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Targeting and Winning Federal
           Contracts


          CINCINNATI AMA
              B2B SIG
         NOVEMBER 12, 2009


            KEN THOMAS
           ROBBINS, INC.
Is no different than targeting and winning private contracts



                        Sort of……
$500,000,000,000
The Federal Government

• Procures $500,000,000,000 / yr
  – 30% Products / 70% Services
  – By law must pay in <30 days (often pays in 10-14)
  – “Use it or lose it mentality” still applies
  – Federal Acquisition Regulation (FAR) stipulates all solicitations <$100k where
    research shows that two or more small businesses are capable of performing the
    work, be set aside exclusively for small businesses to compete
• 39% ($195 B) Small Business Set Aside Goals
  – 20% Small Business
  – 6% SDB and 8(a)
  – 5% woman owned
  – 3% HUBZone (Historically Underutilized Business Zone)
  – 3% service disabled veteran owned
  – 2% veteran owned

• >1,100 Federal Agencies
Small Business Defined

• Depends on the type of business you are in
  • NAICS Codes

• Based on # of Employees or annual Revenue
  – Flooring Manufacturers - <500 employees
     •   500 employees is limit for ~75% of manufacturers
 –   Flooring Contractors - <$14MM/yr
 –   Wholesalers - <100 employees
 –   Marketing consulting, Ad agencies, PR firms etc. - <$7MM/yr
     (3 yr average)
Getting Started

D-U-N-S Number
 Universal 9-digit business identifier
 Obtain thru www.ccr.gov free
Central Contractor Registration
Small Business Designations &/0r Registration (if
req’d)
Online Representation and Certifications Application
(ORCA)
Targeting And Winning Federal Contracts
Targeting And Winning Federal Contracts
Targeting And Winning Federal Contracts
Getting Support

Small Business Administration
Office of Small & Disadvantaged Business Utilization
(OSDBU)
 Each agency has an OSDBU, which is there specifically to help
 you.
 Forecast of Procurement Opportunities
Procurement Technical Assistance Centers
Minority Business Development Agencies
And many more…….
Targeting And Winning Federal Contracts
Targeting And Winning Federal Contracts
Fiscal Year 2009 Goals                                                                                                                        As of 10/3/08

                                                                     Department of the Interior

BUSINESS ECONOMIC DEVELOPMENT PROGRAMS
TOTAL DOLLARS                                                        $2,574,292,893          $2,687,126,635       $2,456,713,076                     FY'09
                                                                                                                                                  SUGGESTED
                                                                          * FY'06 Pct.             * FY'07 Pct.        FY'08 Pct.   Average        Pct. GOALS

Small Business                                              Goal :         56.10%                   56.10%              55.49%      55.90%          55.00%
                                                          Actual :         54.10%                   58.80%              55.34%      56.08%


Small Disadvantaged Business                                Goal :         10.80%                   19.00%               5.00%      11.60%           5.00%
                                                          Actual :         17.40%                   21.30%              19.96%      19.55%


8(a) Program                                                Goal :          8.30%                    8.30%               2.50%      6.37%            2.50%
                                                          Actual :         12.10%                   13.40%              12.48%      12.66%


HUBZone                                                     Goal :          6.00%                    6.00%               3.00%      5.00%            3.00%
                                                          Actual :          9.90%                   11.30%              10.36%      10.52%


Women Owned Business                                        Goal :          6.70%                    6.70%               5.00%      6.13%            5.00%
                                                          Actual :          9.30%                   10.50%              10.70%      10.17%




Service Disabled Veteran Own Sm/Bus.                        Goal :          3.00%                    3.00%               3.00%      3.00%            3.00%
                                                          Actual :          1.30%                    1.40%               2.58%      1.76%




* FY'06 & 07 data was reproduced on September 10, 2008.
  (This was a result of the corrections made because of incorrect coding of size determination.)


