Burdeshaw Associates, Ltd. Senior Executive Associates

for Military Systems and Business Planning

Strategic Business Support 30 May 2013

2

Discuss and provide examples of how successful large businesses use strategic business support, and how that same assistance could be of great value to smaller but more agile and innovative businesses.

The large players have tremendous resources and use them to employ both robust, organic BD and strategic planning capabilities and the specialized services of consulting and professional services firms to both enhance their understanding of the defense market space and to provide specific assistance in developing business and growing revenue.

Purpose

3

Agenda

• The Business Environment

• Behaving and Benefiting like the Large Guys

• Burdeshaw Associates, Ltd. (BAL) and Strategic Business Support

4

The path ahead for the Defense Industry remains bothuncertain and full of opportunity.

Serious challenges exist for Small Businesses seeking opportunities within the market space. DoD and the entire Government market have responded to the Budget Control Act, Sequestration, the debt ceiling issues, and the anticipation of sustained reductions in Federal appropriations with reduced budgets, restructured or cancelled programs, delays in contract awards and reductions in task orders.

Major Defense vendors have reduced orders from suppliers of components or services, and have aggressively pursued modest opportunities previously ignored and left to others. They have also pursued new lines of business in an effort to sustain themselves.

For small businesses however, there is opportunity. Set-asides, preferential programs for small businesses and a growing understanding on the part of large business of the value added of small business teammates provides an opening. There is an increasing willingness on the part of large business (given SB access and a chance to present their bona fides) to partner and team with small business for opportunity pursuits.

The Business Environment

5

Behaving and Benefiting like the Large Guys

The large companies like Lockheed Martin, Raytheon, Northrop Grumman, IBM, SAIC, Boeing and others retain the services of consultants and professional services firms to provide insights, access to senior decision makers, market intelligence, Customer engagement, proposal support and objective, independent review not possible by those wearing the company’s ID badge.

CypressINTERNATIONAL

C IInternational Technology & Trade Associates

Several outstanding consulting and professional services providers are available –Often at a price and with conditions not suited for smaller business

Several outstanding consulting and professional services providers are available –Often at a price and with conditions not suited for smaller business

“Retaining the right consultants is the price of doing business – and winning”

6

Who We Are

A senior consulting and professional services firm, staffed by former Senior Military Officers, Government Civilians, and Corporate Executives whose knowledge, experience and insights are used to assist Industry in matching products, technologies, services and capabilities with customers’ needs and requirements, and in assisting Government through analysis and advisory tasks.

• Strategic Forecasting and Assessment• Requirements Analysis• Operational Analysis• Market / Opportunity Assessment• Concept Development• Marketing Strategy• Proposal Support• Customer Engagement• Senior Advisory support or “Tiger Teams”

• Market Penetration• Program Management Training• Expert Witness• Management and Program Assessments• Due Diligence and Investment Assessment• Acquisitions/Mergers/Teaming Analysis• Customer Satisfaction Surveys• Strategic Communications• International Marketing Support

Core Competencies and Services

7

800+ Associates

OrganizationalOrganizationalExperienceExperience

Senior Senior 

ExecutivesExecutives

Market SurveysRequirements AnalysisCONOPSProposal SupportStrategic PlanningMarket StrategyCustomer Satisfaction SurveysSeminars/Leadership TrainingLegislative StrategiesSystem Analysis…

and others

Market SurveysRequirements AnalysisCONOPSProposal SupportStrategic PlanningMarket StrategyCustomer Satisfaction SurveysSeminars/Leadership TrainingLegislative StrategiesSystem Analysis…

and others

Dept. of DefenseArmy  • Navy  • Air ForceDept. of Homeland Security

U.S. Coast GuardDept. of StateDept. of EnergyDept. of Transportation

FAA

Defense IndustryNASA • NRO • CIA • NSA…

and others

Dept. of DefenseArmy  • Navy  • Air ForceDept. of Homeland Security

U.S. Coast GuardDept. of StateDept. of EnergyDept. of Transportation

FAA

Defense IndustryNASA • NRO • CIA • NSA…

and others

UAVsLand VehiclesC4ISRCommunicationsCybersecurity/ITHomeland SecurityEnergyEngineeringLogisticsHealth/MedicineMissile DefenseSpaceSensorsSpecial Ops…

