Basics of selling to the government 4 16-13


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By now you must have some idea how huge the federal government marketplace is. The federal government market is the largest in the world! Would you like to participate in that marketplace but don't know where to start? Then attend this introduction to the basics of selling to the government. You'll get basic information on the market, how the market is segmented, buying channels, terminology, registrations and certifications involved and the starting points for positioning your company to sell into the government market. Presenter: John Kilian, MN Procurement Technical Assistance Center (PTAC)

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Basics of selling to the government 4 16-13

  1. 1. The Basics ofSelling to the Government________________________________________SADBOC Procurement Fair – 4/16/13Earle Brown Heritage Center, Brooklyn Center, MNJohn KilianSE MN Area Manager, MN
  2. 2. Workshop Objectives•Overview of PTAC.•Explain Government “Marketplace”.•Review the basic procurement process,registrations/certifications related to doingbusiness with the Government.•Provide Key items to ensure success in theFederal, State and/or Local marketplace.•Next Steps – You can begin Today!
  3. 3. About PTACProcurement Technical Assistance Center (PTAC)• Nationwide federally funded program by the Defense LogisticsAgency (DLA). Our focus is assisting Minnesota businesses to: Understand the government procurement process, practices andmethods. Improve competitiveness and business development capabilitiesthrough strategic marketing, research and contacts. Identify, secure, maintain and ultimately help grow currentgovernment contracts and future awards.• PTAC extends its services and support to all MN based business.• One-Time Fee ($250) to become lifetime PTAC
  5. 5. About PTACServices:• Market Opportunity Assessment• Registration / Certification Assistance• Prime and Subcontracts• Bid/Proposal Guidance• Training• Research Procurement Histories• Electronic Bid Match
  6. 6. About PTACBid Match Service:• Automatic electronic searching of 1400+ federal, state,and local govt. websites.• Website surfing “not required”.• Requires identification of key words/phrases,product/service info, NAICS codes, FSC/PSC codes.• Search criteria can be “filtered” geographically by area,region, states, agencies etc.• Web-based or E-mail
  7. 7. About
  8. 8. About PTACTraining Seminars:• Introduction to Government Contracting• Research, Research, Research• Developing Winning Government Marketing Materials• Selling to the Government – “Advanced Successful Strategies”• Responding to Solicitations• GSA Schedules – “A Business Perspective”• Selling to State of Minnesota• Doing Business with the US Army Corps of Engineers• Military Packaging• Advanced Contractor Series: A Legal
  9. 9. About PTAC2012 Results:• Since 1991, PTAC has assisted thousands of Minnesotacompanies in securing and/or maintaining government contracts!• PTAC Fiscal Year 2012: Worked with 1,169 clients throughout MinnesotaSponsored 60 workshops with 2,694 attendeesConsulted with 458 new business owners with 2,871follow-up meetingsAttracted 900+ attendees to the 13th Annual ProcurementFair & 150 to Greater MN Procurement Fair.Assisted in securing 1,869 contracts totaling $427million140 individual companies received
  10. 10. Government Market Place• The Federal Govt. purchases more than $500B ofgoods and services annually.• Market includes the federal, state and local agencies(cities, counties, school districts, libraries, etc.)• Extensive procurement regulations to comply with andlengthy sales “cycle”.• Small Business subcontracting opportunities available.• Set-Aside, Disadvantage Preference
  11. 11. Government Market$517+ Billion Total Contract Awards – 2012*• $361B = Department of Defense• $25B = Department of Energy• $19B = Department Health & Human Services• $17B = Department of Veterans Affairs• $15B = NASA• $12B = Department of Homeland Security• $10B = GSA• $8B = Department of State• $7B = Department of Justice• $6B = Department of Transportation• $6B = Department of Treasury• $5B = Department of Agriculture• $5B = Agency for International Development• $4B = Department of Interior• $2B = Department of EducationMinnesota’sShare = $2.7B*As reported
