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Basics to Government Procurement Small Business & Technology Development Center (SBTDC) Procurement Technical Assistance Center (PTAC) Archie Black Procurement Counselor 704 548-1090, ext 3346 Small Business & Technology Development Center (SBTDC)

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Basics to Government Procurement

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basics to government procurement

Basics to Government Procurement

Small Business & Technology Development Center (SBTDC)

Procurement Technical Assistance Center (PTAC)

Archie Black

Procurement Counselor

704 548-1090, ext 3346

small business technology development center sbtdc www sbtdc org
Small Business & Technology Development Center (SBTDC)

Confidential one-on-one counseling

General Business - planning, marketing, financing, human resources & operations

Manufacturing & Technology Development and Commercialization

International Business

Marine Trades

Management Education Services

Procurement Technical Assistance Center (PTAC)

sbtdc statewide presence
SBTDCStatewide Presence

Asheville, Beaufort, Boone, Chapel Hill, Charlotte, Cullowhee, Durham, Elizabeth City, Fayetteville, Greensboro, Greenville, Hickory, Pembroke,Raleigh, Rocky Mount, Wilmington, and Winston-Salem

ptac services
PTAC services. . .

Assist businesses in selling their products and/or services to the federal, state and local government

Understanding government procurement policies and procedures (differ at each level of government)

Completing mandatory registrations

Obtaining small business program certifications

Defining target agency(s)

Fine tuning market strategies

Locating procurement opportunities

Reviewing bids and proposals

Types of procurement tools (IFB, RFP, GSA, Impact Card)

what can the government market do for my business
What can the Government Market do for my business?
  • What a Government Contract can do for your business
    • Diversify your customer base
    • Cover overhead costs
    • Even out cash flow
  • What a Government Contract can notdo for your business
    • Jump-start your business
    • Save your business
    • Should not be the sole source of your business
what can the government market do for my business6
What can the Government Market do for my business?
  • Government Contracting Facts 
    • Less than 5% of the businesses in the United States do business with the U.S. Government.
    • The U.S. Government is the largest company in the world. Approximately $1 billion in new opportunities in the services sector of Government contracting were available to bid on by private business each day.
    • The federal government signs over 11 million contracts a year.
    • Companies are winning and are awarded new contracts daily.
    • About 95% of federal contracts are awarded to small- and medium-sized business vendors.


what can the government market do for my business7
What can the Government Market do for my business?
  • Government Contracting Facts 
    • Government procure services range from Food Services and Janitorial projects to complex space flight systems development.
    • Small Business Set-Aside Program (SBSA) was developed to help assure that small businesses are awarded a fair proportion of government contracts by reserving certain government purchases exclusively for participation by small business concerns.
      • Any contract that has an anticipated dollar value between $3,000 and $100,000 in value is reserved for small, small disadvantaged, woman-owned, and small veteran-owned businesses, small HUBZone and small service disabled veteran businesses.


what can the government market do for my business8
What can the Government Market do for my business?
  • Benefits  
    • You get paid regularly from this client. Government contracting allows businesses, many small and mid-sized businesses, to have a bevy of profitable, long term contracts.
      • For example, many Federal Government contracts have continuous contract terms for three to five years. This provides a long term steady cash flow with decent profit margins.
    • Your client won't move away, run away and hide, and not pay their bills.
    • The high profile your company achieves as a result of Government Contracts is a good advertising tool for your firm.


what can the government market do for my business9
What can the Government Market do for my business?
  • Benefits  
    • Government contracting can make your business grow fast. Companies currently involved in government contracting started out with smaller contracts and worked their way into larger and larger contract awards.
    • Begin to prepare your company today for long term growth in the expanding Federal Government marketplace.
    • The government is literally seeking vendors in all avenues of business. Whatever service or product your company provides, the government is seeking it.


potential state county government customers www ips state nc us
Potential State/County
  • State Agencies
  • Universities
  • Community Colleges
  • Public Schools
  • Institutions
  • Local Governments
potential federal customers
Potential Federal Customers
  • Department of Defense (largest purchaser)
    • Military Installations
  • General Services Administration (GSA)
  • Veterans Administration (VA)
  • Defense Logistics Agency (DLA)
  • Federal Emergency Management Agency (FEMA)
  • United States Department of Agriculture (USDA)
  • Department of Housing and Urban
  • Department of the Secretary of State


how the government buys
How the Government Buys
  • The government purchases the products or services it needs by two methods: sealed bidding and negotiation.
    • The sealed bidding is formal advertising which involves the issuance of an Invitation for Bid (IFB) by a procuring agency. Following receipt and evaluation of the bids, a contract is usually awarded to the lowest priced bidder, determined to be responsive and responsible by the contracting officer.
    • The second method of competitive proposals is buying by negotiation which involves the issuance of a Request for Proposal (RFP) or Request for Quotations (RFQ), and the negotiation of each element in the proposal. An award is made to the proposer who has the best proposal in terms of both technical content and price.
common items the government buys
Common Items the Government Buys

