B2G Seminar Slides for Get in the Game. Sponsored by Whittaker-Cooper Financial Group. Presented by Jack Quinn Solutions, LLC and Space Coast Entrepreneurs

1. Our Sponsor 1

2. Florida Business Bank Joseph Sofia Vice President Commercial Lending

3. Types of Loans Revolving Line of Credit (LOC) Term Loans Equipment Loans Real Estate Acquisition Permanent Working Capital Business Acquisition

4. Lines of Credit Monitored Monthly Borrowing Base Listing of A/R Aging Inventory Cash balances Loan Balance Advance Rate on A/R and Inventory A/R ranges between 80% to 30% based on Receivables that are less than 60 days past due. Inventory can be advanced as high as 50%, but is often not advanced Non-Monitored

5. Term Loan Equipment Loan 3-5 year loan Equipment that can be financed by a vendor (i.e.. John Deere) is typically difficult for a bank to finance. A company needs historical cash flow of at least two full years. Real Estate Acquisition 20-30% down payment 15-20 year amortization 5 year term (balloon payment) Permanent Working Capital 3-5 year loan (fully amortizing) Need payment history Very difficult to get approved Business Acquisition 3-5 year loan Need payment history Difficult to get approved SBA has some options, but that route has become difficult because it still requires adhering to a bank approval process.

6. Ideal Company/Situation Liquidity $50,000-$300,000 in the bank 20-200% of the loan amount requested History Been around for 5-10 years Paid back debt Ownership Has been in the industry for 10-20 years Strong personal credit Liquidity of $50,000 + Solid contracts Clients pay on time A/R and A/P is well managed Limited discrepancy between payments and bills

7. What if you are not IDEAL? Overcompensate in one area Most likely you have strong liquidity or a strong contract, but not both. Review other options: Factoring Equity Loan from Client

8. What does a bank need? From the Business Most recent three years federal tax returns and/or accountant prepared financial statements Year to date financial statements (along with prior year comparable period) Balance Sheet Income Statement Statement of Cash Flow Aging Schedule of Receivables and Payables (dated concurrently with interim balance sheet) Schedule of Corporate Debt Articles of Incorporation, operating or Partnership Agreement For incorporated entities Copy of by-laws, minutes or other documentation identifying officers of the company For start-up Entities Business Plan Draft or signed purchase agreement

9. What does a bank need? Owners Information Most recent three years federal tax returns for all owners/guarantors Personal Financial Statement for all owners/guarantors General Signed application Any other information that may help us understand your business (i.e. brochures, web site information, industry articles, etc)

10. Next Steps Talk to an Accountant Talk to a Lawyer Then, talk to a Banker!

11. 11

12. Federal Contracting:Plain & Simple I. Wayne Cooper, CPA Richard D. Sutter, CPA Whittaker Cooper Financial Group August 11, 2010

13. Whittaker Cooper Financial GroupFederal Government Contracting Services Offering a variety of services – most common: Accounting System Compliance DCAA Audit Assistance Provides specialized expertise to help preserve your funding and livelihood

14. Traditional vs. Federal Accounting Traditional accounting Serves commercial businesses Serves a part of your business as a Federal contractor

15. Traditional vs. Federal Accounting Federal accounting Federal contractors subject to the Federal Acquisition Regulation (FAR) FAR dictates all the regulations/requirements of the accounting system IRS has the tax code; Federal contracting has the FAR Specific expertise needed to ensure compliance with these rules/regulations

16. Traditional vs. Federal Accounting Dual market business How to function when serving both commercial and Federal clients One accounting system to serve both Government trumps commercial and will dictate the accounting system

17. Comparison of Federal and Commercial Contracting Federal Contracting Political influences Socioeconomic concerns Public accountability Size and complexity of contracts Commercial Contracting Less regulated No set process No requirement to solicit multiple vendors Longer relationships with suppliers Different elements in selecting sources

20. Cost sharing – contractor received no fees and is reimbursed only for an agreed-upon portion of its allowable costs

21. Cost Plus Incentive Fee (CPIF) – provides for a negotiated fee to be adjusted based on the relationship of total allowable costs to total target costs

22. Cost Plus Award Fee (CPAF) – provides for a payment of a fee based on a judgmental evaluation by the government sufficient to provide motivation for excellence in performance

24. Factors to Consider in Selecting Contract Type Risk factors Contact administration factors Type and complexity of the requirement Urgency of the requirement Period of performance Extent of subcontracting

25. Categories of Contracts Products/supplies Services Major system acquisition Research & development Construction & architect-engineer Information technology Utility services

26. Federal Contract Cost &Accounting Regulations When do Federal Acquisition Regulations (FAR) cost regulations apply? Fixed-price contracts: When pricing contracts, modifications or subcontracts There is cost analysis Cost-reimbursement contracts: According to the cost-reimbursement contract clauses

