Transcript The Matchmakers HPT MARK II: Small Business Development

The Matchmaker’s
Small Business Training
An approach to Government
and Prime Contractor
Subcontracting
The MATCHMAKERS HPT is a
Subcommittee of the DOD Northeast
Regional Council for Small Business
Advocacy and Education
Revised: October 2011
Small Business
Development Training
Today’s Agenda:
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Introduction
Why Sell to the Government
Module I
Key Qualifications
Module 2
Federal Acquisition Process
Module 3
Rules of the Road
Module 4
Small Business Goals
Module 5
The Government Solicitation
Module 6
Marketing to the Government
and
Prime Contractors
• Federal Contract Glossary
• Common Acronyms
Why Sell to the Government?
• The United States
Government is the largest
buyer of goods and services
in the world.
– Reliable customer
– Open competition
– Small Business Programs
• State and local governments
are a very large marketplace.
– May be less cumbersome than
Federal Regulations
– Regional preferences may exist
Government Subcontracting
Over $500 Billion Dollars
Govt
Contract
Prime Contractor
Over 300 Billion
Subcontractors
Sub Tier Contractors
Remaining approximately $160 billion is reported in simplified
acquisitions, P Cards, Inter Agency Purchases and Micro Purchasing
How Can Small Businesses
Participate?
• The Federal Government buys from small businesses
Almost $100 Billion each year is contracted to small
businesses
How can a small business compete?
– Congressional mandates to set aside contracts for small
business
– Federal Acquisition Regulations (FAR) level the playing
field
– Resources are dedicated to small business
How do I know I am ready to sell to the
Federal Government?
• Critical Success Factors
– Financially stable/adequately capitalized
– Demand for your product or service
– Adequate resources to devote to
Government contracting
– Pricing and past performance
Small Business Training
Module 1:
Key Qualifications for Small Business
Module 1: Key Qualifications for Small
Business
• How to Determine if
your Business is Small
– The Small Business
Administration (SBA) has
established size standards
based on your industry
– 37 categories based on
North American Industrial
Classification System
(NAICS) Codes
– Details can be found at
www.sba.gov/size
Module 1: Key Qualifications for Small
Business
• Government Agencies or Prime
Contractors will need to know who and
what you are
Have your answer ready:
– Clearly define your product or service
– Clearly define your capacity
– Know your small business category
Module 1: Key Qualifications for Small
Business
• Small Business Categories
– Small Business (SB)
• Small Disadvantaged Business
(SDB)* & 8(a)
• Woman-Owned Small Business
(WOSB)
• Historically Underutilized Business
Zone (HUBZone)
• Veteran-Owned Small Business
(VOSB)
• Service-Disabled Veteran-Owned
Small Business (SDVOSB)
* The SBA suspended SDB Certification 09/23/08
Module 1: Key Qualifications for Small Business
• The Small Business must be 51% owned and
operated by the individual(s) who qualify for
any categories.
For Example:
– a "woman-owned business" is a business that is at least
51% owned by a woman or women who also control
and operate it. "Control" means exercising the power to
make policy decisions. "Operate" means being actively
involved in the day-to-day management.
Module 1: Key Qualifications for Small
Business
• SBA Certifications
– Confirmation of certification by the SBA is
required by prime contractors and federal
agencies to allow them to receive credit for
purchases made to 8(a) and HUBZone firms.
– All other small business categories may selfcertify.
• The certification process
– Contact your state PTAC or visit www.sba.gov
for more information on how to apply for
certification.
* The SBA suspended SDB Certification 09/23/08
Module 1: Key Qualifications for Small
Business
Step 1:
• Register on Central Contractor
Registration (CCR)
• www.ccr.gov
• Mandatory for all current & potential federal
vendors
• Creates a Commercial and Government Entity
(CAGE) Code that identifies your business
within the federal purchasing/ payment system
Module 1: Key Qualifications for Small
Business
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To register for CCR, you will need:
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D&B DUNS Number: 1-800-333-0505
SBA Certification
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For 8(a) Status: www.sba.gov/sdb
For HUBZone Status
https://eweb1.sba.gov/hubzone/internet/
All other SB categories can self-certify
To renew annually by accessing your information with your
DUNS # and CAGE Code and utilizing your Personal User
Account ID and Password
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User Password expires and requires revision every 60 days
Module 1: Key Qualifications for
Small Business
SBA Dynamic Small Business Search
• Add-on to CCR
registration
• Only for small
businesses
• Provides more
opportunity for
promotion
• Easy for agencies
and primes to
search
• You can include
narrative and
keywords
• Free advertising!
Module 1: Key Qualifications for Small
Business
Step 2:
• Register at On-line Representations and Certifications Application
(ORCA)
– https://orca.bpn.gov/
– Creates a single place for your small business representation &
certification info
– Eliminates entering data with each bid/proposal (update annually)
• Examples: Debarred? Woman Owned? TIN? Affirmative
Action?
