Engineer • Consult • Capture

mcnultyassociatesinc.com

McNulty & Associates Capabilities

Michael E. McNulty2015

McNulty and Associates, Inc. Proprietary

McNulty & Associates Overview Offerings

– Price to Win Analysis• LOE, Services, & Solutions

– Competitive Assessment, Intelligence, & Strategy

– Black Hat Support– Wrap Rate Products– Wrap & Labor Trend Analysis

Customers– 9 of the Top 10 Federal IT

Contractors– Many mid-sized DoD

Contractors

17 Staff Members & Growing– Solutions Engineers &

Architects – Parametric Modelers & PTW

Analysts– CA/CI Experts– Wrap & Labor Rate Analysts

Independent Observations & Analysis Focused On Helping You Win!

Page 2

McNulty and Associates, Inc. Proprietary

Our Senior Team

Founder and Lead Analyst for McNulty & Associates, Inc. and Pwin Solutions, LLC.

Michael has 25+years of experience as a Business Development Executive, Capture Manager, Program Manager, Proposal Manager and Engineer specializing in Modeling & Simulation. Instrumental in providing Price to Win, Pricing Analysis, and Competitive Assessments on many successful procurements across all Military Services and US Federal Agencies. Holds BS in EE, & MS in Engr’gManagement.

Michael E. McNulty Gustavo Burnum Darren Kreitler William Hacker Deanna Greene Kim Bramlett

Lead CI / CA Analyst Over 32 years of

Business Development, Capture Management, and Program Operations. Experienced in Competitive Intelligence, Competitive Assessments, Price to Win. Education: BS The Citadel, BBA University of Georgia, MBA University of Phoenix.

Senior Analyst Darren has more than

25 years of financial analysis and cost estimating experience in the Defense, Telecom, and Insurance industries. Mr. Kreitler holds a BS in Finance from Missouri State University and an MBA from Rivier University.

Senior Analyst & Chief Engineer

Bill has 30 years of technical and program management experience in broad areas as weapons effects analysis, software development, system engineering, network communications, and activity-based costing. He is a member of the Project Management Institute (PMI), and International Cost Estimating, Analysis Association (ICEAA), and IEEE. He holds BS and MS degrees in Mechanical Engineering.

Lead WRAP Rate Analyst

B.S. Business Administration, Chemistry & Biology Minors Previous experience includes Operations and Accounting Manager at an Aerospace Consulting Firm.

Lead Labor Analyst Analysis of Labor

Categories, Rates, LOE PTW. Bachelors Degree in Quantitative Analysis, MS in Management.

McNulty and Associates has a Team of 17 Consultants

McNulty and Associates, Inc. Proprietary

CA/PTW Programs by Agency 2012-2015 (160 Engagements)

Page 4

Results: Our customers have won on average ~$100M per month over this timeframe.

McNulty and Associates, Inc. Proprietary

McNulty & Associates Products & Services

Competitive Intelligence & Assessment; with Optional Services:– Bid Strategy Development– Black Hat Support– Customer Win / Loss Assessment– Competitor Wrap Rate Comparison(s)

Wrap Rates at Corporate or Operating Unit Levels PTW Workbook & Analysis (in PowerPoint) …Fully Operable Products… Showing all Work & Assumptions

PDF FilesStrong Success

With 3 Tiers ofPTW Efforts

McNulty and Associates, Inc. Proprietary

Tactical C2 Systems

Operations Centers

Strategic and Intelligence Systems

Test and Training Ranges

Proven Process

Cloud Computing & Data Center Migration

Proven Process & Domain Expertise

Independent, Engineering Based, Parametric Modeling, PTW and CI/CA

McNulty and Associates, Inc. Proprietary

PTW

Top Down Analysis

After Award Review

CompetitorBottoms Up

Analysis

Competitive Intelligence

and Assessment

CA & PTW Process Overview

Proven, Repeatable Process

Engineering & Estimation Acumen Assure RFP Requirements are Met with Low-side Compliant Approach

Accurate Results Time and Again

Competitor & Customer Assessment withMock Evaluation

Bounding Estimates for Customer Should Cost

Includes Competitor Past Bid/Win Trend Analysis

Customer Funding Analysis

Independent, Engineering Based, Parametric Modeling, Estimating and Pricing

McNulty and Associates, Inc. Proprietary

Opportunity-Specific CA / CI CA Research from Publicly

Available Sources Investigation & Conclusions

Tailored to the Specific RFP Requirements

Scoring of Each Competitor Against the Section M Evaluation Criteria

Evaluation of “Pricing Advantage” through Wrap Rate Comparisons

All Focused on Who We Think Will Win and Why

Helps Define Your Bid Strategy

EvalCriteria

Total Pts

Comp A Pts Comp B Pts Comp C Pts Comp D Pts

Tech 14 Blue 14 Blue 14 Blue 14 Blue 14

Mgt 13 Blue 13 Green 10 Green 10 Blue 13

Staffing 12 Green 9 Green 9Green

9 Green 9

Transition 11 Green 8 Blue 11 Green 8 Green 8

Corp Exp./ Past Perf

10 Acceptable

10 Acceptable

10 Acceptable

10 Acceptable

10

Price / Cost

40 Low 40 High 0 Med 22 High 6

Risk LowMidHigh

Moderate (must recruit & transition

Low (in place now)

