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WWeellccoommee ttoo 
““HHooww tthhee FFeeddss BBuuyy””
DDeetteerrmmiinnee yyoouurr BBeesstt VVaalluuee 
 Best Value is not Black and White. 
 Maximum competition, lowest bidde...
WWaayyss tthhee ggoovv’’tt ccaann bbuuyy 
3 
 Micro Purchase (under $3,000) 
 RFQ 
 RFP 
 RFI 
 Open Market 
 Credit...
4 
RRFFQQ’’ss 
 Usually used for the purchase of commodities like 
commercial off-the-shelf products. 
 Set of spec’s pr...
5 
RRFFPP’’ss 
 A Request for Proposal (RFP) is most commonly used to solicit offers for goods or 
services that are not ...
6 
RRFFII’’ss 
 (a) Exchanges of information among all interested parties, from the earliest identification of a 
require...
7 
OOppeenn MMaarrkkeett 
 Open Market Items are also known as incidental items, non-contract items, 
non-Schedule items,...
CCrreeddiitt CCaarrddss –– SSmmaarrttPPaayy 
 In 1998, GSA awarded five contracts to provide federal agencies with a new ...
9 
IIFFBB 
 An invitation for Bid (IFB) is most commonly used when the government 
desires goods and services that are ea...
10 
SSoollee SSoouurrccee 
 FAR Part 13.106 requires soliciting among a reasonable number (generally, three) of 
sources ...
Governmentwide Acquisition CCoonnttrraaccttss ((GGWWAACCss)) 
http://www.gsa.gov/portal/category/101711 
11 
A government...
SSmmaallll BBuussiinneessss SSeett--AAssiiddeess 
12 
 Under the Small Business Act, federal agencies conduct a variety o...
WWhhaatt iiss tthhee GGSSAA PPrrooggrraamm?? 
 Contracts to provide supplies and/or services directly with 
customers at ...
14 
WWhhyy hhaavvee oonnee?? 
 Preferred government purchasing program 
 GSA Sales in FY 12 were $37.7 billion 
 Has te...
WHICH CATEGORIES OF SMALL 
BUSINESS MUST BE CERTIFIED BY SBA? 
 Small Disadvantaged Businesses (SDB), 
HUBZone small busi...
SSaammpplliinngg ooff GGSSAA SScchheedduulleess 
 Document Conversion Services 
 Energy Management Services 
 Human Res...
BBllaannkkeett PPuurrcchhaassee AAggrreeeemmeennttss 
 Ordering activities to fill “repetitive ” requirements. BPA 
provi...
18 
TTeeaammiinngg AAggrreeeemmeennttss 
 Permitted when using Federal Supply Schedules. 
 All participants of the Team ...
19 
CCooooppeerraattiivvee PPuurrcchhaassiinngg 
((bbeeggaann MMaayy 88tthh,, 22000033)) 
 
 A landmark piece of legisla...
20 
SSuummmmaarryy 
 Get on a contract vehicle(s) - keep it/them current. 
 Determine what makes you unique “Best Value”...
21 
SSuummmmaarryy ((ccoonnttiinnuueedd)) 
 Know agency budget, mission, use of your services, 
procurement preferences. ...
22 
QQuueessttiioonnss?????? 
 Visit www.capitalreps.com 
 Call us @ 703-326-0640 or 
 E-mail us @ rmackey@capitalreps....
