Marketing to U S Federal State Governments

Marketing to U. S. Federal & State Governments: Strategy for Korean Companies Day Two Presented by Mr. Adam Price Partner, Potomac Advisors Arlington, Virginia E-mail: adam@potomacadvisors. com Potomac Advisors U. S. Governments Market Training Course

Today’s Overview • • Small Business as Prime and Teaming Creating an American small business Foreign Comparative Testing Program Contracting and Subcontracting Resources • Getting Started Potomac Advisors U. S. Governments Market Training Course 2

Small Business as Prime and Teaming • Small Business Role in the U. S. • Contracts for Small Business as prime contractor – Large businesses as subs • Teaming is a dance – Determining the appropriate prime or subs according to technological offerings and market position – Chose the team most likely to win Potomac Advisors U. S. Governments Market Training Course 3

Creating an American Small Business (Part One) • Creating a separate entity that is majority owned by U. S. citizens and within Small Business Administration (SBA) guidelines • Company would resell Korean product for U. S. consumption • Profits to U. S. company can be minimized to keep cost of products low and maximize profits to Korean company supplier • Why do this? Potomac Advisors U. S. Governments Market Training Course 4

Creating an American Small Business (Part Two) • Company can utilize the resources provided by the U. S. SBA – Technical (training and counseling) – Financial (counseling and loans) – Contracting – Disaster recovery – Advocacy, Laws, and Regulations Potomac Advisors U. S. Governments Market Training Course 5

Creating an American Small Business (Part Three) • If certified as a “protected class of business, ” the company can qualify for certain types of small business set asides—contracts designated for only certain types of small businesses – Small Business, Small Disadvantaged Business, Woman Owned Business, Historically Underutilized Business Zone (HUB Zone), Veteran and Service Disabled Veteran Owned Business – 8(a) • 9 year program for helping businesses grow but requires that companies move beyond the program Potomac Advisors U. S. Governments Market Training Course 6

Creating an American Small Business (Part Four) • SBU offices facilitate outreach activities and provide counsel on the procurement process, including: – Procurement networking sessions – Marketing strategies and techniques workshops – Electronic commerce/electronic data interchange training sessions – Interagency networking breakfasts – Trade missions to foreign countries – Roundtables – Procurement conferences Potomac Advisors U. S. Governments Market Training Course 7

Benefits of Being in the U. S. • Selling to Federal, State, and locals governments • Selling to U. S. companies • Selling to foreign companies with offices in U. S. – U. S. is an international marketplace Potomac Advisors U. S. Governments Market Training Course 8

Foreign Comparative Testing Program (Part One) • Foreign Comparative Testing (FCT) Program was established by the DOD to ensure that U. S. warfighters benefit from the best technologies • Products are not just weapons and armor but any equipment used by the military including such items as cargo lifts for loading/unloading planes Potomac Advisors U. S. Governments Market Training Course 9

Foreign Comparative Testing Program (Part Two) • Testing requires that there be a standard (accepted base for evaluation) and ongoing process for testing and measurement • Includes comparative tests between products as well as qualification tests of unique product offerings Potomac Advisors U. S. Governments Market Training Course 10

Foreign Comparative Testing Program (Part Three) • Sponsor service (Army, Navy, Marines, Air Force, or Special Forces Command) plans, proposes, and conducts testing and files test findings for review by the Office of the Secretary of Defense • To work through this process contractor needs a U. S. military champion to move through each stage of process Potomac Advisors U. S. Governments Market Training Course 11

Foreign Comparative Testing Program (Part Four) • Winning strategy includes – – – – User advocacy Satisfying formal requirements Sponsor procurement dollars identified Market survey of U. S. and foreign sources Item is already in production Item in use by a foreign company Identifiable performance and cost advantage over existing U. S. product performance – An executable acquisition/contract strategy Potomac Advisors U. S. Governments Market Training Course 12

Contracting and Subcontracting Resources • • • SBC, KBDC, and KOTRA Government provided resources Industry on-line resources Consultants Conferences Potomac Advisors U. S. Governments Market Training Course 13

Government Provided Resources (Part One) • • SBA focused on small businesses GSA focused on schedules Small business offices of each agency Federal Business Opportunities (Fed. Biz. Opps. gov) – Replaced Commerce Business Daily in 2002 – Everything the government seeks to buy, products or services, worth more than $25 K is posted on this clearinghouse web site Potomac Advisors U. S. Governments Market Training Course 14

Government Provided Resources (Part Two) • Procurement Technical Assistance Program (PTAP) – National network of more than 90 Procurement Technical Assistance Centers (PTAC) in almost every state – Each center provides answers about how to begin and succeed at marketing products and services to the Federal, state and local governments – Mentor Protégé Program Directors • Government websites of Departments/Agencies – Significant information on-line Potomac Advisors U. S. Governments Market Training Course 15