Module 1: Key Qualifications for Small
Business
Step 3:
• Get Informed
– Understand the Federal Government
contracting process
– Find opportunities
– Learn the rules
– Learn how to prepare a bid
– Learn how to perform on contracts
– Learn how to build on success
Module 1: Key Qualifications for Small
Business
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There are several sources of
information and assistance:
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The PTAC office in your state or region
The SBA – Small Business Development
Centers
Small Business Liaison Officers (SBLO) at
prime contractors
Small Business Specialists at Federal Agencies
Module 1: Key Qualifications for Small
Business
Step 4:
• Develop a Marketing Plan
– Prime Contractor
– Subcontractor
– Both?
• Does the Federal Government buy my
product or service?
• Do prime contractors buy my product or
service?
Only research will tell!
Module 1: Key Qualifications for Small
Business
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What you need before you pursue
government contracts/subcontracts
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Adequate capitalization
Drive, determination, & patience
Competitive advantage
Demand for products/services
Adequate Pricing and margins
Effective quality system
Current business plan
Bonding, insurance and security clearance (if
required)
Computer Literacy, Internet capacity
KNOW YOUR CUSTOMER!
Small Business Training
Module 2: The Federal Acquisition
Process
Module 2: The Federal Acquisition
Process
• Federal Acquisition Process differs
from commercial purchasing
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Highly regulated
Open and Fair Competition
Contract clauses are “take-it-or –leave-it”
Specifications are stringent
Government may cancel for cause or convenience
Mandated socio-economic programs
Penalties for noncompliance
Subject to Government audit
Module 2: The Federal Acquisition
Process
• What is the Federal
Process?
Pre-award
- Determination of Need
- Analysis of Requirement
- Source Selection
Solicitation & Award
- Solicitation
- Evaluation
- Negotiation
- Award
Post-award
- Performance of Work
- Payment & Accounting
- Modification
- Closeout
- Termination
Module 2: The Federal Acquisition
Process
• Types of government solicitations
– Simplified Acquisitions
– Sealed Bidding
– Negotiated Procurements
Module 2: The Federal Acquisition
Process
• Simplified Acquisitions
– Account for 90% of purchase
transactions
– Purchases less than $150 K
– Commercial items less than $6.5 million
– Reserved for small business if purchase
is above $3,000
– Micro purchases less than $3,000
• 85% of Government purchasing actions
Module 2: The Federal Acquisition Process
• Sealed Bidding
– A rigid procurement process
– Not open to negotiation
– For non-commercial supplies or services
greater than $150K
– Clear and detailed specifications
– Awarded on price factors
• But also to responsive/responsible
bidders only
Module 2: The Federal Acquisition Process
• Negotiated Procurements
– Most flexible but most complicated procurement
method
– Many forms
– 80% of contracts exceeding $150K
– Requests for Proposal (RFPs)
– Evaluation criteria cited in solicitation
– Contracting Officer (CO) may negotiate
Module 2: The Federal Acquisition Process
• Electronic Procurement Opportunities
Examples:
– Federal Business Opportunities (FBO) is the
electronic, government-wide portal for federal
procurement opportunities that exceed $25,000
– http://www.fbo.gov
• DLA Enterprise Support
– RFQ, RFP, and award postings from the
Defense Supply Centers
– http://www.dla.mil/dss/default.asp
Module 2: The Federal Acquisition
Process
• Getting Paid
– Prompt Payment Act (FAR Subpart 32.9)
– Government invoice payment is the 30th
day after the designated billing office
receives a proper invoice from the
contractor or receipt of goods or services
–whichever is later (exceptions FAR
32.904)
– Electronic funds Transfer (EFT)
Module 2: The Federal Acquisition Process
• Purchase Card (P-Card) program
– Purchases of individual items under $3,000 or
multiple items with an aggregate under $3,000
($2,000 construction) are considered micropurchases
– Micro-purchases do not require competitive
bids or quotes, and agencies can simply pay
using a Government Purchase Card (credit
card), without the involvement of a
procurement officer as long as the price is
deemed fair and reasonable
Module 2: The Federal Acquisition
Process
• GSA Schedules Program
– Method of simplified acquisition – helps federal
buyers purchase faster, easier, at lowest prices
– GSA establishes government-wide contracts with
vendors to provide commercial supplies and services
– Generally 5 years with three 5 year option periods of
indefinite delivery & indefinite quantity (IDIQ)
– Not a guarantee of sales! Contractors must market
themselves
– www.gsa.gov/schedules
Small Business Training
MODULE 3: Rules of the Road
Module 3: Rules of the Road
Federal Contract Law
Other Laws that Affect Contracting/ Dealing
with Government
Federal Acquisition Regulations (FAR)
http://farsite.hill.af.mil
Agency Specific Regulations (DFARs, etc.)
