Skip to content Skip to left sidebar Skip to right sidebar Skip to footer

Tag: tech

Tech is hot!

While tech procurements have been on the rise over the past several years, COVID most definitely fueled the flame. According to data from an analysis by Jeff Cook, managing director at Shea & Co., third-quarter 2021 tech deals hit nearly $2.2 billion. With much of that activity from strategic acquisitions. Government Technology, January/February 2022

The new year will likely see both large and smaller acquisitions continue with all being potentially significant. Cook expects, “the acquirers who’ve been active will continue to be active.” (ibid)

Apart from acquisitions, other factors have also fueled the growth. Although there is an abundance of bureaucracy in the government, the government is a stable source of sales and returns. While other areas of the economy may slow, the Government, both local and federal, will continue to operate. This coupled with the need to constantly update their tech requirements make the government a top contender for igniting tech growth. (ibid)

Another factor is the move toward cloud computing and software as a service. Google Announced in November of 2021, the launch of a cloud-based “sandbox” named RAD Lab. It is an instrument public agencies might use to test and develop their specific tools. As an added perk, Google provides support in a secure environment. (ibid)

Surveys of both cities and counties by The Center for Digital Government’s, in 2021, show greater movement to the cloud. Approximately one-third of cities report that about 30 percent of their systems and applications reside in the cloud. County migration is about 26 percent. Therefore, while movement is toward the cloud, there is an opportunity there that has yet to be tapped. (ibid)

Google is not the only game in town. Amazon is looking to take a piece of this market, as well. This shows how big tech is looking to add to their revenue from the gov tech space. (ibid)

According to Stewart Lynn, a partner at Serent Capital who leads gov tech practice, “many private-sector folks are finding new roles within government and have understood that the current systems in place are very antiquated and in need of an upgrade. As citizens have become more active online, you’re seeing governments being responsive to their citizens’ needs. Citizens today want the ability to go online and buy their permits, process their payments, understand what’s going with budget spending. And governments are responding to that demand by investing in digital solutions.” (ibid)

As with all new growth, comes a few hurdles and grey areas. According to Rita Reynolds, chief information officer for the National Association of Counties, “government technology vendors must be willing to update their terms of service and contracts to accept their responsibility and ensure that baseline essential security practices are in place to secure what they are hosting and providing to counties.” (ibid)

For counties, states, and the federal government, there’s a need for some flexibility within the procurement arena. An updated acquisition process and partnering with the private sector will go a long way to make this a win-win for both the government and vendors.

Trying to break into the government contracting arena? Give us a call.

Small business and startups are front and center

Boosting small businesses and software for DoD are priorities for the Biden administration and their nomination for the Defense Department’s technology efforts.  Heidi Shyu, nominated for undersecretary of defense,  recently introduced her priorities to modernize the military during her confirmation hearing. She stated, “In order to rapidly transition the latest software, we need to have an open architecture that isolates the software from the hardware then allows rapid user testing.” (Defense Systems May 26, 2021)

Shyu told the senate that DOD should be investing so that development and procurement are 70% of their costs for a new weapons system. Shyu proposed buying more emerging tech such as artificial intelligence, synthetic biology and hypersonics rather than investing in older systems. Shyu said, “today, sustainment makes up 70% of total weapon system cost, with development and procurement making up 30%.” (ibid)

During Shyu’s hearing, she mentioned small businesses, especially startups working on new technologies, repeatedly. Shyu feels they are necessary for the Defense Department’s success. Shyu did not lose sight of the inability of the acquisition system to shift prototypes into programs. Shyu plans to institute a clear transition path. (ibid)

Shyu said, “part of the reason there is a valley of death for technology is that a lot of the technology programs are being developed by small companies, and unless you had the foresight two years ago to understand that the technology is going to be mature within two years time, by the time you get the money to buy that technology it’s two years old now.” (ibid)

Shyu said, “I saw a six-person company that’s developed any type of fuel as input and the output is a DC-plug. Those are the types of creative, innovative companies we need to nurture. And they are struggling to figure out who to talk to in the DOD.” (ibid)

Are you an innovator or a small business looking to work with the Department of Defense? Give us a call.

 

 

 

 

Matchmaking Money

The Department of Defense (DoD) is concerned that Chinese firms investing money into U.S. tech companies could provide the Chinese with a military advantage. A new effort to counter this effect, called the Trusted Capital Marketplace, is launching in upcoming weeks. At least 50, generally small, innovative tech companies without the sophistication to obtain capital seem to  fall under this umbrella. The Trusted Capital Marketplace will match these companies with capital investors, circumventing the “red tape” they’d normally go through to obtain the much-needed capital. (Government Executive, May 2019)

Over the next month, investment goals will be developed and put in place. The current plan is to set up a website infrastructure where providers of trusted capital can aggregate with those businesses looking for capital. (ibid)

Back in October of 2018, the Pentagon said they would invest in domestic manufacturing in an effort to keep the U.S. from relying too heavily on Chinese and other foreign made parts for American weapons. The next month,  Commerce officials released a list of “specific emerging technologies that are essential to the national security of the United States,” with the desire to keep these technologies based and “backed” by U.S. companies. The infrastructure should be in place by the end of June for these companies to receive the capital they need to work with DoD.

Questions about the Trusted Capital Marketplace and how your firm can obtain much-needed capital? Give us a call at 301-913-5000.