Download - SELLING ABILITY ONE IN THE CURRENT MARKET
1 | 2013 NIB/NAEPB National Conference and Expo
2 | 2013 NIB/NAEPB National Conference and Expo
SELLING ABILITY ONE IN THE CURRENT
MARKET
Larry AllenAllen Federal
Jim PhillipsCentre Consulting
3 | 2013 NIB/NAEPB National Conference and Expo
START AT THE BEGINNINGThe Current Status of the Federal Market
Current Status of the Continuing Resolution CR’s and New Projects
Threat of A Debt Ceiling Crisis Still Looms
Sequestration Is Still With Us DOD Officials Estimate that 50% of the Acquisition
Workforce Has LESS Than 5 Years of Experience______ But The Government IS Open For Business Missions, Priorities, Emergencies Will All Have To Be Met
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WHAT’S STRESSING YOUR FEDERAL CLIENT?
Pay Freezes
Shift From Furloughs To Possible RIF’s
Micromanagement From Congress and the IG Community
Traditional Factors: Bureaucracy, Shifting Mandates, Etc.
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HOW TO MAKE THESE WORK FOR YOU
Be The Trusted, Reliable Supplier Walk That New CO or CS Through The Process, Don’t Assume They Know! Position Yourself as a Business Partner - If you don’t have it help them find
it
Stress Experience in Market Speed of Need, Quality Items, Great Values Monitor/reinforce exceptional past performance record
Listen To Their Story First, Then Tell Yours Everyone has a “hot button” – Understanding a buyer’s hot button allow you
to differentiate yourself from others.
Help Solve Other Problems When You Can
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CHANGES TO SUPPLY & ACQUISITIONWhat They Mean To You
Office Products, Jan/San & Other FSSI Programs More on this follows
GSA 3PL Plans
Single Agency “Total Solutions” Contracts
LPTA Buying
Small Business Goal Pressure
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HOW DO YOU CONFRONT THOSE CHALLENGES?
Tell The Ability One Story Put a Face With a Name Disparate Economic Impact One Pager New Staff Be Unfamiliar With Ability One Requirements
Target Specific Agencies Past Successes Existing and New Relationships
Stress Best Value, Quality of Product, Secure Supply Chain Form Strategic Alliances With Industry Partners
FSSI Contract Holders & 3PL Contractor(s) Participate in Buying Groups and Other Vendor Coalitions
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CONFRONTING CHALLENGES CONTINUED
Reminders About Mandatory Source Status Are Appropriate – Especially in a “Set It and Forget It” World
Get Help From NIB and Ability One For Special Circumstances
Constant Communication with Major Buyers GSA DLA VA
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SO WHAT MAKES YOU ATTRACTIVE TO A PRIME CONTRACTOR?
Potential Business Opportunity You’ve Already Identified That They Can Help With
You Have Specialized, Niche Items Experience In The Federal Market Experience/Relationship With A Specific
Customer That They Do Not Have Reliable/Quick-Ship Capability Ability One Status Can Be A Positive
Evaluation Factor
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WHERE DO I FIND THESE PRIME CONTRACTORS?
All Large Prime Contractors Have Small Business Offices To Identify Partners With Socio-Economic Status Free Media Sources Like Govexec.com and
Federalnewsradio.com, regularly mention larger contractors in the news
Many Companies, and Associations, Host Small Business Days for Contractor “Speed Dating”
Industry Association Membership
One-on-One Meetings
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WHAT ELSE
Subscribed to Industry Publications Government Executive, Federal Computer
Week, Federal Times, etc.
