Intro to Government Contracting


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Intro to Government Contracting

  1. 1. Introduction to Government Contracting________________________________________ SADBOC Procurement Fair – 4/25/12 Earle Brown Heritage Center, Brooklyn Center, MN John Kilian SE MN Area Manager, MN PTAC
  2. 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!
  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 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.
  5. 5. About PTACServices: • Market Opportunity Assessment • Registration / Certification Assistance • Prime and Subcontracts • Bid/Proposal Guidance • Training • Research Procurement Histories • Electronic Bid Match Service
  6. 6. About PTACBid Match Service:• Automatic electronic searching of 500+ 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.
  7. 7. About PTAC
  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 Perspective
  9. 9. About PTAC2011 Results:• Since 1991, PTAC has assisted thousands of Minnesotacompanies in securing and/or maintaining government contracts!• PTAC Fiscal Year 2011:  Worked with 1,267 clients throughout Minnesota Sponsored 67 workshops with 2,617 attendees Consulted with 445 new business owners with 3,614 follow-up meetings Attracted 1,000+ attendees to the 12th Annual Procurement Fair & 250 to Greater MN Procurement Fair. Assisted in securing 1,837 contracts totaling $503 million 170 individual companies received awards
  10. 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.
  11. 11. Government Market Place$536+ Billion Total Contract Awards – 2011*• $375B = Department of Defense• $25B = Department of Energy• $19B = Department Health & Human Services• $17B = Department of Veterans Affairs• $16B = NASA• $14B = Department of Homeland Security• $12B = GSA• $9B = Department of State Minnesota’s• $7B = Department of Justice Share = $2.6B• $7B = Department of Treasury• $5B = Department of Agriculture• $5B = Department of Transportation *As reported in• $4B = Agency for International Development• $4B = Department of Interior• $2B = Department of Education
  12. 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, 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.
  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: FedBizOpps The single government point-of-entry for federal government procurement opportunities over $25,000.
  15. 15. Government Market Place
  16. 16. Government Market PlaceMilitary Solicitation sources:• Department of Defense (DoD) – Army, Marine Corps, Navy, Air Force, National Guard, Coast Guard, 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 and Subsistence• DLA Richmond (formerly DSCR): - Aviation and all things related• DLA Columbus (formerly DSCC/DESC): -Land & Maritime and Energy – i.e.) Vehicular spare parts, electronics, piece parts, energy products, petroleum, etc
  18. 18. Government Market Place
  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 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
  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)• $45B+ spent on Schedules in 2011 --- Over 22,000 Vendors!• Vendor MUST market contract…no guarantee of orders!
  21. 21. Doing Business with the Government
  22. 22. Government Market PlaceState & Local Solicitation resources: • State of MN – • U of M – • City of Minneapolis – ness_with_city • City of St. Paul & Ramsey County – • Hennepin County – click on “Business” • State and Local Government on the Net -
  23. 23. Government Market Place
  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 Programs
  26. 26. Government Market PlaceFederal Government “Markets”.Open Market Hidden Market • Solicitations • Purchase or Smart Cards • Electronic Malls • 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 Spending • Federal Agency Forecasts • Office of Small and Disadvantaged Business Utilization (OSDBU) • General Services Administration (GSA) “GSA Advantage & SSQ Reports”
  28. 28. Government Market Place
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  30. 30. Doing Business with the Government1st 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: • 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 (varies from $7M - $100M)
  31. 31. Doing Business with the 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% 22.6% • Small Disadvantage (incl. 8(a)) 5% 7.9% • Women-Owned 5% 4.0% • Veteran / Service Disabled-Owned Vet 3% 2.5% • HUBZone 3% 2.7% * Statutory Goals – Actual goals vary by agency/prime ** Source data – SBA Goaling Report 2010
  32. 32. Doing Business with the GovernmentLarge 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: structure/contracting/contracting-opportunities/sub- contracting/subcontracting-opportunities-directory
  33. 33. Doing Business with the GovernmentHow can I become a government contractor?Register your business! (Federal)1. DUNS - or 1-866-705-57112. CCR - (Mandatory with Federal.)3. DSBS - ORCA -
  34. 34. Doing Business with the Government
  35. 35. Doing Business with the Government
  36. 36. Doing Business with the Government
  37. 37. Doing Business with the 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)• Service Disabled Veteran-Owned Small Business (SelfCertify / VA approved registration)• 8(a) (SBA Certified)• HUB-Zone Small Business (SBA Certified)
  38. 38. Doing Business with the 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 with the 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 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.
  40. 40. Doing Business with the Government
  41. 41. Doing Business with the 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 with the 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, Close-outs
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  44. 44. Thank You!Please visit the PTAC booth if youhave questions or need more info!