Government Contracting 101

Do you have a product or service to sell? Have you thought about the government as a customer for your business? If you have, and if you've found the process to be a little overwhelming we're here to say that "Help is on the way."

The Defense Logistics Agency, otherwise known as DLA on behalf of the Secretary of Defense, administers the DoD Procurement Technical Assistance Program (PTAP). PTA Centers are a local resource available that can provide assistance to business firms in marketing products and services to the Federal, state and local governments at little or no cost. (From www.dla.mil )

There is at least one PTAC (Procurement Technical Assistance Center) in each state and most have more than one location to serve the business community. When considering whether or not government contracting is for you, the business owner, a few important factors need to be considered. You must be patient, persistent, have a solid work ethic and possess the perseverance necessary to learn the processes and procedures needed in order for you to be successful.

Additionally, are you an avid reader? Government solicitations can be lengthy and difficult in scope. If you're up to the challenge and want to know how PTAC can assist you then please read on.

Let's talk about the advantages of the conducting business with various types of agencies. These are three major categories. First, of course, there is Uncle Sam, the federal government. Within the federal government category, one advantage is that there are more than 2500 buying offices throughout the United States. Every kind of product and service is purchased. Full and open competition is encouraged and payment is made expeditiously via electronic funds transfer. Some of the top agencies buying the most goods and services are (2003 data- reference www.fpdc.gov ) follows:

Department of Defense
Department of Veterans Affairs
Department of Justice
Department of Health and Human Services
Social Security Administration
General Services Administration
Department of Agriculture
Department of State
Department of the Interior
Department of the Treasury

Conducting business with Federal agencies are advantageous as regulations protect the contracting process and the government has "preference programs" to encourage small business participation.

In determining how your business can find its place in the government contracting world, you should consider what agencies buy what you sell, define the purchasing processes of the agency, determine who the decision makers are and most importantly what value your business brings to the table. Why would the agency wish to conduct business with you? You need in many cases to take on the role of the purchasing agent or contracting officer responsible for the procurement. By understanding what their needs are you can better assess how you may assist them.

Other considerations include whether or not you want to bid on a solicitation directly from the government as a prime contractor or as subcontractor who would work for the prime? Do you wish to be part of a teaming alliance or joint venture where more than one company bids on a particular job?

Once a needs assessment is completed and you have identified which government agency(ies) you wish to conduct business with, an understanding of the procurement process steps is next. The government agency establishes the requirement. The government, by law, does not purchase products or services until a bona fide need is identified. Each agency determines its own requirements for the items it will purchase.

The solicitation is then prepared. At this point it is determined whether the solicitation will be a set aside, a sole source or competitive. The solicitation is any request to submit offers or quotations to the government for the purpose of acquiring goods and services.

The description within the solicitation includes what it wishes to purchase, any terms and conditions (these must be read and understood!), the required delivery schedule and any supporting documentation. For solicitations of more than $25,000, public posting is maintained at the Federal Business Opportunity website that can be viewed by going to www.fedbizopps.gov . Potential suppliers monitor these solicitations and subsequently bid. You should ensure that any amendments or addendums (changes to the original bid) are included and that the business is on the electronic distribution list for the solicitation to ensure bid integrity.

You should take the appropriate time to evaluate whether or not a particular bid should be responded to based upon several considerations. These include, but are not limited to:

• What are the manpower resources?

• What is the risk assessment to the company?
- Have you conducted a SWOT (strengths, weaknesses, opportunities, threats) analysis?

• What are the liability issues?

• Will this opportunity lead to others?

• Does the bid fit into the company's vision?

• How do the products/service compare to that of the competition?

• Are you committed to invest and apply all the resources necessary to effectively market to the government?

• Do you have the necessary technology as required for success?

• Do you have an understanding of the many acronyms that the government uses in their documents?

• Have you considered other work in process?

• Have you conducted the appropriate strategic planning with member of your business?

