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Selling to the Federal Government Man-Li Lin Business Development Specialist US Small Business Administration New York District Office Tel: 212-264-7060.

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Presentation on theme: "Selling to the Federal Government Man-Li Lin Business Development Specialist US Small Business Administration New York District Office Tel: 212-264-7060."— Presentation transcript:

1 Selling to the Federal Government Man-Li Lin Business Development Specialist US Small Business Administration New York District Office Tel: 212-264-7060 E-mail:

2 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:

3 Next, Get Registered  Central Contractor Registration (CCR)  Dynamic Small Business Search Registration *** please keep the ID/password codes given. You need to visit/update the profile at least once every 6 months.

4 Marketing to the Federal Government n Your government customers need to know three things: n 1. That you exist and want their business n 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 n 3. How to buy from you

5 Government buyers are looking for: n 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

6 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)

7 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

8 Federal Government Procurement Methods n Micro-purchases- $3,000 n Sealed Bidding n Requests for Proposal n Sole-source Contracts n Multiple Award Contracts

9 Subcontracting n Over $500,000 ($1 million for construction) n 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

10 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

11  Self-Certifications Small Business – NAICS Codes Women-owned Small Business (WOSB) Veteran-owned Small Business (VOSB) Service-Disabled Veteran-owned Small Business (SDVOSB)  Formal Certification Programs 8(a) Business Development HUBZone Empowerment Contracting Small Disadvantaged Business (SDB) Know the Federal Contract Certifications

12 Self-certification as a Small Business n 1. visit or to know your NAICS code and corresponding size n 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) n 3. Veteran /disabled veteran please request from the VA the document attesting to the fact n Now you have the facts/evidences to support your claim that you are a bona fide small business

13 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.

14 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

15 SBA 8(a) Program Certification n Need to register and profile at n ONLINE application n n PAPER application: n 1. Get the forms: n Click TOOL n Click FORMS n 2. NY, NJ companies sent to: n Philadelphia DPCE, Parkview Towers, n 1150 1 st Ave, 10 th Floor, Suite 1001 n King of Prussia, PA 19406

16 SBA 8(a) Program Certification n 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) n 8(a) Business Development Forms- n Form 1010B(8(a) Business development Program Application n IRS Forms- n Form 4506 (Request for Transcript of Tax Return)

17 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

18 HUBZone Program Certification n Apply ONLINE only n n

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

20 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

21 Know the Rules  Federal Acquisition Regulations (FAR)  Subpart 8.4 – Federal Supply Schedules  Part 13 – Simplified Acquisitions  Part 14 – Sealed Bidding  Part 15 – Contracting by Negotiation

22 Finding Prime Contract Opportunities  Research Past Purchases ‒ Federal Procurement Data System – Next Generation Register, Read “First Time Using Reports”, Obtain standard, special, or customized award data.  Identify Current Opportunities ‒ Federal Business Opportunities Identify your product and/or service codes & search.  Obtain Agency Forecasts from sites like

23 FedBizOpps Identify Opportunities – Follow the Money

24 FedBizOpps Notices FBO Vendor Notification : FBO Vendor Notification Service: 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.solicitation numberselected organizations and product service classifications; all procurement notices

25 FedBizOpps Sign-up 1. Select Procurement Code, NAICS and/or Buying Activity The following postings have been made on FBO: DLA Logistics Operations Defense Distribution Center 49 -- ICE MACHINE MAINTENANCE AT DEFENSE DISTRIBUTION DEPOT Synopsis 2. Receive daily links to buys

26 Finding Subcontracting Opportunities  Subcontracting Opportunities Directory of Large Prime Contractors sbsd.html sbsd.html  SUB-Net  FedBizOpps/FBO - Find Business Opportunities, Search for: Awards

27 SUB-Net

28 Federal Supply Schedules  Investigate Federal Supply Schedule (FSS) Contracts Select: Acquisition Solutions – Getting Started, How to Sell to the Government; and the appropriate Product or Service Tab on the page to view the Schedules.  Become a GSA schedule contractor Select: For Contractors and Vendors, Getting on GSA Schedule, & GSA Schedule Solicitations; to see the schedule contents, select a product or service code & View Schedule Document.

29 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.

30 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).

31 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

32 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!

33 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

34  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

35 Getting Paid Promptly n Within 30days n The designated agency office actually receives a complete invoice conforming to the terms of the contract. n - purchase order/contract number, a description of the goods and services, a requisition number, and Electronic Funds Transfer (EFT) information

36  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

37 Seek Additional Assistance  Procurement Technical Assistance Center (PTACs)  Small Business Specialists  Procurement Center Representatives (PCRs)  Commercial Marketing Representatives (CMRs)

38 Find online business counseling and training at: E-Business Institute

39 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.

40 Helpful Web Sites  DOD Office of Small Business Programs  Procurement and Technical Assistance Centers Small Business Development Centers

41 More Helpful Web Sites  SBA’s Home Page:  Government Contracting : Site includes links to all major government contracting programs discussed here plus much, much more.  Find a Procurement Center Representative

42 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

43 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

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