P T A C Annual Report. Procurement Technical Assistance Center
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1 P T A C 2009 Annual Report Procurement Technical Assistance Center 1
2 Letter from the Program Manager I am very pleased to present the 2009 Annual Report for the Puerto Rico Procurement Technical Assistance Center (PTAC). The year of 2009 was one of great achievements as the PTAC broke new ground with innovative initiatives, alliances, and programs. Some highlights include: Organized two business delegations to visit contracting agencies in the United States Redesigned website with greatly improved content and a regular newsletter Became one of the first PTACs nationwide to join the Federal Contractor Certification Program Reduced completion time for the Central Contractor Registration process by a factor of 7 with a twice a month E-lab For 24 years, the Puerto Rico PTAC has provided the premier technical assistance that helps entrepreneurs succeed in the federal government marketplace. In 2009, the PTAC had a significant impact on Puerto Rico s business community by helping it secure 78 federal contracts for a total of $62.6 million in sales, which created and retained 1,252 jobs. These results demonstrate a measurable impact on Puerto Rico s economy; nonetheless, they are only one piece of the big picture. I am confident that after reviewing this report, you will appreciate the real impact of the PTAC in Puerto Rico. A coordinated team approach to the PTAC network ensured a successful Through our diverse network of partners including universities, business associations, and federal and state agencies we have continued to maintain federal contracting as a top priority among our partners. The Puerto Rico PTAC assists prospective and experienced federal contractors through direct consulting, training, research, and technical assistance in all phases of the contracting cycle: from registrations, certifications, and marketing, to proposal writing and post award administration. To assist in strengthening small businesses, the PTAC provides access to roundtables, guidance in market diversification, and strategic outreach. In turn, these businesses accelerate our economy and create jobs for Puerto Rico s workers. The accomplishments of the PTAC could not be achieved without the support of the program s funding partners: the Puerto Rico Industrial Development Administration and the U.S. Defense Logistics Agency. These organizations, coupled with the strength and resources of the PTAC staff, form a solid infrastructure that leverages the power of federal and state programs for business owners on the island. In the Puerto Rico PTAC, we are committed in helping our clients grow and sustain their businesses. As we move forward in 2010, we will continue to develop innovative ways to assist entrepreneurs in adjusting to and capitalizing on the increasingly rapid changes in the federal marketplace. Pedro J. Acevedo Program Manager 1
3 Quantifiable Outcomes Return on Investment 1,252 jobs were created or retained $62.6 million in federal contracts were awarded to PTAC clients $1,000 invested in the PTAC generated $125,000 in sales and 2.5 jobs 210 out of 279 clients surveyed qualified the PTAC services as excellent (50%) or good (35%) 44 seminars and conferences were sponsored or co-sponsored 1,976 entrepreneurs participated in the training programs 658 companies were assisted with the Central Contractor Registration (CCR) 2,252 specialized business consults were offered 803 companies were assisted in selling to the federal government 14 companies were assisted in preparing the US Small Business Administration 8(a) application 14 companies were assisted in preparing the US Small Business Administration HubZone application 17 companies were assisted in preparing the US General Services Administration schedule contract proposal 78 companies were assisted in bids and proposals A snapshot of PTAC metrics Evaluation Factors Goal Achieved % of Goal Active client base % Procurement outreach conferences % Initial counselings % Follow-up counselings 508 1, % Contract awards $50M % Subcontract awards $50K $74.4K 149% Jobs created or retained , % 2
4 Celebrating 24 years of uninterrupted service to Puerto Rico entrepreneurs The Puerto Rico Procurement Technical Assistance Center (PTAC) was established in 1985 by a partnership agreement between the U.S. Defense Logistics Agency and the Puerto Rico Industrial Development Company. The PTAC is part of a nationwide network of Procurement Technical Assistance Centers that helps small businesses obtain government contracts with the Department of Defense, other federal agencies, state and federal prime contractors. The Puerto Rico PTAC offers the business community a team of expert procurement specialists who are standing by to help them win and succeed in the Federal Government marketplace. These specialists will organize, analyze, and synthesize information from many sources to provide entrepreneurs with the knowledge they require, exactly when it is needed. Small businesses that have a product or service needed by a government agency are welcome to apply for the services. All the services are provided at no cost to the business owner. Having an established business, access, a presence in Puerto Rico, and an interest in the government market are the only criteria for participating in the program. Support Puerto Rican Companies interested in doing business with the federal government by: Providing businesses with an understanding of the requirements of government contracting and the marketing know-how they need to obtain and successfully perform Federal Government contracts. Supporting Federal Government Agencies in reaching and working with the suppliers they need. Generate employment and improve the general economy of Puerto Rico by assisting business firms to obtain and perform under federal state, and municipal government contracts. 3