• Have you considered your ability to secure bid bonds or performance bonds if required based upon contract edict?

• Do you understand the applicable laws and regulations?

It is important to note that the business owner should not overpromise by quoting too many solicitations at once. You must be able to deliver what you promise, when you promise and at the price agreed to between you and the agencies after the negotiation process has ensued. The government is not different from other commercial customers in this regard. They expect that you will deliver at the agreed to terms and conditions without failure or default. In a company's zeal to conduct business with the government sometimes attention is not paid when quoting too many opportunities at once. If you should win all the opportunities, would you have the human and dollar capital to perform the work or deliver the goods on time? This is critical to your success. Be aware that it is possible to win more than one opportunity at a time. "Don't bite off more than you can chew."

Thought should also be given such that if you elect not to submit a bid that a no bid response be sent back to the agency. This shows them that you are still interested in doing business, are still in business but have said "no thank you" to this particular one. This is the responsible thing to do.

As far as bids are concerned, these are reviewed by the agency based upon specific criteria and guidelines. If specifications are not met, the bid is disqualified. This occurs after the bids have been publicly opened and recorded. If your bid is received after the due date and time specified in the solicitation, it will not be considered. Late is late.

When writing proposals consider the following:

• Provide just what the agency is asking for and nothing more
- Ensure all attachments and special clauses are addressed

• Flowery language doesn't earn you extra points

• Know the evaluation weighting scale that the agency is using

• Ask for help from PTAC as well as the contracting officers

• Be clear and concise

• Engage others in your business to do various sections of the proposal

• Read and follow the instructions provided to you in the solicitation

• Have full understanding of:
- Special specifications including packaging and technical specifications within the solicitation
- How the solicitation is to be sent back

• Number of copies

• Format etc

• Ensure that it is signed and dated

• Check your math!

Working with Federal agencies often leads to other business opportunities with different agencies such as states, cities and counties. Each agency, whether it is federal, state or municipal, requires that you register to conduct business with them so that you can register what you do, where you are etc. If you are not registered;(usually done via the Internet) they cannot locate you. For the federal government registration you must go to www.ccr.gov

When marketing to the government consider this:

• Attend trade fairs and expos to seek out many buyers at once is helpful

• Your identification codes for your business is your identity with the government and knowing these codes is a must (PTAC can help you find these codes) There are many to choose from. Codes are different for federal, state and municipal governments.

• If you are a certified small, disadvantaged, woman-owned ,veteran/service disabled veteran owned business, the government needs to know that!
- Document letterhead and business cards with all designators
- Prepare a capability statement for the agencies ( PTAC can help you with this as well)

It's true that if you've never done business with the government, it can be a challenge. There are forms and paperwork and contracting terminology that you may be unfamiliar with. The good news is that your business doesn't need to do this alone.

PTAC offices are here to support, counsel and train you in registering your business, finding opportunities, finding procurement offices and contacts, assisting with bid preparation, registration with agencies, defining subcontracting opportunities, conducting research, assisting in contract administration, pre-award surveys and the minority, woman-owned and disadvantaged certification process.

Seek out the PTAC organization in your state. Go to www.sellingtothegovernment.net and click on your state for the PTAC nearest you.(In Florida, for example, the website is www.fptac.org ) You do not have to go through the contracting process alone. Build, grow and sustain your business in government contracting with PTAC help. The Procurement Specialists are here for you.

Remember, "you don't just luck into things you build step by step, whether it's business relationships, friendships, or business opportunities." Barbara Bush

Best wishes on your journey on the road to procurement success and call your PTAC!

SBDC @ Palm Beach State
3000 Saint Lucie Ave. Ste AD408
Boca Raton, Fl 33431
t 561.862.4726 | f 561.862.4727

© 2009 Small Business Development Center at Palm Beach Community College
t 561.862.4726 f 561.862.4727 | sbdc@palmbeachstate.edu