Marketing to U.S. Federal & State Governments: Strategy for Korean Companies Day Two

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

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

3. 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 U.S. Governments Market Training Course

4. 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? U.S. Governments Market Training Course

5. 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 U.S. Governments Market Training Course

6. 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 U.S. Governments Market Training Course

7. 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 U.S. Governments Market Training Course

8. 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 U.S. Governments Market Training Course

9. 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 U.S. Governments Market Training Course

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

11. 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 U.S. Governments Market Training Course

12. 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 U.S. Governments Market Training Course

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

14. 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 U.S. Governments Market Training Course

15. 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 U.S. Governments Market Training Course

16. 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 U.S. Governments Market Training Course

17. 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 U.S. Governments Market Training Course

18. 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 U.S. Governments Market Training Course

19. 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 U.S. Governments Market Training Course

20. 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 U.S. Governments Market Training Course

21. 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 U.S. Governments Market Training Course

22. 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 U.S. Governments Market Training Course

23. 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 U.S. Governments Market Training Course

24. 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 U.S. Governments Market Training Course

25. 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 U.S. Governments Market Training Course

26. 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 U.S. Governments Market Training Course

27. Mr. Adam PricePartner, Potomac AdvisorsArlington,VirginiaE-mail: adam@potomacadvisors.com