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 Northeast Council
2009 Revision
Small Business
Development Training
Today’s Agenda:
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Introduction
Module I
Module 2
Module 3
Module 4
Module 5
Module 6
and
Why Sell to the Government
Key Qualifications
Federal Acquisition Process
Rules of the Road
Small Business Goals
The Government Solicitation
Marketing to the Government
Prime Contractors
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
$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 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 time 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 capabilities
– 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 SDB*, 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
•
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 SDB* and 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
•
User Password expires and requires revision every 60 days
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
•
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
•
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 $100 K
– Commercial items less than $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 $100K
– 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 $100K
– 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?
Probably not, but 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
•
Government agency, prime contractor,
and small business relationships
–
Large prime contractors with contracts > $550K
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
(SF294/SF295)
– No “privity of contract” exists between the
subcontractor and the buying agency
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
Module 5: The Government Solicitation
• Solicitation/Contract
elements
UCF = Uniform Contract Format
A. Solicitation/Contract Form
B. Prices/Costs
C. Specifications/Statement of
Work
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
L. Instructions to Offeror
M. Evaluation Factors for Award
Module 5: The Government Solicitation
• Successful Proposals
– Responsive, all elements of
the solicitation addressed and
followed
–
Responsible – demonstrates
capability
– Competitive pricing
– Organized and concise
Module 5: The Government Solicitation
• Evaluate your proposal
– Meets all elements of the solicitation?
– Supporting documentation is available?
– All certifications and required documents are
signed and included?
– Submitted in accordance with solicitation
instructions and evaluation criteria?
– Does your program plan meet the requirements
and is it executable?
Module 5: The Government Solicitation
• Resources for Small Business
– PTACs (http://www.aptac-us.org)
– Prime Contractors’ SBLOs
– Federal Agency Small Business Specialists
(http://www.osdbu.gov/)
– US Small Business Administration
(www.sba.gov)
– Northeast Regional Council
http://www.dodneregional.org/news.htm
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
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
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/news.htm
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2009 Revision