Doing Business with the Air Force

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Doing Business with the Air Force

  1. 1. 319 Contracting FltDoing Business With the U.S. Air Force
  2. 2. CONTRACTING’S ROLE Business Advisor Execute contracts for:  Construction, Commodities, Services Manage Government Purchase Card Program Support Worldwide Contingency Operations
  3. 3. FACTOIDS: No Halliburton sweetheart deals at GF— $$ competed & go mostly to SB 81% comp rate & 73% total $ to SB FY11 GF exceeded 24 of 25 SB goals FY07 - 11 To date FY12: SB 91% SDB 63% (> all goals) WOB 50% HUB 23% SDV 8% SBA SB prime contract grade 147% (“A+”) for FY11
  4. 4. WHAT WE BOUGHT FY11 Obligated $26.8M / 411 actions total: $13.3M construction $12M services $1.5M commodities This does not include $$ from other buying activities:• Army Corp of Engineers (high $ facilities)• AF Center of Environmental Excellence (housing)• AF Exchange Services (BX)• Defense Commissary Agency (grocery store)
  5. 5. What a Business Should Do? First thing: Register at www.ccr.gov • We CANNOT award an order/contract to a vendor unless they are registered in CCR • Annual renewal or expires • Register your business status, e.g. SB, 8(a), … - Keep firm’s profile up to date • Focus on your NAICS codes as they say what your firm does - Important as buyers search by NAICS code - Recommendations made to C.O. regarding specific buy set-aside based on such - Do NOT have to be registered for a particular NAICS in CCR to submit offer on a solicitation
  6. 6. What a Business Should Do? #2: Respond to sources sought notices at https://www.fbo.gov/ • We survey marketplace for procurement set-aside purposes—e.g. HUB, SDV, etc. • If you’re definitely interested & it’s up your alley then respond - If lukewarm at best don’t respond • With response include your experience/capabilities in reference to the buy - Be sure to provide all requested info • Collective responses determine buy set-aside
  7. 7. What a Business Should Do? Build a reputation as excellent contractor • Price - not always most important factor • Product quality – equal or greater than price • People talk - customer service matters  Market yourself and product line • Ask for feedback--what you sell may not be what the customer wants • Focus on certain sector(s)/niche for your firm; you can not be all things to all people
  8. 8. What a Business Should Do? Help the customer help us  We need clearly defined requirements  Develop brochures that clearly describe what you are selling  Product attributes  Extra’s--what separates your product from your competitors?
  9. 9. What a Business Should Do?• Accept Gov’t Purchase Card (GPC) • # 1 benefit to industry is quick payment • Used only for purchase actions valued at < $3K (if open market) and > $3K but < $25K ( if pre-priced contract, e.g. GSA) • FY11: $9.5M / 13.5K transactions / 185 cardholders • Consider offering discount to GPC holders
  10. 10. What a Business Should Do? Consider becoming a certified 8(a), HUBZone or woman owned small business—if qualified - We do direct set-aside buys for these categories Small Business and Service Disabled Vet are self certifying If interested/more info, contact SBA
  11. 11. What a Business Should Do? Get to know the people who can help you most--the contract buyers  Especially critical to you at FY end when a good chunk of Gov’t $$ are spent  Check in periodically with them–e/g. once a month or so
  12. 12. What a Business Should Do? Consider establishing a contract with GSA--especially if you sell supplies - Simplified process for obtaining commercial supplies & services at prices associated with volume buying Benefit: - It makes you a better option to GPC holders as they can procure up to $25K ($3K if open market) - Fed buyers sometimes target only GSA contract holders on buys (vs. open market at fbo.gov/)- Need more info? Go to--- Go to “Getting on Schedule” and “GSA Schedule Frequently Asked Questions” at www.gsa.gov/
  13. 13. What a Business Should Do? Doing business with AAFES: -- Army Air Force Exchange Services or “BX” -- The BX is a department store at each base/post to serve the military & their families -- Also have a concession program available For more info, go to www.aafes.com
  14. 14. What a Business Should Do? Info Tech services & equipment (computer related) requirements: - Procured thru the Air Force NETCENTS & AFWay contracts - Find out more at https://afway.af.mil/ Want info on NETCENTS & AFWay small business opps? - Contact Denise Baylor at: denise.baylor@gunter.af.mil / (312) 596-4137 - Contact Cynthia Crews at: cynthia.crews@gunter.af.mil / (312) 596-1645
  15. 15. What a Business Should Do?• Develop a webpage: - Invaluable for market research by buyers - Include product/service descriptions - List experience & capabilities - List points of contacts
  16. 16. What a Business Should Do? When you feel you’re treated unfairly?  Talk with contracting office mgmt:  Your best friend is office SB Spec.  We can only fix it if we know about it!
