The document provides an introduction to doing business with US or Pennsylvania government contractors. It outlines the objectives of learning about available assistance, basics of government contracting, and fundamentals of marketing and participating in government marketplaces. It then discusses introductions, the role of Procurement Technical Assistance Centers (PTACs) in facilitating business participation, and some rules and regulations around government contracting including the Federal Acquisition Regulation (FAR) that governs the federal contracting process.
Introduction To Doing Business with the US And PA Governments
1. INTRODUCTION
TO
DOING BUSINESS
AS A US OR PA
GOVERNMENT CONTRACTOR
JOHNSTOWN AREA REGIONAL INDUSTRIES
PROCUREMENT TECHNICAL ASSISTANCE CENTER
2. THE FINE PRINT
◊ This presentation is intended to be general
information only. It does not constitute legal
advice. Always consult with competent legal
counsel for government contracting issues.
◊ Reference to any private vendor is for example
purposes only and is not an endorsement.
◊ Other techniques, methods, approaches, and
considerations may be just as workable as items
presented herein.
◊ Resources provided may change over time, or
become outdated.
◊ You must be connected to the Internet for
embedded links to function.
4. YOUR OBJECTIVES FOR TODAY
◊ Stay awake!!!
◊ Learn:
Assistance that’s available to you and
where you can get it.
The BASICS of U.S. & PA government
contracting. People make careers of
knowing this stuff.
Some fundamentals about marketing and
participating in the US & PA government
marketplaces.
6. PTACS ARE YOUR PALS!
◊ A nationwide network
of local offices that
facilitate business
participation in
government markets.
◊ Little or no cost to
you. Budgeted by
Congress.
◊ Administered by the
Defense Logistics
Agency (DLA).
◊ More info:
www.aptac-us.org
8. PTACS HELP GOVERNMENTS AND CITIZENS
Increased knowledge, capability,
and availability of the nation’s
government’s supply chain.
Increased competition.
Improved quality of goods and
services. Lower costs. Increased
delivery reliability.
Taxpayer gets more “Bang for the
Buck.”
9. ANNUAL PTAC IMPACTS
◊ 75,000 client organizations, over 20,000
brand new to government contracting.
◊ Host or support over 5,500 events with
over 335,000 attendees.
◊ Hold over 180,000 business counseling
sessions.
◊ Assist clients in winning over 127,000
contracts totaling over $17.4 billion.
These efforts create and retain over 320,000
jobs, and reflect a $600+ return for each $1
invested in the PTAC program.
10. WHAT PTACS EXPECT OF CLIENTS
◊ Progress toward becoming a viable
government contracting candidate.
◊ A local place of business.
◊ Computer capability.
◊ Information about your organization and
its operations.
◊ Active pursuit of procurement
opportunities.
◊ Quarterly contract and employment data.
◊ Client feedback at least annually.
11. WHAT PTACS WON’T DO
◊ Serve as an official business
representative or agent for your
organization.
◊ Market or sell for your organization.
◊ Write your bid/proposal for you.
◊ Make your business decisions.
◊ Release information specific to your
organization without your prior approval.
◊ Accept compensation or gifts.
12. YOUR LOCAL PTAC IS A VALUABLE
SOURCE OF FREE OR LOW COST
EXPERTISE THAT CAN ASSIST YOU
IN VIRTUALLY EVERY ASPECT OF
DOING BUSINESS WITH FEDERAL,
STATE, OR REGIONAL/LOCAL
GOVERNMENTS.
13. CLASS ROLE CALL
◊ Your name and title.
◊ Your company name.
◊ What your company does.
◊ What you do at your company.
◊ Why are you here? What do you want to
learn? What specific topics interest you?
15. U.S. CIVICS 101 REVISITED See:
U.S. Constitution
DOD
“Supreme Law of the Land”
Army, Navy, Air Force, Marines, DLA, etc.
Executive Field Installations
President
Cabinet Departments Independent Agencies
DHS, HHS, DOJ, DOD, etc. GSA, USPS, CIA, EPA, NASA, etc.