27. Simplified Acquisition Procedures Simplified Acquisition Procedures (SAP) applies to: Purchases of supplies over $3,000 but less than $100,000 Purchases of services over $2,500 but less than $100,000 Construction over $2,000 but less than $100,000 Commercial items purchases over $3,000 but less than $5,500,000

28. Simplified Acquisition Procedures The purpose of the Simplified Acquisition Procedures Reduces administrative costs Improves opportunities for small businesses Promotes efficiency and economy Avoids unnecessary administrative burdens

29. Accounting System Compliance Often the first thing contractors need help with upon securing an award Basis for maintaining your contract and avoiding possible suspension, cancellation or pay back of your award dollars

30. Accounting System Software You have options ranging from the following: A high end, industry specific package such as Deltek which can do most everything at a price. A more budget friendly system such as QuickBooks or Peachtree Accounting Exports into MS Excel to meet presentation and calculation needs Add-ons and other software packages are available to assist with the preparation of the necessary reports and cost pools using data exported from QuickBooks and Peachtree Accounting

31. Chart of Accounts Core of the company’s accounting system Creates a formatted structure for the company First step in segregating costs into proper cost pools

32. Types of Cost Pools Direct costs Indirect costs Unallowable costs

33. Types of Cost Pools Direct costs Any cost that can be identified with a final cost objective (i.e. a contract/grant/job/task) Examples include labor, subcontractors, consultants and materials

34. Types of Cost Pools Indirect costs Any cost that cannot be identified with one final cost objective but benefits multiple cost objectives Allows for recovery of operation costs not associated with a specific job Further segregated into these general categories Fringe benefits (health insurance) Overhead (rent) General & Administrative (professional fees)

35. Types of Cost Pools Unallowable costs Any cost that cannot be included in prices, cost reimbursements or settlements under a Federal contract to which it is allocable Any cost specifically stated to be unallowable Contractors must properly segregate unallowable costs from allowable costs in the accounting system Contractors may be subject to penalties

36. Timekeeping Timekeeping system that identifies labor by cost objective and allocates this time properly Many contractor’s systems falter here All employees’ time, whether direct or indirect, must be accounted for daily by the work that is performed.

37. Timekeeping Proper procedures must be maintained for time sheets or entering time Each employee is responsible for preparing and correcting their own time sheet Adequate management overview must be provided A written policy must be maintained for employees and management to follow Traceability or an audit trail of changes must be maintained The system should be able to detect errors and required changes

38. Timekeeping Properly completed time sheets must be: Filled out daily and submitted weekly Signed and dated by employee and reviewing supervisor Done in ink or government approved timekeeping system Every employee must comply The work week is 40 hours The work year consists of 2080 hours

39. Sample Financial Statements

40. Sample Financial Statements

41. Sample Financial Statements

42. Sample Financial Statements

43. Sample Financial Statements

44. Sample Financial Statements

45. Sample Financial Statements

46. Sample Financial Statements

48. Summary FAR dictates everything in the Federal contracting world Government Compliant Accounting System: Critical Key to maximizing cost recovery Helps you bid competitively

49. Summary Your investment in the proper expertise and accounting system will benefit your company for years to come

50. Questions? Whittaker Cooper Financial Group 1692 West Hibiscus Boulevard Melbourne, Florida 32901 (321) 723-3352 - and - 8085 Spyglass Hill Road Viera, Florida 32940 www.whittaker-cooper.com

51. Thank you!

52. Disclaimer: U.S. Treasury Department Circular 230 Disclosure: This presentation is not intended or written to be used, and cannot be used, by the taxpayer for the purpose of avoiding penalties that the Internal Revenue Service may impose on the taxpayer.

53. 50

54. Get in the GameB2G Market for Small Business Presented by Dr. Randall M. Mauldin USMC (ret), CPSM®, PMP® 51

55. Our Sponsor 52

56. Our TeamBusiness helping Business 53

57. Agenda Provide information about the B2G market Tell you how to register your business for B2G market Discuss options for your business to learn about and become successful in the B2G market 54

58. Presidential Memorandum April 26, 2010 Interagency Task Force on Federal Contracting Opportunities for Small Businesses Tasked to … Develop Innovative Strategies Remove Barriers Expand Outreach Establish policy … to help small business get in the game 55

59. Federal Government Purchases Over $500 billion worth of goods and services each year, from office supplies to aircraft carriers Government agencies fill at least 23% of all purchased with small businesses Over 30% are small business set-aside contracts only small businesses are allowed to compete. 56

