A manufacturer approached Eide Bailly expecting to buy 70 Azure GovCloud licenses for CMMC compliance. Principal Anders Erickson scoped them down to 3 people by mapping actual CUI flow. The company received purchase orders and occasional schematics from DOD, but everything they manufactured went to commercial markets. Commercially available products don't require the same controls as true CUI, which most SMBs miss entirely.

Anders spent 11 years auditing NSA, NRO, and Homeland Security systems before bringing that federal risk-based methodology to Eide Bailly's SMB clients. The assessment advantage comes from partnerships: when Eide Bailly sees RADICL prepared a company, they know documentation exists and risk is managed, cutting both timeline and cost. While competitors sit on 9-month backlogs, Anders told a client this morning "we can get it done December 1st." The bottleneck isn't assessment capacity, it's C3PAOs trying to execute everything in-house.

Topics discussed:

• Scoping CMMC by mapping CUI flow patterns to distinguish DOD-specific data from commercially available products

• Applying federal audit methodology from NSA and NRO engagements to accelerate SMB assessment timelines

• Building consultant-C3PAO partnerships where shared security implementation knowledge reduces assessment cost and duration

• Categorizing CUI assets versus security protection assets to establish accurate scope boundaries for compliance

• Restructuring C3PAO operations from in-house assessment execution to risk management coordination across external assessors

• Implementing CMMC readiness process: contract review, CUI movement mapping, and asset categorization frameworks

• Evaluating assessment cost drivers including architecture complexity, cloud service provider count, and documentation maturity

• Leveraging risk-based assessment approach versus uniform-depth checkbox audits to focus effort on actual vulnerabilities  

The MIT study showing 95% of AI projects fail to deliver meaningful ROI isn't about the technology, it's about scoping. Jacob Andra, CEO & Founder of Talbot West, treats AI deployment as an organizational systems problem, not a technology implementation. AI solutions should become force multipliers for a process redesign, not the primary intervention itself. 

Jacob also shares his definition of agentic AI: systems making independent decisions as part of larger orchestrations, with quality control agents that must sign off before processes advance. 

Topics discussed:

• Why 95% of AI projects fail to deliver ROI due to inadequate scoping of organizational adjacencies and dependencies

• Differentiating AI capabilities across three categories: no human precedent tasks, force multipliers, and autonomous decision-making within orchestrations

• Applying digital transformation methodology that combines business systems optimization expertise with full-spectrum AI and machine learning capabilities

• Identifying revenue opportunities through process redesign before deploying AI solutions as force multipliers for customer-facing teams

• Clarifying agentic AI definitions from digital employees and autonomous systems to decision-makers within orchestrated workflows

• Implementing quality control agents with specific validation criteria that must approve outputs before processes advance to next stages

• Building human-in-the-loop oversight systems where agent managers monitor multiple AI assistants

AI's democratization of capabilities creates a paradox: the same technology that enables a three-person firm to compete with enterprise operations also enables nation-state actors to target them at scale. Daryan Dehghanpisheh, North America’s GTM Leader for AI Security at Palo Alto Networks, breaks down why defense contractors can no longer operate under the assumption they're too small for sophisticated targeting. 

Daryan’s two-debt framework separates technical debt from organizational debt (the latter being significantly harder to pay off) making security solutions that eliminate both critical for companies that can't afford to build internal security teams. 

Topics discussed:

• Extending vulnerability management processes into AI components like models, agents, and MCP servers using specialized tools

• Distinguishing technical debt from organizational debt with the latter being significantly harder to eliminate when building internal security 

• Targeting defense contractors and SMBs by nation-state actors through democratized AI attack tools

• Evolving ransomware tactics from billing system attacks to destroying operational technology like CNC routers and physical equipment

• Adopting enterprise-sanctioned AI versus uncontrolled employee AI usage on personal devices across networks 

• Addressing supply chain vulnerabilities where small businesses represent the weakest security links for large enterprises in upstream and downstream operations 

Small defense manufacturers face a relationship continuity problem that costs them contracts: your primary contact at a base rotates out every 2 years with no formal transition to their replacement. Trevor Scott, Senior Procurement Manager at HHI Corporation, rebuilds these institutional relationships through a three-pronged approach: trade shows, on-site base visits to understand actual problems, and strategic cold calling to find new decision-makers. His procurement workflow runs from initial customer contact through estimate facilitation to drawing release, where production management takes over.

Trevor reflects on how his welding background creates bidding advantages invisible to pure engineers, including revealing cost traps in RFP drawings that can sink profit margins. He explains how his team uses AI specifically for proposal refinement on government contracts by writing base content themselves, then using AI to clean language and verify requirement coverage across 50-page submissions. He also offers his management test: can the team run independently for 3 weeks without you? For teams built on respect and accountability rather than micromanagement, the answer is yes because people care about outcomes, not merely compliance. 

