Case Studies
Success Story 1
Background
A Canadian propellant manufacturer had maintained a long relationship as a supplier to the U.S. Army for 120mm tank ammunition components. Traditionally, the Army would award 40% of the production to the company to maintain a second source for national security reasons. In the mid-90s, the Army surprised the propellant company by awarding the total production contract to a U.S. government-owned contractor-operated facility for a base year and four option years. The company found itself excluded from this critical U.S. Army business for five years.
Action
 The company enlisted Ross Associates to assist in its competition for the succeeding contract. Having been out of the market for the entire memory of the Army officers in a decision-making capacity, the first task was to re-educate the service on the competitive benefits of creating and maintaining an alternative supplier. Detailed briefs for key decision-makers were created that explained the quality and price advantage of doing business with the company, and the unique guarantees provided by to the U.S. government by the Canadian Commercial Corporation as a prime contractor. Critically-placed Army internal champions were developed and supported in the process of reintroducing the Canadian company.
Realizing that the ammunition procurement was a zero-sum process, and that any business won by the Canadian company would be at the expense of the incumbent U.S. supplier, the local U.S. Congressman began an aggressive campaign with the Army to prevent the loss of jobs within his district. Ross Associates developed a counter-campaign within the Department of Defense, enlisting key officials in the Canadian embassy to intercede on the company's behalf.
While this campaign was ongoing, Ross Associates fostered a teaming arrangement for raw materials with a U.S. company located in the district of a key Armed Services committee member. This arrangement had the effect of neutralizing the competing company's Congressional influence, while creating the added benefit that a substantial proportion of the procurement funding was returning to the U.S. in the form of
subcontracts.
Despite a determined political effort by the competing U.S. company, the Army internal champions were able to maintain their supportive position in part because of the Ross Associates back up materials and talking points provided for key Congressional meetings and hearings.
Results
The Army source selection committee awarded the Canadian company a contract for 50% of the propellant production. Over the life of the contract, the production will be worth more than US$120 million.
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