Chelsea Meggitt | OTA (Podcast Transcript)

 [01:05] Richard C. Howard: Hey, guys. Richard here with the government sales momentum podcast. Today we have a very special episode. We are featuring Chelsea Meghan, CEO of collaborative compositions. Now, Chelsea has a very unique niche that we haven't actually talked about too much on this show, which is OTAs or other transaction authority. She goes in depth into OTAs and one of the methods that she likes to use when helping clients, which is making them part of consortium's, government consortium's. She offers some great information, a link to more information. We're also going to put a bunch of ways that you can reach out to her in the show notes. I really encourage you to listen to the entire episode. She does a great job working with small businesses. She believes they are the backbone of our economy. She secured a huge number of federal contracts for her clients and really offers some sound advice that I learned a lot and I think anyone listening to this podcast will learn from as well. She's got an MBA in leadership from the University of Washington, and she is a self proclaimed Husky for life. So dropping your seat belt and get ready. Here we go.

[02:18] Richard C. Howard: Today we have Chelsea Meggitt, CEO of collaborative Compositions. Hey, Chelsea. How are you?

[02:27] Chelsea Meggitt: I'm good. Hey, how's it going?

[02:29] Richard C. Howard: Good. Well, hey, Chelsea, just a little background as to why we're doing the podcast. I've seen you extremely active on LinkedIn and helping a lot of clients, especially small businesses, sell to the government. I know that's a passion of mine, both from the government side and I was in the DOD and now as a consultant, and whenever I see someone really doing a lot of good work both with small businesses and for the government agencies providing value, I love to get them on the show and talk about what they're doing and kind of what their niche is. So thanks again for showing up today.

[03:01] Chelsea Meggitt : Yeah, hey, thanks for having me. I really appreciate it.

[03:03] Richard C. Howard: Perfect. Well, maybe if you could give a little background on how you got into the federal marketplace and then maybe a little bit about your company now and how you're helping small and medium sized businesses.

[03:15] Chelsea Meggitt: Sure. Well, I've got the typical evolutionary tale of a career here, and I say I was born into federal contracting while most people weren't actually born into it. My parents started the company, a woman owned small business in my house when I was eight, so I was pretty much raised in it and was speaking acronyms since I could talk. Essentially, my folks were federal contractors on the big contractor side, raytheon Northrop Blockade. So they had that really substantial experience there that really allowed them to succeed in that federal marketplace when they started their own company.

[03:57] Richard C. Howard: Right.

[03:58] Chelsea Meggitt : So they actually started a woman owned small business, with my mother being the woman behind the woman on small business, and they won their first contract at the kitchen table for $13 million. Yeah, it was a pretty interesting start to my days since then. It was like, don't come upstairs in pajamas. This is an office now. But it's actually given me quite a lot of excellent experience in all facets of small business government contracting from the administrative side all the way through, contracts management, finance management, all the way through. Okay. How do you actually run and start a small business and get involved with federal contracting?

[04:43] Richard C. Howard: Yeah, it's interesting that you bring that up, that you were born into it, because I know on our side, if I start talking federal contracting, DOD, any of that, any of that stuff, it turns into acronym city. Right. And I know my wife and my family outside Cringe when me and either a counterpart in the federal marketplace or former military pal just start getting into it because it's almost indecipherable unless you've been hearing it for a while. So the fact that you were raising it, I think, gives you a distinct advantage over a lot of people and probably a lot of the small businesses you help that are just getting into it and are overwhelmed with all the information out there in the different language and the bar and everything else.

[05:25] Chelsea Meggitt: Oh, gosh, their eyes really glaze over if they don't know what you're talking about. And sometimes, I mean, that's half the battle, is really understanding what it is that they're saying just to figure out, okay, do I want to get involved?

[05:39] Richard C. Howard: Sure.

[05:40] Chelsea Meggitt: Just to start.

