NORTH CAROLINA MILITARY BUSINESS CENTER INTRODUCTION TO FEDERAL CONTRACTING

PRESENTED BY: SCOTT DORNEY, NCMBC TEAM

13 AUG 2020WWW.NCMBC.US

Agenda

• Welcome• North Carolina federal market overview • How the government purchases goods and services • Federal contracting – business development programs• Leveraging the market – NCMBC services, tools • Getting started in the market• Finding opportunities and next steps

Welcome

Each year, the government awards hundreds of billions of dollars in federal contracts to businesses like yours to meet the needs of the military and federal agencies. The government’s goal is to award at a minimum 23 percent of those contracts to small businesses.

Welcome

To sell your products or services to the federal government, your business must meet specific requirements. Although the contracting process can seem complicated and overwhelming at first, the government provides information and tips to help you learn to compete as a federal contractor in North Carolina.

Agenda

• Welcome• North Carolina federal market overview• How the government purchases goods and services• Federal contracting – business development programs• Leveraging the market – NCMBC services, tools• Getting started in the market• Finding opportunities and next steps

Military Presence

• 3rd highest active duty military presence in US

• 6 major installations (5 DoD/1 DHS)

• 116 National Guard/40 Army Reserve facilities

• 139,000 active, Guard and Reserve personnel

• 18,000 annual transitions

Military ImpactTotal annual military impact, over $66 billion*• 12% of North Carolina GDP (second largest sector)• Over 540,000 jobs statewide military impacted • Military/civilian payroll: $19.2 billion**• Veteran payments: $2.4 billion**• Federal contracts:

o Prime contracts (FY2019): $7.18 billiono Subcontracts: additional billions

*”The Economic Impact of the Military on North Carolina,” NC Department of Commerce, 2013**”North Carolina Military Footprint,” NC Department of Commerce, 2008

Defense Business

• Prime contracts, DoD in NC: $4.66 billion (80 Counties):

• Prime contracts, federal in NC: $7.18 billion (98 Counties)

Federal Procurement

Positioning Your Business to Engage

• Need computer and internet access - the government does everything on line

• Best for firms with at least two years of sales, in business for two years • Record of experience and (good) past performance - commercial and

subcontracting past performance is acceptable • Must be competitive, as well as technically and financially capable • High competition – no easy sales, not a lifesaver for struggling

businesses, teaming often critical

ResearchIn order to bid on and win government contracts, you’ll need to know what products and services the government buys — and at what price. Spend time upfront to make sure there’s a market for your product(s) or service(s), determine how big the market is and find potential buyers.

Federal Procurement Data System (FPDS) The Federal Procurement Data System – Next Generation is the repository of all federal contracting data for contracts over $25,000. You can see which agencies have contracts and with who, what agencies buy, and which contractors have contracts.

Positioning Your Business to Engage

USAspending.govUSASpending.gov tracks government spending through the contracts it awards. This searchable database contains information for each federal contract. You can use this information to help identify government purchasing trends by county and state.

Federal agency procurement forecastsEach government agency releases a procurement forecast that includes contracting opportunities for small businesses. You can review these Agency Recurring Procurement Forecasts to find out if there are agencies that buy what you sell.

Positioning Your Business to Engage

Agenda

• Welcome• North Carolina federal market overview• How the government purchases goods and services• Federal contracting – business development programs• Leveraging the market – NCMBC services, tools• Getting started in the market• Finding opportunities and next steps

How the Government Purchases Goods and Services

“Who’s Who” and “What’s What” in federal acquisition• Users (with requirements)• Contracting Offices (acquire goods, services for users)• Federal acquisition regulations (and supplements)

“Prioritized sources”• Agency inventories• Other agency excess• Federal Prison Industries • Ability One • Wholesale supply sources (Defense Logistics Agency, DLA)• General Services administration, mandatory, then optional federal

supply schedules (GSA)

