Build Your Pipeline with Term Contracts

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    Build Your Pipeline With Government Term Contracts

    Presented By:

    Jennifer L. Schaus

    In Collaboration With:

    ONVIAMay 2, 2012

    http://www.onvia.com/http://jenniferschaus3.eventbrite.com/
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    AGENDA

    Welcome & Introductions

    Background

    Onvia

    Jennifer Schaus

    Term Contracts

    What are they?

    How is government using them?

    How does agency leadership affect them?

    How can you find more?

    Winning Bid Strategies

    Conclusions Q & A

    AGENDA

    Welcome & Introductions

    Background

    Onvia

    Jennifer Schaus

    Term Contracts

    What are they?

    How is government using them?

    How does agency leadership affect them?

    How can you find more?

    Winning Bid Strategies

    Conclusions Q & A

    http://www.onvia.com/http://jenniferschaus3.eventbrite.com/
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    BACKGROUND: ONVIA

    Leading provider of B2G intel/data

    RFP NotificationsFed, State, Local

    http://www.onvia.com/http://jenniferschaus3.eventbrite.com/
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    BACKGROUND: JENNIFER SCHAUSOver 15 years Federal procurement & sales experience;

    Offices in Washington, DC and Rome, Italy

    Contributed government purchasing expertise to:Wall Street Journal / Washington Post / WashingtonBusiness Journal / Government Product News

    NCMA (National Contract Management Assoc) /

    AMEXWIPP (Women Impacting Public Policy) /

    NDIAWID (Women In Defense) / Various foreignembassy delegations.

    http://www.onvia.com/http://jenniferschaus3.eventbrite.com/
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    BACKGROUND: JENNIFER SCHAUSDun & BradstreetFED GOV Sales

    GSA Schedule & FED GOV Sales / Business Development

    Jennifer Schaus & Associates* Washington, DCRome, Italy

    * Small, Mid, Large, Fortune 500 Clients

    * Product & ServicesDomestic & International Clients

    * GSA Schedules

    * B2G Sales / MarketingFED, STATE & LOCAL* Related Services: 8a, Proposal Writing, Lobbying, etc.

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    TERM CONTRACTS:What Are They? Definition

    A term contract is a contract in which a source orsources of supply areestablished for a specific period of time at a predetermined unit price.

    ------------------------------------------------------------------------

    Sources of Supply can include both products and services.

    Specific Period usually is no less than one year and no more than 10 years.

    Predetermined Unit Price are usually established and negotiated between the seller (vendor)and buyer (government).

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    TERM CONTRACTS:

    What Are They? Explanation

    Term Contracts tend to be multiple award (MAS);Multiple Vendors can be listed on the Term Contract;Many times, there is no guarantee of sales;

    Competition still exists.

    Creates a designated & vetted pool for the buyer to select from.

    Some have set date enrollment periods (typically State / Local)Others are open enrollment (ie. Federal GSA Schedule)

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    TERM CONTRACTS:What Are They? Examples

    Federal Government:

    GSA Schedule

    VA ScheduleArmy FIRST

    Navy NAV SEAPORTe

    FAA eFAST

    State & Local Government:

    CMASCalifornia Multiple Award Schedule

    TXMASTexas Multiple Award Schedule

    MHEC - Midwest Higher Education Consortium

    WSCAWestern States Contracting Alliance

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    TERM CONTRACTS:What Are They? Advantages

    Can be a competitive advantage (FOR VENDORS) to keep out similar firms whodo not have;

    Bidding opps designated for contract holders (EX: GSA E-Buy)

    Facilitates the buying process for the government;

    Paperwork has been completed on the front-end;

    Less risky and less work for the buyer/CO;

    Company is approved;

    Budget dollars are allocated for these purchases;Vendor has complied with established Ts & Cs in the contract upfront.

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    TERM CONTRACTS:How is government using term contracts?

