Introduction to Government Contracting
- 1. www.mnptac.org 1 Introduction toIntroduction to Government ContractingGovernment Contracting SADBOC Procurement Fair 4/30/14SADBOC Procurement Fair 4/30/14 Earle Brown Heritage Center, Brooklyn Center, MNEarle Brown Heritage Center, Brooklyn Center, MN ______________________________________ John Kilian PTAC Area Manager jkilian@mnptac.org 612-259-6586
- 2. www.mnptac.org 2 Workshop Objectives • Overview of PTAC. • Explain Government “Marketplace”. • Review the basic procurement process, registrations/certifications related to doing business with the Government. • Provide Key items to ensure success in the Federal, State and/or Local marketplace. • Next Steps – You can begin Today! _________________
- 3. www.mnptac.org 3 About PTAC Procurement Technical Assistance Center (PTAC) • Nationwide federally funded program by the Defense Logistics Agency (DLA). Our focus is assisting Minnesota businesses to: Understand the government procurement process, practices and methods. Improve competitiveness and business development capabilities through strategic marketing, research and contacts. Identify, secure, maintain and ultimately help grow current government contracts and future awards. • PTAC extends its services and support to all MN based business. • One-Time Fee ($250) to become lifetime PTAC client. _______________
- 4. www.mnptac.org 4 MN’s Statewide Presence NORTHERN NORTHERN CENTRAL TWIN CITIES METRO SOUTHEASTERN SOUTHWESTERN ____________________
- 5. www.mnptac.org 5 Services: • Market Opportunity Assessment • Registration / Certification Assistance • Prime and Subcontracts • Bid/Proposal Guidance • Training • Research Procurement Histories • Electronic Bid Match Service About PTAC _______________
- 6. www.mnptac.org 6 Bid Match Service: • Automatic electronic searching of 1500+ federal, state, and local govt. websites. • Website surfing “not required”. • Requires identification of key words/phrases, product/service info, NAICS codes, FSC/PSC codes. • Search criteria can be “filtered” geographically by area, region, states, agencies etc. • Web-based or E-mail delivery. About PTAC _______________
- 8. www.mnptac.org 8 Training Seminars: • Introduction to Government Contracting • SAM Registration • Capability Statements and More • Selling to the Government –“Advanced Successful Strategies” • Responding to Solicitations • GSA Schedules – “A Business Perspective” • Selling to State of Minnesota • Doing Business with the US Army Corps of Engineers • Military Packaging • Advanced Contractor Series: A Legal Perspective About PTAC _______________
- 9. www.mnptac.org 9 2013 Results: • Since 1991, PTAC has assisted thousands of Minnesota companies in securing and/or maintaining government contracts! • PTAC Fiscal Year 2013: Worked with 1,101 clients throughout Minnesota Sponsored 56 workshops with 2,344 attendees Consulted with 413 new business owners with 2,933 follow-up meetings Attracted 900+ attendees to the 14th Annual Procurement Fair & 150 to Greater MN Procurement Fair. Assisted in securing 3,069 contracts totaling $472.2million 151 individual companies received awards! About PTAC _______________
- 10. www.mnptac.org 10 • The Federal Govt. purchases close to $500B of goods and services annually. • Market includes the federal, state and local agencies (cities, counties, school districts, libraries, etc.) • Extensive procurement regulations to comply with and lengthy sales “cycle”. • Small Business subcontracting opportunities available. • Set-Aside, Disadvantage Preference programs. Government Market Place _____________________
- 11. www.mnptac.org 11 $460+ Billion Total Contract Awards – 2013* • $308B = Department of Defense • $ 24B = Department of Energy • $ 20B = Department Health & Human Services • $ 18B = Department of Veterans Affairs • $ 14B = NASA • $ 12B = Department of Homeland Security • $ 9B = GSA • $ 7B = Department of State • $ 7B = Department of Treasury • $ 7B = Department of Justice • $ 6B = Department of Transportation • $ 5B = Department of Agriculture • $ 5B = Agency for International Development • $ 4B = Department of Interior • $ 3B = Department of Education Minnesota’s Share = $3.0B *As reported in USAspending.gov Government Market Place _____________________
- 12. www.mnptac.org 12 “What” does the government buy…….everything! • Products: Computer hardware/software, medical/dental supplies, office supplies/furniture, foods, machined parts, oil, aviation equipment, clothing, war fighter supplies, etc. • Services: Consulting, staffing, training, engineering, architecture, construction related, web development, medical coding meeting, planning, debt collection, social media, hazardous cleaning, janitorial, security services, etc. • Innovative Solutions: New technology, “green” solutions, software development, unique devices, new processes, etc. Government Market Place _____________________
- 13. www.mnptac.org 13 “How” does the Federal government Buy? - Agency Inventories - Excess from other Agencies - Federal Prison Industries - Ability One (Blind/Severely Handicapped) - GSA/DLA Stock Inventory - GSA Schedules - Open Competition (“Solicitations”) Government Market Place _____________________
