Doing business with governments in the u.s.a.Presentation Transcript
Doing Business withDoing Business withGovernments in the U.S.A.Governments in the U.S.A.Presented by Keith K. Glatz, CPPOPresented by Keith K. Glatz, CPPOPurchasing & Contracts ManagerPurchasing & Contracts ManagerCity of Tamarac, FloridaCity of Tamarac, Florida
WHY Do Business with theWHY Do Business with theGovernment?Government? Nearly 1/3 of U.S. Gross National ProductNearly 1/3 of U.S. Gross National Productpurchased by government agenciespurchased by government agencies Government needs are fairly constantGovernment needs are fairly constant Government doesn’t play favorites – it’s aGovernment doesn’t play favorites – it’s aLEVEL PLAYING FIELDLEVEL PLAYING FIELD Government pays its BILLS!!!Government pays its BILLS!!!
How Does Government Buy?How Does Government Buy? Through Bids andThrough Bids andRequests for ProposalRequests for Proposal Through Small PurchaseThrough Small PurchaseQuotationsQuotations Through ProcurementThrough ProcurementCardsCards Handled exclusively byHandled exclusively byPurchasingPurchasing DelegatedDelegated Individuals (AdministeredIndividuals (Administeredby Purchasing)by Purchasing)
What Do We Buy?What Do We Buy? Construction – Roads,Construction – Roads,Infrastructure, Buildings, etc.Infrastructure, Buildings, etc. Professional ServicesProfessional Services Engineers, Architects,Engineers, Architects,ConsultantsConsultants Vehicles & Heavy EquipmentVehicles & Heavy Equipment Trucks, AutosTrucks, Autos Computers & Office EquipmentComputers & Office Equipment SuppliesSupplies Office Supplies, Food,Office Supplies, Food,Chemicals, etc.Chemicals, etc. Utilities ItemsUtilities Items Maintenance SuppliesMaintenance Supplies Parts and ToolsParts and Tools Services – all typesServices – all types Safety Equipment & SuppliesSafety Equipment & Supplies . . . And Much More!. . . And Much More!
Who is the Government in theWho is the Government in theUnited States?United States? Federal Government – U.S. GovernmentFederal Government – U.S. Government General Services Administration (GSA)General Services Administration (GSA) Primary Procurement Agency for non-DefensePrimary Procurement Agency for non-Defensepurchasespurchases Department of Defense (DOD)Department of Defense (DOD) Other agenciesOther agencies
State and Local GovernmentState and Local Government State GovernmentsState Governments 50 States50 States Local GovernmentsLocal Governments CountiesCounties Cities, Towns & VillagesCities, Towns & Villages Special DistrictsSpecial Districts Educational EntitiesEducational Entities Colleges & UniversitiesColleges & Universities School DistrictsSchool Districts
The Basic RequirementsThe Basic Requirements Have a Product or a Service that WeHave a Product or a Service that Weneed!need! Most documents will be in English!Most documents will be in English! Register if requiredRegister if required Find OpportunitiesFind Opportunities
Registration – FederalRegistration – Federal Must be registered through the Central ContractMust be registered through the Central ContractRegistration SystemRegistration System https://www.ccr.govhttps://www.ccr.gov// Must have a “Duns Number” assigned by Dun &Must have a “Duns Number” assigned by Dun &BradstreetBradstreet http://fedgov.dnb.com/webformhttp://fedgov.dnb.com/webform or call (866) 705-or call (866) 705-57115711 Must fill-out Online Representations &Must fill-out Online Representations &Certifications Application (ORCA)Certifications Application (ORCA) https://orca.bpn.govhttps://orca.bpn.gov May be required to undergo a U.S. DepartmentMay be required to undergo a U.S. Departmentof Homeland Security Fingerprint Security Checkof Homeland Security Fingerprint Security Check& Personnel Security Investigation& Personnel Security Investigation All Details atAll Details at http://http://www.gsa.gov/portal/content/104121www.gsa.gov/portal/content/104121
Registration – State & LocalRegistration – State & Local Each agency has its own requirementsEach agency has its own requirements May have to visit web-site, or contact agency byMay have to visit web-site, or contact agency bytelephonetelephone State of Florida:State of Florida: httphttp://://www.dms.myflorida.com/business_operations/state_purchasing/doing_www.dms.myflorida.com/business_operations/state_purchasing/doing_ Miami-Dade County:Miami-Dade County: http://www.miamidade.gov/procurementhttp://www.miamidade.gov/procurement// City of Miami:City of Miami: http://http://www.miamigov.com/Procurement/pages/SupplierCorner/DoingBusinewww.miamigov.com/Procurement/pages/SupplierCorner/DoingBusines Some web-sites allow you to register on-line.Some web-sites allow you to register on-line.Some may require paper registration by fax orSome may require paper registration by fax ormail.mail.
