WINNING BLOCKCHAIN CONTRACTS WITH GOVERNMENT - 07/20/2018 Presentation compliments of

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WINNING BLOCKCHAIN
CONTRACTS WITH
GOVERNMENT
07/20/2018

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Blockchain in its simplest form is
                                      digital information divided into blocks
                                      and linked together in a public or
                                      private peer-to-peer network.
                                      The database this creates is not
BLOCKCHAIN                            managed by any one person.
                                      Instead, everyone in the network
  DEFINED                             gets a copy of the entire database.
                                      The old blocks are preserved forever
                                      while new blocks are irreversibly
                                      added. This makes it impossible to
                                      manipulate by faking documents,
                                      transactions and other information.

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A SIMPLIFIED
EXAMPLE OF HOW
BLOCKCHAIN WORKS

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U.S.A.                                ENGLAND                                        CHINA

     Chicago                                  London                                      Beijing
     New York                               Manchester                                   Shanghai
     Houston                                Birmingham                                    Chendu

• Each linked data block represents a country.

• Contained inside each block are city names from that country.

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U.S.A.                               ENGLAND                                             CHINA

     Chicago                                   London                                          Beijing
     New York                                Manchester                                       Shanghai
     Houston                                 Birmingham                                        Chendu
      Prev Hash: N/A                          Prev Hash: CNYH                             Prev Hash: CNYHLMB
       Hash: CNYH                                Hash: LMB                                     Hash: BSC

• Each block contains a set of unique characters, derived from the information contained inside that block. This
  is called a hash.
• The USA block has the cities Chicago, New York, and Houston. For this example, the hash could be “CNYH”.
• Every successive block includes the previous block’s hash, binding the blocks together.

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BLOCKCHAIN IS SECURE

  TRANSACTION                     BLOCK
  Someone would like to         The transaction is
   make a transaction          represented online                 P2P NETWORK                                 VALIDATION
                                   as a block              The required transaction is broadcast       The network of nodes validates the
                                                             as a P2P network consisting of             transaction and the user’s status
                                                               computers, known as nodes.                   using known algorithms.

                                                         BLOCKCHAIN                                                      BLOCK
    COMPLETE                                         The new block is added to the                              Once verified, the transaction is
                                                     existing one in a way that it is                          combined with other transaction to
The transaction is complete.
                                                       permanently unalterable.                                create a new block for the ledger.

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SMART CONTRACTS

 PRE-PROGRAMMED                        CHAIN OF                   EXECUTION AND                              SETTLEMENT
    CONTRACT                            EVENTS                    VALUE TRANSFER
The agreement rules and         If the events specified by the   Once in process, the terms of          The transfer of value to
conditions are established      conditions happen, then the      the contract will automatically        counterparties are recorded
by all parties and then coded   code automatically executes      transfer the value to the              to the blockchain
                                                                 correct parties

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DAPPs

A DApp has its backend code (smart
contract) running on a decentralized
peer-to-peer network. The apps
frontend (webapp) can be hosted on
decentralized storage.

DAPP = FRONTEND + CONTRACTS

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USE CASES
Blockchain use in the real world.

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FINANCE AND BANKING

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INSURANCE/HEALTHCARE

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ENERGY USAGE
                                                               PEER-TO-PEER DISTRIBUTED
                                                               TRANSACTION NETWORK
                                                               Meters connected through blockchain
                                                               recorded readings every second and
                                                               can easily and quickly transfer energy
                                                               to any user needing extra power.

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CONNECTING WITH
GOVERNMENT CUSTOMERS

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FIND YOUR USE CASE

• The First step is to find something that you have expertise in and apply
  blockchain to this.
• Government customers are looking for innovative solutions to solve big
  problems with compliance of FAR(Federal Acquisition Regulation) and
  DFAR(Defense Federal Acquisition Regulation).
• Team up with universities – they are accustomed to doing business with
  government, they can help you write proposals and can be a subcontractor to
  you and do 33% of the work on most projects. DON’T TRY TO DO IT ALL!

