Navigating GovCon Banking

In this episode of "Game Changers for Government Contractors," host Michael LeJeune is joined by Edward Spenceley, National Executive for Government Contracting at Bank of America. With over 20 years of experience in government contracting and 14 years in the military, Edward shares his unique journey and the lessons he's learned about building relationships and supporting small businesses in the GovCon space. From overcoming financial challenges to navigating compliance issues, Edward provides invaluable insights into how contractors can succeed. He emphasizes the importance of surrounding yourself with a team that understands the complexities of government contracting, making this episode a must-listen for contractors looking to grow their business.

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Read Transcript Here:

Michael LeJeune (00:00) Welcome to another episode of Game Changers for Government Contractors. I have with me my good friend, Mr. Edward Spensley. Edward, it is a pleasure to have you. This is three years in the making because we tried this three years ago and couldn’t get the audio. Now that we’ve got the audio working, I’m excited to talk to you. Before we jump in, I know a lot of people in the market already know who you are and what you do. But for those who don’t, give them a quick overview of who you are and what you do.

Edward (00:26) Sure. I’m Edward Spensley, the Government Contracting National Executive for Bank of America’s Government Contracting Group. I’ve been with the bank for 24 years, following 14 years with Uncle Sam’s army. I quickly realized I spoke the language of FAR and DFAR and leveraged that, being in Tampa, surrounded by government contractors at Socom and CENTCOM. I found there was immediate rapport and connectivity based on service, and I decided these were the clients I wanted to bank. We’ve talked about this before—the mission focus is about taking care of soldiers, sailors, Marines, airmen, etc.

Michael LeJeune (01:08) Yeah, absolutely. I think your story would be incomplete if we didn’t go back to the beginning and talk a little about your military background. Can you share some of that? What led to your transition into business banking?

Edward (01:34) Sure. I started out in 1986. I joined the army from the Virgin Islands, where I grew up—well, you don’t really grow up there, you just age. But I joined the army, went to Fort Lost in the Woods, Misery, a.k.a. Fort Leonard Wood. Then I ended up at the Defense Language Institute in Monterey, California. I was supposed to be in a German class, but the army said, “We have an opportunity for you to go to Russian school,” and that’s where I ended up, even though I wasn’t too keen on it at first. It turned out well, though. There was a young lady in the class who was studying Russian, and I was basically studying her. Fast forward 37 years, and we’re still together with seven kids and seven grandkids.

Michael LeJeune (02:37) That’s awesome!

Edward (02:52) Yeah, it worked out. Toward the end of my Russian class, I actually met the new German commander, and he invited me to stay and take German. So I had the opportunity to study both languages back-to-back, which is rare. I even got to visit Berlin before the wall came down, working as a human asset. After the wall fell, I was reclassified and transitioned into military police, but because of my background, I ended up with special duty assignments.

Michael LeJeune (03:19) That’s fascinating! There’s probably a whole podcast just on that part of your life.

Edward (03:46) Yeah, it’s quite the story. I did some time in Puerto Rico as a counter-terrorism specialist, ran the Army SWAT teams, and even completed sniper training. I had an amazing sergeant major who supported me in getting all the training I wanted, even if it didn’t align exactly with my MOS. I went to sniper school at Fort Benning, where I was the only one without a Ranger tab, but I learned a lot hanging out with Rangers for six weeks.

Michael LeJeune (04:12) That makes total sense.

Edward (04:12) It was a great experience. I later did presidential security, deployed to Bosnia, and spent time in Germany, which was fantastic since both my wife and I speak German. Eventually, I ended up at CENTCOM at McDill Air Force Base, where I worked as the NCOIC for General Zinni, the Marine general, who was an incredible leader. I learned more in three and a half years with him than in most of my life. General Tommy Franks and Sergeant Major Jack Tilley were also there, three of the greatest military leaders in recent years, and I just soaked it all in.

Michael LeJeune (05:43) Wow, that’s incredible!

