Defense Market Case Studies

U.S. Market Entry Research (for non-US company) Electro-Optical Product Offering

A leading non-U.S. company specializing in precision electro-optical components for high-performance IR defense systems required detailed research to assess and measure the size of the addressable and available market; particular applications, specific programs; timing of the available market; amenability of current programs to consider another player in the market; major technology trends impacting product acceptance; key procurement targets; major advantages and disadvantages company faced compared to US incumbents.

STS conducted in-depth research with decision makers at system and subsystem levels, showing each comparative performance parameters. STS also probed product advantages, offshore source issue (ITAR, etc), price-cost performance, stage of program, and competition. STS determined which platforms and systems would prefer this offering. A "narrowed" addressable and available market size was calculated (units and timetable). This covered missile warning, surveillance, aircraft IR sensors, ground vehicle/soldier IR Sensors, UAV IR Sensors, and standoff chemical IR Sensor applications.

Client was able to accelerate its annual sales plan target selections by 60 days, as well as engineer better informed, fact-based, tactical decisions on U.S. market expansion, greatly improving (+10%) its sales in this particular opportunity area.

New Market Opportunity Assessment-US Military Aircraft-Sustainment, Upgrade and Retrofit

Due to increasing emphasis on Sustainment initiatives in US DOD, STS client, traditionally a provider of component-level solutions to military platforms (transport/fighter/rotary and UAV platforms, ships, and ground vehicles) was vitally interested in identifying and pursuing opportunities for upgrades in legacy platforms.

STS reviewed client unique capabilities, developed mapping filters, and ran this against key procurements in the latest DOD P-1 budget. This yielded a short list of 35 high potential platforms where funding was already allocated or expected. STS further identified a series of key decision makers at both military bases/depot and contractor level and conducted direct research with these individuals on opportunities, requirements, timing, decision-making process, and potential interest.

A number of specific opportunities were identified, resulting in ten new strategic pursuits for client sales managers. STS analysis provided client with comprehensive, incremental insight on specific sustainment needs. This resulted in a several new contract acquisitions.

US DOD Facility Support Service Contracts-Market Assessment

A leading provider of Facility Support Services, Security Guard Patrol Services, and Fire Protection Solutions required a detailed assessment of its addressable market in US Federal Government Agencies (both Defense-related and Civilian), and Contractor facilities.

Client required data on: size of total addressable market based on annual spend (both prime and bundled M&O contracts), size of total addressable based on annual billed hours, breakout of market by clearances or no clearances (FOCI issues), size of market set-a-side for small business (by category), annual spend by department/agency (by large and small business), listing of contracts with expiration dates, and average billing rate/wage rates.

STS built this analysis based on published government contract data as well as in-house research, by shredding and sorting through multiple current, past, upcoming and recompeting contracts. This involved identifying and extracting out relevant content (estimated percentages and totals), determining program by program what was addressable and non-addressable. STS also developed a reasoned methodology to overcome a significant constraint in that facility support contracts are commonly “bundled”, as more than one NAICS code is applied as different services are contracted for within each contract.

STS organized its output into over 100 pages of detailed spreadsheets with sortable columns showing government agencies, programs, addressable content, projected timetable; addressable opportunities were scored high, medium, low, including an executive rollup summary of findings and conclusions. Client reviews were conducted at the 25%, 50%, 75%, and final 100% levels, allowing for client input as the larger picture took shape.

With the level of detail provided by STS on current and future opportunities, STS client was able to make critical decisions on opportunity pursuits and resource deployment, improving its success rate by over 50% compared to past sales and marketing plans. This also enabled STS client to clearly articulate and then secure corporate commitments for substantial resource investments.

Price To Win Analysis-Competitive Assessment-Military Communications Upgrade Acquisition

STS client, a top supplier and integrator of avionics systems for military platforms, was among three bidders to upgrade a fighter aircraft to enable it capable for Homeland Security missions. Although highly qualified, STS client was not the incumbent, but anxious to secure a strategic position on this F-class aircraft which could lead to positions on other aircraft upgrades in this domain. STS was hired 30 days prior to expected final RFP issuance to complete an independent competitive bidder analysis and bottoms-price to win analysis.