http://acquisition.gov/comp/virtual_library/regs.htm
Your solicitation and contract
Module 3: Rules of the Road
• FAR (Brief Outline/ Highlights)
– Subchapter A – General (Parts 1-4)
• Part 2 Definitions
• Part 3 Ethics/ Conflicts of Interest
– Subchapter B – Competition (Parts 512)
• Part 6 Competition Requirements
• Part 8 Required Sources
• Part 9 Contractor Qualifications
Module 3: Rules of the Road
• Subchapter C - Contracting Methods and
Contract Types (Parts 13-17)
– Simplified acquisition, sealed bidding, contract by
negotiation, types of contracts, special contracting
methods
• Subchapter D - Socioeconomic Programs (and
other laws affecting contracts)
– Part 19 Small Business Program
– Labor laws, other laws, privacy, FOIA, Buy
America, foreign acquisition, other special cat.
programs
Module 3: Rules of the Road
• Subchapter E - General Contracting
Requirements (Parts 27-33)
– Patents, data & copyrights, bonding,
insurance, taxes, cost accounting
standards, contract cost principals &
procedures, contract financing, &
protests, disputes and appeals.
Module 3: Rules of the Road
• Subchapter F - Special Categories of
Contracting (Parts 34-41)
– Major system acquisition, R&D,
construction/arch./engineering, service contracts,
federal supply schedules, IT, & utilities
• Subchapter G - Contract Management (Parts
42-51) – How relationship is managed
– Admin.&audit, modifications, subcontracting, Govt.
property, QA, transportation, value engineering,
termination, extraordinary actions, & use of govt.
sources
Module 3: Rules of the Road
• Subchapter H – Clauses &
Forms
– Part 52 Solicitation Provisions
and Contract Clauses
– Part 53 Forms
Module 3: Rules of the Road
• Other areas of
interest
– Transfer of technology
with foreigners
– Security clearances
– Government ethics/
conflicts of interest
– Making claims against
the government
Module 3: Rules of the Road
• Requirements for government
contracting and subcontracting
– The flow down requirements and/or statement of
work in a prime contract may require the small
business subcontractor to make organizational
adjustments to reduce the risk of non-performance
– Examples: quality, accounting systems, security
Module 3: Rules of the Road
• Do I need a lawyer/other
professional to
understand all of this
stuff?
It depends • Scale/ complexity of the
deal
• The scope of what you are
putting at risk
• Novelty of the deal
Module 3: Rules of the Road
• Free assistance vs. paid
assistance
– You have free help out there, but it can
realistically take you only so far.
– If successful, you need to purchase talent,
either in-house or consultant.
– Be an educated consumer.
Small Business Training
MODULE 4: Small Business Goals
Module 4: Small Business Goals
• Public Laws and their impact on small
business
– A series of Public Laws govern the small business
contracting goals of Federal agencies as well as
the sub-contracting goals of prime contractors
– Commonly referred to as “set-aside programs”
and “subcontracting plans”
– Reality: Goals are treated like requirements and
are dependent on the availability of qualified small
business firms
Module 4: Small Business Goals
• Socioeconomic Goals that Affect
Competition (examples)
– Use small business (FAR Part 19)
– Pay prevailing wages (FAR Part 22.10)
– Provide employment opportunities for U.S. citizens
(FAR Part 25)
– Equal employment opportunity (FAR Part 22.8)
– Maintain a drug-free workplace (FAR Part 23.5)
– Provide preferences for veterans (FAR Part 22.13)
– Provide handicapped accessibility (FAR Part 22.14)
Module 4: Small Business Goals
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Government agency, prime contractor,
and small business relationships
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Large prime contractors with contracts > $650K
($1.5M for construction) are required to submit
small business subcontracting plans to the
Government
Prime contractors negotiate goals in those plans
and are monitored by review of bi-annual reports
(eSRS or SF294/SF295)
No contract exists between the subcontractor and
the buying agency - “privity of contract” exists
between agency & prime contractor
Module 4: Small Business Goals
• Preferences for small business
– Small businesses in certain categories can receive
some preference as a prime contractor, when the
small business capability meets the procurement
requirements identified in the solicitation
– Small businesses help Government agencies and
prime contractors meet their small business goals
Federal Government Small Business
Contracting Goals
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Small Business
Women Owned SB
HUBZone
SDB
8a
Service Disabled Vet
Veteran
23%
5%
3%
5%
5%
3%
Best Effort
25%
20%
S m a ll B u sin e ss
W om en O w ned
H U B Zone
SDB
8a
S e r vic e D isa b le d
15%
10%
5%
0%
S m a ll B u sin e ss
Module 4: Small Business Goals
• How does a small business market itself to
the agencies and prime contractors?
