Selling to the Federal Government

Man-Li LinBusiness Development Specialist

US Small Business AdministrationNew York District Office

Tel: 212-264-7060E-mail: Man-Li.Lin@SBA.gov

First Thing To Do

Obtain a Data Universal Number System (DUNS) Number

Call D&B at 1-866-705-5711 to obtain a free DUNS number for federal CCR registration. The process takes about 10 minutes. Or, you can register online at:

http://fedgov.dnb.com/webform/

Next, Get Registered

Central Contractor Registration (CCR) http://www.ccr.gov

Dynamic Small Business Search Registration http://dsbs.sba.gov/dsbs/

***please keep the ID/password codes given. You need to visit/update the profile at least once every 6 months.

Marketing to the Federal Government

Your government customers need to know three things:

1. That you exist and want their business 2. That your products or services can help

them cost-effectively achieve their objectives or are better in some way than what they are currently using

3. How to buy from you

Government buyers are looking for:

High quality products, Reliable suppliers, and Fair prices

Vendors that help them meet their purchasing goals for small/women-owned businesses, and other targeted categories

More than one potential supplier Simplicity

Eight Ways to Market to the Federal Government

1. Call potential buyers within federal agencies

2. Network: buyers, other vendors, and potential partners

3. Get help from the experts

4. Use government-wide purchasing vehicles: Federal Services Administration (GSA) Multiple Award Schedule (MAS)

Eight Ways to Market to the Federal Government

5. Look for subcontracting opportunities

6. Use direct mail or e-mail

7. Target government field offices

8. Be prepared to do business the way government does

Federal Government Procurement Methods

Micro-purchases- $3,000 Sealed Bidding Requests for Proposal Sole-source Contracts Multiple Award Contracts

Subcontracting Over $500,000 ($1 million for construction) Teaming Agreement

1.Select an attorney with experience

2. Make sure you have an advance confidentially agreement in place before entering any negotiations

3. Include provisions in the teaming agreement that make it enforceable

Subcontracting (2)

4. Make sure the teaming agreement is more than just an “agreement to agree”

5. Include provisions that specify under what circumstances the teaming agreement may be terminated

6. Choose partners that have genuine interest in you. Verify there is executive-level commitment and the corporate cultures are compatible

Self-CertificationsSmall Business – NAICS CodesWomen-owned Small Business (WOSB)Veteran-owned Small Business (VOSB)Service-Disabled Veteran-owned Small

Business (SDVOSB)

Formal Certification Programs8(a) Business Development HUBZone Empowerment Contracting Small Disadvantaged Business (SDB)

Know the FederalContract Certifications

Self-certification as a Small Business

1. visit www.census.gov/NAICS or www.sba.gov/size to know your NAICS code and corresponding size standard

2. The average Federal Tax Returns for the last 3 years must not exceed the size standard of your NAICS code (sole proprietorship: 1040 FTR with all the schedules, especially Schedule C)

3. Veteran /disabled veteran please request from the VA the document attesting to the fact

Now you have the facts/evidences to support your claim that you are a bona fide small business

Formal Certifications

Require 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.

– HUBZone - Small businesses 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.

– SDB - Three-year certification for small, socially and economically disadvantaged firms eligible to receive prime and subcontract preferences.

8(a) & SDB

SBA 8(a) program Applies to all purchases Must be certified by the SBA ‘Sole source’ and

competitive program 9-year term - no renewals All 8(a) firms are SDBs Award must be made at fair

market price FAR 19.8

SDB certification program Applies over $100,000 Must be certified by the SBA Competitive program 3-year term with renewals Not all SDBs are in 8(a)

program 10 % price evaluation credit FAR 19.11 and 19.12

SBA 8(a) Program Certification

Need to register and profile at www.ccr.gov

ONLINE application http://www.sba.gov/8abd PAPER application: 1. Get the forms:

http://www.sba.gov Click TOOL Click FORMS

2. NY, NJ companies sent to:

Philadelphia DPCE, Parkview Towers,

1150 1st Ave, 10th Floor, Suite 1001

King of Prussia, PA 19406

SBA 8(a) Program Certification

Financial assistance Forms-

1. From 413 (personal financial Statement)

2. Form 1624 (Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion…)

3. Form 912(Statement of Personal History)

8(a) Business Development Forms-

Form 1010B(8(a) Business development Program Application

IRS Forms- Form 4506 (Request for

Transcript of Tax Return)

HUBZone Program 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’ program benefits; Can’t consider 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 Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13

HUBZone Program Certification

Apply ONLINE only http://www.sba.gov/hubzone http://www.tinyurl.com/y8pyscz

Service Disabled Veteran Owned Small Businesses

Set-Aside– Buys over $3000– “Rule of Two”– No upward $ limit– Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a)

Sole Source– Buys over $100,000– Only 1 Source– Up to $5.5 M (mfg)– Up to $3.0M (non-mfg)– Can’t consider if FSS, UNICOR, NIB/NISH, or 8(a)

SDVOSBs

Additional Points to Remember: VA determines Service Disability – business size is self-determined; No term limits – no need to apply or reapply; Competitive and sole-source program benefits; Subcontracting and Prime Contracting goals; FAR 19.14

Know the Rules

Federal Acquisition Regulations (FAR) www.arnet.gov/far

Subpart 8.4 – Federal Supply Schedules

Part 13 – Simplified Acquisitions

Part 14 – Sealed Bidding

Part 15 – Contracting by Negotiation

Finding Prime Contract Opportunities

Research Past Purchases‒ Federal Procurement Data System – Next Generation https://www.FPDS.gov

Register, Read “First Time Using Reports”, Obtain standard, special, or customized award data.