How the Government Purchases Goods and Services

“Prioritized sources” (continued)• Commercial sources including:

o Indefinite Delivery Indefinite Quantity contracts (IDIQ) o Multiply Award Construction Contract (MACC) (construction)o Multiple Award Task Order Contract (MATOC) (construction)o Single Award Task Order Contract (SATOC) o Sole Source Set Asideo Competitive

How the Government Purchases Goods and Services

How the Government Purchases Goods & Services

Rules depend on the “color of money” and value of the procurement• Non-appropriated funds: monies derived from sources other than Congressional

appropriations and commissary surcharge funds, primarily from the sale of goods and services to DoD military and civilian personnel and their family members that are used to support Morale, Welfare, and Recreation (MWR) programs.

• Appropriated funds: monies allocated by legislation passed by Congress and signed by the President. Appropriated Funds are usually specified in Congress's yearly budget or continuing resolution. Appropriated Funds may only be used for the purpose for which they were appropriated.

How the Government Purchases Goods & Services

Non-appropriated funds• Spent by MWR (Army), MCCS (Marines) to support troops• No need to register anywhere (but you should)• Rules and processes are simple

o If <$10,000, competition is not requiredo $10,000 to $150,000 must solicit two sourceso Purchases >$150,000 a minimum of three qualified sources.

• Market your business directly to the buyers

How the Government Purchases Goods & Services

Appropriated funds• Government seeks to give businesses a fair chance to compete• Government may use “best value” - may not be lowest price• Purchasing Laws are followed in accordance to:

o Code of Federal Regulation o Federal Acquisition Regulation (FAR)o Defense Federal Acquisition Regulation (DFAR), or…o Other Federal Agency Supplements

How the Government Purchases Goods & Services

Appropriated funds• Micro Purchases – Up to $10,000

o Buyer only has to solicit one sourceo Price must be reasonableo Usually paid by Government Purchase Card (GPC)o Many federal employees have GPC’s and make small

purchases everyday

How the Government Purchases Goods & Services

Appropriated funds

• Simplified Acquisition Threshold (SAT), up to $25,000

o Set–aside for small business (SB)

o SB dealer/distributor may offer product of any size manufacturer

o Handled by contracting officers

o Assigned by commodity

o 3 quotes from vendors they know and locate

o Award based on low best price/delivery requirements

How the Government Purchases Goods & Services

Appropriated funds• Simplified Acquisition Threshold (SAT), $25,000 - $250,000*

o Usually set aside for small business (SB)o Under SB set aside, dealer/distributor must sell product of

small business manufacturero May use ”Best Value,” not always the lowest priceo Solicitations posted on betaSAM.gov (MatchForce!) * Exceptions to the limit exist for CONUS/OCONUS contingency operations, disaster prevention/response/recovery

How the Government Purchases Goods & Services

Appropriated funds• Purchases over $250,000

o Subject to other federal business development programso Past Performance will be a factor in the decision processo May require a technical proposalo More formal process- must follow instructions in the

Request for Quote (RFQ) or Request for Proposal (RFP)

Agenda

• Welcome• North Carolina federal market overview• How the government purchases goods and services• Federal contracting – business development programs• Leveraging the market – NCMBC services, tools• Getting started in the market• Finding opportunities and next steps

• Federal Government has instituted business development programs to meet national policy goals

• Firms that qualify:o May receive contracts on a sole source basiso May only have to compete with similar firmso May get a price preference o Help the Government agency meet its goalso Help prime contractors meet their goals

Federal Contacting - Business Development Programs

Business development programs and federal government goals:

• Small Business Concerns - 23% of all contract value, with subsets:

o HUBZone Small Business Concerns - 3%

o Service-Disabled Veteran-Owned Small Businesses - 3%

o Small Disadvantaged Businesses - 5%

o Women-Owned Small Businesses - 5%

Source: https://www.sba.gov/sites/default/files/202005/FY20_Small_Business_Goaling_Guidelines_Draft_2020.pdf

