us goverment contracting overview - for south korean firms
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US Government Procurement OVERVIEW
October 7. 2014
AGENDA
October 7. 2014
Welcome!환영합니다
October 7. 2014
AGENDA
Introduction
Presentation
Conclusions / Recommendations
Q & AOctober 7. 2014
Introduction
Company Name
Product / Service
# Years In Business
Any Government Customers?
October 7. 2014
Introduction
Jennifer L. Schaus
20 Years Govt ContractingWashington DC BasedEmbassies / Foreign
ClientsContract Vehicles / Fed
Gov SalesOctober 7. 2014
Presentation
October 7. 2014
WHO?The US Federal
Government
October 7. 2014
The US Federal Government
World’s Largest PurchaserGoods / Services
$500B (USD) AnnuallyProcesses
Regulated by the FAROctober 7. 2014
The US Federal Government
The FARRules of Acquisitions
How to PurchaseScope, Policy, Procedures(DFAR = Dept of Defense)
October 7. 2014
The US Federal Government
The FARReference Website:
www.acquisition.gov/far
October 7. 2014
The US Federal GovernmentMultiple Executive AgenciesSeparate Budgets, Agenda,
MissionAgency Head = Political
AppointeeProgram Managers
Contracting Officers = COOctober 7. 2014
The US Federal Government15 Executive Level
Departments70 Independent Agencies68 Boards & Commissions
Congress – House & SentateUS Courts
October 7. 2014
The US Federal GovernmentRisk Adverse
Comfort with known entitiesSlow to change
Budget conscious
October 7. 2014
The US Federal GovernmentFair market price
Small business set-asidesCompetition
Available public data
October 7. 2014
The US Federal GovernmentContractors
Long Sales CyclePaperwork / Forms
Relationships MatterCompetitive
October 7. 2014
WHEN DO THEY BUY?
October 7. 2014
The Federal Fiscal YearOctober 1 – September 30Note: Q4 = Use it or lose
it policyHigh spikes in Q4
spending
October 7. 2014
Budget ProcessAgencies make budget request
House & Senate vote / agreePresident signs
Money allocated Stalemate = CR, Continuing
Resolution
October 7. 2014
WHAT DO THEY BUY?
October 7. 2014
What is Purchased?Airplanes to ZippersConsulting Services
Dental ServicesIT Services
SecurityJanitorial
October 7. 2014
WHERE DO THEY BUY?
October 7. 2014
Where Purchases Occur* Washington, DC =
Policy/Purchases* Virginia, Maryland,
Alabama, California, Texas, New York
* WorldwideOctober 7. 2014
HOW DO THEY BUY?
October 7. 2014
How Goods/Services ProcuredNote: The FAR = Rules
1 - Conduct Market ResearchInternet
Trade JournalsPast Purchases
October 7. 2014
How Goods/Services ProcuredNote: The FAR = Rules
1 - Market Research - FAR Part 10
* Sources exist?* Meet agency requirements?