Moderate (must recruit & overcome prev. removal)

Moderate (mustrecruit & transition)

Total Pts 100 94 54 73 60

McNulty and Associates, Inc. Proprietary

Customer / Competitor Black Hat Facilitation

Black Hat is a tool used to Ghost/Validate what the Customers are saying their Wants/Needs and how the Competitors will satisfy the Wants/Needs– Customer: Organization, SSEB, Hot Buttons, Current/Past Issues,

Requirements, Wants vs Shalls/Needs, Identification of key decision makers and influencers, Lessons learned, Program deliverables, requirements, schedule, buying trend, and risks

– Competitor: Organization, Business Case, Bid Tendencies, Past Performance, Technical Approach, Marketing Approach, Teaming Approach, Management Approach, Customer Intimacy, and Pricing Strategy

Keys to a successful Black Hat are:– Strong Facilitator– Customer/Competitor Subject Matter Experts (SME)– Prep Work

Black Hats can be hosted one-on-one or in groups– Groups are preferred since it stimulates cross discussion

McNulty and Associates, Inc. Proprietary

Top Down Analysis Customer Funding & Top Down PTW Target

Leverages Customer & Industry Re-compete Observations– Even incumbents are taking 25%-35% reductions

to keep the work– Customer / Industry Award Trends may be

included on separate tab– Based off of past bidding/Award Trends (6 – 12

month look back) Top Down Therefore Presents and Compares

– Historical Funding & Govt Should Cost– Top Down PTW Target

Contract Year Orig Ceiling Amts Funded Amts Top Down TargetBase Yr 46,095,137.48$ 27,777,880.00$ Option Yr 1 48,249,348.10$ 55,726,760.00$ Option Yr 2 47,877,742.20$ 68,793,330.00$ Option Yr 3 46,971,814.50$ 74,070,540.00$ Option Yr 4 48,083,713.90$ 67,359,610.00$ New Base 51,000,000.00$ Option 1 51,510,000.00$ Option 2 52,025,100.00$ Option 3 52,545,351.00$ Option 4 53,070,804.51$

Totals 237,277,756.18$ 293,728,120.00$ 260,151,255.51$

Historical $: Mods & PoP

McNulty and Associates, Inc. Proprietary

Labor Categories M&A Labor Categories

Administrator – Associate Administrative Assistant I

Administrator – Intermediate Administrative Assistant III

Administrator – Senior Administrative Assistant IV

Applications Systems Analyst – Associate Applications Systems Specialist I

Applications systems Analyst – Intermediate Applications Systems Specialist III

Applications Systems Analyst – Senior Applications Engineer V

Business Systems Analyst - Associate Business Systems Analyst I

PTW Workbook Overview & Key Artifacts Reference Architecture & Bill of Materials Labor Tabs

– Category Descriptions, DL & Loaded Rates

Program Plan & SEER Tabs CLIN Pricing Tab(s) Top Down Tab(s) Comparison Tab

– Top Down & Bottoms Up Comparison across Competitors

After Award Review Tab Case Notes / Revision History All Artifacts Build Up to Final Product: => M&A PTW Recommendation

– Based on detailed Bottoms Up, influenced by CA insights & Top Down

McNulty and Associates, Inc. Proprietary

Outputs – Bottoms Up Analysis Pricing in CLIN Formats

– For direct comparison with your pricing

Usually Includes Fee % Input for Top Level Gaming

Cost Drivers

Competitor Comparisons

Clin Item # BASE PERFORMANCE PERIOD

CLINType Unit

Indicator for Not To

Exceed (NTE)

ThresholdsCLIN TOTAL

(Not Fillable)

Target Cost (from CLINs Rollup Tab)

Target Profit (Bidders Fill Out)

Target Price (Target Cost + Target Profit)

Ceiling Percentage (Not Fillable)

Ceiling Price (Target Cost *

Ceiling Percentage)

FFP CLIN Price (from CLINs Rollup Tab)