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PROSPECTS

                                    https://www.challenge.gov/

Variety of challenges posted daily, some looking for blockchain solutions. Great place to interact with government acquisition.

                                    https://www.fbo.gov/

Another posting of government RFPs and RFIs. Great place to connect with government customers looking for solutions.

                               https://www.sbir.gov/

Small Business Innovation Research Grant is a great way to get started into government contracting and is a platform for
businesses to do work for the government with non-traditional contracts.

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JOIN AN OTA CONSORTIUM

WHAT’S AN OTA?
Other Transaction Authority (OTA) is the term commonly used to refer to the (10
U.S.C. 2371b) authority of the Department of Defense (DoD) to carry out certain
prototype projects.
• These consortiums are usually funded with over $1 Billion to carry out certain missions as it
  relates to DoD acquisition. Looking for private and non-profit solutions in a non-traditional
  contracting way. You can apply for funding with a white paper usually 10-20 pages in length.
  Once you join you’ll have access to various projects and RFPs they are looking to fulfill. These
  can turn into long term contracts.

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OTA’S TO JOIN

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Government Marketing Techniques
                          • Request for Information (RFI)
                          • Small Business Innovation Research
                            (SBIR)
                          • Government Marketing Lifecyle
                              • Research and Planning
                              • Respond to Government request for
                                Service or Product (RFP/RFQ)
                              • Bid Submission
                              • Contract Award

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Request for Information (RFI)

• RFI
   Who:      A procurement officer
   When:     Prior to releasing a formal Request for Proposal (RFP)
   Why:      The procurement officer can gauge interest and/or if there is a vendor who can
             provide a product and/or service.

The officer, after reviewing responses to the RFI, can decide how to best
proceed — either by issuing an RFP or RFQ.

The information gathered during the RFI process can help the procurement
officer best craft the RFP or RFQ to generate the best responses/bids.

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Request for Information (RFI) -
          Resource

• Current or prospective opportunities
• Procurement officers looking for products and/or services

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Small Business Innovation Research
              (SBIR)
• Goal:
  • Increasing the participation of innovative and creative U.S. small
    businesses in federal research and development (R&D) programs
  • Challenging industry to bring innovative solutions to reality

• Phases

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SBIR Example

• The Department of Homeland Security (DHS) Science and
  Technology Directorate (S&T)
    • $3.1 million in competitive research awards
    • 29 small businesses awarded $100,000 (each) in preliminary funding
    • 12 states, and Washington, D.C.

* https://www.dhs.gov/science-and-technology/news/2016/06/07/dhs-st-announces-3m-sbir-awards

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DHS SBIR Blockchain Award Topic Areas:

• Security Systems Video and Audio                   • Low-Cost, Real-Time Data Analytics for
  Interoperability                                     Underserved EMS Agencies
• Applicability of Blockchain Technology to          • Real-Time Assessment of Resilience and
  Identity Management and Privacy                      Preparedness
  Protection                                         • Using Social Media to Support Timely and
• Malware Prediction for Preemptive Cyber              Targeted Emergency Response Actions
  Defense                                            • Blockchain Applications for Homeland
• Autonomous Indoor Navigation and                     Security Analytics
  Tracking of First Responders                       • Remote Identity Proofing Alternatives to
• Internet of Things (IoT) Low-Cost Flood              Knowledge Based Authentication and
  Inundation Sensor                                    Verification

  * https://www.dhs.gov/science-and-technology/news/2016/06/07/dhs-st-announces-3m-sbir-awards

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Work With Blockchain Companies Who Have Experience w/SBIRs
    and are looking to develop partnerships and networks

• SIMBA Chain Inc. www.simbachain.com
  • Formed in 2017 from a grant awarded by the Defense Advanced Research
    Projects Agency (DARPA) to
     • Indiana Technology and Manufacturing Companies (ITAMCO) and,
     • The Center for Research Computing at the University of Notre Dame
  In order to develop a secure, unhackable messaging and transaction
  platform for the U.S. military.