– All Government agencies and large business
primes have goals to be met, but…
– Your SB category should not be the primary focus
of your marketing pitch
– Your SB category may help get you in the door,
but…
– Your ability to perform is most important
Small Business Training
Module 5: The Government Solicitation
Why do proposals look different?
• The type of contract format used by
the CO will guide you in what is needed
and how it should be presented
• We will review the contract formats that
are usually used in the next few slides
Three Typical Contract Formats:
• 1. Uniform Contract Format (UCF)
SF 330
Standard Sections (Alphabetical)
• 2. Construction Contracts
SF 1442 or SF 18 (RFQs)
Divisions & Sections with Standardized
Numbering
• 3. Commercial Item Acquisition
Combined Synopsis & Solicitation
SF 1449 or letter head
5 Umbrella Clauses
1. UCF format---the 13 sections
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Section A- Contract Form (cover sheet) ex. SF 33
Section B- Products/Prices/Costs
Section C- Specifications/SOW
Section D- Packaging & Marking
Section E- Inspection & Acceptance
Section F- Deliveries or Performance Period
Section G- Contract Administration Data
Section H- Special Contract Requirements
Section I- Contract Clauses
Section J- List of Attachments (not always
included)
• Section K- Representations & Certifications
• Section L- Instructions for Submitting & other
• Section M- Evaluation Factors for Award
Uniform Contract Format
• Part I- THE SCHEDULE
A, B, C, D, E, F, G, H
• Part II – CONTRACT CLAUSES
I
• Part III – LIST OF DOCUMENT & ATTACHMENTS
J
• Part IV – REPRESENTATIONS & INSTRUCTIONS
K, L, M
2. Uniform Contract Format - Construction
- US Army Corps of Engineers
• • 00010. Solicitation/Contract Form (SF 1442) and
pricing schedule
• • 00100. Schedule/Instruction to Offerors
• • 00110 Submission Requirements and Instructions
• • 00120 Proposal Evaluation and Contract Award
• • 00600. Representations & Certifications
• • 00650 General Wage Decision
• • 00700. Contract Clauses
• • 00800. Special Contract Requirements
• • 01000. Division 1, General Requirements
• • 16999. Division 2-16, Technical Provisions
Comparison of UCF vs UCF/Construction
USACE Construction Format
• 00010. Solicitation/Contract
Form (SF 1442)
• (UCF Sections A & B)
• 00100. Schedule/Instruction
to Offerors
• (UCF Sections L & M)
• 00600C. Representations &
Certifications
• (UCF Section K)
• 00700. Contract Clauses
• (UCF Section I)
• 00800. Special Contract
Requirements
• (UCF Section H)
• 01000. Division 1, General
Requirements
• (UCF Section C)
• 16999. Division 2-16,
Technical Provisions
• (UCF Section C)
Uniform Contract Format
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A. Solicitation/Contract Form
B. Supplies or Services &
Prices/Costs
C. Description/Specs./Work
Statement
D. Packaging & Marking
E. Inspection & Acceptance
F. Deliveries or Performance
G. Contract Administration Data
H. Special Contract Requirements
I. Contract Clauses
J. List of Attachments
K. Representations, Certifications &
Other Statements
of Offeror
L. Instructions, Conditions & Notices
to Offeror
M. Evaluation Factors for Award
Statement of Work
• Statement of Work is found in Section C
• The government is looking for you to
demonstrate that you understand the problem
and issues
• Do not over-promise, back up what you are
saying with hard numbers
• Make sure your plan is specific, detailed and
the deliverables are described
Things to Remember-Section C
• Use the same terms in your proposal that the
solicitation uses
• Answer EXACTLY how you will address each
point/specification in the solicitation
• There are no extra points for creativity
• Don’t stray from what is requested—give them
what they want and only what they want
Evaluation Criteria
• Review the evaluation criteria before you
begin— Section M
• Know the relative weighing for scoring
purposes- Is Past Performance weighted
higher than Price? What about Technical?
• Determine what areas of proposal need more
emphasis
• Highlight in the summary the highest weighted
areas
Evaluation Factor Weight
Applicable Clauses
• Often particular to the solicitation–
Section I in UCF format
• Clauses Incorporated by reference—
CO will check off all applicable clauses
• Find and read these clauses at
http://www.arnet.far.gov/
• Also: http://farsite.hill.af.mil
3. Commercial Items
• SF 1449 or letter head
• 5 Umbrella Clauses:
FAR 52.212-1 Instructions to offerors
FAR 52.212-2 Evaluation Factors for award
FAR 52.212-3 Representations & Certifications
FAR 52.212-4 Contract Terms & Conditions*
FAR 52.212-5 Contract Terms and Conditions
Required to Implement Statutes or Executive Orders
(*note:* clauses not checked do not apply)
Commercial Item Proposal
• SF 1449
Use SF 1449 if required by agency
otherwise use cover letter on Company
stationery
• Follow FAR 52.212-1 Instructions
• Follow FAR 52.212.3 Reps & Certs
• Provide all copies and review before
submitting
• Submit on Time
• Understanding the format of a
solicitation will help you understand
what is required and give you a
roadmap as to how to respond.
