#47 – From Navy Mustang to GovCon Cyber CEO (Erica Dobbs – Dobbs Defense Solutions)

Most MSP leaders understand cybersecurity as a technical discipline—controls, tooling, hardening, response. But the regulated world flips the problem upside down: the hard part is not “doing security,” it is building a business that can reliably deliver secure outcomes inside procurement rules, compliance constraints, and political volatility. This episode frames that reality through Erica Dobbs’ journey from Navy leadership to GovCon cyber CEO, and it forces a useful question for MSP owners: Are you running a services company, or are you running an operating system that can survive scrutiny, audits, and unpredictable funding cycles? If you serve regulated industries—or want the option to—this conversation aligns with BMK’s perspective on how MSPs improve cybersecurity posture and network defense and why leadership discipline matters as much as technical competence. It also reinforces the value of a structured strategic planning framework for business performance—because regulated clients do not reward improvisation.

Erica’s lens is especially relevant for MSPs because the GovCon ecosystem is an exaggerated version of what is already happening in the commercial market: buyers demanding provable security, tighter contractual language, and higher accountability for outcomes—while simultaneously pressuring price. The “lowest price technically acceptable” pattern she describes is not unique to federal bidding; it’s the same commoditization trap MSPs fall into when they sell effort instead of leadership. The deeper point is operational: if your delivery model depends on heroics, tribal knowledge, or underpricing to “win,” you will eventually trade margin for survival. The alternative is to build a company that can price with confidence, document with integrity, and execute with repeatable standards—even when the environment is unstable. That is the purpose of an operating system, and it’s why the BMK Vision platform exists: to make leadership, metrics, accountability, and execution durable enough to scale under pressure.

Why regulated markets punish “good intentions” in service delivery

In regulated environments, “we’ll figure it out” is not a strategy—it is a liability. The buyer is not only evaluating your technical capability; they are evaluating whether your company can be trusted to operate inside a system of rules that outlives any one leader, contract, or funding cycle.

That is why Erica’s story matters to MSP owners: it’s not about government contracting as a niche; it’s about what happens when external accountability becomes non-negotiable. The firms that win consistently are the ones with:

• Operational maturity that survives audits, turnover, and scrutiny
• Financial discipline that prevents “winning” from becoming a slow bleed
• Leadership systems that don’t depend on rank, charisma, or constant firefighting

The real lesson of “lowest price technically acceptable”

The federal phrase may be new to some MSPs, but the pattern is familiar: buyers optimize for price, providers respond by cutting scope, and everyone pretends the outcome will be the same. It rarely is.

For MSPs, the trap usually shows up as:

• Discounting to win, then “making it up” with overwork and under-delivery
• Overpromising outcomes while underfunding delivery standards
• Confusing activity (tickets closed) with impact (risk reduced, uptime stabilized, decision-making improved)

The strategic move is to stop selling effort and start selling leadership—clear scope, clear standards, clear proof, and clear economics. That is how you escape the commodity loop without relying on a “better stack” as the differentiator.

Procurement volatility is a cashflow test disguised as politics

Government shutdowns are easy to treat as “someone else’s problem” until you realize they expose a universal truth: if your revenue depends on someone else’s calendar, your business must be structurally resilient.

Whether you sell to federal agencies, healthcare, finance, or any compliance-heavy vertical, the question is the same: can your company survive delayed decisions and still keep its promises? The answer depends less on your technical bench and more on your operational design—forecasting discipline, contractual clarity, and financial visibility that lets you lead proactively instead of reacting to surprises.

Pricing mistakes are not “rookie errors”—they are strategy failures

Erica’s candid admission about underpricing early work is a common MSP storyline: trying to be “a good partner,” trying to win, trying to get traction. The cost is predictable: margin collapses, delivery becomes frantic, and leaders start confusing hustle with progress.

A healthier model is simple but demanding:

• Know your market rates and your true cost structure
• Price to sustain delivery standards—not just to sign agreements
• Use proof and outcomes to justify value instead of competing on discounting

Episode highlights

• 00:00:11 – From E1 to O5: what military leadership teaches about operating complex teams.
• 00:02:06 – The non-technical core of business ownership: leading people well.
• 00:12:31 – Why COVID changed access and transparency for small contractors.
• 00:18:03 – “Lowest price technically acceptable” and the hidden cost of commoditized procurement.
• 00:30:00 – Shutdowns, funding volatility, and the downstream impact on small firms.
• 00:38:59 – Underpricing, market rates, and the operational consequences of “winning wrong.”

About the guest: Erica Dobbs

Erica Dobbs is the founder and CEO of Dobbs Defense Solutions, a government contracting firm specializing in IT and cybersecurity solutions for federal agencies. After beginning her Navy career as an enlisted sailor (E1), she rose through the ranks to become a Navy Commander (O5), serving in senior leadership roles aboard aircraft carriers and major operational commands. Her experience managing large teams under high-stakes conditions shaped her approach to leadership, execution, and building a mission-driven business in the GovCon cybersecurity space.

Connect with Erica on LinkedIn →

Frequently asked questions

What should MSPs learn from government contracting and regulated markets?
Regulated markets reward operational maturity: documented standards, financial discipline, and delivery that holds up under audits, reviews, and delayed decisions.

Why do “lowest price” buyers create risk for service providers?
Because pricing pressure forces tradeoffs. If you win on discounting, you often lose later in margin, delivery quality, team health, and client trust.

How do MSPs avoid being commoditized on cybersecurity?
By selling leadership and outcomes (risk reduction, resilience, governance), supported by clear standards and proof—not by selling tools or effort.

What’s the biggest pricing mistake MSPs make when entering compliance-heavy verticals?
Underpricing to “get in,” then discovering the documentation, process, and accountability burden is far heavier than typical commercial delivery.

How do shutdowns and funding delays translate to MSP business risk?
They expose cashflow fragility. If your model cannot handle delayed approvals or payment timing shifts, growth becomes a stress amplifier instead of a stabilizer.

Related resources from Bering McKinley

• How MSPs improve cybersecurity posture and network defense
• Organizational strategic planning for business performance

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Want to continue the conversation?

If you’re building an MSP that needs to perform under pressure—regulated clients, higher scrutiny, tighter expectations—this is the work: leadership discipline, financial visibility, and an operating system your team can execute without heroics.

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