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Work With Blockchain Companies Who Have Experience w/SBIRs
    and are looking to develop partnerships and networks

• SIMBA Chain Inc. www.simbachain.com
  • Simba Chain has developed a robust and efficient decentralized distributed
    technology
  • Originally implemented for Defense Department communications.
  • It enabling users across a variety of skill sets to implement secure DApps
    without third parties.
  • The platform is designed to accommodate government and enterprise
    networks.

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Government Marketing Lifecyle

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Selling to the Federal Government

• Research and Planning:
    •   Consider your business’ readiness to sell to the government.
    •   Do you have a successful track record of service delivery and past performance?
    •   Do you have skilled staff who can help you navigate the contractual process?
    •   How do you market to the federal government?
• Responding to the Government request for Service or Product:
    • Identify appropriate Request for Proposals (RFP) or Requests for Quote (RFQ)
      through online portals such as FedBizOpps.

*https://www.sba.gov/

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Selling to the Federal Government
                  (cont)
• Bid Submission:
  • Determine (Stated and unstated) Selection Criteria
      • Low Cost
      • Past Performance
      • Reliability (Risk Mitigation)
  • Understand that:
      • The government wants to trust that you'll get the job done more than it wants to save
        money
      • If you can't get the job done, that will cost more in the long run
  • Clearly define and adhere to “Win Themes”

  *https://www.sba.gov/

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Selling to the Federal Government
                     (cont)
• Contract Award:
   • The evaluation committee will make a selection based on key evaluation criteria
     such as:
       •   Technical Approach
       •   Past Performance
       •   Pricing/Cost
       •   Small Business Evaluation
   • More details on this process can be found in the Federal Acquisition Regulation
     (FAR)

   *https://www.sba.gov/

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Next Steps

• Clearly define goals, plans, assets & liabilities
   • New To Blockchain
   • New To Government
• Get in early
• Understand acquisition rules & regulations
• Contract vehicle

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Clearly define goals, plans, assets &
                     liabilities
                                     • Government Blockchain Association
                                         • Connects:
                                             • People and organizations with blockchain
                                               based solutions to
                                             • Problems typically faced by government
                                               entities
                                         • Conduct and promote networking,
                                           training and educational events
                                         • Publish and support the creation of
New to blockchain or government            content to help members understand
                                           and communicate important blockchain
                                           related information

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Get in Early (Join a GBA Working Group)

• Healthcare                                  • Public Funds Distribution (Welfare,
• Supply Chain / Logistics                      Social Security, Grants, etc.)
                                              • Defense
• Voting
                                              • Legislative & Legal
• Education and Training
                                              • Agricultural
• Cybersecurity                               • Titling
• Government                                  • Inventory Management
  Ontology/Interoperability                   • Cryptocurrency Use & Regulation
• Budgeting, Appropriations &                 • Identity Management
  Tracking Working Group
• Economic Analysis
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Find Good Partners
 GBA Government
Contractor Directory
                                 • Use these resources:                                                     GBA Blockchain
                                                                                                           Platform Directory
                                    • Blockchain Government Contractor
                                      Directory
                                         • Government Marketing
                                         • Contract Vehicles
                                         • Government Relationship Management

                                    • GBA Blockchain Platform Directory
www.gbaglobal.org/organization
        s/categories                                                                                     www.gbaglobal.org/applicationspro
                                                                                                            ducts/categories/platforms

                                       And many more at www.GBAglobal.org

                                  Contact Gerard.Dache@GBAglobal.org to be added to a Directory

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THANK YOU!                                                  www.GBAglobal.org
For more information about this presentation contact:
Joel Neidig
www.simbachain.com

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