STS split its analysis into two parts: Phase One (pre RFP), and Phase Two (Post RFP). Analysis included a baseline buildup of expected Production and Development requirements across major and minor labor and product CLINS, calculations of WRAP rates across five job categories tied to bidder places of performance, and estimates of system (product buildup) costs for each bidder. This recognized advantages each bidder might reasonably leverage on higher value items based on known technology partners and negotiated prices from key suppliers. STS relied on resident market knowledge, industry contacts, domain suppliers, review of eight other relevant awards, industry day reviews, and other solicitation documents. STS built highly flexible electronic spreadsheets allowing for rapid “what if” changes as additional “heard on the street” input became available. Progressive, interactive reviews with client capture team allowed for highly comprehensive discussion and refinement as the process unfolded toward final proposal.

STS independent analysis gave this client keener insight, greatly reduced the time its internal investigation normally reqired, allowing it to prepare a more thoughtful, persuasive, and competitive proposal. STS client was successful, won this critical competition, and was awarded the contract. Client also learned its bid price did not leave more than was necessary on the table to win the award. Client management determined that STS custom approach, involving close coordination and discussion with internal capture team, was superior to an “automated calculator approach” utilized by many other consultants performing Price To Win analyses. STS client also went on to secure other strategic positions on similar aircraft platforms based on this pivotal win.

International (Foreign) Government Budget and Programs Analysis)-Opportunity Mapping-Military Communications

Leading US provider of communication systems and support services for Navy, Army, and Air Force platforms recognized it did not have a solid appreciation of short and long range program opportunities in key European countries (UK, France, Germany, Italy, Sweden, and Poland). MOD program and budget shifts, changing role of NATO, competitive inroads, and internal client personnel changes had all contributed to this lack of clarity.

STS personnel met with client subsidiary offices throughout Europe on three different occasions to review and coordinate research and assembled information. STS analyzed available budgets, requirements, and announced programs, assessing what programs and budgets would actually be competed, and what could be open to a US bidder. In total STS conducted fifty in-depth research surveys with program planners and experts at major MODs, defense contractors, and NATO offices.

Six-month project resulted in formal report presentation with extensive spreadsheet detail on program opportunities, relevant trends, and market size with competitive share. STS client was able to accelerate its strategic plan development by three months, thus enabling it to recover and get back on track with defined and supportable initiatives having an above-average chance of winning.

New Market Opportunity Assessment-Active Vibration Control-Military Applications

STS client, with specialized capability in vibration, noise and motion attenuation was seeking to broaden its product and service offerings to emerging US and foreign military programs requiring active motion control solutions. Target domains included aircraft, space, unmanned, ground vehicles, and ships.

STS completed a detailed spreadsheet listing the highest potential defense program opportunities calling for this requirement. STS also conducted surveys with a cross section of military program and defense contractor contact personnel to better understand technology needs. STS further identified and researched 15 prospective partners already actively involved in this market niche with which STS client might team as an entry strategy.

Client completed its strategic assessment 90 days ahead of original expectation, and brought in three new contracts within its first year of selling as a second source, ultimately building a sizeable niche business in this fast-growing and high margin area.

New Market Opportunity Assessment-Smart Actuators and Motors for Precision Guided Missiles

STS client, with unique capabilities in actuator and motor solutions, was concerned it did not have sufficient understanding of emerging opportunities in the PGM (precision guided munitions) area related to aircraft, missiles, unmanned air vehicles (UAVs), and other platforms. DOD's changing missions, and enemy threats, were all increasing emphasis on PGMs vs. "dumb" bombs. These needed significantly different solutions, and improvements in actuation and motor technology were essential to PGM mission success.

STS segmented this highly dynamic market into primary and secondary flight controls, tactical missiles, UAVs, UCAVs, sub-munitions, and upgrades. Program spreadsheets with column headings which directly related to STS client program interests were assembled, all requiring extensive secondary and primary research input. This covered Air Force, Army, Navy, and Joint Forces programs across P-1, R-1, and O-1 accounts. STS final report included top recommended programs to pursue, and other critical information for immediate reference by client pursuit team.

Client was able to develop a broad pursuit plan within four weeks of STS final report presentation, almost six months ahead of what client internal staff felt was originally achievable. With this level of detail, and shortlisted programs identified by STS, client was able to readily establish sales priorities and implement a highly successful business development program.