How to Sell to the DoD

1. Be Committed To the Work

Kim Nguyen, director of special programs for Pragmatics, a McLean, Va.-based DoD IT provider, says VARs must have a level of devotion to be successful,it's not just a matter of getting the requisite security clearances. It calls for embracing the military's mission.

"You're supporting the war-fighter," Nguyen says. "There's a weightiness and importance to it, especially in light of what happened on 9/11. We're developing systems so they'll have the information they need to fight. In our line of work, you're trying to help save soldiers' lives."

In May, Nguyen's company was selected as one of eight prime contractors for the Defense Information Systems Agency NexGen contract (see "Anatomy of the NexGen Deal," page 16). Although DoD contractors such as Pragmatics are civilian organizations, they feel they are as much at war as their comrades-in-arms: "Right after 9/11, we had a meeting within our company to discuss how we would prepare for the war," Nguyen says.

2. Do Some Research

"We are open to meeting with vendors to see what they have. We are happy to tell them how to get on a DoD or Army contract," says Olga Lawrence, assistant project manager for the U.S. Army Small Computer Program, based in Fort Monmouth, N.J. But before taking advantage of such open doors, do your homework.

Randy Zivan, director of product marketing for Boeing Autometric, a Springfield, Va.-based DoD contractor, suggests an in-depth review of publicly available information. Understanding certain basic requirements is essential. "You need to take a good, solid look at the operating requirements to interact, integrate and interconnect with other DoD operational systems," Zivan says.

Integrators and VARs need to be able to put these technical requirements in a larger context.

"These organizations publish their priorities and budgets as well as their visions," Zivan says. "For example, the Army has a vision for where they want to be [in terms of IT in 2016. If you want to do business, it would be smart to know what that vision is and how they're going to phase it in." Details about specific programs and contacts for them are easy to access, he says. "As you find programs that are of interest, you'll also find the names for the colonels, generals and commanders working on them."

Service providers such as Input and FSI also collect key information for commercial clients.

"They will identify appropriate, upcoming opportunities years in advance, as well as recommend others going after the business that might make good partners," Zivan notes. "If you put yourself down as a prime contractor, you'll get calls from dozens of companies looking to work with you." Existing contracts, too, may offer opportunities, he adds: "Contracts often run several years in length, sometimes with annual renewable options. Just because a company got an award three years ago doesn't mean it's a done deal."

3. Learn the Customs

The customs and character of the military market should also be understood and appreciated.

"It's a culture that can be learned," says Joe Ciano, director of business development, Defense for Lockheed Martin Information Technology (LMIT) in Seabrook, Md. "Each service has its own style of doing things. They each have distinct cultural qualities. So if you're going to do business there, you really need to understand that." Ciano, a Naval Academy graduate, came to LMIT after a 20-year career with the Marine Corps.

"You need to know certain basics. If you're calling on the Marine Corps, [you better know what a captain's insignia looks like,or a general's,and know the difference between them," he says. "That's just part of the research for working with these customers."

Despite his own military history, Ciano doesn't see having a service background as a prerequisite. "I've seen people be extraordinarily successful in this business without having [spent a single day in uniform," he says. "I believe the mix [of military and civilian backgrounds is what makes it exciting. People from the commercial marketplace bring a very valuable perspective."

4. Be an Attractive Partner

Ciano suggests partnering or teaming with established DoD contractors as one sure way to learn the ropes. Combinations of companies working on projects have become the norm. "The days are long gone where a monolithic company could come to a DoD customer and bring it all," he says. "That's long past. The client wants to see a team with a lot of diversity and capabilities."

For those that try to go it alone, be aware that technical superiority alone to drive a deal is often a losing proposition.

"A good way to fail is for a contractor not widely known in the DoD to approach the end-user customer and say, 'I've got X that will solve all your problems and make your life simple,'" Ciano says. "That kind of cold-call approach touting the particular features and benefits of a specific product is a risky proposition. You're betting that they have a specific need for this and have a mindset to know this."