Architectural: Civil Engineering, Engineering Design and Drafting

Cleaning and Custodial: Janitorial Equipment and Supplies, Linen and Towel Services, Parking Lot, Window washing

Construction and Remodeling: General Contractor, Roads, Bridges,/ Sidewalk, Roofing / Roof, Door, Window, Ceiling, Flooring / Floor, Fencing / Fence, Painting, Carpentry, Cabinet, Mill Work, Plumbing, Pumps, Pipeline, Sanitation, Drainage, Water-Proofing, Electrical / Electronic, Lighting, Elevators, Escalators, Lifts, Playground

Construction and Building Materials: Masonry, Stone, Brick, Tile, Drywall, Plaster, Road Work, Concrete

Consulting Services: Grants Writing, Lobbyist, Legal, Litigation, Mediation, Arbitration

Environment and Conservation: Surveying, Mapping, Aerial Photography, Environmental Testing, Site Inspection, Asbestos, Hazardous Waste, Trash Disposal,

Recycling, Waste Water, Sewage Treatment, Air Purification, Tanks, Excavation, Demolition, Salvage


common items the government buys14
Common Items the Government Buys

Financial and Accounting: Accounting, Bookkeeping, Auditing, Credit Card Services, Credit Reports, Medicaid billing, Debt Collection, Financial Consulting,

Retirement Plan, Investment

Food Services: Cafeteria, Catering, Drink, Vending Machines, Concession Stands

Garden and Landscaping: Lawn Care, Mowers, Snow Removal, Sprinkler, Irrigation, Insect, Pest and Bird Control, Herbicide

HR Services, Personnel, Staffing, Recruiting, Executive Search, Training, Office and Clerical, Secretarial, Proficiency Assessment, Relocation

Computer Hardware: Computer Cabling, Hardware Rental, Repair and Maintenance

Computer Software: Information Technology (IT) Consulting, Programming, Computer Security, Firewall, Database, Data Storage, Backup & Recovery, E-learning, Computer or Web-based Training, E-Procurement

Display, Graphic Design


how can the government find you
How can the Government Find You
  • The government is literally seeking vendors in all avenues of business. Whatever service or product your company provides, the government is seeking it.


steps to sell to the government
Steps to Sell to the Government

Determine small business program set aside eligibility

Identify your product or service

Obtain appropriate commodity/service codes

Register in federal/state/local contractor databases

Find current procurement opportunities

Familiarize with Government contract procedures

steps to sell to government
Steps to Sell to Government

Investigate feasibility of Federal Schedule Supply (FSS) and/or State term contracts

Credit card purchases – are you set up

Explore subcontracting opportunities

Determine customers to target - Review federal, state and local gov’t procurement policies and procedures




small business program federal
Small Business Program - Federal
  • FAR PART 19 – Small Business Program
    • It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to:
      • small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.
      • such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance.
      • the Small Business Administration (SBA) counsels and assists small business concerns and assists contracting personnel to ensure that a fair proportion of contracts for supplies and services is placed with small business.
small business set aside program federal
Small Business Set Aside Program - Federal
  • 8(a)/SDB Business Development Program
    • SBA application and certification process
    • Must be small business
    • 51% owned and controlled by small and disadvantaged individual(s)
    • 9 year business development program
  • Small Disadvantaged Business (SDB) Program (no set aside procurements)
    • 5% goal for federal agencies
    • Must be small business
    • 51% owned and controlled by small and disadvantaged individual(s)
    • Self certification


small business set aside program federal20
Small Business Set Aside Program - Federal
  • Historically Underutilized Business Zone (HUBZone)
    • SBA application and certification process
    • Must be US Citizen
    • Must be small business
    • Principal office must be in a HUBZone and 35% of employees must live in a HUBZone
    • 3% goal for federal agencies


small business set aside program federal21
Small Business Set Aside Program Federal
  • Women Owned Business Program (no set aside procurements)
    • 5% goal for federal agencies
    • 51% owned and controlled by a woman(s)
    • Must be small business
    • Self Certification
  • Service Disabled Veteran Owned Business Program
    • 3% goal for federal agencies
    • 51% owned and controlled by a SDV
    • Self Certification


government procurement dollars fy 2007
Government Procurement DollarsFY 2007
  • Federal Procurement
    • $440 Billion
    • Small Business Market Share - $60 Billion
  • State of North Carolina Procurement
    • $4 Billion a Year
federal spending fy 2007 dollars 1 oct 06 30 sept 07
Federal SpendingFY 2007 Dollars1 Oct 06 – 30 Sept 07