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How the gov't buys cap i-tal reps

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How the government buys

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How the gov't buys cap i-tal reps

  1. 1. WWeellccoommee ttoo ““HHooww tthhee FFeeddss BBuuyy””
  2. 2. DDeetteerrmmiinnee yyoouurr BBeesstt VVaalluuee  Best Value is not Black and White.  Maximum competition, lowest bidder out.  BV can be: price, delivery, life-cycle cost, warranty, extended tech support, trade-ins, special features, maintenance, past performance, environmental and energy efficiency, 508, etc.  Agencies need help “documenting” their justification. Research your agency and your competition – determine competitive advantage. 2
  3. 3. WWaayyss tthhee ggoovv’’tt ccaann bbuuyy 3  Micro Purchase (under $3,000)  RFQ  RFP  RFI  Open Market  Credit Card  IFB  Sole Source  GSA (BPA)  GWAC  and many more, FFP, CPFF, Cost Sharing, T&M, etc
  4. 4. 4 RRFFQQ’’ss  Usually used for the purchase of commodities like commercial off-the-shelf products.  Set of spec’s provided or name brand or equal.  Usually decided by price and delivery.  Generally know what they want, have monies.  Should have relationship with the customer.  Include info on your Best-Value (warranty, security clearances, in-stock, free tech support).
  5. 5. 5 RRFFPP’’ss  A Request for Proposal (RFP) is most commonly used to solicit offers for goods or services that are not easily described in concrete terms.  For instance, when the government cannot adequately draft specifications for a product or service or when the product or service is experimental, developmental or research related, the government is likely to solicit offers using an RFP. The government typically desires more information or a different type of information than it does when an IFB is used.  Furthermore, as the name implies, elements of the proposal are open to negotiation after all proposals have been submitted.  Often, contracts that result from negotiated procurements cover advanced technology and may include complex areas of research and development, projects connected with highly sophisticated systems, missile programs, aircraft and weapons systems. However, negotiation procedures also may be applied to more-or-less standard items, when negotiation authority has been properly documented by the procurement office.
  6. 6. 6 RRFFII’’ss  (a) Exchanges of information among all interested parties, from the earliest identification of a requirement through receipt of proposals, are encouraged. Any exchange of information must be consistent with procurement integrity requirements (see 3.104). Interested parties include potential offerors, end users, Government acquisition and supporting personnel, and others involved in the conduct or outcome of the acquisition.  (b) The purpose of exchanging information is to improve the understanding of Government requirements and industry capabilities, thereby allowing potential offerors to judge whether or how they can satisfy the Government's requirements, and enhancing the Government's ability to obtain quality supplies and services, including construction, at reasonable prices, and increase efficiency in proposal preparation, proposal evaluation, negotiation, and contract award.  (c) Agencies are encouraged to promote early exchanges of information about future acquisitions. An early exchange of information among industry and the program manager, contracting officer, and other participants in the acquisition process can identify and resolve concerns regarding the acquisition strategy, including proposed contract type, terms and conditions, and acquisition planning schedules; the feasibility of the requirement, including performance requirements, statements of work, and data requirements; the suitability of the proposal instructions and evaluation criteria, including the approach for assessing past performance information; the availability of reference documents; and any other industry concerns or questions.
  7. 7. 7 OOppeenn MMaarrkkeett  Open Market Items are also known as incidental items, non-contract items, non-Schedule items, and items not on a Federal Supply Schedule contract.  For administrative convenience, an ordering activity contracting officer may add items not on the Federal Supply Multiple Award Schedule (MAS) -- referred to as open market items -- to a Federal Supply Schedule blanket purchase agreement (BPA) or an individual task or delivery order, only if-  (1) All applicable acquisition regulations pertaining to the purchase of the items not on the Federal Supply Schedule have been followed (e.g., publicizing (Part 5), competition requirements (Part 6), acquisition of commercial items (Part 12), contracting methods (Parts 13, 14, and 15), and small business programs (Part 19));  (2) The ordering activity contracting officer has determined the price for the items not on the Federal Supply Schedule is fair and reasonable;  (3) The items are clearly labeled on the order as items not on the Federal Supply Schedule; and  (4) All clauses applicable to items not on the Federal Supply Schedule are included in the order.
