DWPA Staff, Author at Deep Water Point & Associates

October 2023 – Vol. 12; Issue 10

DWPA Staff on October 4, 2023

Tracking Federal M&A’s Fall Foliage

Along with the incoming vibrant foliage and brisk temperatures of the fall, federal M&A activity may have its own peaks with PE financing while feeling the cooler temperatures of uncertainty around FY24 funding and tighter budgets
Following our March Practitioner’s Perspective, which featured a forecast for 2023 federal M&A activity, we are closing out the government fiscal year by recapping our predictions and comparing them to deal count data
The buy-side continues to be driven by PE and PE-backed firms and in-demand tech talent, with buyers feeling warmer towards F&O business and opting to avoid majority-SBSA companies
Procurement delays are leaving some sellers out in the cold, while a tighter market makes a frosty forecast for “story” companies
Leaf peepers may be able to spot peak foliage for mid-tier acquisitions this autumn
While M&A activity has cooled down 2023 YTD compared to the same period in 2022, we expect the leaves to turn with increased volumes through the end of the year

The Turn of the Season

DWPA forecasted 2023 federal M&A activity in the March Practitioner’s Perspective. Now, as we enter the fall season and the government fiscal new year, it is time to reflect on the 2023 M&A atmosphere thus far and put on our weathermen hats again. In March, we forecasted that capital markets, private equity activity, technology trends, strategic acquirer activity, and a troubled geopolitical climate would stimulate more M&A activity. Conversely, we projected that higher interest rates and a looming debt ceiling, paired with procurement trends emphasizing Small Business Set-Asides, would cool deal volumes slightly. Heading into the final three months of the year, most – but not all – of our predictions hold true. Overall, transaction volumes were initially cooler than anticipated, with data showing a 21% decrease in closed transactions in the first half of 2023, as compared to the first half of 2022.

Buyers to Face the Cold

As temperatures drop, uncertainty looms over continued risk of a government shutdown and another interest rate hike, we expect buyers, particularly PE and PE-backed firms, to remain active in the market. As of March, we expected legacy consulting firms to remain the most aggressive buyers of scarce/in-demand capabilities to augment their existing federal IT portfolios. However, private equity (funds investing in platforms as well as acquisitions for platforms companies) has constituted the majority of deals closed in 2022 and continues to extend that lead in 2023. We also expected buyer strategy to be split between paying up for F&O businesses and stacking a few highly differentiated small businesses. This forecast was accurate, as many buyers are not willing to take on the risk of majority Small Business Set-Aside work. The hottest commodities have not shifted much since our last forecast—think DevSecOps, AI/ML, Low/No-code, and Cloud as the primary buzzwords, with bonus points for Cyber or Intelligence.

Select Sellers to Stay Warm Indoors

Less than favorable economic conditions (debt ceiling uncertainty, turbulent credit market dynamics marked by regional bank failures, etc.) have generally not deterred sellers from coming to market by any significant margin. However, select businesses will likely elect to stay indoors this winter. As for small businesses, the OMB’s increase in the small business revenue threshold size has already disincentivized SB owners from wanting to sell, as expected. As for 8(a)s, we do not expect the recently enacted social disadvantage narrative requirement to have any tangible impact on M&A activity, although 8(a)s that must submit new certifications will demand more due diligence from prospective acquirers. Generally, “story” companies that are not obviously attractive assets will be highly scrutinized in a tighter market and will likely wait a few years before trying the market. At a macro level, the chilling effect of procurement delays will continue to be felt – likely more by would-be sellers than buyers, as companies banking on that one recompete continue to wait out the cold.

Vibrant M&A Volumes to Come

We expect M&A foliage to become more vibrant through the end of the year. Specifically, we predict peak foliage for actionable mid-major assets in the market. We expect a resurgence in mid-tier acquisitions by PE platforms to keep warm through the winter. The historic trend of sizable, high-profile deals in recent years and the shortage of mid-tier contractors gives way to an increased appetite for mid-major assets for an autumnal cornucopia. Further, we expect continued PE and PE-backed platform interest in acquisitions through the end of the year. We also anticipate continued emphasis on cybersecurity and intelligence procurements into the new year. Finally, we will be avid leaf peepers when it comes to watching for a potential government shutdown and any impact on deal flow – could the government really move towards tighter budgets after 5+ years of good spending? We’ll continue to monitor the landscape.

Top 10 Drivers of M&A Activity in 2H23

PE interest accounts for the majority of closed transactions
Scarcity of actionable mid-tier targets causing many buyers to reach for earlier stage targets
Interest rate uncertainty impacting total leverage far more than valuation
Sellers willing to take increased structure to prop up multiples
Pivot away from the War on Terror toward peer competition with China and Russia
Concern with tighter federal budgets after 5+ years of good spending enticing those that can come to market
Procurement delays causing those waiting on recompetes or major new business awards to have to stay on the sidelines
Insatiable demand for scarce technical capabilities around cyber, DevSecOps, AI/ML, autonomy, etc.
Looming election uncertainty and choppy debt markets make mega deals hard to execute
Foreign buyers experiencing renewed interest in gaining exposure to the world’s largest defense budgets via M&A

Marty Brennan
703-587-7454
marty.brennan@dwpassociates.com

Charlotte Brewer
404-858-6974
charlotte.brewer@dwpassociates.com

Shera Bhala
410-544-5254
shera.bhala@dwpassociates.com

September 2023 – Vol. 12; Issue 9

DWPA Staff on September 14, 2023

Drafting Your Way to Federal Growth: Strategy vs. Tactics

In designing a successful growth plan, federal contractors should balance strategic steps with tactical actions.
Fall brings a busy football season and the conclusion of FY23. Like any prepared fantasy team charting its path to the playoffs, businesses should synthesize strategy and tactics to hit revenue targets.
How do you win the game? What is your objective? Who do you want on your team? When do you need them? Strategic thinking necessitates a broad view across the playing field.
Are you balancing time spent on delivery vs. growth? When should you attend industry days? How many proposal writers do you need on each team? What setbacks do you anticipate? Consider regular huddles to implement tactics toward achieving strategic expansion.
A plan that balances strategy and tactics focuses on major objectives and practical measures. This equilibrium helps to ensure that you’re not lost in the big picture, and that you can call an audible should the field read be different than anticipated.
Develop your Madden Chart, prepare a winning game plan with ground-level tactics that lead you to your strategic endzone.

