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Babak Nouri, Vice President, Business Development April 19, 2012

Subcontracting: Doing Business with Prime Contractors 2012 OSDBU Procurement Conference. Babak Nouri, Vice President, Business Development April 19, 2012. The Current Environment. The Challenge - Government customers have challenges that affect the business environment

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Babak Nouri, Vice President, Business Development April 19, 2012

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  1. Subcontracting: Doing Business with Prime Contractors 2012 OSDBU Procurement Conference Babak Nouri, Vice President, Business Development April 19, 2012

  2. The Current Environment • The Challenge - Government customers have challenges that affect the business environment • Budget challenges resulting in reduced discretionary dollars are forcing hard choices • Limited resources affect the acquisition cycle: • Opportunities taking longer to be awarded • Increased use of indefinite delivery/indefinite quantity vehicles (including GSA schedules) • The cost of doing business as a prime has increased significantly • The Opportunity – from a small business perspective teaming allows a chance to: • Increase revenue at reduced opportunity cost • Diversify current revenue/customer base • Build past performance • The Reality • Crowded space with many, many voices • Large businesses realize the value small businesses can bring • Primes are more selective in terms of subcontractor selection for a variety or reasons

  3. Ways to Engage a Large Business (Big Picture) • Too little, too late • Inquiry regarding teaming opportunities following press release of contract award • Identifying open job positions on large business website • Passive (“just enough”) • Registering on CCR and SBA websites • Registering on large business small business website • Generic email to company small business office • Active • Marketing federal agency customers to: • Identify upcoming opportunities • Learn and become familiar with the contractor landscape at customer location • Identify opportunities through forecasts and other market research tools to develop a pipeline

  4. Ways to Actively Engage a Large Business Time and Effort Required • Meeting prime contractor personnel • Presenting capability briefing • Discussing opportunities • Teaming/Subcontracting • Your firm has knowledge of the opportunity • Firm has demonstrated past performance and customer knowledge • Relationship formalized well in advance of the opportunity being competed through teaming agreement • Use of a prime’s existing contract vehicle to facilitate business • Business has marketed opportunity and customer is receptive with caveats • Customer is constrained/prefers to use certain IDIQ/GWAC vehicles • Critical step is to match opportunity to: • Contract scope • Terms and conditions unique to contract

  5. Teaming Decisions – A Deeper Dive • Scenario 1: Follow-on contract • We have an incumbent subcontractor team • Small possibility for team adds to cover a niche requirement or small business socioeconomic category • Priorities: • Candidates known to the customer; • Relevant experience in the niche area; • Relevant experience on a ‘like’ contract • Scenario 2: New opportunity (SAIC is not a current prime) • Same priorities as above but more opportunity for new subcontractors • Strong preference given for “incumbent” subcontractors • Scenario 3: MAC IDIQ (or GWAC-type contracts) • Larger number of subcontractors • Less stringent on selection priorities • Opportunities will be at the task order level – be proactive and responsive Most teaming decisions are based directly tied to an SOW/PWS well before the RFP is released

  6. Things to be mindful of and strategies to consider • Teaming Discussions • Make sure an NDA (non-disclosure agreement) is in place before meaningful negotiations • Secure a signed teaming agreement to ensure being on the team • Assign points-of-contact to effort and know prime POCs including: • Capture manager (and possibly proposal manager) • Procurement/Subcontracts • Program manager • “Blocking & Tackling” – Proposal phase • Be responsive to all data calls during proposal phase and any down-select/BAFO efforts • Share any market intelligence you come across • Continue to place an emphasis on stellar performance and employee retention • Post award • Secure a signed subcontract • Get to know the Program Manager • For IDIQ contracts: • Plan to actively market • Understand how task orders will be shared/disseminated • Avenues to differentiate yourself from other subcontractors • Consider investing in technical certifications for the organization or employees • Know the customer and target your teaming activities • Develop a competitive cost structure – cost has at times been the onlyfactor

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