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Intro to Government Contracting
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
www.mnptac.org
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
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
4. NORTHERN
MN’s Statewide Presence
NORTHERN
CENTRAL
TWIN CITIES
METRO
SOUTHEASTERN
SOUTHWESTERN
www.mnptac.org
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
6. About PTAC
Bid 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.
www.mnptac.org
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
9. About PTAC
2011 Results:
• Since 1991, PTAC has assisted thousands of Minnesota
companies 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
www.mnptac.org
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
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 USAspending.gov
• $4B = Department of Interior
• $2B = Department of Education
www.mnptac.org
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.
www.mnptac.org
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
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
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
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
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
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)
• $45B+ spent on Schedules in 2011 --- Over 22,000 Vendors!
• Vendor MUST market contract…no guarantee of orders!
http://www.gsa.gov/portal/category/100611
www.mnptac.org
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
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
26. Government Market Place
Federal 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)
www.mnptac.org
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
30. Doing Business with
the Government
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!
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)
www.mnptac.org
31. Doing Business with
the Government
Large 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
www.mnptac.org
32. Doing Business with
the Government
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/navigation-
structure/contracting/contracting-opportunities/sub-
contracting/subcontracting-opportunities-directory
www.mnptac.org
33. Doing Business with
the Government
How can I become a government contractor?
Register your business! (Federal)
1. DUNS - http://fedgov.dnb.com/webform or 1-866-705-5711
2. CCR - https://www.bpn.gov/ccr/ (Mandatory with Federal.)
3. DSBS - http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
4. ORCA - https://orca.bpn.gov/
www.mnptac.org
37. Doing Business with
the Government
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)
• Service Disabled Veteran-Owned Small Business (Self
Certify / VA approved registration)
• 8(a) (SBA Certified)
• HUB-Zone Small Business (SBA Certified)
www.mnptac.org
38. Doing Business with
the Government
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
39. Doing Business with
the Government
REGISTRATION – Veterans (Fed & State):
- Service-Disabled Veteran-Owned Small Businesses (SDVOB)
- Veteran-Owned Small Businesses (VOSB)
• CVE – Center for Veteran’s Enterprise - www.vetbiz.gov/
• 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
41. Doing Business with
the Government
Keys 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!
www.mnptac.org
42. Doing Business with
the Government
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