Government Corporations Quasi-Official Agencies
AMTRAK, FDIC, etc. Smithsonian Institution, etc.
Legislative Support Organizations
House / Senate Library of Congress, Government Printing Office, etc.
Judicial
Supreme Court
Lower Courts Special Courts Support Organizations
U.S. District Courts, etc. U.S. Tax Court, etc. U.S. Sentencing Commission, etc.
16. PA CIVICS 101 REVISITED See:
PA Constitution
Executive
Governor
Agencies Offices
DGS, PASSHE, Penn DOT, etc. Inspector General, etc.
Commissions and Councils Boards
Game, Turnpike, etc. PLCB, etc.
Legislative Bureaus and Authorities
PENNVEST, etc.
House / Senate
Judicial
Supreme Court
“Others”
County governments, etc.
Lower Courts
U.S. District Courts, etc.
17. EVERY GOVERNMENT AGENCY,
OFFICE, DEPARTMENT,
INSTALLATION, BASE, ETC., ETC.,
ETC. IS A POTENTIAL CUSTOMER.
18. FEDERAL PURCHASING
◊ The World’s Biggest Customer: $517 B in
purchases (2010).
◊ Buys EVERYTHING:
36% for supplies/equipment
(electronics, transportation,
metal-based products).
35% for services (engineering,
R & D, business, health).
19% for agricultural products,
communications, utilities,
finance, and administration.
7% for construction.
3% for wholesale/retail.
19. THE FEDERAL PROCUREMENT DOLLAR (2010)
◊ $0.64 DOD ($331 B):
Army, Navy, Air Force, Marines.
Defense Logistics Agency: Defense
Supply Centers and related.
◊ $.36 civilian agencies:
VA, Justice, HHS, SSA, GSA . . .
◊Funnels down through prime
contractors and their subcontractors.
21. HOW THE FEDS BUY: PLASTIC
◊ Credit card (“SmartPay”) See:
micro-purchases.
Generally, up to $3,000 for products,
$2,500 for services, $2,000 for
construction. (About 70% of all
procurement transactions.)
◊ 2009: 3.4 M cards. 91.4M transactions
(250+ K transactions/day). $29.6 B.
◊ Merchant requirement: Accept VISA or
MasterCard.
◊ Can also be used to make contract / task
order payments in certain instances.
22. HOW THE FEDS BUY: WEB EXAMPLES
◊ DLA Internet Bid Board System
(DIBBS): Submit quotes on RFQs See:
and retrieve other procurement
information.
◊ DOD EMALL: “Amazon.com” See:
for authorized government
customers.
◊ GSA: Advantage, Global Supply,
Multiple Award Schedules, See:
Government Wide Acquisition
Contracts, etc.
◊ Fedbid.com: Commercial.
Reverse auctions.
23. HOW THE FEDS BUY: MORE WEB / EMAIL
◊ “Simplified Acquisition Procedures”
◊ Generally, purchases of $3,000 to
$150,000. (About 95% of all contracts.)
◊ 2010: More than 585,000 SA contract
actions totaling $9,442,964,485.
◊ Nominal SAP process: Use e-commerce.
1. Request For Quotation (RFQ), either
informal ($10-$25K) or formal
(>$25K) notification.
2. Oral or written RFQ responses.
3. Purchase Order (PO) or Blanket
Purchase Agreement (BPA).
24. HOW THE FEDS BUY: PAPER
◊ Generally, higher dollars = paper.
◊ More formal solicitation process:
Invitation To Bid (ITB): Sealed bid to
obtain lowest cost.
Request For Proposal (RFP): Negotiated to
obtain best value.
◊ Uniform Contract Format (UCF).
SF 33: Here and here.
◊ Two primary contract types: See:
Fixed price and cost reimbursement.
◊ “Contract Vehicle,” e.g., IDIQ.
25. FEDS SMALL BUSINESS SPENDING FOCUS
◊ Generally, purchases of $3,000 to
$100,000 are reserved (“set aside”) for
“small businesses.”
