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Basics of selling to the government j kilian 031009
- 1. The Basics of Selling to the Government Greater MN Resource & Govt. Procurement Fair Treasure Island Casino, Welch, MN October 9, 2013 ______________________________________ John Kilian PTAC Area Manager/GSA Specialist jkilian@mnptac.org 612-259-6586 www.mnptac.org 1
- 2. Workshop Objectives _________________ • Overview of PTAC. • Explain Government “Marketplace”. • Review the basic procurement process, registrations/certifications related to doing business with the Government. • Provide Key items to ensure success in the Federal, State and/or Local marketplace. • Next Steps – You can begin Today! www.mnptac.org 2
- 3. About PTAC _______________ Procurement Technical Assistance Center (PTAC) • Nationwide federally funded program by the Defense Logistics Agency (DLA). Our focus is assisting Minnesota businesses to: Understand the government procurement process, practices and methods. Improve competitiveness and business development capabilities through strategic marketing, research and contacts. Identify, secure, maintain and ultimately help grow current government contracts and future awards. • PTAC extends its services and support to all MN based business. • One-Time Fee ($250) to become lifetime PTAC client. www.mnptac.org 3
- 5. About PTAC _______________ Services: • Market Opportunity Assessment • Registration / Certification Assistance • Prime and Subcontracts • Bid/Proposal Guidance • Training • Research Procurement Histories • Electronic Bid Match Service www.mnptac.org 5
- 6. About PTAC _______________ Bid 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 delivery. www.mnptac.org 6
- 8. About PTAC _______________ Training 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 Perspective www.mnptac.org 8
- 9. About PTAC _______________ 2012 Results: • Since 1991, PTAC has assisted thousands of Minnesota companies 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 2,871 follow-up meetings Attracted 900+ attendees to the 13th Annual Procurement Fair & 150 to Greater MN Procurement Fair. Assisted in securing 1,869 contracts totaling $427million 140 individual companies received awards www.mnptac.org 9
- 10. Government Market Place _____________________ • The Federal Govt. purchases more than $500B of goods and services annually. • Market includes the federal, state and local agencies (cities, counties, school districts, libraries, etc.) • Extensive procurement regulations to comply with and lengthy sales “cycle”. • Small Business subcontracting opportunities available. • Set-Aside, Disadvantage Preference programs. www.mnptac.org 10
- 11. Government Market Place _____________________ $517+ Billion Total Contract Awards – 2012* • $361B = Department of Defense • • • • • • • • • • • • • • $25B $19B $17B $15B $12B $10B $ 8B $ 7B $ 6B $ 6B $ 5B $ 5B $ 4B $ 2B = Department of Energy = Department Health & Human Services = Department of Veterans Affairs = NASA = Department of Homeland Security = GSA = Department of State = Department of Justice Minnesota’s = Department of Transportation Share = $2.7B = Department of Treasury = Department of Agriculture = Agency for International Development = Department of Interior *As reported in USAspending.gov = Department of Education www.mnptac.org 11
- 12. Government Market Place _____________________ “What” does the government buy…….everything! • Products: Computer hardware/software, medical/dental supplies, office supplies/furniture, foods, machined parts, oil, aviation equipment, clothing, war fighter supplies, etc. • Services: Consulting, staffing, training, engineering, architecture, construction related, web development, medical coding meeting, planning, debt collection, social media, hazardous cleaning, janitorial, security services, etc. • Innovative Solutions: New technology, “green” solutions, software development, unique devices, new processes, etc. www.mnptac.org 12
- 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”) www.mnptac.org 13
- 14. Government Market Place _____________________ SOLICITATIONS: “Mandated method, requiring a publically posted announcement of the government’s intent to purchase from the business community.” FEDERAL: FedBizOpps The single government point-of-entry for federal government procurement opportunities over $25,000. www.fbo.gov www.mnptac.org 14
- 16. Government Market Place _____________________ Military Solicitation sources: • Department of Defense (DoD) – www.defense.gov/ Army, Marine Corps, Navy, Air Force, National Guard, Coast Guard, Base Exchange, Commissary • Defense Logistics Agency (DLA) – www.dla.mil/ • DoD Small Business Assistance - www.acq.osd.mil/osbp/ www.mnptac.org 16
- 17. Government Market Place _____________________ Defense Logistic Agency (DLA): • DLA Philadelphia (formerly DSCP): http://www.troopsupport.dla.mil/ - Troop Support – i.e.) Clothing and Textiles, Construction, Weapon System Equipment, Spare Parts, Medical and Subsistence • DLA Richmond (formerly DSCR): http://www.aviation.dla.mil/ - Aviation and all things related • DLA Columbus (formerly DSCC/DESC): http://www.landandmaritime.dla.mil/ -Land & Maritime and Energy – i.e.) Vehicular spare parts, electronics, piece parts, energy products, petroleum, etc. www.mnptac.org 17
- 19. Government Market Place _____________________ Commercial (COTS) Products/Services: General Services Administration (GSA): GSA supports all Federal agencies, to obtain the products, services, consulting, space, real estate, and vehicles they need from 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) & Construction www.mnptac.org 19
- 20. Government Market Place _____________________ GSA – 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! http://www.gsa.gov/portal/category/100611 www.mnptac.org 20
