SubContracting Opportunities - Department Of Defense

Federal Government Contracting:
SUB-CONTRACTING
2022 Webinar Series
Washington DC – hello@JenniferSchaus.com – 202-365-0598

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www.kal.technology contact@kal.technology 844-930-2218
Helping Business Take Their Software To The Next Level
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Specializing in Open Source Solutions

SUBCONTRACTING OPPORTUNITIES AT
Department Of Defense

AGENDA:
➢ Panelist Introductions
➢ Mission Statement / History
➢ Bureaus, Agencies & Offices
➢ Important Links
➢ Top Vendors
➢ Trends & Opportunities
➢ Marketing Best Practices
➢ Legal Considerations

DATA SPEAKER:
Ms. Archisha Mehan
GovSpend
amehan@govspend.com

LEGAL SPEAKER:
Ms. Jody Reed
McMahon, Welch and Learned, PLLC
jreed@mwllegal.com

MISSION STATEMENT & HISTORY:
The mission of the Department of Defense is to provide the military
forces needed to deter war and ensure our nation's security.

BUREAUS / AGENCIES / OFFICES:
Defense Acquisition University
Air Force
Army
Defense Advanced Research Projects Agency
Defense Commissary Agency
Defense Contract Audit Agency
Defense Contract Management Agency
Defense Health Agency
Defense Information Systems Agency
Defense Intelligence Agency
Defense Logistics Agency
Navy
Defense Security Cooperation Agency
Defense Counterintelligence and Security Agency
Defense Finance and Accounting Service
Defense Logistics Agency
Defense POW/MIA Accounting Agency
Defense Technical Information Center
Defense Threat Reduction Agency
Federal Voting Assistance Program
Fleet Forced Command
Joint Chiefs of Staff
Marine Corp
Missile Defense Agency

LINK TO DEPARTMENT:
https://www.defense.gov/
LINK TO OSDBU/OSBP:
https://business.defense.gov/Small-Business/DoD-Small-Business-Offices
LINK TO PROCUREMENT FORECAST:
https://business.defense.gov/Small-Businesses/Acquisition-Forecasts/
LINK TO SBA SCORECARD:
https://www.sba.gov/document/support-department-defense-contracting-scorecard

TOP 10 VENDORS

1 – Lockheed Martin
2 – Humana Government Business
3 – General Dynamics
4 – Boeing
5 – Health Net
6 – Fluor Intercontinental, LLC
7 – Sikorsky Aircraft Corporation
8 – Pfizer
9 – Bell Boeing Joint Project Office
10 – Huntington Ingalls Incorporated

TOP 5 VENDORS - PROFILE

#1 - LOCKHEED MARTIN
https://www.lockheedmartin.com/

LOCKHEED MARTIN
SBLO (SMALL BUSINESS LIASION OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.lockheedmartin.com/en-us/suppliers/business-area-procurement/aeronautics/business/small-business.html

Caption
Caption

Top Subcontracts for Lockheed at DoD for FY 21

#2 - HUMANA
https://www.humanamilitary.c
om/about-us

HUMANA
https://www.humanamilitary.com/about-us/small-business

#3 - GENERAL DYNAMICS
http://www.gdeb.com/

GENERAL DYNAMICS
http://www.gdeb.com/suppliers/3_doing_business_with_eb/

Caption

#4 - BOEING
https://www.boeing.com/

BOEING
https://www.boeingsuppliers.com/contactUs.html

#5 - HEALTH NET
https://www.hnfs.com/

HEALTH NET
https://www.hnfs.com/content/hnfs/home/tw/bene/res/symbolic_links/contact_us.html

3.2B

MARKETING BEST PRACTICES

MARKETING BEST PRACTICES
1 – Know your Customer (Department and Primes) BEFORE you engage! Do your homework!
2 – Register on the Prime’s website as a Small Business Vendor. Ensure your information is complete and
accurate and matches your SAM registration.
3 – Connect on Linkedin with the key players and follow the company to stay abreast of news and relevant
information. Sign up for Google alerts.
4 – Attend events and join associations where the company is active.
5 - Provide value - bring an opportunity and a custom Capability Statement geared to an Opportunity