5 Servicing the Veteran Community During 2009 we (VetSource Puerto Rico Members) received direct specialized and professional assistance from PTAC (Procurement Technical Assistance Center) which greatly improved our abilities to sell goods or services to the Federal, State, Local government agencies, as well as, prime contractors throughout the island of Puerto Rico. As a result of this indispensable assistance, a number of members received several contracts generating much needed new full or part time employments. In some cases these new employees were veterans as well. PTAC has been instrumental in VetSource s development into a powerful voice for the veteran business movement in Puerto Rico while providing additional assistance to veterans, particularly service-disabled veterans, with creating or expanding their own small businesses. VetSource PR members are deeply thankful to have professional organizations such as PTAC on their side when needed. We are looking forward to a longlasting relationship. Our special thanks go to Pedro Acevedo (PTAC Director), Mildred Lyannez Morales (technician), and Marjuli David Mateo (technician) from PTAC, for their hard work, dedication, and those long hours working side by side with us. Cordially; Isaac Garcia President RECOGNITION TO THE PTAC 4
6 Key Initiatives of the Puerto Rico PTAC FOSE In March 2009 the PTAC brought a delegation of four Puerto Rican companies to exhibit in the FOSE convention in Washington, DC, the Federal government s largest IT-related exhibition. Additionally, several meetings were coordinated with the US Department of Veterans, US Department of Health and Human Services, and the Department of the Army for them to present their capabilities to these agencies and discuss business opportunities. Apparel Industry The PTAC lead a special initiative that brought together the Department of Defense (DoD) apparel contractors in Puerto Rico to increase their competitive edge in this market. The efforts consisted of quarterly meetings where Industry met with State and Federal representatives to discuss the challenges they are facing and to look for solutions. This initiative originated from a visit arranged by the PTAC to the Defense Supply Center Philadelphia in 2008, where 8 small businesses participated in a meeting with the Small Business Office and contracting personnel to present their capabilities to the main buyers of military apparel for the DoD. As a result, an agreement is about to be reached where several contractors will join together to leverage their buying power to reduce the prices of the common items that they procure and to lower the cost of transportation by sharing the container loads that are constantly coming to Puerto Rico and leaving to the US. Additionally and based on the contractor s input, the PTAC brought to Puerto Rico key members from the Defense Supply Center Philadelphia (DSC-P), Defense Contract Management Agency and from the US Justice Department to look at new ways of strengthening the apparel industry industrial base. 5
7 Key Initiatives of the Puerto Rico PTAC Federal Contractor Certification Program (FCC) Initiative The PTAC in collaboration with the Association of Procurement Technical Assistance Centers and the Center for Veterans Enterprise, with the assistance of the Defense Acquisitions University, have teamed to carry out the Federal Contractor Certification. This training program is intended to help business owners understand federal contracting, respond intelligently to solicitations, and perform successfully once a contract has been won. The FCC program consists of four levels of certification, each built upon successful completion of the previous levels. Level 1 certification covers Basic Understanding of Federal Contracting. Level 2 covers Teaming, Joint Ventures and Legal Issues. Level 3 is industry-specific: the participant chooses his or her particular industry to learn the issues, regulations, or policies that are unique to that industry. Level 4 is the most advanced and covers Special Certifications, Large Contract Vehicles and Advanced Issues. Strategic Alliance Memorandum The PTAC signed a Strategic Alliance Memorandum with the US Small Business Administration (SBA) to foster mutual understanding and a working relationship between the SBA and the PTAC in order to strengthen and expand small business development. Both parties have agreed to provide each other with up-to-date information about their programs and services; make available pamphlets, brochures, and other publications; advise each other of events that may impact their mission; and provide speakers to participate in workshops, conferences, seminars and other activities to discuss government contracting and other related topics. This alliance proved to be successful in strengthening the collaboration between both parties as shown by the 15 seminars on which the PTAC and SBA worked together. Central Contractor Registration (CCR) E-lab The PTAC launched an e-lab program where entrepreneurs interested in selling to the federal government come to the center equipped with their laptop computers to complete their on-line application to be included in the CCR. This initiative has increased the program s efficiency by reducing completion time for the registration process by a factor of 7 with each E-lab. The e- labs are held twice a month with an average participation of 7 companies. Occupational Safety and Health Administration (OSHA) The PTAC joined forces with the University of Puerto Rico Medical Science Campus to offer free of charge the 10 hours OSHA certification course geared to workers from the construction industry. The course was offered in two occasions with a total participation of 64 people. This alliance saved a cumulative amount of $32,500 to the participating small businesses. 6