[05:41] Richard C. Howard: Yeah. I mean, when you look at how much money the federal government spends each year, and then you compare that to how few businesses actually even try or attempt to sell to the government, it really is disproportionate, and it can be pretty intimidating for A Small Business or Any business, frankly, to Jump Into That Space and to try to start understanding It. So I think what you're doing is really positive, both for the government and for the companies you're trying to help. Now. What made you decide to get into this business? You were born into it. Your parents did it. Your mom owned the business, kind of working with the government. But something must have resonated with you that kind of brought you into this.

[06:24] Chelsea Meggitt: Yeah. So I actually worked with their company for a lot of my career and actually helped them sell that business and was able to go get my MBA and actually learn a lot of the actual commercial side of business as well throughout my career there. Really? I started my business during the pandemic in the Throes of Things June of 2020. And the motivation was I really saw all of these small businesses that were so intimidated by just massive information and perceived barriers to entry in the government market that were failing because the commercial market wasn't there anymore. And immediately, all of their customer base fell away. And just like you said, the government is a real big customer.

[07:15] Richard C. Howard: Sure.

[07:16] Chelsea Meggitt: And the most reliable and probably the most sustainable customer. And they bought more during the pandemic than they bought pre-pandemic. So for small businesses to fail in the throes of it when they've got the opportunity to really succeed in government contracting with just giving a little bit of understanding, that's really where I saw the need.

[07:39] Richard C. Howard: Got you. Yeah, a lot of companies were looking to pivot, especially during the beginning of Covet. And It Makes Sense. I mean, the government is a completely new customer base. And I know a lot of companies that have started off with by maintaining their commercial customer base and now introducing the federal customer base and kind of moving forward that way. Some once they get the ball rolling, just completely pivot to the federal marketplace. Once they really understand that system. And I think with a little bit of focus and understanding, a lot of these businesses, both small and larger, can do really well. And you have some really interesting niches. We've obviously talked before we got onto the podcast here, but maybe if you could tell us a little bit about some of the more nontraditional ways that you like to help your clients in the federal marketplace. Specifically, we talked about other transaction authority. If you want to start with that, that would be great.

[08:37] Chelsea Meggitt: Sure. So basically, having grown up in this federal ecosystem, I grew up with the folks saying the government is the government. The Government doesn't Change. And about five or six years ago, I really saw some changes starting to sprout. And it was really some innovation that I was starting to see. People say, what if we don't use the bar? And what if we go outside of the bar? Which is the federal Acquisition regulation. If we go outside of that, do we have options, and what are those options, and are they more easily accessible to us? So OTAs other transaction authorities are actually one of those non far acquisition methods that's really sort of found a place near and dear to my heart, because it just really is so unique in what it offers both the participants and the government.

[09:35] Richard C. Howard: Also, if you're a small business owner and you're ready to develop a focused strategy so you can consistently win contracts in the federal marketplace in targeted agencies, I urge you to go to Richard C. Howard.com, fill out a consultation. Neither I or one of my associates will talk to you about the products and services that you offer and what we think your best approach to the federal marketplace looks like. Okay, now onto the show. Yeah. No, I agree. Now, I think I told you before, I actually haven't spent too much time focusing on OTAs. And whether we're doing podcasts or marketing or just talking with our clients, one thing that I do have some experience with is broad area announcements, and that is certainly part of the OTA. And I also want to mention, while it's on my mind, you have a great slide deck that you put together that talks specifically to OTAs, which you have agreed to make available to anyone listening. So if anyone wants to receive that, certainly reach out to us. And I'm going to put everything in the show notes so you can contact both Chelsea and myself. Either of us can send you that, and that would be great. And I found it very informative as well. Just reading through that, maybe you could talk a little bit more about the specifics with OTAs. What part of that do you like to work with? And then I could certainly tell you what my experience has been, especially using broad area announcements.

[10:55] Chelsea Meggitt: Sure. So basically, I probably should start out with when people think other transaction authorities, we've probably all heard it's defined by what it's not, which is just absolutely not helpful for pretty much anybody who's trying to figure out what they are. And in reality, it comes down to the word transaction. So if you think about it like as any other commercial transaction that you have, you're buying a car that's not necessarily you're not going into a long term contractual agreement with your car dealer. You're just going to buy a car. So you go, you get the car you want, you pick out everything you want to add it on, and that's the transaction. You drive off a lot and there you go.

