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U.S. Small Business Administration Selling to The Federal Government: Winning Federal Contracts for the IRS and NCMA Greater New York Vendor Outreach Workshop April 16, 2009 Federal Contracting Facts

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U s small business administration l.jpg
U.S. Small Business Administration

Selling to The Federal Government:

Winning

Federal Contracts

for the

IRS and NCMA

Greater New York Vendor Outreach Workshop

April 16, 2009


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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


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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 SBAPrograms

  • 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 SBA’s Website

  • At www.sba.gov/businessop/index/html, take online federal procurement training modules to improve your company’s odds to win federal prime and subcontracts

  • Topics today 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

    SBA’s 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.govand select link to GSA Contracts and Schedules


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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 www.dnb.com

  • In order to win federal contracts, your business must be registered in the federal government’s Central Contractor Registration (CCR) database at

    www.ccr.gov

  • Online Representations and Certifications Application (ORCA) https://orca.bpn.gov/


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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)

  • SBA’sFormal 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;

  • Can’t 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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Sole Source

Buys over $100,000

Only 1 Source

Up to $5.5 M (mfg)

Up to $3.5 M (non-mfg)

Can’t consider if FSS,

UNICOR, NIB/NISH,

or 8(a)

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)


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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.acqnet.gov/far

    • 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 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!


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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 company’s 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

    • Attendprocurement 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). View the directory at http://www.sba.gov/aboutsba/sbaprograms/gc/contacts/gc_subcontracts_opportunities.html

    • SBA’s 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. SUB-Net can be reached through the SBA’s Home Page at http://web.sba.gov/subnet.


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    Seek Help From Resource Partners

    • PTAC www.dla.mil/db/procurem.htm

    • Small Business Development Centers - LIDC

    • 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 other SBA programs at http://www.sba.gov/index.html

      - Financial Assistance

      - Contract Opportunities

      - Online Training - Free Online Courses

      - Counseling & Assistance

      - Laws and Regulations


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    U.S. Small Business Administration

    Debra B. Libow

    Procurement Center Representative

    at

    [email protected]

    212-264-4395

    U.S. Small Business Administration

    OFFICE OF GOVERNMENT CONTRACTING

    Area I (CT, ME, MA, NH, NJ, NY, RI, VT, PR and the USVI)


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