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The SBTDC is a business advisory service of The North Carolina University System
       operated in partnership with the U.S. Small Business Administration.



                sbtdc.org | info@sbtdc.org
Small Business and Technology
   Development Center (SBTDC)

Procurement Technical Assistance Center (PTAC)
 Doing Business with the Federal, State & Local
           Government and Military
                LaNell Grissom
                 910-672-1727
             lgrissom@sbtdc.org
Agenda
              Please turn all cell phones to vibrate
                Please feel free to ask questions

•   SBTDC and PTAC Services
•   Federal Government Contracting
•   State Government Contracting
•   Teaming on Government Contracts
•   Final Thoughts
About the Small Business and
   Technology Development Center (SBTDC)
• Established in 1984:
   – initiated by the US Small Business Act
   – funding through US Small Business Administration (SBA) and
     matching funds from the University of North Carolina System
• SBTDC Mission:
   – Support the growth and development of North Carolina’s economy by:
      • encouraging entrepreneurship
      • assisting in the creation and expansion of small to medium-sized
        enterprises
      • facilitating technology development and commercialization
      • supporting economic development organizations
SBTDC Services
• Confidential one-one-one counseling:
   –   General Business Services
   –   Technology Development and Commercialization
   –   Export Financing Assistance
   –   Boating Industry Services
   –   Market & Research Services
   –   Strategy and Organization Development Services
   –   Government Procurement Assistance
        • Procurement Technical Assistance Center
                            www.sbtdc.org
About the Procurement Technical
             Assistance Center (PTAC)
• National program established in 1985:
   – Authorized by Congress
   – Funded by the Department of Defense and administered through the
     Defense Logistics Agency (DLA)
   – Provides matching funds through cooperative agreements with state
     and local governments and non-profit organizations
• PTAC Program:
   – Provides a wide range of services including classes and seminars,
     individual counseling, and easy access to information necessary to
     successfully compete for government contracts
PTAC Services
• Assistance selling to federal, state and local government
  entities
   –   Completing mandatory and beneficial registrations
   –   Identifying preference eligibility and applicable certifications
   –   Researching contract award history
   –   Locating specifications and standards
   –   Identifying contracting opportunities
   –   Understanding solicitations requirements and terminology
   –   Reviewing bids and proposals
                            www.sbtdc.org/ptac
SBTDC and PTAC Statewide Offices




Asheville, Boone, Chapel Hill, Charlotte, Cullowhee, Durham, Elizabeth
City, Fayetteville, Greensboro, Greenville, Hickory, Pembroke, Raleigh,
                     Wilmington, and Winston-Salem
Diving In…
Before Selling to the Government

•   Internet access and computer knowledge
•   Potential to sell to the government
•   Determination to sell to the government
•   Knowledge of competition and how they succeed
•   Perseverance

                  Contact a PTAC Counselor!
Is the Government Market for You?
• What a government contract can do for your business
   – Diversify your customer base
   – Cover overhead costs
   – Even out cash Flow
• What a government contract cannot do for your business
   – Jump-start your business
   – Save your business
   – Be the sole customer of your business
Federal Government Contracting Overview
Potential Federal Customers
•   Military Bases
•   General Services Administration (GSA)
•   Department of Veteran’s Affairs (VA)
•   Defense Logistics Agency (DLA)
•   Department of Homeland Security (DHS)
•   United States Department of Agriculture (USDA)
Steps in Federal Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
            • Responding to Opportunities
Federal Registration Acronyms
•   NAICS – North American Industry Classification System
•   FSC – Federal Supply Classification
•   PSC – Product Service Code
•   TIN – Tax Identification Number
•   DUNS – Data Universal Numbering System
•   CCR – Central Contractor Registration
•   DSBS – Dynamic Small Business Search
•   ORCA – Online Representations and Certifications
•   WAWF – Wide Area Workflow
Federal Registration Preparation
• Identify your NAICS codes –
  http://www.census.gov/eos/www/naics
• Identify your FSC and PSC codes –
  http://www.outreachsystems.com/resources/tables/pscs
• Obtain Tax ID Number (TIN) –
  1-800-829-1040 or www.irs.gov/businesses
   – Even if Sole Proprietor
• Obtain DUNS Number –
  1-866-705-5711 or http://fedgov.dnb.com/webform
   – Required for Central Contractor Registration (CCR)
Central Contractor Registration
• Required to do business with the federal government
• Marketing Partner ID Number (MPIN) created during
  registration
• Commercial and Government Entity Code (CAGE code)
  assigned when registration complete
• Includes SBA Firm Profile (Dynamic Small
  Business Search)
                        www.ccr.gov
CCR Inputs

