Georgia Tech Procurement Assistance Center

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Georgia Tech Procurement Assistance Center

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Title: Georgia Tech Procurement Assistance Center


1
Georgia Tech Procurement Assistance Center
  • Presents
  • Selling to the Government, 102
  • Larry Fountain (404) 894-8832

2
Georgia Tech Procurement Assistance Center
  • Provide marketing and technical assistance go
    Georgia-based businesses
  • Helped Georgia businesses win in excess of 1.5
    billion in government contracts
  • Located at Georgia Tech since 1985

3
Georgia Tech Procurement Assistance Center
  • Part of Georgia Techs Economic Development
    Institute
  • Funded by the Department of Defense and
    sponsored by the Defense Logistics Agency
  • All services are FREE

4
Georgia Tech Procurement Assistance Center
  • Our clients provide all types of products and
    services from produce to computers

5
Georgia Tech Procurement Assistance Center
  • Can Help You
  • Locate buying activities that purchase your
    products or services
  • Locate contracting opportunities via FedBizOpps,
    FACNET, the Internet or other means
  • Understand a solicitations requirements and
    terminology

6
Georgia Tech Procurement Assistance Center
  • Can Help You (continued)
  • Locate subcontracting opportunities
  • Develop a marketing strategy
  • Locate purchase history for previously contracted
    products or services

7
Georgia Tech Procurement Assistance Center
  • Can Help You (continued)
  • Become aware of additional places of assistance
    such as small business specialists
  • Learn about all aspects of contracting through
    GTPAC seminars
  • Develop and implement quality control and/or
    accounting procedures

8
Georgia Tech Procurement Assistance Center
  • Procurement Counselors located at
  • Atlanta
  • Augusta
  • Columbus
  • Savannah
  • Warner Robins (Director)

9
To Win Government Contracts
  • Know how to locate opportunities
  • Know who the other players are
  • Understand the rules
  • Play by the rules
  • Ensure others play by the rules

10
To Win Government Contracts(continued)
  • Be willing to invest time and energy
  • Learn to play professionally
  • Know how to cope with adversity
  • Be highly competitive
  • Understand that the playing field is not always
    level

11
Three Characteristics Essential for Successfully
Dealing with the Government
  • Dedication
  • Determination
  • Persistence

12
Priorities for Government Supply Sources
  • Supplies
  • Agency inventories
  • Excess from other agencies
  • Federal Prison Industries
  • Products available from NIB/NISH
  • Wholesale supply sources such as GSA stock

13
Priorities for Government Supply Sources
  • Supplies (contd)
  • GSA Federal Supply Schedules
  • Commercial Sources

14
Priorities for Government Services Sources
  • Services
  • Committee for purchases from NIB/NISH
  • GSA Federal Supply Schedules
  • Federal Prison Industries or commercial sources

15
Federal Procurement Regulations
  • Federal Acquisition Regulation
  • Governs purchases by most Federal agencies
  • Defense Federal Acquisition Regulation
  • Other individual Federal agency regulations

16
Federal Procurement Regulations(continued)
  • Federal Aviation Administration
  • Released from using FAR
  • Have an acquisition system separate from the FAR
  • Efficiency

17
Federal Procurement Regulations(continued)
  • Other agencies to be released
  • Contractors will have to become familiar with a
    myriad of different regulations

18
Federal Labor Laws
  • Walsh Healey Public Contracts Act
  • Applicable to contracts for supplies
  • Service Contract Act
  • Applicable to service contracts
  • Specifies wage rates, fringe benefits, etc.
  • Davis Bacon Act
  • Applicable to construction contracts
  • Requires submission of payroll information

19
Types of Federal Agencies
  • Civilian
  • Military (Department of Defense)

20
U. S. GENERAL SERVICES ADMINISTRATION GSA
  • Industrys largest customer for commercial goods
    and services
  • Purchases for civilian and military agencies
  • Stocks and distributes common use products
  • Over 7,000 high demand items available for
    shipment
  • Two distribution centers

21
U. S. GENERAL SERVICES ADMINISTRATION GSA
  • Special order program
  • A buy on demand buying service for ordering
    activities
  • Products purchased have included vehicles,
    appliances and furniture

22
U. S. GENERAL SERVICES ADMINISTRATION GSA
  • Awards Federal Supply Schedule contracts
  • Over four million commercial off-the-shelf
    products and services
  • 17.5 billion in sales in FY2001

