Jennifer Schaus & Associates presented to a South Korean delegation hosted by The George Mason University, PTAC Office. For more info about government contracting, please visit Jennifer Schaus at http://www.JenniferSchaus.com

1. US Government Procurement
OVERVIEW
October 7. 2014

2. AGENDA
October 7. 2014

3. Welcome!
환영합니다
October 7. 2014

4. AGENDA
Introduction
Presentation
Conclusions / Recommendations
Q & A
October 7. 2014

5. Introduction
Company Name
Product / Service
# Years In Business
Any Government Customers?
October 7. 2014

6. Introduction
Jennifer L. Schaus
20 Years Govt Contracting
Washington DC Based
Embassies / Foreign Clients
Contract Vehicles / Fed Gov Sales
October 7. 2014

7. Presentation
October 7. 2014

8. WHO?
The US Federal Government
October 7. 2014

9. The US Federal Government
World’s Largest Purchaser
Goods / Services
$500B (USD) Annually
Processes
Regulated by the FAR
October 7. 2014

10. The US Federal Government
The FAR
Rules of Acquisitions
How to Purchase
Scope, Policy, Procedures
(DFAR = Dept of Defense)
October 7. 2014

11. The US Federal Government
The FAR
Reference Website:
www.acquisition.gov/far
October 7. 2014

12. The US Federal Government
Multiple Executive Agencies
Separate Budgets, Agenda, Mission
Agency Head = Political Appointee
Program Managers
Contracting Officers = CO
October 7. 2014

13. The US Federal Government
15 Executive Level Departments
70 Independent Agencies
68 Boards & Commissions
Congress – House & Sentate
US Courts
October 7. 2014

14. The US Federal Government
Risk Adverse
Comfort with known entities
Slow to change
Budget conscious
October 7. 2014

15. The US Federal Government
Fair market price
Small business set-asides
Competition
Available public data
October 7. 2014

16. The US Federal Government
Contractors
Long Sales Cycle
Paperwork / Forms
Relationships Matter
Competitive
October 7. 2014

17. WHEN DO THEY BUY?
October 7. 2014

18. The Federal Fiscal Year
October 1 – September 30
Note: Q4 = Use it or lose it policy
High spikes in Q4 spending
October 7. 2014

19. Budget Process
Agencies make budget request
House & Senate vote / agree
President signs
Money allocated
Stalemate = CR, Continuing Resolution
October 7. 2014

20. WHAT DO THEY BUY?
October 7. 2014

21. What is Purchased?
Airplanes to Zippers
Consulting Services
Dental Services
IT Services
Security
Janitorial
October 7. 2014

22. WHERE DO THEY BUY?
October 7. 2014

23. Where Purchases Occur
* Washington, DC = Policy/Purchases
* Virginia, Maryland, Alabama,
California, Texas, New York
* Worldwide
October 7. 2014

24. HOW DO THEY BUY?
October 7. 2014

25. How Goods/Services Procured
Note: The FAR = Rules
1 - Conduct Market Research
Internet
Trade Journals
Past Purchases
October 7. 2014

26. How Goods/Services Procured
Note: The FAR = Rules
1 - Market Research - FAR Part 10
* Sources exist?
* Meet agency requirements?
* Commercially available?
October 7. 2014

27. How Goods/Services Procured
2 – Requirements - FAR Part 11
Describe agency needs
Promote full & open competition
October 7. 2014

28. How Goods/Services Procured
3 – Acquisition of Items – FAR Part 12
* Procedures for Solicitation,
Evaluation, Award
* Contract Type
* Past Performance
* Price Reasonableness
October 7. 2014

29. How Goods/Services Procured
“Sources Sought”
Government is surveying the
marketplace for commerciality
October 7. 2014

30. How Goods/Services Procured
RFI = Request for Information
* Government request more detailed
information from vendors
* Not price, mostly capabilities specific
to agency needs
October 7. 2014

31. How Goods/Services Procured
RFP = Request For Proposal
* “Big Money”
* $25k + www.FBO.gov
* Very competitive
October 7. 2014

32. How Goods/Services Procured
RFP = Request For Proposal
* Solicitation will include evaluation
factors = SECTION M
ie. Price, Past Performance, etc.
* How your proposal is weighted
October 7. 2014