Percentages in RED indicates a goal not met.
Finding Opportunities

25% of Small Business Set-asides had no bidders
25% of Small Business Set-asides had one bidder
Targeting And Winning Federal Contracts
Targeting And Winning Federal Contracts
Targeting And Winning Federal Contracts
FBO search example - Small Business set asides

541430 - Graphical        541850 – Display
Design Services           Advertising
541630 – Marketing        541860 – Direct Mail
Consulting                Advertising
541618 – Other            541870 – Advertising
Management Consulting     Materials Distribution
541810 – Advertising      541890 Other services
Agencies                  related to advertising
541820 – PR Agencies      541910 – Mkt Rsch &
541830 – Media buying     Public Opinion Polling
Agencies                  541920 – Commercial
                          Photography
Targeting And Winning Federal Contracts
Targeting And Winning Federal Contracts
A Word About GSA Schedules

GSA = Purchasing Agent
Available for use by every federal agency and some states
Purchased $35.8 B in ‘07 and increasing
Somewhat cumbersome and time consuming to pursue
  Estimated 200 hours and 12-18 month process
Pre-approved, negotiated pricing
Meets all gov’t competitive requirements
Favors small businesses
Often minimizes the # of competitors
  Can be contracted directly with Schedule holder if <$100k w/o further
  competition
  Must compete to 3 schedule holders if >$100k
Targeting And Winning Federal Contracts
How the Federal Gov’t Buys

“Use it or lose it” still exists
  Understand Fiscal Year seasonality in purchasing behavior
Micro-Purchases
  <$3k
  No competition required
Simplified Acquisitions
  <$100k
  Can be competed among at least 3 sources
  Small Businesses preferred
  If less than $25k usually not posted
How the Federal Gov’t Buys

Sole Sourced
Sealed Bidding (aka “Invitation for Bid)
 Low bid wins, firm fixed price
Negotiated Procurement
 “Best Value” – cost/technical tradeoff
ID/IQ Contracts
Multiple Award Contracts
 GSA schedule for example
Solicitations
Combined synopsis/solicitation
Invitation for Bid (IFB)
Request for Proposal (RFP)
Request for Quote (RFQ)
  Key oppty to use Quals to promote “best value” not just cost
Sources Sought
  Agency seeking info about industry capabilities to determine set-
  asdies
  sole source opportunity
Request for Information (RFI)
  Seeking info before putting out solicitation
  Opportunity to “shape the bid” to your advantage
Decide How to Engage

Prime Contractor
 Large Primes are required to achieve Small Business Goals
 Many GC’s have people dedicated to ensuring they meet the goals
Subcontractor
 Don’t necessarily have to have their CCR, but having one helps
 separate you from other subs who don’t
 Utilizing your small business status is very helpful to the GC’s as they
 can include this info in their bids
Individual Re-seller
 Brokers a deal as a “small business” seeking and sourcing products
 and services provided by others who would not qualify as a small
 business.
 Perfect for the entrepreneur. Anyone can become a Re-seller.
Positioning your company

Market your smallness
Create a Capability Statement
  Basic company overview
  NAICS codes
  Unique Selling Proposition
  Reference List - Projects
  List DUNS and CAGE #’s
  Small Business Status
  GSA Contract Number and GSA logo if applicable
Develop relationships:
  Contracting Officer
  Program Manager
  General Contractors / Prime Contractors
Develop a government specific web site or landing page:
  Averagejoesgovernmentbusiness.com

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Targeting And Winning Federal Contracts

