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1
Selling to Federal AgenciesSelling to Federal Agencies Using GSA’s Using GSA’s
Federal SupplyFederal Supply SchedulesSchedules
June 17, 2003
2
The Discussion Panel
Jim Czysz, General Services AdministrationPh. 888-353-5383 [email protected]
Todd LaMastres, Ernst & Young LLPPh. 214-969-8484 [email protected]
Teague Newhart, Ernst & Young LLPPh. 202-327-7591 [email protected]
Dawn Greenwood, Federal Supply ServicePh. 630-527-0648 [email protected]
3
The Agenda
Introduction to GSA Federal Supply Schedules How to Become a GSA Schedule Contractor Preparing a Valid Offer to a GSA Solicitation Managing the Risks After Contract Award Marketing Tips Q&A
4
Introduction to GSA Federal Supply Schedules
Multiple Award SchedulesFast, easy, and effectiveAccessible Government-wideOver 11,000 contracts in placeOver 4 million products and servicesCommercial items
7
Services vs. Products
Services– Info Technology– Engineering– Financial– Logistics– MOBIS (Mgmt,
Organizational, and Business Improvement Services)
– . . . more
Products– Office Equip &
Supplies
– Furniture
– Hardware
– Scientific
– Energy products
– . . . more
8
Who Buys Services and Products from Schedules?
Executive and Other Federal Agencies are eligible users of the schedules program
All eligible users are non-mandatory but highly encouraged by their Command or Management Officials
The GSA number is not similar to a registration or license number. It is a valid contract between GSA and the vendor to supply an indefinite quantity of product or future service requirements at agreed upon terms for 20 years (renewed every five years)
9
Top Ten Federal Buyersfor Small Business
DOD – www.dod.gov $143B
DOE – www.doe.gov $19B
NASA – www.nasa.gov $11B
GSA – www.gsa.gov $11B
VA – www.va.gov $6B
USDOJ – www.usdoj.gov $5B
DHHS – www.os.dhhs.gov $5B
USDA – www.usda.gov $4B
DOT – www.dot.gov $2.5B
USTREAS – www.ustreas.gov $2.5B
10
Socioeconomic Profile
FY2001 FY2002
Small Business $ 5.5B (33.6%) $ 7.2B (34.2%)
SB Disadvantaged 1.5B (8.9%) 2.0B (9.7%)
SB Woman-owned 744.3M (4.5%) 971.7M (4.6%)
8(a) 249.8M (1.5%) 444.7M (2.1%)
SB Veteran-owned 207.0m (.5%) 197.4M (.9%)
11
How to Become a GSA Schedule Contractor
Obtain Solicitation from www.FedBizOpps.gov
Complete Solicitation – provide information requested
Submit/Mail to address specified
Evaluation – respond to request for additional info
Negotiation – Successfully negotiate prices, terms, and conditions
Award is made and contract number is assigned
Pre-Award process can take about 6-8 months
12
FedBizOppsOnline source to download solicitations from Federal Agencies
www.fedbizopps.gov General Information Vendors – Find Business Opportunities Vendor Notification Service News PRO-Net SUB-Net Help
17
Preparing a Valid Offer toa GSA Solicitation
Reference: The FSS Reference Guidehttp://apps.fss.gsa.gov/contractorguide/
The offer or proposal is comprised of the following: A Standard Form (SF) 1449 The solicitation A commercial price list A Commercial Sales Practices Format (CSP Format) Past Performance Evaluation Report Other data as necessary
18
SF 1449
The cover page to your offer/proposal Each offeror must complete blocks 12, 17,
23, 24, and 30 Must be signed by an authorized person of
the company When an offer is accepted, SF 1449 is
executed by both the Government and the company and becomes part of the contract
19
The Solicitation
Contains numerous clauses that become part of the contract upon award
Certain clauses require responses that must be completed --- READ CAREFULLY
20
Commercial Price List
Two copies of your dated (or otherwise identified) commercial pricelist and catalog containing the products you plan to offer must be submitted with your offer
Acceptable forms of pricelists include: published printed, computer generated, and copies of internal pricelists
The products offered must be marked with the Special Item Number (SIN) under which they fall
All other products not offered must be lined out or marked "excluded“, and initialed by offeror.
