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Introduction toIntroduction to
Government ContractingGovernment Contracting
SADBOC Procurement Fair 4/30/14SADBOC Procurement Fair 4/30/14
Earle Brown Heritage Center, Brooklyn Center, MNEarle Brown Heritage Center, Brooklyn Center, MN
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John Kilian
PTAC Area Manager
jkilian@mnptac.org
612-259-6586

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Workshop Objectives
• Overview of PTAC.
• Explain Government “Marketplace”.
• Review the basic procurement process,
registrations/certifications related to doing
business with the Government.
• Provide Key items to ensure success in the
Federal, State and/or Local marketplace.
• Next Steps – You can begin Today!
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About PTAC
Procurement Technical Assistance Center (PTAC)
• Nationwide federally funded program by the Defense Logistics
Agency (DLA). Our focus is assisting Minnesota businesses to:
 Understand the government procurement process, practices and
methods.
 Improve competitiveness and business development
capabilities through strategic marketing, research and contacts.
 Identify, secure, maintain and ultimately help grow current
government contracts and future awards.
• PTAC extends its services and support to all MN based business.
• One-Time Fee ($250) to become lifetime PTAC client.
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MN’s Statewide Presence
NORTHERN
NORTHERN
CENTRAL
TWIN CITIES
METRO
SOUTHEASTERN
SOUTHWESTERN
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Services:
• Market Opportunity Assessment
• Registration / Certification Assistance
• Prime and Subcontracts
• Bid/Proposal Guidance
• Training
• Research Procurement Histories
• Electronic Bid Match Service
About PTAC
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Bid Match Service:
• Automatic electronic searching of 1500+ federal,
state, and local govt. websites.
• Website surfing “not required”.
• Requires identification of key words/phrases,
product/service info, NAICS codes, FSC/PSC codes.
• Search criteria can be “filtered” geographically by
area, region, states, agencies etc.
• Web-based or E-mail delivery.
About PTAC
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About PTAC
www.ptac‐meda.net

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Training Seminars:
• Introduction to Government Contracting
• SAM Registration
• Capability Statements and More
• Selling to the Government –“Advanced Successful Strategies”
• Responding to Solicitations
• GSA Schedules – “A Business Perspective”
• Selling to State of Minnesota
• Doing Business with the US Army Corps of Engineers
• Military Packaging
• Advanced Contractor Series: A Legal Perspective
About PTAC
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2013 Results:
• Since 1991, PTAC has assisted thousands of Minnesota
companies in securing and/or maintaining government contracts!
• PTAC Fiscal Year 2013:
 Worked with 1,101 clients throughout Minnesota
Sponsored 56 workshops with 2,344 attendees
Consulted with 413 new business owners with 2,933
follow-up meetings
Attracted 900+ attendees to the 14th Annual Procurement
Fair & 150 to Greater MN Procurement Fair.
Assisted in securing 3,069 contracts totaling $472.2million
151 individual companies received awards!
About PTAC
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• The Federal Govt. purchases close to $500B of goods
and services annually.
• Market includes the federal, state and local agencies
(cities, counties, school districts, libraries, etc.)
• Extensive procurement regulations to comply with
and lengthy sales “cycle”.
• Small Business subcontracting opportunities available.
• Set-Aside, Disadvantage Preference programs.
Government Market Place
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$460+ Billion Total Contract Awards – 2013*
• $308B = Department of Defense
• $ 24B = Department of Energy
• $ 20B = Department Health & Human Services
• $ 18B = Department of Veterans Affairs
• $ 14B = NASA
• $ 12B = Department of Homeland Security
• $ 9B = GSA
• $ 7B = Department of State
• $ 7B = Department of Treasury
• $ 7B = Department of Justice
• $ 6B = Department of Transportation
• $ 5B = Department of Agriculture
• $ 5B = Agency for International Development
• $ 4B = Department of Interior
• $ 3B = Department of Education
Minnesota’s
Share = $3.0B
*As reported in
USAspending.gov
Government Market Place
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“What” does the government buy…….everything!
• Products:
Computer hardware/software, medical/dental supplies, office
supplies/furniture, foods, machined parts, oil, aviation
equipment, clothing, war fighter supplies, etc.
• Services:
Consulting, staffing, training, engineering, architecture,
construction related, web development, medical coding
meeting, planning, debt collection, social media, hazardous
cleaning, janitorial, security services, etc.
• Innovative Solutions:
New technology, “green” solutions, software development,
unique devices, new processes, etc.
Government Market Place
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“How” does the Federal government Buy?
- Agency Inventories
- Excess from other Agencies
- Federal Prison Industries
- Ability One (Blind/Severely Handicapped)
- GSA/DLA Stock Inventory
- GSA Schedules
- Open Competition (“Solicitations”)
Government Market Place
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SOLICITATIONS:
“Mandated method, requiring a publically posted
announcement of the government’s intent to
purchase from the business community.”
FEDERAL: FedBizOpps
The single government point-of-entry for federal
government procurement opportunities over $25,000.
www.fbo.gov
Government Market Place
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Government Market Place
www.mnptac.org
http://www.fbo.gov