You’re on the Clock!

The leaves are falling, the air is crisp, and laptops are humming as fantasy football owners log back into their long-dormant leagues. While federal contractors simultaneously prepare for the final days of FY23, both groups find themselves asking the same question: how to balance a coherent growth strategy with clear, effective tactics for the coming months? After all, fantasy football drafting strategies set the tone for the season—relying on trades from stingy fellow owners or grasping for straws on the waiver wire are easy ways to end up with an embarrassing tattoo or wearing your rival’s jersey for a day. Just as fantasy owners must carefully select their lineup, contractors must develop clearly defined and reasonably set strategic initiatives to empower federal growth for the year ahead. Prioritization of a small number of high-impact initiatives, reinforced with a tactical approach that includes specific assignments and actions, can help companies create a focused, attainable path to growth.

Sleepers, Bye Weeks, and “Do Not Drafts”

If fantasy owners could perfectly balance ease-of-schedule, high-value players, and a healthy bye week mix, anybody could be Matthew Berry or Field Yates. The fact is every fantasy owner is going to give up something when the draft jingle chimes. In the same vein, contractors cannot expect to pursue every single strategic initiative brainstormed at the annual strategic offsite. Build out a team with uniformly spread bye weeks (or an evenly distributed pipeline), and you may find yourself having to sideline your ease-of-schedule strategy (or focus mostly on big-swing, low p(win) opportunities). Draft Patrick Mahomes in the second round (or make hiring a dedicated capture manager an immediate priority) and you may not have enough depth in skill positions (or enough funds to train internal resources). Weighing the importance, value, and attainability of strategic initiatives against each other is key before diving into pure tactics.

Setting Your Lineup

Strategies provide overarching guidance—fast, sustainable federal growth is underlaid by a set of dedicated, tactical approaches which outline clear actions and responsibilities. The same is true in fantasy football, where this realization happens quickly—once the dust from the draft settles, Week 1 lineup setting is usually right around the corner. For those “handcuffing” star running backs with their backups, a tactical approach of monitoring the injury report before kickoff will ensure they are never left with a goose egg. In the federal world, smart tactics similarly make up the backbone of an effective strategy. Planning to expand into a new customer? Targeting dates for executive meetings with agency leaders might be a good start. Aiming for $50M in TCV submission before the end of the quarter? Assigning capture and proposal managers to specific deals can make that number tangible. Just as fantasy owners set their lineup each week, companies in the federal market should consider quarterly or even monthly reviews of strategic goals and tactical approaches.

Fumble!

No matter the amount of strategy or tactics, fantasy owners and federal contractors know well that both the fantasy world and the federal market bring their fair share of surprises. A fantasy draft strategy that relies on ease-of-schedule would normally employ a tactic of rotating players during their weeks facing elite opponents. However, when your leading scorer inevitably goes down with an injury, plans will change – suddenly, your tactic of reviewing other teams’ trade needs every Tuesday becomes crucial. The balance of strategy and tactics is useful in promoting flexibility. An overarching strategy can keep a singular focus, while numerous tactical avenues keep things flexible enough to weather nasty surprises. For example, under a strategic goal to win at least 1 of 3 major bids, the tactical decision to implement a weekly review of capture and proposal resource allocation can provide quick response to sudden RFP requirement changes. In the demanding worlds of fantasy football and GovCon, strategy and tactics must coexist in harmony.

Mock Draft of Growth Strategy and Tactics

WR1: Run up the score—strategically anchor company growth goals on clear comparative advantages
RB1: Every-game starters—understand that delivery team needs may require tactical flexibility within growth strategies
WR2: Strength-of-schedule play—lay out the year ahead for major capture efforts and large bids
QB1: Team leader(s)—hold annual exec gatherings that set the strategic and tactical tone for the upcoming FY
RB2: The “workhorses”—assemble a dedicated capture and proposal team that meets regularly
TE1: Unsung heroes—mix in smaller, more attainable strategic goals focused on building internal capacity
D/ST: The elite, competitive edge—“stream” teaming partners when opportunities exceed internal capabilities
K: The longshot—low p(win), high-value wins are rare, but can result in tremendously quick growth

Jack Jacobs
757-692-6777
jack.jacobs@dwpassociates.com

Shera Bhala
410-544-5254
shera.bhala@dwpassociates.com

Jessica Butturff
703-786-1841
jessica.butturff@dwpassociates.com

Congressional Leadership Remains at Odds with Each Other after the August Recess

DWPA Staff on September 8, 2023

Supplemental Aid for Ukraine and Disaster Assistance Splits House and Senate Republicans

Members of Congress were back in session this week after the August recess, and they have begun laying the groundwork for what is expected to be a nasty spending fight through the end of the month. The fiscal year and the government’s spending authority end after September 30th. On October 1st, without a full spending package or a short-term, stopgap spending package passed, the government will shut down, leaving all non-essential government employees furloughed. But before we get to that point, Congress has a few weeks to try and resolve what is shaping up to be a massive budgetary gap between House and Senate spending bills, as well as a variety of political and policy issues.

