GETTING STARTED STEPS INTO THE FEDERAL MARKETPLACE. August 7, 2017 NORTH CAROLINA MILITARY BUSINESS CENTER
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1 NORTH CAROLINA MILITARY BUSINESS CENTER GETTING STARTED STEPS INTO THE FEDERAL MARKETPLACE PRESENTED BY: LaNell Grissom, Business Development Specialist August 7, 2017
2 Agenda Market overview How the government acquires goods and services Small business programs in federal contracpng GeQng started in the market OpportuniPes - samples QuesPons
3 Military Presence 3 rd highest acpve duty military presence in US 6 major installapons (5 DoD/1 DHS) 116 NaPonal Guard/40 Army Reserve facilipes 139,000 acpve, Guard and Reserve personnel 18,000 annual transipons
4 Military Impact Total annual military impact, over $48 billion* 12% of NC State GDP (second largest sector) Over 540,000 jobs statewide military impacted Military/civilian payroll: $19.2 billion** Veteran payments: $2.4 billion** Defense contracts: o Prime contracts (FY2015): $ 2.56 billion o Subcontracts: addiponal billions * The Economic Impact of the Military on North Carolina, NC Department of Commerce, 2013 ** North Carolina Military Footprint, NC Department of Commerce, 2008
5 Defense Business Total annual military impact: $48 billion (12% State GDP) Prime contracts, DoD in NC: $2.57 billion (80 CounPes): Dollar Value in Billions Prime contracts, federal in NC: $4.90 billion (94 CounPes)
6 Who is suited for this market? Not a good market for all firms Need high-speed internet access, computer savvy Best for firms in business at least 2 years not good market for (most) start-ups! Need a record of good performance CompePPve, technically & financially capable High compeppon no easy sales, not a lifesaver for struggling businesses, teaming olen cripcal
7 Agenda Market overview How the government acquires goods and services Small business programs in federal contracpng GeQng started in the market OpportuniPes - samples QuesPons
8 How the Government Acquires (goods and services) Who s Who and What s What in federal acquisipon o o o o Users (with requirements) Other players (PEOs, PMs, etc.) ContracPng Offices Federal acquisipon regulapons (and supplements)
9 How the Government Acquires (goods and services) PrioriPzed sources of supplies and services o Agency inventories o Other agency excess o Federal Prison Industries (FPI) o Ability One o Wholesale supply sources: GSA, DLA, etc. o Mandatory, then opponal federal supply schedules o Commercial sources, including: exispng IDIQ, MACC, MATOC, SATOC, sole-source, and finally, compeppve
10 How the Government Acquires (goods and services) Rules depend on color of money o Non-appropriated funds o Appropriated funds And dollar value of procurement (And acquisipon strategy assume compeppve)
11 Non-Appropriated Funds Spent by MWR (Army), MCCS (Marines) and others to support soldiers and sailors No need to register anywhere Rules and process are simple: o If <$5,000, buyer may solicit one source o When >$5,000, buyer should solicit 3 sources and may adverpse locally Firms should market directly to the buyers
12 Appropriated Funds Government seeks to give firms a fair chance to compete Government buys best value which may or may not be lowest price Rules are the Federal AcquisiPon RegulaPons (FAR) & agency supplements
13 Appropriated Funds Rules differ based on dollar value of acquisipon Thresholds are: o Purchases totaling up to $3,000 o Purchases totaling >$3,000-$25,000 o Purchases totaling >$25,000-$150,000 o Purchases totaling >$150,000
14 Appropriated Funds Purchases up to $3,000: o Buyer only has to solicit one source o Can make award as long as price is reasonable o Generally paid by credit card o Thousands of individuals on the bases in NC are making these purchases!
15 Appropriated Funds Purchases >$3,000 and up to $25,000: o Simplified acquisipons o Set-aside for Small Business (SB) o SB dealer/distributor may offer product of any size manufacturer o Handled by purchasing agents Assigned by commodity Seek 3 quotes from vendors they know and locate Award based on low price/delivery date
16 Appropriated Funds Purchases >$25,000 and up to $150,000: o Simplified acquisipons o Generally set aside for SB o Under SB set-aside, dealer/distributor must sell product of Small Business manufacturer o Best value may not be lowest price o SolicitaPons posted at (MatchForce) o Must be web-enabled to access this market!
17 Appropriated Funds Purchases > $150,000: o Subject to other socioeconomic programs o Past performance will be a factor o May require a technical proposal o More formal process must follow instrucpons in solicitapon!
18 Appropriated Funds Myriad of other acquisipon strategies & oppons o Mandatory sources of supply, Ability One, FPI o GSA o Sole source procurements o Indefinite delivery, quanpty contracts (IDIQ) o MulPple, single award task order contracts (MATOC, MACC, SATOC) o GWAC Know how your buyers (and primes) buy!
19 Agenda Market overview How the government acquires goods and services Small business programs in federal contracpng GeQng started in the market OpportuniPes - samples QuesPons
20 Socio-Economic Programs Federal Government has insptuted socio-economic programs through its acquisipons Firms that qualify: o May receive contracts on a sole source basis o May only have to compete with similar firms o May get a price preference o Help the Government agency meet its goals
21 Socio-Economic Programs The programs, federal government s goals: o Small Business - 23% of all contract value, with the following subsets: HUBZone Small Business 3% Service-Disabled Veteran-Owned Small Business 3% 8(a) Firms 2.5% Small Disadvantaged Business 3% Women-Owned Small Business 5%
22 Small Business Program Firm must be for-profit and small and standards: o Vary by North American Industry ClassificaPon System code o May be based on: # of employees, or Average annual receipts over the last 3 fiscal years o Include the parent and/or affiliate companies Eligible for small business set asides Firm may be SB for one product/service, large for others Size standards: hzp://
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24 HUBZone Program Areas are designated HUBZones based on low median income and/ or high unemployment Principal office of firm must be in a HUBZone & 35% of employees must reside in a HUBZone hzp://map.sba.gov/hubzone/maps/ Apply to SBA for cerpficapon Eligible for sole source, set-asides, price preference Government is not meepng the 3% goal!
