Programs http://www.acq.osd.mil/osbp/

Center for Innovative Technologies (CIT) http://www.cit.org/

All Large Primes have Small Business Programs http://www.generaldynamics.com/suppliers/supplier-diversity/small-business-li

aison/index.cfm

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Germanna Government Contracting Seminar 2011

Practical Steps (2 of 2)

Practical Growth “Do’s” Establish “Template packages” for using your current contract vehicles – ease

of use for customers Consistency between Web, Printed Material and Audio Maintain Raw Data: Resume’s, Capabilities, Job Descriptions, Past

Performance, CPARS – should align with business plan and goals Recruit through existing employees and their extended network Your employees are your best business developers Use Internships as recruiting mechanism in addition to helping build

Engineers Submit and present technical papers at conferences and symposiums Author books (or chapters in books) Respond To “Sources Sought” Announcements – Helps Keep Contracts as

Small Business Set-asides Be involved in local community activities Contact list with call plans Maintain a Funnel Navy TAP Attend Industry Days & Technical Fairs

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Germanna Government Contracting Seminar 2011

Contract Development - In Depth Look

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Germanna Government Contracting Seminar 2011

How Do You Get Started Contractually?

The logical contract build-up: Subcontract to a company you know SBIR/STTR proposals Broad Agency Announcements (BAAs) Submit proposals on larger competitive

procurements Open competitions through sites like FedBizops Open competition through omnibus contracts

like SeaPort

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Germanna Government Contracting Seminar 2011

SBIR / STTR Program

SBIR – Small Business Innovative Research Program Started by Congress in 1982 Purpose:

To foster and stimulate small business development of technology for Federal R&D needs

Increase private sector commercialization STTR – Small Business Technology Transfer

program Established in 1992 by Congress Small business must partner with a University,

FFRDC, or non-profit organization

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Germanna Government Contracting Seminar 2011

Participating Agencies

Eleven Participating Agencies Dept. of Agriculture (USDA) Dept. of Commerce (NOAA, NST Dept. of Defense (Air Force, Army, DARPA, DTIC, MDA, DTRA, Navy,

National Geospatial Intelligence Agency, SOCOM (Special Operations Command)

Dept. of Education (IES, OSEDS / NIDDR) Dept. of Energy Department of Health & Human Services National Institute of Health Department of Homeland Security Dept. of Transportation: Environmental Protection Agency: National Aeronautics & Space Administration National Science Foundation Small Business Administration Dept. of Justice

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Germanna Government Contracting Seminar 2011

How SBIRs Work

Three phase process: Phase I

Up to $150K – recently raised from $85K 6 months duration + 3 month option task Feasibility Study

Phase II $1M – recently raised from $750K 18 mo – 24 months + 6 month option task Develop prototype

Phase III $50M ceiling limit, unfunded commercialization

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Germanna Government Contracting Seminar 2011

SBIR Eligibility

To be eligible for SBIR Funding,  companies must: be at least 51-percent American-owned,

independently operated, and located in the United States

Perform all work in the United States Be for-profit Be the primary employer of the lead researcher at

the time of award. That researcher may not be employed full time by another institution or company

Perform the majority of work themselves, rather than through consultants or subcontractors

Have 500 employees or fewer

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Germanna Government Contracting Seminar 2011

What It Takes to be Competitive for SBIRs

Small businesses that have an innovative technology or a novel approach to a problem Government is looking for innovation

Demonstrate strong commercial potential for that technology How will you take the technology to market?

Must perform at least two-thirds of the Phase I work and half of the Phase II work Balance can be done by consultants or subcontractors

No in-house percentage requirement for Phase III

Demonstrate (through past performance) the expertise and experience to perform the work outlined

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Germanna Government Contracting Seminar 2011

How STTRs work

Three phase process: Phase I

Up to $100K 12 months duration Feasibility Study

Phase II $750K 24 months

Phase III Unfunded commercialization

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Germanna Government Contracting Seminar 2011

STTR Eligibility

To be eligible for STTR Funding there must be a partnership between industry and a research institution: Same corporate requirements as SBIR Small business must be the submitter Research partner must be a University, FFRDC

or non profit Prime (small business) must perform at least

40% of the work Research partner must perform at least 30% of

the work A maximum of 60% can be subcontracted

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Germanna Government Contracting Seminar 2011

What It Takes to beCompetitive for STTRs

Partnership that works well together, has a good division of responsibility and has a good approach for developing technology Government is looking for innovation

Demonstrate strong commercial potential for that technology How will you take the technology to market?