23
Federal Supply Schedules Program Statistics
  • 47 schedules covering various commodities and
    services
  • 17.5 billion program
  • 7,972 schedule contract holders
  • 6,198 small businesses
  • 637 small woman-owned businesses
  • 707 small disadvantaged businesses
  • 5 year contracts with 3, 5 year renewals

24
GETTING A GSA NUMBER
  • A GSA number is a contract number
  • Contract numbers obtained through
  • Competitive bidding or negotiation
  • A definite quantity award (items stocked in
    distribution centers)
  • A GSA, FSS, MAS award

25
GETTING A GSA NUMBER (contd)
  • GSA does not give out numbers
  • It is not the number a vendor receives when they
    are placed on the GSA bidders list
  • It is not a number someone can give you over the
    telephone

26
WHY FEDERAL AGENCIES USE GSA SCHEDULES
  • Ease of use
  • Availability of commercial products/services
  • Orders can be placed immediately
  • Wide variety of product/service providers
  • Agencies have a choice of products/services
  • Can usually get vendor of their choice

27
WHY FEDERAL AGENCIES USE GSA SCHEDULES (contd)
  • Prices considered fair and reasonable
  • Low price not a factor in agency award of order
  • Award of order should be made to schedule
    contractor offering best value at the lowest
    price

28
WHY FEDERAL AGENCIES USE GSA SCHEDULES (contd)
  • Saves time and effort of creating a solicitation
  • Solicitation process may require months of effort
  • Not required to be posted in FedBizOpps
  • Agency has no contracting authority or activity
  • Not authorized to contract above certain dollar
    level
  • Use of schedules mandated by higher authority

29
Defense Logistics Agency (DLA)
  • Purchases, stocks and distributes defense related
    products/parts
  • Operates 3 huge distribution centers
  • Defense Supply Center Columbus (DSCC)
  • Defense Supply Center Philadelphia (DSCP)
  • Defense Supply Center Richmond (DSCR)

30
Defense Logistics Agency (DLA)Electronic Mall
(EMALL)
  • Electronic internet based system
  • For use by military customers
  • Used to order spare parts, logistics and support
    items
  • Access web site www.supply.dla.mil

31
What Does the Govt Buy
  • Everything
  • Dont believe me
  • Take a look at the next slides

32
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33
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34
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35
Procurement Preference Goals
  • Assigned to all Federal agencies
  • Negotiated at the national level with SBA
  • Flow down to individual activities/regions
  • Goal attainment coordinated by agency small
    business specialist
  • Must have support from top agency officials

36
Procurement Preference Goals(continued)
  • Goals cover awards to
  • Small businesses
  • Small disadvantaged businesses
  • Woman-owned small businesses
  • HUBZone certified small businesses
  • Veteran-owned small businesses
  • Service connected disabled veteran-owned small
    business

37
Definition of a Small Business
  • Manufacturing
  • Normally small if 500 employees or less
  • Services
  • Size based on average annual receipts over a 3
    year period and applicable NAICS Code

38
Preferential Contracting Programs
  • Small Business Set-Asides
  • 8(a) Program
  • Small Disadvantaged Business Certification
    Program
  • Historically Underutilized Business Zones
    (HUBZones)

39
Small Business Set-Aside
  • Reserves contracts exclusively for small
    businesses
  • Rule of two
  • Government reasonably expects two or more
    competitive bids from small business sources

40
Small Business Set-Aside
  • Buyers normally must provide justification when a
    procurement is not set-aside
  • Reviewed by agency small business specialist and
    SBA Procurement Center Representative (PCR)
  • If impasse, determination at highest agency level

41
Small Business Set-Aside
  • Limitations on Subcontracting
  • Services-At least 50 percent of the cost of
    contract performance incurred for personnel shall
    be expended for employees of the concern
  • Supplies-The concern shall perform work for at
    least 50 percent of the cost of manufacturing the
    supplies, not including the cost of materials

42
Small Business Set-Aside
  • Limitations on Subcontracting (cont-d)
  • General Construction - The concern will perform
    at least 15 percent of the cost of the contract,
    not including the cost of materials, with its own
    employees.
  • Construction by special trade contractors - The
    concern will perform at least 25 percent of the
    cost of the contract, not including the cost of
    materials, with its own employees

43
Small Business Set-Aside
  • Non-manufacturer Rule
  • A contractor under a small business set-aside or
    8(a) program shall be a small business and shall
    provide either its own product or that of another
    domestic small business manufacturing or
    processing concern

