Government Contracting 101 / Jul 11 1

Transcription

1 Government Contracting 101 / 201 1

2 WELCOME Please silence all cell phones and pagers. 2

3 We are: Palm Beach State College South Florida PTAC Florida SBDC Network Our funding comes from: SBA (for SBDC) DOD (for PTAC) PBC Board of Commissioners 3

4 Florida SBDC Providing Services Year Round: Monday Friday 8:30 AM 5:00 PM With evening classes In Southeast Florida South of Sebastian to Key West: Broward, Palm Beach, Miami-Dade, Monroe, Martin, St. Lucie, Indian River & Okeechobee Counties 4 4

5 FSBDC COUNSELING AND TRAINING TOPICS Accounting Procurement Business Planning Quality Management Buy-Sell Sales Finance Start-Up Franchises Taxes Human Resources Technology Internet Trade Management Values, Ethics Marketing Web Sites Business Analysts/Trainers Referral Network 5 5

6 Specialized Programs Within the FSBDC PTAC SO.. exactly what is PTAC? It stands for Procurement Technical Assistance Center. There are currently 9 in the state. Our mission is to educate businesses in government policy and to counsel and train small businesses on how to find and win Government contracts. Our goal is to generate sales and jobs for Florida companies. 6

7 PTAC Counseling Services How to prepare a Bid/Proposal Minority Certification programs Marketing to the Government Identification of subcontracting opportunities How to locate procurement opportunity for local, state, and federal contracts Assistance with government website navigation SBIR/STTR Program assistance. 7

8 Contact Us: PTAC website: Seminar website: Carole Hart - Palm Beach County hartc@palmbeachstate.edu Phone: Jackie Rule - Broward & Miami-Dade rulej@palmbeachstate.edu Phone:

9 OBJECTIVES Learn the role of small business in Government contracting. Understand liabilities/assets involved with being a Government supplier. See how to use the internet to find bid opportunities, resources, research, and registration processes. Know how to decipher the alphabet soup of Government contracting. 9

10 Getting Started Ask yourself these questions: Are you prepared to go through the layers of red tape peppered with government laws and regulations? Have you been in business for 2 years so that, if eligible, you can apply for minority certification [8(a)] status? (You can do federal business without being certified.) Are you an avid reader? Are you prepared to possibly read and respond to sometimes pages of proposal documentation? 10

11 Target Your Market Government Entity Choices: Federal Government Cities, counties, state Approach Choices: Be a Prime Contractor Be a Sub Contractor (i.e., market to Primes like Lockheed Martin, Harris, etc.) See Small Business Liaison Officers (SBLO) in both Companies and Agencies. 11

12 Register Dun & Bradstreet (D&B): Obtain a free DUNS Number by calling (Push # 3) or go to Central Contractor Registration (CCR): Federal Business Opportunities: Florida: County Registration (67 local preferences!) See websites for state, county, city, school board, etc. 12

13 Register, cont. Once registered in CCR, your next advanced registration step is to complete your company profile in the SBA s Dynamic Small Business Search Database. From the Registration Complete page in your CCR profile, select the SBA logo labeled Register or Update your SBA Profile and follow the instructions. Input Key Words, a Capabilities Narrative, and References (your happy customer. list.) 13

14 Register, cont. Why bother with this DSBS profile? The Dynamic Small Business Search Database is searched by federal, state, and local government purchasing officers, as well as by commercial firms, to locate viable small businesses for immediate (no bid)order placement. The database search engine can be accessed at: This site is a window into your competitors status vis a vis CCR status. 14

15 Register with Online Representations and Certifications Application (ORCA) ORCA is a federal e-government system replacing the paper based Representations and Certifications process (required in a solicitation response). Data is entered one time only and then can be included by reference in future federal responses. You must have an active account in CCR to complete this portion of the federal T s & C s. See: 15

16 Should you sell to the Federal Government? Advantages Disadvantages 16

17 Federal Contracting Advantages 2500 buying offices throughout the US Every type of supply & service purchased The Fed offers full & open competition Checks are timely & issued electronically. 17

18 Federal Contracting Advantages, cont. Federal programs often lead to business with other agencies and companies Regulations protect the contracting process The Government has preference programs to encourage small business participation State and local entities will have greater confidence in selecting you if you have succeeded at federal contracting. 18

19 Federal Contracting Disadvantages LOTS of paper!!!! Numerous forms to process Purchase order execution can be lengthy Connecting with the agency internal customer can be frustrating. 19

