The ASBCs

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• The ASBCs
• of
• Government Contracting
• Make Your Plan/Work Your Plan
• Presented by
• Guy Timberlake, Chief Visionary Officer
• The American Small Business Coalition, LLC

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About The ASBC

• The American Small Business Coalition is a
  membership organization exclusively focused on
  supporting the development of relationships, best
  practices and market intelligence for companies
  doing business in the government sector. Our
  primary goal is ensuring that government agencies
  are able to identify viable and vetted companies
  who can support their mission requirements, and
  that those companies have access to an
  established and trusted community of current and
  retired leaders from Government and Industry.

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About The Facilitator

• Guy Timberlake is the Chief Visionary and Chief
  Executive Officer of The American Small Business
  Coalition.
• He has over twenty years of line experience in
  the federal sector with small and mid-size
  companies supporting Intelligence, Defense and
  Civilian agency mission requirements. Guy was
  recently selected as one of twenty-five honorees
  named as a recipient of the Washington Business
  Journal 2009 Minority Business Leader Awards.

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Todays Topic

• Make Your Plan/Work Your Plan
• Summary In this session, we will discuss topics
  and tactics company leaders should consider as
  they develop an approach for identifying,
  pursuing and capturing business opportunities
  with government agencies and their contractors.

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Start With The End In Mind

• All requirements are based on agency mission
• What is role of customer organization in agency
  mission?
• Is need based on agency or government-wide
  initiative?
• How is need currently being addressed?
• What inefficiencies or problems will be resolved?
• What other organizations or agencies have similar
  needs?
• How/when will needs be funded?
• How will needs be acquired (acquisition
  strategy)?
• What contractors are potential partners?
  Competition?

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What You Should Know

• Identifying your market segment
• Agencies (direct contracts)
• Prime Contractors (subcontracting)
• Contractors (teaming partners)
• MicroPurchase Threshold
• GSA SmartPay Program
• Simplified Acquisition Threshold
• Requirements contracts vs. contract vehicles
• BPA, IDIQ, SATOC, MAC, GWAC and the GSA Schedule
• The Lines of Business

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How big is this marketplace?

• More than 80,000 Governments counting Federal as
  one and each state as one
• More than 20 million employees and appointees.
• More than 30,000 townships
• Over 30,000 municipalities
• 3,000 counties
• 14,0000 special district governments
• Over 500 Indian tribes

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How big is this marketplace?

• More than 501B awarded overall in FY07
• More than 18.6B purchased via the GSA SmartPay
  Purchase Card (FY07)
• Nearly 70B in Small Business awards in FY07
• More than 30B in GSA Schedule sales
• More than 68B in Information Technology
  Spending in FY07

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What is a small business?

• Small Business Act is basis for socioeconomic
  programs
• Small Business is the primary designation for all
  companies that participate in SBA SocioEconomic
  Programs
• Specific requirements to be considered a small
  business for federal contracting
• Independently owned
• Primarily based in U.S. and/or contributing to
  tax base
• Organized for profit (non-profit/not-for-profits
  not SB)
• Cannot be controlled by non-U.S. entities
• Most programs are self-certifying

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What is a small business?

• Additional requirements for organizations
  participating in specific socioeconomic programs
• 8(a) Business Development Program
• HUBZone Program
• Service-Disabled Veteran Owned Small Business
  (SDVOSB)
• Principals must be U.S. Citizens
• Certifications issued by SBA (VA for SDVOSB)
• NOTE Small Disadvantaged Business Concern (SBD)
  Program certifications no longer processed by SBA
  as of 10/08

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What is a small business?

• Additional requirements for organizations
  participating in specific socioeconomic programs
• Native American
• Alaskan Native
• Hawaiian Islander/Asian Pacific
• Principals must be recognized by tribal
  organizations

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Not small businesses

• Non-Profit Organizations
• Entities must be organized for profit (Government
  Contracting)
• Franchises
• Small Business measurement is sum of all parts.
• Impacts socioeconomic participation due to
  Control and Influence
• Foreign Owned Entities
• Unless contributing to tax base
• Unless operating primarily in U.S.
• Cannot participate as other than Small Business
  if principals are not U.S. Citizens

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Prime Contractors

• Any contractor (other than SB) where acquisition
  is expected to exceed 550,000 (1,000,000 for
  construction) that has subcontracting
  possibilities (FAR Part 19 Small Business
  Subcontracting Program)
• Required to submit an acceptable subcontracting
  plan to include SB, WOSB, HUBZone, VOSB, SDVOSB,
  SDB, etc.
• NOTE FAR Part 19 Does not apply to GSA Schedule
  acquisitions

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Getting Started - Focus

• Where do you plan to do business
  (geographically)?
• What agencies are in that area?
• What is the mission of the agency?
• To which departments/sub-agencies are you
  relevant?
• What initiatives have been teed up by agency
  leadership?
• What programs are already underway (and funded)?
• What contractors (small, medium and large) are in
  there?
• What do you bring to the table?