25 HUBZone Program Areas are designated HUBZones based on low median income and/or high unemployment Principal office of firm must be in a HUBZone & 35% of employees must reside in a HUBZone hzp://map.sba.gov/hubzone/maps/ Apply to SBA for cerpficapon Eligible for sole source, set-asides, price preference Government is not meepng the 3% goal!
26 Service-Disabled Veteran-Owned Small Business Program Firm must be at least 51% owned and controlled by servicedisabled veteran(s) Owner(s) needs disability rapng lezer from VA Self-cerPficaPon, verify at Eligible for sole source contracts and set-asides Government is not currently meepng the 3% goal!
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28 8(a) and Small Disadvantaged Business (SDB) Programs Firm must be at least 51% owned & controlled by a socially and economically disadvantaged individual Socially includes all minority groups; others may juspfy disadvantaged status 8(a) requires SBA cerpficapon; SDB self-cerpfy 8(a) allows sole source contracts and set-asides SDB Program allows for price preference
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30 Women-Owned Small Business Program Firms at least 51% owned and controlled by women LegislaPon passed in 2000 required SBA to implement set-aside program Study conducted of markets where WOBs have been discriminated against Set-aside program now in effect for 47 NAICS codes (EDWOSB & WOSB); Not meepng the 5% goal!
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32 SubcontracPng Market Federal subcontracts = commercial contracts between two firms Large prime contractors have goals for awards of subcontracts: SB, HUBZone, SDVOSB, SDB, WOSBs May be the best market for you, inipally Teaming opportunipes with LBs as primes Access subcontract opportunipes via NCMBC events,
33 Agenda Market overview How the government acquires goods and services Small business programs in federal contracpng GeQng started in the market OpportuniPes - samples QuesPons
34 GeQng Engaged in the Market Credit card capacity: o Accept credit cards for purchases up to $3,000 o Market at trade shows, adverpse locally o Register on Beyond credit card capacity: o Follow GeQng Ready to Sell checklist (on o Purchases up to $25k, market directly to buyers o For purchases over $25,000, monitor MatchForce for opportunipes from market as appropriate
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36 Beyond Credit Cards: Get Started! Use checklist on Get in MatchForce.org! ID your product/service (FSC/PSC) ID your business (NAICS codes) Determine if your firm is a SB and qualifies for other socioeconomic programs Get a DUNS number, register in SAM (System for Award Management) Complete Online Reps & Certs (ORCA)
37 ID Your Product or Service Federal Supply Codes (FSC): o 1 st 2 digits are group, 2 nd 2 digits are class Product Service Codes (PSC): o 1 st digit is a lezer, followed by 3 digit number Websites for FSC / PSC lookup: o Links on o hzp://support.outreachsystems.com/resources/tables/ pscs/
38 ID Your NAICS Codes North American Industry ClassificaPon System (NAICS) Replaced SIC code system in 1997 ID all NAICS codes that may apply to product/service: o Wholesaler, dealer, distributor, manufacturer NAICS Lookup: o Link on o (hzp://
39 Is Your Firm a Small Business? Size standards vary by NAICS code Include your parent and/or affiliate companies May be: o # of employees, or o average annual receipts, last 3 fiscal years You may be a SB for one and large for others! Size standards lookup: (link on or hzp://
40 GeQng a DUNS Number DUNS = Data Universal Numbering System Obtain from Dun & Bradstreet ( ext. 3) Free for seeking government contracts Unique 9-character # for each locapon/address and legal division Mandatory for SAM registrapon Website: hzp://fedgov.dnb.com/webform, also link on
41 Register in SAM SAM = System for Award Management Mandatory before award: purchase order, contract Enter info for Dynamic SB Search o Capability statement, keywords, etc. Results in assignment of CAGE Code Allows electronic payment Website: or link on
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43 ORCA ORCA = Online RepresentaPons & CerPficaPons ApplicaPon Update at least once a year Replaces solicitapon-specific Reps & Certs Incorporated into SAM
44 Agenda Market overview How the government acquires goods and services Small business programs in federal contracpng Leveraging the market NCMBC services, tools GeQng started in the market OpportuniPes - samples QuesPons
45 Federal Government Primary Portal FedBizOpps:
46 NoPce Types Sources Sought
47 NoPce Types Pre-SolicitaPon NoPce, Example 1 Pre-SolicitaPon NoPce, Example 2
48 NoPce Types Combined Synopsis/SolicitaPon
49 NoPce Types Sole Source
50 NoPce Types SolicitaPon
51 NoPce Types ModificaPon/Amendment
52 NoPce Types Special NoPce
53 NoPce Types Award NoPce
54 What You Need To Do Become web-enabled to find contracts Learn the basic rules of contracpng Learn to describe your business and your products/services (NAICS, FSC, PSC codes) Develop markepng materials and capabilipes statements: in government speak Follow the checklist on Register:
55 Contact InformaPon - NCMBC ScoJ Dorney, ExecuPve Director , dorneys@ncmbc.us Lauren Bolgert, MatchForce Manager, ACT Manager , bolgertl@ncmbc.us LaNell Grissom, Business Development Specialist grissoml@ncmbc.us
56 Agenda Market overview How the government acquires goods and services Small business programs in federal contracpng GeQng started in the market OpportuniPes - samples QuesQons
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