Topics discussed:

• Managing defense procurement relationships through the 2-year contact rotation cycle using trade shows, base visits, and cold calling

• Building aircraft maintenance stands and fall protection systems for customers across Air Force, Navy, and Army

• Implementing AI for proposal refinement on government contracts while maintaining human-written base content

• Leveraging welding and fabrication experience to identify cost traps in weld symbols and blueprint specifications during bidding

• Outsourcing CNC machining and advanced manufacturing capabilities while maintaining in-house control of core detailing and assembly work

• Creating accountability-based management systems where teams can operate independently for weeks without constant oversight

• Navigating DIB procurement challenges where knowing the right program office contact becomes obsolete within 2 years

Jake Bodily, Director of Business Development at SAE, walks through why their test for automation success is binary: done right, technology spreads through your operation like wildfire; done wrong, you get an expensive paperweight in the CFO's corner office. He offers a cobot failure as a case study: Jake sold 12 collaborative robots to a major manufacturer, but all 12 were donated to education within months because inherent speed limitations killed operational fit regardless of safety benefits. 

His core framework is now: the robot is the engine, the integrator builds the car. Essentially, you're buying the complete solution, not components. Jake also explains SAE's deliberate approach to AI adoption (watching rather than leading), why recent vision system advances justify reopening 10-year-old automation specs, and how Utah's aerospace manufacturing infrastructure positions the Wasatch Front for significant defense production growth.

Topics discussed:

• Testing automation ROI through operational spread patterns: successful implementations scale rapidly

• Understanding cobot limitations when speed requirements override safety proximity benefits in high-throughput environments

• Applying systems integrator perspective where robots function as engines requiring complete solution architecture

• Executing 24-year automation roadmaps in 4 years through proven implementation approaches that deliver consistent ROI

• Evaluating AI adoption strategies by prioritizing proven technologies over hyped solutions in aerospace manufacturing applications

• Reassessing old automation projects using modern vision system capabilities that have significantly advanced since implementation 

Romney Williams, CEO & Board Member, shares how DRYOUT reached Special Forces program-of-record status within months of a single introduction, bypassing the typical valley of death: already having domestic manufacturing partnerships and proven production capabilities from their consumer product line. It also helped that their moisture extraction technology absorbs 3,400 times more than DoD-standard silica gel in third-party testing.

The strategic sequencing matters: DRYOUT spent years manufacturing tech sleeves and firearm storage bags before military conversations began, building cut-and-sew partnerships across the United States and refining their patented material sandwich construction. When Special Forces saw their helmet bag, qualification barriers that typically kill early-stage contractors were already cleared. 

Romney shares active problem sets his team is engineering for, including night vision goggle pouches that prevent condensation damage, as well as his framework for choosing A-grade teams over A-grade markets.

Topics discussed:

• Deploying ingredient brand business models that license patented technology to OEMs rather than selling direct-to-consumer products

• Achieving Special Forces program-of-record status within months through introductions that bypassed traditional procurement timelines

• Building domestic manufacturing infrastructure through consumer product development before pursuing military contracts to eliminate qualification delays

• Engineering helmet storage systems that prevent lens fog in night vision goggles and protect mission-critical communications gear

• Designing moisture extraction panels for drone controller hard cases that absorb 3,400 times more moisture than DoD-standard silica gel

• Securing international IP protection before NATO system integration to balance mission opportunities against commercialization strategy

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Draper scaled from 0 to 23 employees in Utah within 2 years by rejecting the relocation model, building classified engineering facilities where talent already lives rather than forcing engineers to their headquarters in Cambridge, MA. Their 30,000-square-foot Hill Air Force Base facility targets strategic systems work with full classified infrastructure for development and production. Paul Hendrickson, Program Director of Air Force Strategic Systems & Utah Campus Lead, walks through how Draper Sparks directly attacks the funding gap: pairing small businesses with defense customers and capital in a single program, explicitly designed for companies that can't access traditional defense channels yet.

Paul also challenges the standard requirements process. His method is to use "beginner's mind" listening to surface actual operational gaps, then counter-propose with "Would an 80% solution today solve your problem instead of waiting years for 100%?" This reframes stovepiped transactional relationships into iterative partnerships where minimal viable capabilities beat perfect future solutions. On AI in defense engineering, his warning targets a specific risk: collapsing 60-80 engineer design teams down to 2-3 engineers with AI tools eliminates the innovation that emerges when diverse technical minds collaborate on subsystems. 

Topics discussed:

• Scaling defense engineering campuses by building classified facilities where talent lives rather than forcing relocation

• Deploying Draper Sparks program to connect small businesses with defense customers and capital to bridge funding gaps

• Transitioning from military customer roles to contractor positions while maintaining relationships and understanding warfighter needs

• Proposing 80% solutions deliverable today versus 100% solutions years away through beginner's mind listening and iterative partnerships

• Addressing small business challenges with budget cycles, POM drills, and multi-year funding gaps between SBIR and production contracts

• Implementing early-stage cybersecurity design partnerships to protect IP and avoid expensive technical debt from late-stage additions

• Managing AI workforce reduction risks where 2-3 engineers with tools replace 60-80 engineer teams that drove innovation

• Deploying internal GPT-style systems to eliminate data mining labor and free senior engineers for breakthrough technical work  

Adam Kjar, Owner & CEO of Mountain CNC, deployed a post-acquisition playbook that flipped the typical integration approach. He started off by buying 100% ownership, which eliminated founder attachment to legacy processes, then he asked his team what had frustrated them for the last decade and systematically automated those pain points. Two estimators now handle the workload of five. New horizontal palletized machines run lights-out for 20 hours daily versus the previous 8-hour manual operations on three-axis mills.