20 Federal Contracting Disadvantages, cont. Federal procurement paperwork is clearly another language Requirements and specifications tend to be more stringent than commercial procurement Your company personnel may be unfamiliar with federal contracting regulations. 20

21 Risk/Liability Assessment Have you done your strategic planning, considering: Man (the human capital to succeed) Machine (equipment essential to succeed) Money (financial strength to succeed) Knowledge base regarding laws & regulations necessary for successful contract execution Performance and/or Bid Bond (where applicable) Other contract obligations that may interfere? 21

22 Finding Your Place in Government Contracting Conduct Due Diligence (homework and research): Which agencies buy what I sell? What value can I add to the agency s mission? Is there a small business or supplier diversity program at your target agency? What are the purchasing processes for that agency? How often do they buy and who does the buying? Who are the decision makers in the agency? 22

23 Making Contact Register as a vendor with each agency you have identified (Get on their internal Approved Vendor list) Find out about qualifications and/or requirements to be certified by them Find out who the POC s or Buyers are for your product and/or service. 23

24 Making Contact, cont. What is the notification process for upcoming opportunities? Agency web site Vendor mailing list notification Advertisements in local newspapers Cable advertising. 24

25 Research/Contact Info Routinely monitor federal, state and local agency websites and procurement databases There are (fee based) notification services to help you monitor these sites Contact procurement offices and ask for information related to their procurement practices Get forecasts and/or budgets for their anticipated purchases. 25

26 Personal Visits and Contacts Make Appointments Attend Conferences & Expos Network Attend Pre-Bid Meetings 26

27 Marketing Ideas Send a letter to a perspective customer Follow up with a phone call and a request for a meeting Meet with the customer and send a follow up letter Bid on a proposal; make it a great attempt If you win a bid, ensure that you fulfill it to the letter so that you will be welcome to participate again! 27

28 Finding Bid Opportunities Network links to procurement info: Federal business opportunities General Services Administration (GSA) State of Florida - for state bid opportunities _menu 28

29 Federal Contacts/Links Federal government (Federal bids greater than $25,000) (general information regarding federal procurement) (procurement gateway)

30 State Contacts/Links State of Florida ** General information, bid opportunity, E-quote, etc.: Application / registration: **There is a 1% fee assessment with every P.O. awarded by the state 30

31 Local Contacts/Links City of Fort Lauderdale City of Boca Raton City of Miami-Dade Broward County Government Palm Beach County Monroe County To locate other municipal sites, see or other search engines. 31

32 Various Federal Preference Programs Small Disadvantaged Businesses (SDB) Woman Owned Businesses Veteran owned Businesses Service Disabled (SDVOSB) HUBZone Businesses 32

33 The 8(a) (Minority) Program A business development and certification program run by the SBA to assist small minority businesses in competing in the American economy. Basic Requirements for an applicant business are found at: 8a-business-development-program-regulationsfact-sheet Assessment tool: Is 8(a) Right For You? at: 33

34 Woman Owned Business A Woman Owned Business (WOB) is a small business concern that is at least 51% owned and operated by one or more women. Daily operations must be overseen and managed by this represented ownership. A woman must be the highest titled and compensated person. Additionally, a WOSB or a EDWOSB must be owned by a US citizen. 34

35 The 8(m) Program It is a program designed to increase Federal contracting opportunities within the American economy for woman owned small businesses (WOSB) or economically disadvantaged woman owned small businesses (EDWOSB). The SBA s new 8(m) Program is named for its section in the Small Business Act. Basic requirements for an applicant business are found at 35

36 Women Businesses Women and minority business owners: ref 8(a) website certification and government procurement. 36

37 US Military Veterans Certification The Veterans Benefits Act of 2010 (Oct 2010), Section 104, expands VA s requirement to verify business status as owned and operated by veterans, servicedisabled veterans or eligible surviving spouses. Self certification NO LONGER applies. Existing firms have until March 15, 2011 to get certified by the VA. New firms must be initially certified prior to claiming this status. See: 37

38 Veterans, cont. Veteran owned business:

39 HUBZone Empowerment Contracting Programs: HUBZone: The business address must be located in a HUBZone as determined by the US Census. 35% of employees (regular/temp/leased working a minimum of 40 hours per month) must reside (for at least 180 days) in a HUBZone (does not have to be the same HUBZone) to qualify. 39

