Federal Contracting - 101 OSDBU 2013 Presentation-Sturdivant

Federal Contracting 101(The Art of the Process)

Moderated by:Dan F. Sturdivant, IIDHS, OSDBU

Policy StatementIt is the policy of the United States, as stated in the Small Business Act, that all small businesses have the maximum practicable opportunity to participate in providing goods and services to the government.Policy Statement

SBA Legislation To ensure that small businesses get their fair share, SBA:negotiates annual procurement goals with each federal agency; reviews each agencys results; andis responsible for ensuring that the statutory government-wide goals are met.

Government Wide Statutory Goals

Small business - 23 % of prime contractsSDB - 5 % of prime & subcontracts WOSB - 5 % of prime & subcontractsHUBZone - 3 % of prime SDVOSB - 3 % of prime & subcontracts

Getting Started Basic Questions

1. Which government agencies buy my products and services?2. How do I get in touch with them?3. How do I market them?

Getting Started Basic AnswersAnswer to Question #1 (who buys what I sell)

Information technology (Basically) every federal agency buys some form of IT!

When talking specifics (i.e.) Ship parts, plane parts or space vehicle parts - look at websites of your targeted market, such as DoD, DHS, NASA, NAVY, etc.

Getting Started Basic AnswersAnswer to Question #1 (who buys what I sell)

Review agency publications:Forecast of Procurement/Contracting OpportunitiesSubcontracting Directory (Listing of Primes) Listing of agencys components & the Small Business Specialists collocated at each component or buying activity.

Getting Started Basic AnswersAnswer to Question #2 Getting in Touch

Check out these websites:

https://www.fpds.gov/- Identify who buys your product or service (hint: know your NAICS code)http://www.fedbizopps.gov Register - get notices of government requirements for your NAICS code

Getting Started Basic AnswersAnswer to Question #2 Getting in Touch

More websites:

http://www.fedbid.com Register - Compete on-line for government requirements in your NAICS code

http://www.mbda.gov Register Phoenix Database to get free contract referrals.

Getting Started Basic AnswersAnswer to Question #2 Getting in TouchMore websites:

SAM (System for Award Management). As of May 2012, when users go to the CCR/FedReg, ORCA, or EPLS websites, you will be automatically redirected to the SAM website http://sam.gov.

http://web.sba.gov/subnet - SBAs Prime Contractors post subcontracting opportunities here.

Getting Started Basic AnswersAnswer to Question #3 How do I market them?

Remember, the government is decentralized. Most agencies consist of numerous buying activities. (Example: Justice has 9 components; Treasury has 10; DOT has 10; DHS has 22 organizational elements but 8 have procurement authority)

Learn what each targeted agencys components do and how they spend their money!


Participate in: Targeted Outreach ActivitiesLocal Conferences/Trade Shows

Focus on 2-3 agencies & allow 18-24 months for relationship building.


Federal Agency Matchmaking Sessions

Department of Homeland Security Vendor Outreach Sessions http://www.dhs.gov/openforbusiness, then click on Small Business Procurement Assistance

Treasury Vendor Outreach Sessions http://www.treas.gov/sba, click on Outreach Activities

Department of Justice Monthly Counseling Sessions http://www.usdoj.gov/jmd/osdbu/


U.S. Department of Agriculture Vendor Outreach Program http://www.usda.gov/osdbu/

U.S. Department of Labor http://www.dol.gov/osbp/regs/procurement.htm

U.S. Department of Health & Human Services http://www.hhs.gov/smallbusiness


Department of Veterans Affairs http://www.va.gov/osdbu/services/register.asp

U.S. Department of Housing and Urban Development http://www.hud.gov/offices/osdbu/index.cfm

Getting Started Basic Answers

Answer to Question #3 How do I market them? Develop a Marketing Plan/Strategy

Subcontracts Prime Contracts Teaming/Joint Ventures Mentor Protg Agreements Pre-existing Contract Vehicles

Business Performance Top Ten Federal Agencies for FY 2012Source: Small Business Administration Prime Contract Achievements FY 2010