Active marketing both with issuing sources and with contracting entities
Internal Training on Compliance
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COMMON TRAITS OF SUCCESSFUL CONTRACTORS
Focused On The Federal Market
Put the time and resources not just into sales, but relationship building
Anticipate changes that can impact your business, quickly identify problems
Learn from others
Successful CEO’s Say: “Don’t go it alone”
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WHY YOU NEED TO SELL & MARKET
Ability One Status Is Just The Beginning Allows You To Sell More Easily, Gives You
Legitimacy How Good A Tool It Is Depends on Who Is Using It
No Business Is Guaranteed
Must Call On Customers & Develop Leads
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MAKE USE OF RESOURCES
Use Information From Free and Paid Resources to Draft Internal Growth Plans
Develop & Use New Contacts In & Out of Govt. Participate in The Market, Including Events Like
Conferences, Awards Shows, Etc. Identify New Opportunities, Competitors and Risks
Dedicate Internal Resources To Make It Work
Be Prepared When Less Dedicated Firms Leave the Market
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WHAT ELSE
Subscribe to Industry Publications Government Executive, Federal Computer Week,
Federal Times, etc.
Active marketing both with issuing sources and with contracting entities
Internal Training on Market Changes And, Where Necessary, Compliance
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MORE TIPS
Successful firms adopt a “client for life” operating model
Clients tend to re-use Trusted Suppliers
Add new tasking with minimal competition
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THE SELLING RECTANGLE
End-User – The Most Obvious Person
Program Manager - Sometimes The EU’s Boss, Sometimes the Same Person
CFO – Only If You Want To Make Sure The Agency Has Money
The CO – Repeat After Me: “The CO Is The ONLY Person Who Can Bind The Gov’t. To A Contract”
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A QUICK LOOK AT THE FUTURE
Federal Budget Will Continue To Be Tight For Foreseeable Future, But Specific Opportunities Will Exist
New Procurement Methods Pose Challenges For Ability One Sales & Distribution Make Sure You Tell Your Story
Procuring Agencies – Especially New Contracting Officers
Logistics Contractors Don’t Be Afraid To Use Congressional Allies When
Absolutely Necessary Make Sure YOU Stay Up To Date On What’s Happening In Your
Area
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FSSI(Federal Strategic Sourcing Initiative)
Major OMB/GSA initiative to create new buying programs to achieve greater discounts/lower prices based on consolidation of buying across government agencies. All agencies direct to evaluate spending and propose
product/service markets suitable for Strategic Sourcing. Goal is to then target those markets deemed suitable
through creation of new “mandatory” contract vehicles.
GSA is a big player here – directed by OMB to establish 5 new FSSI contracts in 2013 & 2014.
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FSSI(Federal Strategic Sourcing Initiative)
OS3 – Office Supplies Current OS2 FSSI BPAs tied to Schedule 75 to expire June
2014. Fifteen BPA holders currently, of which 13 are Small
Businesses
GSA at work on acquisition strategy for successor FSSI vehicle Strategy complicated by fact that Schedule 75 has been
closed for five years to new offers GSA appears to prefer an “open market” procurement
strategy to replace this contract. Expect RFP in December/January time frame!
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FSSI(Federal Strategic Sourcing Initiative)
JanSan/MRO Supplies Draft RFQ for Schedules based BPA issued in May 2013
Draft RFQ subsequently revised in response to industry comments
Extensive Q&As has extended release of final RFQ – Coming soon!
You must be an applicable Schedule holder and be Ability One approved to compete Vendors not winning BPA seats can seek to become
participating dealers on other BPAs holder contracts. If you don’t win a BPA and/or become a participating dealer,
this market will likely close for you!
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Data Reporting & Pricing Tools
Transactional data reporting a major new mandate. Commands strong E-Commerce capability. Another area where you shouldn’t assume customer
understands requirements – Get ahead of them!
Emergence of “Prices Paid” and Other Pricing Tools Creating keen focus on prices paid at the transactional/order
level Need to understand what dynamics are driving your prices
and your competitors because someone is going to start watching!
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TYING IT ALL TOGETHER
Federal Government Is Open For Business & Will Buy What You’re Selling
Use A Targeted Approach When Pursuing Business – Rifle vs. Shotgun
Consider New Relationships/Channels Promote/Educate on Ability One Compliance Be Patient Have A Sense of Humor
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QUESTIONS/COMMENTS
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Contacts
Larry AllenAllen Federal Business [email protected]
Jim PhillipsCentre [email protected]