44
Small Business Set-Aside
  • Non-Manufacturer Rule Waiver
  • Applies to procurements processed under
    simplified acquisition procedures that will not
    exceed 25,000
  • Permits a small business to provide any domestic
    firms product (large or small)

45
Small Business Competitive Demonstration Program
  • To access the ability of small businesses to
    compete successfully in certain industry
    categories without competition being restricted
    by the use of small business set-asides
  • Provides for unrestricted competition in four
    industry categories

46
Small Business Competitive Demonstration Program
  • Industry Categories
  • Building, Developing, and General Contracting
  • Heavy Construction
  • Special Trade Contractors, Nonnuclear Ship Repair
  • Architectural and Engineering Services

47
Small Business Competitive Demonstration Program
  • SBA determines percentage of small business
    participation necessary for continuing
    unrestricted procurements
  • SBA determination made by agency and location
  • SBA notifies Head of Agency once a year
    concerning percent of small business
    participation
  • No set-asides at GSA as long as 40 of awards are
    made to small business

48
Small Business Competitive Demonstration Program
  • Participating agencies
  • USDA, DOD, DOE, HHS, DOI, DOT.VA, EPA, GSA AND
    NASA

49
SBA, 8(a) Program
  • SBA Program to assist socially and economically
    disadvantaged businesses
  • Makes contracts available on a non-competitive or
    limited competitive basis
  • Competitive thresholds
  • Services-3 million
  • Supplies-5 million

50
SBA, 8(a) Program (continued)
  • Socially disadvantaged
  • Includes Blacks, Hispanics, Native Americans,
    Eskimos and other groups designated by SBA
  • Others may qualify on a case by case basis
  • All applicants must demonstrate economic
    disadvantage
  • Must be certified by SBA to participate

51
Marketing Your 8(a) Contract
  • Identify potential Federal agency customers
  • Contact the agencys small business specialist
  • Request an appointment to make a technical
    presentation
  • Attendees
  • 8(a) contractor/representatives
  • Small business specialist(s)
  • Contracting officials
  • Agency technical personnel

52
Marketing Your 8(a) Contract(continued)
  • What to bring to the presentation
  • Technical material about your firm
  • Records of past performance
  • Size/scope of previous projects
  • Complexity
  • Contact information
  • Letters of commendation
  • Equipment list
  • Employee information/qualifications

53
Marketing Your 8(a) Contract(continued)
  • Be prepared to discuss/explain
  • Capabilities and company history
  • Company principals
  • Financial status
  • Bonding capacity (construction only)
  • Why you should be selected
  • Assurance you will perform satisfactorily
  • Your understanding of the requirements

54
Small Disadvantaged Business Certification
Eligibility Program
  • Effective July 1, 1999
  • Replaced SDB set aside program
  • Provides a price adjustment of 10 in some
    Federal procurements
  • Large prime contractors only receive credit for
    subcontracting with certified SDBs

55
Small Disadvantaged Business Certification
Eligibility Program (contd)
  • Eligibility/Requirements
  • Applicants must be US citizens
  • Certification process open to any small business
  • For firms that do not meet 8(a) Program
    requirements

56
Small Disadvantaged Business Certification
Eligibility Program (contd)
  • Eligibility Requirements
  • Firms in 8(a) Program automatically certified
  • Support for SDB status
  • Previously, clear and convincing
  • New standard, preponderance of evidence

57
Small Disadvantaged Business Certification
Eligibility Program (contd)
  • Eligible Groups
  • SBA designated socially disadvantaged groups
  • Includes Blacks, Hispanics, Native Americans,
    Asian Pacific and members of any group SBA may
    designate

58
Small Disadvantaged Business Certification
Eligibility Program (contd)
  • Eligible Groups (continued)
  • Individuals in non-designated groups
  • Now easier for members of these groups to become
    certified
  • Must establish social disadvantage through a
    preponderance of evidence
  • Must demonstrate economic disadvantage based on
    criteria established by SBA

59
Small Disadvantaged Business Certification
Eligibility Program (contd)
  • Review Process
  • Performed by SBA (free of charge)
  • Private evaluators (fee involved)
  • Determine applicants social and economic status
  • Certified as disadvantaged
  • If SBA determines firm is owned and controlled by
    someone socially and economically disadvantaged

60
Historically Underutilized Business Zones
  • Designated by the Department of Commerce
  • based on census information
  • Income and unemployment determining factors
  • Primarily inner city and extremely rural areas
  • Qualifications
  • Principal office must be located in a HUBZone
  • At least 35 of employees must live in a HUBZone