Identify Current Opportunities‒ Federal Business Opportunities www.fedbizopps.gov

Identify your product and/or service codes & search.

Obtain Agency Forecasts from sites likehttp://www.womenbiz.gov/forecasts.html

FedBizOppsIdentify Opportunities – Follow the MoneyIdentify Opportunities – Follow the Money

www.fbo.gov

FedBizOpps NoticesFBO Vendor Notification FBO Vendor Notification Service: :

http://www1.fbo.gov/EPSVendorRegistration.htmlVendor The Notification Service sends emails to alert you to new solicitations & modifications, General procurement announcements. It gives first-hand notice of opportunities & links to actual postings, so that you can request the ones you want.Register to receive: all notices from solicitation number; notices from selected organizations and product service classifications; all procurement notices.

FedBizOpps Sign-up

1. Select 1. Select Procurement Procurement

Code, NAICS Code, NAICS

and/orand/or

Buying ActivityBuying Activity

The following postings have been made on FBO:DLALogistics Operations Defense Distribution Center49 -- ICE MACHINE MAINTENANCE AT DEFENSE DISTRIBUTION DEPOTSynopsishttp://www.fbo.gov/spg/DLA/J3/DDC/SP3100%2D06%2D0061/listing.html

2. Receive

daily links

to buys

Finding Subcontracting Opportunities

Subcontracting Opportunities Directory of Large Prime Contractors

http://www.sba.gov/GC/indexcontacts-sbsd.html

SUB-Nethttp://web.sba.gov/subnet

FedBizOpps/FBO - Find Business Opportunities, Search for: Awards

SUB-Net

http://web.sba.gov/subnet/

Joint Ventures & Teams Investigate Joint Venture/Teaming

Arrangements‒ Excluded from affiliation – 13 CFR 121.103(f)(3)‒ “bundled” requirement‒ other than a “bundled” requirement

Consider Mentor-Protégé Programs– SBA – limited to 8(a) firms;– DOD, US Navy, Air Force, FAA, Dept of State, Dept

of Energy, & more – check individual small business programs for details.

Market Your Firm

One on One - 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).

View Solicitations

Request or download a bid package Obtain copies of relevant specifications

& drawings Understand relevant purchasing regulations Federal Acquisition Regulations:

Micro-purchases (under $3,000)

Simplified Acquisitions (under $100,000)

Bids & Proposals (over $100,000)

Contract clauses

Prepare Your Offer

3 Rules for a solicitation:

-Read it…Read it…Read it!!! Request a Procurement History Attend Pre-Bid Meetings

& Walk-Throughs Get clarification of ambiguities Proofread your proposal Submit it on time!

Contract Award

Are you Responsive?

Are you Responsible?‒ Pre-Award Survey: Technical capability & production capability‒ QA‒ Financial: accounts receivable, net worth, cash flow‒ Accounting System‒ System for Qualifying Suppliers‒ Packaging, Marking, Shipping

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

Contract Performance

Getting Paid Promptly

Within 30days The designated agency office actually

receives a complete invoice conforming to the terms of the contract.

- purchase order/contract number, a description of the goods and services, a requisition number, and Electronic Funds Transfer (EFT) information

Know the paperwork process Keep good records Know your options

‒ Progress payments

‒ Prompt Payment Act

EFT (electronic funds transfer) Accept government credit cards

Getting Paid

Seek Additional Assistance

Procurement Technical Assistance Center (PTACs) www.dla.mil/db/procurem.htm

Small Business Specialists www.acq.osd.mil/sadbu/doing_business/index.htm

Procurement Center Representatives (PCRs) www.sba.gov/gc/contacts.html

Commercial Marketing Representatives (CMRs) www.sba.gov/gc/contacts.html

Find online business counseling and training at:http://www.sba.gov/training/index.html

E-Business Institute

ORCA Initiative

ORCA, is an E-Gov Integrated Acquisition Environment (IAE) initiative, that

reduces the administrative burden for contractors submitting the same information to various contracting offices and establish a

common source for this information for procurement offices

across the government.

http://orca.bpn.gov

Helpful Web Sites

DOD Office of Small Business Programs

http://www.acq.osd.mil/osbp/ Procurement and Technical Assistance

Centers http://www.aptac-us.org/new/ Small Business Development Centers http://www.sba.gov/sbdc/

More Helpful Web Sites

SBA’s Home Page: www.sba.gov

Government Contracting: www.sba.gov/GC

Site includes links to all major government contracting programs discussed here plus much, much more.

Find a Procurement Center Representative www.sba.gov/GC/pcr.html

Key Steps to Procurement Success

1. Know your market

2. Research targeted agency budgets

3. Know where to get practical help

4. Take care of the basics

5. Register everywhere you can

6. Develop personal relationships

7. Start Small

Things To Remember

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 How to obtain Contract history

PERFORM AS PROMISED: On-time delivery,

Good Quality, at a Fair Price