Federal Contacting - Business Development Programs

Small Business Concerns• Firm must: be for-profit, independently operated, located in US,

not “nationally dominant,” and meet size standards for “small:” o Vary by North American Industry Classification System codeo May be based on # of employees, or average annual receipts over the last

3 complete fiscal years (or 5 years – optional to 1/6/2022)o Include the parent and/or affiliate companies

• Firm may be SB for one product/service, large for others

Federal Contacting - Business Development Programs

HUBZone Program

• Census tracts designated based on median income or unemployment

• Must be SBC, 51% US-owned, with principal office and 35% of

employees living in a HUBZone; apply to SBA for certification

• Eligible for sole source, set-asides, price preference (10% in full and

open competitions)

• Example: M--1FD. Operation of Dining Facilities

Federal Contacting - Business Development Programs

Service-Disabled Veteran-Owned Small Business Program

• Must be SBC, at least 51% owned, controlled and operated by service-disabled veteran(s)

• Owner(s) needs disability rating letter from VA• Self-certification, must be VA-verified for VA contracts under

Veterans First Contracting • Eligible for sole source contracts and set-asides• Example: Roof Inspection Service

Federal Contacting - Business Development Programs

Put VetBiz.gov screen shot here

Small Disadvantaged (SDB) and 8(a) Business Development Program

• SBC must be at least 51% owned & controlled by a socially andeconomically disadvantaged individual (8a-“potential for success”)

• “Socially” includes all minority groups; others may justify status

• 8(a) requires SBA certification; SDBs self-certify; size/control same

• 8(a) allows sole source/set asides; SDB for agency goals only

• Example 8(a) set-aside: Fort Bragg Refuse and Recycle Services

Federal Contacting - Business Development Programs

Women-Owned Small Business (WOSB) Programs• SBCs at least 51% owned, controlled, operated by woman(en)• Additional requirements for Economically Disadvantaged (EDWOSBs)• Certification: changes JUL 2020; still self-certify for non-set-asides; certify

for set-asides; certify by SBA , 3rd party, other federal agency (VA)*; decisions/certifications begin 15 OCT

• Contracts in 444 NAICS codes (sectors WOSBs were disadvantaged) qualify for set-aside/sole source in the “WOSB Federal Contracting Program,” including 80 NAICS for EDWOSBs only

• Example: Lodging in Kind Cary, North Carolina* SBA may require supplemental information

Federal Contacting - Business Development Programs

All-Small Mentor-Protégé Program

• Approved mentor-proteges can form joint ventures (JV)

• JVs can compete for small business set-asides, including WOSB, VOSB and HUBZone contracts

Natural Resource Sales Assistance Program

• Set-asides allow SBCs to compete in purchasing national resources

• Rules depend on type of natural resources

Federal Contacting - Business Development Programs

Subcontracting Opportunities• Federal subcontracts = commercial contracts between two firms• Subcontracting plan required for awards to other SBC primes when:

• Contract value exceeds $750,000 ($1.5 million for construction)• SBCs can execute at fair market value, without disrupting performance

• Large primes have goals for SBCs, HUBZone, SDVOSB, SDB, WOSBs• May be the best market for new contractors, initially• Access sub opportunities via NCMBC events,

www.ncmbc.us, www.MatchForce.org, SBA Subnet

Federal Contacting - Business Development Programs

Agenda

• Welcome• North Carolina federal market overview• How the government purchases goods and services• Federal contracting – business development programs• Leveraging the market – NCMBC services, tools• Getting started in the market• Finding opportunities and next steps

Who We Are

• The NCMBC is a statewide, business development and technology transition asset of the NC Community College System, headquartered at Fayetteville Tech

• Totally State-funded, the NCMBC is the only statewide, military-focused economic development entity in the US, and the only NC agency solely focused on growing the defense economy through existing industry

Mission, Goals and OutcomesMission: To leverage military and federal business opportunities to expand the economy, grow jobs and improve quality of lifeGoals and Operations1 - Increase federal revenues for businesses 2 - Support integration of military into workforce3 - Support defense-related business recruitment4 – Support technology transition to federal agenciesOutcomes: Contracts (3,451), revenues ($13.2b), jobs!

