The document provides an overview of how to target and win federal contracts as a small business. It notes that the federal government procures $500 billion annually, with 39% or $195 billion set aside for small businesses. It outlines the process for small businesses to get started, including obtaining a DUNS number and registering in the Central Contractor Registration database. It also provides tips on finding contracting opportunities, understanding how the government buys goods and services, and positioning a small business to be competitive for federal contracts.
4. The Federal Government
• Procures $500,000,000,000 / yr
– 30% Products / 70% Services
– By law must pay in <30 days (often pays in 10-14)
– “Use it or lose it mentality” still applies
– Federal Acquisition Regulation (FAR) stipulates all solicitations <$100k where
research shows that two or more small businesses are capable of performing the
work, be set aside exclusively for small businesses to compete
• 39% ($195 B) Small Business Set Aside Goals
– 20% Small Business
– 6% SDB and 8(a)
– 5% woman owned
– 3% HUBZone (Historically Underutilized Business Zone)
– 3% service disabled veteran owned
– 2% veteran owned
• >1,100 Federal Agencies
5. Small Business Defined
• Depends on the type of business you are in
• NAICS Codes
• Based on # of Employees or annual Revenue
– Flooring Manufacturers - <500 employees
• 500 employees is limit for ~75% of manufacturers
– Flooring Contractors - <$14MM/yr
– Wholesalers - <100 employees
– Marketing consulting, Ad agencies, PR firms etc. - <$7MM/yr
(3 yr average)
6. Getting Started
D-U-N-S Number
Universal 9-digit business identifier
Obtain thru www.ccr.gov free
Central Contractor Registration
Small Business Designations &/0r Registration (if
req’d)
Online Representation and Certifications Application
(ORCA)
7.
8.
9.
10. Getting Support
Small Business Administration
Office of Small & Disadvantaged Business Utilization
(OSDBU)
Each agency has an OSDBU, which is there specifically to help
you.
Forecast of Procurement Opportunities
Procurement Technical Assistance Centers
Minority Business Development Agencies
And many more…….
11.
12.
13. Fiscal Year 2009 Goals As of 10/3/08
Department of the Interior
BUSINESS ECONOMIC DEVELOPMENT PROGRAMS
TOTAL DOLLARS $2,574,292,893 $2,687,126,635 $2,456,713,076 FY'09
SUGGESTED
* FY'06 Pct. * FY'07 Pct. FY'08 Pct. Average Pct. GOALS
Small Business Goal : 56.10% 56.10% 55.49% 55.90% 55.00%
Actual : 54.10% 58.80% 55.34% 56.08%
Small Disadvantaged Business Goal : 10.80% 19.00% 5.00% 11.60% 5.00%
Actual : 17.40% 21.30% 19.96% 19.55%
8(a) Program Goal : 8.30% 8.30% 2.50% 6.37% 2.50%
Actual : 12.10% 13.40% 12.48% 12.66%
HUBZone Goal : 6.00% 6.00% 3.00% 5.00% 3.00%
Actual : 9.90% 11.30% 10.36% 10.52%
Women Owned Business Goal : 6.70% 6.70% 5.00% 6.13% 5.00%
Actual : 9.30% 10.50% 10.70% 10.17%
Service Disabled Veteran Own Sm/Bus. Goal : 3.00% 3.00% 3.00% 3.00% 3.00%
Actual : 1.30% 1.40% 2.58% 1.76%
* FY'06 & 07 data was reproduced on September 10, 2008.
(This was a result of the corrections made because of incorrect coding of size determination.)
Percentages in RED indicates a goal not met.
14. Finding Opportunities
25% of Small Business Set-asides had no bidders
25% of Small Business Set-asides had one bidder
15.
16.
17.
18. FBO search example - Small Business set asides
541430 - Graphical 541850 – Display
Design Services Advertising
541630 – Marketing 541860 – Direct Mail
Consulting Advertising
541618 – Other 541870 – Advertising
Management Consulting Materials Distribution
541810 – Advertising 541890 Other services
Agencies related to advertising
541820 – PR Agencies 541910 – Mkt Rsch &
541830 – Media buying Public Opinion Polling
Agencies 541920 – Commercial
Photography
19.
20.
21. A Word About GSA Schedules
GSA = Purchasing Agent
Available for use by every federal agency and some states
Purchased $35.8 B in ‘07 and increasing
Somewhat cumbersome and time consuming to pursue
Estimated 200 hours and 12-18 month process
Pre-approved, negotiated pricing
Meets all gov’t competitive requirements
Favors small businesses
Often minimizes the # of competitors
Can be contracted directly with Schedule holder if <$100k w/o further
competition
Must compete to 3 schedule holders if >$100k
22.
23. How the Federal Gov’t Buys
“Use it or lose it” still exists
Understand Fiscal Year seasonality in purchasing behavior
Micro-Purchases
<$3k
No competition required
Simplified Acquisitions
<$100k
Can be competed among at least 3 sources
Small Businesses preferred
If less than $25k usually not posted
24. How the Federal Gov’t Buys
Sole Sourced
Sealed Bidding (aka “Invitation for Bid)
Low bid wins, firm fixed price
Negotiated Procurement
“Best Value” – cost/technical tradeoff
ID/IQ Contracts
Multiple Award Contracts
GSA schedule for example
25. Solicitations
Combined synopsis/solicitation
Invitation for Bid (IFB)
Request for Proposal (RFP)
Request for Quote (RFQ)
Key oppty to use Quals to promote “best value” not just cost
Sources Sought
Agency seeking info about industry capabilities to determine set-
asdies
sole source opportunity
Request for Information (RFI)
Seeking info before putting out solicitation
Opportunity to “shape the bid” to your advantage
26. Decide How to Engage
Prime Contractor
Large Primes are required to achieve Small Business Goals
Many GC’s have people dedicated to ensuring they meet the goals
Subcontractor
Don’t necessarily have to have their CCR, but having one helps
separate you from other subs who don’t
Utilizing your small business status is very helpful to the GC’s as they
can include this info in their bids
Individual Re-seller
Brokers a deal as a “small business” seeking and sourcing products
and services provided by others who would not qualify as a small
business.
Perfect for the entrepreneur. Anyone can become a Re-seller.
27. Positioning your company
Market your smallness
Create a Capability Statement
Basic company overview
NAICS codes
Unique Selling Proposition
Reference List - Projects
List DUNS and CAGE #’s
Small Business Status
GSA Contract Number and GSA logo if applicable
Develop relationships:
Contracting Officer
Program Manager
General Contractors / Prime Contractors
Develop a government specific web site or landing page:
Averagejoesgovernmentbusiness.com