and others

UAVsLand VehiclesC4ISRCommunicationsCybersecurity/ITHomeland SecurityEnergyEngineeringLogisticsHealth/MedicineMissile DefenseSpaceSensorsSpecial Ops…

and others

Areas ofAreas ofSpecializationSpecialization

FunctionalFunctionalExpertiseExpertise

Army Coast GuardMarinesNavy

Air Force Civilian International

Active AssociatesActive AssociatesActive Associates

8

What We Do

For Industry:

• Assess the strategic environment and its impact on future business opportunities

• Help understanding and leveraging Government Requirements and Capability Gaps

• Assistance engaging the DoD Customer

• Operational Analysis, Market Assessments, Concept Development and Proposal Support

• Assistance developing and describing its offering in an operational context

• Assistance in the development of a winning Value Proposition

For Government:

• Independent analysis and assessment, subject matter expertise, concept development and advisory support

• Assistance developing requirements and understanding Industry capabilities

Industry traditionally comprises 95% of our business; however, the 5% for Government is especially insightful in that it is usually performed for the senior leadership

Industry traditionally comprises 95% of our business; however, the 5% for Government is especially insightful in that it is usually performed for the senior leadership

9

Helping Industry Meet the Challenges

Competitive

Life Cycle Burdeshaw Associates Help Meet the Challenges by Supporting: Burdeshaw Associates Help Meet the Challenges by Supporting: 

Identify Opportunities

Identify Opportunities

Shaping the Environment Shaping the Environment

Preparing Proposals Preparing Proposals

Getting Program Started

Getting Program Started

Enhancing Execution

Enhancing Execution

Assessing Program

Expansion

Assessing Program

Expansion

Sustaining Program Support

Competition

ConceptDevelopment

CustomerSatisfaction

Surveys

TeamingArrangementand Mergers

MissionArea

Reviews

ONS/JUONSSupport

ComparativeAnalysis of

Best Approaches

ProposalSupport

ExecutiveSummary

SurrogateSSEB

AfterAction

Reviews

EarlyProduction Plan

Assessment

TeamBuilding

Assistance

AdvisoryBoard

Development

ProductionProblemSolving

FocusedPerformanceEnhancement

P3I andTechnology

Insertion Planning

AssessingNew

Technologies

InternationalSales

Support

FacilitiesManagement

Support

Forecasting Defense & Industry

Trends

MarketAnalysis/

Opportunities

CapabilityDevelopmentDocuments

StoryboardReview

(Gold Team)

CooperativeSupport

(Pink Team)

EvaluativeCritique

(Red Team)

Assessmentof

Competition

Keep Programs

SoldIndependent

Reviews

AssessingCommercial and

International Markets

Post WarReset

Support

CustomerSatisfaction

Surveys

New Strategic Guidance  • Budget Shrinkage  •

Program Instability

Messaging/Branding

LegislativeStrategies

Customer Engagement

10

Who Burdeshaw Has Supported

While typical Burdeshaw clients have been the larger defense firms…we also support Government, Universities, and smaller commercial entities

While typical Burdeshaw clients have been the larger defense firms…we also support Government, Universities, and smaller commercial entities

Carter & Burgess Engineering

11

BAL Major Program Support

Not your direct market, but you can and do provide components and services to the OEMsNot your direct market, but you can and do provide components and services to the OEMs