[11:36] Richard C. Howard: Right.

[11:36] Chelsea Meggitt: So it's simple in that term. And that's where I like to make sure people are sort of aware of what we're talking about. Now, it isn't a contract. It's not a far based contract.

[11:48] Richard C. Howard: Right.

[11:49] Chelsea Meggitt: And that's really why I like it. So typically the Far is it's a very long burden, like it's burdensome process and it takes a lot of overhead funding, it takes a lot of effort, it takes absolutely clean understanding of what it is the requirement is and what the customer actually wants. And it just takes so long to get anything done. I mean, if we've got lead times of two years, what are we going to do? And no small business can work on a lead-time of two years. That's not right.

[12:24] Richard C. Howard: Right.

[12:24] Chelsea Meggitt: So these OTAs that are the other transaction authority was actually sort of broadened through DOD, I think in 2015 and it really has allowed DOD to take this concept and run with it. The most frequent way I'm seeing that done is via consortium.

[12:45] Richard C. Howard: Yeah, it's interesting you point that out. I have a few clients right now interested in this is 2021, beginning of September, that we're recording this. So the Advanced Battle Management System program has just released basically a consortium. I never know how to pronounce that, but basically bringing some companies together to dictate and help the government with how they're going to go through the process, it is something we're seeing more and more. Maybe you could describe maybe how you've used that in the past and why you think it's beneficial.

[13:17] Chelsea Meggitt: Sure. So I think traditionally the government is not, I don't think, to any fault of their own moral fault of the bar. They're inaccessible. And so getting to talk to the government customer throughout the process of the acquisition is not something that far really allows for at all. And so it's kind of been trained throughout the acquisition workforce. Now there is essentially unlimited access via a consortium. And when I say that, the way that consortium's work is the government will solicit a requirement for a consortium management firm and that firm is the intermediary between the government and the consortium members. So the companies that are members in that consortium now that gives a financial incentive to an intermediary to force the government to interact with you.

[14:16] Richard C. Howard: Which is different.

[14:17] Chelsea Meggitt: Yeah, I mean it's hugely different. It's entirely legal, it's all allowable and it's all throughout the process. There's really no period where they say, okay, so sorry, you can't talk to your customer anymore, no more communication and it's unlimited throughout the process. So that's really where I found there's a ton of benefit is the access that you are able to get and the conversations that you're really able to have with the customer. And I really see requirements being shaped in a way like they, I feel were back in the big boom of the early two thousand s and really starting to get some customer input into some of these solutions that are being delivered.

[15:02] Richard C. Howard: So when you're looking to help a customer in that way, are you looking for advertised consortium ways to get into one on existing programs? Are you actually going out and finding a government customer and suggesting, hey, you might consider putting this together. What would you suggest to somebody listening to this? If they have a particular effort with the government or the DOD that they're interested in, how would they either suggest a consortium or should they be looking for it already as far as like RFP, RFI on Sam.Gov, something along those lines.

[15:37] Chelsea Meggitt: So with the consortium's, the original solicitation is for the consortium. It's not for the companies that are looking to work on the opportunities that come through the consortium. So you wouldn't be finding the RFIs for the opportunities that come through the consortium on Sam.Gov or on CPORT or any of these other Mac contracts that you might have or any of these portals that you might typically have access to that's because most of these consortium's are run by basically a pay to play methodology. There's a list of them, it's constantly growing. Meter does a really great job of keeping that list up to date and I can provide a link to that. Basically they set up a consortium and it's approximately $500 on annual. That's pretty much the average cost I've seen to be a member. And the consortium's are typically topic area focused or area focused, technical area focused. So when I've got clients that are for instance, I've had a client that works in automation and robotics. Now all the services have some sort of automation and robotics effort going on and most of them have a robotics focused or a mobility focused consortium already existed and open to folks who have $500, which in the grand scheme of federal contracting overhead dollars is not a whole lot that's open to you to join. So once you join that, you get access to all those opportunities that come through that focused technical area.

