Message from the President

1. Huntsville Association of Small Businesses in Advanced Technology Message from the President July 1, 2010

2. Agenda • Thanks for theBoD’s Hard Work • HASBAT Working for Balance on EXPRESS • Continuing to Track Situation at NASA • The Next Six Months

3. HASBAT’s Board 1st VP: Bill Whipple 2nd VP: Shawn Wilson Secretary: Tracy Swayne Treasurer: Dale Brown Executive Assistant: Amy Shelton Awards/Scholarships Committee: Shawn Wilson Ways & Means/Finance: Dale Brown, David Phillips Government Affairs: Ben Lowe, Larry Lewis • Industrial Affairs/Opportunity Development: Bill Allen, Eric Folk, • Michael Shelton Membership/Member Services: Dale Jobes, Steve May Programs: Sharon Myers, Jan Eiras Public Relations: Tracy Swayne, Bill Whipple

4. Huntsville Association of Small Businesses in Advanced Technology Issues on EXPRESS Small Business (SB) and Large Business (LB) Presented to Mr. Ronnie Chronister, Deputy to the Commanding General, AMCOM June 8, 2010

5. Agenda • HASBAT • Issues on EXPRESS • TORFQ 2010T-6 • 2010 EXPRESS Awards Analysis • Organizational Conflicts of Interest • Summary

6. HASBAT • The Huntsville Association of Small Businesses in Advanced Technology is a non-profit organization formed to serve the needs and represent the interests of its members. • We are a dynamic group of business people who work for the development of and promote opportunities for small businesses in advanced technology. • We work to promote increased small business prime and subcontracting opportunities for our members as they compete for business at the US Army Aviation and Missile Command, Marshal Space Flight Center, Space and Missile Defense Command, the Corps of Engineers and other Government agencies and organizations.

7. HASBAT Membership • Technical Member Firms 104 • Associate Member Firms 28 • Honorary Member Firms 7 • Total Member Firms 139 • Total Employees of Members 7,182

8. Issues on EXPRESS Small Business (SB) vsLarge Business (LB)

9. TORFQ 2010T-6

10. TORFQ 2010T-6 (Cont.)

11. TORFQ 2010T-6 Language Please be advised that the quotation contents require you to provide the socio-economic status for yourself and each subcontractor/team member utilized in this quotation. Your submission of this information serves as confirmation that the status shown is the same as that identified in the applicable GSA schedule, subject to the NAICS applicability defined in the BPA and the current associated size standards established by the Small Business Administration (SBA), as of the date of your task order quotation submission. Further, should you be selected as the successful offeror, your signature on the task order award serves as confirmation that the socio-economic status provided in the quotation is the same as that identified in the applicable GSA schedule, subject to the NAICS applicability defined in the BPA and the current associated size standards established by the Small Business Administration (SBA), as of the date of your signature on the task order award. Revised Language Contained in Subsequent TORFQs Please be advised that the quotation contents require you to provide the socio-economic status for yourself and each subcontractor/team member utilized in this quotation. Your submission of this information serves as confirmation that the status shown is the same as that for the NAICS identified in the BPA, in accordance with the current associated size standards established by the Small Business Administration (SBA), and that the identified NAICS is available on the applicable GSA schedule, as of the date of your task order quotation submission. Further, should you be selected as the successful offeror, you will be required to certify your socio-economic status for the NAICS identified in the BPA, in accordance with the current associated size standards established by the Small Business Administration (SBA), and that the identified NAICS is available on the applicable GSA schedule, as of the date of your signature on the task order award.

