1. © 2012 | All Rights Reserved | 805 King Farm Boulevard | Suite 300 | Rockville, Maryland 20850 | 301.231.6200 P | 301.231.7630 F | www.aronsonllc.com Transitioning from Subcontractor to a Prime Contractor May 3, 2012 Presented by: Hope A. Lane

2. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 2 Privity of Contract Guaranteed Share of Work Direct Relationship with the Gov’t Future Opportunity Identification Greater Profitability Control Your Own Destiny Top Reasons For Becoming a Prime Contractor

3. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 3 Marketing and Business Development

4. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 4 Sub Strategic Relationships with Primes Prime Small Business Liaisons “Meet the Primes” events Short-term Focus Prime Strategic Relationships with Complementary/ Competitors Feet to the Street at Govt Opportunity Identification Short, Mid & Long-term Focus Marketing and Business Development

5. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 5 Proposaling

6. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 6 Sub Flowdown FAR clauses Contribute to Technical Volume Past Performance Reference Key Person Resume Pricing Spreadsheet Minimal $ Investment Prime Understand RFP FAR clauses Form Propsed Team SubK RFPs Mgmt, Project & QA Plans Admin, Technical & Pricing Volumes Proposal Production Significant $ Investment Proposaling

7. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 7 Contracting

8. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 8 Sub SubK agreement Invoice to Prime Prime Subs - Source Selection, RFPs, Cost /Price Analysis, Agreements, Funding, Invoice Review & Payment Negotiate Contract/Mods Resolve Disputes in Performance/Payment Combined Invoice to Gov’t Contracting

9. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 9 Project Execution

10. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 10 Sub Provide Bodies Respond to Prime Questions Prime Manage Project Team Interact with Gov’t Program Office Resolve Disputes Performance Measurement (PPIRS) Project Execution

11. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 11 Client Relationship

12. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 12 Sub Primary Client = Prime Contractor Secondary Client = Government Customer Prime Primary Client = Government Customer Secondary Client = SubK Procurring Contract Officer (PCO) Administrative Contract Officer (ACO) Contracting Officer Representative (COR) Client Relationship

13. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 13 Reporting Requirements

14. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 14 Sub Provide Input for Prime’s Project Status Report Invoice to Prime Prime Periodic Status Reports Invoice to Govt SubContract Award VETS-100 Incurred Cost Reporting Requirements

15. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 15 Business Systems

16. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 16 Sub “Off the Shelf” QuickBooks Excel Spreadsheets Code of Business Conduct Prime Approved Accounting System Purchasing Estimating Code of Business Conduct Government Property Earned Value Mgmt Business Systems

17. © 2012 | All Rights Reserved | Aronson LLC | www.aronsonllc.com Slide: 17 Increased Opportunity Increased Risk – Truth in Negotiations Act (TINA), False Claims Act (FCA), Performance (PPIRS), Working at Risk Increased Costs – BD, Proposals, Infrastructure, Back Office Personnel, Cost Overruns Potential Increased Profitability Control Your Own Destiny Top Impacts of Becoming a Prime Contractor