The systems government agencies have in place to acquire external resources and services is not, in fact, designed to be off-putting, but in many ways they simply can’t match the speed of the private sector. As a result, small businesses who are ready to pounce on a new opportunity can’t align their time tables, are unable to move past GSA schedules, and – even after some success – these small businesses face great challenges transitioning to the major leagues. Regardless of some of the more traditional, large contractors working with the federal government, there are also outliers who advance the government across the spectrum, from local to federal. In some cases, agencies also create special programs through awards, further aligning with the speed of tech companies, but often don’t know how to bring it to market. Through thick and thin, there are several points where startups and tech companies intersect with government, and there are a few organizations leading the charge to help others find the focal point. Tech.Co has partnered with Arlington Economic Development to bring you this story.
The Intersection of Government and Technology
For as long as the government has been procuring business, there have been organizations and consultants to help companies navigate the red tape; however, there are outliers working on a different spectrum. From 1776 and SineWave Ventures working with the government, to the startups taking advantage of agency challenges and filling gap areas like Tandem NSI and Airside Mobile, we took a closer look at the less common, but rapidly growing path of technologists working with the government. The government is constantly looking towards the private sector to solve problems, and now they are opening even more doors to make it more efficient to do so. When it comes right down to challenges, funding is at the top of the list for startups in most locations outside of silicon valley. Tech hubs are growing, but the dollars are not necessarily following behind them. From Arlington, VA to Rockville, MD, some companies find success and funding through government initiatives.
Dollars and Ecosystems
SineWave is a Washington, D.C.-based venture firm that collaborates with partners in both private and public sector markets, connecting them with new technology that they currently lack. According to Suissa, prior to SineWave there really were not many bridges to help companies traverse the gap. “Consultants, lobbyists, some government people that didn’t understand building companies and also when not to do it. Some of the best things you can do for a startup is tell them it’s not going to happen (work with the government).” With venture funding being less accessible outside of the typical tech bubbles, the shortage of venture firms in the area also have a lingering bad taste from previous transactions. “ You need to make sure you can help startups to build relationships and partnerships. It really is a world that people don’t understand. The problem is that there are a lot of government people trying to understand venture capital and growing companies. A lot of venture people pursuing ventures but getting burned,” said Suissa. Beyond the dollars, Suissa also reiterated the importance of the ecosystem and investing in entrepreneurs, something often done through White House initiatives during the Obama administration. On a local level in Arlington, VA and Washington, DC, there is also 1776 designed to fund and accelerate businesses along several industries, all that align with government gap areas. Even if a startup or growing organization does not work directly with the government as a customer, they may be in a highly-regulated industry such as health care. 1776 works with companies at all stages, and adjusts their contributions accordingly. From early stage to those with existing private clients looking to break into the government, they bring in the necessary support system. “We have entire curriculums in various areas (from growth to finance), to selling to tech and health care system, and pitch training and coaching. Then on to our resources area, what other resources can we bring in? Mentors, events, a connection, just a list of best reading on the topic… eventually is it capital?,” said Gress. Their goal is to not just fund companies, but help secure the right funding.
Alternatives to Government Procurement
Generally, businesses that consider doing work with the government follow the path of procurement and GSA schedules. However, there are companies such as Airside Mobile who create innovative solutions for both the private and public spectrum. Based in 1776’s Arlington, VA location, overlooking Reagan National Airport (DCA), they are the brains behind the Mobile Passport app. Mobile Passport is a joint project between Airside Mobile and the U.S. Customs and Border Protection that lets travelers submit customs declarations via a smartphone. Rather than waiting in long customs lines, you simply use their app at a kiosk and expedite the entire process. They are available in six locations with a seventh coming next week. Prior to launching Airside Mobile, Miller worked with McKinsey & Company, was part of the initial launch team for the Transportation Security Administration (TSA), and was Vice President of ChoicePoint Government Services (later purchased by LexisNexis parent company Reed Elsevier $3.6 billion). Miller and company are prime examples of what it means to be at the intersection of government and technology, offering solutions that can be used by both private and public sector organizations, yet avoiding the typical red tape. While working to get the TSA up and running, their team was tasked with rebuilding checkpoint lanes, hiring 60,000 people in 10 months, and creating the first-ever baggage screening program. “In the early days, when you hire that many people at a base of zero that’s just crazy. I learned a lot about airports, and after a few years left to come back to work on the mobile boarding pass,” said Miller. Working with Continental, they became the first airline to test boarding passes using phones. At the base of all of this technology, it was all about making systems more efficient. A few years later they learned that customs was looking for a similar solution, they made a few suggestions, and struck a partnership. On the other side of the spectrum, there are innovators doing amazing things to solve problems affecting us all, but may not be aware of the available funding. That’s where companies like Tandem NSI comes in, a Washington, D.C.-based company that finds solutions from the nation’s top innovators and showcases them to government agencies. They also work in the opposite direction with the likes of DARPA, DOD Labs, Army and Air Force to to create emerging technology companies and promote higher engagement between innovators and national security research and development. The Tandem NSI team, like Marketing Director and Executive Editor Michael Hoffman, are not just at the intersection of government and tech, they act as the street signs and markers to help keep traffic flowing. “We’ve put together a network of entrepreneurs, innovators, startups, incubators, interested in working with national security or gov projects. Agencies like DARPA looking for new ideas focused on defense, homeland security in particular. They need to work outside the box,” said Hoffman. Although publicly there has been a lot of focus on state and federal government working with Silicon Valley, there is a lot happening in DC, Pittsburgh, and Austin. Tandem is trying to make it easier for startups in these areas to take advantage of the shorter-term government projects. For example, DARPA’s Robotics fast track program was a smaller, one-year, $150,000 project. Although funding without losing equity sounds great, simply building a challenge or offering does not spread the message to the right communities. “There was not as much engagement initially. There were two partners putting together the contract, Open Source Robotics Foundation built the site. It was only 10 pages of apps vs 100 pages RFPs. After working on it, they reached out to us with hopes of marketing it out to their network. We spread the word, and created a west coast tour,” said Hoffman. As a result they were able to increase the amount of people pursuing the funding and solving problems with innovative tech solutions.