NCMBC: Operations

Operations: Business Development

Operations: Technology Transition (NC DEFTECH)

Future Opportunities Current Opportunities EventsMarket Intelligence Solicitation Support TrainingPre-positioning Proposal Support Counseling Teaming Subcontracting Contract Execution

Operations: Business Development

• Multi-functional, pre- and post-award BD team (13 offices) • Create awareness, recruit & engage NC firms in market• Pre-position for future opps, develop subcontract opps• Identify current prime & sub opportunities, notify firms• Assist with solicitations, quotes, proposals, help win:

CY2005 - 2019 3,451 contracts Min value: $13.2 billion

Operations: Business Development

Operations: MatchForce.org

• Matches businesses to federal opportunities• Matches contracting staff & GPC holders to NC businesses • Matches prime contractors to NC subcontractors• Matches businesses to future opportunities (forecast data)• Businesses won >$2.73 billion, 2006-19 contracts• Currently on MatchForce.org:

22,893 NC Businesses 30,075 Contract Opportunities

Operations: Tech Transition (DEFTECH)

• NCMBC launched Defense Technology Transition Office in 2016

• Scouts for businesses developing tech with military application

• Provides info to industry on emerging military requirements, processes and procedures

• Assists NC businesses to navigate federal agencies

• Conducts emerging technology forums and symposia

Operations: 2020-2021 Events

• SE Region Federal Construction, Infrastructure Summit (Virtual, OCT 21-22)

• Southeast Region Cyber Security Symposium (TBD, DUR)

• Southeast Region Federal and Defense Textile Summit (MAY, CHAR)

• Medical, Biomedical and Biodefense Symposium (JUN, Chapel Hill)

• 19th Annual North Carolina Defense Trade Show (AUG, FAY)

Agenda

• Welcome• North Carolina federal market overview• How the government purchases goods and services• Federal contracting – business development programs• Leveraging the market – NCMBC services, tools• Getting started in the market• Finding opportunities and next steps

Getting Started in the Market

Credit card capacity:• Accept credit cards for purchases up to $10,000• Market at trade shows, advertise locally• Register on www.MatchForce.orgBeyond credit card capacity:• Follow “Getting Ready to Sell” checklist (on www.ncmbc.us)

• Get in MatchForce.org!• Identify your business and capabilities (EIN, DUNS, NAICS)• Identify your products/services (FSC/PSC)• Determine if your firm is a SBC and if it qualifies for small

business development programs• Register in SAM.gov (System for Award Management)

Getting Started in the Market

Identify your business and capabilities• Obtain an Employer ID Number (EIN/TIN) from the IRS• Obtain Dunn & Bradstreet (DUNS) number (free for federal vendors) • Identify all NAICS codes that may apply to your products/services

o Wholesaler, dealer, distributor, manufacturero NAICS Lookup on Census website

NOTE: (Note: DUNS numbers will be replaced by Unique Entity Identifiers (UEI) numbers)

Getting Started in the Market

Identify your products and services• Identify your Federal Supply Class Codes (2 Digit)• Identify your Product Service Codes (Single letter)• Product Service Code Manual, MAR 2020 (4 alphanumerics)

o Products: digit in first positiono Services, R&D: letter in first position

Getting Started in the Market

Determine if your business is a small business concern • Size standards vary by NAICS code• Businesses may be a SBC for one and not small for other NAICs• Include parent and/or affiliate companies• Most businesses will qualify as SBCs:

• manufacturing businesses with <500 employees • non-manufacturing businesses with average annual receipts for

last three full FYs under $7.5 million• SBA table of small business size standards