  • 1. Targeting and Winning Federal Contracts CINCINNATI AMA B2B SIG NOVEMBER 12, 2009 KEN THOMAS ROBBINS, INC.
  • 2. Is no different than targeting and winning private contracts Sort of……
  • 4. The Federal Government • Procures $500,000,000,000 / yr – 30% Products / 70% Services – By law must pay in <30 days (often pays in 10-14) – “Use it or lose it mentality” still applies – Federal Acquisition Regulation (FAR) stipulates all solicitations <$100k where research shows that two or more small businesses are capable of performing the work, be set aside exclusively for small businesses to compete • 39% ($195 B) Small Business Set Aside Goals – 20% Small Business – 6% SDB and 8(a) – 5% woman owned – 3% HUBZone (Historically Underutilized Business Zone) – 3% service disabled veteran owned – 2% veteran owned • >1,100 Federal Agencies
  • 5. Small Business Defined • Depends on the type of business you are in • NAICS Codes • Based on # of Employees or annual Revenue – Flooring Manufacturers - <500 employees • 500 employees is limit for ~75% of manufacturers – Flooring Contractors - <$14MM/yr – Wholesalers - <100 employees – Marketing consulting, Ad agencies, PR firms etc. - <$7MM/yr (3 yr average)
  • 6. Getting Started D-U-N-S Number Universal 9-digit business identifier Obtain thru www.ccr.gov free Central Contractor Registration Small Business Designations &/0r Registration (if req’d) Online Representation and Certifications Application (ORCA)
  • 10. Getting Support Small Business Administration Office of Small & Disadvantaged Business Utilization (OSDBU) Each agency has an OSDBU, which is there specifically to help you. Forecast of Procurement Opportunities Procurement Technical Assistance Centers Minority Business Development Agencies And many more…….
  • 13. Fiscal Year 2009 Goals As of 10/3/08 Department of the Interior BUSINESS ECONOMIC DEVELOPMENT PROGRAMS TOTAL DOLLARS $2,574,292,893 $2,687,126,635 $2,456,713,076 FY'09 SUGGESTED * FY'06 Pct. * FY'07 Pct. FY'08 Pct. Average Pct. GOALS Small Business Goal : 56.10% 56.10% 55.49% 55.90% 55.00% Actual : 54.10% 58.80% 55.34% 56.08% Small Disadvantaged Business Goal : 10.80% 19.00% 5.00% 11.60% 5.00% Actual : 17.40% 21.30% 19.96% 19.55% 8(a) Program Goal : 8.30% 8.30% 2.50% 6.37% 2.50% Actual : 12.10% 13.40% 12.48% 12.66% HUBZone Goal : 6.00% 6.00% 3.00% 5.00% 3.00% Actual : 9.90% 11.30% 10.36% 10.52% Women Owned Business Goal : 6.70% 6.70% 5.00% 6.13% 5.00% Actual : 9.30% 10.50% 10.70% 10.17% Service Disabled Veteran Own Sm/Bus. Goal : 3.00% 3.00% 3.00% 3.00% 3.00% Actual : 1.30% 1.40% 2.58% 1.76% * FY'06 & 07 data was reproduced on September 10, 2008. (This was a result of the corrections made because of incorrect coding of size determination.) Percentages in RED indicates a goal not met.
  • 14. Finding Opportunities 25% of Small Business Set-asides had no bidders 25% of Small Business Set-asides had one bidder
  • 18. FBO search example - Small Business set asides 541430 - Graphical 541850 – Display Design Services Advertising 541630 – Marketing 541860 – Direct Mail Consulting Advertising 541618 – Other 541870 – Advertising Management Consulting Materials Distribution 541810 – Advertising 541890 Other services Agencies related to advertising 541820 – PR Agencies 541910 – Mkt Rsch & 541830 – Media buying Public Opinion Polling Agencies 541920 – Commercial Photography
  • 21. A Word About GSA Schedules GSA = Purchasing Agent Available for use by every federal agency and some states Purchased $35.8 B in ‘07 and increasing Somewhat cumbersome and time consuming to pursue Estimated 200 hours and 12-18 month process Pre-approved, negotiated pricing Meets all gov’t competitive requirements Favors small businesses Often minimizes the # of competitors Can be contracted directly with Schedule holder if <$100k w/o further competition Must compete to 3 schedule holders if >$100k
  • 23. How the Federal Gov’t Buys “Use it or lose it” still exists Understand Fiscal Year seasonality in purchasing behavior Micro-Purchases <$3k No competition required Simplified Acquisitions <$100k Can be competed among at least 3 sources Small Businesses preferred If less than $25k usually not posted
  • 24. How the Federal Gov’t Buys Sole Sourced Sealed Bidding (aka “Invitation for Bid) Low bid wins, firm fixed price Negotiated Procurement “Best Value” – cost/technical tradeoff ID/IQ Contracts Multiple Award Contracts GSA schedule for example
  • 25. Solicitations Combined synopsis/solicitation Invitation for Bid (IFB) Request for Proposal (RFP) Request for Quote (RFQ) Key oppty to use Quals to promote “best value” not just cost Sources Sought Agency seeking info about industry capabilities to determine set- asdies sole source opportunity Request for Information (RFI) Seeking info before putting out solicitation Opportunity to “shape the bid” to your advantage
  • 26. Decide How to Engage Prime Contractor Large Primes are required to achieve Small Business Goals Many GC’s have people dedicated to ensuring they meet the goals Subcontractor Don’t necessarily have to have their CCR, but having one helps separate you from other subs who don’t Utilizing your small business status is very helpful to the GC’s as they can include this info in their bids Individual Re-seller Brokers a deal as a “small business” seeking and sourcing products and services provided by others who would not qualify as a small business. Perfect for the entrepreneur. Anyone can become a Re-seller.
  • 27. Positioning your company Market your smallness Create a Capability Statement Basic company overview NAICS codes Unique Selling Proposition Reference List - Projects List DUNS and CAGE #’s Small Business Status GSA Contract Number and GSA logo if applicable Develop relationships: Contracting Officer Program Manager General Contractors / Prime Contractors Develop a government specific web site or landing page: Averagejoesgovernmentbusiness.com