Industry On-line Resources (Part One) • Input. Com – Leading database and analytical research provider – Federal and state marketplace information – Driven by searchers choices • E-Pipeline. Com and Eagle Eye Publishing – Similar to Input providing information and analysis • Bid. Net. Com – Works to connect government buyers with industry providers by providing government buyers with various resources as well as the traditional providers resources • Bid. Radar. Com – Provides automated updates on bids that match providers criteria and allows screening of opportunities • Lufex. Com – Korean American company provides similar services Potomac Advisors U. S. Governments Market Training Course 16

Industry On-line Resources (Part Two) • Large, comprehensive on-line resources can provide incredible access to vast amounts of information • Small companies will not need all information available • Costs vary greatly but can be very high – Each service is willing to explain the benefits – Buy only as much as is needed Potomac Advisors U. S. Governments Market Training Course 17

Consultants (Part One) • Consultants cover entire spectrum of business development activities • Strategic analysis of market, communication plans, investment decisions, and partnering • Tactical introductions to companies or agencies, preparation of proposals, and support for negotiations • Consultants may be specialists or generalists • May be independent, small firms, and very large firms • Relationship must be built on customer’s best interest and trust between client and consultant – Relationship works best when both client and consultant understand each other's strengths and limitations Potomac Advisors U. S. Governments Market Training Course 18

Consultants (Part Two) • Should be used to fill the gaps and leverage company resources – Gaps for a foreign company without a local office can be large – Can provide steady input through an engagement that is reasonable in scope and price • Do not work miracles but can help with otherwise challenging obstacles Potomac Advisors U. S. Governments Market Training Course 19

Conferences (Part One) • Specialized government procurement conferences or industry days – Scheduled and lead by the contracting office for a specific procurement – Required activity for any interested small company – Great source for teaming ideas although possibly too late in the procurement activities of leading companies • Thematic government sponsored conferences on topics such as surrounding new technology or initiatives such environmental stewardship, waste prevention, and recycling – Very helpful for understanding agencies priorities and thought leaders – Very helpful for proactive teaming with leading companies – Very helpful for seeing the competition Potomac Advisors U. S. Governments Market Training Course 20

Conferences (Part Two) • Publications’ conferences provide regular access to a broad spectrum of government issues • Government Executive’s Excellence in Government biannual conferences – one in Washington, D. C. and one in western U. S. each year • Post/Newsweek/Tech. Media’s FOSE (Government IT procurement) • National associations annual conferences – Provide very specialized access to the thought leaders in a field and the government representatives who may be driving specific technological solutions behind procurements • Conferences offer vendors exhibition space Potomac Advisors U. S. Governments Market Training Course 21

Getting Started • 1 st 6 Months—Evaluation of Self, Competition, Opportunities, and Integrators • 2 nd 6 Months—Setting up an office, hiring local representatives, and/or forming a U. S. based company • 2 nd Year—Building the relationships and competing for opportunities • 3 rd Year and Beyond—steady growth by capitalizing on opportunities; adjust manufacturing planning to evolve with market Potomac Advisors U. S. Governments Market Training Course 22

1 st 6 Months • Evaluation of Self, Competition, Opportunities, and Integrators – Evaluation by one’s own company – Third Party Evaluation • A professional independent consultant or another trusted company in a related field • Provides a more accurate view of your company’s strengths and weaknesses relative to the competition – Be critical of your challenges and creative about your opportunities • Integrate Government market analysis and strategy into Commercial market analysis and strategy Potomac Advisors U. S. Governments Market Training Course 23

2 nd 6 Months • Setting up an office – Have a small core group that can leverage support from Korea • Hiring local representatives – Similar to setting up an office, must have a small group to provide steady support and leverage with additional support as needed • Forming a U. S. based company – Will require local legal and accounting support Potomac Advisors U. S. Governments Market Training Course 24

2 nd Year • Building the relationships and competing for opportunities – Set measurable goals for contacts, results – Determine target opportunities, companies – Prepare compelling presentations on your product – Make contacts and build relationships – Judge relationships by concrete deals, productivity, and future opportunity Potomac Advisors U. S. Governments Market Training Course 25

3 rd Year and Beyond • Steady but reasonable growth by capitalizing on opportunities – Must stay active in understanding the market as U. S. administrations, priorities, and funding continue to change • Adjust manufacturing planning to evolve with market – Must coordinate technical specifications to meet market requirements – Changes may help define future direction of larger market Potomac Advisors U. S. Governments Market Training Course 26

Mr. Adam Price Partner, Potomac Advisors Arlington, Virginia E-mail: adam@potomacadvisors. com Potomac Advisors U. S. Governments Market Training Course