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Market Segment - Focus

• What special conditions impact ability to service
  agency?
• How does agency procure offered goods and
  services?
• Current requirements contracts?
• Contract vehicles?
• Do your products fall in the Micropurchase
  threshold? Simplified Acquisition Threshold?

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Market Segment - Focus

• Is your offering purchased as-is or as part of
  solution?
• Leverage OSDBU/OSBP/SADBU and Small Business
  Specialists
• Ask potential customers (Government and Industry)
  which professional associations they are
  affiliated with
• Learn what publications they read such as
  Federal Times, Inside Defense, FCW.com,
  Washington Technology, GCN, Government Executive,
  GovernmentVAR and dont forget Federal News Radio
  for broadcast and internet coverage

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Procurement Thresholds

• Government has different rules based on value of
  individual requirements
• MicroPurchase Threshold (up to 3000.00) GSA
  SmartPay Purchase Card is payment method and
  contract vehicle.
• Simplified Acquisition Threshold (3k to 100K)
• Up to 25K is not required to be synopsized (fax,
  email or phone requests)
• Reserved for small business (not a set-aside)
• gt100K dictated by FAR and respective agency
  policies

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Acquisition Methods

• Governmentwide Contracts (open to all agencies)
• GSA Federal Supply Schedule
• Direct Award (GSA Schedule is a
  pre-competed/pre-negotiated contract-vehicle --
  based on specific agency rules)
• Synopsis (for consideration by scheduleholders)
• Limited Competition
• Open Competition
• Governmentwide Acquisition Contract (GWAC)
  (Information Technology Products/Services Only)

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Acquisition Methods

• Ways the Government buys
• GSA Federal Supply Schedule (orders placed are
  considered Full Open competed)
• Direct Award (GSA Schedule is a
  pre-competed/pre-negotiated contract-vehicle)
• Synopsis (for consideration by scheduleholders)
• Limited Competition
• Open Competition
• Not Required by GSA
• No FAR 19 Requirements for GSA Schedule

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Acquisition Methods

• Ways the Government buys
• Pre-Competed Agency Specific Contract Vehicles
• Blanket Purchase Agreements (BPAs)
• Simplified Acquisition lt 100K (Open Market)
• Open Market gt 100K (Competed)
• GSA Schedule based
• Definite and Indefinite Delivery Contracts (DQ -
  ID/IQs)
• Basic Ordering Agreements (BOAs)
• Single/Multiple Award Task-Order Contracts
  (SATOC/MATOC)

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What is a GSA Schedule?

• Contract vehicle awarded and administered by the
  U.S. General Services Administration (or VA for
  Medical)
• Evergreen Contracting (one five-year basic
  contract period and three five-year Evergreen
  option periods)
• Open Season
• Goods and Services available to federal/state
  agencies
• More than fifty schedules for various goods and
  services including JWOD/NIB/NISH and Corporate
  (not construction)
• Pricing considered fair and reasonable by GSA
• Not for everyone/every agency (Navy,
  Intelligence, etc.)
• Most Favored Customer Pricing

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OMB Lines of Business

• Case Management (CM)
• Financial Management (FM)
• Grants Management (GM)
• Human Resources Management (HR)
• Federal Health Architecture (FHA)
• Information Systems Security (ISS)
• Budget Formulation and Execution (BFE)
• Geospatial LoB
• IT Infrastructure (ITI)

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OMB Lines of Business

• When corporations merge, executives routinely
  consolidate functions that are duplicative. In
  doing so, executives look to consolidate the
  business processes and IT systems that support
  these functions. The idea is a company doesn't
  need two HR systems, two payment systems, two
  e-mail systems and so on.
• End result is to create economies of scale that
  present efficiencies that reduce unit costs.
• - Government ExecutiveThe Basics Lines of
  Business

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OMB Lines of Business

• -The Bush administration started off with the
  President's Management Agenda that tried to
  create a government focused on results and more
  accessible to citizens partly by expanding and
  improving the use of IT for the benefit of
  Americans.
• - Office of Management and Budget began analysis
  of five lines of business in 2004 to determine
  how these functions could comply with the
  agenda's call to expand electronic government.
• - Specifically, OMB analyzed how government
  executives could use technology in each line of
  business to cut costs and improve service to
  include consolidating computer networks and
  functions into a few agencies that would serve as
  service providers (known as shared service
  centers or SSCs).

