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Targeting And Winning Federal Contracts

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Brief overview of how small businesses can position themselves to compete for federal contracts.

Brief overview of how small businesses can position themselves to compete for federal contracts.

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  • 1. Targeting and Winning Federal Contracts CINCINNATI AMA B2B SIG NOVEMBER 12, 2009 KEN THOMAS ROBBINS, INC.
  • 2. Is no different than targeting and winning private contracts Sort of……
  • 3. $500,000,000,000
  • 4. The Federal Government • Procures $500,000,000,000 / yr – 30% Products / 70% Services – By law must pay in <30 days (often pays in 10-14) – “Use it or lose it mentality” still applies – Federal Acquisition Regulation (FAR) stipulates all solicitations <$100k where research shows that two or more small businesses are capable of performing the work, be set aside exclusively for small businesses to compete • 39% ($195 B) Small Business Set Aside Goals – 20% Small Business – 6% SDB and 8(a) – 5% woman owned – 3% HUBZone (Historically Underutilized Business Zone) – 3% service disabled veteran owned – 2% veteran owned • >1,100 Federal Agencies
  • 5. Small Business Defined • Depends on the type of business you are in • NAICS Codes • Based on # of Employees or annual Revenue – Flooring Manufacturers - <500 employees • 500 employees is limit for ~75% of manufacturers – Flooring Contractors - <$14MM/yr – Wholesalers - <100 employees – Marketing consulting, Ad agencies, PR firms etc. - <$7MM/yr (3 yr average)
  • 6. Getting Started D-U-N-S Number Universal 9-digit business identifier Obtain thru www.ccr.gov free Central Contractor Registration Small Business Designations &/0r Registration (if req’d) Online Representation and Certifications Application (ORCA)
  • 7. Getting Support Small Business Administration Office of Small & Disadvantaged Business Utilization (OSDBU) Each agency has an OSDBU, which is there specifically to help you. Forecast of Procurement Opportunities Procurement Technical Assistance Centers Minority Business Development Agencies And many more…….
  • 8. Fiscal Year 2009 Goals As of 10/3/08 Department of the Interior BUSINESS ECONOMIC DEVELOPMENT PROGRAMS TOTAL DOLLARS $2,574,292,893 $2,687,126,635 $2,456,713,076 FY'09 SUGGESTED * FY'06 Pct. * FY'07 Pct. FY'08 Pct. Average Pct. GOALS Small Business Goal : 56.10% 56.10% 55.49% 55.90% 55.00% Actual : 54.10% 58.80% 55.34% 56.08% Small Disadvantaged Business Goal : 10.80% 19.00% 5.00% 11.60% 5.00% Actual : 17.40% 21.30% 19.96% 19.55% 8(a) Program Goal : 8.30% 8.30% 2.50% 6.37% 2.50% Actual : 12.10% 13.40% 12.48% 12.66% HUBZone Goal : 6.00% 6.00% 3.00% 5.00% 3.00% Actual : 9.90% 11.30% 10.36% 10.52% Women Owned Business Goal : 6.70% 6.70% 5.00% 6.13% 5.00% Actual : 9.30% 10.50% 10.70% 10.17% Service Disabled Veteran Own Sm/Bus. Goal : 3.00% 3.00% 3.00% 3.00% 3.00% Actual : 1.30% 1.40% 2.58% 1.76% * FY'06 & 07 data was reproduced on September 10, 2008. (This was a result of the corrections made because of incorrect coding of size determination.) Percentages in RED indicates a goal not met.
  • 9. Finding Opportunities 25% of Small Business Set-asides had no bidders 25% of Small Business Set-asides had one bidder
  • 10. FBO search example - Small Business set asides 541430 - Graphical 541850 – Display Design Services Advertising 541630 – Marketing 541860 – Direct Mail Consulting Advertising 541618 – Other 541870 – Advertising Management Consulting Materials Distribution 541810 – Advertising 541890 Other services Agencies related to advertising 541820 – PR Agencies 541910 – Mkt Rsch & 541830 – Media buying Public Opinion Polling Agencies 541920 – Commercial Photography
  • 11. A Word About GSA Schedules GSA = Purchasing Agent Available for use by every federal agency and some states Purchased $35.8 B in ‘07 and increasing Somewhat cumbersome and time consuming to pursue Estimated 200 hours and 12-18 month process Pre-approved, negotiated pricing Meets all gov’t competitive requirements Favors small businesses Often minimizes the # of competitors Can be contracted directly with Schedule holder if <$100k w/o further competition Must compete to 3 schedule holders if >$100k
  • 12. How the Federal Gov’t Buys “Use it or lose it” still exists Understand Fiscal Year seasonality in purchasing behavior Micro-Purchases <$3k No competition required Simplified Acquisitions <$100k Can be competed among at least 3 sources Small Businesses preferred If less than $25k usually not posted
  • 13. How the Federal Gov’t Buys Sole Sourced Sealed Bidding (aka “Invitation for Bid) Low bid wins, firm fixed price Negotiated Procurement “Best Value” – cost/technical tradeoff ID/IQ Contracts Multiple Award Contracts GSA schedule for example
  • 14. Solicitations Combined synopsis/solicitation Invitation for Bid (IFB) Request for Proposal (RFP) Request for Quote (RFQ) Key oppty to use Quals to promote “best value” not just cost Sources Sought Agency seeking info about industry capabilities to determine set- asdies sole source opportunity Request for Information (RFI) Seeking info before putting out solicitation Opportunity to “shape the bid” to your advantage
  • 15. Decide How to Engage Prime Contractor Large Primes are required to achieve Small Business Goals Many GC’s have people dedicated to ensuring they meet the goals Subcontractor Don’t necessarily have to have their CCR, but having one helps separate you from other subs who don’t Utilizing your small business status is very helpful to the GC’s as they can include this info in their bids Individual Re-seller Brokers a deal as a “small business” seeking and sourcing products and services provided by others who would not qualify as a small business. Perfect for the entrepreneur. Anyone can become a Re-seller.
  • 16. Positioning your company Market your smallness Create a Capability Statement Basic company overview NAICS codes Unique Selling Proposition Reference List - Projects List DUNS and CAGE #’s Small Business Status GSA Contract Number and GSA logo if applicable Develop relationships: Contracting Officer Program Manager General Contractors / Prime Contractors Develop a government specific web site or landing page: Averagejoesgovernmentbusiness.com

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