8 Key Initiatives of the Puerto Rico PTAC US General Services Administration (GSA) Initiative Under the GSA Schedules (also referred to as Multiple Award Schedules and Federal Supply Schedules) Program, GSA establishes long-term government-wide contracts with commercial firms to provide access to over 11 million commercial supplies (products) and services that can be ordered directly from GSA Schedule contractors. Fewer than 10 companies in Puerto Rico are participating in this 36 billion dollar market, representing a giant opportunity for local firms to expand their customer base. The three major reasons for this underrepresentation are the poor marketing of the program, the complicated solicitation process, and the high costs involved ($5k-$10k) if a company decides to hire a consultant to prepare the solicitation package. Recognizing the importance of this market, the PTAC developed an action plan to increase the market share and customer base of local companies. This plan consisted of training two staff members with advanced GSA proposal preparation techniques, partnering with GSA to increase their marketing efforts on the island, and starting an aggressive outreach program to increase awareness. The program was very successful, exceeding the proposed goals and showing measurable results. As of November 2009 two PTAC officers were trained by industry leader Fedmarket in a threeday advanced course in Houston, Texas. Two seminars were co-sponsored with GSA New York where 135 entrepreneurs learned about the GSA market and how to take advantage of it, one company has already been awarded a contract, and five additional firms are finishing up the solicitation packages. Buying Centers Tour This year we began a round of visits to the different buying centers of the federal agencies here in Puerto Rico. The intention of these visits was to reinforce relations with the people in charge of contracting within the process of federal purchases. The manager of the PTAC, Pedro Acevedo, went personally to each one of the 20 agencies visited through the island presenting the program s new initiatives and promoting the PTAC as their best source of prospect clients for federal business. Outreach services in PRIDCO s regional office One of the benefits we offer our clients is our program s versatility in a way that it fits their necessities so they can reach their federal contracting goals more easily. This year, our program has moved to offer its services to Ponce once a month from our Regional Office there, so our clients from southern Puerto Rico can benefit without having to move to the Metropolitan area. This initiative has also given us exposure for the companies that PRIDCO promotes in that area of the island. 7
9 Federal Business Opportunities Conference 2009 & Exhibition of Apparel Military Industry 2009 Considering the fact that Puerto Rico is only receiving.2% of the Federal market, and looking to increase this market share, the PTAC coordinated different events that took place during the week of October 12, During that week highranking Federal and State Government representatives, as well as distinguished members of the business community had the opportunity to meet and interact in a series of conferences and roundtable discussions to learn about the potential of the Federal market as an economic development means. On October 14 the Federal Business Opportunities Conference was held at the Conrad San Juan Condado Plaza Hotel. The PTAC welcomed over 300 entrepreneurs and over 40 representatives from the principal federal contracting agencies in a business oriented environment where the participants had the opportunity to explore new opportunities in the federal procurement arena. The conference consisted of specialized training on federal procurement topics such as: Marketing to the Federal Government: Tactics & Strategies How to Identify Business Opportunities What to Consider before Submitting a Bid: Tips & Strategies Challenges & Opportunities in the apparel industry Performance Based Payments Quality Control & Delivery Schedules In addition, the participants were able to market to 20 federal agencies at the One-on-One sessions and through the networking activities. Exhibition of Apparel Military Products Manufactured in Puerto Rico Looking to give a special recognition to the apparel manufacturing industry, the PTAC put together an exhibition of all kinds of apparel products and textile personal equipment manufactured in Puerto Rico for the US Armed Forces. To make this possible we gathered a variety of samples supplied by the 13 active contractors who have performed and are still participating of federal contracts successfully. 8
10 Industry Professional Development The PTAC sponsored and co-sponsored over 40 seminars, conferences and forums with the purpose of helping customers understand better the federal contracting process and offer them the necessary tools to give them more accessibility to this market. The activities went from basic principles such as registering in the central contractor registration to specialized seminars in cost & pricing. The following table shows the myriad of topics covered. Corps of Engineers industry forum Marketing Research in the Federal Market 8(a) & Hubzone Program Certification Federal Contracting Basic 101 Federal Contracting 102 OSHA 10 hours certification course How to obtain a GSA Schedules Contract Industries and Strategic Services, First Foods Summit Standard Form 330 Architect & Engineering Qualifications Puerto Rico Tax Compliance and Filing Requirements for Small Business Marketing Plan Business Matchmaking How to fill the application for 8(A) Cost and Pricing Part I Cost and Pricing Part II Doing business with the Federal Government Certification for Federal Contracting Match Making Event: Business Opportunities with the Federal Government How to create strategic alliances to make your business grow GSA's Public Buildings Service Procurement Opportunities in the Caribbean 2009 Federal Procurement Conference The impact of the OSHA regulations, EEO and Wage & Salary in federal contracting How to participate in bids and proposals 9
