It takes tenacity to succeed in government sales or to sell your products or services to “Uncle Sam”. Establishing a small business in the federal marketplace can be frustrating. Yet small business preference programs along with knowledge of how procurements are conducted can cause a small business to grow to over $1 million dollars in revenue in a few short years.
A General Services Administration (GSA) Contract or Multiple Award Schedule is a pre-approved contract to do business with the government. Becoming a GSA Schedule holder deems you worthy of federal business, your prices have been determined to be fair and reasonable, and your competency in your field has been given a stamp of approval. Government buyers know you are not a risky prospect and can make purchases from you directly with you or through GSA Advantage (the government's online shopping mall) or with any government purchase card (GSA contracts permits the use of government credit card purchases). Billions of dollars are spent each fiscal year through GSA contracts by civilian and military agencies. A GSA Schedule contract is attractive to both buyer and seller; it's a win - win situation.
3. SBA Procurement Goals
50 % of prime contracts - small
businesses
12 % of prime & subcontracts – SDB
5 % of prime & subcontracts – WOSB
3 % of prime & subcontracts - HUBZone
3 % of prime & subcontracts - VOSB
3 % of prime & subcontracts – SDVOSB
(Source: FAR 19.702 and Small Bus Admin)
4. Getting Started – Basic Questions
1. Which government agencies buy my
products and services?
2. How do I get in touch with them?
3. How do I market to them?
5. Getting Started – Basic Answers
Answer to Question # 1 –
Information technology, every federal
agency buys it!
Office supplies, hand tools, etc. -
look at websites of your targeted
market, such as DoD, NASA, NAVY, etc.
6. Getting Started – Basic Answers
Answer to Question # 1 continued–
Go to: www.fedbizopps.gov
Forecast of Procurement/Contracting
Opportunities--Related Link: “Federal
Agency Business Forecasts
Subcontracting Directory—-
Related Link: “Sub-Net”
Business Partner Network (BPN)
Federal Procurement Data System (FPDS)
7. Getting Started – Basic Answers
Answer to Question # 2 – Getting in Touch
Check out these websites:
- www.fpdc.gov Identify who buys your product
or service (hint: know your NAICS code-
www.census.gov/epcd/naics02 )
- www.fedbizopps.gov Register with BPN get
notices of govt requirements for your
NAICS code –Related Link: “Vendor
Notification Service”
– www.fedbid.com Register - Compete on-line
for govt requirements in your NAICS code
8. Getting Started – Basic Answers
Answer to Question # 2 – Getting in Touch
MORE WEBSITES: Can be found on
fedbizopps
- www.mbda.gov Register – Phoenix Database to
get free contract referrals.
– www.web.sba.gov/subnet/search
Prime Contractors post subcontracting
opportunities here.
– www.sam.gov Register – You have to be
registered to get paid!
9. Getting Started – Basic Answers
Answer to Question # 3 – How do I Market to them?
Targeted Outreach Activities
Local Conferences/Trade Shows
Participate in those Outreach and Networking
opportunities.
Note: Use your Key Sources of Assistance to
get this info.
10. Getting Started – Basic Answers
Answer to Question # 3 – How do I Market to them?
Remember the Government is decentralized.
– Dept Homeland Security has 22 former agencies that
buy things!!!
– TSA, Customs and Border Protection, Immigration and
Customs Enforcement, FLETC, FEMA, Coast Guard, and
Secret Service
– GSA has 2 Business Lines:
Public Building Service and Federal Acquisition
Service
Learn what each targeted agency bureau does and
how they spend their money! Market Research!!!