The Senate is hitting the ground running with Majority Leader Chuck Schumer scheduling the FY2024 MilCon-VA, Agriculture, and Transportation-HUD bills to be introduced on the floor early next week. The Senate versions of these spending bills contain billions of more dollars in spending and lack the “culture war” provisions which the House Appropriations Committee approved. Senators are approaching the appropriations process in a bipartisan way and there is no appetite for a government shutdown.

Meanwhile on the House side, Republicans are running the show on their own; they weren’t able to get a single Democrat to vote for any of the bills in the House Appropriations Committee. Spending in these bills has been cut to well below the number reached in an agreement between Congress and the White House during the debt limit standoff earlier this year. House Speaker Kevin McCarthy is now put in the position to somehow wrangle an agreement out of all of this; he stands in the middle between his the far-right Republican Freedom Caucus and the White House and Senate which are mostly in lockstep with each other. Adding to the complexities of this budget deal are the need for a supplemental aid package which the White House and Senate want for disaster relief and to support Ukraine’s military. However, House Republicans want to cut out military assistance for Ukraine is exchange for additional funding and policy changes on the U.S.-Mexico border. Some Republicans have even suggested leveraging their support of any agreement for action by Speaker McCarthy to begin impeachment proceedings of President Joe Biden. As this budget fight continues, keep in mind that any one Member of Congress can issue a motion to vacate and attempt to oust McCarthy from his Speakership.

Here’s what else you may have missed this week:

Department of Defense going on the offensive against Senate blockade of military promotions. Senator Tuberville (R-AL) has been denying unanimous consent to all senior military promotions since February in retaliation for a Pentagon policy which grants leave and reimburses travel expenses for military personnel who cannot obtain an abortion or receive reproductive health care in the state where they are stationed. The backlog has now affected over 300 positions which need Senate confirmation, including those nominated to lead the Joint Chiefs of Staff. Throughout this week the Pentagon has taken the unusual, but not unprecedented, tactic of having its top military leadership write op-eds and conduct TV interviews to try and get Senator Tuberville to budge. They even spotlighted the issue in an article on their front page earlier this week. In taking the case to the American people, they are arguing that Tuberville is negatively impacting military readiness; Navy Secretary Carlos Del Toro claimed the Senator was “aiding and abetting Communist and other autocratic regimes around the world.” Despite this effort, the issue is likely to remain at a standstill with Pentagon officials and the White House refusing to budge on reversing the policy, Senator Chuck Schumer refusing to introduce each nominee one-by-one (to avoid creating a precedent in denying nominees for political expediency), and Senator Tuberville refusing to budge in his anti-abortion fight.

FDA and CDC set to approve new COVID booster as hospitalizations spike around the country. The Food and Drug Administration may approve the updated COVID-19 booster as early as today (so keep an eye on the news) which would pave the way for the Centers for Disease Control and Prevention, which is scheduled to meet on Tuesday, to give final approval on the vaccines as early as next week. This update comes as hospitalizations for COVID infections have increased for seven weeks in a row; even First Lady Jill Biden tested positive for the virus (she has since tested negative). The new booster shot will target the omicron subvariant and has been found to give additional protection against other variants as well.

Senate Minority Leader Mitch McConnell vows to finish his term despite health concerns. During the August recess Sen. McConnell captured headlines again after yet another protracted on-camera freeze during an interview which itself included questions about his health. Staff responded to the incident saying that the Senator was dehydrated. McConnell then took the issue a step further this week during a meeting with Senate Republicans where he presented letters from the on-site doctor in the Capitol for members of Congress who concluded that the Senator had not suffered a seizure or stroke. McConnell asserted that he would finish his term as leader, which ends in January, as well as his term in office, which ends in 2027 unless he runs for reelection. For the most part, McConnell has the support of the rest of his party, although Rand Paul, the junior Senator from Kentucky who himself is a doctor, has voiced skepticism that he could have really had a thorough medical evaluation. For the time being, McConnell has the important role of keeping his party and the Senate united throughout this appropriations process.

Local Government G-News September 6, 2023

DWPA Staff on September 6, 2023

September 6, 2023
Federal Funding Opportunities

U.S. Department of Commerce; National Oceanic and Atmospheric Administration Fiscal Year 2024 Marine Debris Removal under the Bipartisan Infrastructure Law letters of intent due October 27, 2023

The National Oceanic and Atmospheric Administration (NOAA) Marine Debris Program, through the Bipartisan Infrastructure Law, will support the removal of large marine debris throughout the coastal United States, Great Lakes, territories, and Freely Associated States. These removal projects should focus on large marine debris, including abandoned and derelict vessels, derelict fishing gear, and other debris that is generally unable to be collected by hand.

U.S. Department of Commerce; National Oceanic and Atmospheric Administration Fiscal Year 2024 Marine Debris Interception Technologies under the Bipartisan Infrastructure Law letters of intent due November 15, 2023

The Marine Debris Program, through the Bipartisan Infrastructure Law, will support the installation of proven marine debris interception technologies, throughout the coastal United States, Great Lakes, territories, and Freely Associated States. Projects will focus on the installation, monitoring, and maintenance of proven marine debris interception technologies that will capture marine debris at or close to known marine debris sources or pathways.