For Ciano, the problem is that such an approach fails to take into account existing solutions. "In all likelihood, this prospective customer has some relationship with a vendor that provides another technology performing that function. So, there is an installed base, some contract for maintenance and support, and trained staff supporting it. They have an investment. Moving off is not a trivial decision." Understanding the installed base and the practical realities of replacing/upgrading it is a key element of any pitch, but more so in the DoD, according to Mike Fox, vice president and director of sales and marketing at SRA International, a Fairfax, Va.-based government IT solution provider.

"When selling to the DoD, transition is always at the top of the list," Fox says. "How will you go from system A to system B with absolutely minimal disruption? Typically, you're dealing with live systems that people use to carry out their missions on a day-to-day basis."

No matter how careful the migration planning, expecting the unexpected goes with the territory in DoD work. Fox saw this firsthand shortly after SRA won the contract for the National Guard's network-operation center last year. EDS had maintained the facility since 1983. The switchover was to start Sept. 9.

"Originally, we had a 30-day transition period to ease EDS people out and replace them with SRA people," he says. "That was cut down to two days after Sept. 11. That takes transition to the extreme."

The state of emergency and the National Guard's crucial role in responding to it put SRA's team to the test and brought support from unexpected quarters. "Good planning allowed us to accelerate the schedule," Fox recalls. "It also took some cooperation between EDS and SRA. The losing incumbent is not normally inclined to cooperate entirely. Under these circumstances, our CEOs talked it out, and EDS reached out to support us."

In theory, any competent technology provider can figure out how to market successfully to DoD clients without outside help. But you should think twice about going it alone, says Boeing's Zivan. "For those getting started, my strong suggestion is to hire somebody who knows the ins and outs of the business. Whether by bringing someone directly into your organization or by subcontracting a consultant, hire somebody. Don't take it on yourself. It's extremely difficult."

5. Create Enterprisewide Efficiences

Understanding the contrasts among the different service

branches has always been crucial. That's magnified now that one of the major initiatives is to achieve enterprisewide efficiencies where appropriate. For VARs, that means working with and through differences in parallel organizations that share common goals. GTSI, a Chantilly, Va.-based VAR is just putting the finishing touches on unifying procurement for desktop software among Army, Navy and Air Force military health organizations. In the past, each purchased a total of 100,000 licenses of Microsoft software individually. GTSI's value-add was to work out differences among the services to save money by purchasing together.

"This was a serious challenge," says Joe Bycina, GTSI's senior program manager for Army/Navy/Marine Corps contracts. "There is a great deal of difficulty going across services. It was like working with three different companies. You have the political aspects as well as the different perspectives. We had to find the common ground." Despite the common mission shared by these organizations, working through the details in licensing and requirements took some 20 GTSI employees months to do.

"Everyone had a slightly different setup and we had to get to a common desktop configuration," says GTSI's John Satyshur, sales manager, Navy/Marine Corps. "It seems like an easy task, but the small nuances had to be worked out. You think this would be a chip shot for more challenging things. But it was more difficult than we thought." Bycina and Satyshur attribute close relationships with clients and vendors as key. The immediate payoff is a three-year deal for 130,000 seats of Microsoft desktop software. The long-term achievement is establishing a track record of success in achieving one of the DoD's strategic goals.

6. Know Your Strengths

Besides understanding DoD clients, it's also crucial to understand your own firm's capabilities. Keith Grabel, president of Westwood Computer, a Springfield, N.J.-based VAR, is careful to not overreach for opportunities. "It's important not to try to take on something we can't do,be somebody we're not," he says. "We're a small business, so we have to stay within our means."

That isn't necessarily the product of a cautious conservatism. Rather, it's the practical perspective of someone who knows that reputation is important. "We want to deliver excellence," he says. "One of the biggest factors in gaining government work is past performance. Good ratings are key to getting new contracts."

By carefully building on success, Westwood recently renewed a three-year, $20 million contract with the Air Force to provide Lexmark printers.

Selling to the DoD takes a certain resolve, a certain discipline. Proper preparation and execution,and understanding that this is potentially the most serious business you'll ever have,are the keys to becoming a regular player.