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©2014 immixGroup, Inc. All rights reserved.

Fundamentals of

Selling Technology to

the Government

Presented By:

Tim Larkins

Lloyd McCoy Jr.

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Foundations of the US Government

2

• In the US Government, power is shared between the

Federal Government and State Governments

• The Federal government is made up of three branches

Legislative (creates and passes law)

• Consists of 435 members of the House of Representatives and 100

members of the Senate

Judicial (applies and explains law)

• Consists of the Supreme Court and lower courts

Executive (administers law)

• Consists of the President, Vice President, Secretary of State, and 15

Cabinet level & 67 Independent agencies

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Executive Branch

3

DHS DOT VA

EDU HHS DOJ

DOS USDA NASA

DOE DOC GSA

DOI TREAS SSA

DOD

• Out of 82 Federal agencies, 27 request and receive an

information technology budget from Congress included in the

President’s budget

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IT Budget

• Congress is then supposed to

pass an annual budget that

allocates money to each agency

for the year

• Information Technology budgets

are a part of this process, and

those budgets can be found in the

Exhibit 53

• The Exhibit 53 is a report that

estimates the budget requests for

Federal Agencies and is

published annually as part of the

President’s budget

4

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Exhibit 53

5

• It can be found in multiple

locations, including the

ITDashboard, the OMB

website, and in GovWinIQ

• The Exhibit 53 classifies the

programs as “Major” or “Non

Major” investments;

– “Major” investments require a

budget justification document

called an “Exhibit 300”

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Sealed Bidding

Negotiated Procurement

Simplified Acquisition

Multiple Award

Contract Vehicles

70s 80s 90s 00s

Contracting Methods

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Acquisition Process

7

1

2

3

45

6

7

8Agency Vision/Need

Funding

Source Selection

Post-award

Requirements

Definition

Market Survey

Sources Sought

RFI

Solicitation Released

RFP

RFQ

Combined

Solicitation

Award

LPTA

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Selling Across Three Chains of Command

8

Prime

PM

Sys Eng

Soft Dev

Soft Manuf

Sub

CIO

PM

End User

Comptroller

Expense Center

Manager

Fund Certifying

Official

Program Engineer

Contracting Officer

COTR

Contractors Program Office Finance & Accounting Contracts

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Contract Vehicles

9

ID/IQs

MACs

GWACs

• GSA Schedule 70 – GSA Schedules

allow companies to list their offerings

on a “menu” for the government to

choose from

• BPA – Blanket Purchase Agreements

give agencies flexibility to purchase a

set of products or services at a fixed

price over time

• ID/IQ stands for Indefinite

delivery/indefinite quantity and are

contract vehicles that allow the

government to buy an unspecified

amount of goods or services within a

specified period of time

• Two types of ID/IQs are called a MACs

(Multi Agency Contracts) and GWACs

(Government Wide Acquisition

Contracts)

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Procurement Drivers

10

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Drivers Affecting Acquisition

11

Legislation or Executive Order

• From Congress or the President

Implemented in Policy and Regulation

• From Committees, Associations, Councils, or Agencies

Explained in Guidance

• From Agencies

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Federal Acquisition Regulation (FAR)

12

• The Federal Acquisition Regulation (FAR) is a

substantial and complex set of rules governing

the federal government’s purchasing process

• Its purpose is to ensure purchasing

procedures are standard, consistent, and

conducted in a fair and impartial manner.

• The relevant parts for businesses include Part

19 (Small Business Programs), and Part 52

(standard terms and conditions contained in a

government contract)

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Clinger-Cohen Act

13

• In 1996, the Clinger-Cohen

Act introduced GWACS and

gave significant authority to

agency CIO’s

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E-Government Act (e-gov)

• Improve IT to enhance mission

performance and increase

transparency

• Federal Enterprise Architecture

- Business like framework for

government wide planning and

improvement

- FEA “Reference Models”

• FISMA

- Identification, auditing, and

reporting

- New legislation to address

Continuous Monitoring and threat

data sharing

14

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©2014 immixGroup, Inc. All rights reserved. No part of this presentation may be reproduced or distributed without the prior written permission of immixGroup, Inc.