Work percentages meet the requirements as specified in the previous slide No in-house percentage requirement for Phase III

Demonstrate (through past performance) the expertise and experience to perform the work outlined

Can be more competitive since fewer agencies do STTRs than do SBIRs (DoD, HHS, NASA, DOE and NSF)

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Germanna Government Contracting Seminar 2011

Typical Timeline

0 Mo. - Posting of Phase I topics 2 Mo. – Phase I Proposal due to government 7 Mo. – Phase I contract award 13 Mo. – Phase I completion and Phase II RFP

(Option) 16 Mo. – Phase II proposal submission 20 Mo. – Phase II contract award 44 Mo. – Phase II option task awarded (Option) 50 Mo. – Phase II complete; Phase III process

begins

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Germanna Government Contracting Seminar 2011

Intellectual Property

Any recorded technical information developed during the performance of an SBIR or STTR award: Reports and Charts Diagrams and Drawings Invention Disclosures Software documentation Software code

Property of the developing company/partnership Government has “government purpose rights” which

enables use in the gov’t and distribution to support contractors

Developing company is encouraged to commercialize the technology

Data rights expire 5 years after the LAST phase of the project (4 years for non DoD agencies)

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Germanna Government Contracting Seminar 2011

Phase III Nuggets Covers any work that “derives from, extends, or logically concludes

effort(s) performed under prior SBIR funding agreements”

Covers products and services

Data rights extend to the Phase III

Can go straight from a Phase I To a Phase III

No limit on the number of Phase IIIs for a particular topic

No limit on duration or dollar value

Phase III can be initiated by a different agency than the Phase I or II

No limit on time elapsed between Phase I/II and the Phase III award

No business size limits on Phase III

Phase IIIs are “sole source” since work has already been competed

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Germanna Government Contracting Seminar 2011

SBIR/STTR Statistics 2.5% of federal extramural budget (for agencies doing >$100M in

R&D) goes to SBIR program – This accounts for over $2B annually About $1.2B annual is DoD alone! .3% of federal extramural budget goes to STTR program – This

accounts for over $300M annually Over $24B awarded to small firms since 1982 – over 100,000

awards Awards have been made to businesses in all 50 states + Puerto

Rico and the District of Columbia Today, agencies evaluate over 25,000 proposals each year and

make about 6,000 awards to about 3,000 small high-tech companies each year

SBIR awardees generate 26 more jobs and $4 million in additional revenue after SBIR funding (vs. 6 additional jobs and $1 million in additional revenue for comparable, non-SBIR firms)

Nearly 50% of SBIR Phase II awardees bring their innovations to the market place

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Germanna Government Contracting Seminar 2011

Typical Proposal Outline

Cover page(s) – (Includes abstract for public release) Identification & Significance of the Problem or

Opportunity Technical Objectives Work Plan and schedule Related Work Relationship With Future R&D Potential post award applications Key personnel Facilities/Equipment Consultants & Subcontracts Commercialization strategy Cost Proposal

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Germanna Government Contracting Seminar 2011

Broad Agency Announcement

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Germanna Government Contracting Seminar 2011

FedBizOpps:• Open competitions• All branches of gov’t• Small business set asides• Very broad audience• Significant competition

SeaPort:• Open to companies that

have a SeaPort prime contract

• Navy only• Small business set asides• Narrower audience• Competition by region

Open Competitions

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Germanna Government Contracting Seminar 2011

Contact Info

Bob DuffySimVentions Business Developmentbduffy@simventions.com(540) 372-7727 x7005

Larry RootSimVentions CEOlroot@simventions.com(540) 372-7727 x7001

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