12

Typical Industry Projects

• EXCALIBUR; JAVELIN; JAGM

• Radars: EQ-36, Q-53, TPS-79 and GBSAA

• Next Generation Jammer

• Persistent Threat Detection System

• Network-Centric Architectures; ISR Framework

• Wireless Intercom

• Protected Communications on the Move

• Major Army ERPs

• Dominant Squads/ Decisive Soldiers

• UAV data links

• GFEBS

• Army Network Systems Engineer

• Photonics

• In-transit Visibility

• Litigation Expert Witness

• M&A Operational Due Diligence/branding

• The Hajj

• Regional BRAC Strategy

• IT Supply Chain Solutions• Aerial Common Sensor• Presidential Helicopter; Armed Aerial Scout• High Attitude Airship• Land Warrior/Ground Soldier System/Nett Warrior

• Energy distribution systems

• Armed Robotics

• Cyber requirements• Space & Terrestrial Technology Development IDIQ• Logistics Information Warehouse • DoD Medical Market penetration• U.S. Space Program• Combat Training Center Instrumentation• Home Station Training Initiative• Simulations• Stryker, GCV, AMPV, JLTV• Wounded Warrior Initiative• Laser Marksmanship Training System

• Government Wide Acquisition Contracts (GWAC)• Multiple Award Task Order Contracts (MATOC)

13

Work Performed for the DoD Senior leadership

Work performed for Service, DoD and Agency Senior Leadership provides unique insights, understanding and Information useful to our Clients

Work performed for Service, DoD and Agency Senior Leadership provides unique insights, understanding and Information useful to our Clients

• CONOPS and O&O for Asymmetric Warfare Group

• Strategic “think pieces” for Chief of Staff of the Army

• Papers on Requirements Generation and Analytical Simulations for Army Vice Chief

• Assessment of plans, processes, programs and organization for Army G-3/5/7 (Operations and Plans)

• Assistance to Army Materiel Command with planning, strategy and implementation of the Army Materiel Command (AMC) Enterprise Analysis Center

• Support to PEO CCS on non-lethal systems and Intelligent Munitions System

• Support to the Army’s Enterprise Task Force on PPBES

• Facilitation of quarterly review of Strategic Issues with Army G-3/5/7 (Operations and Plans)

• Support JIEDDO with Advisory Group and a team developing a Joint Training Architecture

• Future Bomber study for Chief of Staff of the Air Force

• Airbase Security assessment for Air Force A-3 (Operations and Plans)

• Assessment of the Air Force Chief Information Officer (CIO) organization

• Development of Navy Strategy Tabletop Exercise for Navy N-3/5 (Operations and Plans)

14

Special Offerings

Strategic Assessment - Defense and Industry TrendsStrategic assessment of the trends impacting the defense market space, with specific examination of Service programs, and of the anticipated defense business environment, tailored to the client

Small Business InitiativeServices and products designed to provide affordable support to small businesses

Advisory Councils, Senior Action Groups, “Tiger Teams” and SMEsFull-service advisory boards and/or senior subject matter experts tailored to the specific needs of the client

Optimization of Trade Shows and ConventionsSeminar on analyzing and planning participation in trade shows and conventions so as to maximize return on investment. Practicum based on client’s strategic plan and desired outcomes. Burdeshaw support in executing Contact Plan and Customer engagement during the events

The Leader-Manager CourseFive-day course developed in association with University of Virginia Business Professors to prepare new Industry Program Managers to run defense programs.

15

Strategic Assessment - Defense and Industry Trends

Research, prepare and present an assessment of strategic factors impacting the defense market space with a focus on the priorities, programs and budgets of the respective military services. Presented to a select group of GBNA member businesses with insights, discussion and Q&A.