33. How Goods/Services Procured
Current Environment
LPTA vs. Best Value
Lowest Price Technically Acceptable
October 7. 2014

34. How Goods/Services Procured
NOTE: LPTA does not always include
Past Performance as evaluation criteria
October 7. 2014

35. How Goods/Services Procured
Types of Contracts
October 7. 2014

36. How Goods/Services Procured
Common Types of Contracts
IDIQ – Indefinite Delivery/Quantity
GWAC – Government Wide Acquisition
Sole Source - Unique
BPA – Blanket Purchase Agreement
October 7. 2014

37. How Goods/Services Procured
IDIQ & GWAC Contracts
October 7. 2014

38. IDIQ & GWAC
* Typically a short list of vendors
* Pre-qualified
* Price limits
* Compete to Compete
* No guarantee
* Buyer has money allocated
October 7. 2014

39. IDIQ / GWAC Example:
GSA & VA Schedules
5 Year Contract / 3 Renewals = 20 Yrs
Lowest Price
MAS = Multiple Award Schedule
Sales Quota Requirement
October 7. 2014

40. IDIQ / GWAC Example:
GSA & VA Schedules
Amazon / EBay System
Keep out competition
Set-asides within for small business
Used by Fed, State, Local, Intl
Approx 10% of Fed Purchases
October 7. 2014

41. IDIQ / GWAC Example:
GSA & VA Schedules
Dedicated RFP notifications
Less than $150k = direct award
Easy to use
Eliminates paperwork for government
October 7. 2014

42. IDIQ / GWAC Example:
GSA & VA Schedules =
MARKETING TOOL ONLY!
NOT REQUIRED!
October 7. 2014

43. IDIQ / GWAC Example:
GSA & VA Schedules
20k Vendors
39 Schedules
Gives buyers a method to get to YOU!
October 7. 2014

44. How Goods/Services Procured
Sole Source Contracts
October 7. 2014

45. Sole Source Contracts
Large or Small Business
Unique product / service
Specific brand name
Fills an urgent need
Justification Required!
October 7. 2014

46. How Goods/Services Procured
Blanket Purchase Agreements
October 7. 2014

47. BPA – Blanket Purchase Agreements
Money is allocated
Short list of vendors
Usually for product
Fulfills requirement but unspecified
quantity
ie. medical supplies, auto parts
October 7. 2014

48. How Goods/Services Procured
Dollar Amounts Broken Down
October 7. 2014

49. How Goods/Services Procured
$3,000 and < Contracts
“Under the mirco-threshold”
Government P-Card (Purchase)
Credit Card
Direct Purchase
Small or Large Business
October 7. 2014

50. How Goods/Services Procured
$3,000 - $25,000
Government obtains 3 written offers
No RFP Required
October 7. 2014

51. How Goods/Services Procured
$3k-$150k Simplified Acquisition- FAR Part 13
Reserved for small business
If no small business, then unrestricted
Growing in popularity/usage
October 7. 2014

52. Pricing & Bids
October 7. 2014

53. Pricing & Bids
Time & Materials
Cost Plus
Firm Fixed Price
October 7. 2014

54. Pricing & Bids
* Time & Materials – bid hours at
approved rates; profit built in.
* Cost Plus – reimbursed labor/materials;
incentive; profit % fixed.
* Firm Fixed Price – flat rate.
October 7. 2014

55. Conclusions / Recommendations
October 7. 2014

56. * Competitive Market
* Performance & Price Matter
* Relationships with government
* Relationships with partners
* Lead with your capabilities
October 7. 2014

57. * Make it easy for govt to purchase from
you & find you
* Solve a problem / fulfill a need
* Leverage public data
* Be specific & strategic!
October 7. 2014

58. Have a government Business Plan
Stay abreast of events, news, opps
Leverage associations
Estimate 12-24 months for sale
Estimate $150k + per yr investment
October 7. 2014

59. Thank You!
고맙습니다
Questions & Answers
Jennifer Schaus
Washington, DC
Government Contracts Consulting Services
+ 1 – 2 0 2 – 3 6 5 – 0 5 9 8
www.JenniferSchaus.com
October 7. 2014