0001 Phase-In FPIF U.S. Dollar $2,654,092.82 ########## ########### 120.00% $2,654,092.820002 Contract Data Requirements List (CDRLs) FFP U.S. Dollar $29,163.62 $29,163.620003 Contract Manpower Reporting (CMR) FFP U.S. Dollar $29,163.62 $29,163.62NA NA NA NA0004 Enterprise (ES) Base Core Services FPIF U.S. Dollar $0.00 $0.00 $0.00 120.00% $0.000005 ES Additional Core Services CPFF U.S. Dollar NTE $6,000,000.000006 ES Deployment Core Services T&M U.S. Dollar NTE $1,000,000.000007 ES Base Supported Sites Services FPIF U.S. Dollar $0.00 $0.00 $0.00 120.00% $0.000008 ES Additional Supported Sites Services CPFF U.S. Dollar NTE $6,000,000.000009 ES Deployment Supported Sites Services T&M U.S. Dollar NTE $2,000,000.000010 Transport (TX) Base Core Services FPIF U.S. Dollar $3,728,064.36 ########## $621,344.06 ########### 120.00% $3,728,064.360011 TX Additional Core Services CPFF U.S. Dollar NTE $3,000,000.000012 TX Deployment Core Services T&M U.S. Dollar NTE $1,000,000.000013 TX Base Supported Sites Services FPIF U.S. Dollar $2,234,812.15 ########## $372,468.69 ########### 120.00% $2,234,812.150014 TX Additional Supported Sites Services CPFF U.S. Dollar NTE $3,000,000.000015 TX Deployment Supported Sites Services T&M U.S. Dollar NTE $2,000,000.00

Indicator for Not To

McNulty and Associates, Inc. Proprietary

Company DACIS ABC-123Operating Unit Services - Civil . CAGE 7Z342Location: 1234 West Road DUNS 12345678

Hometown, VA 23456Industry Sector Information TechnologyFiscal Year They are based on the latest 10-Q public fi l ing with analysis of the latest earnings call on public record dated 10/25/13.

Fringe Field/Site (% ) Plant (% ) Field/Site (% ) Plant (% ) Field/Site (% ) Plant (% ) Field/Site (% ) Plant (% )Holidays/Vacation/Sick 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0%Personal Absence/Other PTO 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4%Employer FICA 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9%Workers' Compensation 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%Health Insurance 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6%Life Insurance 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4%Pension Plan/Retirement 3.6% 3.6% 3.4% 3.4% 3.3% 3.3% 3.2% 3.2%AD&D 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%Salary Continuation 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Short/Long Term Disability 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%Miscellaneous 0.0% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total Fringe 36.8% 37.6% 36.6% 36.6% 36.6% 36.6% 36.5% 36.5%

Overhead Salaries and Wages 2.1% 4.8% 2.1% 4.5% 2.0% 4.4% 2.0% 4.3%Depreciation/Amortization 3.4% 5.2% 3.4% 5.2% 3.4% 5.2% 3.4% 5.2%Occupancy Allocation 5.1% 18.3% 5.1% 17.4% 5.0% 16.9% 4.8% 16.5%Miscellaneous 0.9% 1.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total Overhead 11.5% 29.6% 10.6% 27.1% 10.4% 26.5% 10.2% 25.9%

G&A Salaries and Wages 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4%IR&D (Costs - All) 2.4% 2.4% 2.3% 2.3% 2.3% 2.3% 2.2% 2.2%B&P (Costs- All) 0.9% 5.5% 0.8% 5.2% 0.8% 5.1% 0.8% 5.0%Employee Stock/Options 1.3% 1.8% 1.3% 1.8% 1.3% 1.8% 1.3% 1.8%Miscellaneous 0.0% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total G&A 7.0% 12.9% 6.8% 11.7% 6.7% 11.5% 6.6% 11.3%

WRAP Rate 1.63 2.01 1.61 1.94 1.61 1.93 1.60 1.91

2.40%MPS Rate

Current Material Handling Estimate

Cost Elements

Organization Information:

Increasing Level of Importance and Potential $ Contribution

Copyright © 2014 by McNulty and Associates, Inc.

Business As Usual ** Operating Unit(Adding < 10%) **

Sector(Adding 10-25%) **

Corporate Level Strategic(Adding > 25%) **

WRAP Rate Products Provides All Important

Elements in Buildup of– Fringe– Overhead– G&A– At Govt & Contractor

Sites

Addressed to Business Unit Level

Spans Spectrum from– Business as Usual, to– Strategic Importance

Includes Material Handling M&A Proprietary Process &

Analytics

13Independent, highly accurate WRAP Rate Calculations – Public Sources Only

Engineer • Consult • Capture

mcnultyassociatesinc.com

McNulty and Associates, Inc.292 Main Street, Suite 2

Groton, MA 01450Office: 978-272-1131

Michael E. McNultyKim Bramlett

mmcnulty@mcnultyassociatesinc.com

Contact Information