• General Information            • Points of Contact
   – DUNS, TIN, addresses,          – CCR, Electronic, and
     size information                 Government contacts
• Corporate Information          • Proceedings
   – Business type and factors      – Series of Yes/No questions
• Goods and Services             • Compensation
   – NAICS, PSC, FSC                – Series of Yes/No questions
• Financial Information          • IRS Consent
   – Account number, financial      – Electronic signature using
     institution contacts             MPIN
SBA Firm Profile
             Dynamic Small Business Search
•   Access through CCR once registration is complete
•   DSBS number (SBA customer number) assigned
•   Includes company information from CCR
•   Allows firms to include supplemental information
    –   Non-government certifications
    –   Capabilities narrative and keywords
    –   Quality assurance standards
    –   Export profile
    –   Performance history
Online Representations
            and Certifications Application
• Replaces paper Reps and Certs process
• Required to bid on most federal contracts
• May be completed only after CCR is active
• Vendors login using DUNS and MPIN and complete
  questionnaire based on the FAR required reps and certs
• Annual recertification required
                       https://orca.bpn.gov/
Wide Area Workflow
• Web-based system for electronic invoicing, receipt,
  acceptance, and inspection
• Required to be paid as a contractor on Department of
  Defense contracts
• Also supports shipment of Government Furnished Property
  (GFP)
• Vendor training available online and in classrooms
                       https://wawf.eb.mil
Steps in Federal Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
Federal Small Business Size Standards
• Based on industry (NAICS code)
• Determined by average number of employees or average
  annual receipts
• Examples:
   –   Commercial Construction (236220) – $33.5 million
   –   Warehousing and Storage (493110) – $25.5 million
   –   Engineering Services (541330) – $4.5 million
   –   Office Furniture Manufacturing (337211) – 500 employees
   –   Auto Parts Wholesalers (423120) – 100 employees
  www.sba.gov/sites/default/files/Size_Standards_Table.pdf
Federal Small Business
             Programs and Certifications
•   Small Business Certification
•   Small Disadvantaged Business Certification
•   8(a) Business Development Program
•   HUBZone Empowerment Contracting Program
•   Women Owned Small Business Program
•   Veteran Owned Small Business Program
                    www.sba.gov/contracting
Small Business Certification and
  Small Disadvantaged Business Certification
• Small Business Certification
   – Firms may Self certify through CCR and ORCA
   – Must meet small business size standard for NAICS code
   – May be small in some NAICS codes, and not others
• Small Disadvantaged Business Certification
   – Firms may Self Certify through CCR and ORCA
   – Must be small in primary industry and be owned and controlled by
     socially and economically disadvantaged individual(s)
   – Formal SBA certification program discontinued October 2008
8(a) Business Development Program
• Business assistance program administered by the SBA for
  small disadvantaged businesses
• The applicant firm must:
   – Be 51% owned and controlled by one or more socially and
     economically disadvantaged individuals
   – Be a small business in primary industry
   – Demonstrate good character and reasonable potential for success
   – Have been in business at least two years
• Nine year program with development and transition stages
• Set-aside and sole source opportunities for participants
HUBZone Empowerment
                   Contracting Program
• Program administered by the SBA to encourage development
  in historically underutilized business zones
• The applicant firm must
   –   Be 51% owned and controlled by US Citizens
   –   Be a small business in primary industry
   –   Have a principal office located in a HUBZone
   –   Have at least 35% of employees that reside in a HUBZone
• HUBZones determined by US Census data
• Set-aside and sole-source opportunities
• Price evaluation preference in full and open competitions
Women Owned Small Business Program
• Program to ensure federal contracting opportunities for
  women owned small businesses
• Eligible firms must:
   – Be 51% owned and controlled by one or more women
   – Be a small business in primary industry
   – Be primarily managed by one or more women
• New rule effective February 4, 2011 allows for:
   – WOSBs to self certify or to be third party certified
   – The SBA to perform evaluations to confirm WOSB eligibility
   – Contracting officers to set-aside opportunities within 83 industries
     where WOSBs are underrepresented
Veteran and Service-Disabled Veteran Owned
          Small Business Programs
• Programs to ensure federal contracting opportunities for
  veteran and service-disabled veteran owned small
  businesses
• Eligible firms must:
   – Be 51% owned and controlled by one or more Veterans or SDVs
   – Be a small business in primary industry
   – Be primarily managed by one or more or Veterans or SDVs
• Firms may self certify or seek verification through the VA
• Government wide set-aside opportunities for SDVOSBs
• The VA has authority to give preference to and set-aside
  opportunities for both SDVOSBs and VOSBs
Federal Small Business Contracting Goals
• Government wide statutory goals:
   –   23% of prime contracts to small businesses
   –   5% of prime and subcontracts to SDBs
   –   5% of prime and subcontracts to WOSBs
   –   3% of prime and subcontracts to SDVOSBs
   –   3% of prime and subcontracts to HUBZone businesses
• Agency goals negotiated and monitored by the SBA
• Small Business Procurement Scorecards published annually
        www.sba.gov/content/about-goaling-and-program-information
2009 Federal Small Business
                Procurement Scorecards
•   Agency for International Dev: F      •   Dept of Transportation: A
•   Dept of Agriculture: A               •   Dept of the Treasury: B
•   Dept of Commerce: C                  •   Dept of Veteran Affairs: A
•   Dept of Defense: B                   •   Environmental Protection Agency: A
•   Dept of Education: A                 •   General Services Administration: C
•   Dept of Energy: A                    •   Nat’l Aeronautics & Space Admin: C
•   Dept of Health & Human Services: C   •   Nat’l Science Foundation: F
•   Dept of Homeland Security: A         •   Nuclear Regulatory Commission: B
•   Dept of Housing and Urban Dev.: C    •   Office of Personnel Mgmt F
•   Dept of the Interior: A              •   Small Business Admin: A
•   Dept of Justice: D                   •   Social Security Admin: B
•   Dept of Labor: A
•   Dept of State: B                     •   Government Wide: B
Steps in Federal Contracting

• Registration
   • Small Business Programs
      • Research and Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
Federal Rules and Regulations Research
• Federal Acquisition Regulation (FAR)
  www.acquisition.gov/Far/
   – Codification of uniform policies for acquisition of supplies and
     services by the executive agencies
• Code of Federal Regulations (CFR)
  http://www.gpoaccess.gov/cfr/
   – Codification of the general and permanent rules published in the
      Federal Register by the executive departments and agencies
• United States Code (USC)
  http://www.gpoaccess.gov/uscode/
   – Codification by subject matter of the general and permanent laws of
      the United States
Federal Spending Research
• USASpending.gov
  www.usaspending.gov
   – Searchable website with basic information on all federal awards
• Federal Procurement Data System (FPDS)
  https://www.fpds.gov/fpdsng_cms/
   – Searchable website with detailed information on all federal awards
   – Users can run simple searches through ezSearch tool or create
      an account to build custom Adhoc reports
• Federal Procurement Forecasts
  www.acquisition.gov/comp/procurement_forecasts/index.html
   – Federal Agency “wish lists”
Federal Marketing Strategy
• Complete all registrations
• Identify and target key agencies
   – Know the agency’s mission and their needs
• Prepare a Capability Statement
   – One page business resume
   – Highlight who you are, what you do, and why you are the best
   – Communicate what value you can bring to the process
• Visit target agency points of contact
• Remember that small business programs are opportunities;
  they are not entitlements
Federal Points of Contacts
• Small Business Liaison Officer (SBLO)
   – Prime Contractor Employee (Public Law 95-507)
   – Monitors prime contractor subcontracting goals
• Small and Disadvantaged Business Utilization Specialist
  (SADBU) and Small Business Specialist (SBS)
   – Acts as liaison between you and buyers
• Procurement Contract Representative (PCR) and
  Commercial Marketing Representative (CMR)
   – SBA Resources for small businesses
Federal Points of Contact
• Contracting Officer (CO)
   – Only person that can obligate the government
   – Enters into, administers, and terminates federal contracts
• Contract Administrator
   – Assistant to contracting officer
• Contracting Officers Technical Representative (COTR)
   – Designated technical expert that monitors contract performance
• End User
   – Person that knows requirement the best
Steps in Federal Contracting

• Registration
   • Small Business Programs
      • Research and Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
Finding Federal Opportunities
• Federal Business Opportunities “FedBizOpps”
  www.fbo.gov
   – Federal government procurement opportunities over $25,000
   – May register as a vendor once CCR is active
• FedBid
  www.fedbid.com
   – Reverse auction system used by some agencies for informal or
     simplified acquisitions
• PROBID
  www.sbtdc.org/services/probid.asp
   – Electronic bid matching system (fees apply)
Types of Federal Opportunities