  12. 12. Government Market Place“What” does the government buy……..everything!• Products:Computer hardware/software, medical/dental supplies, officesupplies/furniture, foods, machined parts, oil, aviationequipment, clothing, war fighter supplies, etc.• Services:Consulting, staffing, training, engineering, architecture,construction related, web development, medical codingmeeting, planning, debt collection, social media, hazardouscleaning, janitorial, security services, etc.• Innovative Solutions:New technology, “green” solutions, software development,unique devices, new processes,
  13. 13. Government Market Place“How” does the Federal government Buy?- Agency Inventories- Excess from other Agencies- Federal Prison Industries- Ability One (Blind/Severely Handicapped)- GSA/DLA Stock Inventory- GSA Schedules- Open Competition (“Solicitations”)
  14. 14. Government Market PlaceSOLICITATIONS:“Mandated method, requiring a publically postedannouncement of the government’s intent topurchase from the business community.”FEDERAL: FedBizOppsThe single government point-of-entry for federalgovernment procurement opportunities over $25,
  15. 15. Government Market Placewww.mnptac.org
  16. 16. Government Market PlaceMilitary Solicitation sources:• Department of Defense (DoD) –, Marine Corps, Navy, Air Force, National Guard, CoastGuard, Base Exchange, Commissary• Defense Logistics Agency (DLA) –• DoD Small Business Assistance -
  17. 17. Government Market PlaceDefense Logistic Agency (DLA):• DLA Philadelphia (formerly DSCP): Troop Support – i.e.) Clothing and Textiles, Construction,Weapon System Equipment, Spare Parts, Medical andSubsistence• DLA Richmond (formerly DSCR): Aviation and all things related• DLA Columbus (formerly DSCC/DESC): & Maritime and Energy – i.e.) Vehicular spare parts,electronics, piece parts, energy products, petroleum,
  18. 18. Government Market Placewww.ptac-meda.net
  19. 19. Government Market PlaceCommercial (COTS) Products/Services:General Services Administration (GSA):GSA supports all Federal agencies, to obtain the products,services, consulting, space, real estate, and vehicles they needfrom federal and/or commercial sources.GSA Service Organizations: Federal Acquisition Service (FAS):Multiple Awards Schedules (MAS) / Federal Supply Schedules (FSS) Public Building Service (PBS):Real Estate, Facilities, Design (A/E) &
  20. 20. Government Market PlaceGSA – Federal Supply Schedules:• GSA Schedules – Potential 20 year contract Contract pre-negotiates pricing, terms and conditions. Contract is “empty” IDIQ – Indefinite Delivery Indefinite Quantity GSA negotiates and administers contract.• Any federal agency can place orders against the GSA contract.• Must consider at least three schedules before placing orders.• Contractor collects/pays GSA a quarterly Industrial Funding Fee (IFF)• $47B+ spent on Schedules in 2012 --- Over 22,000 Vendors!• Vendor MUST market contract…no guarantee of orders!
  21. 21. Doing Business withthe Governmentwww.ptac-meda.net
  22. 22. Government Market PlaceState & Local Solicitation resources:• State of MN –• U of M –• City of Minneapolis –• City of St. Paul & Ramsey County –• Hennepin County – click on “Business”• State and Local Government on the Net -
  23. 23. Government Market Placewww.mnptac.org
  24. 24. Government Market Place
  25. 25. Government Market PlaceWhat are the “Rules” with the Govt?• Federal government - Federal Acquisition Regulations (FAR)• State government – 50 different rule books!www.statelocalgov.netWhat are the Contracting Methods?• Micro-purchases• Simplified Procedures• Sealed Bidding• Contract Negotiations• Consolidated/Co-operative Purchasing
  26. 26. Government Market PlaceFederal Government “Markets”.Open Market• Solicitations• Electronic Mallswww.mnptac.orgHidden Market• Purchase or Smart Cards• Small/Micro Purchases• GSA Schedules• Sole Source/Follow-on awards• Prime Contractor/Teaming• Cooperative Purchasing• Government Wide Area Contract(GWAC)
  27. 27. Government Market PlaceGovernment Sales history/forecasts?• Federal Procurement Data Systems (FPDS)• USA• Federal Agency Forecasts• Office of Small and Disadvantaged Business Utilization (OSDBU)• General Services Administration (GSA) “GSA Advantage & SSQ Reports”
