Federal Contracting Basics

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U.S. Small Business Administration

• Selling to The Federal Government
• Winning
• Federal Contracts

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Federal Contracting Facts

• The federal government is one of the largest
  single sources of US contracting opportunities
  for small businesses
• Contracts exist for every item imaginable, from
  paper clips to armored tanks
• In 2006, small businesses won
• 77 billion in direct prime contracts
• 65 billion in subcontracts
• over 142 billion in total federal contracts

3
Why a Small Business Program?

• It is the policy of the United States that small
  business (SB) concerns shall have the maximum
  practicable opportunity to participate in the
  performance of contracts awarded by any Federal
  agency.
• The United States uses the procurement process to
  advance socio-economic policies and objectives.
• Government Policy Over Several Decades
• Numerous Statutes, beginning with the Small
  Business Act as amended
• Various Executive Orders
• Federal Acquisition Regulation (48 CFR, Part 19)
• SBA Regulations (13 CFR)

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Basis for SBA Programs

• Small Business Act
• Implements Congressional Policy to aid, counsel,
  assist protect the interests of small business
  concerns
• Goal of policy is to ensure that a fair
  proportion of purchases, contracts subcontracts
  be placed with small businesses

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Get to Know SBDC Services

• At www.smallbusinessdevelopmentcenter.tv, take
  online federal procurement training modules to
  improve your companys odds to win federal prime
  and subcontracts
• Topics include
• Defining the Market
• How the Government Buys
• Contractor Responsibilities
• And many more

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What is a Small Business?

• According to regulation (FAR 19.001)
• Concern Any business entity organized for
  profit with a place of business located in the
  U.S.
• Small business concern means a concern,
  including its affiliates, that is independently
  owned and operated, not dominant in the field of
  operation in which it is bidding on government
  contracts, and qualified as a small business
  under the criteria and size standards in 13 CFR
  Part 121.

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Prime ContractingGovernment-wide Procurement
Goals

• Small Business (SB) - 23
• Small Disadvantaged Business (SDB) - 5
• Women-Owned Small Business (WOSB) - 5
• HUBZone Small Business - 3
• Service-Disabled Veteran-Owned SB (SDVOSB) - 3

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How the Government Buys

• Order of Precedence
• FAR 8.603 FPI and AbilityOne
• GSA or other Federal Supply Schedule
• 8(a) sole source/competitive 8(a)-HUBZone
  firms
• HUBZone competition, HUBZone sole source
• Service Disabled Veteran Set-aside, Sole Source
  (1st priority for the VA (and VOSB 2nd)
• Small Business Set-aside
• Full and Open
• SBAs Position Contracting Officers should use
  their best judgment as
• to which vehicle ( 8(a), HUBZone, or Service
  Disabled Veteran Owned)
• is most appropriate for their buy. Program Goal
  achievement is a factor
• in this determination. Controversial

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How the Government Buys MAS/FSS

• MAS/FSS Contracts GSA establishes long-term
  government-wide contracts for the entire
  government to provide access to over 11 million
  commercial supplies (products) and services
• Preferred method and widely used
• The General Services Administration (GSA) manages
  
• Multiple Award Schedules (MAS) contracts,
• aka Federal Supply Schedule (FSS) contracts
• Contact GSA for more information on how to obtain
  a MAS/FSS contract at http//www.gsa.gov

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First Thing To Do Get Registered

• Obtain a DUNS Number that will identify your
  business to the federal government by visiting
• In order to win federal contracts, your business
  must be registered in the federal governments
  Central Contractor Registration (CCR) database at
• Online Representations and Certifications
  Application (ORCA)

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Identify Your Product or Service

• 2 different coding systems
• Federal Supply Classification Code (FSC)
• http//www.drms.dla.mil/asset/fsclist.html
• North American Industry Classification System
  Code (NAICS)
• http//www.census.gov/eos/www/naics/

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Know the Federal Contract Certifications

• Self-Certifications
• Small Business NAICS Codes/Size Standards
• Women-owned Small Business (WOSB)
• Veteran-owned Small Business (VOSB)
• Service-Disabled Veteran-owned Small Business
• (SDVOSB)
• SBAs Formal Certification Programs 8(a)
  Business Development
• HUBZone Empowerment Contracting

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Find Out If You Qualify for SBA Certifications

• Require formal certification (pre-approval) by
  the government
• 8(a) - Socially and economically disadvantaged
  firms enrolled in a 9-year business development
  program eligible to receive competitive and sole
  source awards. www.sba.gov/8abd
• HUBZone - Small businesses, owned and controlled
  by only by US Citizens, community Development
  Corps, Indian tribes with its principal office
  located in areas identified as historically
  underutilized business zones, and with 35 of
  employees coming from HUBZones, eligible to
  receive competitive and sole source awards.
• www.sba.gov/hubzone

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Eligibility for 8(a) SDB Programs

• 8(a) SDB
• A small Business A small business
• US Citizen US Citizen
• 51 owned and controlled Same
  controlled by socially
• economically disadvantaged
• individuals
• Net worth below 250K Net worth below 750K
• In business at least 2 years

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HUBZone Requirements

• FOUR Requirements
• Must be a small business by SBA standards
• Concern must be owned and controlled only by
  US Citizens, Community Development Corporation or
  Indian Tribes
• The principal office must be located in a
  HUBZone
• At least 35 of the concerns employees must
  reside in a HUBZone