21
Commercial Sales Practice Format(Form CSP-1)
Foundation for contract negotiations Government’s method of assuring “most
favored customer” pricing Vendors are not required to grant GSA most
favored customer pricing --- only fair and reasonable pricing
22
Commercial Sales Practice Format(Form CSP-1)
Essential that CSP Format is current, accurate, and complete as of 14 calendar days prior to proposal submission
Must also disclose any changes in your price list(s), discounts and/or discounting policies which occur after the offer is submitted, but before the close of negotiations
23
Failure to Provide Current, Accurate and Complete Data
Can lead to penalties under the contract’s Price Adjustment clause
Can lead to penalties under the False Claims Act
Can lead to noncompliance situations with Price Reductions clause during performance
Missed opportunities at negotiations
24
Completion of CSP Format
CSP Format information is required for each SIN
Column 1 Column 2 Column 3 Column 4 Column 5
Customer Discount Qty/Volume FOB Term Concessions
25
Completion of CSP FormatQuestion 3 ---
IF. . . THEN. . .
Govt price < Best pricePrepare CSP Format for customers receiving the most favored price
Govt price > Best pricePrepare CSP Format for all customers that receive better pricing
26
Customer A "customer" is any entity, except the Federal
Government, which acquires supplies or services from the Offeror– Original equipment manufacturers– Value added resellers– State and local governments– Distributors– Educational institutions – Dealers– National accounts– End users
27
Discount
“Discount” means a reduction to catalog prices (published or unpublished)– Discounts include, but are not limited to, rebates,
quantity discounts, purchase option credits, and any other terms or conditions other than concessions) which reduce the amount of money a customer ultimately pays for goods or services ordered or received
– Any net price lower than the list price is considered a “discount” by the percentage difference from the list price to the net price
28
Concession
“Concession” means a benefit, enhancement or privilege (other than a discount), which either reduces the overall cost of a customer's acquisition or encourages a customer to consummate a purchase– Freight allowance
– Extended warranty
– Extended price guarantees
– Free installation
– Bonus goods
29
Price Analysis & Negotiations
Govt’s objective is to obtain an offeror’s best price
Govt price analysis performed to assess price reasonableness and establish Govt negotiation objectives
Purpose of negotiations is to resolve differences between the offeror’s proposal and the Govt’s negotiation objectives
30
Conclusion of Negotiations
Contracting Officer will request proposal revision (i.e., BAFO)
The proposal revision confirms the terms and conditions agreed upon between the Government and your authorized negotiator
Reach agreement on the "Basis of Award" category of customer on which the Price Reduction clause will be predicated
31
“Basis of Award” Customer
Agreed upon by Contracting Officer and offeror Can be different for each item on price list Can be a single customer or a category of
customers (e.g., National Accounts) For example, if the “Basis of Award” is National
Accounts, and this category is currently receiving a 10% discount; should the offeror increase the discount to this category of customer, then the same discount change shall be passed onto the Government
32
Proposal Revisionshould specify, at a minimum. . .
“Basis of Award” class of customer
Date negotiations concluded Discounts or net prices Delivery terms and period Economic Price Adjustment
threshold Geographic coverage Industrial Funding info and
point of contact
Installation, maintenance, or training, etc., as offered
Prompt pay discount Special Item Number(s) Subcontracting Plan info, if
applicable Warranty provisions Acceptance or non-acceptance
of Government purchase cards above the micropurchase threshold
33
Upon Award The Contracting Officer may return to the
contractor a copy of the contract and one copy of the catalog/pricelist as accepted by the Government
The contractor may also be furnished with a list of addresses which are to receive a copy of the catalogs/pricelists
The Contracting Officer may also provide instructions for submitting electronic contract pricelist data in a prescribed electronic format
34
Managing the Risks After Award
Invest the time and money to comply with the rules, regulations, and contract clauses– Price Reductions (GSAR 552.238-75)– Modifications (GSAR 552.243-72)– Economic Price Adjustments (GSAR 552.216-
70)– Contractor’s Report of Sales (GSAR 552.238-
74)– Industrial Funding Fee (GSAR 552.238-76)
35
Report of Sales The Contractor must report the quarterly dollar value (in
U.S. dollars and rounded to the nearest whole dollar) of all sales under the contract by calendar quarter (i.e., January-March, April-June, July-September, and October-December)
The Contractor must report the quarterly dollar value of sales on electronic GSA Form 72A, Contractor's Report of Sales, to the FSS Vendor Support Center (VSC) Website at Internet, http://VSC.gsa.gov The Contractor must report sales separately for each National
Stock Number (NSN), Special Item Number (SIN), or subitem. If no sales occur, the Contractor must show zero on the report for
each separate NSN, SIN, or subitem.