61
Historically Underutilized Business Zones (contd)
  • Must be certified by SBA to participate
  • Place based preference
  • Can receive up to a 10 price evaluation
    preference for certain procurements
  • Restricted competition-limited to HUBZone
    certified firms only (HUBZone set-aside)
  • www.sba.gov/hubzone to determine if address is in
    a HUBZONE


62
Women-Owned Small Businesses
  • All Federal agencies have goals 5 national goal
  • Currently no preference
  • Exceptions-8(a) or SDB certified WOSB
  • May be a preference soon

63
Suspended/Terminate Preferential Programs
  • Small Disadvantaged Business Set-Asides
  • Applicable to DoD, NASA and DoT
  • Suspended
  • Labor Surplus Set-Asides
  • Terminated

64
Federal Acquisition Streamlining Act (FASA)
  • Implemented new simplified acquisition
    procedures, effective July 3, 1995
  • Established a Simplified Acquisition Threshold
    (SAT) of 100,000
  • Previously 25,000 for small purchases

65
Federal Acquisition Streamlining Act (FASA)
  • Established a Micro-Purchase Threshold of
    2,500
  • Established electronic commerce/electronic data
    interchange in the Federal Government via the
    Federal Acquisition Computer Network (FACNET)

66
Procurement Methods and Bidding Documents
  • Simplified Acquisition
  • Applicable to purchases between 2,500 and
    100,000 (5 million test program for commercial
    items)
  • Automatically reserved for small business

67
Procurement Methods and Bidding Documents
  • Simplified Acquisitions (contd)
  • Request for Quotation used to solicit offers
    above 2,500
  • Micro-Purchases (below 2,500) awarded without
    competition
  • Government credit cards normally used to make
    purchase

68
Procurement Methods and Bidding Documents (contd)
  • Sealed Bidding
  • Dollar driven, awarded to low, responsible,
    responsive bidder
  • No discussion/negotiating
  • Designated time and place for public bid opening

69
Procurement Methods and Bidding Documents (contd)
  • Sealed Bidding
  • Abstract of Bids prepared showing bidders and
    prices bid
  • Invitation for Bids (IFB) used to solicit bids
  • Previously, preferred method of procurement

70
Procurement Methods and Bidding Documents (contd)
  • Negotiation
  • Award based on best value
  • Allows the government to pay more for a better
    quality product
  • Identifies the lowest priced technically
    acceptable proposal as being part of the best
    value continuum when appropriate.

71
Procurement Methods and Bidding Documents (contd)
  • Negotiation (contd)
  • Evaluation factors determine best value
  • Normally found in Section M of solicitation
  • Low price not necessarily deciding factor
  • May require submission of technical and price
    proposals

72
Procurement Methods and Bidding Documents (contd)
  • Negotiation (contd)
  • Request for Proposals (RFP) used to solicit
    offers
  • Government may award based on initial offer(s)
  • Offers not publicly opened
  • Proposal may be made orally

73
Proposal Preparation Facts
  • No standard method for preparing a proposal
  • Generally, all RFPs are different
  • No available software/book for step by step
    preparation

74
Proposal Preparation Facts (contd)
  • Proposal must address the governments stated
    needs in the solicitation
  • Statement of Work
  • Evaluation criteria

75
Proposal Preparation Facts(contd)
  • Many RFP requirements unclear
  • Preparer must make assumptions
  • Valid or invalid

76
Proposal Preparation Facts(contd)
  • Preparer must be exceedingly familiar with
    offerors capabilities
  • Technical capability
  • Past performance
  • Personnel qualifications
  • Equipment
  • Contract pricing

77
GTPAC Proposal Assistance
  • Help clients understand RFP requirements
  • Review evaluation criteria and recommend how to
    respond
  • Review draft response to RFP and offer
    suggestions
  • Present seminars on proposal writing/ preparation

78
Service Contracts versus Supply Contracts
  • Similarities
  • Same contract clauses
  • Same representations certifications
  • Requirement may be definite or indefinite
  • May be sealed bid or negotiated
  • Depends on individual circumstance
  • Standard contract format

79
Service Contracts versus Supply Contracts
  • Notable Differences
  • Statement of work
  • Method of award
  • Delivery requirements
  • Labor laws
  • Walsh Healey
  • Service Contract Act
  • Davis-Bacon