[17:32] Richard C. Howard: That is interesting. So your experience with these consortium's is that a lot of those opportunities aren't going to the sam.gov, they're not going to get sent to the GSA schedule holders, they're only going to be available to the people within the consortium. And who comes up with those opportunities? You mentioned one company kind of manages it's almost a go between the government and everybody that's in the consortium. Is this something that that company works with the Federal stakeholders, program manager, contracting officers and they're feeding them different efforts? Or does the consortium have a say in kind of what the government is putting money towards?

[18:12] Chelsea Meggitt: So the money, first of all, the money is all different colors and it comes from the government. So it's not from the management firm, but it comes through the management firm who allocates it out. The topic areas and the opportunities that come out are based on problems statements. Now I don't know if you've had a whole lot of experience with problem statements with the government, but some of them in the past haven't been quite clear and maybe the problem wasn't necessarily defined adequately right the consortium management firm really has a role in helping the government clarify and really sort of break down and explain some of these problem statements further. Now, it's not that they're planting any seeds. They've got no dog in the spike. It's really that they are trying to help the government speak a more commercial sure.

[19:13] Richard C. Howard: Language that makes a lot of sense. I know. Just going back to on the Air Force side, when I was a program manager there, one of the big things we were challenged with is how do we grab kind of the best, the latest and greatest technology, the most innovative companies that are out there that don't work with the government? Because frankly, the big companies, although from time to time they come up with something great, a lot of the new, most innovative stuff resides with the startups and the smaller businesses out there and a lot of them had no idea or never even thought of working with the government. So obviously, as you know, there are a lot of programs out there to kind of help those companies work with the government. This is one of them and I think that's great. I mean, really, anything we can do to help a company shape some of that. And also in the government, a lot of the, I'll speak to the DOD because that's where I come from. What I tell my clients is your contracting officer is not the expert in automation. I'll use that since you brought up one of your clients. Right. They're the experts at putting companies on contract for the government. Right. The program manager, he might be an automation program manager, but he could have been a cyber security program manager last week and he could have been buying hammers and nails a week before or flying airplanes. Right. Because they make changes very often. So a lot of times the government relies on the businesses out there to help them shape requirements and that's what gets lost, I think a lot of times when a company is trying to sell, they don't realize just how much influence they can have in requirements that come out on solicitation and this consortium is a great way to do that. I think that you have a really interesting niche and not many people focus on that. So maybe you could tell us a little bit about how you help the client. I mean, you don't have to give the name or anything, but in generalities as you can, how would you help a client through that consortium model?

[21:02] Chelsea Meggitt: Sure. So I would just like to use an opportunity that I've worked with out of consortium previously as an example here there was an opportunity in which the government specifically asked we've got sort of a general sense as to we've got problems, but we want you to tell us what you think they are and what you think your solutions are. And they called it an open season event and I thought it was entertaining. But basically they asked for businesses, all businesses through this consortium, to fill in an Excel spreadsheet, 250-word max per cell, like six cells with a Rom, not a lot. And you could submit as many ideas as you wanted and those ideas were sorted through and some of them were accepted and others were put in a basket, which means they could be funded anytime in the next two years.

[22:06] Richard C. Howard: Sure.

[22:08] Chelsea Meggitt: The opportunity to really help shape those requirements really are there. So really and where I've helped my clients understands which consortium's you want to join. Duplicity and government is all too common, as you know. And so I'm not going to be the first to say let's go suggest more consortium's. Let's just first see and check if there's one that applies to what it is that you want to do or your line of business. And then we really look at, okay, how much money is flowing through that consortium. And most of them do a pretty good job of reporting awards and funding. They've all got pretty good annual reports they give out and they all do quarterly industry days. It's really easy to get a good sense as to, okay, is this going to be worth my time? Is there a lot of activity happening with this consortium or has it kind of been low activity over the past year or whatever? And then we really say, okay, let's join it. And what that means is basically filling out a membership form request and signing an agreement that says you're not going to breach this member consortium. It's 250 prorated for half the year if you join late. So there's really no reason not to join me. Right, and join all that you feel that you might have a tie to because it's such a low cost of entry to join these things. And really then it's making sure you're utilizing the ecosystem that's provided by these consortium managers. They really do great portals, they have great teaming resources, directories, and they really do a great job of facilitating communication between not only members, but members and government. So it's really helpful to really get involved and once you're in, it just kind of sucks. You in the defense supply chain.