U.S. Department of Energy; National Energy Technology Laboratory Inflation Reduction Act Transmission Siting and Economic Development Program concept papers due October 31, 2023

This program aims to ensure the timely siting and construction of new or upgraded interstate or offshore electric transmission facilities while providing economic benefits to impacted communities. In order to accelerate and strengthen siting and permitting activities carried out by state, local, and Tribal siting and permitting authorities, this program will support efforts to standardize and streamline siting and permitting processes, coordinate across jurisdictions, and carry out robust public engagement, among other things. In order to provide economic benefits to communities impacted by the construction and operation of interstate or offshore transmission lines, including economically disadvantaged communities and environmental justice communities, this program will provide funds to siting authorities or other types of state, local, or Tribal governmental entities to support a wide range of projects that provide benefits targeted to the needs of impacted communities.

U.S. Environmental Protection Agency Region 2 Fiscal Year 2023 and 2024 Wetland Program Development Grants applications due October 24, 2023

Wetland Program Development Grants (WPDGs) assist state, tribal, territory, and local government agencies and interstate/intertribal entities in developing or refining state, tribal, territory, local programs which protect, manage, and restore wetlands. The primary focus of these grants is to develop or refine state, tribal, and territory wetland programs. A secondary focus is to develop or refine local (e.g., county or municipal) programs. Projects must be performed within one or more of the states, territories, and federally recognized tribal nations of EPA Region 2 specifically within the geographic boundary of New Jersey, New York, Puerto Rico and/or the U.S. Virgin Islands to be eligible to apply for funding.

WSW Special Report: Expiring Authorizations, “Must Do” Legislation Highlight the September Legislative Calendar

DWPA Staff on September 1, 2023

As Congress prepares to return to action in September, it faces a lengthy and varied legislative to-do list. The gears of Congress have been grinding away throughout 2023, working to reauthorize a host of laws that expire at the end of the fiscal year on September 30. At the same time, appropriators have been working to advance the annual spending bills which fund the federal government before the start of Fiscal Year 2024 on October 1; absent action on those bills or on an interim funding bill, Congress may also be facing the prospect of a federal government shutdown.

To get a better understanding of how this works and what Congress has on its legislative agenda in September, we have assembled the following primer.

Authorization legislation: An authorization bill is passed by Congress to establish the structure of a federal department or agency and its programs or activities, along with recommended funding levels. Often, these authorizations are set to expire (or sunset) after a set period of time, with many measures requiring renewal within five years. In this case, Congress must pass legislation to reauthorize a given program, at which time Congress has the opportunity to change, reform, or update various federal government activities and keep federal programs current with the needs they were intended to address.

When an authorization is set to expire, it provides the deadline and impetus for Congressional action. If Congress can’t agree on a full-scale reauthorization of a given program, it often will extend the current authorization for a period of time. However, such extensions do not typically allow for new programs to begin or old ones to cease, or for changes in the way federal departments and agencies operate.

Appropriation legislation: This type of legislation permits agencies to take payments from the federal Treasury. Appropriations bills are ordinarily passed each year, with the federal fiscal year formally ending on September 30. However, in recent years, it has been common for Congress to fund the government through a continuing resolution (CR), which allows agencies to continue spending the same amount of money they were spending under the previous funding bill, for at least some period of time until there is agreement by Congress on a funding level for a department or agency for the full fiscal year.

In general, an authorization is required under House and Senate rules, and sometimes under statute, for Congress to appropriate funding for a particular program or activity.  However, unlike when an authorization lapses, if appropriations are not made for a particular activity before the end of a fiscal year, even on a temporary basis under a CR, that department or agency shuts down or ceases to administer a particular program.

The stakes for programs being reauthorized are getting higher, however, as in the 118th Congress, House Republicans have made a priority of programs being authorized to be eligible for continued investment in the annual appropriations bills. Without authorization, related programs could be more vulnerable to cuts in the future as the House and Senate write the annual spending bills.

Key Authorizations Expiring by September 30 Driving the Agenda: Many important programs are set to sunset on September 30th. Here is a selection of those measures that Congress is working to reauthorize before that deadline, and some of the key issues involved in those efforts:

FAA Reauthorization.
- Key issues: Training hours for pilots, self-defense training for flight attendants, and the allocation of additional flight slots at Reagan National Airport.
The SUPPORT Act, which is the current framework for the federal response to the opioid epidemic.
- Key issues:  New ways to respond to and reduce the proliferation of fentanyl, extension of state plan authority for relief from the Medicaid IMD Exclusion, and addressing the growing threat of xylazine.
The Pandemic and All-Hazards Preparedness Act (PAHPA), the nation’s main pandemic preparedness law.
- Key issues: Giving the HHS-Assistant Secretary for Planning and Response new powers in the next public health emergency, including contracting authorities that the Department of Defense facilitated for Operation Warp Speed, and surge staffing capacity, as well as provisions that would address medical equipment and medical countermeasures supply chain resilience, potential new authorities for review and approval of diagnostic tests, and more.
The Children’s Hospitals Graduate Medical Education program, which funds training for pediatricians.
- Key issues: Fights over gender appropriate care and attempts to prohibit federal funding from being used at facilities receiving GME funding for such care for people under age 18.
National Flood Insurance Program (NFIP)
- Key issues: Protecting policyholders in areas at risk for flooding from outsize premium increases by capping annual increases at nine percent, increasing funding for mitigation grants and modernization of flood maps, and reforms to the claims process in the wake of Superstorm Sandy.
Farm Bill
- Key issues: Implementation of new work requirements for beneficiaries, limitations on the growth of benefits, rural development including broadband access expansion, Chinese ownership of US farmland.

Beyond these measures, Congress also is racing to advance the annual appropriations bills or otherwise agree on a Continuing Resolution before September 30. House and Senate leaders intend to bring some of the spending bills to the floor in their respective chambers in September, which could make incremental progress, but Congress is all but certain to need additional time in the fall.