Edward (05:53) Yeah, it was an amazing experience. Those years really shaped my leadership focus. It also solidified my “why”—supporting soldiers by ensuring they get the resources they need through industry partnerships.

Michael LeJeune (06:46) That’s fantastic. And thank you again for writing the foreword for my book. I really appreciate it.

Edward (06:50) It was my pleasure.

Michael LeJeune (06:59) So, what skills or experiences from your military career were instrumental in your transition to business banking?

Edward (07:13) In the military, we talk a lot about soft skills. Whether you’re an E1 or an O10, you learn leadership and how to engage with diverse people. You learn to adapt and connect with others because everything is mission-focused. In business, those same skills—building relationships and navigating systems—are crucial. I always say, if you can navigate the Army, you can navigate anything. That ability to connect and adapt is what I’ve carried over into the business world.

Edward (07:57) In government contracting, it’s all about relationships and reputation. Building strong relationships—those that are culturally aligned, not just based on capabilities—is essential. You need to have the same vision for what you're doing, not just the technical skills to get the work done. Right now, I spend a lot of time with four-star generals, leaders of countries, and high-profile folks. That ability to speak plainly and create dialogue with decision-makers, whether in large companies or small ones, is crucial.

Michael LeJeune (09:04) Absolutely.

Edward (09:28) At the bank, we do a great job of taking care of the "generals"—we're the lead bank for 82% of the large primes like Raytheon, Lockheed, and CACI. But my focus is on taking care of the "privates." As a former platoon sergeant, I want to help small businesses navigate the complexities of government contracting, just like I would guide my platoon.

Michael LeJeune (10:12) You’ve touched on your mission to provide services to ensure the end user gets what they need. From your perspective, what are some of the unique financial challenges government contractors face?

Edward (10:16) One of the first things I noticed is that small business government contractors have unique challenges. There’s more regulatory oversight, more "do's and don'ts," and from a financial perspective, many contractors are trying to grow quickly but lack the necessary capital. Often, they need funding to support the growth, but the timing and regulatory challenges can make it difficult.

What I’ve done is create a comprehensive understanding of the various issues contractors face, not just from a financing standpoint but also in areas like audit compliance and cybersecurity. I took the time to educate my team internally so that everyone understood the full picture, not just the financials. I even wrote the policies at the bank for government contracting for small businesses.

Michael LeJeune (12:10) That’s impressive.

Edward (12:18) Thank you. But sometimes the timing isn’t right, and I have to say no. New companies that win their first contract often need funding, but banks are all about mitigating risk, and it’s not always possible. That’s where relationships come in. I work to connect clients with the right partners to meet their immediate needs, and then we transition them into traditional financing as their business grows. It’s about stacking capital throughout the life cycle of the business.

Michael LeJeune (14:01) Right.

Edward (14:18) I remind government contractors that I’m the most regulated person on this call as a banker. It’s all about risk mitigation. Sometimes people don’t think about the layers of capital needed over time, and I try to educate them on the different sources of funding available at various stages. It's a journey.

Michael LeJeune (14:27) Exactly. And I always tell people, when you're dealing with government contracting, you can’t just go to a typical banker. Even if they already bank with a certain institution, they might not understand the specific needs of government contractors. It’s crucial to have someone like you who understands the industry.

Edward (14:30) Absolutely. People often don’t realize there’s a specialized team within the bank that focuses on government contracting. Whether it’s your lawyer, accountant, or banker, you need folks who understand the unique challenges of this industry.

Michael LeJeune (15:58) That’s true. I’ve seen so many people make the mistake of relying on traditional professionals who don’t understand the specific needs of government contractors. It’s a different world, and you need experts who can guide you through it. Are there any other common mistakes you see that government contractors should avoid?

Edward (15:58) Yes, there are a few. One of the biggest things I talk about is having the right "outside employees." These are your key service providers—your banker, CPA, attorney, insurance person, etc. If your outside employees don’t understand the industry or can’t connect you with the right people, you’re missing out on critical opportunities. They should be able to help you navigate and build the right relationships.

Michael LeJeune (17:34) That’s a great point. Having a team of service providers who understand the industry is a game changer.