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Military Solicitation sources:
• Department of Defense (DoD) – www.defense.gov/
Army, Marine Corps, Navy, Air Force, National Guard, Coast
Guard, Base Exchange, Commissary
• Defense Logistics Agency (DLA) – www.dla.mil/
• DoD Small Business Assistance - www.acq.osd.mil/osbp/
Government Market Place
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Defense Logistic Agency (DLA):
• DLA Philadelphia (formerly DSCP):
http://www.troopsupport.dla.mil/
- Troop Support – i.e.) Clothing and Textiles, Construction,
Weapon System Equipment, Spare Parts, Medical and
Subsistence
• DLA Richmond (formerly DSCR): http://www.aviation.dla.mil/
- Aviation and all things related
• DLA Columbus (formerly DSCC/DESC):
http://www.landandmaritime.dla.mil/
-Land & Maritime and Energy – i.e.) Vehicular spare parts,
electronics, piece parts, energy products, petroleum, etc.
Government Market Place
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Government Market Place
www.ptac‐meda.net
https://www.dibbs.bsm.dla.mil/default.aspxhttps://www.dibbs.bsm.dla.mil/default.aspx

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Commercial (COTS) Products/Services:
General Services Administration (GSA):
GSA supports all Federal agencies, to obtain the products,
services, consulting, space, real estate, and vehicles they
need from federal and/or commercial sources.
GSA Service Organizations:
 Federal Acquisition Service (FAS):
Multiple Awards Schedules (MAS) / Federal Supply Schedules (FSS)
 Public Building Service (PBS):
Real Estate, Facilities, Design (A/E) & Construction
Government Market Place
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GSA – Federal Supply Schedules:
• GSA Schedules – Potential 20 year contract
 Contract pre-negotiates pricing, terms and conditions.
 Contract is “empty” IDIQ – Indefinite Delivery Indefinite Quantity
 GSA negotiates and administers contract.
• Any federal agency can place orders against the GSA contract.
• Must consider at least three schedules before placing orders.
• Contractor collects/pays GSA a quarterly Industrial Funding Fee (IFF)
• $46B+ spent on Schedules in 2013 --- Over 23,000 Vendors! (Incl. VA)
• Vendor MUST market contract…no guarantee of orders!
http://www.gsa.gov/portal/category/100611
Government Market Place
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Doing Business with
the Government
www.ptac‐meda.net
http://www.gsaelibrary.gsa.gov/ElibMain/home.do

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State & Local Solicitation resources:
• State of MN –
http://www.mmd.admin.state.mn.us/solicitations.htm
• U of M – http://purchasing.umn.edu/
• City of Minneapolis –
http://www.ci.minneapolis.mn.us/business/business_doing_busi
ness_with_city
• City of St. Paul & Ramsey County –
http://www.stpaul.gov/index.aspx?NID=221
• Hennepin County – http://hennepin.us/ click on “Business”
• State and Local Government on the Net -
http://www.statelocalgov.net/index.cfm
Government Market Place
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Government Market Place
www.mnptac.org
http://www.mmd.admin.state.mn.us/solicitations.htm

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Government Market Place
http://www.statelocalgov.net/index.cfm

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What are the “Rules” with the Govt?
• Federal government - Federal Acquisition Regulations (FAR)
www.acquisition.gov/Far/
• State government – 50 different rule books!
www.statelocalgov.net
What are the Contracting Methods?
• Micro-purchases
• Simplified Procedures
• Sealed Bidding
• Contract Negotiations
• Consolidated/Co-operative Purchasing Programs
Government Market Place
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Federal Government “Markets”.
Open Market
• Solicitations
• Electronic Malls
Hidden Market
• Purchase or Smart Cards
• Small/Micro Purchases
• GSA Schedules
• Sole Source/Follow-on awards
• Prime Contractor/Teaming
• Cooperative Purchasing
• Federal Strategic Source Initiative
(FSSI)
• Government Wide Area Contract
(GWAC)
Government Market Place
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Government Sales history/forecasts?
• Federal Procurement Data Systems (FPDS)
https://www.fpds.gov
• USA Spending
www.usaspending.gov
• Federal Agency Forecasts
https://www.acquisition.gov/comp/procurement_forecasts/index.html
• Office of Small and Disadvantaged Business Utilization (OSDBU)
http://www.osdbu.gov/members.html
• General Services Administration (GSA)
https://ssq.gsa.gov “GSA Advantage & SSQ Reports”
Government Market Place
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Government Market Place
www.mnptac.org
https://www.fpds.gov

