1. ENERGY ENVIRONMENT NATIONAL SECURITY HEALTH CRITICAL INFRASTRUCTURE © SAIC. All rights reserved. Babak Nouri, Vice President, Business Development April 19, 2012 Subcontracting: Doing Business with Prime Contractors 2012 OSDBU Procurement Conference

2. SAIC.com © SAIC. All rights reserved. The Current Environment The Challenge - Government customers have challenges that affect the business environment – Budget challenges resulting in reduced discretionary dollars are forcing hard choices – Limited resources affect the acquisition cycle: Opportunities taking longer to be awarded Increased use of indefinite delivery/indefinite quantity vehicles (including GSA schedules) – The cost of doing business as a prime has increased significantly The Opportunity – from a small business perspective teaming allows a chance to: – Increase revenue at reduced opportunity cost – Diversify current revenue/customer base – Build past performance The Reality – Crowded space with many, many voices – Large businesses realize the value small businesses can bring – Primes are more selective in terms of subcontractor selection for a variety or reasons 2

3. SAIC.com © SAIC. All rights reserved. Ways to Engage a Large Business (Big Picture) Too little, too late – Inquiry regarding teaming opportunities following press release of contract award – Identifying open job positions on large business website Passive (“just enough”) – Registering on CCR and SBA websites – Registering on large business small business website – Generic email to company small business office Active – Marketing federal agency customers to: Identify upcoming opportunities Learn and become familiar with the contractor landscape at customer location – Identify opportunities through forecasts and other market research tools to develop a pipeline 3

4. SAIC.com © SAIC. All rights reserved. Ways to Actively Engage a Large Business Meeting prime contractor personnel – Presenting capability briefing – Discussing opportunities Teaming/Subcontracting – Your firm has knowledge of the opportunity – Firm has demonstrated past performance and customer knowledge – Relationship formalized well in advance of the opportunity being competed through teaming agreement Use of a prime’s existing contract vehicle to facilitate business – Business has marketed opportunity and customer is receptive with caveats – Customer is constrained/prefers to use certain IDIQ/GWAC vehicles – Critical step is to match opportunity to: Contract scope Terms and conditions unique to contract Time and Effort Required 4

5. SAIC.com © SAIC. All rights reserved. Teaming Decisions – A Deeper Dive Scenario 1: Follow-on contract – We have an incumbent subcontractor team – Small possibility for team adds to cover a niche requirement or small business socioeconomic category – Priorities: Candidates known to the customer; Relevant experience in the niche area; Relevant experience on a ‘like’ contract Scenario 2: New opportunity (SAIC is not a current prime) – Same priorities as above but more opportunity for new subcontractors – Strong preference given for “incumbent” subcontractors Scenario 3: MAC IDIQ (or GWAC-type contracts) – Larger number of subcontractors – Less stringent on selection priorities – Opportunities will be at the task order level – be proactive and responsive 5 Most teaming decisions are based directly tied to an SOW/PWS well before the RFP is released

6. SAIC.com © SAIC. All rights reserved. Things to be mindful of and strategies to consider Teaming Discussions – Make sure an NDA (non-disclosure agreement) is in place before meaningful negotiations – Secure a signed teaming agreement to ensure being on the team – Assign points-of-contact to effort and know prime POCs including: Capture manager (and possibly proposal manager) Procurement/Subcontracts Program manager “Blocking & Tackling” – Proposal phase – Be responsive to all data calls during proposal phase and any down-select/BAFO efforts – Share any market intelligence you come across – Continue to place an emphasis on stellar performance and employee retention Post award – Secure a signed subcontract – Get to know the Program Manager – For IDIQ contracts: Plan to actively market Understand how task orders will be shared/disseminated Avenues to differentiate yourself from other subcontractors – Consider investing in technical certifications for the organization or employees – Know the customer and target your teaming activities – Develop a competitive cost structure – cost has at times been the only factor 6