•   Presolicitation
•   Sources Sought
•   Special Notices
•   Request for Information
•   Solicitation
    – Request for Quote
    – Request for Proposal
• Modifications
• Award Notice
Federal Subcontracting Opportunities
• SBA Subnet
  http://web.sba.gov/subnet/
• SBA Subcontracting Directory
  http://www.sba.gov/aboutsba/sbaprograms/gc/contacts/gc_su
  bcontracts_opportunities.html
• DoD Subcontracting Directory
  http://www.acq.osd.mil/osbp/doing_business/Subcontracting_
  Directory_0908.pdf
Steps in Federal Contracting

• Registration
   • Small Business Programs
      • Research and Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
Evaluating Federal Opportunities
• Obtain entire solicitation including attachments and
  amendments
• Read solicitation completely and thoroughly
• Determine contracting method and contract type
• Attend pre-bid conference if applicable
• Determine potential to bid

• Contact PTAC for assistance!
Federal Contracting Methods
• Micro Purchases
   – FAR Part 13
• Simplified Acquisitions
   – FAR Part 13
• Sealed Bidding
   – FAR Part 14
• Negotiated Procurements
   – FAR Part 15
Micro Purchases
•   Micro-purchase threshold
    – Supply purchases less than $3,000
    – Services purchases less than $2,500
    – Construction purchases less than $2,000
• May be credit card transactions or purchase orders
    – Approximately 700,000 government credit cards issued
•   Advertisement and competition are not required
•   Open to large and small business
•   Account for $18 billion in annual sales
•   Award is usually based on lowest price
Simplified Acquisitions
• Purchases over micro purchase threshold and up to
  $150,000
• Solicitation in form of Request for Quote (RFQ)
• Informal advertisement required for purchases over
  $10,000 and up to $25,000
• Formal advertisement in FBO required for purchases over
  $25,000
• Automatically set aside for small business, may be set
  aside for 8(a), HUBZone, SDVOSB or WOSB* firms
• Award is usually based on lowest price
Sealed Bids
• One of two methods used for procurements over $150,000
• Solicitation in form of Invitation for Bid (IFB)
• Formal Advertisement in FBO required
• May be set-aside for small business, 8(a), HUBZone,
  SDVOSB or WOSB* firms
• Bids are publically opened and read aloud by an
  authorized person at the time set for bid opening
• Award is made to lowest cost responsive and responsible
  bidder
Negotiated Procurements
• One of two methods used for procurements over $150,000
• Formal advertisement in FBO required
• Solicitation in form of Request for Proposal (RFP) or
• May be set-aside for small business, 8(a), HUBZone,
  SDVOSB, or WOSB* firms
• All proposals are evaluated, and the evaluations committee
  holds discussions with “Short List” bidders
• Award is made to best value responsive and responsible
  bidder
Federal Contract Types
• FFP – Firm Fixed Price
   – Most commonly used, reduces risk to government
• CPFF – Cost Plus Fixed Fee
   – Used when project uncertainties prevent accurate cost estimation
• T&M – Time and Material
   – Used when the extent of work can’t be accurately estimated
• IDIQ – Indefinite Delivery/Indefinite Quantity
   – Used when the quantity required over time is unknown
Bidding On Federal Contracts
• Follow all of the instructions and sequence given in the
  solicitation
• Focus on customer’s mission and goals, being mindful of
  evaluation factors
• Check and recheck all cost and pricing data, provide
  supporting documentation
• Provide all the required information in enough detail to give
  the customer confidence that you understand thoroughly.
• Sign all documents and submit on time in the prescribed
  manner
Performing on Federal Contracts
• Remember the CO is the only one who can obligate
  government funds
• Know your customer and their procedures
• Document everything
• Alert the customer promptly when a change in cost, time, or
  method occurs
• Resolve anything that is not accordance with the contract and
  execute modifications
• Perform as promised
State of North Carolina
Contracting Overview
Potential State Customers

•   State Agencies
•   Universities
•   Community Colleges
•   Public Schools
•   Institutions
•   Local governments
Steps in State Government Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
            • Responding to Opportunities
Registration
• Identify your NIGP/Commodity Codes
  http://www.doa.state.nc.us/PandC/ispalpha.htm
• Review the P&C website
  http://www.doa.state.nc.us/PandC/
• Register in E-Procurement
  http://eprocurement.nc.gov/
• Register in VendorLink
  www.doa.state.nc.us/PandC/VendorLink-Registration.htm
NC E-Procurement
• Internet based purchasing system
   – Streamlines procedures and reduces overall costs
• Statewide vendor registration process
   –   Required for all vendors
   –   1.75% funding fee (required only if awarded a contract)
   –   Includes eQuote informal buying system
   –   240 different government entities are using E-Procurement
         • All state agencies, institutions and hospitals, public schools,
           community colleges, and some local governments
                       http://eprocurement.nc.gov
NC Vendor Link
• Part of the NC Interactive Purchasing System
• Allows vendors to enter information about their company
• Serves as a vendor directory for state agencies, universities,
  community colleges, and public schools.
• Allows vendors to receive e-mail notification of procurement
  opportunities
• Registration is mandatory for NC HUB registration and
  certification
              www.ncpandc.gov/VendorLinkNC.htm
Local Government Registration
•   Concentrate on immediate area first
•   Identify city and county websites
•   Complete individual registrations, usually paper
•   Register for Minority and Women Business Enterprise
    (M/WBE) programs

