Selling to-the-federal-government1291


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    The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify.
    For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to.
    The 3 formal certifications will be discussed in more detail. Check our website at for further information on all certifications.
  • *1. Define the 8(a) program – explaining what it is and clarifying what it is not;
    *2. Outline program eligibility requirements;
    *3. Explain the application process; and,
    *4. Describe business development resources that support the 8(a) program.
  • Selling to-the-federal-government1291

    1. 1. U.S. Small Business Administration Selling to The Federal Government: Winning Federal Contracts for the IRS and NCMA Greater New York Vendor Outreach Workshop April 16, 2009
    2. 2. Federal Contracting Facts • The federal government is one of the largest single sources of US contracting opportunities for small businesses • Contracts exist for every item imaginable, from paper clips to armored tanks • In 2006, small businesses won: – $77 billion in direct prime contracts – $65 billion in subcontracts – over $142 billion in total federal contracts
    3. 3. Why a Small Business Program? It is the policy of the United States that small business (SB) concerns shall have the maximum practicable opportunity to participate in the performance of contracts awarded by any Federal agency. • The United States uses the procurement process to advance socio-economic policies and objectives. • Government Policy Over Several Decades – Numerous Statutes, beginning with the Small Business Act as amended – Various Executive Orders – Federal Acquisition Regulation (48 CFR, Part 19) – SBA Regulations (13 CFR) •
    4. 4. Basis for SBA Programs • Small Business Act – Implements Congressional Policy to aid, counsel, assist & protect the interests of small business concerns – Goal of policy is to ensure that a fair proportion of purchases, contracts & subcontracts be placed with small businesses
    5. 5. Get to Know SBA’s Website • At, take online federal procurement training modules to improve your company’s odds to win federal prime and subcontracts • Topics today include: • Defining the Market • How the Government Buys • Contractor Responsibilities • And many more
    6. 6. What is a Small Business? According to regulation (FAR 19.001): “Concern”: Any business entity organized for profit with a place of business located in the U.S. “Small business concern” means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13 CFR Part 121.”
    7. 7. Prime Contracting Government-wide Procurement Goals • • • • • Small Business (SB) - 23% Small Disadvantaged Business (SDB) - 5% Women-Owned Small Business (WOSB) 5% HUBZone Small Business - 3% Service-Disabled Veteran-Owned SB (SDVOSB) - 3%
    8. 8. How the Government Buys Order of Precedence • • • • • FAR 8.603 – FPI and AbilityOne GSA or other Federal Supply Schedule 8(a) sole source/competitive & 8(a)-HUBZone firms** HUBZone competition, HUBZone sole source** Service Disabled Veteran Set-aside, Sole Source** (1st priority for the VA (and VOSB 2nd) • Small Business Set-aside • Full and Open SBA’s Position: Contracting Officers should use their best judgment as to which vehicle ( 8(a), HUBZone, or Service Disabled Veteran Owned) is most appropriate for their buy. Program Goal achievement is a factor in this determination. Controversial
    9. 9. How the Government Buys – MAS/FSS • MAS/FSS Contracts :GSA establishes long-term government-wide contracts for the entire government to provide access to over 11 million commercial supplies (products) and services • Preferred method and widely used • The General Services Administration (GSA) manages – Multiple Award Schedules (MAS) contracts, – aka Federal Supply Schedule (FSS) contracts – Contact GSA for more information on how to obtain a MAS/FSS contract at and select link to GSA Contracts and Schedules
    10. 10. First Thing To Do – Get Registered • Obtain a “DUNS Number” that will identify your business to the federal government by visiting • In order to win federal contracts, your business must be registered in the federal government’s Central Contractor Registration (CCR) database at • Online Representations and Certifications Application (ORCA)
    11. 11. Identify Your Product or Service • 2 different coding systems: – Federal Supply Classification Code (FSC) .html – North American Industry Classification System Code (NAICS) cs/
    12. 12. Know the Federal Contract Certifications  Self-Certifications Small Business – NAICS Codes/Size Standards Women-owned Small Business (WOSB) Veteran-owned Small Business (VOSB) Service-Disabled Veteran-owned Small Business (SDVOSB)  SBA’s Formal Certification Programs: 8(a) Business Development HUBZone Empowerment Contracting
    13. 13. Find Out If You Qualify for SBA Certifications • Require formal certification (pre-approval) by the government – 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program eligible to receive competitive and ‘sole source’ awards. – HUBZone - Small businesses, owned and controlled by only by US Citizens, community Development Corps, Indian tribes with its principal office located in areas identified as historically underutilized business zones, and with 35% of employees coming from HUBZones, eligible to receive competitive and ‘sole source’ awards.