- 14. www.mnptac.org 14 SOLICITATIONS: “Mandated method, requiring a publically posted announcement of the government’s intent to purchase from the business community.” FEDERAL: FedBizOpps The single government point-of-entry for federal government procurement opportunities over $25,000. www.fbo.gov Government Market Place _____________________
- 15. www.mnptac.org 15 Government Market Place www.mnptac.org http://www.fbo.gov
- 16. www.mnptac.org 16 Military Solicitation sources: • Department of Defense (DoD) – www.defense.gov/ Army, Marine Corps, Navy, Air Force, National Guard, Coast Guard, Base Exchange, Commissary • Defense Logistics Agency (DLA) – www.dla.mil/ • DoD Small Business Assistance - www.acq.osd.mil/osbp/ Government Market Place _____________________
- 17. www.mnptac.org 17 Defense Logistic Agency (DLA): • DLA Philadelphia (formerly DSCP): http://www.troopsupport.dla.mil/ - Troop Support – i.e.) Clothing and Textiles, Construction, Weapon System Equipment, Spare Parts, Medical and Subsistence • DLA Richmond (formerly DSCR): http://www.aviation.dla.mil/ - Aviation and all things related • DLA Columbus (formerly DSCC/DESC): http://www.landandmaritime.dla.mil/ -Land & Maritime and Energy – i.e.) Vehicular spare parts, electronics, piece parts, energy products, petroleum, etc. Government Market Place _____________________
- 18. www.mnptac.org 18 Government Market Place www.ptac‐meda.net https://www.dibbs.bsm.dla.mil/default.aspxhttps://www.dibbs.bsm.dla.mil/default.aspx
- 19. www.mnptac.org 19 Commercial (COTS) Products/Services: General Services Administration (GSA): GSA supports all Federal agencies, to obtain the products, services, consulting, space, real estate, and vehicles they need from federal and/or commercial sources. GSA Service Organizations: Federal Acquisition Service (FAS): Multiple Awards Schedules (MAS) / Federal Supply Schedules (FSS) Public Building Service (PBS): Real Estate, Facilities, Design (A/E) & Construction Government Market Place _____________________
- 20. www.mnptac.org 20 GSA – Federal Supply Schedules: • GSA Schedules – Potential 20 year contract Contract pre-negotiates pricing, terms and conditions. Contract is “empty” IDIQ – Indefinite Delivery Indefinite Quantity GSA negotiates and administers contract. • Any federal agency can place orders against the GSA contract. • Must consider at least three schedules before placing orders. • Contractor collects/pays GSA a quarterly Industrial Funding Fee (IFF) • $46B+ spent on Schedules in 2013 --- Over 23,000 Vendors! (Incl. VA) • Vendor MUST market contract…no guarantee of orders! http://www.gsa.gov/portal/category/100611 Government Market Place _____________________
- 21. www.mnptac.org 21 Doing Business with the Government www.ptac‐meda.net http://www.gsaelibrary.gsa.gov/ElibMain/home.do
- 22. www.mnptac.org 22 State & Local Solicitation resources: • State of MN – http://www.mmd.admin.state.mn.us/solicitations.htm • U of M – http://purchasing.umn.edu/ • City of Minneapolis – http://www.ci.minneapolis.mn.us/business/business_doing_busi ness_with_city • City of St. Paul & Ramsey County – http://www.stpaul.gov/index.aspx?NID=221 • Hennepin County – http://hennepin.us/ click on “Business” • State and Local Government on the Net - http://www.statelocalgov.net/index.cfm Government Market Place _____________________
- 23. www.mnptac.org 23 Government Market Place www.mnptac.org http://www.mmd.admin.state.mn.us/solicitations.htm
- 24. www.mnptac.org 24 Government Market Place http://www.statelocalgov.net/index.cfm
- 25. www.mnptac.org 25 What are the “Rules” with the Govt? • Federal government - Federal Acquisition Regulations (FAR) www.acquisition.gov/Far/ • State government – 50 different rule books! www.statelocalgov.net What are the Contracting Methods? • Micro-purchases • Simplified Procedures • Sealed Bidding • Contract Negotiations • Consolidated/Co-operative Purchasing Programs Government Market Place _____________________
- 26. www.mnptac.org 26 Federal Government “Markets”. Open Market • Solicitations • Electronic Malls Hidden Market • Purchase or Smart Cards • Small/Micro Purchases • GSA Schedules • Sole Source/Follow-on awards • Prime Contractor/Teaming • Cooperative Purchasing • Federal Strategic Source Initiative (FSSI) • Government Wide Area Contract (GWAC) Government Market Place _____________________
- 27. www.mnptac.org 27 Government Sales history/forecasts? • Federal Procurement Data Systems (FPDS) https://www.fpds.gov • USA Spending www.usaspending.gov • Federal Agency Forecasts https://www.acquisition.gov/comp/procurement_forecasts/index.html • Office of Small and Disadvantaged Business Utilization (OSDBU) http://www.osdbu.gov/members.html • General Services Administration (GSA) https://ssq.gsa.gov “GSA Advantage & SSQ Reports” Government Market Place _____________________
- 28. www.mnptac.org 28 Government Market Place www.mnptac.org https://www.fpds.gov