[24:22] Richard C. Howard: Yeah, that's half the battle. And I'm sure that resonates with a lot of people listening because one of the major questions I get from clients, even if they've been in this space for ten or 15 years and whether they're struggling or they've been doing pretty good, how do I even create the relationships with the program managers? Like you said, a lot of times you can't just knock on the door of the person of the program manager or contracting officer because you can't even get onto the base. Right, so how do you even create that? How do you even find the people that are making those decisions? And it sounds like your experience with the consortium is they actually help you with some of that. Creating those communities, creating those events where you can go and meet probably, not only other businesses that you can team with, but the decision makers, the requirement generators, maybe the program managers, contracting officers, depending on the consortium and the events that they're having. Those are all extremely powerful ways for a company to create those relationships, which for me, my experience has been at the end of the day, a lot of government sales is a relationship game. And how do you create those upfront? This is a great way to do it. You also mentioned funding, which is I just wanted to give a note. Very important to ask that question is the effort that you're interested in, is it funded? Right. It usually starts with a requirement, then you can have all the requirements in the world, but the funding isn't there to support that. Then there's not going to be a contract that makes sense for your company. So sounds like you can answer all of those questions with a good consortium.

[25:49] Chelsea Meggitt: Absolutely. I would think that all of those could probably be addressed with one good consortium.

[25:55] Richard C. Howard: Yeah. That is amazing. Chelsea Meggitt, CEO of Collaborative Compositions you provided a ton of insight here as far as OTAs are concerned and just I think in general, some of the things that you need to think about as a small business. I know that a lot of people listening are going to be extremely interested in how to reach out to you. I'm going to put a bunch of links in the show notes so they can get to you. Is there anything that you wanted to say before we leave? Did you want to direct them any place in particular or any efforts that you have going on that you'd like everyone to know about?

[26:27] Chelsea Meggitt: I would just say there's bound to be an increase in OTA activity over the next year and now is really the time to start looking at where you want to put your eggs. So, yeah, just definitely reach out if you're interested.

[26:41] Richard C. Howard: Awesome. Well, I agree. Also look out for that link that Chelsea mentioned here.

[26:54] Richard C. Howard: Hey, guys, Ricky here and hope you enjoy. Thanks, everybody for listening. Thanks very much. If you're interested in selling products and services to the Department of Defense, I have something for you that you're not going to find anywhere else in the world. The team and I created a program that takes everything you need to win defense contracts and put it into one place. Up until now, only large defense companies and a small amount of people in the know have had access to how products and services are really sold to the Department of Defense. I've taken all of that information and put it in a step-by-step training module that shows you how to consistently sell to the US. Military. If you join our membership, not only do you get the model, but you get weekly sessions with former DOD acquisitions officers for training, guidance to answer your questions, and a community of like minded business owners that want to partner on different opportunities to bid for subcontracting and teaming, or just to discuss general strategy on how to sell to the DOD. You have access to every course I've created, every coaching session I've ever recorded in every interview with an acquisition professional that I've ever conducted, and we cover topics that range from defense sales planning and competitor analysis to SBIR and STTR foreign military sales list goes on. Go to Dodcontract.com if you are interested and I would love to see you in the membership. Thanks.

If you enjoyed this episode, you can also check out my interview with expert Brandy Foster on Proposal Writing to get some tips on what to focus on when writing proposals for government contracts and federal grants.

You can also reach out to us here if you have any questions and we will get back to you as soon as we can.