Small Business Training
Module 6: Marketing to Federal Agencies
and Prime Contractors
Module 6: Marketing to Federal Agencies and
Prime Contractors
• Preparing to market to federal agencies
and prime contractors
– Obtain a D&B DUNS (Data Universal Numbering
System) number
– Register in CCR (Central Contractor Registration)
– Determine correct NAICS (North American
Industry Classification System) code(s)
Module 6: Marketing to Federal Agencies
and Prime Contractors
• Identifying potential customers
– Visit Fedbizopps at www.fbo.gov
– Visit subnet at
http://web.sba.gov/subnet/search/index.cfm
– Contact local PTAC or SBA
– Research Federal agency websites
– Research past awards
– Contact prime contractors for subcontracting
opportunities
– Attend outreach events
– Attend Matchmaker events
Module 6: Marketing to Federal Agencies
and Prime Contractors
• Small Business Research &
Development Programs
($$$)
– Small Business Innovative
Research (SBIR) programs
– Small Business Technology
Transfer (STTR) program
– Defense Advanced Research
Projects Agency (DARPA)
– Broad Area Announcements
(BAA’s)
– Other Federal agencies’ R&D
programs
Module 6: Marketing to Federal Agencies
and Prime Contractors
• GSA – General Services
Administration
– Expedited procurement system
developed by GSA and used by
many Federal agencies for the
procurement of goods and services
(State agencies may use for
Information Technology)
– Acquisition priority over full
solicitation when applicable
• For more information:
– GSA Boston at 617-565-8100
– www.gsa.gov/schedules
Module 6: Marketing to Federal Agencies and
Prime Contractors
• Is the Federal agency or prime contractor
really your customer?
– Do research to determine the following:
• Are your products/services being purchased by
Federal agencies or prime contractors?
• Are you able to compete profitably?
• Do you understand Government contracting
procedures?
• Is the pace of Government contracting compatible
with your business plan?
• Can a preference program benefit you?
Module 6: Marketing to Federal Agencies
and Prime Contractors
• Summary
– Identify your target agencies and contact
the Small Business Specialist
– Contact the SBA Procurement Center
Representative www.sba.gov/gc
– Contact your local PTAC
– Contact prime contractor SBLOs (Small
Business Liaison Officers)
– Attend Matchmaker and Outreach events
– Be persistent in your follow-ups
Federal Contract Glossary
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8a Business Development Program is an SBA business development program created to help small
disadvantaged businesses compete in the American economy and access the federal procurement market. See
http://www.sba.gov/8abd/ for further information.
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A-76 OMB Circular A-76 mandates that any time an agency can save more than 10% by outsourcing an eligible
activity to private industry, they must do so.
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Acquisition is the acquiring by contract with appropriated funds of supplies or services (including construction) by
and for the use of the Federal Government through purchase or lease, whether the supplies or services are
already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point
when Agency needs are established.
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Amendment is a change to a solicitation before contract award.
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Award is when the Contracting Officer has signed and distributed a contract to the contractor.
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Best Value represents the overall "best" solution which is achieved by the ordering activity selecting the lowest
overall price offered depending on the circumstances of the buy, e.g., the relative importance of cost or price,
special features, the amount of performance risk, urgency, trade-in considerations, warranty, maintenance
availability, etc.
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Best and Final Offer For negotiated procurements, a contractor's final offer following the conclusion of
discussions.
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CAGE Code. A contractor identification code that is assigned and maintained by the Defense Logistics Service
Center to identify commercial and Government activities.
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Central Contractor Registration (CCR). Method for the Government to have one master registration database of
all contractors wishing to contract with any agency of the Government. All businesses who want to sell their
products or services to the Government must be registered in this database. To register, go to www.ccr.gov.
Federal Contract Glossary
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Contracting Officer. (CO) An employee of the Government with the authority to enter into, administer, and/or
terminate contracts and bind the Government legally by signing a contractual instrument.
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Contractor Team Arrangement is an arrangement in which (a) two or more companies form a partnership or joint
venture to act as potential prime contractor; or (b) an agreement by a potential prime contractor with one or more
other companies to have them act as its subcontractors under a specified government contract or acquisition
program.