60. Federal Market Government spends every year Good times and bad Government pays its bills within 30 days Government purchasing process is transparent Federal opportunities are available to all businesses in the United States Business can sell to federal agencies in any state Prime Contractors have small business goals 57

61. What is purchased? Information from USASpending.gov 58

62. Who Spends in the Federal Market? 59

63. Who Spends in the Federal Market? 60

64. Where do we Spend? 61

65. Top Vendors in the Federal Market? Information from Federal Procurement Data System 62

66. Small Business Spending 63

67. Small Business in the Federal Market 64

68. Small Business Contracting Goals Small business contracting goals established by law for Federal executive agencies: 23 % of prime contracts for small businesses; 5 % of prime and subcontracts for women-owned small businesses; 3 % of prime contracts for HUB Zone small businesses; 3 % of prime and subcontracts for service-disabled veteran-owned small businesses. 65

69. Small Business Set Asides 66

70. When does the government spend? Information from Federal Procurement Data System 67

71. Why Small Business Should Sell to the Federal Market Need for small business $3,000 to $100,000 must be reserved for certified small businesses (Small Business MUST RESPOND) 68

72. Where is the opportunity in the Federal Market? Procurement Methods Micro-purchases - < $3000 Simplified Acquisition Process $3000 to $100,000 By law should be set aside for small business, if small business responds Sealed Bidding – compete on price Contract Negotiations – > $100,000 Consolidated Purchasing – GSA Schedule Small Business Strategy Educate small business community about B2G market Ensure all businesses are registered in Central Contractor Registry Provide strategic guidance about how small business can leverage the rules to participate in the B2G Market Encourage large businesses to support small business with mentorship, supply chain access, financial support Develop network for teaming arrangements 69

73. How Do I Get Involved? 70

74. Develop/Update Business for Government Opportunities Evaluate your business Products and services Marketing and operational plans Competition SWOT Analysis B2G goals Available resources Financing Materials 71

75. Get a D-U-N-S Number Required Business identification number FREE Contact Dun & Bradstreet at 866-705-5711 http://fedgov.dnb.com/webform. 72

76. Classify your product or service North American Industry Classification System (NAICS) Used to categorize products and services. Find your NAICS code: http://www.census.gov/eos/www/naics/ 73

77. Identify National Stock Numbers (NSNs) for all items you sell Make sure all your products and services are identified with an NSN designation Contact the Defense Logistics Information Service at 877-352-2255 to obtain NSNs. 74

78. Register in the Centralized Contractor Registration (CCR) system Primary source for government agencies to learn about prospective vendors Search based on each vendor’s abilities, size, ownership and other parameters Must be registered in CCR to compete for a contract from any federal civilian or military agency THEsource of information 75

79. Information needed for CCR Registration Taxpayer Identification Number D-U-N-S Number NAICS Code Bank account Capability narrative (Elevator Pitch) Key words that apply to your goods and services (250-word limit) Past performance summary Individual experience can be used as past performance Unknown Confidence vs. No Confidence Web site URL - Have a simple website for government marketing 76

80. Obtain a CAGE Code Identifies companies wishing to do business with the federal government CAGE Code automatically assigned once you complete the CCR process To request a Commercial and Government Entity (CAGE) Code, download the form at http://www.forms.gov/bgfPortal/docDetails.do?dId=11327. 77

81. Online Representations and Certifications Application(ORCA) ORCA is a FAR mandated web-based system Government by collecting vendor representations and certifications of business information that is required by law for contract award. Streamlines the process Provides the Contracting Officer with Section K of the Proposal… ORCA use by vendors is mandated by FAR 52.204-8 “The offeror has completed the annual representations and certifications electronically via the … Online Representations and Certifications Application (ORCA) website at https://orca.bpn.gov”

82. Determine if your business qualifies for Small Business Certification The federal government sometimes gives preference to certain businesses: Socially and economically disadvantaged Businesses located in a HUB Zone or those with at least 35 percent of employees in a historically underutilized business zone. Must apply with SBA for 8a category and HUB zone designation (sole-source and 10% price advantage) Visit http://www.sba.gov/gcbd Opportunity, not entitlement 79

83. HUB Zones Sole-Source Set Asides and 10% price advantage on competitive bids 80

84. Familiarize Legal Procedures Federal Acquisition Regulations (FAR) at http://www.arnet.gov/far/. Primary regulation that all federal agencies follow when purchasing goods and services. Must read part 19 (about small businesses programs) 81

85. Check out the procurement forecasts Annual Procurement Forecast Maintained by its Office of Small and Disadvantaged Business Utilization (OSDBU) Agencies required to post actualized forecasts on their web site by October 1. Contact each agency OSDBU at http://www.firstgov.gov 82