80
Service Contracts versus Supply Contracts
  • Service Contract Peculiarities
  • Cover personal and non-personal services
  • Janitorial, guard, repairs to equipment,
    operation of Government facilities
  • May be fixed price or time and material (TM)
  • TM only used when no other alternative exists
  • Description of required services may be complex

81
Service Contracts versus Supply Contracts
  • Service Contract Peculiarities (contd)
  • Generally more difficult to administer
  • May require more scrutiny and management
    oversight
  • Government must have sufficient administrators

82
Service Contracts versus Supply Contracts
  • Service Contract Peculiarities (contd))
  • Service Contract Act applicable in most instances
  • Specifies minimum hourly rates
  • Requires payment of fringe benefits
  • Specifies paid holidays
  • May require contractor to provide uniforms and
    cleaning

83
Service Contracts versus Supply Contracts
  • Supply Contract Peculiarities
  • Walsh Healey Public Contracts Act Applicable
  • Specifies payment of minimum wage
  • Normal contract administration effort required
  • Statement of work is contract specific

84
Small Business Specialists
  • Civilian and Department of Defense agencies
  • Your first point of contact at a Federal agency
  • Determine market for product or service
  • Identify buyer and potential agency customers
  • Provide other helpful information

85
Small Business Liaison Officers
  • Employed by large Federal prime contractors
  • First point of contact for vendor marketing
  • Duties similar to Federal small business
    specialists

86
Marketing To A Federal Agency
  • Make an appointment with the agency small
    business specialist
  • Determine names of buyers and end user(s) of your
    product or service
  • Take along line cards and other information about
    your firm

87
Marketing To A Federal Agency (contd)
  • Identify the next procurement for your product or
    service
  • If less than 25,000, ensure your name has been
    added to the buyers source list (if applicable)
  • Contact the buyer shortly before date of release
    of next procurement package to ensure you are on
    source list

88
Marketing to Government Agencies (contd)
  • You cant always believe what you are told

89
Georgia Tech Procurement Assistance Center
  • Locating Bidding Opportunities

90
Placement on Bidders Mailing Lists
  • Standard Form 129 may be required
  • Some agencies may require additional supplemental
    information
  • May be essential for procurement actions below
    25,000
  • Process becoming non-existent

91
Commerce Business Daily (CBD)
  • Formerly, primary place for posting Federal
    contracting opportunities
  • Replaced by FedBizOpps January 1, 2002

92
FedBizOpps
  • Single government site for posting opportunities
  • Electronic site (WWW.EPS.GOV)
  • Searchable/downloadable index of opportunities
  • Automatic e-mail notification
  • Link to Pro-Net

93
FedBizOpps (contd)
  • Opportunities categorized
  • 10 thru 99 for supplies
  • A thru Z for services
  • Other searchable features
  • Publicizes proposed procurement actions and
    contract awards of 25,000 and more

94
Federal Acquisition Computer Network (FACNET)
  • A method to advertise opportunities and receive
    quotes electronically
  • Created to eliminate paper transactions
  • Government drowning in paper
  • Covers purchases between 2,500 and 100,000

95
Federal Acquisition Computer Network (FACNET)
  • Used primarily to purchase commodities
  • Procurements not advertised in FedBizOpps
  • Offers submitted through a Value Added Network
    (VAN)
  • Process may eventually go away

96
Value Added Network (VAN)
  • Establish vendor profile for trading partners
  • Key words, codes, etc.
  • Access government FACNET opportunities
  • Provided electronically to trading partners
  • Acts as intermediary between government and
    trading partners
  • Charge for annual subscription

97
Internet Opportunities
  • Vendors can download solicitations and submit
    paper quotes
  • Some sites allow for electronic quotes
  • DUNS Number or TPIN required
  • Numerous internet sites to review
  • Appears to be method of preference

98
Internet Opportunities (contd)
  • Important Web Sites
  • http//progate.daps.mil DoD
  • www.pr.doe.gov/prbus.html DoE
  • http//ideasec.er.usgs.gov DoI
  • www.eps.gov/ GSA
  • http//ecic.abm.rda.hq.navy.mil NAVY

99
Electronic Bid Match Service
  • Provided at no charge to GTPAC clients
  • Matches government bid opportunities with client
    capabilities
  • Searches cover about 900 web sites

100
Electronic Bid Match Service (continued)
  • Service covers Federal, state, local, Canadian
    and European opportunities
  • Cost of similar service from commercial sources
    about 500 annually

