1 closing the gap by teaming: preparing small business owners to contract with the federal...
TRANSCRIPT
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Closing the Gap by Teaming: Preparing Small Business Owners to
Contract with the Federal Government
Presented by Tony Price
14 August 2013
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•Every contract award is like winning the Super Bowl
•Every new request for proposal is a new Super Bowl
•You will not win every Super Bowl but it sure is nice being in the game
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Overview of Federal Government Contracting
USA – LARGEST Procurer of Supplies and Services Worldwide Around 2,000 buying agencies in the Federal Government USA – Spends $570+ Billion of Annual Budget on Goods and
Services DoD spends $361.3B or about 65% of that USA – Statutory Minimum 23% of Annual Spending to ALL
SBs via 15 USC 644(g)
If Small Businesses want to be “in the game”, they must know how to “play the game” – to successfully “COMPETE and WIN”! You cannot win without a strong and well-rounded team.
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The Federal Procurement “GAME”
• The GAME
• The PROCESS
• The RULES
• The PLAYERS
• The STRATEGY
• Procurement of All Supplies and Services for the United States Federal Market
• Federal Acquisition SYSTEMo 3 Branches of Governmento Checks / Balanceso Taxpayer Fundso Annual Appropriations
• Federal Acquisition Regulations (FAR) and its Supplementso Acquisition Central
www.arnet.gov • Buyers: Contracting Officers
Sellers: Prime Contractors, Subcontractors, Vendors
• Developing a Competitive Winning Proposal Document
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Government and Commercial Procurement
• Four main differences between Government and commercial procurement:
o Government-unique audit and accounting requirements
o Government-unique specifications and standards
o Technical data rights
o Government-unique contract requirements
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Government and Commercial Contracting
State law prevailsFederal law prevailsContract Litigation
Profit/fee not prohibited - negotiable
Cost recovery, no profit/feeSuspension of Work
Usually contains anticipatory profit/fee
No anticipatory profit/feeTermination Clause
FlexibleFinal and ConclusiveAcceptance
ImpliedActualCommitment Authority
Uniform Commercial Code (UCC)
Provides direct input and guidance
Role of Congress/ Judicial Branches
Less formalFormal defined by FARProcurement Structure
Best value/low costPerformance and Social/Economic
Orientation of Procurement
CommercialGovernment
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Tips On Doing Business with Federal Agencies “ or with anybody else for that
matter”
Tip #1 - Do your homework…Surf the web.
Tip #2 - Demonstrate responsiveness
Tip #3 - Understand the opportunities
Tip #4 - Let the client talk. Listen carefully to what they have to say.
Tip #5 - Market project managers, they know the clients and they are the folks bringing in the money
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Tips Continued
Tip #6 - Execute and execute well
Tip #7 - Bad performance is a death sentence to a small business
Tip #8 - Small businesses are important but not at the expense of quality
Tip #9 - Find your own work
Tip #10 - Demonstrate that you know what you are doing
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So where do you start?
• Know yourself: Understand your capabilities (superior product, competitive pricing, outstanding customer service), Be realistic
• Determine your market (geographic, etc.)• Know your customer: Do some homework (see next
slide)o Federal Procurement Processo Websiteso Small Business Administrationo Other advocacy agencies (SBDCs/PTACs)o YOUR SMALL BUSINESS SPECIALIST
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So what can you do?
•Visit potential clients• Get to know your clients’ business• Ask what “keeps them up at night”• Study the money• Don’t forget your subcontractors
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What are “they” looking for in a contractor?
•Highly qualified and capable firm•Address all criteria•Fully articulate your approach•Relevant experience is key•Fully address any weaknesses•Past performance will be important
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What do Primes look for?
• High quality past performance
• Financial stability• Excellent reputation• Reasonable costs• Good safety record• Reliability• Customer focus• Responsiveness
• Relevant experience• Quality management
and people• Able and willing to take
on new work• Willingness to strive for
a win/win situation• Ability to work as a
team
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Capability presentations
• Arrange thru your small business specialist• Sell your capabilities• Product demos• Reference material (brochures, pamphlets, line
cards)• Get a debrief/feedback• Follow-up
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Marketing
• Same techniques apply when marketing to large, prime contractors
• If practicable get general information on an activity before you visito Who should you talk to or meet with?o Respect “Chain of Command”or protocol o Prepare – review web-sites, etc.