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Defense Conversion, Reinvestment, and Transition Act (1992) Initiated the Technology Reinvestment Project
(TRP) to establish cooperative, interagency efforts that address the technology development, deployment, and
education and training needs within both the commercial and defense communities. Also established the CivilMilitary Cooperative Action Program under which the government may use the skills, capabilities, and resources of
the armed forces to assist civilian efforts to meet the domestic needs of the United States.
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Department of Defense [DoD] EC/EDI Infrastructure is the system of interconnected communications and
computer systems supporting the exchange of EDI transactions between Government activities and their trading
partners. The use of a single infrastructure allows both Government activities and the Value Added Networks to
connect to the two Network Entry Points [NEPs] in an economical and efficient manner. The infrastructure also
supports the concept of a "single face to industry" which allows Government trading partners to register with the
Government once through the Central Contractor Registration [CCR] system and be able to do business with any
Government procurement activity.
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DoD Mentor-Protégé Program. Program established to provide incentives for (major) DoD prime contractors
(Mentors) to help small disadvantaged businesses (SDBs) qualified organizations that employ the severely
disabled, and Women Owned Small Business (Protégés) develop technical and business capabilities. The goal
of the program is to assist protégés to successfully compete for prime contract and subcontract awards.
Federal Contract Glossary
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DUNS Number. A D&B® D-U-N-S® Number is a unique nine-digit sequence recognized as the universal standard
for identifying and keeping track of over 70 million businesses worldwide. It enhances the credibility of your
business in the marketplace, enables potential customers, suppliers and lenders to easily identify and learn about
your company, and The U.S. government and many major corporations require their suppliers and contractors to
have a D-U-N-S Number. Go to http://www.dnb.com/US/duns_update/index.html to apply for a DUNS number.
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Electronic Commerce [EC] is the paperless exchange of business information, using Electronic Data Interchange
[EDI], electronic mail, electronic bulletin boards, electronic funds transfer and other similar technologies.
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Electronic Data Interchange [EDI], a major part of Electronic Commerce [EC], is the computer-to-computer
exchange of business data in a standardized format.
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Electronic Funds Transfer [EFT]. The electronic transfer of money between accounts at different banks.
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EDI is the computer-to-computer exchange of business data between trading partners using a standardized
format. A trading partner can be any business that is registered to conduct business with the federal government.
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EFT enables the exchange of payments and related information. EFT is the federal government’s preferred
method of accepting & making payments. EFT technology is also used for automated teller machines and to make
direct payroll deposits. EFT offers convenience, economy, and security. EFT vendor information is available at
http://pub.fss.gsa.gov/services/gsa-smartpay.
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Federal Acquisition Regulation [FAR] is a set of rules governing how the federal government buys goods and
services. You can search the FAR online at www.fbo.gov.
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Federal Acquisition Streamlining Act OF 1994 [FASA] [Public Law 103-355], signed by President Clinton on
October 13, 1994, was designed to simplify and streamline the Federal procurement process. It will significantly
change how the Government does business. The Act repeals or substantially modifies more than 255 provisions of
law to reduce paperwork burdens, facilitate the acquisition of commercial products, enhance the use of simplified
procedures for small purchases, transform the acquisition process to electronic commerce, and improve the
efficiency of the laws governing the procurement of goods and services.
Federal Contract Glossary
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Federal Supply Schedules (FSS). A series of schedules compiled by the General Services Administration (GSA),
of commonly-used supplies and services available to Government agencies at specified prices. The schedules,
known as GSA schedules, allow ordering offices to issue delivery orders directly to contractors listed on the GSA
schedule, receive direct shipments, make payment directly to contractors, and administer the orders.
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Freedom of Information Act (FOIA). An act, part of the Administrative Procedure Act passed in 1966, that
provides a mechanism for members of the public (including contractors) to gain access to Agency Records
maintained by the Government. See http://www.osec.doc.gov/omo/FOIA/FOIAWEBSITE.htm for more
information.
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FOB Destination. Free on board at destination, or where the seller or consignor delivers the supplies on the
seller's or consignor's conveyance to a specified delivery point. Unless the contract provides otherwise, the cost of
shipping and risk of loss are borne by the seller or consignor.
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FOB Origin. Free on board at the place of origin, or where the seller or consignor places the supplies on the
conveyance by which they are to be transported. Unless the contract provides otherwise, the cost of shipping and
the risk of loss are borne by the buyer or consignee.
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Full and Open Competition means that all responsible sources are permitted to compete.
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General Services Administration (GSA). An agency in the executive branch with the function of procuring
supplies and services (including construction) that are used in common by many agencies.