All trademarks are the property of their respective owners. immixGroup Confidential

www.immixgroup.com

E-Government Act (e-gov)

• Improve IT to enhance mission

performance and increase

transparency

• Federal Enterprise Architecture

- Business like framework for

government wide planning and

improvement

- FEA “Reference Models”

• FISMA

- Identification, auditing, and

reporting

- New legislation to address

Continuous Monitoring and threat

data sharing

16

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E-Government Act (e-gov)

• Improve IT to improve mission

performance and increase

transparency

• Federal Enterprise Architecture

- Business like framework for

government wide planning and

improvement

- FEA “Reference Models”

• FISMA

- Identification, auditing, and

reporting

- New legislation to address

Continuous Monitoring and threat

data sharing

17

©2014 immixGroup, Inc. All rights reserved. No part of this presentation may be reproduced or distributed without the prior written permission of immixGroup, Inc.

All trademarks are the property of their respective owners. immixGroup Confidential

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E-Government Act (e-gov)

• Improve IT to improve mission

performance and increase

transparency

• Federal Enterprise Architecture

- Business like framework for

government wide planning and

improvement

- FEA “Reference Models”

• FISMA

- Identification, auditing, and

reporting

- New legislation to address

continuous monitoring and threat

data sharing

18

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Privacy Act of 1974

19

• Amendments and Agency evolution

- CPO, PIAs, Budget formulation

• New developments

- OMB FISMA & Privacy guidance

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Electronic Health Records (EHRs)

20

• EHRs are to be secure,

comprehensive, and

interoperable, as directed by

the Health IT Act passed as

part of ARRA (the “Stimulus”)

• Billions of dollars in

development and adoption

• Cultural and generational

change will take decades

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Accountability and Transparency

21

• Federal Funding Accountability

and Transparency Act (FFATA

aka the Transparency Act)

• Presidential Memo on

Transparency and Open

Government

• Open Government Directive

• Budget Performance Integration

− USAspending.gov

− ITdashboard.gov

− Data.gov

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IT Management Reform

22

• 25 Point Plan

− IT as a Service

− Data Center Consolidation

− Cloud First

− Agile Development

− Shared Services

− Right data anywhere via any

device

• Digital Government Strategy

(DGS)

• Digital Services Playbook

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IT Management Reform

23

• 25 Point Plan

• Digital Government Strategy

(DGS)

− Information Centric

− Shared Platform

− Customer-Centric IT

− Security and Privacy

• Digital Services Playbook

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IT Management Reform

24

• 25 Point Plan

• Digital Government Strategy

(DGS)

• Digital Services Playbook

− Default to open

− Create a modern stack and

avoid vendor lock

− Use data to drive decisions

− Agile methodology to deliver

iterations of a service early

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Federal Cloud Computing

• Strategy: consider the “Cloud

First”

Goal: $20 billion of $80 billion

IT budget to the cloud

• Barriers

– Lack of certified vendors

– $$ tied up in legacy

investments

– Agencies waiting for end-of-life

of legacy systems before

considering Cloud

25

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Data Center Consolidation

• OMB's initial goal in 2010 was

to close 40 percent of federal

data centers -- estimated at

about 3,133 -- by 2015

• OMB changed the definition of

a data center to include closet

sized facilities

• Triggered greater focus on

optimization than closures

26

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PortfolioStat

• Gives CIO’s a more complete

view of where the money is

going and opportunities to

consolidate buying

• Commodity IT

– Shared Services

• PortfolioStat 2.0 incorporates

data center consolidation

27

OMB created PortfolioStat, a process and a tool agency CIOs use to examine

an entire IT portfolio to help root out redundancy/waste among their respective

applications and systems

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Mobility & Telework

28

• Telework Enhancement Act of 2010

• Not only about mobile devices,

but also applications and services

• Cultural and security challenges are the current focus

• Continuity of Operations, mobile workforce and mobile citizen needs are also

drivers

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Summary

29

• Federal agencies receive funding from Congress

- Details on IT budgets and IT programs can be found in the

Exhibit 53s and Exhibit 300s

• The Acquisition Wheel describes the 8 step process

employed by Federal agencies to acquire new IT solutions

• Contracting has become more transparent and more flexible

for the government

- ID/IQs are more widely used now

• Sales teams must sell across 3 chains of command

(Program Management, Accounting & Finance, and

Contracting)

• Understanding procurement drivers is key to understanding

what solutions the government needs and why they buy

those solutions

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©2014 immixGroup, Inc. All rights reserved.

Fundamentals of

Selling Technology to

the Government

Presented By:

Tim Larkins

Lloyd McCoy Jr.