Total Small Business Eligible Dollars - $379B

Small Business Dollars -$84B or 2.22%

SDB Dollars - $25B or 6.58%

Veteran - $10B or 2.88%

SDVOSB - $14B or 1.1%

Woman Owned Business - $13B or 3.41%

HUBZone Business - $9B or 2.24%

federal spending fy 2007 subcontracting dollars 1 oct 06 30 sept 07
Federal SpendingFY 2007 Subcontracting Dollars1 Oct 06 – 30 Sept 07

Total Small Business Eligible Dollars - $185B

Small Business Dollars -$65B or 35.5%

SDB Dollars - $9B or 5.0%

Veteran - $5B or 2.79%

SDVOSB - $1B or .83%

Woman Owned Business - $11B or 5.91%

HUBZone Business - $3B or 1.53%


small business programs for state and city county procurement
Small Business Programs for State and City/County Procurement
  • Historically Underutilized Business
    • Don’t confuse with HUBZone
    • NC Office of Historically Underutilized Business certification
    • Aspirational goals may vary by state agency, city and county
      • Construction contracts
      • Procurement of goods and services
  • NC Department of Transportation (
    • Disadvantaged Business Enterprise (DBE)
    • Small Business Enterprise Program SBE)
  • City/County
    • M/WSBE Programs
    • HUD/MWSBE Coordinators


small business programs historically underutilized business
Small Business ProgramsHistorically Underutilized Business
  • Statewide Uniform Certification (SWUC)
    • streamlines the certification process by reducing the number of public sector entities by which businesses must apply for certification.
    • provides for a centralized, uniform, comprehensive, statewide database of certified HUB/MWBE firms that prime contractors, project managers, purchasing agents, and HUB /MWBE Coordinators can utilize.
    • All firms that are certified as Historically Underutilized Businesses to participate in Minority Business Programs as minority, women, disabled, or disadvantaged owners will be listed on the unified SWUC Directory.


state spending fy 2006 2007 july 1 2006 june 30 2007
State Spending -- FY 2006 -2007July 1, 2006 – June 30, 2007
  • Construction
    • Total Purchases - $781.1M
    • HUB Purchases - $100.4M or 12.85%
  • HUB Purchases – Goods and Services
    • Total Purchases - $4.8B
    • HUB Purchases - $372.7M or 7.77%
  • MBE - $121.4M or 2.53%
  • WBE - $221.7m OR 4.62%
  • Disabled - $12M or .25%
  • Non profit - $2.9M or .06%
  • Subcontract - $10.5M or .22%


registration for federal procurement
Registration – For Federal Procurement
  • Central Contractor Registration (CCR) ( update annually)
    • DUNS number – Data Universal Numbering System (free)
    • TIN – Tax Identification Number
    • NAICS code (North American Industrial Classification System)
    • SIC – Standard Industrial Classification
    • FSC – Federal Supply Classification
    • PSC – Product Service Code
    • Banking Information
    • Primary and Alternate Contact Information
  • Complete SBA Profile
    • After registration in CCR is validated
    • Document your SBA number
registration for federal procurement29
Registration – For Federal Procurement


  • On line Representations and Certifications -ORCA
    • Website:
    • To register you need:
      • DUNS number – Data Universal Numbering System
      • MPIN
  • NOTE: Complete registration in CCR and SBA profile and ORCA before completing applications for 8(a), and HUBZone.
registration for state procurement
Registration – For State Procurement
  • NC E-Procurement:
    • Informal and formal
    • 1.75% fee
  • Vendor Link:
      • User Id and password
      • Tax ID Number
      • Email address
      • NIGP Codes
      • HUB – Historically Underutilized Business can be done at registration
registration for city county procurement
Registration – For City/County Procurement
  • Check with each City/County Government website for registration requirements
    • Mecklenburg County:
    • City of Charlotte:



locating bid opportunities federal procurement
Locating Bid OpportunitiesFederal Procurement
  • Federal Business Opportunities (
    • Register business – it is the single government point-of-entry for Federal government procurement opportunities over $25,000.
    • Government buyers publicize their business opportunities by posting information directly to FedBizOpps via the Internet.
    • Through this portal, commercial vendors seeking Federal markets for their products and services can search, monitor and retrieve opportunities solicited by the entire Federal contracting community.
  • Check federal agency websites for Business opportunities
  • Procurement Forecast – (


locating bid opportunities federal procurement33
Locating Bid OpportunitiesFederal Procurement
  • General Service Administration (
    • contracts for a large volume of goods and services on a worldwide basis for all federal agencies. Products and services purchased by GSA include office supplies, paints, construction, training services, and computer-related supplies and equipment
    • Plans to introduce a bill that will open the GSA schedules to cooperative purchasing. Under that approach, nonfederal entities (state and local governments) will have access to the same goods and services federa; agencies can buy from GSA schedule contractors.


locating bid opportunities federal procurement34
Locating Bid OpportunitiesFederal Procurement
  • GSA Schedules
    • Review the list of GSA Schedule Solicitations to determine the applicable GSA Schedule and corresponding solicitation number under which the supplies or services may be offered. 
    • Click on the appropriate Solicitation Number to be linked directly to the solicitation files in FedBizOpps.
    • Download the solicitation and follow the instructions in the document


other bid opportunity websites for federal procurement
Other Bid OpportunityWebsites for Federal Procurement

Combined Headquaters Construction Employment and Subcontracting

North Carolina Military Business Center:

Army Single Face to Industry:




ACA Southern Region Contracting Ctr:


locating bid opportunities state county city
Locating Bid OpportunitiesState/County/City
  • Interactive Purchasing System (IPS) (
    • list bid opportunities for state agencies, universities, community colleges, counties and cities
    • electronic notifications
    • Search by category, department, bid number or open bids
  • Check agency websites for Business opportunities


locating bid opportunities
Locating Bid Opportunities
  • American Recovery and Reinvestment Act (Stimulus Projects)
    • - State Web site describing and tracking federal recovery funds in North Carolina and listing local contract and grant opportunities
    • - Federal Web site describing and tracking the American Recovery and Reinvestment Act
    • For NC and more specifically provided by the NC League of Municipalities.
    • For NC provided by the NC Association of County Commissioners


subcontracting opportunities
Subcontracting Opportunities
  • SBA SUB-Net (
    • List Contractors and description of work
  • Doing Doing business with DOD (
    • List DOD Prime Contractors
    • Subcontracting Plans required for:
      • Commodities and Service contracts $550K or greater
      • Construction contracts $1M or greater
  • Certifications (8a), SDB, HUBZone, Woman, Veteran, Service Disabled Veteran) are essential


  • Investigate the prime contractors
    • History of project performance
    • History of paying subcontractors
  • Know the contract requirements
  • Get subcontract agreement in writing
    • Performance and payment terms made clear prior to signing
  • Know who the contracting officer is
  • Be aware of when the inspector accepts your work


success steps
Success - Steps
  • Learn who buys your products and/or services – Target the right customer
  • Know something about your customer/audience (website)
  • Be proactive --- build relationships early and often
  • Have professional promotional materials
    • Brochure
    • Capability statement
    • Website (updated information)
  • Small business certification(s) – critical for leverage
  • Visit Small Business Specialist or Procurement Representatives
  • Know your competitors
  • Attend networking events and trade shows
success steps41
Success - Steps
  • Have 3 marketing “presentations” ready at all times
    • Elevator speech
    • One page capability statement
      • Few graphics
      • Company name, website, contact info, locations, small business categories, CAGE CODE, NAICS code and capabilities
      • Certifications, contracts with POC info, subcontracts, GSA contracts
    • Full capability statement
business liasons federal procurement
Business Liasons – Federal Procurement
  • Small Business Liaison Officer (SBLO)
    • Prime contractor employee (Public Law 95-507)
    • Subcontracting plans have goals
      • $550K> for goods and services
      • $1M> for construction
      • Good strategy for entry into federal procurement
  • Small and Disadvantaged Business Utilization Specialist (SADBU)
    • Is not a government procurement officer or buyer
    • Acts as liaison between business and buyers
    • Key person for marketing
federal procurement team
Federal Procurement Team
  • Contracting Officers (CO)
    • Only person that can obligate the government
      • Procurement Contracting Officer – pre-award decisions
      • Administrative Contracting Officer – post award decisions
  • Contract Specialist and/or Administrator
    • CO assistant in the procurement process
  • Program Managers
    • Technical experts
    • Control budgets
  • End Users
    • Initiates the requirement
    • In some cases recommends the source
state city county procurement team
State, City, County Procurement Team
  • Division of Purchase and Contract(
    • List of state Purchasing Managers and Procurement Specialist
  • Business Liaisons
    • Office of Historically Underutilized Businesses
      • List of HUB and MWSBE Coordinators
        • Universities, Community Colleges
        • Cities, Counties, Municipalities
        • State Prime Contractors
        • Public School Systems