Federal Contract Glossary
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HUBZone Program stimulates economic development and creates jobs in urban and rural communities by
providing Federal contracting preferences to small businesses. These preferences go to small businesses that
obtain HUBZone (Historically Underutilized Business Zone) certification in part by employing staff who live in a
HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. [A
principal office can be different from a company headquarters, as explained in our section dedicated to Frequently
Asked Questions.] The program resulted from provisions contained in the Small Business Reauthorization Act of
1997. The HUBZone Empowerment Contracting Program is administered by a staff in Washington, D.C. in
cooperation with field staff located in SBA District Offices around the country. A full listing of those local District
Office staff members [HUBZone liaisons] is available on the HUBZone web page under "Contacts."
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Indefinite-Delivery Contract. A type of contract in which the time of delivery is unspecified in the original contract,
but established by the contracting officer during performance.
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Indefinite-Quantity Contract. A contract providing for an indefinite quantity, within stated maximum or minimum
limits, of specific supplies or services to be furnished during a fixed period, with deliveries to be scheduled by
placing orders with the contractor. Such contracts are commonly referred to as IDIQ contracts.
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ISO 9000. A set of five universal standards for a Quality Assurance system that is accepted around the world. Go
to http://www.iso.ch/iso/en/ISOOnline.frontpage for more information.
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Military Specifications (MIL-SPECS). Specifications and Standards unique to DoD, that are prepared, maintained
and controlled by the Secretary of Defense.
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Modification. Any written change in the terms of a contract.
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Bilateral - signed by both the contracting officer and the contractor
Unilateral - signed only by the contracting officer
Federal Contract Glossary
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Multiple-Award Schedules (MAS). A schedule in the Federal Supply Schedules system that contains prices for
comparable supplies or services being offered by more than one supplier.
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Negotiation. A method of contracting that uses competitive or non-competitive procedures that permits bargaining
with the offeror after receipt of proposal.
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Offer. A response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract.
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Procurement. All stages of the process of acquiring property or services, beginning with determination of need for
the property or services and ending with contract completion and closeout.
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Procurement Technical Assistance Center [PTAC] is an organization funded by the Defense Logistics Agency
in partnership with [typically] a state government of other economic development organization to help small
businesses compete for federal, state and local government contracts. PTACs exist in forty-six states.
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Purchase Cards are the federal government’s credit cards, typically Visa or MasterCard. In FY98, purchase cards
were used by the government to buy over $5 billion in goods and services. Therefore, it is important for vendors to
be able to accept purchase card payments. Purchase cards (formerly “IMPAC” cards) are now called “SmartPay”
cards. For more information about accepting purchase card payments, see: http://pub.fss.gsa.gov/services/gsasmartpay.
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Request for Proposal (RFP). The government's invitation to a prospective offeror to submit proposals based on
the terms and conditions set forth in the RFP. Responses to RFP's are offers called "proposals".
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Request for Quotations (RFQ). A solicitation document to communicate government requirements to prospective
contractors. As an RFQ is only a request for information, quotes Rhode Island Economic Development Corporation
submitted in response are NOT offers, and may not be accepted by the government to form a binding contract.
Used by some agencies to obtain price, delivery, or other information on sole source procurements.
Federal Contract Glossary
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Request for Information (RFI). A request for information used when the government does not presently intend to
award a contract, but needs to obtain price, delivery, other market information, or capabilities for planning
purposes.
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Revision is the offeror's opportunity to clarify and document understandings reached during negotiations.
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Set-Aside. To reserve an acquisition exclusively or partially for the participation of a special class of contractors.
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Small Business. For purposes of participation in the Procurement Technical Assistance Program is a business,
including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is
bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13
CFR 121.601.
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Small Disadvantaged Business is a small business concern that is at least 51 percent unconditionally owned by
one or more individuals who are both socially and economically disadvantaged, or a publicly owned business that
has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged
individuals and that has its management and daily business controlled by one or more such individuals. The term
also means a small business concern that is at least 51 percent unconditionally owned by an economically
disadvantaged Indian tribe or Native Hawaiian organization, or publicly owned business that has at least 51
percent of its stock unconditionally owned by one of these entities, that has its management and daily business
controlled by members of an economically disadvantaged Indian tribe or Native Hawaiian organization, and that
meets the requirements of 13 CRF 124. Must be certified by the SBA.
Federal Contract Glossary
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Sole Source. The only source known to be able to perform a contract, or the one source among others that, for
justifiable reason, is found to be most advantageous for the purpose of contract award. A sole source acquisition
means a contract for the purchase of supplies or services that is entered into, or proposed to be entered into, by an
agency after soliciting and negotiating with only one source
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Solicitation. A document sent to prospective contractors by a Government agency, requesting submission of
offers or of information.
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Specification. A description of the technical requirements for a material, product, or service that includes the
criteria for determining whether these requirements are met.
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Taxpayer Identification Number (TIN). The nine-digit number required by the IRS to be used by the offeror in
reporting income tax and other returns. The TIM may be a social security number or Employer Identification
Number.