  8. 8. CCrreeddiitt CCaarrddss –– SSmmaarrttPPaayy  In 1998, GSA awarded five contracts to provide federal agencies with a new way to pay 8 for commercial goods and services, as well as travel and fleet-related expenses.  The GSA SmartPay® contracts are effective from November 30, 1998 through November 29, 2003, with five one-year option periods to renew the contract. Awards were made to five service providers: Bank of America, Bank One, Citibank, Mellon Bank and U.S. Bank. – Benefits  A streamlined purchasing process that eliminates the use of purchase orders and reduces administrative costs;  An improved payment process that allows fully automated invoicing and payment processing;  Performance based refunds for agencies based on net charge volume; and  Electronic access systems that allow for streamlined financial operations and allocation methods.
  9. 9. 9 IIFFBB  An invitation for Bid (IFB) is most commonly used when the government desires goods and services that are easily described in exact terms.  Typically, an IFB will include a description of the specifications for the product or service to be acquired, instructions for preparing a bid, the conditions for purchase, packaging, delivery, shipping and payment, the contract clauses that will be included, and the deadline for submitting bids.  The IFB also designates the date and time of bid opening. Each sealed bid is opened in public at the procurement office at the time designated in the invitation. Facts about each bid are read aloud and recorded.  A contract is then awarded to the low, responsible bidder whose bid conforms with all requirements of the IFB and will be advantageous to the government in terms of price and price related factors included in the invitation. See FAR Subpart 9.1.
  10. 10. 10 SSoollee SSoouurrccee  FAR Part 13.106 requires soliciting among a reasonable number (generally, three) of sources to promote competition to the maximum extent practical. Solicitations may only be limited to one source, if it is determined that it is the only source reasonably available. If only one source is solicited, the official order file must be documented to explain the absence of competition.  6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.  6.302-2 -- Unusual and Compelling Urgency.  6.302-3 -- Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services.  6.302-4 -- International Agreement.  6.302-5 -- Authorized or Required by Statute.  6.302-6 -- National Security.  6.302-7 -- Public Interest.
  11. 11. Governmentwide Acquisition CCoonnttrraaccttss ((GGWWAACCss)) http://www.gsa.gov/portal/category/101711 11 A governmentwide acquisition contract (GWAC) is a contract between a commercial IT service or product vendor and the U.S. government that consolidates the procurement of IT solutions across multiple federal agencies. A GWAC is a multiple-award, indefinite delivery, indefinite quantity (MA/IDIQ) contract, meaning that federal agencies can purchase an unlimited number of products or service hours under a single GWAC during a specified period of time.
  12. 12. SSmmaallll BBuussiinneessss SSeett--AAssiiddeess 12  Under the Small Business Act, federal agencies conduct a variety of procurements that are reserved exclusively for small business participation. These transactions are called "small business set-asides" and include the Small Business Reserve, Set-Asides above the simplified acquisition threshold, the Small Business Competitiveness Demonstration Program, the Very Small Business Set-Aside Pilot Program, and the HUBZone Empowerment Contracting Program. For all procurement actions expected to exceed the $100,000 simplified acquisition threshold, prime contractors are required to make a "best effort' attempt to make use of small, disadvantaged, and women-owned small businesses as subcontractors if the opportunity exists under the contract.  For procurement actions expected to exceed $500,000 ($1 million for construction), the winning contractor is required to provide the agency contracting officer with a written plan that establishes a small business subcontracting goal. The plan details how the winning contractor will make use of small business in each subcontract category and provide for timely payments (goals negotiated).
  13. 13. WWhhaatt iiss tthhee GGSSAA PPrrooggrraamm??  Contracts to provide supplies and/or services directly with customers at stated prices for given periods of time.  National (worldwide) account agreement to sell products and/or services at pre-negotiated fair and reasonable prices, along with specific terms and conditions.  Volume discount pricing on a direct delivery basis.  Best value selection to meet government needs at the lowest overall cost (the price of the item plus administrative costs).