While agreement on a Continuing Resolution of at least a month or two is typically non-controversial, there are some members of the House Freedom Caucus who have indicated they won’t support a CR unless additional spending and policy concessions are made beyond those agreed to in May to raise the debt ceiling and avoid default. Once again, Speaker of the House Kevin McCarthy will be walking a highwire attempting to balance the priorities of competing factions within the Republican Conference, or the risks of cooperating with House Democrats, while also seeking to avoid the drama and blame of a government shutdown.

Ultimately, the imperative of securing aid in response to natural disasters such as Hurricane Idalia and the wildfires in Hawaii may prove instrumental to securing the bipartisan support required to pass a CR.

IHE G-News August 30, 2023

DWPA Staff on August 30, 2023

August 30, 2023
Federal Funding Opportunities

U.S. Department of Commerce; National Oceanic and Atmospheric Administration Marine Debris Removal Under the Bipartisan Infrastructure Law letters of intent due October 27, 2023

The overall objective of this funding opportunity is to support impactful, large marine debris removal projects that will improve the resilience of the coastal and marine environment. This competition considers impactful projects to be those that will have long-lasting and transformational benefits to marine and coastal trust resources, coastal communities, and/or local economies. To accomplish this, the Marine Debris Program seeks proposals for projects that remove and dispose of large marine debris, such as abandoned and derelict vessels, derelict fishing gear, and other large debris, and prevent the re-accumulation of marine debris in the environment.

U.S. Department of Commerce; National Oceanic and Atmospheric Administration Marine Debris Interception Technologies Under the Bipartisan Infrastructure Law letters of intent due November 15, 2023

This funding opportunity will support the installation, monitoring, and maintenance of proven marine debris interception and removal technologies to benefit marine and coastal trust resources, coastal communities, and/or local economies. For the purpose of this funding opportunity, marine debris interception technologies include devices, such as litter traps, shoreline removal technologies, booms, skimmers, conveyors with receptacles, floating collection devices, etc., that capture trash, plastics, and other macro-debris. Proven interception technologies are those that are not prototype devices and do not require additional research and development prior to deployment, and have been used successfully in the environment in which they are being proposed. These interception technologies may be utilized alone or together as part of a wider interception strategy.

NEW: Advanced Research Projects Agency for Health Precision Surgical Interventions abstracts due September 21, 2023

The aim of the Precision Surgical Interventions (PSI) program is to catalyze advancements in the surgical field, with the final goals of providing the surgeon with revolutionary tissue visualization and classification tools, thus increasing surgical precision, decreasing reoperations, and improving patient care. PSI seeks to develop technologies that improve surgical outcomes through two technical areas:

Area 1 aims to develop systems that image tumors intraoperatively at microscopic scales, and requires performers to develop an end-to-end pathology system that operates at the bedside or in vivo and classifies margins as positive or negative within 15 minutes, without a pathologist.
Area 2 aims to develop devices and software to localize and visualize critical anatomical structures (nerves, blood vessels and organs) in three-dimensional during surgery, and requires performers to develop a real-time, end-to-end system that enables visualization of critical structures buried up to one centimeter deep.

National Aeronautics and Space Administration Space Technology Graduate Research Opportunities applications due November 1, 2023

This program solicits proposals on behalf of individuals pursuing or planning to pursue master’s or doctoral degrees in relevant space technology disciplines at accredited U.S. universities. Space Technology Graduate Research Fellows will perform research at their respective campuses and at National Aeronautics and Space Administration (NASA) Centers. Each recipient will be matched with a technically relevant and community-engaged NASA researcher who will serve as the research collaborator on the award. Through this collaboration, graduate students will be able to take advantage of broader and/or deeper space technology research opportunities directly related to their academic and career objectives, acquire a more detailed understanding of the potential end applications of their space technology efforts, and directly disseminate their research results within the NASA community.

National Science Foundation Ecology and Evolution of Infectious Diseases proposals due November 15, 2023

The Ecology and Evolution of Infectious Diseases program supports research on the ecological, evolutionary, organismal, and social drivers that influence the transmission dynamics of infectious diseases. The central theme of submitted projects must be the quantitative, mathematical, or computational understanding of pathogen transmission dynamics. The intent is discovery of principles of infectious disease (re)emergence and transmission and testing mathematical or computational models that elucidate infectious disease systems. Projects should be broad, interdisciplinary efforts that go beyond the scope of typical studies. They should focus on the determinants and interactions of (re)emergence and transmission among any host species, including but not limited to humans, non-human animals, and/or plants. This includes, for example, the spread of pathogens; the influence of environmental factors such as climate; the population dynamics and genetics of vectors and reservoir species or hosts; how the physiology or behavior of the pathogen, vector, or host species biology affects transmission dynamics; the feedback between ecological transmission and evolutionary dynamics; and the cultural, social, behavioral, and economic dimensions of pathogen transmission and disease. Research may be on zoonotic, environmentally-borne, vector-borne, enteric, or respiratory pathogens of either terrestrial, aquatic, or marine systems and organisms, including diseases of animals and plants, at any scale from specific pathogens to inclusive environmental systems.

WSW Special Report: The 2024 Campaign Season Begins

DWPA Staff on August 25, 2023

On Wednesday night, eight Republican hopefuls took the stage for the first GOP presidential primary debate. As one commentary aptly described it, “The debate marked the end of the 2024 campaign’s preseason, a months-long sprint through fundraisers, town halls and early-state fried food…” The debate itself was fairly unremarkable, though if you want some post-debate commentary, this piece and this one are both worth a read.