Where Do I find Opportunities?Where Do I find Opportunities? Federal ContractsFederal Contracts General Services Administration (GSA)General Services Administration (GSA) Department of Defense (DOD)Department of Defense (DOD) FedBizOpps.govFedBizOpps.gov ((httpshttps://www.fbo.gov://www.fbo.gov//)) Opportunities over $25,000 (U.S. Dollars)Opportunities over $25,000 (U.S. Dollars)
State & Local OpportunitiesState & Local Opportunities State & Local ContractsState & Local Contracts State and Local Web-sitesState and Local Web-sites State of Florida:State of Florida: http://http://www.dms.myflorida.com/business_operations/statwww.dms.myflorida.com/business_operations/state_purchasing/doing_business_with_the_state_of_fle_purchasing/doing_business_with_the_state_of_floridaorida Miami-Dade County:Miami-Dade County:http://www.miamidade.gov/procurement/http://www.miamidade.gov/procurement/ City of Miami:City of Miami:http://www.miamigov.com/Procurement/pages/Suphttp://www.miamigov.com/Procurement/pages/SupplierCorner/DoingBusiness/default.aspplierCorner/DoingBusiness/default.asp
Subscription ServicesSubscription Services Private Subscription ServicesPrivate Subscription Services Onvia/Demandstar.comOnvia/Demandstar.comhttp://www.demandstar.com/http://www.demandstar.com/ Bidnet.com http://www.bidnet.com/Bidnet.com http://www.bidnet.com/ These services do not represent everyThese services do not represent everystate and local government agency.state and local government agency.
ConstructionConstruction Construction “Plan Room” SubscriptionConstruction “Plan Room” SubscriptionServices – provides construction plans & bidsServices – provides construction plans & bids Datafax.netDatafax.net http://www.constructionjournal.com/http://www.constructionjournal.com/ McGraw Hill.com (Dodge Report)McGraw Hill.com (Dodge Report)http://www.construction.com/http://www.construction.com/ ISqFt.comISqFt.com http://www.isqft.com/new/http://www.isqft.com/new/ The Construction JournalThe Construction Journalhttp://www.constructionjournal.com/http://www.constructionjournal.com/ Reed ConstructionReed Constructionhttp://www.reedconstructiondata.com/http://www.reedconstructiondata.com/
Things I’ll NeedThings I’ll NeedInsurance – If you plan to do work on ourInsurance – If you plan to do work on ourproperty, you will be required to haveproperty, you will be required to haveappropriate insurance coverage beforeappropriate insurance coverage beforeyou can do business with the Agency.you can do business with the Agency.
Typical Insurance LimitsTypical Insurance Limits(May vary by agency and project)(May vary by agency and project) General Liability -- $2,000,000General Liability -- $2,000,000 Auto Liability -- $1,000,000Auto Liability -- $1,000,000 Workers Comp. -- StatutoryWorkers Comp. -- Statutory Professional Liability -- $1,000,000 (used forProfessional Liability -- $1,000,000 (used forconsulting and professional services)consulting and professional services) Agency must normally be named on InsuranceAgency must normally be named on InsuranceCertificate as “Certificate Holder” and anCertificate as “Certificate Holder” and an“Additional Insured”“Additional Insured”
Bonds & LicensesBonds & Licenses If you are performing construction work,If you are performing construction work,you will beyou will be REQUIREDREQUIRED to obtain ato obtain aPerformance and Payment BondPerformance and Payment Bond As an example: Bonds required for allAs an example: Bonds required for allprojects over $200,000 in Floridaprojects over $200,000 in Florida Construction contractors must be properlyConstruction contractors must be properlylicensed as a contractor by the localelicensed as a contractor by the locale
Understanding the MarketplaceUnderstanding the Marketplace Competitive requirements – Know the bidCompetitive requirements – Know the bidthreshold for each agency you deal with $10,000threshold for each agency you deal with $10,000- $100,000 typical formal bid threshold- $100,000 typical formal bid threshold Purchases above the threshold must be formallyPurchases above the threshold must be formallyadvertised and require governing body approvaladvertised and require governing body approval Most have thresholds for informal quotationsMost have thresholds for informal quotations Procurement card purchases usually establishedProcurement card purchases usually establishedwith single purchase limitwith single purchase limit
Things to Remember When WorkingThings to Remember When WorkingWith Procurement CardsWith Procurement Cards Shipping charges, if applicable, MUST beShipping charges, if applicable, MUST beincluded in any pricing quotedincluded in any pricing quoted Be sure to provide receipts to the userBe sure to provide receipts to the userimmediately.immediately. If agency is ordering via Internet, e-mail receiptIf agency is ordering via Internet, e-mail receiptimmediately upon confirmation of order.immediately upon confirmation of order.