36
Report of Sales The Contractor must register with the VSC before using
the automated reporting system – To register, the Contractor (or its authorized representative) must
call the VSC at (703) 305-6235 and provide the necessary information regarding the company, contact name(s), and telephone number(s).
– Registration can also be done at VSC web page - http://VSC.gsa.gov
– The VSC will then issue a 72A specific password and provide other information needed to access the reporting system.
– Instructions for electronic reporting are available at the VSC Website or by calling the above phone number.
Each report is due 30 days following the completion of the reporting period --- a close-out report is due within 120 days after the expiration of the contract
37
Industrial Funding Fee
The Contractor must pay the GSA an Industrial Funding Fee (IFF) within 30 days after the end of each quarterly reporting period as established in clause 552.238-74, Contractor's Report of Sales
The IFF equals 1% of total quarterly sales reported --- soon to be .75%
38
Industrial Funding Fee
The IFF is a customer paid fee to reimburse GSA for the costs of operating the schedules program.
The contractor is a collection agent for the IFF.
The IFF is included in the award price(s) and reflected in the total amount charged to ordering activities.
39
Reporting Requirements
What? Where? When? Who?Affirmative Action (EEO-1)
Contracting Agency
Annually
NLT 3/31
If applicable
IFF GSA Quarterly All
Sales GSA Quarterly All
Subcontracting (SF-294/SF-295)
PCO/ACO & SBA 4/30 & 10/30 If applicable
VETS 100 Dept of Labor Annually
NLT 9/30
All
CCR CCR Annually All
40
Post Award Activities
Register for passwords to report sales and
download Schedule Input Program (SIP) software
Prepare and distribute authorized price list
Prepare and upload SIP data files
Meet with Industrial Operations Analyst (IOA)
Perform contract administrative actions
Market, market, market, market, market!
41
Marketing Tips Distribute GSA approved price list Load contract to GSA Advantage! Maximize your web presence --- GSA logo identifiers Links between your website and GSA Advantage! Advertise, market, and promote your new GSA schedule contract Modify your company business cards to prominently reflect your
new GSA affiliation Enter into teaming arrangements Look for Blanket Purchase Agreement opportunities Understand and comply with the terms and conditions of the FSS
program and your contract
42
Marketing Approaches
Market to prospective government customers using the same mediums you use to reach commercial customers, including . . .
Print Trade shows Web Sales calls Network Any and all other ways!
43
Marketing Approaches con’t.
Market to prospective government customers using GSA related vehicles, including . . .
Print - MarkeTips - special publications, e.g., Environmental Products and Services Guide (EPSG)
Trade shows - GSA Expo and Outreach Europe - PSX Expo Web - GSA Advantage! - acquisition center databases
44
Marketing Approaches con’t.
Work at both you finding customers and customers finding you . . .
Maintain profiles in CCR and PRO-Net Monitor FEDBIZOPPS, DODBUSOPPS et al Research past sales activity in Schedule Sales Query
(SSQ) and Federal Procurement Data System (FPDS)
Develop and communicate “Best Value” criteria Think “out of the box” to find prospective
customers who need your products/services
45
Before you get started. . . Answer the following. . .
Do you have the expertise to administer a Government contract?
Do you have the discipline to comply with the requirements of a Government contract?
Are you willing to spend time and money at the outset to ensure compliance during performance?
Are you willing to create the infrastructure to ensure compliance?
If so, then GSA FSS contracts can be a great source for additional revenue.