leveraging term contracts - federal government
DESCRIPTION
Jennifer Schaus presents a webinar on Federal, State & Local government Term Contracts. More info: JSchaus@JenniferSchauscomTRANSCRIPT
Welcome to today’s webinar
We will begin at 2 p.m. ET/11 a.m. PT. You can hear the webinar on
streaming audio, so you’ll need to have your computer speakers or
headphones ready at that time.
If you want to dial in for the audio:
(415)-655-0051
Access Code: 718-661-532
Jennifer L. Schaus, Jennifer Schaus & Associates
Webinar: Build your pipeline with government Term Contracts
Q&A
Government Term Contracts
Introduction
Our featured expert:
ABOUT JENNIFER SCHAUSSummary
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Over 15 years Federal procurement & sales experience
Offices in Washington, DC and Rome, Italy
Contributed government purchasing expertise to:
─ Wall Street Journal / Washington Post
─ Business Journal / Government Product News
─ NCMA (National Contract Management Association)
─ AMEX – WIPP (Women Impacting Public Policy)
─ NDIA – WID (Women In Defense) / Various foreign embassy
delegations
ABOUT JENNIFER SCHAUSBackground- Federal Sales & Business Development
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─ Washington, DC & Rome, Italy
─ Small, Mid, Large, Fortune 500 Clients
─ Product & Services – Domestic & International Clients
─ GSA Schedules
─ B2G Sales / Marketing – FED, STATE & LOCAL
─ Related Services: 8a, Proposal Writing, Lobbying, etc.
GOVERNMENT TERM CONTRACTSDefinition
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Definition-A term contract is a contract in which a source or sources of supply are established for a specific period of time at a predetermined unit price
• Sources of Supply can include both products and services.
• Specific Period usually is no less than one year and no more than 10 years.
• Predetermined Unit Price are usually established and negotiated between the seller (vendor) and buyer (government)
GOVERNMENT TERM CONTRACTSExplanation
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Explanation-Term Contracts tend to be “multiple award” (MAS)
• Multiple vendors can be listed on the Term Contract• Many times, there is no guarantee of sales• Competition still exists
• Creates a designated & vetted pool for the buyer to select from
• Some have set date enrollment periods (typically State / Local)
• Others are open enrollment (i.e. Federal GSA Schedule)
GOVERNMENT TERM CONTRACTSExamples for Federal, State & Local
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Federal Government • GSA Schedule• VA Schedule• Army FIRST• Navy NAV SEAPORTe• FAA eFAST
State & Local Government • CMAS – California Multiple Award
Schedule• TXMAS – Texas Multiple Award Schedule• MHEC - Midwest Higher Education
Consortium • WSCA – Western States Contracting
Alliance
According to Onvia’s database, the average contract value for all Term Contracts is $3.5M.
Average Term Contract Value: $6M
Average Term Contract Value: $3M
GOVERNMENT TERM CONTRACTSAdvantages
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Advantages-• Can be a competitive advantage for vendors to keep out similar
firms who do not have
• Bidding opportunities designated for contract holders (EX: GSA E-Buy)
• Facilitates the buying process for the government
• Paperwork has been completed on the front-end• Less risky and less work for the buyer/CO• Company is “approved”• Budget dollars are allocated for these purchases• Vendor has complied with established T’s & C’s in the
contract upfront
GOVERNMENT TERM CONTRACTSHow is government using Term Contracts?
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• Government uses term contracts to simplify purchases
• Vetting has been done upfront
• Capabilities have been established & checked
• Fair & Reasonable pricing has been negotiated & set
• Facilitates purchasing process for the buyer
GOVERNMENT TERM CONTRACTSHow does agency leadership affect Term Contracts?
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• Scandals • Election Year – Political Changes• Outside Events – 9/11, Financial Crisis,
etc.
What affects agency leadership?
Creation of Agency • (DHS) Department Of Homeland Security
Dissolve Agency or Department• Bureau of Ocean Energy Management, Regulation & Enforcement (BOEMRE),
formerly Minerals Management Service (MMS), was replaced by Bureau of Ocean Energy Management (BOEM) & Bureau of Safety & Environmental Enforcement (BSEE).
GOVERNMENT TERM CONTRACTSHow does agency leadership affect Term Contracts?
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How does agency leadership affect term contracts?
Directives from agency leadership to utilize (or not) specific contracts.
Agency Specific Contracts:• Army FIRST• Navy NAV SEAPORTe• DHS Eagle
Vendor-Ready Contracts for Disaster Recovery & ARRA Programs• GSA Schedule sub-sets• Terms & Conditions will vary that vendor “accepts”
GOVERNMENT TERM CONTRACTSHow can you find more?
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MORE = Not always better
Q: Are term contracts right for you? 1. How does your customer buy?2. What are your margins with term contracts?3. Do you have “wiggle room” for bidding?
4. What are repercussions after accepting term contracts?
If term contracts are a good fit for your B2G strategy, consider:• Obtain one that is used the most for your offering• Obtain one that can be replicated/grandfathered in (GSA)
GOVERNMENT TERM CONTRACTSHow can you find more?
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More term contracts = More bidding opportunities with a smaller playing field of competitors
More bidding opportunities = More chances to win and grow business
More chances to win and grow business = More revenue for your company
CONSIDERATION: Profit Margins – negotiate rates that you can live with- and survive / thrive on!
GOVERNMENT TERM CONTRACTSWinning Bid Strategies- Post Term Contracts
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• Ensure you understand and comply with all of the Terms / ConditionsThis is important both pre and post award.
• Build relationships with your buyers for repeat businessIncumbents who perform well and “play well with others” tend to continue
winning.
• Build relationships with your Contract Administrators They can make your B2G business miserable or pleasant.
GOVERNMENT TERM CONTRACTSWinning Bid Strategies- Post Term Contracts
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• Ensure you are receiving the e-bidding opportunitiesMany companies go through the tedious process & forget this step!
• Understand your limitations on set price and options for bid priceT’s and C’s will vary by contract.
• Stay on top of the renewal to ensure no lapse or non-complianceRenewals tend to be easier than starting from scratch.
• If you are overwhelmed, consider an outside expert to manage the process &Reporting requirements.
GOVERNMENT TERM CONTRACTSWinning Bid Strategies- Negotiating Term Contracts!
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• Negotiate upfront rates that leave you room to bid lower (if this is part of the terms & conditions)
• Negotiate rates that allow you to still be profitable (Otherwise this market is not for you & you will be buying contracts)
• Negotiate rates that are competitive with your industry leaders
Negotiate!
Q&A
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QUESTIONS?
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Copyright: This document is copyrighted by Jennifer Schaus & Associates. All rights reserved. No part of this document may be reproduced, modified, or transmitted in any form or by any means, electronic, mechanical or otherwise without prior written permission.
Not Legal Advice: The opinions, information, and interpretations provided in this document are the personal opinions of Jennifer Schaus, are for educational and informational purposes only, and do not represent legal advice. When appropriate, readers of this document are encouraged to consult with an attorney to obtain legal advice.
THANK YOU!Jennifer Schaus & AssociatesEmail: [email protected]
Web: http://www.jenniferschaus.com/
Office: 202.365.0598
Scott Merrick- Marketing Director at OnviaEmail: [email protected]
Web: www.onvia.com
Office: 206.373.9415