    Note: Many cities and counties use the state Procurement system


              http://ncinfo.iog.unc.edu/library/cities.html
Steps in State Government Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
North Carolina HUB Program
• Program for historically underutilized businesses including
  minority, women, and disabled owned businesses
• Statewide Uniform Certification (SWUC)
• 10% participation goal
• Must be registered in VendorLink
• HUB Office Programs
   – Sponsors seminars and workshops
   – Maintains database of HUB vendors for use by state
     purchases, general contractors, and other
                     www.doa.state.nc.us/hub/
NC DOT Small Business Programs
• Disadvantaged Business Enterprise (DBE)
   – Socially and economically disadvantaged businesses
• Small Professional Services Firm (SPSF)
   – Small sub-consulting businesses
• Minority/Women Business Enterprise (MBE/WBE)
   – Minority and/or women owned businesses
• Small Business Enterprise (SBE)
   – Small businesses (under $1.5 million gross annual income)
               http://www.ncdot.org/business/ocs/
Steps in State Government Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
State Government Regulation
              and Spending Research
• Regulations
   – NC Purchase and Contract Administrative Code
     http://www.doa.state.nc.us/PandC/admcode.htm
   – NC Agency Purchasing Manual
     http://www.doa.state.nc.us/PandC/agpurman.htm
   – State Construction Manual
     http://nc-sco.com/Manual/manual.htm
• Award History
   – NC Openbook
     www.ncopenbook.gov
State and Local Government
                  Marketing Strategy
• Complete all registrations
• Identify and target key agencies, focusing
  on one or two
• Prepare promotional material
   – Capability statement
• Visit agency purchasing representatives
• Take advantage of HUB/MBE/WBE status
• Become a chamber member
State Government Points of Contact
• State Division Employees
   – Purchasing groups managing statewide contracts
• Agency Purchasing Officers
   – Manage agency contracts
• HUB Coordinators
   – Do not buy anything
   – Act as an advocate for small HUB businesses
• End Users
   – Person that knows requirements best
Steps in State Government Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
Finding State Government Opportunities
• Interactive Purchasing System (IPS)
  http://www.ips.state.nc.us/ips/pubmain.asp
   – Portal for State of North Carolina Opportunities
• VendorLink
  http://doa.state.nc.us/PandC/VendorLinkNC.htm
   – Allows electronic notification of solicitation notices posted to IPS
• eQuote
   – Register through E-Procurement
   – Allows vendors to receive and respond to RFQs electronically
• PROBID
Steps in State Government Contracting

• Registration
   • Small Business Programs
      • Marketing Tools and Strategies
         • Locating Opportunities
             • Responding to Opportunities
Evaluating State Government Opportunities
• Obtain a complete copy of the solicitation and watch for
  amendments
• Read entire synopsis and other documents carefully
• Determine purchasing procedure
• Attend pre-bid conference or walk-through
• Determine bid potential

• Contact PTAC for assistance!
State Government Purchasing Procedures
• Informal Procedures
   – Purchase and Contract Administrative Code Subchapter 5B
• Formal Procedures
   – Purchase and Contract Administrative Code Subchapter 5B
• Term Contract Procedures
   – Purchase and Contract Administrative Code Subchapter 5B
• Construction Project Procedures
   – State Construction Office Manual
Bidding with Informal Procedures
• Purchases up to $10,000
• Advertisement of bid opportunity is not required
• May be conducted via eQuote system
• Solicitation in form of Request for Quote (RFQ) or Invitation
  for Bid (IFB)
• Written quotes or bids required for contracts over $5,000
• Contracts awarded to lowest responsible bidder
Bidding with Formal Procedures
• Purchases over $10,000
• Advertisement of bid opportunity is required
• Posted to NC IPS
• Solicitation in form of Request for Proposal (RFP) or
  Invitation for Bid (IFB)
• Sealed competitive bids must be obtained
• Contracts awarded to lowest responsible bidder
Bidding on Term Contracts
• Commonly purchased commodities, printing, or contractual
  services
• Used by all agencies, convenience contracts for universities
  and community colleges
• Multi-year contracts with minimum and maximum ordering
  quantities
• Also know as Requirements or Indefinite Delivery contracts
• May be awarded to multiple vendors
Bidding on Construction Contracts
• State Construction Office
  http://www.nc-sco.com
   – Informal: $30,000 to $300,000
   – Formal: Over $300,000
• University Construction Projects
  http://www.northcarolina.edu/info/vendors/opportunities.htm
   – University construction solicitations
   – Additional information about doing business with universities
Bidding On State Government Contracts
• Follow all of the instructions and sequence given in the
  solicitation
• Focus on customer’s mission and goals, being mindful of
  evaluation factors
• Check and recheck all cost and pricing data, provide
  supporting documentation
• Provide all the required information in enough detail to give
  the customer confidence that you understand thoroughly.
• Sign all documents and submit on time in the prescribed
  manner
Performing on State Government Contracts
• Know your customer and their procedures
• Document everything
• Alert the customer promptly when a change in cost, time, or
  method occurs
• Resolve anything that is not accordance with the contract and
  execute modifications
• Perform as promised
• Remember government customers tend to
  be loyal customers
Teaming to Pursue Government Contracts
Teaming Defined
• Two or more companies form a partnership or joint venture
  to act as a potential prime contractor

                             OR

• A potential prime contractor agrees with one or more other
  companies to have them act as its subcontractors under a
  specified contract
Teaming Arrangements
• Advantages of Teaming Arrangements
   – Maximizes complementary skills, resources, and capabilities to
     increase competitiveness
   – Eliminates barriers to market entry and fills past performance gaps
   – Allows all team members to develop a direct relationship with
     government agency
• Types of Teaming Arrangements
   – Teaming Agreements
   – Partnerships
   – Joint Ventures
Teaming Agreements
• A Teaming Agreement is an agreement between the team
  members to work together to pursue a prime contract with the
  promise to negotiate subcontracts within the team if it is
  successful.
• A teaming agreement should clearly define the
  responsibilities of team members during proposal preparation
  and contract performance
• One business acts as the prime contractor, and the other
  team members act as subcontractors if the team is awarded
  a contract.
Partnerships
• A partnership is a business enterprise consisting of two or
  more individuals or concerns who come together to co-own a
  trade or business for profit
• A partnership may be one of two types: general partnership
  or limited liability partnership
• A partnership is a distinct legal entity, though partners may be
  individually responsible for liabilities of the partnership
• A partnership acts as a prime contractor to the government
Joint Ventures
• A joint venture is an association of two or more individuals or
  concerns formed to undertake a particular business
  transaction or project, rather than one intended to continue
  indefinitely
• A joint venture is a distinct legal entity that may be owned by
  two or more businesses
• A joint venture cannot submit more than 3 proposals over a
  two year period
• A joint venture acts as a prime contractor to the government
Bidding on Contracts as a Team
• Proposal preparation and contract performance
  responsibilities should be clearly defined regardless of type of
  arrangement
• Statement of work tasks should be divided in such a way that
  the team complies with subcontracting restrictions, if
  applicable
• The teaming arrangement documentation should be included
  in the proposal submitted to the government
• All team members must be responsible for their portion of the
  contract to ensure overall contract performance
Wrapping Up…
Final Thoughts
• Do not be late
• Keep track of required registrations and passwords
• Be proactive and persistent when looking
  for opportunities
• Make sure opportunities are consistent with your business
  plan
• Make connections and manage relationships
• Utilize small business resources
• Call PTAC with questions
Utilize Small Business Resources!
• Work with the SBTDC to develop and maintain a good overall
  business strategy

• Work with PTAC to prepare for and identify government sales
  opportunities

• Contact the SBTDC or PTAC for assistance, we are here to
  help!
Marketplace 2011




               Sheraton Imperial Hotel
             Research Triangle Park, NC
                     June, 1 2011
Marketplace is a biennial reverse trade show that gives
 business owners the opportunity to directly market their
   goods and services to large prime contractors and
                  government agencies
North Carolina PTAC Counselors

•   Clark Fields – Asheville: 828.251.6025 or cfields@sbtdc.org
•   Wanda Robinson – Hickory: 828.345.1049 or wrobinson@sbtdc.org
•   George Griffin – Greensboro: 336.779.7339 or ggriffin@sbtdc.org
•   Rebecca Barbour – Raleigh: 919-715-7373 or rbarbour@sbtdc.org
•   LaNell Grissom – Fayetteville: 910-672-1727 or lgrissom@sbtdc.org
•   Cindy Baldwin – Greenville: 252-737-1369 or cbaldwin@sbtdc.org
•   Mark Mills – Program Director: 828-345-1115 or mmills@sbtdc.org
QUESTIONS?