Edward (17:34) It is. And it’s not just about having the "best" lawyer or banker—it’s about finding someone who is connected to the industry and understands how to navigate it. It’s all about dot-connecting.

Michael LeJeune (17:34) Exactly. That’s where the magic happens. When you have people who know how to connect you with the right folks, it opens up so many doors. I know that’s how people see you in the market.

Edward (19:04) Yes, and that’s why I always add value first. I’ve found that if you add value without expecting anything in return, it always comes back to you eventually. A few years ago, someone told me they read The Go-Giver and said, “This book is about you! Every time I talk to you, you’re giving me something and never asking for anything in return.” That’s how I approach it—why wouldn’t I take five minutes to help someone if I can?

Michael LeJeune (21:17) That’s the foundation of what makes your team special. It’s about giving first.

Edward (21:43) Exactly. It’s the basis of what we do. Krista, who’s on my team, has been with me for years, and she didn’t have a military or government contracting background. But after working with me on some deals, she realized these were the best clients to work with, and she jumped right in.

Michael LeJeune (21:43) She’s fantastic. I had her on the podcast too.

Edward (21:47) Yes, she is. And when I started the government contracting group at Bank of America, there wasn’t one. I told my boss, “We will have a GovCon group,” and built it from scratch. Now we have a team of nine, including traditional bankers, former contracting officers, and others who understand the intricacies of the industry.

Michael LeJeune (24:12) That’s amazing.

Edward (24:12) We’ve created a team where each person has unique skills that complement one another. For example, Tony, who sits in DC, is an incredible BDO guy, and the rest of the team consists of former contracting officers who understand the FAR inside and out. When clients have questions about government contracting, we can provide answers quickly.

Michael LeJeune (25:37) That’s invaluable, especially for small businesses.

Edward (25:37) It is. And we don’t just help our clients—we help anyone who reaches out to us. It’s about adding value first. Some companies have never banked with us, but they’ve sent us 100 referrals because they know we understand the industry.

Michael LeJeune (26:27) That’s a testament to the culture you’ve built on your team. I always tell people that your team doesn’t feel like bankers—they feel like people you want to work with. That’s something small business owners need to understand about building relationships in this industry.

Edward (26:49) Exactly. It’s about creating a culture of giving and helping people. That’s the core of what we do. And honestly, it took me almost two years to get the bank to approve hiring people who weren’t traditional bankers. But I knew we needed subject matter experts who understood the industry.

Edward (28:52) Once I got approval, I went through 36 interviews to find six people who had passion, personality, and a commitment to the mission. I wanted people who could build immediate rapport and who had the same “why” as I do. I remember one of the team members, Erin, who’s a former contracting officer, said during her interview, “Let me get this straight. Everything I’ve always wanted to tell a small government contractor but couldn’t, you’re going to pay me to do that?” I said, “Yes, that’s exactly it.” It’s about finding like-minded people who want to serve others and give back.

Michael LeJeune (30:40) That’s amazing. It’s so simple but so powerful—just help people, and everything else follows. I know it’s made a huge difference for your clients.

Edward (30:56) It has. And I get people all the time saying, “Thank you for your time today.” I tell them, “It was 10 minutes. Of course, I’m happy to do it.” It’s such a small investment of time, but it can make a huge difference in someone’s business.

Michael LeJeune (31:27) Yeah, it’s about being in it for the long game. The government moves slower than anything else, and government contractors often move at the same pace. You have to take your time, build relationships, and be patient.

Edward (31:47) Exactly. And that’s one of the hardest things for people to adjust to, especially those coming from the military. You go from moving at 125 miles per hour to 5. In the military, you’re always going full speed ahead, and then suddenly, things slow down. It took me a while to adjust to the pace at the bank. I had to learn to slow down.

Michael LeJeune (32:15) Yeah, that’s a big shift. I think a lot of new contractors don’t realize how slow things can move in the government space.