- 30. www.mnptac.org 30 Doing Business with the Govt! 1st Question ---- Am I “Large” or “Small” business? • SBA sets the size standards, and matches them to each of the NAICS codes! • Small Business Size Standards: http://www.sba.gov/content/table-small-business-size-standards • NAICS Codes: http://www.census.gov/eos/www/naics Searchable by Keyword, and may have more than one! Many Bid opportunities are posted based on NAICS code! • “Rule of Thumb”: • Manufacturing –1 year average number of employees (usually < 500) • Services – 3 year average revenues, but differs by industry (varies from $7M - $100M) _________________________
- 31. www.mnptac.org 31 Large or Small business…what’s the big deal? • Set-Asides --- restricts competitors! • Agencies and Primes must subcontract! Current Subcontracting Goals: Goal* Actual** • Small Business 23% 22.2% • Small Disadvantage (incl. 8(a)) 5% 8.0% • Women-Owned 5% 4.0% • Veteran / Service Disabled-Owned Vet 3% 3.0% • HUBZone 3% 2.0% * Statutory Goals – Actual goals vary by agency/prime ** Source data – SBA Goaling Report 2012 Doing Business with the Govt!_________________________
- 32. www.mnptac.org 32 Large Business Subcontracting Plans: •Large business receiving contracts over $650K, ($1.5M for construction) must submit a subcontracting plan – subject to annual approval by the C.O. •The plan requires specific goals for each of the small business categories. •Contractor must designate a Small Business Liaison Officer (SBLO). •Listing of SBLO’s, by Contractor, by State at: http://www.sba.gov/category/navigation- structure/contracting/contracting-opportunities/sub- contracting/subcontracting-opportunities-directory Doing Business with the Govt!_________________________
- 33. www.mnptac.org 33 How can I become a government contractor? Register your business! (Federal) 1. DUNS - http://fedgov.dnb.com/webform or 1-866-705-5711 2. NAICS - http://www.census.gov/eos/naics/ 3. DSBS - http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm 4. SAM - http://www.sam.gov (Mandatory with Federal.) Doing Business with the Govt!_________________________
- 34. www.mnptac.org 34 Doing Business with the Government http://www.census.gov/eos/www/naics/
- 35. www.mnptac.org 35 Doing Business with the Government www.ptac‐meda.net http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
- 36. www.mnptac.org 36 Doing Business with the Government http://www.sam.gov
- 37. www.mnptac.org 37 REGISTRATION - Small Business – (Federal): • Small Business: (Self Certify) • Small Disadvantaged Business: (Self Certify) • Woman-Owned Small Business & EDWOSB: (Self Certify and SBA Application) • Veteran-Owned Small Business: (Self Certify/VA verified) • Service Disabled Veteran-Owned Small Business: (Self Certify / VA verified) • 8(a): (SBA Certified) • HUB-Zone Small Business: (SBA Certified) Doing Business with the Govt!_________________________
- 38. www.mnptac.org 38 REGISTATION - Small Business – (States): Minnesota Programs: (varies be state!): • Women’s Business Enterprise National Council (WBENC) • Disadvantaged Business Enterprise (DBE) • Targeted Group / Economically Disadvantaged (TG/ED) • Central Certification (CERT) • Midwest Minority Supplier Development Council (MMSDC) Doing Business with the Govt!_________________________
- 39. www.mnptac.org 39 REGISTRATION – Veterans (Fed & State): - Service-Disabled Veteran-Owned Small Businesses (SDVOB) - Veteran-Owned Small Businesses (VOSB) • CVE – Center for Veteran’s Enterprise - http://www.va.gov/osdbu/vip/step1.asp • VETERAN’S FIRST PROGRAM: Public Law 109-461 is a unique procurement program supporting veterans in business. This procurement program only applies to the Department of Veterans Affairs prime and subcontracting opportunities. They must first try to find SDVOSBs and then VOSBs. Other small business categories follow. Doing Business with the Govt!_________________________
- 40. www.mnptac.org 40 Doing Business with the Government http://www.va.gov/osdbu/vip/step1.asp
- 41. www.mnptac.org 41 Keys to Success! Know and understand your Customer! • What do they buy? • When do they buy it? • How & Why do they buy it? • Do they have funding today or next year? • Learn their preferred contracting methods? • How/When/Where to register? • Leverage Small Business preferences • It is a Business Development Challenge NOT a Sales initiative! • Know your Competition -- Understand Teaming, Subcontracting! • It can, and will, take time to work the “system”! • Research, Research and more Research! Doing Business with the Govt!_________________________
- 42. www.mnptac.org 42 Good News… We WON a Govt. contract!! Bad News… We WON a Govt. contract!! Requires Contractor to ensure: • On-going Contract Administration • Compliance with Contract Terms and Conditions • Reporting Contract Sales • Monitoring Subcontract/Prime Policies and Procedures • Timely Deliveries • Invoicing, Bidding, Modifications • Audits, Close-outs Doing Business with the Govt!_________________________
- 44. www.mnptac.org 44 Please visit the PTAC booth if you have questions or need more info! Thank You!____________