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Doing Business with the Government

  • 1. The SBTDC is a business advisory service of The North Carolina University System operated in partnership with the U.S. Small Business Administration. sbtdc.org | info@sbtdc.org
  • 2. Small Business and Technology Development Center (SBTDC) Procurement Technical Assistance Center (PTAC) Doing Business with the Federal, State & Local Government and Military LaNell Grissom 910-672-1727 lgrissom@sbtdc.org
  • 3. Agenda Please turn all cell phones to vibrate Please feel free to ask questions • SBTDC and PTAC Services • Federal Government Contracting • State Government Contracting • Teaming on Government Contracts • Final Thoughts
  • 4. About the Small Business and Technology Development Center (SBTDC) • Established in 1984: – initiated by the US Small Business Act – funding through US Small Business Administration (SBA) and matching funds from the University of North Carolina System • SBTDC Mission: – Support the growth and development of North Carolina’s economy by: • encouraging entrepreneurship • assisting in the creation and expansion of small to medium-sized enterprises • facilitating technology development and commercialization • supporting economic development organizations
  • 5. SBTDC Services • Confidential one-one-one counseling: – General Business Services – Technology Development and Commercialization – Export Financing Assistance – Boating Industry Services – Market & Research Services – Strategy and Organization Development Services – Government Procurement Assistance • Procurement Technical Assistance Center www.sbtdc.org
  • 6.
  • 7.
  • 8. About the Procurement Technical Assistance Center (PTAC) • National program established in 1985: – Authorized by Congress – Funded by the Department of Defense and administered through the Defense Logistics Agency (DLA) – Provides matching funds through cooperative agreements with state and local governments and non-profit organizations • PTAC Program: – Provides a wide range of services including classes and seminars, individual counseling, and easy access to information necessary to successfully compete for government contracts
  • 9. PTAC Services • Assistance selling to federal, state and local government entities – Completing mandatory and beneficial registrations – Identifying preference eligibility and applicable certifications – Researching contract award history – Locating specifications and standards – Identifying contracting opportunities – Understanding solicitations requirements and terminology – Reviewing bids and proposals www.sbtdc.org/ptac
  • 10.
  • 11.
  • 12. SBTDC and PTAC Statewide Offices Asheville, Boone, Chapel Hill, Charlotte, Cullowhee, Durham, Elizabeth City, Fayetteville, Greensboro, Greenville, Hickory, Pembroke, Raleigh, Wilmington, and Winston-Salem
  • 14. Before Selling to the Government • Internet access and computer knowledge • Potential to sell to the government • Determination to sell to the government • Knowledge of competition and how they succeed • Perseverance Contact a PTAC Counselor!
  • 15. Is the Government Market for You? • What a government contract can do for your business – Diversify your customer base – Cover overhead costs – Even out cash Flow • What a government contract cannot do for your business – Jump-start your business – Save your business – Be the sole customer of your business
  • 17. Potential Federal Customers • Military Bases • General Services Administration (GSA) • Department of Veteran’s Affairs (VA) • Defense Logistics Agency (DLA) • Department of Homeland Security (DHS) • United States Department of Agriculture (USDA)
  • 18. Steps in Federal Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 19. Federal Registration Acronyms • NAICS – North American Industry Classification System • FSC – Federal Supply Classification • PSC – Product Service Code • TIN – Tax Identification Number • DUNS – Data Universal Numbering System • CCR – Central Contractor Registration • DSBS – Dynamic Small Business Search • ORCA – Online Representations and Certifications • WAWF – Wide Area Workflow
  • 20. Federal Registration Preparation • Identify your NAICS codes – http://www.census.gov/eos/www/naics • Identify your FSC and PSC codes – http://www.outreachsystems.com/resources/tables/pscs • Obtain Tax ID Number (TIN) – 1-800-829-1040 or www.irs.gov/businesses – Even if Sole Proprietor • Obtain DUNS Number – 1-866-705-5711 or http://fedgov.dnb.com/webform – Required for Central Contractor Registration (CCR)
  • 21. Central Contractor Registration • Required to do business with the federal government • Marketing Partner ID Number (MPIN) created during registration • Commercial and Government Entity Code (CAGE code) assigned when registration complete • Includes SBA Firm Profile (Dynamic Small Business Search) www.ccr.gov
  • 22. CCR Inputs • General Information • Points of Contact – DUNS, TIN, addresses, – CCR, Electronic, and size information Government contacts • Corporate Information • Proceedings – Business type and factors – Series of Yes/No questions • Goods and Services • Compensation – NAICS, PSC, FSC – Series of Yes/No questions • Financial Information • IRS Consent – Account number, financial – Electronic signature using institution contacts MPIN
  • 23. SBA Firm Profile Dynamic Small Business Search • Access through CCR once registration is complete • DSBS number (SBA customer number) assigned • Includes company information from CCR • Allows firms to include supplemental information – Non-government certifications – Capabilities narrative and keywords – Quality assurance standards – Export profile – Performance history
  • 24. Online Representations and Certifications Application • Replaces paper Reps and Certs process • Required to bid on most federal contracts • May be completed only after CCR is active • Vendors login using DUNS and MPIN and complete questionnaire based on the FAR required reps and certs • Annual recertification required https://orca.bpn.gov/
  • 25. Wide Area Workflow • Web-based system for electronic invoicing, receipt, acceptance, and inspection • Required to be paid as a contractor on Department of Defense contracts • Also supports shipment of Government Furnished Property (GFP) • Vendor training available online and in classrooms https://wawf.eb.mil
  • 26. Steps in Federal Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 27. Federal Small Business Size Standards • Based on industry (NAICS code) • Determined by average number of employees or average annual receipts • Examples: – Commercial Construction (236220) – $33.5 million – Warehousing and Storage (493110) – $25.5 million – Engineering Services (541330) – $4.5 million – Office Furniture Manufacturing (337211) – 500 employees – Auto Parts Wholesalers (423120) – 100 employees www.sba.gov/sites/default/files/Size_Standards_Table.pdf
  • 28. Federal Small Business Programs and Certifications • Small Business Certification • Small Disadvantaged Business Certification • 8(a) Business Development Program • HUBZone Empowerment Contracting Program • Women Owned Small Business Program • Veteran Owned Small Business Program www.sba.gov/contracting