11 Puerto Rico PTAC Team Members PTAC Staff All the 2009 achievements could not be done without the hard work, long hours and full commitment from the PTAC staff. Ms. Bárbara I. Rivera-Chinea is a Procurement Specialists with six years of experience in federal contracting. She has a BBA in Marketing Management and is a member of the Association of Procurement Technical Assistance Centers and the Sales and Marketing Executives Association. Ms. Rivera is primarily in charge of the clothing, subsistence and health industry. She also manages the marketing efforts of the PTAC. Ms. Marjuli David Mateo is a Procurement Specialist with six years of experience in federal contracting. She is member of the Association of Procurement Technical Assistance Centers and has a master degree in Business Administration. Ms. David is mainly in charge of the information & technology and the metal industry. She is the Center s primarily resource for the GSA schedules and manages the PTAC training program. Ms. Mildred Lyannez-Morales is a Procurement Specialist with four years of experience in federal procurement. She has a master degree in Business Administration and is a level one Certified Contracting Assistance by the National Association of Procurement Technical Assistance Centers. Mrs. Lyannez-Morales is primarily in charge of the construction industry and is the liaison between the PTAC and the Veteran s community. 10
12 Puerto Rico PTAC Team Members Ms. Rosa Iglesias is the Center s Administrative Assistant and has a BBA in Marketing. She supports the Program Manager in all administrative matters and serves as the first contact between the industry and the PTAC. Mr. Rey Torres is a procurement specialist with 10 years of experience in federal procurement. He has a bachelor degree in Business Administration and is a member of Association of Procurement Technical Assistance Centers. Mr. Torres is in charge of new clients orientation and registration processes. He also manages the Central Contractor Registration e-lab. Mr. Pedro J. Acevedo is the manager of the PTAC and has 23 years of experience in federal contracting. He has a master degree in Business Administration and is a level three Certified Contracting Assistance Specialist by the National Association of Procurement Technical Assistance Centers. Mr. Acevedo is an active contracting practitioner, offering training courses and business counseling to industry. 11
13 Professional Development Staff Development In order to maintain the highest level of technical expertise in the Center each member is required to take a series of professional development courses. Most of this training is offered on-line by the Defense Acquisition University and by the Association of Procurement Technical Assistance Centers. The following table summarizes the courses taken during the year. A Small Business Specialist Defense Subcontract Management Advanced GSA Schedule training GSA Schedule training 14 hours Indirect Costs Wide Area Workflow (WAWF) Market Research Lean 6 Sigma for Manufacturing Berry Amendment Sealed Bidding Buy American Act Organizational Conflicts of Interest Commercial Item Pricing Quality Assurance Auditing Understanding Federal Rules and Contract Source Selection Regulations Contract Terminations Service-Disabled Veteran programs Shaping Smart Business Arrangements Contracting For the Rest of Us Contracting Overview Simplified Acquisition Procedures DCMA Intern Training Six Sigma: Concepts and Processes 12
14 Special Thanks The PTAC Team thanks everyone in PRIDCO for their continuous support which helped us exceed all the established goals. They work behind the scenes, so to speak, and make our work much more enjoyable and effective. Our special gratitude and recognition to: Elizabeth Vale José González Evelyn Cardona Ana Núñez Diana Pérez Cinthya Rivera Migbel Guzmán Mariluz López Maribel Cordero Sandrita López Hernán Rodríguez Soraya Portillo Hilda Yunén Shari Díaz Javier Figueroa Bárbara Vélez Rafael De Jesús Juan Bonilla Torres Julio A. Cordero Viruet Oscar Pérez Becerra Edwin Torres It is equally important to show our appreciation to the many companies, clients and agencies that were always there to lend a hand. Their prompt assistance and cooperation means a lot to our program and to the companies we help. Our special gratitude and recognition to: Stephen French, Andrés Lebrón, and the rest of the Puerto Rico Defense Contract Management Agency staff Edwin Méndez and all his staff from the Fort Buchanan Contracting Office Patrick Balcazar, PE San Diego Project Management PSC Angel Dávila, PE Gire Development Corp. Sergio Caporalli, PHD UPR Recinto de Ciencias Médicas Rubin Padilla from GSA Oscar Díaz and Ricardo Antonetti from Fish and Wild Life Marcos Polanco, Albedrio Susana Peñalosa, Multilingua Inc. 13
15 How to Reach the Puerto Rico PTAC: Bárbara Rivera x Marjuli David x Mildred Lyannez x.2237 Rosa Iglesias x Rey Torres x Pedro J. Acevedo x Mailing Address: P.O. Box , San Juan PR Street Address: 355 FD Roosevelt Ave, Hato Rey, PR Fax:
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