intro to gov contracting
TRANSCRIPT
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Selling to the FederalGovernment
Conrad Valle
Assistant District Director
SBA Michigan District(313) 226-6075, Ext. 254
E-mail:[email protected]
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The federal government purchases over 200billion dollars in goods and services each year
that range from paperclips to complex spacevehicles.In FY 2006 over $415 billion was actually
spent.2006 Michigan placed 43rd in contracts on aper capita basis
2006 in Michigan by Place of Performance$5.3 Billion 25th Place Nationally
2006 in Michigan by Contractor State
$5.7 Billion 20th Place Nationally
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Distribution of Contracts
Sales to Governme nt
Lar e >80%
Large firms represent less than 5% of businesses.
Large firms receive more than 80% of the
procurement dollars.
Total Large and Small Businesses
Small 95%
Large 5%
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Federal Purchases by Category
36% - Supplies and Equipment (Electronic,Transportation, Metal Products)
35% - Services (Engineering, R&D Management,
Business and Health)
19% - Agriculture, Transportation,Communications, Utilities, Finance & Administration
7% - Construction
3% - Wholesale/Retail
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SBA Government Contract
Assistance Programs Federal Agency Contract Goal Program
Prime Contract Program (PCRs)
Size Program
Small Business CategoriesSmall Business Categories Procurement Marketing (CCR & SUB-Net)
Subcontract Program (CMRs) Certificate of Competency Program (COC)
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The SBA is responsible to see that
statutory government wide goals aremet in the aggregate
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The statutory goals: 23 percent of all prime contracts for small businesses
(SB)
5 percent of prime and subcontracts for small
disadvantaged businesses (SDB) 5 percent of prime and subcontracts for womanowned small businesses (WOB)
3 percent of prime contracts for Historically
Underutilized Business Zone small businesses(HUBZone SB)
3 percent of prime and subcontracts for servicedisabled veteran-owned small businesses (SDVOSB)
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Procurement CenterRepresentatives
Counsel small businesses
Review buying activitys SB programs
Review Subcontracting Plans Recommend acquisitions for 8(a) program
Train agency staff in SB programs
Speak at procurement conferences
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Procurement CenterRepresentative
Where are PCRs Located? Federal Agencies and Buying Activities which do
at least $500 Million in Procurements annually.
Nationwide - 47 PCRs at 255 (out of 2,200) federal buying centers: awarded $120 Billion
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Procurement CenterRepresentatives
For Michigan
US Army Tank-automotive and Armaments
Command (TACOM) WarrenPamela Thompson
e-mail: [email protected]
Phone: (586) 574-8124
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Only SBA determines size.
A business entity organized for profit, with a
place of business located in the United States,and which operates primarily within the UnitedStates or which makes a significant contribution
to the U. S. economy through the payment oftaxes or use of American products, material orlabor (13 CFR Part 121)
What DeterminesWhat Determinessmallsmall??(First Criteria)
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North American Industry Classification
System Code (NAICS Code)
http://www.sba.gov/size/
Manufacturers = Number Employee
Services = Annual Gross Sales
What DeterminesWhat Determinessmallsmall??(Second Criteria)
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332 -- Fabricated Metal Product Manufacturing
NAICS Description Size
332116 Metal Stampings 500
332813 Electroplating, Plating, Polishing,
Anodizing, and Coloring 500
332992 Small Arms AmmunitionManufacturing 1,000
332993 Ammunition Manufacturing 1,500(except Small Arms)
332994 Small Arms Manufacturing 1,000
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5413 - Architectural, Engineering,
and Related Services
NAICS Description Size541330 Engineering Services $ 4.0M
EXCEPT Military and Aerospace Equipment
and Military Weapons $23.0M
EXCEPT Contracts and Subcontracts forEngineering Services awarded under
the National Energy Policy Act of 1992$23.0M
EXCEPT Marine Engineering and NavalArchitecture $13.5M
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Small Business CategoriesSmall Business Categories
Small Business (SB)
8(a) Certified Small Business
HUB-Zone Small Business (HUB-Zone)
Small Disadvantaged Business (SDB) Woman-Owned Small Business (WOSB)
Service-Disabled Veteran-Owned Small
Business/Veteran-Owned Small Business(SDVOSB/VOSB)
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Federal Contracts Small Business (self-certify)
Woman-owned Small Business (self-certify)
Veteran-Owned Small Business (self-certify)
Small Disadvantaged Business (pre-certification) 8(a) Program (pre-certification)
HUBZone Small Business (pre-certification)
Certification
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WomanWoman--Owned Small BusinessOwned Small Business
Small business concern, and
At least 51 percent owned by one or morewomen, and
Whose management and daily businessoperations are controlled by one or more
women.
