Diary of a (Non-Tech) Tech Scout 2.0

Apologizing up front for the week delay in publishing the second iteration of this blog. Decided to take a last second vacation to Mexico to catch the whale shark migration (absolutely worth it if you can make it)!

The major highlight over the past three weeks was participating in the National Defense Industrial Association (NDIA: https://www.ndia.org) Joint All Domain Command and Control (JADC2) and All Domain Warfare conference at Texas A&M University through support of the Bush School of Government and Public Service. The conference was packed with key speakers such as Congressman Seth Moulton (D-MA), General Officers from every branch and background, and industry leaders from organizations such as Lockheed Martin, Google, Defense Innovation Unit, Voyager Capital, and more. If you have the opportunity to sit in one of these conferences, I'll tell you it's absolutely worth the time and energy; illuminating to hear from elected officials, the joint services leaders, industry leaders, and successful start ups who have figured out the defense acquisitions process. While I was vigorously writing copious notes from these leaders, I started recognizing what wasn't being discussed... which drove the topic of this iteration of the blog: 5 Shadow Rules of Government Acquisitions. They're called "shadow rules" because most won't discuss this openly, or... frankly... the government expects you to know already and won't take the time to explain it to you.

Shadow Rule #1: If you're a foreign company, you need a U.S. subsidiary: unfortunately this means you as well Canada...

• Right, Wrong, or Indifferent... the U.S. Government has become increasingly cautious with technology in the defense sector due to nation state espionage, tampering, or downright theft. This means the government and military are abundantly cautious when investing in a foreign company.

1. Solution: While it's not impossible to secure funding and contracts, it is much easier if you've established a U.S. subsidiary. While the process can be complex and convoluted, the money and energy are well worth it to instill confidence in your customers that you're a valuable asset that can be protected from foreign corruption. Setting up a U.S. Subsidiary will allow you to hire the support you need stateside to break into the government acquisitions world... which leads directly into shadow rule #2. Of note, each state has its own laws, stipulations, and regulations which are important to take note of while establishing your subsidiary. Getting the proper legal and financial authorities in place will be paramount in your success and ease of establishment.
2. If you need additional support: Venture Capital firms are your friend! Yes... I really mean it... They have the breadth of knowledge, and more importantly the network, to provide you whatever support necessary to ensure your success. While they want to see a return on investment, many are driven by a call to service and want to ensure the safety and defense of the American people. If your technology/capability can support that safety, defense, or improve the quality of life; their support will be game changing. If you need an educational connection, please feel free to message me!

Shadow Rule #2: Invest in getting a Top Secret security clearance (TS/SCI) and put them on your pitch team.

• Over the last two months I've watched many companies with great ideas run into major road blocks and hurdles with government tech scouts because no-one on their team had top secret and/or secret access. As frustrating as it may be, the government/department of defense is always going to take the easier (usually cheaper) road... meaning if your competitors have an inferior technology but have the ability to work in classified spaces without extra support, they're going to go with them!

1. Solution #1 (easiest): Hire a military veteran who is serving in the National Guard or Reserves. This is the easiest option because their security clearances are "parked" i.e. managed by the government at their military unit headquarters. You get all the benefits of having someone with a clearance without the hassle of securing one yourself. There are TONS of veteran hiring services, but a few to get you started are: https://www.hiringourheroes.org/employers/; https://www.dol.gov/agencies/vets/. If you just want to do a "trial run" the military does an outstanding program called Skillbridge (https://dodskillbridge.usalearning.gov/industry-employers.html) where you allow a soon-to-be veteran work in your company for up to six months while they're still on the military payroll.
2. Solution #2 (harder): Become sponsored by a government agency to gain your own clearance... or hire a contractor from a contracting agency who has already been sponsored. To become sponsored by the government is incredibly time consuming and difficult. Even after sponsorship, you'll have to wait a year or longer to have your clearance packet reviewed and awarded.

Shadow Rule #3: "Joint applies to warfare, not contracts"

• This is my personal crusade to fix while serving as an Army reservist with Space Force and the Air Force Research Lab (AFRL), but the quote has absolute true value. I've labeled the joint service's innovation ecosystems as "stovepipes of excellence" because of the great difficulty it is to cross budget streams, contracting languages, and inherent focuses of that service. While every service has amazing innovation programs (highlighted in the first iteration of this blog); they're entirely too busy and have too much "red-tape" to cross the aisle and mutually work on requirements. This results in duplicate efforts, or a lack of energy put into projects which strive to do too much too fast.