    14. 14. Eligibility for 8(a) & SDB Programs 8(a) • A small Business • US Citizen • 51% owned and controlled controlled by socially & economically disadvantaged individuals • Net worth below $250K • In business at least 2 years SDB A small business US Citizen Same Net worth below 750K
    15. 15. HUBZone Requirements FOUR Requirements: • Must be a small business by SBA standards * Concern must be owned and controlled only by US Citizens, Community Development Corporation or Indian Tribes * The principal office must be located in a HUBZone * At least 35% of the concerns employees must reside in a HUBZone
    16. 16. HUBZone Program • • • • • • • • • • Applies to purchases over $3000; Must be certified by SBA - no term limits; Annual self-certification required after initial approval; Competitive and ‘sole source’ set-aside program benefits; Can’t consider actions for HUBZone SA if FSS, UNICOR, NIB/NISH, or 8(a); Sole source: Up to $5.5 M (mfg) and Up to $3.5M (non-mfg) 10% price evaluation preference (on non set-asides) Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13
    17. 17. Service-Disabled Veteran-Owned Small Businesses • Set-Aside - Buys over $3000 - “Rule of Two” - No upward $ limit - Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a) • Sole Source – – – – – – – Buys over $100,000 Only 1 Source Up to $5.5 M (mfg) Up to $3.5 M (nonmfg) Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a)
    18. 18. Service-Disabled Veteran-Owned Small Businesses • Additional Points to Remember: • VA determines Service Disability - SBA determines size, if protested; • No term limits – no need to apply or reapply; • Competitive and sole-source program benefits; • Subcontracting and Prime Contracting goals; • FAR 19.14
    19. 19. Identify Contract Opportunities • Federal Business Opportunities (FedBizOpps) (FBO) is the exclusive official source to identify federal contracts over $25,000 or • Demonstration Videos - Training videos are now available to familiarize users with the features and functionality of the new FBO • Sources Sought Notices in the FBO – Become familiar with and Respond to these notices. • Large contract awards and special notices (e.g., procurement conferences) are also publicized in the FBO. • Contains Recovery and Reinvestment Act Actions
    20. 20. Learn Federal Contracting Procedures • In order to win federal contracts, you must become familiar with federal regulations . Federal Acquisition Regulations (FAR)  Subpart 8.4 – Federal Supply Schedules  Part 13 – Simplified Acquisitions  Part 14 – Sealed Bidding  Part 15 – Contracting by Negotiation  Part 19 - Small Business Programs • Defense Federal Acquisition Regulation Supplement (DFARS)
    21. 21. Prepare your offer  3 Rules for a solicitation: -Read it…Read it…Read it!!!  Request a Procurement History  Attend Pre-Bid Meetings & Walk-Throughs  Get clarification of ambiguities  Proofread your proposal  Submit it on time!
    22. 22. Contract Performance        Contingency Plans Have a back up plan if something goes wrong Give yourself enough time to react Anticipating Final Inspection Make an appointment before shipping date On-Time delivery Establish a good track record
    23. 23. Getting Paid  Know the paperwork process  Keep good records  Know your options ‒ Progress payments ‒ Prompt Payment Act  EFT (electronic funds transfer)  Accept government credit cards
    24. 24. Market Your Company • In order to effectively market your company’s product or service, you must: – Identify your customers – Research their requirements – Learn federal procurement regulations  Present your capabilities directly to the federal activities and large prime contractors that buy your products and services  Attend procurement conferences and business expos  Attend Business Matchmaking events  Add details to DSBS your Dynamic Small Business Search • profile (e.g., GSA schedule number, commercial customers, federal customers, special capabilities). Show contracting officers that your company is a good match for their needs and requirements
    25. 25. Market Your Company • TARGET YOUR CUSTOMER: Who buys your product or service? How do they buy? When do they buy? • KNOW THE RULES: Federal Acquisition Regulations, Contract requirements and specifications • PERFORM AS PROMISED: On-time delivery, Good Quality, at a Fair Price • CHAMPION of EXCELLENCE • PLEASANTLY PERSISTENT
    26. 26. Explore Subcontracting Opportunities • Prime contract winners often require subcontracts to fulfill their requirements • The SBA/GC Subcontracting Opportunities Directory lists by state the large business federal prime contractors with the contact information for each Small Business Liaison Officer (SBLO). View the directory at ntracts_opportunities.html • SBA’s SUB-Net: Federal agencies, state and local governments, non-profit organizations, colleges and universities, and small businesses can use SUB-Net to post solicitations and notices. SUB-Net can be reached through the SBA’s Home Page at
    27. 27. Seek Help From Resource Partners • PTAC • Small Business Development Centers - LIDC • Women Business Centers ms/onlinewbc/index.html • SCORE - Get Advice (online and inperson mentoring) from Successful Business Advisors
    28. 28. Seek Help From Resource Partners Additional Help • Commercial Market Representatives – • Small Business Specialists – • Directors of Federal Agency Office of Small and Disadvantaged Business Utilization –
    29. 29. Learn About Other SBA Programs • Find other SBA programs at - Financial Assistance - Contract Opportunities - Online Training - Free Online Courses - Counseling & Assistance - Laws and Regulations
    30. 30. U.S. Small Business Administration Debra B. Libow Procurement Center Representative at 212-264-4395 U.S. Small Business Administration OFFICE OF GOVERNMENT CONTRACTING Area I (CT, ME, MA, NH, NJ, NY, RI, VT, PR and the USVI)