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HUBZone Program

• Applies to purchases over 3000
• Must be certified by SBA - no term limits
• Annual self-certification required after
  initial approval
• Competitive and sole source set-aside program
  benefits
• Cant consider actions for HUBZone SA if FSS,
  UNICOR, NIB/NISH, or 8(a)
• Sole source Up to 5.5 M (mfg) and Up to 3.5M
  (non-mfg)
• 10 price evaluation preference (on non
  set-asides)
• Principal office must be in a HUBZone
• 35 of employees must live in a HUBZone
• FAR 19.13

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Service-Disabled Veteran-Owned Small Businesses

• Sole Source
• Buys over 100,000
• Only 1 Source
• Up to 5.5 M (mfg)
• Up to 3.5 M (non-mfg)
• Cant consider if FSS,
• UNICOR, NIB/NISH,
• or 8(a)

• Set-Aside
• - Buys over 3000
• - Rule of Two
• - No upward limit
• - Cant consider if
• FSS, UNICOR,
• NIB/NISH, or 8(a)

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Service-Disabled Veteran-Owned Small Businesses

• Additional Points to Remember
• VA determines Service Disability - SBA
  determines size, if protested
• No term limits no need to apply or reapply
• Competitive and sole-source program benefits
• Subcontracting and Prime Contracting goals
• FAR 19.14

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Identify Contract Opportunities

• Federal Business Opportunities (FedBizOpps) (FBO)
  is the exclusive official source to identify
  federal contracts over 25,000
• www.fedbizopps.gov or www.fbo.gov
• Demonstration Videos - Training videos are now
  available to familiarize users with the features
  and functionality of the new FBO
• Sources Sought Notices in the FBO Become
  familiar with and Respond to these notices.
• Large contract awards and special notices (e.g.,
  procurement conferences) are also publicized in
  the FBO.
• Contains Recovery and Reinvestment Act Actions

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Learn Federal Contracting Procedures

• In order to win federal contracts, you must
  become familiar with federal regulations
• . Federal Acquisition Regulations (FAR)
• www.sbdc.tv
• Subpart 8.4 Federal Supply
• Schedules
• Part 13 Simplified Acquisitions
• Part 14 Sealed Bidding
• Part 15 Contracting by Negotiation
• Part 19 - Small Business Programs
• Defense Federal Acquisition Regulation Supplement
  (DFARS) www.acq.osd.mil/dpap/

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Prepare your offer

• 3 Rules for a solicitation
• -Read itRead itRead it!!!
• Request a Procurement History
• Attend Pre-Bid Meetings
• Walk-Throughs
• Get clarification of ambiguities
• Proofread your proposal
• Submit it on time!

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Contract Performance

• Contingency Plans
• Have a back up plan if something goes wrong
• Give yourself enough time to react
• Anticipating Final Inspection
• Make an appointment before shipping date
• On-Time delivery
• Establish a good track record

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Getting Paid

• Know the paperwork process
• Keep good records
• Know your options
• Progress payments
• Prompt Payment Act
• EFT (electronic funds transfer)
• Accept government credit cards

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Market Your Company

• In order to effectively market your companys
  product or service, you must
• Identify your customers
• Research their requirements
• Learn federal procurement regulations
• Present your capabilities directly to the federal
  activities and large prime contractors that buy
  your products and services
• Attend procurement conferences and business expos
• Attend Business Matchmaking events
• Add details to DSBS your Dynamic Small Business
  Search profile (e.g., GSA schedule number,
  commercial customers, federal customers, special
  capabilities).
• Show contracting officers that your company is a
  good match for their needs and requirements

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Market Your Company

• TARGET YOUR CUSTOMER Who buys your product or
  service? How do they buy? When do they buy?
• KNOW THE RULES Federal Acquisition
  Regulations, Contract requirements and
  specifications
• PERFORM AS PROMISED On-time delivery, Good
  Quality, at a Fair Price
• CHAMPION of EXCELLENCE
• PLEASANTLY PERSISTENT

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Explore Subcontracting Opportunities

• Prime contract winners often require subcontracts
  to fulfill their requirements
• The SBA/GC Subcontracting Opportunities Directory
  lists by state the large business federal prime
  contractors with the contact information for each
  Small Business Liaison Officer (SBLO).
• SBAs SUB-Net Federal agencies, state and local
  governments, non-profit organizations, colleges
  and universities, and small businesses can use
  SUB-Net to post solicitations and notices.

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Seek Help From Resource Partners

• Small Business Development Center
  www.smallbusinessdevelopmentcenter.tv
• Women Business Centers
• http//www.sba.gov/aboutsba/sbaprograms/onlinewbc
  /index.html
• SCORE - Get Advice (online and in-person
  mentoring) from Successful Business Advisors
  www.score.org

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Seek Help From Resource Partners

• Additional Help
• Commercial Market Representatives
• www.sba.gov/gc/indexcontacts.html
• Small Business Specialists
• www.defenselink.mil/
• Directors of Federal Agency Office of Small and
  Disadvantaged Business Utilization
• www.osdbu.gov

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Learn About Other SBA Programs

• Find online training resources at
  http//www.smallbusinessdevelopmentcenter.tv
• - Financial Online Classes
• - Business Funding
• - Document Creation Management
• - Business Planning Development
• - Doing Business with the U.S. Government

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U.S. Small Business Administration

• Brian D. Dale
• SBDC Center Representative