The stakes are high in every presidential election year, but 2024’s stakes seem exponentially higher, each side’s detractors more relentless, the environment much more tense. With one party’s leading candidate facing multiple federal indictments and a slate of upcoming court appearances, and the other party’s sitting President facing ongoing intense scrutiny about the legality of his son’s business dealings, the end of the “preseason” will bring those issues even more to the forefront. The looming 2024 election will play a greater and greater role in the policy battles on Capitol Hill as both sides fight to retain or win congressional majorities. Razor-thin margins in both the House and Senate, combined with the internal policy divisions plaguing both congressional Republicans and congressional Democrats, have created an extraordinary setting leading into next year.

The most obvious practical impact of this political battle royale will be the congressional calendar for 2024. Expect to see fewer days “in session” in Washington so Members of Congress can spend time in their states and districts with constituents, and time on the campaign trail. (This provides some great opportunities for your organization to invite your Members of Congress for a site visit, ribbon-cutting, roundtable, health fair, or other event.)

But the impact on the legislative agenda will also be significant as Congress seeks not only to protect their own seats, but to promote their respective presidential candidates. Senate Democrats will look to highlight Biden’s accomplishments, while House Republicans will continue pursuing their aggressive oversight activities targeting the Biden Administration, as well as their “anti-woke” agenda. That makes large-scale, bipartisan legislative accomplishments hard to come by – at least before a potential lame duck session after the election.

Congress will still act on a number of policy and funding measures – look for more details in next week’s newsletter on expiring authorizations and what’s left on Congress’s “to do list.” The process may take longer. It may look different. It may even be downright painful, leaving us all wishing for some comfort food – maybe some of that “early-state fried food” from the presidential campaign trail…? But your WSW team will continue guiding through this extraordinary landscape, finding ways to advance your priorities and achieve your goals.

Local Government G-News August 25, 2023

DWPA Staff on August 25, 2023

August 25, 2023
Federal Funding Opportunities

U.S. Department of Commerce; National Oceanic and Atmospheric Administration Transformational Habitat Restoration and Coastal Resilience Grants Under the Bipartisan Infrastructure Law and Inflation Reduction Act applications due November 17, 2023

The National Oceanic and Atmospheric Administration (NOAA) seeks habitat restoration projects that enhance coastal resilience. This solicitation will fund projects that demonstrate high priority and transformative potential within the geographic region where restoration actions are proposed. A variety of habitat types are eligible within this funding opportunity, ranging from marine, estuarine, and coastal ecosystems at the land-sea interface (including coastal rivers), to the freshwater coastal ecosystems of the Great Lakes. Applicants should address the following set of program priorities: 1) sustaining productive fisheries and strengthening ecosystem resilience; 2) enhancing community resilience to climate hazards and providing other co-benefits; 3) fostering regionally important habitat restoration; and 4) providing benefits to tribal, indigenous, and/or underserved communities, including through partnerships.

U.S. Department of Justice Office of Juvenile Justice Delinquency Prevention FY 2023 Building Local Continuums of Care to Support Youth Success Grants.gov deadline September 28, 2023, and Justgrants deadline October 10, 2023

With this solicitation, OJJDP seeks to support communities in conducting planning and assessment activities that will inform the development of a community-based continuum of promising and evidence-based prevention and intervention services that will serve as a strong foundation for preventing youth from entering the juvenile justice system, diverting them from moving deeper into the system (i.e., detention and corrections) and ultimately providing them with the skills they need to lead productive, safe, healthy, and law-abiding lives. The Building Local Continuums of Care to Support Youth Success initiative will provide funding to state and local jurisdictions that have high rates of youth incarceration to develop a continuum of care that includes a focus on positive youth development, prevention, diversion, and treatment services.

National Endowment for the Humanities Digital Humanities Advancement Grants applications due January 1, 2024

The National Endowment for the Humanities (NEH) Office of Digital Humanities is accepting applications for the Digital Humanities Advancement Grants program. The program supports innovative, experimental, and/or computationally challenging digital projects leading to work that can scale to enhance scholarly research, teaching, and public programming in the humanities.

August 2023 – Vol. 12; Issue 8

DWPA Staff on August 24, 2023

Prepare Your Social Disadvantage Narrative to Help Weather the 8(a) Storm

SBA’s forecasted changes to the individual 8(a) program pose additional requirements and challenges for prospective and current members
The longstanding “rebuttable presumption” has been washed away after being found in violation of the 5th Amendment’s due process clause – SBA can no longer use this as a basis for certification
As a result, all 8(a) certifications and all 8(a)-based awards were halted – bad timing for this storm, particularly at the end of the fiscal year
As an immediate temporary measure, SBA is contacting all affected 8(a) applicants and current 8(a) participants to notify them if a narrative is required – if so, use this as your weather guide
Our radar indicates that SBA has issued all notifications on/about Aug 22nd and government has been cleared to start making awards!
We’re still in the middle of the storm – start preparing now, you might not get another chance

SBA’s Response to Court Ruling on 8(a) Program

A storm is brewing on the horizon following the Ultima Services Corporation v. U.S. Department of Agriculture case where the Eastern District of Tennessee ruled that the use of the “rebuttable presumption” in the 8(a) program violated the 5^th Amendment’s due process clause and, thereby, enjoined the SBA from future use. The SBA has since placed a “temporary pause” on accepting new entrants pending program and application process revisions. However, the SBA has released an interim program update requiring all future applicants and current members (excluding Native organizations) whose status was determined using the “rebuttable presumption” to provide a social disadvantage narrative with substantiating evidence that must be approved by the SBA to receive 8(a) certification. While there is still uncertainty regarding the path and severity of this storm, firms should continue monitoring program updates.