• Consider what can your business can do for them?
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Marketing
• Networkingo Chambers, small business groups, professional
societies (SAME) and organizationso Attend seminars or hold your own (be a speaker at
industry functions)o Networking with competitors o News releases
• Your website• Always carry business cards• Referrals
o Ask current clients to refer you to others
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Marketing
• It’s not only who you know that counts, it’s who your clients know that is important, too.
• Relationships can be more important than the product or service sold (especially in a competitive market).
• Learn to accept rejection gracefully .
• Do you believe in your product and company?
• Would you do business with yourself?
Outreach conferences
•Who sponsors Outreach Conferences?o Members of Congresso Various Government Agencieso Chambers of Commerce
•Vendor Days (local emphasis)o Government Credit Cardo Information Technology, Furniture, etco High Tech or Environmental
•Focused Events- Specific Audiences targetedo Specific Acquisition (Pre-solicitation)o Specific small business group (WOSB, 8(a), Vet)
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Subcontracting
• The Small Business Act requires that small business firms have maximum opportunity to participate as subcontractors on Federal contractso Small Businesso Small Disadvantaged Business/8(a)
Historically Black Colleges and Universities (HBCU/MI) - applies to DoD
o Women-Owned Small Businesso HUBZone Small Businesso Service Disabled Veteran-Owned Small Businesso Veteran-Owned Small Business
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Proposal Case Study - Assumptions
• Customer
• Solicitation Type
• Procurement
• Offeror (or Bidder)
• Proposal Due Date
Now how do I get started …?
• U.S. Federal Government Department or Agency
• Request for Proposal (RFP)(FAR Part 15)
• Complex Services or Manufactured Products Based Upon Specs/Dwgs, or Performance Description > $1M
• Service Disabled Veteran Owned (SDVO) o Prime Contractoro Dedicated Team Member
• 30 Calendar Days from Receipt of RFP
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Breaking Down the Proposal Requirements
How to Analyze the RFP …
• Read the Entire Document as a Whole • Dissect the Statement of Work (SOW),
Specifications, Drawings, Technical Descriptions
• Develop Work Breakdown Structure (WBS)
• Review the RFP Instructions & Evaluation Criteria• Responsiveness v. Responsibility
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Breaking Down the Proposal Requirements How to Analyze the RFP …
• Relate the Source Selection Process with the Proposal Development (Point to Point) – Don’t Miss ANYTHING!
• Develop a Compliance Checklist• Correlate Each Requirement to an Evaluation
Criteria• Develop a “Proposal Outline” Handout for the
Kick-off Meeting• Submit Request for Information" (RFI's) as
outlined in the solicitation instructions if the specification is not clear. RFI's usually cut-off about 2-5 days before solicitation closes.
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Identifying the Team Members
• Identify the Best Available Candidates for the Proposal Team• Make Writing Assignments with Members Strengths in Mind • - THIS IS NO TIME TO EXPERIMENT OR TRAIN -
o Technical (or Engineering) Specialisto Management/Operations Specialisto Estimator or Cost(s) Analysto Contracts Specialisto Logistics/Procurement/Small Business Specialisto Quality/Environmental Health & Safety (EH&S) Specialisto Past Performance/Projects & Resumes Specialisto Expert Word Processoro Graphics Designer/Artisto Editor & Proof-Readero Proposal Coordinator
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Identifying the Team Members
• Don’t Overlook the Need for:o Consultants – Subject Matter Experts (SME)
Fill Gaps in Team Manpower & ExperienceAdd Expert Support in Niche AreasProvide Inside Knowledge of Customer & Competitors
o Teaming Partners – Large & Small Business Providers of Supplies and Services
Exclusive v. Non-ExclusiveFormal v. Informal
o Dedicated Subcontractor/Supplier Competitive Poolso Reproduction Function - Internal or Externalo Overnight Courier or Other Transportation Carrier
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Selecting the Team
• Selecting Teaming Partnerso Assess team member capabilities
Business, financial, other resourceso Assess team member past performanceo Assess team member past performance with the cliento Assess team member relationship with the cliento Assess legal constraints
Organizational conflicts of interestDebarments/suspensionsQualification requirements
o Assess team chemistryManagement styles, corporate cultures, strategic visions
• Successful Teaming Qualitieso Compatible contractorso Good teaming agreements in place
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Teaming• Why would small businesses want to team?
