This document provides an overview of procurement in the federal government. It defines procurement as the process of obtaining supplies, especially military supplies. It explains that each federal agency and group within agencies may have different processes for identifying funding opportunities. The starting point is understanding how the government spends on science, technology, research, testing, commercialization, and other areas. It emphasizes the importance of understanding the requirement, budget, development level, and procurement instrument in order to participate in federal contracting opportunities.

1. Procurement 101 August 4, 2010 Allen JonesProcurement Specialist GSP Consulting Corp

2. What is “Procurement” pro·cure·ment Pronunciation: ˈkyu̇r-məntbr />Function: nounDate: 14th century The act or process of procuring; especially: the obtaining of military supplies by a government 2 08.04.2010 Procurement 101

3. Identifying the On-Ramp to Federal $s It is a process of discovery. Each agency may do it differently. Groups within an agency may do it differently. 3 08.04.2010 Procurement 101

4. The Starting Point To bring us all to the same start point, let’s define that point. Our takeoff point is not from the perspective of procurement in the traditional sense but understanding how the federal government spends it’s dollars on Science & Technology to include: R&D Testing Evaluation Commercialization Operations & Maintenance Purchase of Products and Services …so you can participate. 4 08.04.2010 Procurement 101

5. Need or Requirement Someone somewhere in the federal sector said, “I have a problem with X and I need it fixed.”Common identified and cataloged “fixes” or solutions (products and services)…to the Extraordinary Future 5 08.04.2010 Procurement 101 Meals Ready to Eat Sandbags for flood control Aircraft Bearings R&D to develop a new counter IED (Improvised Explosive Device) technology prosthetic RDT&E (Research Development Test & Evaluation) Information Technology Antibody Delivery Method

6. Why Worry About the Requirement? It is Easier to Push or Pull When You Know Where You’re Going Requirements have merit and interest to GSP clients dependent on the product or solution they provide. The task at GSP is to identify the groupwithin the federal sector with a requirement that can be met by procuring our clients products or services as the solution. 6 08.04.2010 Procurement 101

7. Sounds Simple! 7 08.04.2010 Procurement 101 Sounds Very Simple and Uncomplicated……Just Watch Fed Biz Ops atwww.fbo.gov There is more to it than that!Below are three questions that add levels of complexity to selling to the Federal government. Does the entity (agency or program) with the requirement have the dollars (budget) to procure? Does it have the right color of money to procure the solution at its current level of development? What is the procurement instrument under which the requiring group can purchase?

8. 1. Have the dollars (budget) to procure? The cycle to get ready for this budget begins much early in the 2nd quarter (January through March) of the previous fiscal year (2QFY09 for example for the FY10 spending)As the money moves through agencies to those that will actually contract and procure, specific amounts are placed against projects and programs. Since the budget cycle began over 12 or 18 months ago priorities may have changed and funding levels on specific projects and programs may be different from those budgeted earlier. Part of the service that GSP provides is identifying the budgets, the flow of money from those budgets as it moves through agencies, and identifying specific funded projects and programs that can benefit from the use of our client’s products and services to meet their requirements. 8 08.04.2010 Procurement 101 Nov Feb Jan Dec Oct $ $ $ Mar Requirements Cycle Requirements Cycle Requirements Cycle $ $ Apr Sept May Jun Jul Aug

9. 2. Current level of development? 9 08.04.2010 Procurement 101 Operations & Maintenance $78,634,289,000 $78,634,289,000 $185,701,135,000

10. 3. What is the procurement instrument? 10 08.04.2010 Procurement 101 SBIR Prime Vendor DODGARS Med/ Surg idiq Pharma Set aside Equip Sole Source STTR Full & Open DLA DAPA E-mall GSA GSA GSA GSA GSA GSA GSA GSA GSA GSA …

11. Expanded Reach 11 08.04.2010 Procurement 101

12. On-Ramp with GSP Identifying the On-Ramp to federal dollars and other non-diluted dollars Each group may do it differently Entities within a group may do it differently It’s a continuous process of discovery because things change! 12 08.04.2010 Procurement 101