© 2009 Williams Mullen Construction Contracting Webinar

© 2009 Williams Mullen

Construction Contracting Construction Contracting WebinarWebinar


Contracting in Tough Contracting in Tough Economic TimesEconomic TimesThomas O. MasonThomas O. MasonMarch 11, 2009March 11, 2009


BackgroundBackground

» The early signs of economic The early signs of economic downturndownturn

» What can we do?What can we do?» Focus on the Government Focus on the Government

Customer Customer


The Government The Government Customer Customer

» LocalLocal» StateState» Federal (military and civilian)Federal (military and civilian)» Foreign Foreign


Types of Work Types of Work

» Military – Uniquely Military – Uniquely GovernmentalGovernmental

» CivilianCivilian» Commercial Commercial


Sources of Expenditures Sources of Expenditures » Federal Federal

› Pre-stimulus spendingPre-stimulus spending› Post – stimulus spendingPost – stimulus spending

» State/Local State/Local › Federal Block GrantsFederal Block Grants› Public –Private PartnershipsPublic –Private Partnerships

» Commercial Commercial » Inherently Governmental Inherently Governmental


Considerations Before Considerations Before Accepting Work Accepting Work

» Understanding the Government’s needUnderstanding the Government’s need» Methods of ProcurementMethods of Procurement» Matching Government needs with Matching Government needs with

private business plansprivate business plans» Understanding and selling your best Understanding and selling your best

product or service product or service » What distinguishes you from the What distinguishes you from the

competition! competition!


Developing a Strategy Developing a Strategy for Selling to the for Selling to the

Government Government » Multiple ways to sell your Multiple ways to sell your

specialty to the Government specialty to the Government » Focus on two thingsFocus on two things

› Company specialtyCompany specialty› Needs of the GovernmentNeeds of the Government


Methods of Procurement Methods of Procurement » Full and open competitionFull and open competition» Small Business set-asidesSmall Business set-asides» Multiple Award Contracts (Get Multiple Award Contracts (Get

preapproved.)preapproved.)» Unsolicited proposalsUnsolicited proposals» Subcontracting with larger primesSubcontracting with larger primes» Becoming a member of a team or a Becoming a member of a team or a

JV JV


Getting Pre-Approved Getting Pre-Approved » Selling to the Government involves Selling to the Government involves

seeking multiple opportunitiesseeking multiple opportunities» Pre-approval with GSA Schedule Pre-approval with GSA Schedule

Contracts Contracts › Is one method of gaining workIs one method of gaining work› Is inexpensiveIs inexpensive› May cut down on number of hard May cut down on number of hard

bid/responses to RFP/RFQ bid/responses to RFP/RFQ


GSA Schedule GSA Schedule

» What is it and how does it What is it and how does it work?work?

» How do you get on schedule?How do you get on schedule?› Select appropriate scheduleSelect appropriate schedule› Submit a proposalSubmit a proposal› Negotiate a contract Negotiate a contract


Pitfalls to AvoidPitfalls to Avoid

» Selling too lowSelling too low» No means to effectively change No means to effectively change

pricingpricing» Don’t know how to receive ordersDon’t know how to receive orders» I completed contract form and my I completed contract form and my

margins are unacceptablemargins are unacceptable» Don’t buy a schedule/Develop a Don’t buy a schedule/Develop a

marketing and sales tool marketing and sales tool


What Works What Works

» Do much of the work yourselfDo much of the work yourself» Negotiate specific termsNegotiate specific terms» Start with the end in mind Start with the end in mind


Specific Terms Specific Terms

» Commercial Price ListCommercial Price List» Minimum/Maximum Order ClauseMinimum/Maximum Order Clause» Basis of AwardBasis of Award» Country of OriginCountry of Origin» Industrial Funding FeeIndustrial Funding Fee» Economic Price Adjustment Economic Price Adjustment

Clauses Clauses


Specific Terms Specific Terms (Continued)(Continued)

» Government Assist VisitsGovernment Assist Visits» Company Ts and CsCompany Ts and Cs» Payment ClausePayment Clause» Changes ClauseChanges Clause» Number and use of Special Item Number and use of Special Item

Numbers (product/service Numbers (product/service categories) categories)


GSA Policies GSA Policies

» ““Get It Right”Get It Right”» Pay attention to “Shovel Pay attention to “Shovel

Ready”Ready”» Maintain and extend GSA Maintain and extend GSA

contract contract


Top 10 Things to Top 10 Things to Remember in Touch Remember in Touch

Economic Times Economic Times » 10. Have and manage to a 10. Have and manage to a

business plan!business plan!» 9. Sell commercial services and 9. Sell commercial services and

products to the Government!products to the Government!» 8. Market the Government in 8. Market the Government in

the same manner you market the same manner you market commercial customers.commercial customers.


Top 10Top 10

» 7. Diversify – let’s sell to different 7. Diversify – let’s sell to different market – commercial and multiple market – commercial and multiple levels of Government.levels of Government.

» 6. Have several methods (many 6. Have several methods (many portals) to gain Government Sales.portals) to gain Government Sales.

» 5. Don’t provide gifts, puff 5. Don’t provide gifts, puff capabilities or create great capabilities or create great expectations.expectations.


Top 10Top 10» 4. Understand who has Government 4. Understand who has Government

authority to engage in contracting and authority to engage in contracting and who has authority to pay for your who has authority to pay for your work.work.

» 3. Compliance is part of Quality – 3. Compliance is part of Quality – include the cost of compliance and include the cost of compliance and quality in GSA pricing.quality in GSA pricing.

» 2. Provide Best Value (Charge for Best 2. Provide Best Value (Charge for Best Value).Value).


Top 10Top 10

» 1. GET IT RIGHT – ONLY 1. GET IT RIGHT – ONLY PERFORM PROJECTS WHERE PERFORM PROJECTS WHERE YOU ARE MEETING AN YOU ARE MEETING AN IDENTIFIED GOVERNMENT IDENTIFIED GOVERNMENT NEED - if it is not shovel ready NEED - if it is not shovel ready ask some more questions. ask some more questions.


Thomas O. Mason, Esq.Thomas O. Mason, Esq.8270 Greensboro Drive, Suite 7008270 Greensboro Drive, Suite 700

McLean, VA 22102McLean, VA 22102703.760.5200703.760.5200

www.williamsmullen.comwww.williamsmullen.com


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