selling to the federal government man-li lin business development specialist us small business...
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Selling to the Federal Government
Man-Li LinBusiness Development Specialist
US Small Business AdministrationNew York District Office
Tel: 212-264-7060E-mail: [email protected]
First Thing To Do
Obtain a Data Universal Number System (DUNS) Number
Call D&B at 1-866-705-5711 to obtain a free DUNS number for federal CCR registration. The process takes about 10 minutes. Or, you can register online at:
http://fedgov.dnb.com/webform/
Next, Get Registered
Central Contractor Registration (CCR) http://www.ccr.gov
Dynamic Small Business Search Registration http://dsbs.sba.gov/dsbs/
***please keep the ID/password codes given. You need to visit/update the profile at least once every 6 months.
Marketing to the Federal Government
Your government customers need to know three things:
1. That you exist and want their business 2. That your products or services can help
them cost-effectively achieve their objectives or are better in some way than what they are currently using
3. How to buy from you
Government buyers are looking for:
High quality products, Reliable suppliers, and Fair prices
Vendors that help them meet their purchasing goals for small/women-owned businesses, and other targeted categories
More than one potential supplier Simplicity
Eight Ways to Market to the Federal Government
1. Call potential buyers within federal agencies
2. Network: buyers, other vendors, and potential partners
3. Get help from the experts
4. Use government-wide purchasing vehicles: Federal Services Administration (GSA) Multiple Award Schedule (MAS)
Eight Ways to Market to the Federal Government
5. Look for subcontracting opportunities
6. Use direct mail or e-mail
7. Target government field offices
8. Be prepared to do business the way government does
Federal Government Procurement Methods
Micro-purchases- $3,000 Sealed Bidding Requests for Proposal Sole-source Contracts Multiple Award Contracts
Subcontracting Over $500,000 ($1 million for construction) Teaming Agreement
1.Select an attorney with experience
2. Make sure you have an advance confidentially agreement in place before entering any negotiations
3. Include provisions in the teaming agreement that make it enforceable
Subcontracting (2)
4. Make sure the teaming agreement is more than just an “agreement to agree”
5. Include provisions that specify under what circumstances the teaming agreement may be terminated
6. Choose partners that have genuine interest in you. Verify there is executive-level commitment and the corporate cultures are compatible
Self-CertificationsSmall Business – NAICS CodesWomen-owned Small Business (WOSB)Veteran-owned Small Business (VOSB)Service-Disabled Veteran-owned Small
Business (SDVOSB)
Formal Certification Programs8(a) Business Development HUBZone Empowerment Contracting Small Disadvantaged Business (SDB)
Know the FederalContract Certifications
Self-certification as a Small Business
1. visit www.census.gov/NAICS or www.sba.gov/size to know your NAICS code and corresponding size standard
2. The average Federal Tax Returns for the last 3 years must not exceed the size standard of your NAICS code (sole proprietorship: 1040 FTR with all the schedules, especially Schedule C)
3. Veteran /disabled veteran please request from the VA the document attesting to the fact
Now you have the facts/evidences to support your claim that you are a bona fide small business
Formal Certifications
Require pre-approval by the government– 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program eligible to receive competitive and ‘sole source’ awards.
– HUBZone - Small businesses located in areas identified as historically underutilized business zones, and with 35% of employees coming from HUBZones, eligible to receive competitive and ‘sole source’ awards.
– SDB - Three-year certification for small, socially and economically disadvantaged firms eligible to receive prime and subcontract preferences.
8(a) & SDB
SBA 8(a) program Applies to all purchases Must be certified by the SBA ‘Sole source’ and
competitive program 9-year term - no renewals All 8(a) firms are SDBs Award must be made at fair
market price FAR 19.8
SDB certification program Applies over $100,000 Must be certified by the SBA Competitive program 3-year term with renewals Not all SDBs are in 8(a)
program 10 % price evaluation credit FAR 19.11 and 19.12
SBA 8(a) Program Certification
Need to register and profile at www.ccr.gov
ONLINE application http://www.sba.gov/8abd PAPER application: 1. Get the forms:
http://www.sba.gov Click TOOL Click FORMS
2. NY, NJ companies sent to:
Philadelphia DPCE, Parkview Towers,
1150 1st Ave, 10th Floor, Suite 1001
King of Prussia, PA 19406
SBA 8(a) Program Certification
Financial assistance Forms-
1. From 413 (personal financial Statement)
2. Form 1624 (Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion…)
3. Form 912(Statement of Personal History)
8(a) Business Development Forms-
Form 1010B(8(a) Business development Program Application
IRS Forms- Form 4506 (Request for
Transcript of Tax Return)
HUBZone Program HUBZone Program Applies to purchases over $3000; Must be certified by SBA - no term limits; Annual self-certification required after initial approval; Competitive and ‘sole source’ program benefits; Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a);
Sole source: Up to $5.5 M (mfg) and Up to $3.5M (non-mfg) 10% price evaluation preference Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13
HUBZone Program Certification
Apply ONLINE only http://www.sba.gov/hubzone http://www.tinyurl.com/y8pyscz
Service Disabled Veteran Owned Small Businesses
Set-Aside– Buys over $3000– “Rule of Two”– No upward $ limit– Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a)
Sole Source– Buys over $100,000– Only 1 Source– Up to $5.5 M (mfg)– Up to $3.0M (non-mfg)– Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a)
SDVOSBs
Additional Points to Remember: VA determines Service Disability – business size is self-determined; No term limits – no need to apply or reapply; Competitive and sole-source program benefits; Subcontracting and Prime Contracting goals; FAR 19.14
Know the Rules
Federal Acquisition Regulations (FAR) www.arnet.gov/far
Subpart 8.4 – Federal Supply Schedules
Part 13 – Simplified Acquisitions
Part 14 – Sealed Bidding
Part 15 – Contracting by Negotiation
Finding Prime Contract Opportunities
Research Past Purchases‒ Federal Procurement Data System – Next Generation https://www.FPDS.gov
Register, Read “First Time Using Reports”, Obtain standard, special, or customized award data.