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VeteranVeteran--Owned Small BusinessOwned Small Business
& Service& Service--Disabled VOSBDisabled VOSB
Small business concern, and
At least 51 percent owned by one or more
veterans/service-disabled veterans, and
Whose management and daily businessoperations are controlled byveterans/service disabled veterans.
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Set Aside Programs
FOUR Set Aside categories: Small Business Set Asides (SBSA)
SBA 8(a) Set Asides SBA Hubzone Set Asides
SDVOSB Set Asides
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Other Set Aside Programs
Simplified acquisition - Procurements over$2500 and under $100,000.
Reserved for Small Business
Contracting Officer must justify if not set-aside
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The Federalgovernment recognizes
3 certifications involvingsmall businesses:
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8(a) Small Disadvantaged
Business CertificationHubZone Certification
Small DisadvantagedBusiness (SDB) Certification
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Requirements for 8(a)Certification: Small Business, U.S. Citizen, 51% owned & controlled by Socially &
Economically DisadvantagedIndividuals
Less than $250,000
Personal Net Worth
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Requirements for Certification by SBA
1. Small Business Located in a HUBZonehttp://www.sba.gov/hubzone
2. Owned & Controlled by U.S. Citizen/s
3. At least 35% employees reside in a HUBZone
4. Verified in www.ccr.gov, Dynamic Small BusinessSearch
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Benefits Of HUBZone Program
Sole Source Contracts (
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Small Business, and U.S. Citizen, and 51% owned & controlled by Socially & Economically
Disadvantaged Individuals, and Certified as SDB by SBA (Certification is good for 3years)
8(a) firms are SDBs
Less than $750,000 Personal Net Worth Verify on www.ccr.gov under Dynamic Small
Business Search (DSBS)
Small Disadvantaged Business
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Get Your Foot in the Door
Central Contractor Registration (CCR)
http://www.ccr.gov/
The U.S. Small Business Administration, theDepartment of Defense, the Office of Management
and Budget and the General ServicesAdministration have taken steps to simplify thefederal contracting process by creating an
integrated database of small businesses that wantto do business with the government.
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Get Your Foot in the Door
continued
Certifications ORCAhttp://orca.bpn.gov
Federal Technical Data Solutions(FedTeDS) website
http://www.fedteds.gov
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Where are the Bid
Advertisements?
Federal Contract Opportunities
Government Procurement Search Engine (Vendor Notification Service)
http://www.fbo.gov
Agency Web Sites http://dodbusopps.com/
http://www.gsa.gov http://prod.nais.nasa.gov/pub/fedproc/home.html
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HOW THE GOVERNEMNTBUYS
CONTRACTING METHODS
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SIMPLIFIED PROCEDURES
Federal Acquisition Streamlining Act
(FASA) of 1994
Procurements under $100,000 Over $25,000 still must use www.fbo.gov
Over $2,500 but less than $100,000 reserved
for small business UNDER $2,500 Government Credit Card
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SEALED BIDDING Invitation For Bid (IFB)
Buy is clear, accurate and complete
Bids opened publicly at a specified
time, read aloud and recorded
Contract awarded to low bidder who is
found to be responsive
Used very little
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CONTRACT NEGOTIATION
Request For Proposal (RFP)
Exceeds $100,000
Specs not always exact
Contractors submits proposal on how they plan to dothe work and at what price
Proposals subject to negotiations
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CONTRACT NEGOTIATION
Request For Quotation (RFQ)
Govt is looking into possibility of buying aproduct or service
Not considered a binding contract
Govt issues order based on the offer
Becomes contract when supplier accepts
order
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CHANGES
Best Value
Not necessarily to lowest bidder Award goes to contractor that best satisfies
govt needs
Intent of Best Value must be stated in RFP
Evaluation criteria in the RFP very important
Past performance may also be a factor
CONSOLIDATED PURCHASING
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CONSOLIDATED PURCHASING
PROGRAMS Acquisition Vehicles
Multiple Award Contracts Long termvendor agreements with fewer vendors
Multi-agency Contracts
Government-Wide AcquisitionContracts (GWAC)
Increase use of GSA Schedules Buyers issue orders against existing
contracts/schedules
CONSOLIDATED PURCHASING
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CONSOLIDATED PURCHASING
PROGRAMS(continued)
Agencies that use these programs the most
General Services Administration (GSA)
Defense Logistics Agency (DLA)
Department of Veterans Affairs (VA)
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5
Federal Supply ServiceFederal Supply Service Multiple Award Schedules.