Marketplace IssuesMarketplace Issues CompetitiveCompetitive sealed bidssealed bids are awarded to theare awarded to thelowest priced bid, meeting our requirements.lowest priced bid, meeting our requirements. Requests for ProposalRequests for Proposal are awarded to firms whoare awarded to firms whobest meet the requirements of the proposal’sbest meet the requirements of the proposal’swritten criteria. Usually the “Highest Score”written criteria. Usually the “Highest Score” Departments may have some discretion on smallDepartments may have some discretion on smallpurchases under the entity’s formal bidpurchases under the entity’s formal bidthreshold, but may have to provide back-up tothreshold, but may have to provide back-up tovalidate that competition was sought.validate that competition was sought.
Small OrdersSmall Orders Majority of items ordered by Purchase OrderMajority of items ordered by Purchase Order Department required to supply back-up, such asDepartment required to supply back-up, such asquotation, insurance certificate, etc., so pleasequotation, insurance certificate, etc., so pleaseprovide this information to the department.provide this information to the department. Normally, small orders are your BESTNormally, small orders are your BESTopportunityopportunity You need to establish relationships withYou need to establish relationships withindividual agencies to know when we have smallindividual agencies to know when we have smallordersorders
What We ExpectWhat We Expect Your BEST pricing at the outset! (You must beYour BEST pricing at the outset! (You must becompetitive to earn our business)competitive to earn our business) A Quality Product or ServiceA Quality Product or Service Accountability -- Fair and Honest Dealings --Accountability -- Fair and Honest Dealings --We subscribe to a stringent code of ethics.We subscribe to a stringent code of ethics. Transparency – All business conducted underTransparency – All business conducted underpublic scrutiny.public scrutiny.
What We Expect – ContinuedWhat We Expect – Continued Product in stockProduct in stock Timely DeliveryTimely Delivery No issues with importsNo issues with imports Everything is easy to understandEverything is easy to understand No problems with the “paperwork”No problems with the “paperwork” ““Service after the sale”Service after the sale”
Bids Vs. ProposalsBids Vs. Proposals BidBid Used when clear specifications are available.Used when clear specifications are available. Usually adequate competition exists in theUsually adequate competition exists in themarket.market. The main goal is the lowest price.The main goal is the lowest price. Bidders must be responsive & responsible!!Bidders must be responsive & responsible!! Responsive – follows the directions on the bid.Responsive – follows the directions on the bid. Responsible – capable of performing the work.Responsible – capable of performing the work.
Bids Vs. ProposalsBids Vs. Proposals ProposalProposal Used when the buyer is looking for the bestUsed when the buyer is looking for the bestapproach to an issue.approach to an issue. Buyer usually has a goal, and wants to exploreBuyer usually has a goal, and wants to explorethe best possible solution.the best possible solution. Criteria OTHER than price may be considered,Criteria OTHER than price may be considered,such as past experience and qualifications ofsuch as past experience and qualifications ofpersonnel, how well the work plan achieves thepersonnel, how well the work plan achieves thegoal, creativity, and schedule.goal, creativity, and schedule. Criteria may be weighted, and is evaluated by aCriteria may be weighted, and is evaluated by ateam.team.
