Leveraging Term Contracts - Federal Government


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Jennifer Schaus presents a webinar on Federal, State & Local government Term Contracts. More info: JSchaus@JenniferSchauscom

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Leveraging Term Contracts - Federal Government

  1. 1. Welcome to today’s webinar We will begin at 2 p.m. ET/11 a.m. PT. You can hear the webinar on streaming audio, so you’ll need to have your computer speakers or headphones ready at that time.If you want to dial in for the audio:(415)-655-0051Access Code: 718-661-532
  2. 2. Webinar: Build your pipeline with government Term Contracts Introduction Government Term Contracts Q&A Our featured expert: Jennifer L. Schaus, Jennifer Schaus & Associates
  3. 3. ABOUT JENNIFER SCHAUS Summary Over 15 years Federal procurement & sales experience Offices in Washington, DC and Rome, Italy Contributed government purchasing expertise to: ─ Wall Street Journal / Washington Post ─ Business Journal / Government Product News ─ NCMA (National Contract Management Association) ─ AMEX – WIPP (Women Impacting Public Policy) ─ NDIA – WID (Women In Defense) / Various foreign embassy delegations3
  4. 4. ABOUT JENNIFER SCHAUS Background- Federal Sales & Business Development ─ Washington, DC & Rome, Italy ─ Small, Mid, Large, Fortune 500 Clients ─ Product & Services – Domestic & International Clients ─ GSA Schedules ─ B2G Sales / Marketing – FED, STATE & LOCAL ─ Related Services: 8a, Proposal Writing, Lobbying, etc.4
  5. 5. GOVERNMENT TERM CONTRACTS DefinitionDefinition-A term contract is a contract in which a source or sources of supply areestablished for a specific period of time at a predetermined unit price• Sources of Supply can include both products and services.• Specific Period usually is no less than one year and no more than 10 years.• Predetermined Unit Price are usually established and negotiated between the seller (vendor) and buyer (government) 5
  6. 6. GOVERNMENT TERM CONTRACTS ExplanationExplanation-Term Contracts tend to be “multiple award” (MAS)• Multiple vendors can be listed on the Term Contract• Many times, there is no guarantee of sales• Competition still exists• Creates a designated & vetted pool for the buyer to select from• Some have set date enrollment periods (typically State / Local)• Others are open enrollment (i.e. Federal GSA Schedule) 6
  7. 7. GOVERNMENT TERM CONTRACTS Examples for Federal, State & LocalFederal Government State & Local Government• GSA Schedule • CMAS – California Multiple Award Schedule• VA Schedule • TXMAS – Texas Multiple Award Schedule• Army FIRST • MHEC - Midwest Higher Education Consortium• Navy NAV SEAPORTe • WSCA – Western States Contracting Alliance• FAA eFAST Average Term Contract Value: $3MAverage Term Contract Value: $6M According to Onvia’s database, the average contract value for all Term Contracts is $3.5M. 7
  8. 8. GOVERNMENT TERM CONTRACTS AdvantagesAdvantages-• Can be a competitive advantage for vendors to keep out similar firms who do not have• Bidding opportunities designated for contract holders (EX: GSA E-Buy)• Facilitates the buying process for the government • Paperwork has been completed on the front-end • Less risky and less work for the buyer/CO • Company is “approved” • Budget dollars are allocated for these purchases • Vendor has complied with established T’s & C’s in the contract upfront 8
  9. 9. GOVERNMENT TERM CONTRACTS How is government using Term Contracts?• Government uses term contracts to simplify purchases• Vetting has been done upfront• Capabilities have been established & checked• Fair & Reasonable pricing has been negotiated & set• Facilitates purchasing process for the buyer 9
  10. 10. GOVERNMENT TERM CONTRACTS How does agency leadership affect Term Contracts? What affects agency leadership?• Scandals• Election Year – Political Changes• Outside Events – 9/11, Financial Crisis, etc.Creation of Agency• (DHS) Department Of Homeland SecurityDissolve Agency or Department• Bureau of Ocean Energy Management, Regulation & Enforcement (BOEMRE), formerly Minerals Management Service (MMS), was replaced by Bureau of Ocean Energy Management (BOEM) & Bureau of Safety & Environmental Enforcement (BSEE).10
  11. 11. GOVERNMENT TERM CONTRACTS How does agency leadership affect Term Contracts? How does agency leadership affect term contracts?Directives from agency leadership to utilize (or not) specific contracts.Agency Specific Contracts:• Army FIRST• Navy NAV SEAPORTe• DHS EagleVendor-Ready Contracts for Disaster Recovery & ARRA Programs• GSA Schedule sub-sets• Terms & Conditions will vary that vendor “accepts”11
  12. 12. GOVERNMENT TERM CONTRACTS How can you find more?MORE = Not always betterQ: Are term contracts right for you?1. How does your customer buy?2. What are your margins with term contracts?3. Do you have “wiggle room” for bidding?4. What are repercussions after accepting term contracts?If term contracts are a good fit for your B2G strategy, consider:• Obtain one that is used the most for your offering• Obtain one that can be replicated/grandfathered in (GSA) 12
  13. 13. GOVERNMENT TERM CONTRACTS How can you find more? More term contracts = More bidding opportunities with a smaller playing field of competitors More bidding opportunities = More chances to win and grow business More chances to win and grow business = More revenue for your companyCONSIDERATION:Profit Margins – negotiate rates that you can live with- and survive / thrive on! 13
  14. 14. GOVERNMENT TERM CONTRACTS Winning Bid Strategies- Post Term Contracts• Ensure you understand and comply with all of the Terms / Conditions This is important both pre and post award.• Build relationships with your buyers for repeat business Incumbents who perform well and “play well with others” tend to continue winning.• Build relationships with your Contract Administrators They can make your B2G business miserable or pleasant. 14
  15. 15. GOVERNMENT TERM CONTRACTS Winning Bid Strategies- Post Term Contracts• Ensure you are receiving the e-bidding opportunities Many companies go through the tedious process & forget this step!• Understand your limitations on set price and options for bid price T’s and C’s will vary by contract.• Stay on top of the renewal to ensure no lapse or non-compliance Renewals tend to be easier than starting from scratch.• If you are overwhelmed, consider an outside expert to manage the process &Reporting requirements. 15
  16. 16. GOVERNMENT TERM CONTRACTS Winning Bid Strategies- Negotiating Term Contracts! Negotiate!• Negotiate upfront rates that leave you room to bid lower (if this is part of the terms & conditions)• Negotiate rates that allow you to still be profitable (Otherwise this market is not for you & you will be buying contracts)• Negotiate rates that are competitive with your industry leaders16
  17. 17. ABOUT ONVIA Contact us: myonvia@onvia.com | www.onvia.com17
  18. 18. Q&A QUESTIONS?18
  19. 19. THANK YOU!Jennifer Schaus & Associates Scott Merrick- Marketing Director at OnviaEmail: JSchaus@JenniferSchaus.com Email: smerrick@onvia.comWeb: http://www.jenniferschaus.com/ Web: www.onvia.comOffice: 202.365.0598 Office: 206.373.9415 Copyright: This document is copyrighted by Jennifer Schaus & Associates. All rights reserved. No part of this document may be reproduced, modified, or transmitted in any form or by any means, electronic, mechanical or otherwise without prior written permission. Not Legal Advice: The opinions, information, and interpretations provided in this document are the personal opinions of Jennifer Schaus, are for educational and informational purposes only, and do not represent legal advice. When appropriate, readers of this document are encouraged to consult with an attorney to obtain legal advice.19