Schedules = Categorized lists of similarproduct/services and suppliers.
Multiple Award Schedule = Governmentawards contracts to various suppliers
offering similar products/services atvarying pre-approved prices.
Basis Of Award = Fair and reasonable
price.
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What are the GSASchedules?
GSA Schedules are the groupings ofcommodities or services identifiedunder the program.
They represent more than four millionproducts and services.
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Why Do I Need A GSASchedule Contract?
You need a contract with GSA when youare trying to sell your products orservices to Federal agencies who only
want to buy products and/or servicesfrom GSA contract holders.
They are not mandatory but they are apreferred source of procurement for mostgovernment agencies.
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GSA Multiple AwardGSA Multiple AwardSchedulesSchedules
Michael KlewickiMichael Klewicki
Patricia ClancyPatricia ClancyPhone: 248-722-1176Phone: 248-722-1176
FAX: 248-547-9699FAX: [email protected]@aol.com
SBASBAs Resources to Helps Resources to Help
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pp
Small Businesses ObtainSmall Businesses ObtainSubcontractsSubcontracts
Commercial MarketRepresentatives (CMRs).
SubcontractingOpportunities Directory
SUB-Net -- Electronic
Bulletin Board forSubcontracting
Opportunities
How Does One Locate aHow Does One Locate a
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How Does One Locate aHow Does One Locate a
CMR?CMR? From the SBA Home Page (www.sba.gov),
click on SBA Programs and scroll down toGovernment Contracting.
From Government Contracting Home Page
(www.sba.gov/GC), click on Contacts andRepresentatives.
The 4th menu selection on the next page will
give you a list of all of SBAs CMRs(approximately 34 individuals)
What Makes a GoodWhat Makes a Good
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What Makes a GoodWhat Makes a Good
Contractor?Contractor? Understand every detail of the statement of work
(SOW) as it applies to your subcontract Understand the Governments expectations atthe prime contract level
Meet the terms & conditions of your subcontract,especially with respect to price and delivery
Keep the lines of communication open
Dont let problems fester Dont let your customer ever be surprised!
What Does the Federal GovernmentWhat Does the Federal Government
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What Does the Federal GovernmentWhat Does the Federal Government
& Prime Contractors Look for in a& Prime Contractors Look for in aContractor/SubcontractorContractor/Subcontractor??
Firms that can provide products or servicescheaper or better (more efficiently) than if theywere made or performed in-house
Good references Socio-economic status
Firms that can help a prime contractor to meet its
socio-economic goals on Government contracts arealways a bonus
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1) Is my business bigenough?
Responsible
Competitive
Patient in dealing withbureaucracy
Committed to invest resources tomarket to the government
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SBA Small Business SizeStandards
500 Employees for most manufacturing
100 Employees for all wholesale trade industries
$6.5 Million for most retail and service $31 Million for most general construction
$13 Million for all special trade contractors
$.75 Million for most agricultural industries http://www.sba.gov/size
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2) Do I have the financialcapability ?
Are you just starting out, short oncash flow, able to make payroll &
other payments without problems?
3) Do I have a quality
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3) Do I have a quality
assurance program ?
Candidate's Existing QA system
ISO 9001, ISO 9002, QS 9000, ASQC-E4
ISO 14001, and ISO 10012-1
4) Does the business have
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4) Does the business have
the technology ?
Computer
Modem
Dedicated telephone line Internet connection
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5) Do you have Internetaccess ?