  • 29. Small Business Certification and Small Disadvantaged Business Certification • Small Business Certification – Firms may Self certify through CCR and ORCA – Must meet small business size standard for NAICS code – May be small in some NAICS codes, and not others • Small Disadvantaged Business Certification – Firms may Self Certify through CCR and ORCA – Must be small in primary industry and be owned and controlled by socially and economically disadvantaged individual(s) – Formal SBA certification program discontinued October 2008
  • 30. 8(a) Business Development Program • Business assistance program administered by the SBA for small disadvantaged businesses • The applicant firm must: – Be 51% owned and controlled by one or more socially and economically disadvantaged individuals – Be a small business in primary industry – Demonstrate good character and reasonable potential for success – Have been in business at least two years • Nine year program with development and transition stages • Set-aside and sole source opportunities for participants
  • 31. HUBZone Empowerment Contracting Program • Program administered by the SBA to encourage development in historically underutilized business zones • The applicant firm must – Be 51% owned and controlled by US Citizens – Be a small business in primary industry – Have a principal office located in a HUBZone – Have at least 35% of employees that reside in a HUBZone • HUBZones determined by US Census data • Set-aside and sole-source opportunities • Price evaluation preference in full and open competitions
  • 32. Women Owned Small Business Program • Program to ensure federal contracting opportunities for women owned small businesses • Eligible firms must: – Be 51% owned and controlled by one or more women – Be a small business in primary industry – Be primarily managed by one or more women • New rule effective February 4, 2011 allows for: – WOSBs to self certify or to be third party certified – The SBA to perform evaluations to confirm WOSB eligibility – Contracting officers to set-aside opportunities within 83 industries where WOSBs are underrepresented
  • 33. Veteran and Service-Disabled Veteran Owned Small Business Programs • Programs to ensure federal contracting opportunities for veteran and service-disabled veteran owned small businesses • Eligible firms must: – Be 51% owned and controlled by one or more Veterans or SDVs – Be a small business in primary industry – Be primarily managed by one or more or Veterans or SDVs • Firms may self certify or seek verification through the VA • Government wide set-aside opportunities for SDVOSBs • The VA has authority to give preference to and set-aside opportunities for both SDVOSBs and VOSBs
  • 34. Federal Small Business Contracting Goals • Government wide statutory goals: – 23% of prime contracts to small businesses – 5% of prime and subcontracts to SDBs – 5% of prime and subcontracts to WOSBs – 3% of prime and subcontracts to SDVOSBs – 3% of prime and subcontracts to HUBZone businesses • Agency goals negotiated and monitored by the SBA • Small Business Procurement Scorecards published annually www.sba.gov/content/about-goaling-and-program-information
  • 35. 2009 Federal Small Business Procurement Scorecards • Agency for International Dev: F • Dept of Transportation: A • Dept of Agriculture: A • Dept of the Treasury: B • Dept of Commerce: C • Dept of Veteran Affairs: A • Dept of Defense: B • Environmental Protection Agency: A • Dept of Education: A • General Services Administration: C • Dept of Energy: A • Nat’l Aeronautics & Space Admin: C • Dept of Health & Human Services: C • Nat’l Science Foundation: F • Dept of Homeland Security: A • Nuclear Regulatory Commission: B • Dept of Housing and Urban Dev.: C • Office of Personnel Mgmt F • Dept of the Interior: A • Small Business Admin: A • Dept of Justice: D • Social Security Admin: B • Dept of Labor: A • Dept of State: B • Government Wide: B
  • 36. Steps in Federal Contracting • Registration • Small Business Programs • Research and Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 37. Federal Rules and Regulations Research • Federal Acquisition Regulation (FAR) www.acquisition.gov/Far/ – Codification of uniform policies for acquisition of supplies and services by the executive agencies • Code of Federal Regulations (CFR) http://www.gpoaccess.gov/cfr/ – Codification of the general and permanent rules published in the Federal Register by the executive departments and agencies • United States Code (USC) http://www.gpoaccess.gov/uscode/ – Codification by subject matter of the general and permanent laws of the United States
  • 38.
  • 39.
  • 40.
  • 41. Federal Spending Research • USASpending.gov www.usaspending.gov – Searchable website with basic information on all federal awards • Federal Procurement Data System (FPDS) https://www.fpds.gov/fpdsng_cms/ – Searchable website with detailed information on all federal awards – Users can run simple searches through ezSearch tool or create an account to build custom Adhoc reports • Federal Procurement Forecasts www.acquisition.gov/comp/procurement_forecasts/index.html – Federal Agency “wish lists”
  • 42.
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  • 45.
  • 46.
  • 47.
  • 48. Federal Marketing Strategy • Complete all registrations • Identify and target key agencies – Know the agency’s mission and their needs • Prepare a Capability Statement – One page business resume – Highlight who you are, what you do, and why you are the best – Communicate what value you can bring to the process • Visit target agency points of contact • Remember that small business programs are opportunities; they are not entitlements
  • 49. Federal Points of Contacts • Small Business Liaison Officer (SBLO) – Prime Contractor Employee (Public Law 95-507) – Monitors prime contractor subcontracting goals • Small and Disadvantaged Business Utilization Specialist (SADBU) and Small Business Specialist (SBS) – Acts as liaison between you and buyers • Procurement Contract Representative (PCR) and Commercial Marketing Representative (CMR) – SBA Resources for small businesses
  • 50. Federal Points of Contact • Contracting Officer (CO) – Only person that can obligate the government – Enters into, administers, and terminates federal contracts • Contract Administrator – Assistant to contracting officer • Contracting Officers Technical Representative (COTR) – Designated technical expert that monitors contract performance • End User – Person that knows requirement the best
  • 51. Steps in Federal Contracting • Registration • Small Business Programs • Research and Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 52. Finding Federal Opportunities • Federal Business Opportunities “FedBizOpps” www.fbo.gov – Federal government procurement opportunities over $25,000 – May register as a vendor once CCR is active • FedBid www.fedbid.com – Reverse auction system used by some agencies for informal or simplified acquisitions • PROBID www.sbtdc.org/services/probid.asp – Electronic bid matching system (fees apply)
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  • 55.
  • 56. Types of Federal Opportunities • Presolicitation • Sources Sought • Special Notices • Request for Information • Solicitation – Request for Quote – Request for Proposal • Modifications • Award Notice
  • 57. Federal Subcontracting Opportunities • SBA Subnet http://web.sba.gov/subnet/ • SBA Subcontracting Directory http://www.sba.gov/aboutsba/sbaprograms/gc/contacts/gc_su bcontracts_opportunities.html • DoD Subcontracting Directory http://www.acq.osd.mil/osbp/doing_business/Subcontracting_ Directory_0908.pdf