12. Changing Policy on Size Certification March 10, 2010 What was the objective?

13. Changing Policy on Size Certification May 26, 2010 -----Original Message----- From: Tully, Marcia N Mrs CIV USA AMC [mailto:marcia.tully@us.army.mil] Sent: Wednesday, May 26, 2010 11:42 AM To: (B&A) ASI - Mary Griffith; (B&A) DSS - Gary Bain; (B&A) Navigator - Jason Carver; (B&A) Perkins - Mark Burnette; (B&A) QuantiTech - Pam Swinford; (LOG) AEPCO - Kyle Renehan; (LOG) Belzon - Margaret Denton; (LOG) Belzon - Valerie Plante; (LOG) ELEIT - Billie Turmenne; (LOG) ELEIT - Shirley Hill; (LOG) LogiCore - Miranda Bouldin; (LOG) Metters - Greg Gaddy; (LOG) Metters - Lucy Hunt; (LOG) Metters - Lynette Capehart; (LOG) Metters - Patrick Vaughn; (LOG) MSSI - Bill Shirley; (PROG) 3D - Laura Schultz; (PROG) 3D - Maria Valladarez; (PROG) CAS - Chuck Collins; (PROG) DigiFlight - Lisa Wheeler; (PROG) IRTC - Christina Chambliss; (PROG) MicroTech - Aaron Drabkin; (PROG) Sigmatech - Rokichia Haywood; (PROG) TCSI - Wayne Beal; (TECH) AMS - Joey Strachan; (TECH) CSC - Cathy Skievaski; (TECH) DCS - Perry Gann; (TECH) IRTC - Harold Brewer; Cynethia McDonald; (TECH) Morgan - David Layne; (TECH) Quantum - Cynthia Pack; (TECH) Radiance - Denise Pelham; (TECH) S3 - Lorena Henderson; (TECH) SAIC - Ron Bryan; (TECH) Sigmatech - Debbie Gerrity; (TECH) Torch - Kenneth Lones; (TECH) Westar - Kim Waugh Subject: EXPRESS Size Determination The decision has been made to resume reliance on GSA schedule certification for determination of business size under EXPRESS. Certification at task order award will not be required on TORFQs issued subsequent to this letter. This does not change those TORFQs currently in process which require certification at TO award. Thank You, MARCIA N. TULLY Acting Chief EXPRESS & Strategic Services Division Phone:  (256) 876-9316 Fax:  (256) 842-0523 Email:  marcia.tully@us.army.mil What is the new objective?

14. Clear Trend Line Toward Large Business EXPRESS is on-track to move $150M/yr from SB to LB by 12/2010 EXPRESS Technical Domain to be re-competed 8/2009 to 12/2010 EXPRESS Technical Domain re-compete Status as of 14 MAY 2010 ========== Awarded to LBs =========== 2009T-012 (SB to LB) 2010T-005 (SB to LB) 2009T-013 (SB to LB) 2010T-009 (SB to LB) 2010T-001 (LB to LB) 2010T-010 (SB to LB) 2010T-002 (SB to LB) 2010T-012 (LB to LB) 2010T-003 (SB to LB) 2010T-013 (LB to LB) 2010T-004 (SB to LB) LB $219M/yr 9 SAIC TOs for $171M/yr 7 CSC TOs for $48M/yr LB - Awarded $259M/yr 2 SAIC TO for $162M/yr 6 AMS TOs for $47M/yr 1 CSC TO for $37M/yr 2 Westar TOs for $13M/yr ============== Pending ================ 2010T-007 (new F&O) 2010T-022 (new F&O) 2010T-008 (SB to F&O) 2010T-028 (LB to F&O) 2010T-015 (LB to F&O) 2010T-030 (LB to F&O) 2010T-019 (SB to F&O) 2010T-033 (LB to F&O) 2010T-006 (SB to SB*) *Dynetics is a LB SB $211M/yr 17 AMS TOs for $83M/yr 13 Westar TOs for $63M/yr 14 Morgan TOs for $52M/yr 4 CSC DA TOs for $9M/yr 2 Madison TOs for $6M/yr =========== Pending to SBs ============= 2010T-011 (SB to SB) 2010T-018 (SB to SB) 2010T-016 (SB to SB) 2010T-026 (SB to SB) F&O Pending $25M/yr =========== Awarded to SBs =========== 2011T-001 (SB to SB) 2010T-021 (SB to SB) Awarded $10M/yr 91% of re-competed work ($M/yr) has been via F&O SB – Pending $9M/yr SB – Awarded $5M/yr

15. SB vs LB Trend

16. % SB vs LB

17. Organizational Conflict of Interest (OCI)

18. The hunt is on for OCIs* • We have already seen significant tightening of OCI review and oversight at MDA and other agencies. • Elimination of “firewalls” as a routine mitigation technique. • To Date, Implementation of new policy has been more draconian on small businesses. • Locally, EXPRESS and SETAC have tight OCI language requirements – expect them to be enforced more rigorously going forward • * http://washingtontechnology.com/articles/2010/03/08/policy-organizational-conflicts-of-interest.aspx

19. Acquisition Reform Act • On May 22, 2009, President Obama signed the Weapons Systems Acquisition Reform Act of 2009 (WSARA), a statute that, in the President’s words, aims to “eliminate some of the waste inefficiency in our defense projects.”  • The Act passed unanimously in the House and Senate. 

20. Section 207 - • Directs the Secretary to revise the Defense Supplement to the Federal Acquisition Regulation to provide guidance and tighten existing requirements concerning organizational conflicts of interest by contractors in MDAPs. Requires the Panel on Contracting Integrity (established under the John Warner National Defense Authorization Act for Fiscal Year 2007) to present recommendations to the Secretary on measures to eliminate or mitigate organizational conflicts of interest in MDAPs. Directs the Panel to continue to serve until at least the end of 2011.