  17. 17. HOW WE BUY• All requirements estimated > $2,500 must be competed -- Receipt of two or more viable offers = competition• If <$25K/uncomplicated, oral RFQ’s are acceptable• If a requirement is open market/estimated >$25K it MUST be advertised & published* at https://www.fbo.gov/ -- May be a formal Request For Proposal (RFP) - It will first be advertised & then the RFP will be posted -- May be a *synopsitation (combined synopsis & solicitation) - This is the only posting (unlike with an RFP) GF policy is to post ALL buys >$10K at fbo/gov
  18. 18. FedBizOps http://www.fedbizopps.gov/• fbo.gov is the single government point-of-entry(GPE) for Federal gov’t procurement (open market)opportunities >$25K.• Gov’t buyers are able to publicize their businessopportunities by posting info directly to www.fbo.gov/• Thru one portal – federal business opportunities(FBO) - commercial vendors seeking Federalmarkets for their products & services can search,monitor & retrieve open market opportunitiessolicited by the entire (not just DoD) Federalcontracting community.
  19. 19. Federal Business Opportunities at www.fbo.gov/ How to get there???- Go to site, click on “Opportunities Can search for buys based on NAICS, keywords,place of performance, type set-aside, agency, etc.- Register for automatic notices based on your NAICScodes (smart to check site regularly)
  20. 20. What a business should do?• Be available & responsive— - A cell phone, voicemail & email are a necessity• Be professional & courteous--we should be too• Call the buyer or C.O. if you have questions regarding a solicitation—no question to dumb! - We’re here to assist
  21. 21. Things we can help with• Advice concerning acquisition procedures• Information regarding proposed acquisitions• Instructions on preparation of proposals -- i.e., interpretations of standard clauses, representations & certificationsThings we can’t help with• Pricing—that’s up to you
  22. 22. Some of the Products we buy:• Tools (most via GPC)• Furniture• Computers (minimal)• Office products/equipment - most via GPC• Special clothing• Misc equipment•Order of Preference:• GSA Advantage first for many items• AFWay & NETCENTS first for computers
  23. 23. Some of the Services we buy:• Miscellaneous non-recurring small dollar (< $25K)• Grounds Maintenance• Refuse and Recycling• Family Housing MaintenanceOrder Of Preference:• JWOD (Non-Profit Agencies)• 8(a)/HUB/SDV (rule of parity)• Small Business• Unrestricted
  24. 24. Construction our office buys:• Repair/Renovation Projects• Paving• Roofing• Various Building ProjectsOrder of Preference: • HUB/8(a) /Service Disabled Vet – rule of parity • Small Business • Unrestricted
  25. 25. Current Large $$ Recurring Buys at GF:* DEMOLITION IDC (task orders) - SB set-aside, RFP was posted fbo.gov, revised offers rcvd - contract award next month* LAW ENFORCEMENT SVC ($1M - $5M) - set aside still TBD (likely HUBZone) - post RFP at fbo.gov in May, contract start 1 Oct* REFUSE/RECYCLING COLLECTION ($100K-$500K) - set aside still TBD (likely unrestricted) - post RFP at fbo.gov in May, contract start 1 Oct
  26. 26. Current Large $$ Recurring Buys at GF:* FIRE PROTECTION/PREVENTION SVC ($5M - $10M) - set aside still TBD (likely SB), post RFP at fbo.gov Jun* FIRE EXTINQUISHER MAINT SVC (<$100K) - SB set-aside, post RFP at fbo.gov in Apr* AIRFIELD STRIPING ($100K - $500K) - SB set-aside, post RFP at fbo.gov late Apr/early May* PATHOLOGICAL WASTE DISPOSAL SVC (<$100k) - Unrestricted, post RFQ at fbo.gov in Apr, award in May--Potentially $3.7M ACC $$ to flow down for miscellaneous projects, first increment $1M