101
Commercial Abstracting Services
  • Provide procurement opportunities for a fee
  • Opportunities not available through normal
    channels
  • May provide enhanced versions
  • Providers
  • www.bidline.com
  • www.fedmarket.com
  • www.fedworld.gov

102
Agency Procurement Forecasts
  • Forecasts agency procurement opportunities for
    Fiscal Year (October 1-September 30)
  • May show current contractor(s) and price(s)
  • Available in hard copy or from web site
  • Contact agency small business specialist

103
Procurement/Business Opportunity Conferences
  • Excellent way to network with many Federal
    agencies and prime contractors at one location
  • Normally sponsored by member of Congress and/or
    Federal agency(s)
  • Nominal cost to attend
  • Watch GTPAC newsletter for locations/dates

104
Government Credit Card Program
  • Over 389,000 card holders
  • Army-largest DoD
  • VA-largest civilian user
  • Credit card charges
  • FY 1999-10.2 billion
  • FY 2000-12.3 billion
  • FY 2001-13.8 billion
  • FY 2002-15.1 billion

105
Government Credit Card Program (contd)
  • Number of transactions
  • FY 1999-20.6 million
  • FY 2000-23.4 million
  • FY 2001- 24.4 million
  • FY 2002-25.6 million
  • Agency credit card limits
  • Initially 2,500 per transaction
  • Some up to 100,000 (payment purposes)

106
Government Credit Card Program (contd)
  • Advantages to Government
  • Saves an average of 54 per transaction
  • Vendors normally paid within 3 days
  • More discounts taken for prompt payment
  • Disadvantages to Government
  • Loss of visibility for credit card purchases
  • Difficult to institute adequate controls

107
Government Credit Card Program (contd)
  • Credit card fraud (1-02)
  • Naval Warfare Systems Public Works Centers-San
    Diego
  • 500 worth of Mary Kay Cosmetics
  • 700 in compact discs
  • 400 designer briefcase

108
Government Credit Card Program (contd)
  • Credit card fraud (4-03)
  • Director, Pentagons Graphics and Presentations
    Division
  • 552 fraudulent purchases
  • 1.7 million from company in Seattle
  • Faces 10 years prison, 250K fine and restitution

109
Government Credit Card Program (contd)
  • Credit card fraud (4-03)
  • Deputy, Director, Pentagons Graphics and
    Presentations Division
  • Theft of over 30K govt property
  • CD DVD players, cameras, etc.
  • Sentenced 3 years supervised probation and 6
    months home confinement

110
Government Credit Card Program (contd)
  • Credit card abuse-AJC, September 6, 2003
  • Forest funding spent improperly
  • Forest Service Workers used govt credit
    cards to buy a DVD player, billiard table, 2,900
    aquarium, and even used one at a bingo casino.
    In a sample of 230 purchases, GAO indicated it
    found Forest Service workers made 1.6 million in
    improper purchases from 10-1-00 to
  • 9-30-01. Auditors estimate overall improper
    charges reached 2.7 million.

111
Government Credit Card Program (contd)
  • Advantages for vendors
  • Easiest way to do business with government
  • Payment received quickly (3 days normally)
  • List of credit card holders normally available

112
Government Credit Card Program (contd)
  • Disadvantages for vendors
  • Must accept credit card(s) to participate
  • No buying preference
  • Marketing nightmare
  • DoD refusing to provide card holder lists

113
Setting Up Accepting Credit Cards
  • Contact a bank, credit card/merchant service
    provider
  • Talk to your friends about the best deal

114
Federal Subcontracting Program
  • Established by Public Law 95-507 in 1978
  • Applicable to contract awards to large businesses
    exceeding 500,000 (1 million for construction)
  • Requires development of subcontracting plan with
    goals
  • Plan must be approved by contracting officer

115
Federal Subcontracting Program(contd)
  • Goals expressed in dollars and percentages for
  • Small business
  • Small disadvantaged businesses
  • Women-owned small businesses
  • Certified HUBZone small businesses
  • Service connected, disabled veteran-owned small
    businesses
  • Veteran-owned small businesses

116
Federal Subcontracting Program(contd)
  • Large prime contractors required to makegood
    faith efforts to attain goals
  • Liquidated damages - can be assessed if good
    faith efforts not made to meet goal(s)
  • Excellent potential for small business
    participation
  • DoD, GSA and SBA have subcontracting directories
    available in hard copy or on web

117
Prime Contractor Web Sitesfor Subcontracting Opps
  • DoD-http//www.acq.osd.mil/sadbu
  • GSA-http//www.gsa.gov
  • SBA-http//www.sba.gov