21. New Proposed Rule • http://edocket.access.gpo.gov/2010/2010-9210.htm • Federal Register: April 22, 2010 (Volume 75, Number 77)] [Proposed Rules] [Page 20954-20965] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr22ap10-19] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 202, 203, 212, and 252 RIN 0750-AG63 Defense Federal Acquisition Regulation Supplement; Organizational Conflicts of Interest in Major Defense Acquisition Programs (DFARS Case 2009-D015) AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule with request for comments. • DoD is proposing to amend the DFARS to implement section 207 of the Weapons System Acquisition Reform Act of 2009 (WSARA) (Pub. L. 111-23). Section 207 requires DoD to revise the DFARS to provide uniform guidance and tighten existing requirements for organizational conflicts of interest (OCIs) by contractors in major defense acquisition programs. The law sets out situations that must be addressed and allows DoD to establish such limited exceptions as are necessary to ensure that DoD has continued access to advice on systems architecture and systems engineering matters from highly qualified contractors, while ensuring that such advice comes from sources that are objective and unbiased….. • DoD is requesting Comments by June 21, 2010 on the new rule

22. Potential Loop hole for LB • The loop hole below would allow OCI conflicted Large Business primes to receive prime service contracts: • 203.1205-3 (c)(3) Requiring a subcontractor or team member that is conflict free to perform the conflicted portion of the work on the instant contract. This technique will not be effective unless it is utilized in conjunction with a firewall around the contractor or conflicted team member. This technique may be used to resolve any types of organizational conflict of interest.

23. Summary • HASBAT’s mission is to increase business opportunities for high technology small businesses in the Huntsville area. • To fulfill our mission, we must monitor and be vigilant about the government’s attainment of its socio-economic goals • Current analysis raises concern over AMCOM’s commitment to 2010 SB/socio-economic goals • AMCOM must address the growing disparity between awards to Large and Small Businesses

24. Huntsville Association of Small Businesses in Advanced Technology Notes from Meeting with NASA Small Business Office Meeting conducted on June 10, 2010

25. Notes from NASA (June 10th) • Small Business Alliance Meeting - SEP 23rd • Annual Acquisition Update - current state of Marshall by David Brock; 24 month projection of contracts coming up. • SB Set Asides - a number of them coming up for bid.  Huntsville Operations Support Center contract coming up for bid in the next year.  Incumbent is COLSA.  • Shuttle retirement will have major impact • Potentially cancelling project Constellation. What will survive, if anything? • Marshall will take a lead role in heavy launch vehicle, precursor robotics, and technology programs.  Approx $5B impact over next 5 years.  • Joint counseling program.  Brings in 60-70 companies per year to present their capabilities. 

26. Notes from NASA (June 10th) • Dec/Jan would be good time for David/NASA to brief HASBAT since Nov election cycle will have past and future picture will begin to come into focus. • Small Business Executive Leadership Team at NASA comprised of senior leaders from SBs that have current work with NASA.  Focused on direct and subcontracting opportunities. • NASA Small Business Marketing Guide - March 2010.  Editions published as needed.  • Glen Delgada, Asst. Administrator, NASA Office of Small Business Programs.  Request him to speak to HASBAT at least every 18-24 months. • Creation of new technology offices at each NASA Center.  Marshall Technology office will be headed up by Andrew Key.  Bring Andrew in with Glen and David to address needs of new technology office.  • Many challenges ahead. David is big on team and knows that by working together we can accomplish a lot more for NASA. 

27. Notes from NASA (June 10th) • Business Card Exchange?  Sponsor a late afternoon/early evening social to conduct business card exchange? • Conduct workshops on semi-annual basis to talk NASA activities, mentor-protege opportunities, SB opportunities.  • Marshall is hitting new highs in subcontracting and SB participation.  Some $200M in subcontracts to SB.  • Is there a market for your business's goods at Marshall and if so how can you enter into that market? • David is dedicated to his advocacy role at Marshall and getting to the senior leaders to create relationships that will foster SB opportunities.  • David Brock is a first-class advocate, salesman, and information broker! 

28. Huntsville Association of Small Businesses in Advanced Technology Our Path Ahead –The Next Six Months

29. Continue HASBAT’s Mission • Mission • To increase business opportunities for high technology small businesses in the Huntsville area. • Strategies • Promote increased small business participation in high technology contracts with local federal agencies • Promote increase small business subcontracting plan goals by prime contractors and encourage achievement of those plan goals • Provide a means for the exchange of capabilities information among member companies • Serve as a point of contact for promoting high technology small business opportunities, issues, legislation, regulations, and communications • Improve community awareness of capabilities of the Huntsville area high technology small business

30. And Grow, Grow, Grow! By combining the efforts of many small, high tech firms, the voice of small business will continue to be strong and will be heard!