o Enables firms to complement each others capabilities
o May enable firms to offer the best combination of performance, cost and delivery
o May enable small businesses to successfully compete for larger scale contracts
o To develop relationships and capture work on multiple opportunities
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Teaming
• Most teams are either:o Prime/Subcontractor relationshipo Joint Ventures
• Prime/Subcontractor Relationship: o Prime is responsible for contract performanceo Government has privity of contract only with the primeo Relationships normally identified before offer is submitted o SBA checks for affiliation
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Following Award - Debriefs and Lessons-Learned …
• When the Customer Announces the Contract Winner – Always Request a Debrief – WHETHER YOU WIN OR LOSE …
• As the Winner – o Learn About What You DID BETTER than Everyone Else –
Strengthso Learn About What May Need Improvement for the Future –
Weaknesseso Continue to Develop a Better Relationship with the
Customero Build Customer Trust and Show Humilityo Begin to Cultivate Follow-On Work – It’s never too early
• FIX THE WEAKNESSES IDENTIFIED IN THE DEBRIEF!
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Following Award - Debriefs and Lessons-Learned …
• As the Unsuccessful Offeror –
o Learn about the Proposal Weaknesses v. the Proposal Strengths
o Learn more about What the Customer Really Wants and Why You Didn’t Provide it THIS TIME …..
o Continue Gathering Business Intelligence (BI)
o Request Info regarding New Opportunities – It’s never too early …
• FIX THE WEAKNESSES IDENTIFIED IN THE DEBRIEF!
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Acronym List ARNET – Acquisition Reform Network BAA – Broad Agency Announcement BD – Business Development BI – Business Intelligence CCR – Central Contractor Registration DFARS – Defense FAR DHS – Department of Homeland
Security DoD – Department of Defense EH&S – Environmental, Health, &
Safety EO – Executive Order FAR – Federal Acquisition Regulations IFB – Invitation for Bid FSS – Federal Supply Schedule FOIA – Freedom of Information Act GFY – Government Fiscal Year GSA – General Services Administration GWAC – Government-Wide Acquisition
Contract
ID/IQ – Indefinite Quantity/Indefinite Delivery
MAC – Multiple Award ODC – Other Direct Cost(s) PL – Public Law RFP – Request for Proposal RFQ – Request for Quotation SB – Small Business SBA – Small Business Administration SDB – Small Disadvantaged Business SDVO – Service Disabled Veteran
Owned SME – Subject Matter Expert SOW – Statement of Work UCF – Uniform Contract Format USA – United States of America USC – United States Code WBE – Women Business Enterprise WBS – Work Breakdown Structure WOSB – Woman-Owned Small Business www.militarywords.com
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Business Opportunities Websites Free/No-Cost
www.sba.gov www.fedbizopps.gov www.grants.gov www.gsa.gov www.arnet.gov www.firstgov.gov www.defenselink.mil www.dla.mil/db/
procurem.htm
Paid Fee Sites www.epipeline.com www.eagleeyeinc.com www.input.com www.onvia.com www.bid-search.com www.softshare.com www.cch.com
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Reference Materials – Self Study
• Federal Acquisition Regulations (FAR)• FAR Part 10 – Market Research• FAR Part 11 – Describing Agency Needs• FAR Part 12 – Acquisition of Commercial Items• FAR Part 13 – Simplified Acquisition Procedures• FAR Part 14 – Sealed Bidding• FAR Part 15 – Negotiated Procurements• FAR Part 16 – Types of Contracts• FAR Part 17 – Special Contracting Methods• FAR Part 19 – Small Business Programs
• Periodicals• National Contract Management Association Magazine & Journal• National Association of Purchasing Managers – Institute of Supply Mgmt.
Magazine• National Defense Industrial Association Magazine• Government Executive Magazine
• Websites• www.arnet.gov • www.firstgov.gov• www.acq.osd.mil
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Questions?
• Ask me now or,
• call me at 410-688-5116 or
• email your questions directly to: