Negotiating while standing on your mission

By David A. White / DISA Acquisitions?

The phrase "one team, one fight" is one I constantly heard during my tenure as a civilian working for the UNITED STATES DEPARTMENT OF THE NAVY . This mantra was even inscribed on a coin a rear admiral presented to me, recognizing my contributions. In that environment, "one team, one fight" encompassed all — active duty, civilian and contractor personnel — united under a single mission: to protect our troops, attend to their families, and support military readiness against potential adversaries. This principle extends to our industry partners.?

Over the past four years, I have collaborated with United States Department of Defense CIO offices and top IT industry providers, negotiating high-volume enterprise software licensing agreements to secure the best value for our warfighters. In procurement, the process is straightforward: the government posts a requirement, and approved industry partners respond with solutions. Guided by the Federal Acquisition Regulations, the DOD spends billions annually on IT hardware and software to support the warfighter.?

Today, we face a challenging financial climate. Federal defense funds are not increasing at a pace that matches the inflation rate of IT hardware and software providers. For instance, while the overall defense budget increased by 2.4% from 2023 to 2024, the cost of software is rising by over 8% annually. In the past, perpetual licensing allowed for better planning and cost saving, but the shift to a subscription-based model has strained budgets. Previously, consumers could pay $100 for ownership and an additional 25% for maintenance. Now, with the subscription-based model, they pay $100 in the first year, $120 in the second year, and increasing amounts in subsequent years. Furthermore, maintenance costs are on the rise, and Gartner estimates that by 2026, 50% of enterprise applications will separate support from existing subscription and maintenance costs to create additional revenue streams. These shifts have forced the government to reduce demand as it’s unable to keep pace with the rising costs of software subscriptions.??

The developers, engineers and research and development teams behind the software the DOD buys deserve fair compensation. At the same time, the government must work within its budgetary constraints.??

This situation raises a crucial question: within this financial climate, how can industry and the DOD partner together to succeed in the department’s no-fail mission??

Mission matters?

The DOD’s enduring mission is to provide combat-credible military forces needed to deter war and protect the security of our nation. It’s hard to think of a mission more vital than that.

Here are the missions of other prominent organizations:?

• Internal Revenue Service: Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and to enforce the law with integrity and fairness to all.??
• Walmart: Save people money so they can live better.??
• Coca-Cola: Refresh the world and make a difference.??
• University of Southern California: The development of human beings and society through the cultivation and enrichment of the human mind and spirit.??
• Department of Homeland Security: Ensure a homeland that is safe, secure and resilient against terrorism and other potential threats.??

While all these missions serve vital purposes, some have a more direct impact on public safety and national security. Notably, some IT industry partners offer greater discounts to academic universities and private institutions than to the DOD. However, many of the former generate substantial revenue through tuition, sponsorship and donations, whereas the DOD operates on taxpayer dollars and is not-for-profit. This cost model seems counterintuitive. When industry partners join forces with the DOD, they become part of the mission to deter war and protect national security.??

When the rear admiral presented the coin to me, I was working logistics at a naval hospital. She reminded me that even though I wasn't in the surgical room, I was contributing to patient care by procuring the right supplies and services at the best price. We all need to remember our role in the mission, and by providing cutting-edge technology and services at fair prices, industry helps the DOD successfully carry out its mission.?

An alternative perspective?

As a program manager who has had numerous price discussions with industry, I understand the desire for market value for providing goods and services.?

Outside my DOD role, I am a professional musician. When clients hire me, they benefit from my expertise, my professional equipment, music consultation and punctual service, all of which I expect fair compensation for. However, when my parents ask me to play, I often offer my services for free or at a significant discount. Why? Economically, they are on a fixed income determined by the government. More importantly, it's because of who they are and their mission — to protect and care for me when I couldn't do so myself. The DOD offers industry partners something similar - a guardian protecting them behind the scenes. By partnering with the department, industry can enhance this protection. "One team, one fight." ?