Rank/AgencyFY12 Dollars1. Department of Defense$274,625,161,6172. Department of Energy$24,562,882,7653. Department of Health and Human Services$18,461,515,3534. Department of Veterans Affairs $17,335,860,7005. National Aeronautics and Space Administration$13,418,655,9176. Department of Homeland Security$12,700,335,3057. Department of Justice$5,847,014,5558. Department of Agriculture$5,332,720,2259. Department of Commerce$3,261,832,70810. Department of State$3,166,122,178

Percent of Small Business Prime Contracts FY 2012Source: Small Business Administration Prime Contract Achievements FY 2012

Rank/AgencyFY12 Percentage1. Department of Agriculture52.9%2. Department of State39.1%3. Department of Commerce36.8%4. Department of Veteran Affairs35.1%5. Department of Homeland Security31.0%6. Department of Justice29.7%7. Department of Health and Human Services22.4%8. Department of Defense20.4%9. National Aeronautics and Space Administration19.3%10. Department of Energy5.1%

Getting Started Key Sources of Assistance

SBA Locate your local SBA Officehttp://www.sba.gov/

PTAC Procurement Technical Assistance Centerhttp://www.aptac-us.org/new/

OSDBU Office of Small & Disadvantaged Business Utilization http://www.osdbu.gov

SCORE - Service Core of Retired Executives www.SCORE.orgSBDC Small Business Development Centerhttp://www.sba.gov/sbdc/

Basic InformationThere are two types of contracting opportunities:

Prime Contracting you hold the contract

Subcontracting a larger company holds the contract and you get to work on a piece of it

Basic Information (continued)After consideration of required sources (read FAR Part 8), the contracting officer has two choices:

1. Use a pre-existing contract vehicle (i.e. GWAC & Department-Wide Acquisition Contract - DWAC)

2. Use FedBizOpps for open market procedures www.fbo.gov

Basic Information (continued)Key Tip:

If what you provide is listed on a GSA FSS, then get on the schedule!

Why? because it is a faster method of buying

Research, find out what pre-existing vehicles are used by the agencies you have targeted and most importantly, let agencies know what contract vehicles you have available to them.

Basic Information (continued)$ amounts & methods of procurement you should know about:

Up to $3,001 Micro-purchase (credit card)

$3,001-$150,000 Simplified Acquisition Procedures (SAP)

Over $150,000 Formal Contracting Procedures

Over $650,000 Subcontracting

$1.5 Million - Subcontracting for Construction

Small Business Procurement Programs8(a) Program set-asideHUBZone Program set-asideSDVOSB Program set-asideWOSB and EDWOSB Program set-asideTraditional Small Business set-asideFull & Open competition toolsSDB evaluation factor-prime proposes SDB targetsSubcontractingMentor-Protg Program

Small Business Procurement Programs Currently, there is no way to limit the competition to:

SDB (Small Disadvantaged Businesses)VOSB (Veteran Owned Small Businesses)

Therefore, marketing is critical!

The Model Small Business FirmWorking in the federal marketplace understands:

Core competenciesMarketing and relationship buildingSchedules/Multiple award contractsOpen Market procurement (FEDBIZOPPS)Prime contractingSubcontracting

The Model Small Business FirmEquipped to do business with the Government:Accepts the government purchase card (Visa or Mastercard)Has good marketing materialsHas a niche (Whats yours?)Has resources (people, equipment)Is web savvyRegistered in Government pre-existing databases (FedBizOpps, SAM & Dynamic Small Business Search http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm)

In SummaryWhat Really Works...RelationshipsNetworkingMultiple Contracting VehiclesContinuous MarketingBeing PreparedGet InvolvedPast PerformanceShare InformationPatiencePersistence

Home work always comes before success in the dictionary & Small Business Procurement!

******The federal government spends billions annually on products & services ranging from paperclips to complex space vehicles

As a whole, the federal government is made up of agencies. Each agency is broken down into various components, either bureaus, field units or districts. These entities, in most cases are decentralized in their buying activities, each having its own mission, budget, contracting shop, and small business specialist.*The federal government spends billions annually on products & services ranging from paperclips to complex space vehicles

As a whole, the federal government is made up of agencies. Each agency is broken down into various components, either bureaus, field units or districts. These entities, in most cases are decentralized in their buying activities, each having its own mission, budget, contracting shop, and small business specialist.******************

Documents

Federal Contracting - 101 OSDBU 2013 Presentation-Sturdivant