Getting Started in the Market

Register in System for Award Management (SAM.gov)• SAM.gov is an official, free website of the U.S. government

o Register to do business with the U.S. governmento Check status, update or renew an entity registrationo Search for entity registration and exclusion records

• Registration in SAM.gov is mandatory before award of a contract• Complete the “SBA Supplemental Pages” to transfer entity data into the

SBA Dynamic Small Business Search (DSBS) database• Results in assignment of CAGE Code, allows electronic payment

Getting Started in the Market

Agenda

• Welcome• North Carolina federal market overview• How the government purchases goods and services• Federal contracting – business development programs• Leveraging the market – NCMBC services, tools• Getting started in the market• Finding opportunities and next steps

Finding Opportunities and Next Steps

Sources Sought Notice• a contacting professional’s market research tool • determine if there are two or more capable SBCs that can perform

the required work • assess the market’s capability• determine acquisition strategy• determine small business set asidePotable Water Services at MOTSU

Pre-Solicitation Notice• provides “heads up” for solicitation release• announces WHEN and WHERE solicitation will be

posted • Interested vendors should “FOLLOW” the

opportunity – click on beta.SAM noticeUSDA Forest Service, NFsNC, Tusquitee Ranger District, located in Cherokee County NC, has a need for Janitorial Services and Garbage Pick-up at several different recreation sites

Finding Opportunities and Next Steps

Combined Synopsis/Solicitation• acquiring commercial items or supplies or services • separate solicitation is not required. • must include enough info to permit suppliers to develop

quotations or offers

79--Aircraft Disinfectant

Finding Opportunities and Next Steps

Sole Source• Non-competitive procurement • allow a single business/supplier to meet the requirements • acquisitions requirements, FAR parts 6 and 13

H--Intent to Award sole source

Finding Opportunities and Next Steps

Solicitation• ensure that all qualified businesses have opportunity to compete• includes

• preparing the solicitation• publicizing the planned procurement• amending the solicitation• communicating with businesses• receiving offers

Atlantic Intracoastal Waterway Snows Cut Erosion Repair

Finding Opportunities and Next Steps

Modification/Amendment• An addition to, deletion from, correction or modification of

an existing proposal

• Amendments (“contract addendums” or “revised contracts”) may be issued days, weeks, sometimes months after the initial bid is issued.

Payload Integration into Deep Submergence Systems, hardware and services

Finding Opportunities and Next Steps

Special Notice• May announce changes to an acquisition requirement• May announce events, special activities• May announce intent to sole source

Purchase of various HC-27J aircraft spare parts

Finding Opportunities and Next Steps

Award Notice¨ Announces awardee¨ Announces contract valueFCC BUTNER FY-2018 1ST QTR MEAT

Finding Opportunities and Next Steps

What you need to do:• Become web-enabled to find contracts• Learn the basic rules of contracting• Learn to describe your business and your products/services (DUNS,

NAICS, CAGE, FSC and PSC codes)• Develop marketing materials and capabilities statements: in

“government speak”• Follow the checklist on www.ncmbc.us! • Register: www.MatchForce.org, www.SAM.gov

Finding Opportunities and Next Steps

What you need to do:

• Certify with SBA (HUBZone, 8(a)); verify SDVOSB through vetbiz.gov)

• Monitor Opportunities: beta.SAM.gov, MatchForce.org, etc.

• Respond to opportunities, including Sources Sought Notices

• Network with prime contractors for subcontract opportunities

• Leverage resources – Join network/connecting organizations (DANC), use NCMBC/PTAC/SBA/SBC and attend EVENTS!

Finding Opportunities and Next Steps

Contact Information - NCMBC

• Scott Dorney, Executive Director, (910) 678-0190, dorneys@ncmbc.us

• Mark Mills, Business Development Manager, 828-446-7193, millsm@ncmbc.us

• Business Development Team, Statewide, visit ncmbc.us, Contact Us page

• Tim Malone, MatchForce Manager, (910) 678-0191, malonet@ncmbc.us