Adam also offers his workforce strategy, which deliberately targets mid-career machinists who've been in the trade since 17-18, addressing the industry's demographic gap between retirement-age veterans and inexperienced juniors while guaranteeing customers 20-25 years of stable supply relationships. This addresses what Adam calls the industry's biggest customer risk: suppliers who liquidate wholesale when owners retire, leaving 30 days to find new sources for legacy parts produced for 20+ years. 

Topics discussed:

• Acquiring CNC machine shops using search fund methodology targeting $1-2M EBITDA businesses with strong mid-level management 

• Addressing the 70% retirement crisis where CNC shop owners lack succession plans, creating supply chain continuity risks

• Implementing lights-out automated machining with horizontal palletized systems running 20 hours vs. 8-hour manual operations

• Building workforce strategy targeting mid-career machinists with 20+ years of runway to avoid industry demographic gaps

• Operating as remote CEO through 7-10 key metrics, 5 on-site days monthly, and empowering team autonomy for operations

• Shifting from acquisition roll-up strategy to organic growth by winning customer market share from retiring competitors  

Vector bypasses traditional procurement by selling capability on service contracts using O&M dollars instead of procurement funding, enabling delivery in the year of execution rather than multi-year acquisition cycles. Their "modern warfare as a service" model means customers don't purchase drones as end items; they contract for training, tactical integration, product development, and drone delivery under a single service umbrella. This structure creates a legal pathway to iterate hardware without going back through requirements validation. When an attritable system gets consumed, Vector replaces it with an updated version incorporating recent battlefield innovations.

Andy Yakulis, CEO & Co-founder, shares how his team maintains rotational presence in Ukraine, Israel, and Taiwan, with permanent personnel observing tactical employment of unmanned systems. When they identified fiber optic cable integration in Ukrainian FPV drones, they incorporated it into a US military cave navigation training contract within weeks. Vector is also proposing a contractor-maintained stockpile model where the government purchases capacity but Vector retains physical custody and refresh responsibility, maintaining battery viability and upgrading internal components as technology advances while delivering tranched quantities as needed.

Topics discussed:

• Selling drones through service contracts using O&M dollars instead of procurement funding to enable year-of-execution delivery timelines

• Building "modern warfare as a service" that bundles training, tactical integration, product development, and hardware

• Iterating attritable systems without requirements revalidation by replacing consumed drones with updated versions

• Maintaining rotational personnel in Ukraine, Israel, and Taiwan to observe battlefield tactics and incorporate innovations within weeks

• Adapting Ukrainian fiber optic cable integration for US cave navigation training, bypassing jamming with 10-kilometer physical connections

• Proposing contractor-maintained stockpile models where Vector retains custody and refreshes batteries, components, and capabilities for government-owned inventory

• Designing open modular architecture platforms that integrate various payloads and autonomy levels rather than purpose-built systems

Rick Sanford, CEO of Complete Aerospace Solutions, Inc., is deploying capital through reverse mergers where founders retain 100% equity ownership while accessing growth funding. They provide capital for scale, but the original ownership keeps their equity and board control. Instead of taking upfront equity stakes, Complete Aerospace participates in a small percentage of annual growth each year until exit. The bottleneck isn't capital availability, however; the constraint is finding companies fast enough to deploy it. 

They're currently in due diligence on 20 companies with 50 more in the pipeline and operating across five verticals leveraging syndicate partners who've already completed due diligence on companies "too small for them to acquire" (under $500M) but still need patient capital. Rick accomplishes this by verifying stated requirements match actual mission intent, bringing commercial solutions forward rather than getting paid to study problems, and prioritizing execution ruthlessly because "smart engineers with enough time and money can build anything, but there's never enough time or money."

Topics discussed:

• Deploying capital through reverse mergers where founders retain 100% equity while taking a percentage of annual growth until exit

• Structuring aerospace investments for companies generating $10-200M revenue with positive EBITDA facing the valley of death funding gap

• Leveraging partners who completed due diligence on sub-$500M companies too small for acquisition but needing patient capital

• Operating five vertical-specific holding companies with dedicated subject matter experts for technical risk adjudication

• Bringing commercial-first innovation to defense programs where hardware investments generate dual revenue streams from commercial and government applications

• Verifying stated requirements match actual mission intent to ensure the ask is commensurate with expected outcome

• Prioritizing execution when engineers face limited time and money constraints by focusing ruthlessly on delivery over endless studies

• Enabling the "and equation" where small agile innovation teams complement large systems integrators rather than competing for the same opportunities