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Value Added Network [VAN] is generally a commercial entity [similar to a long distance telephone company, or a
computer on-line service] that provides communications services, electronic store and forward mailboxing, and
other related services for EDI transactions.
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Woman-Owned Small Business for purposes of participation in the Procurement Technical Assistance Program
is a small business concern - (1) which is at least 51 percent owned by one or more women; or in the case of any
publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (2) whose
management and daily business operations are controlled by one or more women.
Common Acronyms
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ACO Administrative Contracting Officer
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DLAD Defense Logistics Agency Directive
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ADPE Automated Data Processing Equipment
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DLIS Defense Logistics Information Service
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AID Acquisition Identification Description
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DMA Defense Mapping Agency
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ALT Administrative Leadtime
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DNSC Defense National Stockpile Center
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BOA Basic Ordering Agreement
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DO Delivery Order
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BPA Blanket Purchase Agreement
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DOC Director of Contracting
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BSM Business Systems Modernization
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DoD Department of Defense
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CAGE Commercial and Government Entity
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DOL Department of Labor
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CBD Commerce Business Daily
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DPACS DLA Preaward Contracting System
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CCR Central Contractor Registrations
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DRMS Defense Reutilization and Marketing Service
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CFR Code of Federal Regulations
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DSCC Defense Supply Center Columbus
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COC Certificate of Competency
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DSCP Defense Supply Center Philadelphia
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COR Contracting Officer’s Representative
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DSCR Defense Supply Center Richmond
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COTR Contracting Officer’s Technical Representative
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DSS DLA Support Services
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DAC Defense Acquisition Circular
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EDI Electronic Data Interchange
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DAPS Document Automation and Printing Service
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FAC Federal Acquisition Circular
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DCMA Defense Contract Management Agency
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FACNET Federal Acquisition Computer Network
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DD Form Department of Defense Form
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FAR Federal Acquisition Regulation
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DDC Defense Distribution Center
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FOB Free on Board
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DESC Defense Energy Support Center
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FPI Federal Prison Industries
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D&F Determinations and Findings
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FSC Federal Stock Class
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DFARS Defense FAR Supplement
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FSS Federal Supply Schedule
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DLA Defense Logistics Agency
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GAO General Accounting Office
Common Acronyms
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GFM Government-furnished Material
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PCO Procuring Contracting Officer
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GFP Government-furnished Property
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PO Purchase Order
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GPE Government Point-of-Entry
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PR Purchase Request
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GSA General Services Administration
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QAR Quality Assurance Representative
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HCA Head of Contracting Activity
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QVP Quality Vendor Program
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HUBZone Historically Underutilized Business Zone
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RDD Required Delivery Date
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IDTC Indefinite Delivery Type Contract
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RFP Request for Proposal
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IFB Invitation for Bid
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RFQ Request for Quote
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IFSS International Federal Supply Schedule
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SAMMS Standard Automated Material Management
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IMPAC International Merchant Purchase Authorization
System
Card
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SAP Simplified Acquisition Procedures
ITMRA International Technology Management Reform
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SAT Simplified Acquisition Threshold
Act
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SBA Small Business Administration
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K or C Contract
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SCA Service Contract Act
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KO or CO Contracting Officer
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SDB Small Disadvantaged Business
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KR or CR Contractor
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SDVOSB Service-Disabled Veteran-Owned Small
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NAICS North American Industry Classification System
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NIB National Industries for the Blind
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SIC Code Standard Industrial Classification Code
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NISH National Industries for the Severely Handicapped
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SF Standard Form
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NIIS National Item Inventory Introductory Schedule
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SML Solicitation Mailing List
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NSN National Stock Number
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SOW Statement of Work
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NTE Not to Exceed
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T for C Termination for Contract (T4C)
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OF Optional Form
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T for D Termination for Default (T4D)
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TCO Terminating Contracting Officer
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U.S.C. United States Code
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Business
Important Information
The material presented in this training and the advice
given by the trainer are intended to give you things to
think about as you prepare to be a government
contractor. The materials are not intended to be a
substitute for the actual laws, regulations, procedures,
policy and directions governing your relationship and
conduct with the government or its contractors or
agents. Not only are things subject to constant revision,
they may also be subject to interpretation that only a
competent authority or professional can provide. Do not
rely on this presentation as an authority. Please read the
most current law, regulation, procedure, policy, direction
or contract language and if there is any question as to
what it means, seek clarification from a competent
authority in the government or seek the help of a
competent professional.
*Nothing in this presentation should be construed as a guarantee of a contract award.
This training was brought to you by:
The Department of Defense
Northeast Regional Council
for Small Business Education and Advocacy
http://www.dodneregional.org
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2011 Revision