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| July 27, 2004 |
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| Audio Conference Provides Insight Into Contracting With The Department of Homeland Security |
In an audio conference attended by 35 people from around the country, the Institute of Management and Administration (IOMA) hosted a discussion on contracting with the Department of Homeland Security (DHS).
Sponsored by CD Publications, the 1½-hour conference featured two speakers who have extensive experience working with contracting issues in the government and private sectors and a speaker who is intimately involved with DHS procurement issues. William S. Loiry, President of Equity International, and Darryl Moody, Senior Vice President for Homeland Security at BearingPoint, Inc., joined with Mui Erkun, Chief of Staff of DHS’s Office of the Chief Procurement Officer in explaining processes and giving advice about how to crack the contracting/procurement procedure and tap into the enormous amount of money scheduled to be spent by DHS in the coming fiscal years.
The Department of Homeland Security is funded at $37.744 billion for FY2004. The organizations with the three largest budgets are the Directorate of Border and Transportation Security ($17.4 billion), the Directorate of Emergency Preparedness and Response ($9.8 billion), and the Coast Guard ($6.8 billion). More than $27 billion is concentrated in Border and Transportation Security and Emergency Preparedness and Response. These two directorates employ the most people and have the greatest need for small equipment and supplies, according to Mr Loiry.
Other significant agency allocations include: Customs and Border Protection at $4.9 billion, Transportation Security Administration at $4.6 billion, Office for Domestic Preparedness at $4.0 billion, and Immigration and Customs Enforcement at $3.5 billion.
Mr. Loiry identified the following 12 areas as the biggest marketing opportunities in the homeland defense/security arena:
1. Aviation Security
2. Data Analysis Techniques
3. Anti-Missile Technology
4. Ground Transportation Security
5. Border Security
6. Physical Infrastructure Protection
7. Fiber Systems Security
8. Emergency Preparedness and Response Technology and Support
9. Bioterrorism Detection and Protection
10. Nuclear/Radiation Detection, Prevention, and Response
11. Intelligence Technology
12. Counterterrorism and Law Enforcement Support
The following 4 steps were identified by Mr. Loiry as critical when developing a marketing strategy to maximize advantage in pursuing the above opportunities:
1. Developing sources of timely and accurate information
2. Developing and maintaining contacts with industry leaders through attendance at
seminars, conferences, expoes, and briefings
3. Acquiring accurate market research
4. Putting into place strategic relationships with other companies both as a
subcontractor and as part of a bidding consortium
Mr. Moody talked about how working within the homeland security industry has “become a team sport.”
“Since 9-11 there has been a convergence of three communities – law enforcement, emergency preparedness and response, and intelligence -- that did not have much overlap in their activities prior to 9-11,” Mr. Moody said. “This is all new to everyone. Before, everyone had a narrow mission and not much reason to work together. Now we realize that no one has the single answer, and we all have to work together.”
Mr. Moody explained that it is necessary – especially for small, emerging companies in this industry – to find out what is being bought and by whom and to fully understand DHS requirements. The best way to accomplish this, he said, is to align with an existing vendor that can help you through the pitfalls of the bidding/procurement process.
”This takes a team approach,” said Mr. Moody. “You need to be willing to work with and understand the point of view and different business models of your potential partners. You need to realize that DHS systems solutions are huge and demanding of large commitments of staff, resources, and skill sets.”
Program management, performance management, and accountability are cornerstones of the new way of doing business with DHS, according to Mr. Moody.
“You need to have a definite set of expectations that are expressed in your contract and are then enforced,” he emphasized. “The project’s schedule is key, and you must be very sensitive to this. DHS will be judged by your performance, and the work you do has life and death implications.
“This work is not for the faint-of-heart, but it is very rewarding. It is part of the security of our country and all its population.”
Mr. Erkun provided the DHS view on procurement. He offered a one-stop site for getting the most up-to-date information on doing business with DHS and on finding out who is buying what: www.dhs.gov/openforbusiness. (This site was covered in depth in a previous article on www.homelanddefensestocks.com).
Mr. Erkun especially recommended two elements of the site that are of particular help to small business:
1. The site’s list of prime contractors and their contacts, which will help small
businesses start forming their networks of useful contacts in Washington, DC and
other areas
2. The forecast of contract opportunities, which gives program office contacts and will
provide access to the end users
In summing up their advice, Mr. Loiry stressed attending industry events, remaining involved, and developing Washington contacts; Mr. Moody encouraged everyone to contribute their ideas to the process and to contact his company’s Homeland Security Program Management Office at 703-747-7740; Mr. Erkun reminded everyone that the openforbusiness site has information on submitting an unsolicited proposal.
“This is how we evaluate new ideas and new products,” Mr. Erkun said about the submission of unsolicited proposals. “This is how you can get your product looked at by DHS.”
Source: HomelandDefenseStocks.com |
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