1. What does this mean for the nascent company? Well... twofold really! First: If your tech didn't take hold in one service... don't give up! Try again in another service. What tends to happen is your technology may be "interesting" to the Space Force, but could be absolutely game changing for the Army. Many companies are discouraged and tend to give up after one service says its not useful to them. If it isn't useful to the joint-services, take a look at the many other government organizations who don't receive as much attention!
2. Second: Eat the whale one bite at a time... Find a way to break into a service instead of selling yourself as the "answer" for all of the services. Trust me... if you're game changing for one service, the others will take note and will come to you.

Shadow Rule #4: Commanders don't have checkbooks...

• They can tell you all day they want your technology, but at the end of the day they have to ask someone in the acquisitions/contracting world to find the money and it has to be tied to a REQUIREMENT or URGENT OPERATIONAL NEEDS (UONS)! Requirements can be frustrating to say the least... even if you have a life changing technology, it won't matter to the DOD without a written requirement (which can take months if not years to write). Commanders can't circumvent the requirements process and write you a check for your new technology... at least not yet!
• For more information: UONS: https://aaf.dau.edu/aaf/uca/uons/ Requirements and acquisitions process: https://www.acq.osd.mil/dpap/Docs/5000rewritebrief.pdf

1. Solution: Get the GS-13s/O-3s to act as your champion inside the organization you're pitching to! The true hidden power in the Department of Defense lies with the GS-13s and O-3s. GS-13s/O-3s are the mid tier decision makers who are building the products and conducting briefs for the main decision makers. General Officers tend to rely on their subordinates to do the research to make an informed decision; if you have the GS-13s/O-3s on your side they will conduct the brief to the decision maker to get you across the finish line. Invest your time in mid-tier leadership to gain placement and access at higher echelons. Once you have the mid-tier leadership on your side... they will run to help find funding sources to help you reach your goals; which of course means they will work through UONS or the requirements process.
2. Solution: Participate in government-sourced or government-backed accelerator or SBIR programs! They're incredible resources for streamlining the acquisitions process to get your technology or capability into warfighters hands the quickest. They also have the network, ears, and priorities of the government acquisitions personnel you are desperately trying to sell to. Be successful in these pipelines and you'll gain direct placement and access you're searching for (often for free!). Below are is a small group of LinkedIn profiles/links which I have personally participated with to get you started!

Catalyst Accelerator: https://www.dhirubhai.net/showcase/catalystaccelerator/

Hyperspace Challenge: https://www.dhirubhai.net/company/hyperspace-challenge/

Space Force Pitch Day: https://hopin.com/events/space-force-pitch-day

AAL SPARTN: https://www.dhirubhai.net/posts/army-applications-laboratory_watch-out-for-a-new-spartn-sbir-topic-coming-activity-6826145481631027201-PJ5t

SBIR Incubators: https://www.sbir.gov/node/822177

Shadow Rule #5: "Customers in the Department of Defense expect you (the industry) to understand the combatant requirements and understand the operational environment" -Lt Gen Michael Minihan; US-INDOPACOM

• Lt Gen Minihan made this comment during his brief at the Joint All-Domain Command and Control conference hosted by NDIA at Texas A&M last week... and it stuck with me. If you don't know what "combatant requirements" or "operational environment" mean this section applies to you! If you can't speak the language (and each branch speaks a different one) then you will miss out on opportunities. Learn the vernacular and learn how to "speak" like your customer. General officers and contracting officials will write off your idea if they don't have confidence that you understand their "language." Decision-makers want to be sure you understand their culture and truly understand their problems.

1. Solution: I hate to sound like a broken record... but the easiest way to resolve this issue is to hire a veteran who has had experience in that organization and brings with them a strong network which you can tap into.
2. Additionally, the military frames itself with doctrine; providing a strong left/right framework which military organizations should follow. Doctrine is how every U.S. Service Members and DOD civilians are taught the basics. Read and study the doctrine yourself to understand what "buzz words" that organization uses to gain a dramatic increase of credibility in your pitch. For example... If you're an AI/ML based company and want to break into the joint services, it would serve you well to read the JADC2 doctrine which was just published a couple months ago.

Thank you for all the support on the first iteration of this blog! We have an incredibly exciting next couple weeks in front of us at Air Force Research Lab with the the launch of SPACEWERX and Space Force Pitch Day happening from August 17-19th. If you are interested in how Space Force structures its competitions or what direction the Space Force innovation ecosystems is going to head please register as a viewer at https://hopin.com/events/space-force-pitch-day!

As always, if this is beneficial please share with your network or feel free to message me directly for questions or recommendations! See you all in a couple weeks!