  28. 28. Government Market Placewww.mnptac.org
  29. 29. www.mnptac.org
  30. 30. Doing Business withthe Government1st Question ---- Am I “Large” or “Small” business?•SBA sets the size standards, and matches them to each ofthe NAICS codes!• Small Business Size Standards:• NAICS Codes: Searchable by Keyword, and may have more than one! Most Bid opportunities are posted based on NAICS code!• “Rule of Thumb”:• Manufacturing–1 year average number of employees (usually < 500)• Services– 3 year average revenues, but differs by industry (variesfrom $7M - $100M)
  31. 31. Doing Business withthe GovernmentLarge or Small business…what’s the big deal?• Set-Asides --- restricts competitors!• Agencies and Primes must subcontract!Current Subcontracting Goals:Goal* Actual**• Small Business 23% 21.6%• Small Disadvantage (incl. 8(a)) 5% 7.7%• Women-Owned 5% 4.0%• Veteran / Service Disabled-Owned Vet 3% 2.6%• HUBZone 3% 2.4%* Statutory Goals – Actual goals vary by agency/prime** Source data – SBA Goaling Report
  32. 32. Doing Business withthe GovernmentLarge Business Subcontracting Plans:• Large business receiving contracts over $650K, ($1.5M forconstruction) must submit a subcontracting plan – subjectto annual approval by the C.O.• The plan requires specific goals for each of the smallbusiness categories.• Contractor must designate a Small Business LiaisonOfficer (SBLO).• Listing of SBLO’s, by Contractor, by State at:
  33. 33. Doing Business withthe GovernmentHow can I become a government contractor?Register your business! (Federal)1. DUNS - or 1-866-705-57112. NAICS - DSBS - SAM - (Mandatory with Federal.)
  34. 34. Doing Business withthe Government
  35. 35. Doing Business withthe Governmentwww.ptac-meda.net
  36. 36. Doing Business withthe Government
  37. 37. Doing Business withthe GovernmentREGISTRATION - Small Business – (Federal):• Small Business (Self Certify)• Small Disadvantaged Business (Self Certify)• Woman-Owned Small Business & EDWOSB (Self Certifyand SBA Application, effective Feb, 2011)• Veteran-Owned Small Business (Self Certify/VA verified)• Service Disabled Veteran-Owned Small Business (SelfCertify / VA verified)• 8(a) (SBA Certified)• HUB-Zone Small Business (SBA Certified)
  38. 38. Doing Business withthe GovernmentREGISTATION - Small Business – (States):Minnesota Programs: (varies be state!):• Women’s Business Enterprise National Council (WBENC)• Disadvantaged Business Enterprise (DBE)• Targeted Group / Economically Disadvantaged (TG/ED)• Central Certification (CERT)• Midwest Minority Supplier Development Council (MMSDC)
  39. 39. Doing Business withthe GovernmentREGISTRATION – Veterans (Fed & State):- Service-Disabled Veteran-Owned Small Businesses (SDVOB)- Veteran-Owned Small Businesses (VOSB)• CVE – Center for Veteran’s Enterprise -• VETERAN’S FIRST PROGRAM: Public Law 109-461 is a unique procurement programsupporting veterans in business. This procurement programonly applies to the Department of Veterans Affairs prime andsubcontracting opportunities. They must first try to findSDVOSBs and then VOSBs. Other small business
  40. 40. Doing Business withthe Government
  41. 41. Doing Business withthe GovernmentKeys to Success!Know and understand your Customer!• What do they buy?• Why do they buy it?• How & When do they buy it?• Do they have funding today or next year?• Learn their preferred contracting methods?• How/When/Where to register?• Leverage Small Business preferences• It is a Business Development Challenge NOT a Sales initiative!• Know your Competition -- Understand Teaming, Subcontracting!• It can, and will, take time to work the “system”!• Research, Research and more Research!
  42. 42. Doing Business withthe GovernmentGood News… We WON a Govt. contract!!Bad News… We WON a Govt. contract!!Requires Contractor to ensure:• On-going Contract Administration• Compliance with Contract Terms and Conditions• Reporting Contract Sales• Monitoring Subcontract/Prime Policies and Procedures• Timely Deliveries• Invoicing, Bidding, Modifications• Audits,
  43. 43. www.mnptac.org
  44. 44. Thank You!www.mnptac.orgPlease visit the PTAC booth if youhave questions or need more info!