Electronic bid boards.
IQS Internet Quoting System.
Web invoicing system.
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Yes, Yes, Yes, I can do it !Oh, are you aware of the government
rules? They are called the FAR (FederalAcquisitions Regulations).
http://www.arnet.gov/far/
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There are several on-line training courses that can help you better understandthe Federal Procurement Process:
www.sba.gov/training
Business Opportunities and Guide to Winning FederalContracts
Introduction to Federal Contracts
Insight: Guide to the 8(a) Business Development Program
SBASBAs Key Internets Key InternetAdd
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AddressesAddresses
SBAs Home Page: www.sba.gov(includes a link to SUB-Net)
Government Contracting:www.sba.gov/GC
SDB: www.sba.gov/sdb HUBZone: www.sba.gov/hubzone
Women: www.womenbiz.gov
Also www.women-21.gov
Vets: www.sba.gov/VETS/
Michigan PTACs
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Michigan PTACsMuskegon Area FirstBig Rapids (231) 796-4484
Wayne State UniversityDetroit (313) 577-2241
Genesee Regional Chamber of CommerceFlint (810) 600-1432/1433/1434
Technical Assistance Center ofSouth Central MichiganJackson (517) 788-4680
S.W. Michigan Technical Assistance CenterKalamazoo (269) 381-2977 ext. 3243/3245
Schoolcraft College Procurement TechnicalAssistance CenterLivonia (734) 462-4438
Macomb Community College PTACThumb Area Satellite OfficeMarlette (989) 635-3561, Ext. 227
Muskegon Area FirstMuskegon (231) 722-7700
N.E. Michigan Consortium
Onaway (989) 733-8548
Economic Development Alliance ofSt. Clair County
Port Huron (810) 982-9511
Saginaw Future, Inc.
Saginaw (989) 754-8222, Ext. 232
Downriver Community Conference
Southgate (734) 362-3477
N.W. Michigan Council of
Governments
Traverse City (231) 929-5036
Macomb Community College PTAC
Warren (586) 498-4039/4142/4163/4122
Michigan Minority
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g y
Business Enterprise Center
A Federally Funded Program under the Minority Business Development Agency
U.S. Department of Commerce
and
Operated by The Michigan Minority Business
Development Council
MMBECs & MMBDCs
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Mission Statement
The MMBEC has a collaborative mission statement with MMBDC
to achieve entrepreneurial parity for minority business enterprises(MBE) by actively promoting their ability to grow and compete inthe global economy.
MMBEC is addressing these challenges faced by MBEs by
offering services that provide the keys to entrepreneurialsuccess:
1. Access to Markets (Federal & State contract opportunities)
2. Access to Capital (Debt and Equity financing)
3. Access to Strategic Consulting (bid assistance)
Michigan Small Business &
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Technology Development Center An outreach partner of the U.S. SBA with
offices throughout the state. Provides services to new, emerging and
established ventures Counseling (no-cost)
Training (low-cost)
Research (no-cost)
Special Programs
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for Established Businesses
Venture Forward Entrepreneurial Training
Fiscal Fitness for the Growing Business
PeerSpectives CEO Roundtables
Regional Director Contacts
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(www.misbtdc.org)Wayne / Oakland
Richard King Eastern Michigan
University
734-487-0490
Macomb
Don Morandini Macomb Economic
Development
586-469-5118
Washtenaw (Ann Arbor)
Charlie PennerWashtenaw Community College
734-547-9170
3 THINGS TO REMEMBER
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3 THINGS TO REMEMBER
KNOW YOUR CUSTOMER
Who buys your product or service
How they buy When they buy
KNOW THE RULES
Federal Acquisition Regulations
Contract requirements and specifications Contract history
PERFORM AS PROMISED
On-time delivery
Quality Price
On Receiving a Solicitation
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First 3 Things to do
1. Read It Carefully
AND
On Receiving a Solicitation
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On Receiving a Solicitation
2. Read It Again
AND
On Receiving a Solicitation
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On Receiving a Solicitation
3. Read It Again
Final Thoughts
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Final Thoughts
The Federal Government can be a great
market for many small businesses.BUT
To succeed you must fully commit tolearning all aspects of contracting thefederal government way.
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QUESTIONS?