Preparing A Bid – FundamentalPreparing A Bid – FundamentalRequirementsRequirements Read the Bid/Proposal InstructionsRead the Bid/Proposal Instructions Check to see what YOU need to provide with yourCheck to see what YOU need to provide with yourresponseresponse Check for certifications, affidavits, and pages that needCheck for certifications, affidavits, and pages that needto be signedto be signed Be sure the PROPER person, authorized to sign bids,Be sure the PROPER person, authorized to sign bids,has signed the document.has signed the document. Proofread, proofread, proofread!Proofread, proofread, proofread! Read the Bid / Proposal Instructions AGAIN!!Read the Bid / Proposal Instructions AGAIN!! Calculate and Submit prices in U.S.Calculate and Submit prices in U.S.DollarsDollars
When Preparing BidsWhen Preparing Bids Fill-out the Bid FormFill-out the Bid Form Read the Instructions! Fill-out EVERYTHINGRead the Instructions! Fill-out EVERYTHINGon the bid documenton the bid document Fill-out pricing, certifications, requests forFill-out pricing, certifications, requests forInformation about your firm or your productInformation about your firm or your product PRICING MUST BE IN U.S. DOLLARS!!!PRICING MUST BE IN U.S. DOLLARS!!! Check and re-check the unit prices.Check and re-check the unit prices. Extend the unit prices based on quantities.Extend the unit prices based on quantities. Add-up your group totals and check the math!!!Add-up your group totals and check the math!!!
Preparing Bids - ContinuedPreparing Bids - Continued Fill-out the manufacturer name/modelFill-out the manufacturer name/modelnumbers.numbers. Provide delivery timeProvide delivery time Specification cut-sheets – be sure that youSpecification cut-sheets – be sure that youinclude specification sheets, or somethinginclude specification sheets, or somethingthat verifies your product’s characteristicsthat verifies your product’s characteristicsand capabilitiesand capabilities
Items to Be IncludedItems to Be Included If we ASK for proof of insurance, WE MEAN IT! IncludeIf we ASK for proof of insurance, WE MEAN IT! Includeyour proof of insurance when requestedyour proof of insurance when requested Bid or Proposal Bond – If we ask for a bid or proposalBid or Proposal Bond – If we ask for a bid or proposalbond, include it WITH the bid. (Performance andbond, include it WITH the bid. (Performance andPayments Bonds will not normally be requested until thePayments Bonds will not normally be requested until theaward stage.)award stage.) Cashier’s Check – If Cashier’s Check is requested inCashier’s Check – If Cashier’s Check is requested inplace of a Bid Bond, include a cashier’s check WITHplace of a Bid Bond, include a cashier’s check WITHyour bid, not a company check – a company check willyour bid, not a company check – a company check willdeem your proposal non-responsive.deem your proposal non-responsive. References – We need to see your references, and mayReferences – We need to see your references, and mayeven ask for a complete client list.even ask for a complete client list.
Additional Items to Submit withAdditional Items to Submit withProposalsProposals YourYour WORK PLANWORK PLAN, address OUR situation!, address OUR situation! ProvideProvide RESUMESRESUMES of the personnel who will beof the personnel who will beWORKING ON OUR PROJECT if you win theWORKING ON OUR PROJECT if you win theproposal.proposal. Break down theBreak down the HOURSHOURS you plan to devote toyou plan to devote toour project, and a breakdown of who will beour project, and a breakdown of who will beworking during those hours. (We want to seeworking during those hours. (We want to seehow your organize your work.)how your organize your work.)
Proposals – ContinuedProposals – Continued Provide yourProvide your SCHEDULESCHEDULE, including significant, including significantprojectproject MILESTONESMILESTONES and your anticipatedand your anticipatedCOMPLETION TIMECOMPLETION TIME.. Let us know theLet us know the PROJECT ROLESPROJECT ROLES of your staff,of your staff,and provide us with yourand provide us with your PROJECT LEADERPROJECT LEADER.. We’ll expect to see your project leader at theWe’ll expect to see your project leader at thepresentation, along with other decision makers on thepresentation, along with other decision makers on theproject.)project.)
Submitting Your BidSubmitting Your Bid For Mailed/Delivered BidsFor Mailed/Delivered Bids Clearly identify that the container contains aClearly identify that the container contains aresponse. Identify the bid/proposal number, the title,response. Identify the bid/proposal number, the title,and the due date and time.and the due date and time. Make sure your solicitation is delivered to the addressMake sure your solicitation is delivered to the addressindicated in the bid ON TIME! Most entities do NOTindicated in the bid ON TIME! Most entities do NOTaccept late bids.accept late bids. Expect the unexpected!Expect the unexpected! Even overnight couriers cannotEven overnight couriers cannotperform miracles. YOU need to be sure that you haveperform miracles. YOU need to be sure that you haveplenty of time for shipping bids. If you deliver them, beplenty of time for shipping bids. If you deliver them, besure to account for traffic and weather hazards insure to account for traffic and weather hazards inadvance.advance. There is NO excuse for a late bid or proposalThere is NO excuse for a late bid or proposal..