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OMB Lines of Business

• - Government to Government
• The goal of the G2G portfolio is to forge new
  partnerships among levels of government. These
  partnerships facilitate collaboration between
  levels of government, and empower state and local
  governments to deliver citizen services more
  effectively.
• - Government to Business
• The Government to Business Initiatives are
  committed to helping business interact
  efficiently and effectively with the Federal
  government. These Initiatives help reduce burden
  on businesses, provide one-stop access to
  information, and enable digital communication
  using the language of E-Business (XML).
• - Government to Citizen
• The Government to Citizen Initiatives provide
  one-stop, on-line access to information and
  services to citizens.

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OMB Lines of Business

• The chances of most LoBs continuing into the
  next administration are high, primarily because
  they have shown progress in addressing apolitical
  government needs.
• Contractors must adjust their strategies and
  expectations to align with the various types of
  LoB missions. While some LoBs are focused on
  transactional objectives, others are more focused
  on best practices. Contractors must be prepared
  to play varying roles within customer agencies as
  current and future LoB needs evolve.
• - INPUT

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OMB Lines of Business

• In a recent Washington Technology article, Mark
  Kagan, research manager at Government Insights
  stated that
• "Some of the major lines of business
  particularly financial management, information
  systems security and human resources management
  began showing some real traction and benefits in
  2008. The associated shared-services offerings
  will continue to extend beyond single
  acquisitions and single government entities,
  saving IT investment dollars while improving
  citizen services."

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IT Lines of Business Status

• According to Government Insights, the United
  States Government currently has 6,561 federal
  agency IT line of business (LOB) initiatives for
  which the Office of Management and Budget has
  strict guidelines for how federal agencies must
  request and gain approval for IT projects as part
  of the federal budgeting process.

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IT Lines of Business

• How are the federal government's major LOB
  initiatives driving agency IT decisions?
• Which LOBs are receiving the most federal
  funding?
• Which agencies receive the most money for
  targeted LOBs?
• Which programs are funded primarily for
  development, modernization, and enhancement and
  which are primarily legacy?
• How will the LOB requirement for budgeting
  affect agency IT plans?
• How is the OMB using LOBs to drive
  long-term IT planning?

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OMB Lines of Business

• View details of the OMB Lines of Business at
• Government Executives
• The Basics Lines of Business
• at
• http//www.govexec.com/basics/linesofbusiness.htm

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NAICS Codes

• North American Industrial Classification System
• Have replaced SIC Codes (six digit versus four
  digit)
• Recognized by U.S., Canada and Mexico
• Adopted by OMB in 1997
• Used to determine the primary industrial activity
• SBA developed Size Standards - determines which
  companies are considered small businesses
• Companies are measured by three year average
  revenues or three year average employee counts.
  (Banks are measured by deposits)

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NAICS Codes

• Companies use NAICS Codes to indicate related
  capabilities/expertise
• Agencies use NAICS to indicate primary
  capabilities needed to complete specific
  requirements
• For small business set-asides, NAICS Size
  Standards indicate who is a small business for
  specific opportunities
• For full and open opportunities with
  subcontracting goals, NAICS Size Standards
  indicate who is a small business

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Am I big enough?

• Direct and indirect business opportunities exist
• Individuals and small companies win business
  everyday
• Develop relationships
• Demonstrate technical expertise
• Knowledge of customer goals and objectives
• Leverage partners to take down larger
  requirements
• Understand procurement methods for customer
  agencies
• Be seen often and in the right places, by the
  right people
• Ask your prospects what they read, where they
  network, etc.

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Culture

• Market education is imperative
• Know your customer goals and objectives
• Focus is key
• Plan your work, work your plan
• Reputation is everything
• Known by the company you keep
• Not who you know, but who knows you
• Remember, this is a relationship business

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Questions