Introduction to Government Contracting

1. Introduction toGovernment Contracting

2. Agenda • What It Takes To Be a Gov’t Contractor • How To Find Customers and Sell To Them • Demystifying the Red Tape • Getting a Contract • Making a Profit • Staying Out of Trouble • Where To Get Help Introduction to Government Contracting

3. What It Takes • Be in business with some happy customers • Have adequate working capital or credit • Register with CCR and State Procurement Office • Standardize your pricing practices • Keep your written business plan up to date • Maintain detailed records • Learn customer’s eligibility requirements Introduction to Government Contracting

4. Finding Customers • Learn how to read bid listings • Look for both “buyer” & “user” in each agency • Have prepared literature: price list, line card, capability statement • Utilize networking events & conferences • Get to know the small business officer Introduction to Government Contracting

5. Forthcoming Events • April 27-28 in Shreveport area: Fourth Annual Government Procurement Conference at Diamond Jack’s Casino & Resort in Bossier City LA • May 20-21: Deep East Texas Contracting Opportunities Conference, Nacogdoches • May 12-13: TKO Seminars at DSCC • June 2 in Little Rock: Arkansas Procurement Opportunities Conference (a matchmaking event) • Pre-conference preparation training workshops • June 11-12: WAWF classes at APAC in Malvern Introduction to Government Contracting

6. Demystifying Red Tape • Ask us to translate the fine print for you • Start with what you know best, keep it simple • Many transactions are electronic so have internet • Social policy is intertwined with transactions • Your customer may not have authority to buy • Learn the language of “governmentese” • Ask us to explain anything you don’t understand Introduction to Government Contracting

7. Getting a Contract • Solicitation + Offer + Acceptance = Contract • Consideration • Legal purpose • Parties capable of contracting • Meeting of the minds (agreement) • How to avoid 3 common pitfalls: • Be Responsive (do what they require, on time) • Be Responsible (have the necessary capability) • Be Competitive (charge a reasonable price) Introduction to Government Contracting

8. Subcontracting • Consider selling to government contractors, especially for a portion of their large projects • Carefully manage your own subcontracts and purchase orders to comply with your prime contract requirements • Use written teaming agreements when proposing a package deal to the government Introduction to Government Contracting

9. Making a Profit • “Low Bid” isn’t always “Best Value” – charge enough. • Know what your cost of doing business really is. • Cover your cost of extra paperwork, clerical help • If customer changes the order, change the price. • Feds to pay promptly, but some state/local agencies take up to 180 days, so plan cash flow carefully. • Avoid special discounts, stick to established pricing. • They want to be your “most favored customer”. Introduction to Government Contracting

10. Staying Out Of Trouble • Avoid gifts, favors, free samples, anything that has the appearance of impropriety. • All communication should be formal, avoid what could be misinterpreted, tell the truth. • Offer only what is required, then offer alternates. • Perform or deliver exactly as in the contract • Submit the bill exactly as in the contract. • Call us immediately if something isn’t right • Avoid litigation by getting help before it’s too late Introduction to Government Contracting

11. Getting Help • Procurement Technical Assistance Program • Department of Defense and local host agencies sign Cost-Sharing Cooperative Agreements for regional or statewide service • 93 centers in 48 states + Puerto Rico + Tribal • Purpose: help small businesses market products & services to federal, state, and local governments. • Generate revenues and create/retain jobs • PTACs cooperate closely with other resources such as SBDCs, MEPs, VetBiz, etc. Introduction to Government Contracting

12. Services Available at PTACs • Electronic bid-matching leads • Local bid opportunity listings • Counselling and advice one-on-one • Group workshops on specific topics • Seminars and conferences • Publications, resources, technical assistance • Referrals to other assistance centers for other help Introduction to Government Contracting

13. APAC Agri Project • Planning grant from Winthrop Rockefeller Foundation • Purpose: to extend APAC services to farm-based businesses in remote areas • Converting some of our workshops to electronic “distance learning” format, to reach rural areas • Working closely with County Extension Offices to coordinate with producers • Seeking technology to support internet access Introduction to Government Contracting

14. Website Demo • Go online: http://www.arcommunities.org/apac.htm • Veterans In Business page: http://www.arcommunities.org/APAC/vet_business.htm • Discussion • Questions • Ideas Introduction to Government Contracting

15. Meet Your APAC Staff • LaDonna Turpin, Procurement Technical Assistant • Steve McDonald, Procurement Advisor • Richard Evans, Procurement Advisor • Sue Coates, Program Director--Instructor • Jane Kriigel, Secretary II • Jan Rogers, Secretary II Introduction to Government Contracting

16. How To Reach Us 127 West 5th St. at Locust Malvern AR 72104 Phone: 501-337-5355 Fax 501-337-5045 apac@uaex.edu http://www.arcommunities.org APAC “Helping Arkansas firms serve & supply public agencies nationwide” Introduction to Government Contracting

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