◊ “Rule of Two.” Business Size See:
◊ Dollar goals: Set Asides See:
23%: Small business.
5%: Disadvantaged businesses (SDB)
and 8(a) businesses.
5%: Women-owned (WOSB) businesses.
5%: HUBZone businesses.
3%: Service-disabled, veteran-owned
(SDVOB) businesses.
26. MORE FEDERAL PURCHASING INFO
◊ USA Spending:
See:
◊ Federal Procurement Data System:
See:
◊ Procurement Forecasts.
27. PA COMMONWEALTH PURCHASING
◊ One of the largest state government
buyers: $3 billion in purchases each year.
◊ Buys EVERYTHING:
Materials.
Services.
Construction.
◊ Small business focus: Annual written
report to the General Assembly concerning
the awarding of contracts to small and
disadvantaged businesses.
28. PA DEPARTMENT OF GENERAL SERVICES (DGS)
◊ One of the largest agencies in PA
government.
◊ Oversees procurement of goods and
services.
◊ Manages non-highway capital projects;
PennDOT complements for highway capital
projects.
◊ Responsible for numerous core operations
of state government.
◊ PA’s real estate agent and insurance
broker.
See:
30. HOW THE COMMONWEALTH BUYS
◊ E-Marketplace: The online portal for bids,
awards, and other contract information.
See:
◊ Standing contract vehicles:
COSTARS and Invitation To Qualify
(ITQ): PA’s “GSA Schedules.”
◊ More Commonwealth purchasing info:
Treasury E-Contracts Library: Online
centralized source of information about
Pennsylvania government goods and
services contracts.
31. GOVERNMENTS ARE THE LARGEST
PURCHASING ENTITY IN THE
WORLD, BUYING TRILLIONS OF
DOLLARS WORTH OF GOODS AND
SERVICES EACH YEAR, INCLUDING
EVERYTHING FROM TOOTHPICKS
TO JUNKED CARS TO WILDLIFE
ARTISTRY SERVICES TO CANCER
RESEARCH.
33. EXPECTATIONS: POTENTIAL VENDOR
◊ From Easy . . .
“Here I am! Where’s my government
contract?”
“Yinz guys kin git me a guvment contract,
right?”
“My company has hit a downturn. Where
can I get a government contract till times
get better?”
◊ To Impossible . . .
“Government contracting is political. It’s
rigged and funneled to the insiders.”
“The big guys grab all the business.”
“I'll never know enough about this
mysterious and complicated market to have
any success in it.”
34. EXPECTATIONS: GOVERNMENT
◊ A quality product or service . . .
◊ From a reputable vendor . . .
◊ Delivered on time, every time . . .
◊ At a competitive price.
Simply put, governments need the best
support in the world from vendors that
are responsive, responsible, and pay
attention to details. Lives may depend on
it!
35. TAKING INVENTORY OF YOUR COMPANY
◊ Performance history:
Past success stories of satisfied clients.
◊ Commitment from management:
Investing resources will incur market
entry costs.
◊ Focused marketing:
Identify government customers who are
ready to buy your specific product.
◊ Sales:
You have to do the work. No one is
going to deliver business to you.
Requires personal contact, not direct
mail/fax/email.
36. TAKING INVENTORY OF YOUR COMPANY
◊ Size:
Not necessarily important. Many
contracts are awarded to companies of 5
or fewer. Some “set asides” are
available. Consider teaming to fill gaps.
◊ Financial resources:
Is your business financially stable? Are
you making payroll and other payments?
◊ Quality:
For manufacturing especially, you need
some type of formal, documented
quality plan in place. ISO 9000
preferred.
37. TAKING INVENTORY OF YOUR COMPANY
◊ Office management:
Need organization, accuracy of files and
records, and documentation of
important transactions.
◊ Technology:
You’ll need email and access to agency
web sites.
Getting paid: Wide Area Work Flow
(WAWF) and Electronic Funds Transfer
(EFT).
Perhaps item tracking via RFID.