key websites
Key Websites

Central Contractor Registration: (


Federal Business Opportunities: (


NAICS Code: (

SIC Code: (

FSC Code: (

PSC codes: ( )

NIGP Codes – (


key websites46
Key - Websites
  • Federal Acquisition Regulation (FAR)
  • Vendor Link
  • Interactive Purchasing System
  • NC Agency Purchasing Manual
  • State Construction Office


key websites47
Key -- websites
  • Federal Government acronyms
    • Research contacts and opportunities
  • Federal Procurement Data System (FPDS)
    • Statistical information on federal contracting
      • Detailed data for >$25K
      • Summary data for <$25K
key websites48
Key -- websites
  • DOD Prime and Subcontracting Goals
  • HUB Spending Report:
  • Small Business Administration Goaling Program


procurement types federal procurement
Procurement Types – Federal Procurement
  • Micro-Purchases
    • Purchases Less than $3000 (supplies), $2500 (services) and $2000 (construction)
    • Credit Card transactions or purchase orders
    • Open to large and small business
    • Competition not required
    • Approximately 700,000 cards issued
    • $18 billion in annual sales
procurement types federal procurement50
Procurement Types - Federal Procurement
  • Simplified Procurement
    • Purchases $3000 up to $100,000
    • Set-aside for small business only
    • Informal buys up to $25,000
    • Formal advertisement required for purchases over $25,000
    • Can be set-aside for 8(a), HUBZone and SDVOSB companies
    • Request for Quote (RFQ)
procurement types federal procurement51
Procurement Types – Federal Procurement
  • Large Contracts
      • Purchases over $100,000
      • Open to large and small businesses
      • Rigid process/well defined requirements
      • Can be set-aside for 8(a), HUBZone and SDVOSB companies
    • Invitation for Bid (IFB)
      • Used for sealed bids/Advertisement is required
      • Negotiations are not permitted
    • Request for Proposal (RFP)
      • Used when seeking innovation and creativity, different ideas or new ways of accomplishing a task/Advertisement is required
      • Negotiations are permitted, but Government usually reserves right to award without discussions
procurement types state agencies
Procurement Types – State Agencies
  • Categories of Purchases
    • Apparatus, supplies, material and equipment
    • Construction or repair
    • Service contracts, purchase of real property, lease of personal property
  • Procurement Dollar Thresholds (varies by agency)
    • Informal
    • Formal
bidding tips
Bidding – Tips
  • Get copy of entire most current solicitation
    • Supporting documents (specs, drawings, SOW)
    • Amendments too – must be signed and acknowledged
  • Read solicitation completely and thoroughly (at least 2X)
    • May need a bid/proposal development team
    • Develop a checklist to stay on task
  • Make working copy of solicitation
  • Make lists of questions or areas of ambiguities
bidding process preparation
Bidding – Process/Preparation
  • Attend pre-proposal site visits/meetings
    • May be mandatory in some instances
    • Arrive early
  • Ask questions during site visit
  • Check out competition or subcontracting opportunities
  • Read CO response to questions, respond accordingly
  • Use proposal checklists provided by agency
  • Sign and submit the bid/proposal on time, don’t be late
  • Attend bid opening (if applicable)
  • If RFP request debriefing within mandatory timeline
successful proposal keys
Successful Proposal Keys

Be Responsive

Be Responsible

Provide solution to the problem

Respond to all requirements in the request for proposal

Give them what they ask for not what you want to give them

Provide good references


Get registered AND get certifications

Identify target customers

Familiarize yourself with the government agency

Build relationships early – people by from people they trust

Consider teaming and/or joint ventures

Mentor-Protégé program

Know were to find opportunities


thank you
  • Be patient
  • Be persistent
  • Be respectively aggressive