• Overview of DoD, with focus on Service, SOCOM and Agency customers

• Covers the general but tailored to the Small Business needs

• Presented by BAL Senior VP, augmented by Senior Associates with industry experience and insight

• Questions and Answers welcome

• 3-4 hours

• BAL will offer two iterations to match business cycles if desired

Understanding is Power in an Uncertain Defense Market and is the door to OpportunityUnderstanding is Power in an Uncertain Defense Market and is the door to Opportunity

16

17

18

19

20

21

22

• Background– Previous BAL VP Special Programs– Moved to industry– BD & P&L (Director & AVP)– Independent Consultant, BAL Associate

• Small Business “Acceptability” increased– Worth the effort– Government programs and set-asides tailored to SBs– Goals and mandates– SBs can bring advantages to the table– Realization that something is better than nothing– SBs can bring strength to the team - quality of offering, PP– Often have special (albeit niche) talents, advantages, deliverables– LBs can miss opportunities without help

Observations – A Large Business Experience

23

• VSE Corporation– Extraordinary SB program (300/75)– 1/3 of total revenue– Routinely sub to smalls– Built a cadre of valued SB partners– And once we established a trusted partner, we stay with them

• What SBs don’t usually do so well:– Limited personnel, few specialists– Capture (small B&P)– Full up proposal development– Price accurately

• What they do best, better:– Agility, decision cycle– Knowledge of, closest to the customer, familiarity with market– Insights into contract performance– Closest to the market, customer in many cases– Anticipate customer requirements, perhaps shape them

Observations – A Large Business Experience

24

• Where SBs often get it wrong–Fail to understand their strengths…and weaknesses–Recognize and succinctly describe their assets–Leverage their attributes (small, SDVOSB, minority, woman, etc.)–Unrealistic expectations of LB partners–Assuming a LB has any motivation other than contract wins, profit –Adapt to the market, customer requirements–Fail to talk to each other, network, team–Build relations with large businesses–Get some (any) past performance with the customer/contract office–Failure to listen actively

• Where SBs can get out ahead in this market–Develop/refine a niche offering that a LB doesn't have…but wants access to–Be the expert on the “customer”–Gain access and market to LBs that have the assets to push through

Observations – A Large Business Experience

25

SB Opportunity Facilitation (LB Linkage)

• GBNA conducts a pre-vetting of candidate SBs. Coordinates, facilitates initial meeting with BAL• Initial BAL/SB Meeting -

–

Filter for viable businesses, Identify SBs that can capitalize on BAL assistance (some competencies, deliverables are not a match to identifiable LBs)

–

Identify SB Attributes to include any Past Performance, Skills, deliverables that match with LBs, Special Status or advantage (HubZone, SDVOSB, etc.), presence on an IDIQ or other vehicle

–

If agreeable to both parties the high potential SB signs agreement with BAL. Contractual (compensated) relationship starts

• Follow On Meeting(s). BAL vets, reviews SB pipeline, identifies specific opportunities to be worked, identifies a general match to known Large Business(es). For any “special opportunities” not linked to LBs, BAL will attempt to identify new, previously not identified LBs

• BAL Actions. Once linked, NDA and agreement in place, BAL will execute direct coordination with candidate LB partner(s), provide Information/White Paper to LB, assist the SB in preparing SB Opportunity briefing for LB, coordinate office call & briefings to LB, assist SB with coordinating NDA .

• Conduct Briefing to LB. In concert with the SB, conduct a team presentation to the LB, conduct Post-mortem of the meeting, provide follow on advice to SB

• SB Accepted by Large Business for Opportunity Pursuit• BAL can participate as a member (compensated) of the SB capture, proposal work, color teams• Contract Win• Revenue Distribution

SBs have real value to offer LB partners, but they have to “hear” youSBs have real value to offer LB partners, but they have to “hear” you

Assist individual members who have high-value deliverables, past performance and specific market opportunities in linking with large business partners for government

contract pursuit and other related opportunities.

26

Contacts

Larry R. JordanLTG, USA (Ret.)Senior Vice PresidentArmy SectorBurdeshaw Associates, Ltd.(301) 229-5800ljordan@burdeshaw.com

Mark L. StapletonCOL, USA (Ret.)Senior AssociateBurdeshaw Associates, Ltd.(703) 498-1027(c)mstapleton@cyberwind.net

Craig B. HanfordCOL, USA (Ret.)Senior AssociateBurdeshaw Associates, Ltd.703-395-6160 (c)ConsultHanford@gmail.com