38. DOING BUSINESS WITH
GOVERNMENTS AND THEIR PRIME
CONTRACTORS REQUIRES
COMMITMENT AND FOCUS, BUT IT
CAN BE DONE. ABOUT 15,000
SMALL BUSINESSES RECEIVE THEIR
FIRST FEDERAL GOVERNMENT
CONTRACT EACH YEAR. IF THEY
CAN DO IT, YOU CAN TOO.
40. CONTRACTING LEGAL OVERVIEW
◊ Commercial: Uniform Commercial Code
and common law. (Subcontracts.)
◊ Federal government: Many statutes and
regulations for agencies and vendors that
dictate things such as:
How an agency can solicit a contract.
How an agency can negotiate or award a
contract.
What costs the agency will reimburse.
How a vendor must account for costs.
Vendors’ socio-economic obligations.
41. SOME EARLY FEDERAL HISTORY
◊ The Armed Services Procurement Act:
Governs acquisitions by defense
agencies.
◊ Federal Property and Administrative
Services Act:
Governs acquisitions by civilian
agencies.
◊ Competition in Contracting Act:
Requires federal agencies to seek and
obtain "full and open competition"
wherever possible.
42. MORE FED HISTORY: FASA / FARA
◊ Established commercial items as preferred
products.
◊ Micro Purchase (Under $3,000):
Sole source using a government credit
card. Same day sales cycle.
◊ Simplified Acquisition Purchase ($3,000-
$150,000):
Small business focus.
◊ Large Purchase (Over $150,000):
Formal documentation of procurement.
43. THE FEDERAL ACQUISITION BIBLE: “FAR”
◊ The Federal Acquisition Regulation (FAR)
contains the rules governing the federal
contracting process:
See:
◊ Federal departments may have their own
supplements, for example:
DOD: Defense Federal Acquisition
Regulation Supplement (DFARS).
Navy: Navy Marine Corps Acquisition
Regulation Supplement (NMCARS).
44. FAR “CLAUSES” IN CONTRACTS
◊ Clauses = terms and conditions.
◊ Not uncommon for a typical contract to
contain 50-75 standard FAR clauses.
◊ Many, by regulation, are non-negotiable.
◊ A mandatory contract clause that affects
fundamental acquisition policy will be read
into the contract even where the
government inadvertently omitted it.
◊ Clauses may or may not “flow down” from
prime contractors to subcontractors.
45. FAR CONTRACTING UNIQUENESS
◊ Many government contract clauses have
no commercial equivalents.
◊ Three of the more prominent unique
clauses:
Termination for Convenience
Changes
Default
◊ Good overview @ findlaw.com:
46. FAR EXCEPTIONS
◊ Federal Aviation Administration (FAA).
◊ United States Postal Service (USPS).
◊ Some “quasi-governmental” agencies:
Tennessee Valley Authority (TVA).
◊ Beyond FAR (an example):
Federal Information Processing
Standards
Understand the requirements of your
particular contracting agency!
47. PENNSYLVANIA CONTRACTING REGULATIONS
◊ The Pennsylvania Procurement Handbook:
Online only; no hardcopy.
Part 1-Policies & Guidelines.
Part 2-Procurement of Supplies
Procedures.
Part 3-Procurement of Services
Procedures.
Part 4-Procurement of Design &
Construction Services.
◊ Title 62 Procurement.
48. THE RULES OF DOING BUSINESS
WITH GOVERNMENTS ARE
DIFFERENT FROM THE COMMERCIAL
ARENA. IT IS CRITICAL TO KNOW
HOW THE PROCESS WORKS WITH
EACH CONTRACTING AGENCY!
50. FEDS: CENTRAL CONTRACTOR REGISTRATION
◊ CCR: The primary supplier database for
the Federal government.
◊ Collects data from suppliers, validates and
stores this data, and makes it available to
government acquisition agencies.
◊ Companies must be registered prior to
contract or purchase agreement award.
See:
51. CCR ID NUMBERS
◊ Data Universal Numbering System
(DUNS):
Unique 9 character identification
number provided by Dun & Bradstreet.
