About ICON Associates
The Icon Associates is a group of independent consultants affiliated to provide
a broad spectrum of services to our Aerospace, Defense, and Information Technology
clients. Established in 1988, the group has focused on the conduct of Competitive Pricing
Analysis and Strategy Development in the Tactical Systems, Mission Simulation and
Training, and C4ISR programs markets.
The development of a winning pricing strategy transcends the entire breadth and
depth of any new business effort. Consequently,
the skill sets offered by the Icon Associates include technical, operational, financial,
information technology, industrial, strategic planning, pricing, and marketing disciplines.
These
skills are available to our clients, exclusive of the ICON Competitive Pricing
Analyses capability, should they so choose.
The ICON model is a combination of a stochastic top down system, subsystem, and
component estimates, based on the databases and pricing trends developed over the
preceding five years. While only the previous two years specific data are used in the analysis, trends
set over the five year period that reflect competing companies’ pricing and business
strategies are used to establish parameters within which the accuracy of the top
down stochastic approach can be assessed.
The product of the analyses is always a bounded conclusion, never specific.
Parallel with the stochastic analysis, ICON builds a bottom up object oriented deterministic
value to be compared parametrically to the top down approach.
The process is shown in Figure 1 and its
features described in Figure 2. Bottom line experience over more than ten years
of application of the model is 88 % accuracy, 2 sigma. Divisions of large companies,
small businesses, universities, and branches of the U.S. government have used the
application of the ICON model successfully to analyze their issues of interest.
A significant byproduct of the ICON process is an in depth insight into the government planning and budgeting process. While Future Years Defense Planning budgets are important, what is even more important is the strategy and program plan statements made by the Department of Defense Agencies which give private industry insight into specific project plans, similarly to what the Congressional Committees review in the budgeting process. The ICON Databases have been collecting relevant market data on the Defense and Homeland Security markets for 15 years. In recent years, we have been using the ICON process with this extraordinary database inventory to research market opportunities in our fields of endeavor. The products of that market research, and the breadth and depth of the databases have proven invaluable tools to clients facing tough business development investment decisions demanding accurate estimates of the market behavior. These are described subsequently.
Recent Validated Specific Information in Comparison with Relational Information
and Trends Base provides a Top Down Price Projection.
Deterministic from Bottoms Up in Comparison with Relational Information provides
Enhanced Perspective.
Integrated Repository of Average Unit Production Prices, Subsystem, Component, Relational
Management, Service, and Support Information becomes the ICON Archive.
Architecture Designed for Iterative Process as Levels of Abstraction Increase—Drilling
Deeper Increases Information Base, but with Greater Accuracy Probability from Increased
Data bounded by the inquiry.
Concordance of Total View [i.e. products are in context of others and the whole]
= common sense.
ICON MARKET RESEARCH OBJECTIVES, SPECIFIC PRODUCTS, AND DATABASES
- The objectives of the ICON market research process are to obtain specific data
on Government immediate and five year procurement plans based on the Executive
Branch's documented requests to buy, the Congress' approval, disapproval, or
modification thereto, and the analyses by relevant customer advisory agencies,
such as CBO and GAO, on the specifics of the program plan.
- The market research process will provide insight into the "what, why, when,
where, and how" the Executive Branch is justifying to "their customer," the
Congress, all phases of Defense and Homeland Security Acquisition, including:
- RDT&E, including Basic Research, Applied Research, Advanced Technology
Development, Advanced Component Development and Prototypes, System Development,
RDT&E Management, and Operational Systems Development.
- Procurement of Hardware
- Operations & Maintenance, including all Logistics Support
- Personnel
- Military Construction
- Global War on Terror Programs
- The specific products of the ICON market research process are:
- Funding Profiles for Future Years Defense Plan for Services, DoD Agencies, and
Homeland Security in program or technology areas of interest.
- Program Mission, Project Descriptors, and Budget Justification rationale
- Immediate Fiscal Year Program Plans [two years for RDT&E and GWOT]
- Program Accomplishments for the Current Year measured against Justification
Metrics
- Planned Accomplishments Next Two Years
- Enabling Authority [JROC direction, S&T Strategic Plan, COCOM initiatives,]
- Acquisition Strategy and Acquisition Plan
- Current Contract Status, Company or Federally Funded Research Center [e.g.
MITRE], Amount, Type Contract
- Relevant other funding, i. e .Procurement, other RDT&E relevant programs, Joint
Funding
- Congressional plus ups including Earmarks
- Databases:
- Our hardware pricing databases are relational in order to protect the
confidentiality of our clients' prices and pricing strategies. However, when
synthesized in aggregate, one can determine some profound trends in component,
subsystem, and systems prices over both short and extended periods.
- The program databases, including, budgeting, technology risk, program metrics/
accomplishments, operational and logistics support, contract actions, and
political aspects of the various Aerospace and Homeland Security markets are
stored in actual form.
- The server system feeding the databases is set up to automatically sustain the
updates to all of those fields of interest. Of particular interest are the
Executive branch budgeting and five year planning documents and updates, the
Congressional authorization and appropriations activity, and the myriad of
advisory agencies conducting analyses on the budgetary process. All data is in
the public domain and unclassified.
ICON Market Research and Competitive Pricing Model Database Sources
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PEDS/RDDS's
R-1;-2;-3 Justification Data;
P-1, 2 Justification Data
Annual Budget Submittals and Updates
FOIA
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Thomas—Micro detail for the Hill
SARs
CRS/CBO Data "Basae"
CSBA/GAO Data Basae"
Authorization / Appropriations Data Bases
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Hoover Business Data
McCrae's Manufacturing Data
Trade Associations Data Base
National Manufacturing Association
SEC Data Base; 10Q and Profiles/Dow Jones
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Service Procurement Commands
ICE's
Should Cost Studies
State, County, and Local Government Industry Data Basae;
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Company Home Pages
Military Home Pages
Contract Awards—Daily Announcements
(collected in ICON Data Base)
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Washington On-line (Small Businesses)
Federation of American Scientists
Fortune and Business Week DB
Jane's and Global Security
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NATO Government and
EU/Israeli Commercial Sources
Overseas Specialty Consultants
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Graduate Business Schools---Northwestern Kellogg, Penn Wharton, Harvard,
Stanford, Dartmouth Tuck, MIT (Sloan), Carnegie Mellon, USC, UCF, Duke,
Illinois, Clemson, EU Univ
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