  14. 14. 14 WWhhyy hhaavvee oonnee??  Preferred government purchasing program  GSA Sales in FY 12 were $37.7 billion  Has terms/conditions/clauses incorporated. Most-favored customer status pre-negotiated.  Products are Trade Compliant.  Satisfactory Customer Satisfaction Survey.  Satisfactory Financial status. Makes them feel good.  Easier to document their contract files.
  15. 15. WHICH CATEGORIES OF SMALL BUSINESS MUST BE CERTIFIED BY SBA?  Small Disadvantaged Businesses (SDB), HUBZone small business concerns, and 8(a) firms must be certified by SBA.  Other categories, including  small businesses,  women-owned small businesses,  veteran-owned small businesses,  and service-disabled veteran small businesses may self-certify as to their status. 15
  16. 16. SSaammpplliinngg ooff GGSSAA SScchheedduulleess  Document Conversion Services  Energy Management Services  Human Resources Services  Information Technology (HW, SW, Maint, Repair, Leasing, Rental, Services, 16 Training, EC, Telecomm, etc)  Logistics Management (LOGWORLD)  Management and Organizational Business Improvement Services (MOBIS)  Professional Engineering Service  Publications.  Law Enforcement/Fire Fighting.  Clothing.  Temporary Services.
  17. 17. BBllaannkkeett PPuurrcchhaassee AAggrreeeemmeennttss  Ordering activities to fill “repetitive ” requirements. BPA provisions are contained in all Federal Supply Schedule contracts - do your homework. 17  Does not obligate funds nor commit the agency.  Effectively avoids/limits traditional competition requirements.  Make BPA period the end of your five-year schedule.  Saves agency, time, money and requirement to solicit three bids.  Can discount by product class, SIN, or manufacturer.
  18. 18. 18 TTeeaammiinngg AAggrreeeemmeennttss  Permitted when using Federal Supply Schedules.  All participants of the Team Arrangement must have a FSS contract.  Schedule contractors may incorporate the Team Arrangement into a BPA.  Ordering activities should follow FAR 9.6 & FAR 8.4 and make a Best Value selection.  Benefit to the Agency: convenience & integration solutions  Each GSA contractor reports own GSA revenues.  Parties determine who will be the “Prime”-won’t get rich as a Prime – perhaps 1-2 pts from sub-GSA partners.
  19. 19. 19 CCooooppeerraattiivvee PPuurrcchhaassiinngg ((bbeeggaann MMaayy 88tthh,, 22000033))   A landmark piece of legislation passed last December, the E-Government Act of 2002, opens a new and significant channel for selling to states and localities. Section 211 of the Act authorizes the General Services Administration (GSA) to provide use of its Federal Supply Schedule for information technology or Schedule 70 to state and local governments.  Eligible users would include all 50 states, 3,139 counties,19,365 incorporated municipalities, 30,386 minor subdivisions, 3,200 public housing authorities, 14,178 school districts, 1,625 public educational institutions of higher learning and 550 Indian Tribal governments.  The updated proposed rules that would govern this new arrangement were posted to the Federal Register for comments, which are due on or before July 7th, 2003.
  20. 20. 20 SSuummmmaarryy  Get on a contract vehicle(s) - keep it/them current.  Determine what makes you unique “Best Value”  Seek Blanket Purchase Agreements.  Seek Teaming Agreements (for products/services you do not offer).  Seed your competition – know your competition.
  21. 21. 21 SSuummmmaarryy ((ccoonnttiinnuueedd))  Know agency budget, mission, use of your services, procurement preferences.  Sell “Solutions” not products.  Spend monies on advertising (email marketing, direct mail, trade shows, publications).  Know the rules and regulations (Federal Acquisition Regulations).  Stay contractually compliant.  Have lots of patience - need staying power.
  22. 22. 22 QQuueessttiioonnss??????  Visit www.capitalreps.com  Call us @ 703-326-0640 or  E-mail us @ rmackey@capitalreps.com

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