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http://usaspending.gov

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Doing Business with the Govt!
1st Question ---- Am I “Large” or “Small” business?
• SBA sets the size standards, and matches them to each of
the NAICS codes!
• Small Business Size Standards:
http://www.sba.gov/content/table-small-business-size-standards
• NAICS Codes: http://www.census.gov/eos/www/naics
 Searchable by Keyword, and may have more than one!
 Many Bid opportunities are posted based on NAICS code!
• “Rule of Thumb”:
• Manufacturing –1 year average number of employees (usually < 500)
• Services – 3 year average revenues, but differs by industry (varies
from $7M - $100M)
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Large or Small business…what’s the big deal?
• Set-Asides --- restricts competitors!
• Agencies and Primes must subcontract!
Current Subcontracting Goals:
Goal* Actual**
• Small Business 23% 22.2%
• Small Disadvantage (incl. 8(a)) 5% 8.0%
• Women-Owned 5% 4.0%
• Veteran / Service Disabled-Owned Vet 3% 3.0%
• HUBZone 3% 2.0%
* Statutory Goals – Actual goals vary by agency/prime
** Source data – SBA Goaling Report 2012
Doing Business with the Govt!_________________________

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Large Business Subcontracting Plans:
•Large business receiving contracts over $650K, ($1.5M for
construction) must submit a subcontracting plan – subject
to annual approval by the C.O.
•The plan requires specific goals for each of the small
business categories.
•Contractor must designate a Small Business Liaison
Officer (SBLO).
•Listing of SBLO’s, by Contractor, by State at:
http://www.sba.gov/category/navigation-
structure/contracting/contracting-opportunities/sub-
contracting/subcontracting-opportunities-directory
Doing Business with the Govt!_________________________

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How can I become a government contractor?
Register your business! (Federal)
1. DUNS - http://fedgov.dnb.com/webform or 1-866-705-5711
2. NAICS - http://www.census.gov/eos/naics/
3. DSBS - http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
4. SAM - http://www.sam.gov (Mandatory with Federal.)
Doing Business with the Govt!_________________________

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Doing Business with
the Government
http://www.census.gov/eos/www/naics/

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Doing Business with
the Government
www.ptac‐meda.net
http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

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Doing Business with
the Government
http://www.sam.gov

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REGISTRATION - Small Business – (Federal):
• Small Business: (Self Certify)
• Small Disadvantaged Business: (Self Certify)
• Woman-Owned Small Business & EDWOSB:
(Self Certify and SBA Application)
• Veteran-Owned Small Business: (Self Certify/VA verified)
• Service Disabled Veteran-Owned Small Business:
(Self Certify / VA verified)
• 8(a): (SBA Certified)
• HUB-Zone Small Business: (SBA Certified)
Doing Business with the Govt!_________________________

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REGISTATION - Small Business – (States):
Minnesota Programs: (varies be state!):
• Women’s Business Enterprise National Council (WBENC)
• Disadvantaged Business Enterprise (DBE)
• Targeted Group / Economically Disadvantaged (TG/ED)
• Central Certification (CERT)
• Midwest Minority Supplier Development Council (MMSDC)
Doing Business with the Govt!_________________________

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REGISTRATION – Veterans (Fed & State):
- Service-Disabled Veteran-Owned Small Businesses (SDVOB)
- Veteran-Owned Small Businesses (VOSB)
• CVE – Center for Veteran’s Enterprise -
http://www.va.gov/osdbu/vip/step1.asp
• VETERAN’S FIRST PROGRAM:
 Public Law 109-461 is a unique procurement program
supporting veterans in business. This procurement program
only applies to the Department of Veterans Affairs prime and
subcontracting opportunities. They must first try to find
SDVOSBs and then VOSBs. Other small business categories
follow.
Doing Business with the Govt!_________________________

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Doing Business with
the Government
http://www.va.gov/osdbu/vip/step1.asp

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Keys to Success!
Know and understand your Customer!
• What do they buy?
• When do they buy it?
• How & Why do they buy it?
• Do they have funding today or next year?
• Learn their preferred contracting methods?
• How/When/Where to register?
• Leverage Small Business preferences
• It is a Business Development Challenge NOT a Sales initiative!
• Know your Competition -- Understand Teaming, Subcontracting!
• It can, and will, take time to work the “system”!
• Research, Research and more Research!
Doing Business with the Govt!_________________________

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Good News… We WON a Govt. contract!!
Bad News… We WON a Govt. contract!!
Requires Contractor to ensure:
• On-going Contract Administration
• Compliance with Contract Terms and Conditions
• Reporting Contract Sales
• Monitoring Subcontract/Prime Policies and Procedures
• Timely Deliveries
• Invoicing, Bidding, Modifications
• Audits, Close-outs
Doing Business with the Govt!_________________________

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http://www.mnptac.org
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Please visit the PTAC booth if you
have questions or need more info!
Thank You!____________