  • 58. Steps in Federal Contracting • Registration • Small Business Programs • Research and Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 59. Evaluating Federal Opportunities • Obtain entire solicitation including attachments and amendments • Read solicitation completely and thoroughly • Determine contracting method and contract type • Attend pre-bid conference if applicable • Determine potential to bid • Contact PTAC for assistance!
  • 60. Federal Contracting Methods • Micro Purchases – FAR Part 13 • Simplified Acquisitions – FAR Part 13 • Sealed Bidding – FAR Part 14 • Negotiated Procurements – FAR Part 15
  • 61. Micro Purchases • Micro-purchase threshold – Supply purchases less than $3,000 – Services purchases less than $2,500 – Construction purchases less than $2,000 • May be credit card transactions or purchase orders – Approximately 700,000 government credit cards issued • Advertisement and competition are not required • Open to large and small business • Account for $18 billion in annual sales • Award is usually based on lowest price
  • 62. Simplified Acquisitions • Purchases over micro purchase threshold and up to $150,000 • Solicitation in form of Request for Quote (RFQ) • Informal advertisement required for purchases over $10,000 and up to $25,000 • Formal advertisement in FBO required for purchases over $25,000 • Automatically set aside for small business, may be set aside for 8(a), HUBZone, SDVOSB or WOSB* firms • Award is usually based on lowest price
  • 63. Sealed Bids • One of two methods used for procurements over $150,000 • Solicitation in form of Invitation for Bid (IFB) • Formal Advertisement in FBO required • May be set-aside for small business, 8(a), HUBZone, SDVOSB or WOSB* firms • Bids are publically opened and read aloud by an authorized person at the time set for bid opening • Award is made to lowest cost responsive and responsible bidder
  • 64. Negotiated Procurements • One of two methods used for procurements over $150,000 • Formal advertisement in FBO required • Solicitation in form of Request for Proposal (RFP) or • May be set-aside for small business, 8(a), HUBZone, SDVOSB, or WOSB* firms • All proposals are evaluated, and the evaluations committee holds discussions with “Short List” bidders • Award is made to best value responsive and responsible bidder
  • 65. Federal Contract Types • FFP – Firm Fixed Price – Most commonly used, reduces risk to government • CPFF – Cost Plus Fixed Fee – Used when project uncertainties prevent accurate cost estimation • T&M – Time and Material – Used when the extent of work can’t be accurately estimated • IDIQ – Indefinite Delivery/Indefinite Quantity – Used when the quantity required over time is unknown
  • 66. Bidding On Federal Contracts • Follow all of the instructions and sequence given in the solicitation • Focus on customer’s mission and goals, being mindful of evaluation factors • Check and recheck all cost and pricing data, provide supporting documentation • Provide all the required information in enough detail to give the customer confidence that you understand thoroughly. • Sign all documents and submit on time in the prescribed manner
  • 67. Performing on Federal Contracts • Remember the CO is the only one who can obligate government funds • Know your customer and their procedures • Document everything • Alert the customer promptly when a change in cost, time, or method occurs • Resolve anything that is not accordance with the contract and execute modifications • Perform as promised
  • 68. State of North Carolina Contracting Overview
  • 69. Potential State Customers • State Agencies • Universities • Community Colleges • Public Schools • Institutions • Local governments
  • 70. Steps in State Government Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 71. Registration • Identify your NIGP/Commodity Codes http://www.doa.state.nc.us/PandC/ispalpha.htm • Review the P&C website http://www.doa.state.nc.us/PandC/ • Register in E-Procurement http://eprocurement.nc.gov/ • Register in VendorLink www.doa.state.nc.us/PandC/VendorLink-Registration.htm
  • 72. NC E-Procurement • Internet based purchasing system – Streamlines procedures and reduces overall costs • Statewide vendor registration process – Required for all vendors – 1.75% funding fee (required only if awarded a contract) – Includes eQuote informal buying system – 240 different government entities are using E-Procurement • All state agencies, institutions and hospitals, public schools, community colleges, and some local governments http://eprocurement.nc.gov
  • 73. NC Vendor Link • Part of the NC Interactive Purchasing System • Allows vendors to enter information about their company • Serves as a vendor directory for state agencies, universities, community colleges, and public schools. • Allows vendors to receive e-mail notification of procurement opportunities • Registration is mandatory for NC HUB registration and certification www.ncpandc.gov/VendorLinkNC.htm
  • 74. Local Government Registration • Concentrate on immediate area first • Identify city and county websites • Complete individual registrations, usually paper • Register for Minority and Women Business Enterprise (M/WBE) programs Note: Many cities and counties use the state Procurement system http://ncinfo.iog.unc.edu/library/cities.html
  • 75. Steps in State Government Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 76. North Carolina HUB Program • Program for historically underutilized businesses including minority, women, and disabled owned businesses • Statewide Uniform Certification (SWUC) • 10% participation goal • Must be registered in VendorLink • HUB Office Programs – Sponsors seminars and workshops – Maintains database of HUB vendors for use by state purchases, general contractors, and other www.doa.state.nc.us/hub/
  • 77. NC DOT Small Business Programs • Disadvantaged Business Enterprise (DBE) – Socially and economically disadvantaged businesses • Small Professional Services Firm (SPSF) – Small sub-consulting businesses • Minority/Women Business Enterprise (MBE/WBE) – Minority and/or women owned businesses • Small Business Enterprise (SBE) – Small businesses (under $1.5 million gross annual income) http://www.ncdot.org/business/ocs/
  • 78. Steps in State Government Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 79. State Government Regulation and Spending Research • Regulations – NC Purchase and Contract Administrative Code http://www.doa.state.nc.us/PandC/admcode.htm – NC Agency Purchasing Manual http://www.doa.state.nc.us/PandC/agpurman.htm – State Construction Manual http://nc-sco.com/Manual/manual.htm • Award History – NC Openbook www.ncopenbook.gov
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  • 81.
  • 82. State and Local Government Marketing Strategy • Complete all registrations • Identify and target key agencies, focusing on one or two • Prepare promotional material – Capability statement • Visit agency purchasing representatives • Take advantage of HUB/MBE/WBE status • Become a chamber member
  • 83. State Government Points of Contact • State Division Employees – Purchasing groups managing statewide contracts • Agency Purchasing Officers – Manage agency contracts • HUB Coordinators – Do not buy anything – Act as an advocate for small HUB businesses • End Users – Person that knows requirements best