Identify Current Opportunities‒ Federal Business Opportunities www.fedbizopps.gov
Identify your product and/or service codes & search.
Obtain Agency Forecasts from sites likehttp://www.womenbiz.gov/forecasts.html
FedBizOppsIdentify Opportunities – Follow the MoneyIdentify Opportunities – Follow the Money
www.fbo.gov
FedBizOpps NoticesFBO Vendor Notification FBO Vendor Notification Service: :
http://www1.fbo.gov/EPSVendorRegistration.htmlVendor The Notification Service sends emails to alert you to new solicitations & modifications, General procurement announcements. It gives first-hand notice of opportunities & links to actual postings, so that you can request the ones you want.Register to receive: all notices from solicitation number; notices from selected organizations and product service classifications; all procurement notices.
FedBizOpps Sign-up
1. Select 1. Select Procurement Procurement
Code, NAICS Code, NAICS
and/orand/or
Buying ActivityBuying Activity
The following postings have been made on FBO:DLALogistics Operations Defense Distribution Center49 -- ICE MACHINE MAINTENANCE AT DEFENSE DISTRIBUTION DEPOTSynopsishttp://www.fbo.gov/spg/DLA/J3/DDC/SP3100%2D06%2D0061/listing.html
2. Receive
daily links
to buys
Finding Subcontracting Opportunities
Subcontracting Opportunities Directory of Large Prime Contractors
http://www.sba.gov/GC/indexcontacts-sbsd.html
SUB-Nethttp://web.sba.gov/subnet
FedBizOpps/FBO - Find Business Opportunities, Search for: Awards
Joint Ventures & Teams Investigate Joint Venture/Teaming
Arrangements‒ Excluded from affiliation – 13 CFR 121.103(f)(3)‒ “bundled” requirement‒ other than a “bundled” requirement
Consider Mentor-Protégé Programs– SBA – limited to 8(a) firms;– DOD, US Navy, Air Force, FAA, Dept of State, Dept
of Energy, & more – check individual small business programs for details.
Market Your Firm
One on One - Present your capabilities directly to the federal activities and large prime contractors that buy your products and services
Attend procurement conferences and business expos
Attend Business Matchmaking events
Add details to DSBS your Dynamic Small Business Search profile (e.g., GSA schedule number, commercial customers, federal customers, special capabilities).
View Solicitations
Request or download a bid package Obtain copies of relevant specifications
& drawings Understand relevant purchasing regulations Federal Acquisition Regulations:
Micro-purchases (under $3,000)
Simplified Acquisitions (under $100,000)
Bids & Proposals (over $100,000)
Contract clauses
Prepare Your Offer
3 Rules for a solicitation:
-Read it…Read it…Read it!!! Request a Procurement History Attend Pre-Bid Meetings
& Walk-Throughs Get clarification of ambiguities Proofread your proposal Submit it on time!
Contract Award
Are you Responsive?
Are you Responsible?‒ Pre-Award Survey: Technical capability & production capability‒ QA‒ Financial: accounts receivable, net worth, cash flow‒ Accounting System‒ System for Qualifying Suppliers‒ Packaging, Marking, Shipping
Contingency Plans Have a back up plan if something goes
wrong Give yourself enough time to react Anticipating Final Inspection Make an appointment before shipping date On-Time delivery Establish a good track record
Contract Performance
Getting Paid Promptly
Within 30days The designated agency office actually
receives a complete invoice conforming to the terms of the contract.
- purchase order/contract number, a description of the goods and services, a requisition number, and Electronic Funds Transfer (EFT) information
Know the paperwork process Keep good records Know your options
‒ Progress payments
‒ Prompt Payment Act
EFT (electronic funds transfer) Accept government credit cards
Getting Paid
Seek Additional Assistance
Procurement Technical Assistance Center (PTACs) www.dla.mil/db/procurem.htm
Small Business Specialists www.acq.osd.mil/sadbu/doing_business/index.htm
Procurement Center Representatives (PCRs) www.sba.gov/gc/contacts.html
Commercial Marketing Representatives (CMRs) www.sba.gov/gc/contacts.html
Find online business counseling and training at:http://www.sba.gov/training/index.html
E-Business Institute
ORCA Initiative
ORCA, is an E-Gov Integrated Acquisition Environment (IAE) initiative, that
reduces the administrative burden for contractors submitting the same information to various contracting offices and establish a
common source for this information for procurement offices
across the government.
http://orca.bpn.gov
Helpful Web Sites
DOD Office of Small Business Programs
http://www.acq.osd.mil/osbp/ Procurement and Technical Assistance
Centers http://www.aptac-us.org/new/ Small Business Development Centers http://www.sba.gov/sbdc/
More Helpful Web Sites
SBA’s Home Page: www.sba.gov
Government Contracting: www.sba.gov/GC
Site includes links to all major government contracting programs discussed here plus much, much more.
Find a Procurement Center Representative www.sba.gov/GC/pcr.html
Key Steps to Procurement Success
1. Know your market
2. Research targeted agency budgets
3. Know where to get practical help
4. Take care of the basics
5. Register everywhere you can
6. Develop personal relationships
7. Start Small