2. 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 Key
3. Practical Steps
4. In Depth Look (SBIRs/STTRs)
Germanna Government Contracting
5/31/2011 Seminar 2011
3. “Go to the ant, you sluggard; consider its ways and be wise!” Pr 6:6
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, Busine
ss Roundtables and After
Hours, NCMA, ASNE, NSBA/SBTC, BBB, QAISC, NDIA, Breakfa
st Clubs, etc.)
Germanna Government Contracting
5/31/2011 Seminar 2011
4. “The plans of the diligent lead to profit as surely as haste leads to poverty.” Pr 21:5
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
Germanna Government Contracting
5/31/2011 Seminar 2011
5. “Plans fail for lack of counsel, but with many advisers they succeed.” Pr 15:22
Wisdom in the council of many
Many hands make light work – lots of hats to wear
HR, Security, Facilities, Finance, Contracts, BD, Marketing, IT, Cor
porate 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
Germanna Government Contracting
5/31/2011 Seminar 2011
6. “Where there is no vision, the people perish…” Pr 29:18
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
Germanna Government Contracting
5/31/2011 Seminar 2011
7. “The mind of man plans his way, But the LORD directs his steps.” Pr 16:9
Road map
What you share with others
Writing it down is the first step to making it
real
Germanna Government Contracting
5/31/2011 Seminar 2011
8. “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
Why would someone want to work with / for
you?
What is it that will set you apart from your
competition?
Germanna Government Contracting
5/31/2011 Seminar 2011
9. “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
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
Germanna Government Contracting
5/31/2011 Seminar 2011
10. “Even a child is known by his actions, by whether his conduct is pure and right.” Pr 20:11
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
Germanna Government Contracting
5/31/2011 Seminar 2011
11. Check Your Foundation:
1 Know your business
Needed capital
Team assembled
Business plan w/Long term vision Fill Your Funnel with Opportunities:
Established culture Opportunities grow as your
Consistent marketing material 2
reputation and relationships grow
The culture is attracting the right • FedBizOps
work force • SBIR / STTR
Leverage existing relationships • BAAs
• CRADAs
• GSA
• Seaport-e
• Subcontracts (large/small)
The •
•
CEOSS
Commercial
Business Development
Build your reputation:
& Networking
5 Best way to increase your relationships
Track BD
• Past Performance Funnel
• CPARS
• Community involvement
(local and technical)
• Conferences and Symposiums
• Technical papers and books 3
Celebrate Wins! they build “roads” for
• Newspapers / Articles the delivery of work (i.e., task orders
/ delivery orders) and the building of
relationships (old and new)
4
Deliver on your wins. Employees
are the best BD’ers
Manage expectations
Over deliver
Pay attention to details
Germanna Government Contracting
5/31/2011 Seminar 2011
12. 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: 540-653-4806
kristofer.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-liaison/index.cfm
Germanna Government Contracting
5/31/2011 Seminar 2011
13. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
15. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
16. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
17. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
18. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
19. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
20. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
21. Three phase process:
Phase I
Up to $100K
12 months duration
Feasibility Study
Phase II
$750K
24 months
Phase III
Unfunded commercialization
Germanna Government Contracting
5/31/2011 Seminar 2011
22. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
23. 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)
Germanna Government Contracting
5/31/2011 Seminar 2011
24. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
25. 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)
Germanna Government Contracting
5/31/2011 Seminar 2011
26. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
27. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
28. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
30. 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
Germanna Government Contracting
5/31/2011 Seminar 2011
31. Bob Duffy
SimVentions Business Development
bduffy@simventions.com
(540) 372-7727 x7005
Larry Root
SimVentions CEO
lroot@simventions.com
(540) 372-7727 x7001
Germanna Government Contracting
5/31/2011 Seminar 2011