Transcript Marketing to U.S. Federal & State Governments: Strategy

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: [email protected]
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
(FedBizOpps.gov)
– Replaced Commerce Business Daily in 2002
– Everything the government seeks to buy, products or
services, worth more than $25K 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
• BidNet.Com
– Works to connect government buyers with industry providers by
providing government buyers with various resources as well as the
traditional providers resources
• BidRadar.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/TechMedia’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
• 1st 6 Months—Evaluation of Self, Competition,
Opportunities, and Integrators
• 2nd 6 Months—Setting up an office, hiring local
representatives, and/or forming a U.S. based
company
• 2nd Year—Building the relationships and
competing for opportunities
• 3rd 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
1st 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
2nd 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
2nd 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
3rd 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:
[email protected]