  • 84. Steps in State Government Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 85. Finding State Government Opportunities • Interactive Purchasing System (IPS) http://www.ips.state.nc.us/ips/pubmain.asp – Portal for State of North Carolina Opportunities • VendorLink http://doa.state.nc.us/PandC/VendorLinkNC.htm – Allows electronic notification of solicitation notices posted to IPS • eQuote – Register through E-Procurement – Allows vendors to receive and respond to RFQs electronically • PROBID
  • 86.
  • 87.
  • 88. Steps in State Government Contracting • Registration • Small Business Programs • Marketing Tools and Strategies • Locating Opportunities • Responding to Opportunities
  • 89. Evaluating State Government Opportunities • Obtain a complete copy of the solicitation and watch for amendments • Read entire synopsis and other documents carefully • Determine purchasing procedure • Attend pre-bid conference or walk-through • Determine bid potential • Contact PTAC for assistance!
  • 90. State Government Purchasing Procedures • Informal Procedures – Purchase and Contract Administrative Code Subchapter 5B • Formal Procedures – Purchase and Contract Administrative Code Subchapter 5B • Term Contract Procedures – Purchase and Contract Administrative Code Subchapter 5B • Construction Project Procedures – State Construction Office Manual
  • 91. Bidding with Informal Procedures • Purchases up to $10,000 • Advertisement of bid opportunity is not required • May be conducted via eQuote system • Solicitation in form of Request for Quote (RFQ) or Invitation for Bid (IFB) • Written quotes or bids required for contracts over $5,000 • Contracts awarded to lowest responsible bidder
  • 92. Bidding with Formal Procedures • Purchases over $10,000 • Advertisement of bid opportunity is required • Posted to NC IPS • Solicitation in form of Request for Proposal (RFP) or Invitation for Bid (IFB) • Sealed competitive bids must be obtained • Contracts awarded to lowest responsible bidder
  • 93. Bidding on Term Contracts • Commonly purchased commodities, printing, or contractual services • Used by all agencies, convenience contracts for universities and community colleges • Multi-year contracts with minimum and maximum ordering quantities • Also know as Requirements or Indefinite Delivery contracts • May be awarded to multiple vendors
  • 94. Bidding on Construction Contracts • State Construction Office http://www.nc-sco.com – Informal: $30,000 to $300,000 – Formal: Over $300,000 • University Construction Projects http://www.northcarolina.edu/info/vendors/opportunities.htm – University construction solicitations – Additional information about doing business with universities
  • 95. Bidding On State Government Contracts • Follow all of the instructions and sequence given in the solicitation • Focus on customer’s mission and goals, being mindful of evaluation factors • Check and recheck all cost and pricing data, provide supporting documentation • Provide all the required information in enough detail to give the customer confidence that you understand thoroughly. • Sign all documents and submit on time in the prescribed manner
  • 96. Performing on State Government Contracts • Know your customer and their procedures • Document everything • Alert the customer promptly when a change in cost, time, or method occurs • Resolve anything that is not accordance with the contract and execute modifications • Perform as promised • Remember government customers tend to be loyal customers
  • 97. Teaming to Pursue Government Contracts
  • 98. Teaming Defined • Two or more companies form a partnership or joint venture to act as a potential prime contractor OR • A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified contract
  • 99. Teaming Arrangements • Advantages of Teaming Arrangements – Maximizes complementary skills, resources, and capabilities to increase competitiveness – Eliminates barriers to market entry and fills past performance gaps – Allows all team members to develop a direct relationship with government agency • Types of Teaming Arrangements – Teaming Agreements – Partnerships – Joint Ventures
  • 100. Teaming Agreements • A Teaming Agreement is an agreement between the team members to work together to pursue a prime contract with the promise to negotiate subcontracts within the team if it is successful. • A teaming agreement should clearly define the responsibilities of team members during proposal preparation and contract performance • One business acts as the prime contractor, and the other team members act as subcontractors if the team is awarded a contract.
  • 101. Partnerships • A partnership is a business enterprise consisting of two or more individuals or concerns who come together to co-own a trade or business for profit • A partnership may be one of two types: general partnership or limited liability partnership • A partnership is a distinct legal entity, though partners may be individually responsible for liabilities of the partnership • A partnership acts as a prime contractor to the government
  • 102. Joint Ventures • A joint venture is an association of two or more individuals or concerns formed to undertake a particular business transaction or project, rather than one intended to continue indefinitely • A joint venture is a distinct legal entity that may be owned by two or more businesses • A joint venture cannot submit more than 3 proposals over a two year period • A joint venture acts as a prime contractor to the government
  • 103. Bidding on Contracts as a Team • Proposal preparation and contract performance responsibilities should be clearly defined regardless of type of arrangement • Statement of work tasks should be divided in such a way that the team complies with subcontracting restrictions, if applicable • The teaming arrangement documentation should be included in the proposal submitted to the government • All team members must be responsible for their portion of the contract to ensure overall contract performance
  • 105. Final Thoughts • Do not be late • Keep track of required registrations and passwords • Be proactive and persistent when looking for opportunities • Make sure opportunities are consistent with your business plan • Make connections and manage relationships • Utilize small business resources • Call PTAC with questions
  • 106. Utilize Small Business Resources! • Work with the SBTDC to develop and maintain a good overall business strategy • Work with PTAC to prepare for and identify government sales opportunities • Contact the SBTDC or PTAC for assistance, we are here to help!
  • 107. Marketplace 2011 Sheraton Imperial Hotel Research Triangle Park, NC June, 1 2011 Marketplace is a biennial reverse trade show that gives business owners the opportunity to directly market their goods and services to large prime contractors and government agencies
  • 108.
  • 109. North Carolina PTAC Counselors • Clark Fields – Asheville: 828.251.6025 or cfields@sbtdc.org • Wanda Robinson – Hickory: 828.345.1049 or wrobinson@sbtdc.org • George Griffin – Greensboro: 336.779.7339 or ggriffin@sbtdc.org • Rebecca Barbour – Raleigh: 919-715-7373 or rbarbour@sbtdc.org • LaNell Grissom – Fayetteville: 910-672-1727 or lgrissom@sbtdc.org • Cindy Baldwin – Greenville: 252-737-1369 or cbaldwin@sbtdc.org • Mark Mills – Program Director: 828-345-1115 or mmills@sbtdc.org