  27. 27. COMMERCIAL PROCEDURES• Almost all commodities/supplies we buy are commercial off the shelf (COTS)  Gov’t performs market research -- Typical terms and conditions required to be used
  28. 28. COMMERCIAL PROCEDURES• More than just finding sources -- Test market for better (or equal) product(s) -- Test market for better delivery terms -- Test market for prices -- Test market for discounts• Contractors can suggest a better value• Cannot commit during market research -- Just asking questions
  29. 29. HOW WE BUY SERVICES ANDCONSTRUCTION???
  30. 30. BEST VALUE ACQUISITIONS- Cheapest not necessarily the best value -- We have NOT done a sealed bid on a formal large $$ construction & service buy in perhaps a decade- Use specific criteria to assess risk - Factors: -- Performance risk (based on past performance) -- Technical- Performance history may be equal to or moreimportant than price- Sometimes a trade off…higher cost for excellentperformer (or higher rated product)
  31. 31. PERFORMANCE HISTORY- Past performance record -- Key indicator for predicting future performance - Used to evaluate ktrs for award - Important for service contracts as no bonds -- Predictor of performance - Quality & customer satisfaction - Powerful incentive for ktrs to perform well
  32. 32. Evaluation Factors Every acquisition for services & construction is guided by evaluation for award section The selection process must follow the selection criteria or Gov’t risks protest/loss  Selection criteria can include:  Quality, delivery, style, warranty etc…  Criteria listed in section M if construction  Criteria listed in FAR clause 52.212-2 if commercial service/product  The customer works hand in hand with Contracting in the development process
  33. 33. Selection Process Both price & technical are evaluated  C.O. is required to write an integrated best value decision  Combines past performance and technical scores integrated into the decision document
  34. 34. What if I don’t win?? Ask for a debrief - Boeing got this from the AF on first tanker contract, filed protest, & got award overturned (AF had to re-solicit) If you disagree with the decision, appeal at the agency level first (not mandatory) before going to GAO  Someone removed from the process may have a different perspective
  35. 35. Other Programs
  36. 36. Government PurchaseCard (GPC) GPC buys between $3K and $25K  Cardholders must get CONF approval first!  There will be times, like FY end, when we will authorize one-time expenditure increases  Must use pre-priced contract (i.e. GSA) if >$3K  Contracts need to comply with Federal law
  37. 37. GPC Direct Vendor Discount GPC Discount Program  65 local sources/vendors currently signed up--offer set discounts  List posted on 319 CONF website  Goal is to save cardholders time & money  Identify local best prices/services available  Interested? - Contact Ms. Jennifer Richardson (701-747- 5682) or Ms. Carolyn Cooper (701-747-5311)
  38. 38. More Useful Info & Assistance http://www.selltoairforce.org - Look for Small Business Spec for each AF base - Check out “Long Range Acquisition Estimates” (LRAE) at this site for each baseProcurement Technical Assistance Center (PTAC), Small Business Admin & State Procurement Offices - Provide multiple services/assistance free of charge or for nominal fee
  39. 39. As 319 CONF Small BusinessSpecialist, it’s my job to see that theSB Program is supported & carried out at GFAFB QUESTIONS???

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