◊ DUNS + 4: Affiliates or divisions.
◊ Commercial and Government Entity
(CAGE) Code: 5 digit code used to ID a
specific facility/location.
◊ U.S. Tax Identification Number (TIN): 9
digit income tax number issued by the
IRS.
52. CCR COMPANY INFORMATION
◊ Name, DBA, address, date started, date FY
closes, average # employees, annual
revenue.
◊ Corporate status:
Choose one: Sole proprietorship, etc.
◊ Business type:
Check all that apply: Small business,
veteran owned business, nonprofit
organization, etc.
53. CCR COMPANY CLASSIFICATION CODES
◊ North American Industry Classification
System (NAICS) Code:
Used to classify business establishments
by their primary type of activity for the
purpose of collecting, analyzing, and
publishing statistical data related to the
U.S. business economy.
◊ Note: The NAICS Codes you use in your
CCR profile do NOT limit you to what you
can bid on. Also, the NAICS on a Federal
solicitation will determine your size
classification for that solicitation.
54. CCR COMPANY CLASSIFICATION CODES
◊ Federal Supply Classification (FSC) and
Product Service Code (PSC): Codes used
by government buying offices to classify
and identify the products, supplies, and
services that they buy.
See:
55. OTHER CCR INFORMATION
◊ Electronic Funds Transfer (EFT)
Information:
ABA Routing #, Account #, Authorization
date, bank Automated Clearinghouse
Coordinator.
◊ Registration Acknowledgement/Point of
Contact:
Receives Trading Partner Identification
Number (TPIN).
56. CCR+: DYNAMIC SMALL BUSINESS SEARCH
◊ CCR Perk: Automatic entry into the
Dynamic Small Business Search (formerly
“PRO-Net”).
◊ A searchable database of small businesses
used by government buyers, prime
contracting officers, and others to identify
needed products and services.
◊ The. BEST. Business. Directory. Ever.
See:
57. ANOTHER FED PREREQUISITE: ORCA
◊ Online Representations and Certifications
Application (ORCA):
Defines vendors in areas such as
business size, cost accounting
standards, past debarments, and
company ownership.
Replaces paper-based Reps and Certs
required each time a contract is bid.
See:
58. SBA SOCIO-ECONOMIC CERTIFICATIONS
◊ Woman-owned (WOSB): Owned 51% or
more by a woman or women.
Self or 3rd party certifying.
Set asides.
Info at the SBA Office of Women's
Business Ownership page.
◊ HUBZone: Historically Underutilized
Business Zone.
SBA certified.
Set asides.
Info at the SBA HUBZone page.
59. SBA SOCIO-ECONOMIC CERTIFICATIONS
◊ Veteran-owned: Owned 51% by a
veteran(s):
Self certifying.
No set asides.
Info at the SBA Office of Veterans
Business Development page.
◊ Service-disabled veteran-owned (SDVOB):
Owned 51% by a service-disabled
veteran(s).
VA certifies disabled status.
Set asides.
Info at the U.S. Department of Veterans
Affairs page.
60. SBA SOCIO-ECONOMIC CERTIFICATIONS
◊ Small Disadvantaged Business: Owned
51% by one or more individuals who are
socially (racial/ethnic prejudice, cultural
bias) and economically (diminished capital
and credit opportunities) disadvantaged:
Self certifying.
No set asides.
Info at the SBA Small Disadvantaged
Business page.
61. SBA SOCIO-ECONOMIC CERTIFICATIONS
◊ 8(a): Ownership same as SDB:
Nine year participation period.
Provides access to a broad scope of SBA
services, not just contracts.
SBA certified.
Set asides.
Mentor-Protégé program. (Note:
Additional non 8(a) MP programs exist.)
Info at the SBA 8(a) Business
Development Program page.
62. OTHER FEDERAL REGISTRATIONS
◊ GSA Schedules.
◊ Some Federal entities have additional
processes, e.g., the Navy.
See:
◊ Subcontracting to prime contractors
often requires vendor registration with
the prime.