* Commercially available?October 7. 2014
How Goods/Services Procured
2 – Requirements - FAR Part 11
Describe agency needsPromote full & open
competition
October 7. 2014
How Goods/Services Procured3 – Acquisition of Items – FAR
Part 12* Procedures for Solicitation,
Evaluation, Award* Contract Type
* Past Performance* Price Reasonableness
October 7. 2014
How Goods/Services Procured“Sources Sought”
Government is surveying the marketplace for commerciality
October 7. 2014
How Goods/Services ProcuredRFI = Request for
Information* Government request more detailed information from
vendors* Not price, mostly
capabilities specific to agency needsOctober 7. 2014
How Goods/Services ProcuredRFP = Request For Proposal
* “Big Money”* $25k + www.FBO.gov
* Very competitive
October 7. 2014
How Goods/Services ProcuredRFP = Request For Proposal
* Solicitation will include evaluation factors =
SECTION Mie. Price, Past Performance,
etc.* How your proposal is
weightedOctober 7. 2014
How Goods/Services ProcuredCurrent EnvironmentLPTA vs. Best Value
Lowest Price Technically Acceptable
October 7. 2014
How Goods/Services ProcuredNOTE: LPTA does not always include Past Performance as
evaluation criteria
October 7. 2014
How Goods/Services Procured
Types of Contracts
October 7. 2014
How Goods/Services ProcuredCommon Types of Contracts
IDIQ – Indefinite Delivery/Quantity
GWAC – Government Wide Acquisition
Sole Source - UniqueBPA – Blanket Purchase
AgreementOctober 7. 2014
How Goods/Services Procured
IDIQ & GWAC Contracts
October 7. 2014
IDIQ & GWAC* Typically a short list of vendors
* Pre-qualified* Price limits
* Compete to Compete* No guarantee
* Buyer has money allocated
October 7. 2014
IDIQ / GWAC Example:GSA & VA Schedules
5 Year Contract / 3 Renewals = 20 Yrs
Lowest PriceMAS = Multiple Award Schedule
Sales Quota Requirement
October 7. 2014
IDIQ / GWAC Example:GSA & VA Schedules
Amazon / EBay SystemKeep out competition
Set-asides within for small business
Used by Fed, State, Local, IntlApprox 10% of Fed Purchases
October 7. 2014
IDIQ / GWAC Example:GSA & VA Schedules
Dedicated RFP notificationsLess than $150k = direct award
Easy to useEliminates paperwork for
government
October 7. 2014
IDIQ / GWAC Example:GSA & VA Schedules =
MARKETING TOOL ONLY!NOT REQUIRED!
October 7. 2014
IDIQ / GWAC Example:GSA & VA Schedules
20k Vendors39 Schedules
Gives buyers a method to get to YOU!
October 7. 2014
How Goods/Services Procured
Sole Source Contracts
October 7. 2014
Sole Source ContractsLarge or Small BusinessUnique product / service
Specific brand nameFills an urgent need
Justification Required!
October 7. 2014
How Goods/Services Procured
Blanket Purchase Agreements
October 7. 2014
BPA – Blanket Purchase Agreements
Money is allocatedShort list of vendorsUsually for product
Fulfills requirement but unspecified quantity
ie. medical supplies, auto partsOctober 7. 2014
How Goods/Services Procured
Dollar Amounts Broken Down
October 7. 2014
How Goods/Services Procured$3,000 and < Contracts
“Under the mirco-threshold”Government P-Card (Purchase)
Credit CardDirect Purchase
Small or Large Business
October 7. 2014
How Goods/Services Procured$3,000 - $25,000
Government obtains 3 written offers
No RFP Required
October 7. 2014
How Goods/Services Procured$3k-$150k Simplified Acquisition-
FAR Part 13Reserved for small businessIf no small business, then
unrestrictedGrowing in popularity/usage
October 7. 2014
Pricing & Bids
October 7. 2014
Pricing & BidsTime & Materials
Cost PlusFirm Fixed Price
October 7. 2014
Pricing & Bids* Time & Materials – bid hours at approved rates; profit built in.
* Cost Plus – reimbursed labor/materials; incentive; profit
% fixed.* Firm Fixed Price – flat rate.
October 7. 2014
Conclusions / Recommendations
October 7. 2014
* Competitive Market* Performance & Price Matter
* Relationships with government
* Relationships with partners* Lead with your capabilities
October 7. 2014
* Make it easy for govt to purchase from you & find you
* Solve a problem / fulfill a need
* Leverage public data* Be specific & strategic!
October 7. 2014
Have a government Business Plan
Stay abreast of events, news, opps
Leverage associationsEstimate 12-24 months for sale
Estimate $150k + per yr investmentOctober 7. 2014
Thank You!고맙습니다
Questions & Answers
Jennifer SchausWashington, DC
Government Contracts Consulting Services
+ 1 – 2 0 2 – 3 6 5 – 0 5 9 8www.JenniferSchaus.com October 7. 2014
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