Edward (32:24) Absolutely. In the military, we used to joke, “Hurry up and wait.” The government can be like that—waiting for months, and then suddenly, everything happens at once. It’s all about being flexible and ready to move when the time comes.

Michael LeJeune (33:31) Exactly. You’ve got to be ready for anything. You might think something is going to happen quickly, but then it gets delayed by months or even years. I always tell people, “When the government says they’re moving fast, that could mean this Friday, or it could mean a year from now.”

Edward (35:07) Yeah, you never know what’s going to happen. The ability to be flexible is key in government contracting. One minute you’re waiting, and the next minute everything is in motion. Being able to roll with the punches is crucial.

Michael LeJeune (35:28) Exactly. You have to stay calm and be ready to go when the time comes. Let’s wrap up by talking about the banking side of things. Are there any trends or changes you see coming in the next few years that government contractors should be aware of?

Edward (36:33) One of the biggest things I’ve been talking to clients about is CMMC (Cybersecurity Maturity Model Certification). I’ve had clients ask, “Why is the bank asking me about CMMC?” Well, if the government says you’re not meeting cybersecurity requirements and pulls your contract, you can’t pay us back. That’s why we’re asking about it, and it’s coming. More and more, it's becoming a requirement, and I’ve been coaching clients for five or six years on this.

Michael LeJeune (37:25) That makes sense.

Edward (37:25) It’s something we’ve been incorporating into our policies at the bank. Even though the requirements are still evolving, we want to know if our clients have started taking steps toward compliance. From a financing perspective, I explain to our team that a company that has invested in becoming CMMC-compliant is actually setting a foundation for the future, even if it means they make a little less profit today.

Michael LeJeune (38:11) That’s a smart approach.

Edward (38:22) It is. And beyond cybersecurity, there are other compliance issues like environmental requirements that will continue to evolve. The good news is that often, the government is requiring these changes before we even have to ask for them. But it’s important for government contractors to be forward-thinking and prepared for these changes.

Michael LeJeune (39:21) That’s great advice. What else do you think is important for contractors to know as they look ahead?

Edward (40:08) I’d say the most important thing to remember is that what got you here today won’t get you where you need to be tomorrow. You have to be adaptable, keep growing, and change as the market changes. Whether it’s complying with new regulations or finding new ways to finance your business, you have to be willing to evolve.

Michael LeJeune (40:24) Absolutely. Everything we’ve talked about today applies to any business, not just government contractors. But before we wrap up, I want to touch on something more personal. You’ve been married for 37 years, have seven kids, and seven grandkids. You’re constantly traveling and working hard. How do you balance the demands of your job with your personal life?

Edward (41:07) That’s a great question. Honestly, it’s something I’ve thought about a lot recently, especially as I’ve been building my team. One of the things I’ve realized is that it’s not about work-life balance, but life-work balance. You have to set your priorities. For me, it’s my faith, my wife, my kids, and then my job. If you’re happy in life, work becomes just something you do. And when you love your job, like I do, it’s even easier to find that balance.

Michael LeJeune (42:52) That’s a great perspective.

Edward (42:52) It really is about remembering why you do what you do. If you remember your "why," everything else falls into place. For me, it’s about supporting soldiers and their families. That’s my “why.”

Michael LeJeune (43:48) You’ve always struck me as one of the happiest people I know. You’re always smiling, always willing to help, and you just seem to have it all together. I wanted to share more of your story today because I think people need to know who you are and why they should work with you and your team. It’s been a pleasure working with you and getting to know your whole team.

Edward (44:33) Thank you, Mike. That means a lot. We’ve always had a great partnership, and I appreciate the opportunity to share my story. I’ve got an amazing team, and they’re a reflection of the culture we’ve built together. We’re all focused on the same mission.

Michael LeJeune (44:59) Absolutely. It’s all about that shared mission. And for me, working with people like you and your team, it’s more than just business. It feels like family. I know we’ve got more to come, whether it's podcasts or joint events, and I’m looking forward to it all. Thanks again for joining me today.

Edward (47:30) Thank you, Michael. It’s been a pleasure.

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