118
Marketing Directly to a Prime Contractor
  • Select prime contractor(s) that may need your
    goods/services
  • Contact the SBLO for assistance
  • Have in mind what you want to provide
  • Explain benefits of buying from you in lieu of a
    competitor
  • Complete and submit necessary paperwork

119
SBAs Subnet
  • Used by prime contractors and others to post
    subcontracting opportunities
  • May post solicitations or notices
  • May not be set-aside for small business
  • May be source for teaming arrangements

120
SBAs Subnet(contd)
  • http//web.sba.gov/subnet
  • Site searched in our bid match service

121
SBAs Pro-Net
  • A database for sources for buyers from Federal,
    state and local agencies and prime contractors
  • A marketing tool for small businesses
  • Links to procurement opportunities and other
    important information

122
SBAs Pro-Net (contd)
  • Lists certified HUBZone and 8(a) firms
  • Recently merged with Central Contractor
    Registration (CCR) system
  • Must register in CCR first
  • Web site WWW.SBA.GOV

123
Central Contractor Registration (CCR)
  • Provides DoD, DoT and NASA with information to
    accomplish Electronic Funds Transfer
  • Assigns Trading Partner Identification Number
    (TPIN) and Commercial and Government Entity
    (CAGE) Code to vendors

124
Central Contractor Registration (CCR)
  • Cannot do business with DoD, NASA or DoT without
    a Trading Partner IdentificationNumber

125
Central Contractor Registration (CCR)
  • Future use
  • Centralized repository for vendor information
  • Single point for vendor registration
  • Will replace Standard Form 129

126
Central Contractor Registration (CCR)
  • Future use (contd)
  • Will be used by all Federal agencies beginning
    October 2003
  • Name will be changed
  • Recently merged with SBAs ProNet
  • http//www.ccr.gov

127
Federal Government Coding/Numbering Systems
  • North American Industry Classification System
    (NAICS)
  • System used by Federal government to classify
    various types of businesses
  • Will replace Standard Industrial Classification
    (SIC) Codes

128
Federal Government Coding/Numbering Systems
(contd)
  • Commercial and Government Entity (CAGE) Code
  • Five position alpha numeric code used by DoD
    activities to identify businesses
  • National Stock Number (NSN)
  • 13 digit code assigned by government that
    identifies certain products
  • May not make govt sales any easier

129
Federal Government Coding/ Numbering Systems
(contd)
  • Data Universal Numbering System (DUNS) Number
  • Obtained from Dunn and Bradstreet
    (1-866-705-5711)
  • Contractor Establishment Code (CEC)
  • Assigned by civilian agencies to vendors
    receiving awards

130
Returning Bids and Proposals
  • Note due date and time on solicitation
  • Official time is time on bid custodians time
    piece/clock
  • If returning by USPS, send certified, registered
    or Express Mail return receipt
  • May be accepted if late or misplaced

131
Returning Bids and Proposals (contd)
  • Acknowledge and return all amendment(s) requiring
    acknowledgement
  • Failure to do so can render a bid non-responsive
  • When in doubt return anyway

132
Returning Bids and Proposals(contd)
  • Personal delivery
  • Ensure you have plenty of time to cope with
  • Heavy traffic
  • Wrong address
  • Delay at security check
  • Inoperative elevators
  • Late bids cannot be considered
  • Both Government and bidder lose

133
Government Terminology
  • Contracting Officer
  • Has authority to enter into, administer, and/or
    terminate contracts and make related
    determinations and findings the individual with
    authority to obligate the government

134
Government Terminology
  • Responsible
  • Bidder/offeror deemed capable to perform all
    aspects of the contract
  • Non-responsible
  • Government determination that vendor cannot
    perform contract

135
Government Terminology(contd)
  • Responsive
  • Bidder/offeror adheres to all terms and
    conditions in the solicitation
  • Signed bid, did not take exception to terms, etc
  • Non-responsive
  • Bidder takes exception to solicitation
    requirement/fails to sign bid
  • Referred to as qualified bid
  • Bid thrown out

136
Government Terminology(contd)
  • Certificate of Competency (CoC) Program
  • Investigation by SBA to confirm or overturn
    agency finding of non-responsibility
  • Mandatory notification of SBA when small business
    is determined non-responsible by procuring agency
  • Last chance for vendor for that procurement