    Government uses term contracts to simplify purchases;

    Vetting has been done upfront;

    Capabilities have been established & checked;

    Fair & Reasonable pricing has been negotiated & set;

    Facilitates purchasing process for the buyer.

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    TERM CONTRACTS:How does agency leadership affect term contracts?

    What affects agency leadership?

    Scandals

    Election YearPolitical ChangesOutside Events9/11 ; Financial Crisis ; etc.

    Creation of Agency

    (DHS) Department Of Homeland Security

    Dissolve Agency or Department

    Bureau of Ocean Energy Management, Regulation & Enforcement (BOEMRE), formerly MineralsManagement Service (MMS), was replaced by Bureau of Ocean Energy Management (BOEM) &Bureau of Safety & Environmental Enforcement (BSEE).

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    TERM CONTRACTSHow does agency leadership affect term contracts?

    Directives from agency leadership to utilize (or not) specific contracts.

    Agency Specific Contracts:

    Army FIRST

    Navy NAV SEAPORTe

    DHS Eagle

    Vendor-Ready Contracts for Disaster Recovery & ARRA ProgramsGSA Schedule sub-sets

    Terms & Conditions will vary that vendor accepts

    TERM CONTRACTS:How does agency leadership affect term contracts?

    Directives from agency leadership to utilize (or not) specific contracts.

    Agency Specific Contracts:

    Army FIRST

    Navy NAV SEAPORTe

    DHS Eagle

    Vendor-Ready Contracts for Disaster Recovery & ARRA ProgramsGSA Schedule sub-sets

    Terms & Conditions will vary that vendor accepts

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    TERM CONTRACTS:How can you find more?

    More = Not always better

    Are term contracts right for you?

    How does your customer buy?

    What are your margins with term contracts?

    Do you have wiggle room for bidding?

    What are repercussions after accepting term contracts?

    If term contracts are a good fit for your B2G strategy consider:

    Obtain one that is used the most for your offering;

    Obtain one that can be replicated/grandfathered in (GSA)

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    TERM CONTRACTS:How can you find more?

    More term contracts =

    More bidding opportunities with a smaller playing field of competitors

    More bidding opportunities =More chances to win and grow business

    More chances to win and grow business =

    More revenue for your company

    CONSIDERATION:Profit MarginsNegotiate rates that you can live with- and survive / thrive on!

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    TERM CONTRACTS:Winning Bid Strategies - NEGOTIATING Term Contracts

    Negotiate upfront rates that leave you room to bid lower

    (if this is part of the terms & conditions)

    Negotiate rates that allow you to still be profitable

    (Otherwise this market is not for you & you will be buying contracts)

    Negotiate rates that are competitive with your industry leaders

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    TERM CONTRACTS:Winning Bid Strategies POST Term Contracts

    Ensure you understand and comply with all of the Terms / Conditions;

    This is important both pre and post award.

    Build relationships with your buyers for repeat business;

    Incumbents who perform well and play well with others tend to continue winning.

    Build relationships with your Contract Administrators

    They can make your B2G business miserable or pleasant.

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    TERM CONTRACTS:

    Winning Bid Strategies POST Term Contracts

    Ensure you are receiving the e-bidding opportunities;

    Many companies go through the tedious process & forget this step!

    Understand your limitations on set price and options for bid price.

    Ts and Cs will vary by contract.

    Stay on top of the renewal to ensure no lapse or non-compliance;

    Renewals tend to be easier than starting from scratch.

    If you are overwhelmed, consider an outside expert to manage the process &

    Reporting requirements.

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    THANK YOU !

    Ms. Jennifer L. Schaus

    + 12 0 23 6 50 5 9 8

    [email protected]

    * GSA Schedules

    * Contact Maintenance / Management

    * B2G Sales / Marketing / Lobbying

    * Proposal Writing

    * 8a Certification

    * Social Media Services (B2G and B2B)

    * B2G NetworkingMonthly: Wash, DC

    mailto:[email protected]://www.onvia.com/http://jenniferschaus3.eventbrite.com/mailto:[email protected]