40 HUBZone Benefits Small Business firms will have the opportunity to negotiate sole source contracts and participate in restricted competition. A 10% price evaluation preference is also given to HUBZoned vendors in full and open competition. (Price by a HUBZoned vendor will be considered lower than a non-hubzoned vendor, provided the price is within 10%.) 40

41 Consider this Finding Your Place Are you capable of being a prime contractor? Would you do better as a subcontractor? Sample links for opportunities with prime contractors: Public Law requires prime contractor to submit a subcontracting plan on $550K worth of federal business. Can you participate in a joint venture/teaming alliance? 41

42 Points to Ponder If you do not qualify as a federally certified vendor (i.e., 8(a), SDB, HUBZone, etc.), remember you can still bid on 77% of all federal contracts, and on 100% of all non-federal contracts If you need assistance with the certification process, call PTAC and/or OSBA. 42

43 Procurement Process Steps 1. Government agency establishes requirement. 2. Agency creates a detailed solicitation. 3. Agency publishes this requirement. 4. Potential suppliers monitor solicitations. 5. Potential suppliers bid on select requirement. 6. Agency reviews bids. 7. Agency awards bid. 8. Tax money is paid out for the goods/services. 43

44 Procurement Process, cont. 1. The government agency establishes the requirement. The government by law does not purchase goods and services unless a bona fide need is identified. Each agency determines its own requirements for goods and services. 44

45 Procurement Process, cont. 2. The agency prepares a solicitation. The solicitation is any request to submit offers or quotes to the government for the purpose of acquiring goods and services The agency prepares a solicitation that describes and specifies: - what it desires to purchase - the terms & conditions - the delivery schedule - any additional support requirements. 45

46 Procurement Process, cont. 3. Solicitation is announced via: Internet ( Newspapers Word of mouth Bid submission requirements are listed in these announcements; get on the electronic distribution list for solicitations. 46

47 Procurement Process, cont. 4. Potential suppliers monitor solicitations Potential contractors locate the solicitation using various search engines. Potential contractors obtain the complete solicitation package. Potential contractors review solicitation package to determine BID/NO BID.** ** A no bid is considered a response. 47

48 Procurement Process, cont. 5. Potential contractors submit their bid/ proposal to the appropriate location ON TIME!! You must ensure that any addendums/ amendments are included. You must meet all written requirements for the bid, (including format, number of copies, method of submission, etc.). 48

49 Procurement Process, cont. 6. The government agency reviews and evaluates the submitted bids/proposals for compliance Packages are evaluated according to the specifications (i.e., being responsible and responsive). If specifications are not met, the bid is disqualified. 7. The government agency awards the contract! The award becomes public record; the contract is executed. 49

50 Procurement Process, cont. 8. The government agency pays for the goods/services PROMPTLY. The current US federal budget authorizes $3.8 trillion dollars ($3,834,000,000,000) in expenditures for FY

51 What is a Trillion Dollars? Dollars expressed as Seconds 1 million seconds = +/ days 1 billion seconds = +/- 32 years 1 trillion seconds = > 30,000 years 51

52 The Support Staff for Your Journey Informational web sites: Small Business Administration Florida Procurement Technical Assistance Centers Small and Disadvantaged Business Utilization Specialists 52

53 Support Staff, Cont. Contracting People: ACO - Administrative Contracting Officer CAO - Contracting Administration Officer PCO - Purchasing Contracting Officer SBLO - Small Business Liaison Officer TCO - Termination Contracting Officer 53

54 Acronyms Along the roadway of government contracting you will encounter another language. It is, simply put.. The world of Government Acronyms. FAR - Federal Acquisition Regulation (the government s terms and conditions ) SOW - Statement Of Work 54

55 ARO - After Receipt of Order BOM - Bill Of Materials RFP - Request For Proposal ITB - Invitation To Bid Acronyms, cont. RFQ - Request For Quote (Std Form 18) RFI - Request For Information (price & delivery only) IFB - Invitation For Bid (Orders > $100k) PAS - Pre Award Survey (responsive & responsible?) EFT - Electronic Funds Transfer (bank-to-bank) 55

56 Review OBJECTIVES Learn the role of small business in Government contracting. Understand liabilities/assets involved with being a Government supplier. See how to use the internet to find bid opportunities, resources, research, and registration processes. Know how to decipher the alphabet soup of Government contracting. 56

57 EVALUATION Please complete your class evaluation form and turn it in to the instructor. A Record of Attendance will be awarded. 57

58 Your success is our highest priority. Thank You! PTAC: (561) Seminars: 58