137
Government Terminology(contd)
  • Default
  • Action taken by procurement activity to terminate
    a contract
  • Defaulted contractor usually responsible for any
    excess reprocurement costs
  • May be grounds to deny future contract awards

138
Government Terminology(contd)
  • Debarment/Suspension
  • Action taken to disqualify a vendor from doing
    business with the government
  • May be time specific

139
Government Terminology(contd)
  • Bid acceptance time
  • Period of time the government can take to make a
    contract award
  • Specified in solicitation
  • Can be up to 180 days or more
  • Bidder/offeror may extend time if requested and
    if agreeable

140
Pre-Award Survey
  • Survey by the government to determine vendor
    responsibility (can they perform contract)

141
Pre-Award Survey (contd)
  • Determines if vendor has
  • Adequate financial resources
  • Ability to comply with delivery requirements
  • Satisfactory record of performance
  • Satisfactory record of integrity an business
    ethics
  • Necessary organizational experience

142
Pre-Award Survey (contd)
  • Determines if vendor has
  • Necessary accounting controls
  • Necessary operational controls
  • Necessary technical experience
  • Necessary equipment/facilities

143
Obtaining Procurement Information
  • Bid abstract
  • Listing of bidders and prices bid in response to
    a sealed bid solicitation (IFB)
  • Normally available through phone call request

144
Freedom Of Information Act
145
Obtaining Procurement Information
  • Freedom of Information Act (FOIA) (contd)
  • Means for obtaining copies of information the
    Federal government has on file
  • Address request to FOIA Officer at agency
  • Do not send request to Contracting Officer
  • Request a COPY of the document(s)

146
Obtaining Procurement Information
  • Freedom of Information Act (contd)
  • Request may be denied partially or totally
  • Reason(s) for denial and appeal rights must be
    provided
  • May be a fee for search and reproduction
  • Administrative fees not applicable
  • Many agencies do not know/follow FOIA procedures

147
Obtaining Procurement Information
  • Debriefing
  • Applicable to Requests for Proposals submitted by
    unsuccessful offerors
  • Usually conducted by contracting officer
  • Request for debriefing time sensitive
  • Means to determine where/if proposal was weak

148
Obtaining Procurement Information
  • Debriefing (contd)
  • Information can be used to strengthen future
    proposals
  • May provide grounds for a protest if loser
    disagrees with contracting officer

149
Federal Procurement Data System
  • Provides information about Federal Government
    purchases (may be a fee)
  • Federal Procurement Data Center, 7th D Streets,
    SW, Washington, DC 20405 (202) 219-3416
  • http//www.fpdc.gov/fpdc/fpdc_home.htm

150
Federal Procurement Data System
  • State Breakout
  • Top 5 Counties
  • Top 5 Agencies
  • Top 5 Contracting Offices
  • Top Product/Service
  • Top Contractors
  • Agency Breakout
  • Small Business
  • Small Disadvantaged
  • Women-Owned
  • 8(a)
  • Ranking

151
Future for Federal Procurement
  • Bidders mailing lists will disappear
  • CCR will become single place for vendor
    registration for all agencies
  • Electronic solicitations will increase
  • You must learn to do business electronically

152
Future for Federal Procurement (contd)
  • More Federal agencies will utilize the internet
    to advertise opportunities and receive quotes
    electronically
  • FACNET will not exist as we know it now
  • More agencies released from using the FAR

153
Future for Federal Procurement (contd)
  • Government credit card usage will increase
  • FY 99-10.2 billion, FY00-12.3 billion
  • FY 01-13.8 billion, FY 02-15.6 billion
  • The Micro-Purchase purchase threshold will be
    raised (currently 2,500)
  • Bundling of contracts will increase

154
Requirements for Becoming a GTPAC Client
  • Be licensed and doing business in the State of
    Georgia
  • Have an expressed desire to pursue government
    business
  • Have the potential to locate government marketing
    opportunities after evaluation by a GTPAC
    counselor

155
Requirements for Becoming a GTPAC Client (contd)
  • Have a computer and an email provider
  • Complete and return a client application
  • Provide quarterly procurement activity reports
    showing all government and related subcontract
    awards

156
Requirements for Becoming a GTPAC Client (contd)
  • Complete and return an annual quality of services
    survey
  • Failure to comply with any or all of the
    conditions above will be grounds for termination
    of GTPAC assistance

157
  • QUESTIONS

158
Before You Leave
  • PLEASE
  • Provide the information on the sign in sheet and
    complete the seminar evaluation sheet

159
THE END
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