Tracking Potential Storm Damage

As we track this storm, there are many possible scenarios for how it could unfold. One scenario is an increased likelihood that awards can be protested, and one’s 8(a) status could be challenged. Using § 124.103 (b)(3), competitors can challenge the status of current members presumed to be socially disadvantaged by providing sufficient contradictory evidence, which may result in defending 8(a) members having to evacuate from the program or vacate awards. Now is the time to create and submit your social disadvantage narrative that will solidify your status and ability to bid on, win, and retain awards as an 8(a). As with all historic storms, the full extent of the ruling’s implications may not be felt for years, but with the removal of the “rebuttable presumption” and consequent program changes, the future landscape of the 8(a) program and GovCon industry will be permanently altered.

Who’s in the Storm’s Path?

If you relied on the “rebuttable presumption” to secure 8(a) status, you cannot outrun this storm – you will be impacted and need to prepare. Prior to the court ruling, a company could claim social disadvantage using self-evident or self-certified criteria and it was assumed to be true, leading to unquestioned admission into the 8(a) program. Now, those who depended on the “rebuttable presumption” must prove their social disadvantage through written narratives in accordance with this guide / section § 124.103(c), which requires providing specific evidence that their social disadvantage was personally experienced and directly impacted the firm’s ability to progress in the GovCon industry. A recent update from the SBA clarified that individual 8(a)s who have already provided evidence proving their status will not be hit by this storm. Further, recent SBA communication to all current 8(a)s informed them whether they have met the requirements and can continue, or if they now need to prove their social disadvantage. As we near the end of FY23, it is important for everyone in the storm’s path to start gathering evidence to prove their social disadvantages.

Weather Preparedness: Writing a Successful Narrative

A strong social disadvantage narrative will be critical to surviving this storm and gaining or sustaining membership as an 8(a) company. Narratives must include personal relevance and avoid any generalizations and/or group experiences. These experiences must also show longevity and continued struggle – single strikes of lightning or isolated events of hardship may be discredited. Evidence should validate your claims and demonstrate a direct effect on opportunity, revenue, contracts, and other losses that have proven to limit your ability to grow and excel in the industry. Further, the supporting evidence should be detailed and specific, and not drawn from widely available data sources. By the end of FY23, the SBA will likely be flooded with applications, which will make their process of granting 8(a) entrance much longer. While we may not know how this storm will unfold, following these recommendations and using this guide / section §124.103(c) will better prepare your 8(a) status defense in the midst of this unpredictable environment.

10 Best Practices for Writing Your Social Disadvantage Narrative

All individual 8(a)s who were admitted using the “rebuttable presumption” are in the storm’s path and required to submit a social disadvantage narrative
Avoid procrastination – start preparing your narrative and strategic response to impending program updates now
Follow this guide, based on § 124.103(c), to make sure your narrative can weather the storm and meet the current SBA 8(a) program criteria
Gather qualitative, specific evidence of your personal social disadvantage experiences – if you didn’t personally experience it, don’t write it down
Stockpile evidence such as quantitative loss of opportunities (revenue, opportunities, or contracts) in Education, Employment, and Business and ensure affidavits / sworn statements are notarized
SBA will use a “preponderance standard” when reviewing the evidence provided – make sure your evidence meets the standard
Be well versed in the social disadvantages that were part of the initial application to include in your narrative (current 8(a)s and those who have already applied)
Be aware of reasons why SBA may decline applications or contract awards based on your social disadvantage narrative
Stay vigilant of the storm’s path and any new guidelines, program updates, and processing times from the SBA or DOJ
Seek out trusted weather experts to help you navigate through this changing environment and aid you in writing your social disadvantage narrative

Jessica Butturff
703-786-1841
jessica.butturff@dwpassociates.com

Robb Wong
301-996-8696
robb.wong@dwpassociates.com

Etienne Reche-Ley
206-484-9059
etienne.reche-ley@dwpassociates.com

IHE G-News August 18, 2023

DWPA Staff on August 18, 2023

August 18, 2023
Federal Funding Opportunities

U.S. Department of Commerce; National Oceanic and Atmospheric Administration Transformational Habitat Restoration and Coastal Resilience Grants due November 17, 2023

The goal of this funding opportunity is to support transformational habitat restoration projects that restore marine, estuarine, coastal, or Great Lakes ecosystems, using approaches that enhance community and ecosystem resilience to climate hazards. Funding will prioritize habitat restoration actions that: demonstrate significant impacts; rebuild productive and sustainable fisheries; contribute to the recovery and conservation of threatened and endangered species; promote climate-resilient ecosystems, especially in underserved communities; and improve economic vitality, including local employment.

U.S. Department of Education; Office of Career, Technical, and Adult Education Perkins Innovation and Modernization Grant Program for Career-Connected High Schools applications due October 13, 2023

The purpose of the Perkins Innovation and Modernization grant program is to identify, support, and rigorously evaluate evidence-based and innovative strategies and activities to improve and modernize career and technical education (CTE) and ensure workforce skills taught in CTE programs align with labor market needs. Specifically, this funding opportunity will support projects that will build capacity among secondary education, postsecondary education, and workforce development systems to expand access to career-connected high school programs for more students. Career-connected high schools are those that offer systematic postsecondary counseling and career advising, dual or concurrent enrollment, work-based learning, and programs that offer opportunities to earn an industry-recognized credential.

U.S. Department of Health and Human Services; National Institutes of Health releases Personal Health Informatics for Delivering Actionable Insights funding opportunity announcement

The purpose of this funding opportunity is to advance the development of novel informatics and data science approaches that can help individuals understand and improve their health through actionable insights. Applications will further the science of personal health informatics by providing meaningful and actionable insights to individuals through innovative personal health data collection, integration, analysis, and personalized risk assessments and interpretation. Applications seeking to advance the understanding of how informatics tools, systems, and platforms can best present the results, interpretation, and limitations of personalized assessments for the benefit of individuals are encouraged. Applications should include end user engaged approaches and real-world evaluation to inform the design of generalizable, reusable, and scalable personal health informatics tools, systems, and platforms for the benefit of individuals in understanding and improving their health.

