Federal BusinessThings to Know

Eben TownesFederal Strategies, LLC

24 Feb 2014

Federal Business

Agencies rely more on contractors than ever before;

often critical to mission/operations success

• U.S. possibly largest customer for your products/

services

• There is no one federal government a. Follow same general rulesb. Heavily local customs, behavior, culture applied

• Commercial Items, leverage (for products and business)

• Can be long-term and profitable customer

Federal Business• Budgets immune to economic cycles – and grow• Reduced selling costs possible• Competition is keen• Government pays on time• Agencies add work to successful contracts• Knowing who/what/when/why/how can give a

competitive edge

• But need to know and deal with business differences• No where can do so much so fast

Federal Agency Culture• Have no time (plan, research, business), poor statements of work, solicitations, confusing clarifications, too-short schedules

• Take much time to complete – know and deal with it

• Don’t know business realities • Risk adverse – ignore, pass on to you• Process driven (it’s safer)• Documentation• Requirements• Protest fear

Accountability cloudy

Federal Business

• Designed to:– Serve end-user needs– Plan as a tool– Regulations are guides

– Be efficient– If doesn’t say “no” you

can– Manage not avoid risks– Competition

• Practice:– Process trumps– Never time , hard to do– Local culture, we-always-

do-it-this-way– Long schedules– Avoid risks –

• Follow rules exactly (time)• Poor requirements• Whatever risks present,

shift to contractors• Don’t talk or listen• Protest fear

Agency Major PlayersEnd-users/customers -

Mission, service providers, consumersHave the needs

Always in hurry Lack plans, measures

Contracting -Process-driven vs. business reality savvyTime to perfect, avoid riskBe/stay safeStress w users

Finance -Manage overallTreat as ownColor of moneyLow quantity commitments

5 Ways to Buy-Sell

1. Contract by sealed bidding2. Contracting by negotiation3. Simplified acquisition procedures4. Multiple-award delivery-order & task-

order acquisition, “fair opportunity”5. Multiple Award Schedule acquisition

How & Why Award

Lowest PriceOther than lowest price

“Best value”Price is important, but not most importantAgencies provide criteria (i.e., value)Linkages to expressed need, required

information, award criteria poorRequirements detail level vs. best valuePast performance storyRisk??!!

RecommendationsKnow the customerUnderstand business practice differences and risksCommit, adjust, and leverage to mainstream businessDevelop a good past performance storyRead and analyze all of solicitations (esp. Secs. C, L, M)Don’t short shrift, credibility essentialDocumentationMarket researchDon’t be pushed around

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