86. Explore subcontracting opportunities Market to prime contractors as a subcontractor The Small Business Administration’s site SUB-Net (http://web.sba.gov/subnet/search/) Prime contractors and government, commercial and educational entities post solicitations or notices there. Find Department of Defense subcontracting opportunities and prime contractor contacts at http://www.acq.osd.mil/sadbu/. 83

87. Market your firm to the right contacts Select Prospective government customers Research their requirements Solve unique challenges Identify the agency personnel Provide “leave-behind” materials Attend small business fairs and networking Register in prospect’s databases 84

88. Find Opportunities Fed Biz Ops (www.fbo.gov) Register as a vendor Search using key words for your business Search using North American Industry Classification System (NAICS) Codes http://www.census.gov/eos/www/naics/ Set up email alerts for “Sources Sought” or “Presolicitation” RESPOND!!! 85

89. 86

90. 87

91. What do I do now??? At a minimum Register Free and sets up your business for opportunities Research the B2G Market www.fbo.gov Set up Alerts based on your NAICS codes Use our team to pursue the B2G Market 88

92. Get in the Game – Options Get in the Game - B2G Basics You know the B2G market is right for your business, but you need help getting started with the basics. We will do the work for you!!! Regularly $997 – Until Friday - $647 Get In The Game - B2G Workshop 15-17 October 2010 Hilton Cocoa Beach Oceanfront Regularly $2499 – Early Bird - $1999 89

93. Resources Business.gov http://www.business.gov/ The official business link to the U.S. Government. Central Contractor Registration (CCR) http://www.ccr.gov The primary registrant database for the U.S. Government, CCR collects, validates and disseminates data in support of acquisition missions. Department of Defense Office of Small Business Programs http://www.acq.osd.mil/sadbu/ This organization is committed to maximizing the Department of Defense (DoD) purchases through small businesses. The site includes the basics of doing business with and marketing to the DoD, as well as details about various small business programs. 90

94. Resources D&B D-U-N-S Number http://www.dnb.com/US/duns_update/ AD&B® D-U-N-S® Number is a unique nine-digit sequence used to identify and keep track of more than 100 million businesses worldwide. You must have a D-U-N-S Number to do business with the government. Federal Agency Procurement http://acquisition.gov/comp/procurement_forecasts/index.html A list of forecasts for agency procurement. North American Industry Classification System (NAICS) http://www.census.gov/eos/www/naics/ NAICS is the standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy. Procurement Technical Assistance Centers http://www.dla.mil/db/procurem.htm Free assistance for vendors planning to do business in the federal civilian and/or DoD marketplace. 91

95. Resources Office of Federal Procurement Policy http://www.whitehouse.gov/omb/procurement_default/ This office plays a central role in shaping the policies and practices federal agencies use to acquire the goods and services they need to carry out their missions. OPEN Forum http://www.OPENForum.com This site offers a wealth of business resources including videos, articles and expert blogs on growing your business; success stories and advice from business owners; and networking opportunities to publicize your business. Small Business Administration Office of Government Contracting and Business Development http://www.sba.gov/aboutsba/sbaprograms/gcbd/index.html SBA contracting experts can be an invaluable resource, whether you’re new to government contracting or are currently doing business with the government and need advice on a particular issue. Women Impacting Public Policy http://www.wipp.org/ A bipartisan public policy group that 92

96. Future Events 93

97. MEETING MANAGEMENT: The Art of Making Meetings Work Session 1: Thurs., Aug. 19, 2010 8:00 am - 11:00 am * Effective meeting basics * The Best & Worst of meetings * Holding productive meetings * Meeting preparation * Agendas Session 2: Thurs., Aug. 26, 2010 11:00 am-2:00pm * Setting the place * Leading a meeting * Process & Content * Process Tool: (DeBono'Thinking Hats - Rules of Work - Facilitation Skills) * How to control a meeting Location: Melbourne Regional Chamber, 1005 E. Strawbridge Avenue, Melbourne, FL Register Online: www.melbourneregionalchamber.com 94 Cost : Pre-paid & SCE Members: (to attend both sessions): 99.00 Non-Member Cost: $119.00 (Price includes materials/handouts and refreshments) Participate in the Live Webinar: http://dld.bz/artmtg Both Sessions for $69 ($49 for SCE members)

98. 95

100. 1 Business Table Top Display at the Entrepreneurs Summit

101. 30 day trial membership to Space Coast Entrepreneurs$100.00 ($211 Value) www.BestBusinessSummit.com

102. Provide your business card to get a copy of this presentationor info@jackquinnsolutions.comQuestions??? 97

103. Conclusion Provide your card for B2G Resources Beware of Businesses that try to offer easy solutions Highly competitive market with fantastic rewards Opportunity, not entitlement Work for and earn government business 98

104. Visit www.b2gsolutions.usfor more information and registration 99

105. 100