U.S. Department of Health and Human Services; National Institutes of Health reissues Alcohol and Other Substance Use Research Education Programs for Health Professionals funding opportunity announcement

The goal of this program is to support educational activities that foster a better understanding of biomedical, behavioral, and clinical research on alcohol and other substance use disorders and their implications. To accomplish this goal, this funding opportunity will support creative educational activities with a primary focus on outreach. Specifically, this funding opportunity will support projects designed to engage practicing health care professionals in education about current and emerging knowledge derived from scientific research on the neurobiology, epidemiology, prevention, and/or treatment of alcohol and other substance use disorders and related health conditions, with the ultimate goal of improving care for individuals who use alcohol and other substances.

U.S. Department of Health and Human Services; National Institutes of Health reissues Alcohol Health Services Research funding opportunity announcement

This funding opportunity will broadly focus on closing the treatment gap for individuals with alcohol use disorder (AUD). Within this focus, there are five major areas of emphasis:

Increasing access to treatment for AUD;
Making treatment for AUD more appealing;
Examining cost structures and insurance systems;
Conducting studies on dissemination and implementation of existing evidence-based approaches to treating AUD; and
Reducing health disparities as a means of addressing the treatment gap in AUD for health disparity populations.

U.S. Department of Labor; Employment and Training Administration Strengthening Community Colleges Training Grants due November 14, 2023

The purpose of this grant program is to build community colleges’ capacity to meet the skill development needs of employers and equitably support students in obtaining good jobs in in-demand industries. Proposed projects should enhance sector-based career pathways programs using strategies rooted in evidence and designed to build further evidence on the effectiveness of sector-based career pathways programs in leading to positive employment outcomes. Successful applicants will use the diverse strengths of their partnership members to accomplish and sustain systems change, and enhancements funded by this grant program will ultimately benefit a broad range of current and future students at participating institutions, including dislocated workers, employed workers, and new entrants to the workforce.

Institute of Museum and Library Services National Leadership Grants for Museums applications due November 15, 2023

This program is designed to support projects that address critical needs of the museum field and that have the potential to advance practice in the profession to strengthen museum services for the American public. Projects are expected to:

Generate results such as models, new tools, research findings, services, practices, and/or alliances that can be widely used, adapted, scaled, or replicated;
Reflect a thorough understanding of current practice and knowledge about the subject matter and an awareness of and support for current strategic priorities in the field;
Use collaboration to demonstrate broad need, field-wide buy-in and input, and access to appropriate expertise;
Articulate intentional impact across one or more disciplines within the museum field; and
Employ novel approaches to the project area, as may be appropriate.

Institute of Museum and Library Services Museums for America applications due November 15, 2023

The Museums for America program supports museums of all sizes and disciplines in strategic, project-based efforts to serve the public through exhibitions, educational/interpretive programs, digital learning resources, professional development, community debate and dialogue, audience-focused studies, and/or collections management, curation, care, and conservation.

Institute of Museum and Library Services Museums Empowered: Professional Development Opportunities for Museum Staff applications due November 15, 2023

This program is designed to support projects that use the transformative power of professional development and training to generate systemic change within museums of all types and sizes. Projects are expected to involve multiple levels of staff, leadership, and volunteers in a set of logical, interrelated activities tied directly to addressing a key need or challenge; reflect a thorough understanding of current practice and knowledge about professional development; and generate measurable results.

National Endowment for the Humanities Spotlight on Humanities in Higher Education applications due October 18, 2023

The Spotlight on Humanities in Higher Education program supports the exploration and development of small projects that would benefit underserved populations through the teaching and study of the humanities at small and medium-sized colleges and universities. The program supports activities including but not limited to curricular or program development, expert consultations, speakers’ series, student research, creation of teaching resources, and community engagement. Projects may benefit students, faculty, the institution or organization, and/or the community.

National Endowment for the Humanities Collaborative Research applications due November 29, 2023

This program supports groups of two or more scholars seeking to increase humanistic knowledge through convenings, manuscript preparation for collaborative publications, the creation of scholarly digital projects, or the planning of an international collaboration. Projects must pursue significant research questions and lead to a tangible interpretive product. The collaborative work can be rooted in a single field or cross disciplines. Collaboration with scholars working in the natural or social sciences is encouraged, but projects must focus on humanistic content and employ humanistic methods.

National Science Foundation Artificial Intelligence Research Institutes preliminary proposals due October 31, 2023

This solicitation expands the nationwide network of Artificial Intelligence (AI) Research Institutes by inviting proposals for institutes that have a principal focus in one of the following three new themes aimed at transformational advances in a range of economic sectors, and science and engineering fields:

Theme 1: AI for Astronomical Sciences;
Theme 2: AI for Discovery in Materials Research; and
Theme 3: Strengthening AI.

National Science Foundation Smart Health and Biomedical Research in the Era of Artificial Intelligence and Data Science proposals due November 9, 2023

The purpose of this program is to support the development of transformative high-risk, high-reward advances in computer and information science, engineering, mathematics, statistics, behavioral and/or cognitive research to address pressing questions in the biomedical and public health communities. Transformations hinge on scientific and engineering innovations by interdisciplinary teams that develop novel methods to intuitively and intelligently collect, sense, connect, analyze and interpret data from individuals, devices and systems to enable discovery and optimize health. Solutions to these complex biomedical or public health problems demand the formation of interdisciplinary teams that are ready to address these issues, while advancing fundamental science and engineering.

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