Reference - Department of Defense FAR Supplement
https://www.youtube.com/watch?v=vG71l6v6m7E
Subcontracting – LEGAL PERSPECTIVE

Subcontracting – LEGAL PERSPECTIVE
Ms. Johana Reed
McMahon, Welch and Learned, PLLC
jreed@mwllegal.com

1 – Read your subcontract
Oddly enough a lot of issues come up between a Prime contractor and a subcontractor
is because the subcontractor did not read the contract.
The DoD Prime Contractors will impose their requirements on their subcontractors,
regardless of the applicability of the requirement on the particular effort.
Sub-Contracting – LEGAL Best Practices

2 – Negotiate Your Subcontract
There are generally three areas of concern:
● Protection of Intellectual Property (IP)
● Flow down of cost/cost accounting/pricing requirements
● Flow down requirements

3 – Review your IP portfolio and negotiate protection of your
IP (accordingly)
The DFARS (Part 27) has three levels of IP
1. Unlimited Rights
2. Government Purpose Rights
3. Limited (technical data)/Restricted (software)
The Prime Contractor is not entitled to own the IP a subcontractor creates pursuant to
a government funded contract

4 – Confirm that your contract includes DFARS 252-227.7013
and 252-227.7014
These are the two clauses that directly relate to assuring the creator of IP owns the IP
at the end of the contract.
Note: The government may get an unlimited rights license to the IP and the prime
contractor may need a limited rights license to fulfill its responsibilities as a prime.

5 – Train your engineers to understand how to protect IP in
the creation of new IP
If you have existing IP, you need to create the new IP as a separate IP and try not to
combine the new IP with the old in such a way that the new IP is not distinct.

6 – Only agree to provide the cost information that your
accounting system can provide
If you are not able to provide specific cost information by contract or project, you
should not accept any contracts requiring the provision of such detailed data.
In fact, if you accept such a contract, and cannot track to the appropriate level, you will
be in breach of the contract. This means that you may never be paid for the work and
you may be terminated for default.

7–Don’t accept all the flowdown clauses that are part of the
FAR/DFARS list of flowdowns
The big push back that is a consistent issue is Prime contractors who claim that if a
clause is not applicable to a particular effort

If you sell a product that can meet the requirements of being considered to be
commercial product, it is worth your while to get the product be considered
commercial.
The number of clauses that are applicable to commercial contracts is considerably less
than a standard multipage list of flowdown clauses
W
FAR Flow Down Clauses - What To Know

Keep in mind that a lot of FAR clauses are replaced with DFARS clauses. Part of
reviewing the contract is to remove those duplicative clauses so that you have a
“clean” contract.
You should also keep track of DoD Deviations of FAR requirements; for example, DoD has a new
DoD deviation regarding when you need to be in SAM.
The definitions may also change – for example: the definition of commercial product is different
between the two regulatory regimes.
W
FAR Flow Down Clauses - What To Know

Significantly more cybersecurity requirements.
CMMC (Cybersecurity Maturity Model Certification) will eventually be live.
Current certification requirements per 252.204-7012, 7019, 7020
Failure to comply will have serious consequences
Sub-Contracting - Other Legal Considerations

Remember you are entering into a contract that is government by state law.
California is a great law if you are a subcontractor, not so great if you are a prime contractor to a
lower level subcontractor … so choice of law can be important.
Choice of forum, i.e., where must you bring suit.
Be careful of “Work for Hire” clauses.
Changes, terminations, indemnification, limitation of liability, insurance, conflict of interest,
clauses are other clauses you should pay attention to.
e o
Sub-Contracting - Other Legal Considerations

THANK YOU FOR ATTENDING
THANK YOU TO OUR SPEAKERS
Johana Reed
jreed@mwllegal.com
Archisha Mehan
amehan@govspend.com

SubContracting Opportunities - Department Of Defense

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