- 21. Doing Business with the Government http://www.gsaelibrary.gsa.gov/ElibMain/home.do www.mnptac.org www.ptac‐meda.net 21
- 22. Government Market Place _____________________ State & Local Solicitation resources: • State of MN – http://www.mmd.admin.state.mn.us/solicitations.htm U of M – http://purchasing.umn.edu/ • • City of Minneapolis – http://www.ci.minneapolis.mn.us/business/business_doing_busi ness_with_city • City of St. Paul & Ramsey County – http://www.stpaul.gov/index.aspx?NID=221 Hennepin County – http://hennepin.us/ click on “Business” • • State and Local Government on the Net http://www.statelocalgov.net/index.cfm www.mnptac.org 22
- 25. Government Market Place _____________________ What are the “Rules” with the Govt? • Federal government - Federal Acquisition Regulations (FAR) www.acquisition.gov/Far/ • State government – 50 different rule books! www.statelocalgov.net What are the Contracting Methods? • • • • • Micro-purchases Simplified Procedures Sealed Bidding Contract Negotiations Consolidated/Co-operative Purchasing Programs www.mnptac.org 25
- 26. Government Market Place _____________________ Federal Government “Markets”. Open Market • Solicitations • Electronic Malls Hidden 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) www.mnptac.org 26
- 27. Government Market Place _____________________ Government Sales history/forecasts? • Federal Procurement Data Systems (FPDS) https://www.fpds.gov • USA Spending www.usaspending.gov • Federal Agency Forecasts https://www.acquisition.gov/comp/procurement_forecasts/index.html • Office of Small and Disadvantaged Business Utilization (OSDBU) http://www.osdbu.gov/members.html • General Services Administration (GSA) https://ssq.gsa.gov “GSA Advantage & SSQ Reports” www.mnptac.org 27
- 30. Doing Business with the Govt! _________________________ 1st Question ---- Am I “Large” or “Small” business? •SBA sets the size standards, and matches them to each of the NAICS codes! • Small Business Size Standards: http://www.sba.gov/content/table-small-business-size-standards • NAICS Codes: http://www.census.gov/eos/www/naics Searchable by Keyword, and may have more than one! Many 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 (varies from $7M - $100M) www.mnptac.org 30
- 31. Doing Business with the Govt! _________________________ Large or Small business…what’s the big deal? • Set-Asides --- restricts competitors! • Agencies and Primes must subcontract! Current Subcontracting Goals: • • • • • Goal* Small Business 23% Small Disadvantage (incl. 8(a)) 5% Women-Owned 5% Veteran / Service Disabled-Owned Vet 3% HUBZone 3% Actual** 22.2% 8.0% 4.0% 3.0% 2.0% * Statutory Goals – Actual goals vary by agency/prime ** Source data – SBA Goaling Report 2012 www.mnptac.org 31
- 32. Doing Business with the Govt! _________________________ Large Business Subcontracting Plans: •Large business receiving contracts over $650K, ($1.5M for construction) must submit a subcontracting plan – subject to annual approval by the C.O. •The plan requires specific goals for each of the small business categories. •Contractor must designate a Small Business Liaison Officer (SBLO). •Listing of SBLO’s, by Contractor, by State at: http://www.sba.gov/category/navigationstructure/contracting/contracting-opportunities/subcontracting/subcontracting-opportunities-directory www.mnptac.org 32
- 33. Doing Business with the Govt! _________________________ How can I become a government contractor? Register your business! (Federal) 1. DUNS - http://fedgov.dnb.com/webform or 1-866-705-5711 2. NAICS - http://www.census.gov/eos/naics/ 3. DSBS - http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm 4. SAM - http://www.sam.gov (Mandatory with Federal.) www.mnptac.org 33
- 34. Doing Business with the Government http://www.census.gov/eos/www/naics/ www.mnptac.org 34
- 35. http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm Doing Business with the Government www.mnptac.org www.ptac‐meda.net 35
- 36. Doing Business with the Government http://www.sam.gov www.mnptac.org 36
- 37. Doing Business with the Govt! _________________________ REGISTRATION - Small Business – (Federal): • Small Business: (Self Certify) • Small Disadvantaged Business: (Self Certify) • Woman-Owned Small Business & EDWOSB: (Self Certify and SBA Application, effective Feb, 2011) • Veteran-Owned Small Business: (Self Certify/VA verified) • Service Disabled Veteran-Owned Small Business: (Self Certify / VA verified) • 8(a): (SBA Certified) • HUB-Zone Small Business: (SBA Certified) www.mnptac.org 37
- 38. Doing Business with the Govt! _________________________ REGISTATION - 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) www.mnptac.org 38
- 39. Doing Business with the Govt! _________________________ REGISTRATION – Veterans (Fed & State): - Service-Disabled Veteran-Owned Small Businesses (SDVOB) - Veteran-Owned Small Businesses (VOSB) • CVE – Center for Veteran’s Enterprise http://www.va.gov/osdbu/vip/step1.asp • VETERAN’S FIRST PROGRAM: Public Law 109-461 is a unique procurement program supporting veterans in business. This procurement program only applies to the Department of Veterans Affairs prime and subcontracting opportunities. They must first try to find SDVOSBs and then VOSBs. Other small business categories follow. www.mnptac.org 39
- 40. Doing Business with the Government http://www.va.gov/osdbu/vip/step1.asp www.mnptac.org 40
- 41. Doing Business with the Govt! _________________________ Keys to Success! Know and understand your Customer! • • • • • • • • • • • What do they buy? When do they buy it? How & Why 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! www.mnptac.org 41
- 42. Doing Business with the Govt! _________________________ Good 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, Close-outs www.mnptac.org 42
- 44. Thank You! ____________ Please visit the PTAC booth if you have questions or need more info! www.mnptac.org 44