See:
63. PENNSYLVANIA REGISTRATION
◊ PA DGS registered prior to bidding on PA
DGS solicitations. Similar to CCR.
◊ PA DGS Woman or Minority Owned
Enterprise (WBE/MBE):
PA equivalent to SBA WOSB/SDB
socio-economic certifications with
similar restrictions.
No set asides. Additional “points”
awarded on proposals.
◊ PennDOT registered prior to bidding on
PennDOT solicitations.
64. DOING WORK WITH GOVERNMENTS
AND THEIR CONTRACTORS
REQUIRES A VARIETY OF
REGISTRATIONS AND
CERTIFICATIONS. (YOUR LOCAL
PTAC CAN HELP YOU THROUGH
THE “PAPERWORK.”)
66. MARKETING & SALES STRATEGY
◊ ID your core competencies. “We do
anything and everything” is TKOD.
◊ ID and target relevant buyers.
◊ Prepare marketing collateral: #1 with a
bullet is the Capabilities Statement.
◊ Determine procurement cycles if they
exist.
◊ “Meet and Greet” the right people:
Contracting Officers, Program Managers, End
Users, Internal “Champions,” etc.
◊ Follow-up, follow-up, follow-up . . .
67. FINDING LEADS: ELECTRONICALLY
◊ FedBizOpps.
◊ PA e-Marketplace.
◊ Bidmatching services:
Your company profile is automatically
compared to solicitations and you are
notified of those that appear relevant.
◊ Subcontracting: Prime contractor
websites or SBA’s Sub-NET.
68. FINDING LEADS: PEOPLE
◊ Agency & Prime Contractor Small Business
Specialists (Office of Small &
Disadvantaged Business Utilization, Small
Business Liaison Officer):
Most government agencies and larger
prime contractors have procurement
offices with specialists that work with
small businesses.
Can provide information about the
agency or prime, what they buy, and
how to do business with them.
◊Trade shows, conferences, etc.
69. THE BIDDING PROCESS
◊ Get the bid/solicitation package:
From the web.
Contact the buyer directly.
◊ Review the bid carefully!
When submitted, it becomes your
contract.
◊ Request a “buy history” if one is available.
◊ Get clarification, in writing, of ambiguities
or mistakes in the bid package.
70. THE BIDDING PROCESS
◊ Attend pre-bid meetings.
◊ Do a walk-through if possible
(construction and service type contracts).
◊ Prepare the Bid/Proposal:
Get key players involved in preparing
your bid.
Understand the rules/details that apply
to your particular procurement
opportunity.
Follow the prescribed procedures for the
bid exactly.
71. THE BIDDING PROCESS
◊ Prepare the Bid/Proposal (cont.)
Get technical data: specifications,
standards, drawings, engineering design
and manufacturing documents.
Develop competitive pricing.
Write your bid/proposal.
Have another knowledgeable party
proofread your bid/proposal.
Questions should be directed to the
Contracting Officer.
◊ Submit Your Bid on Time!
72. YOUR EVALUATION: BID EVALUATION PROCESS
◊ Your bid meets all essential requirements,
including exact conformance to specs,
drawings, materials, delivery dates, etc.
◊ Pre-Award Survey:
Technical and Production Capability.
Performance Record.
Quality Control Systems.
Financial Stability.
Qualifying Supplier Capability.
73. YOU’VE WON A CONTRACT! NOW WHAT?
◊ Re-read the contract.
◊ Record important contacts.
◊ Resolve any questions.
◊ Keep accurate records.
◊ Determine internal responsibilities.
◊ Issue supply orders and plan production.
◊ Produce/provide the product/service.
◊ Review quality control program.
◊ Get paid.
74. THERE ARE NUMEROUS STEPS
INVOLVED FROM THE TIME YOU
BEGIN LOOKING FOR AN
OPPORTUNITY UNTIL YOU ARE
ACTUALLY PAID FOR YOUR WORK.
IT TAKES ORGANIZATION AND
DISCIPLINE TO BE SUCCESSFUL.