11. Marketing Strategy
Other Federal Agency One-One-
One Counseling Sessions
Department of Justice Monthly Counseling Sessions
http://www.usdoj.gov/jmd/osdbu
U.S. Department of Agriculture Vendor Outreach
Program http://www.usda.gov/da/smallbus.html
U.S. Department of Labor
http://www.dol.gov/osbp/regs/procurement.htm
U.S. Department of Health & Human Services
http://www.hhs.gov
Department of Veterans Affairs
http://www.va.gov/osdbu/conference/register.htm
U.S. Department of Housing and Urban Development
http://www.hud.gov/offices/osdbu/index.cfm
13. Business Performance –
Top 8 Federal Agencies for FY 2015
Rank/Agency Dollars
.1. Department of Defense $269,312,039,976
2. Department of Energy $22,803,051,156
3. Department of Health & Human Svcs. $13,580,806,353
4. National Aeronautics and Space $12,811,828,250
5. Department of Veterans Affairs $11,735,408,740
6. Department of Homeland Security $10,703,910,556
7. Department of Justice $ 6,763,711,433
8. General Services Administration $ 4,892,095,303
Source: Federal Procurement Data System FY 2015
14. Selected Socioeconomic
Statistics
Category # of Actions Net Dollars
Small Business Set-Aside 1,040,384 $2,137,967
Small Business Concerns 5,591,403 5,939,576
8(a) Contract Awards 60,746 91,385
Small Disadv Business 16,003 14,551
Small Disadv Bus Concerns 332,907 439,467
HBCU/MI 1,673 4,899
HUBZone Program 5,799 15,767
HUBZone Small Bus Concerns 32,862 65,919
Women-Owned Small Business 525,217 585,513
SDVOSB 27,908 24,294
Veteran Owned Small Business 217,459 178,882
Source: Federal Procurement Data System FY 2014
15. Getting Started -
Key Sources of Assistance
SBA – Locate your Business
Opportunity Specialist (BOS) in
your area: www.sba.gov
Procurement Technical Asst CTRS:
www.sellingtothegovernment.net
GSA – www.gsa.gov
SDBC – www.sbtdc.org
16. Basic Information
There are two types of contracting
opportunities:
Prime Contracting – you hold the
contract.
Subcontracting – a larger company
holds the contract and you get to
work on a piece of it.
17. Basic Information – cont’d
After consideration of required
sources (read FAR Part 8-
www.arnet.gov/far/), the
contracting officer has 2
choices:
1. use a pre-existing contract
(FSS, GWAC, Dept.-wide contract).
2. use open market procedures.
18. Basic Information – cont’d
Key Tip:
If what you provide is listed on a
Multiple Award Schedule, then get on the
schedule! Why? Because it is faster!!!
Research, find out what pre-existing
vehicles are used by the agencies you
have targeted.
19. Basic Information – con’d
Subscribe to trade magazines and
professional journals:
-- www.fedtimes.com (Fed Times
Newspaper)
-- www.govexec.com (Government
Executive Magazine)
-- www.govpro.com (Government
Procurement Magazine)
20. Basic Information – cont’d
$ Amounts you should know & methods of Procurement:
Up to $3,000 – Micro-purchase (credit card)
$3000-$100,000 – Simplified Acquisition Procedures
(SAP)
Over $100,000 – Formal Contracting Procedures
Note: under commercial items test – $5,000,000 can be
considered SAP
21. Small Business Procurement
Programs
8(a) Program set-aside
HUBZone Program set-aside
Traditional Small Business set-aside
Mentor-Protégé Programs
Full & Open competition tools
– SDB evaluation factor-prime proposes SDB targets
– Subcontracting
– HUBZone Price Evaluation Preference (10%)
– SDB Price Evaluation Adjustment (10%)
23. The “Model” Small Business Firm
Working in the Federal Marketplace
Understands:
Core Competencies
Marketing and Relationship building
Schedules/Multiple Award Contracts
Open Market Procurement (FEDBIZOPPS)
Prime Contracting
Subcontracting
24. The “Model” Small Business Firm
Equipped to do Business with the
Government:
Accept the Govt Purchase Card
Has Good Marketing Materials
Has a Niche (What’s Yours?)
Has Resources (People, Equipment)
Is Web/Internet Savvy (important)
Is registered in Govt pre-existing
databases (SAM)
25. In Summary
What Really Works...
Relationships
Networking
Multiple
Contracting
Vehicles
Continuous
Marketing
Being Prepared
Get Involved
Past Performance
Share Information
Patience
Persistence
Home work always comes before success in the
dictionary & Small Business Procurement!
26. Taken from the book ”You Can Sell to
Uncle Sam: Getting Government
Contracts” ISBN: 978-1-4917-5135-0
The federal government spends billions annually on products & services ranging from paperclips to complex space vehicles
As a whole, the federal government is made up of agencies. Each agency is broken down into various components, either bureaus, field units or districts. These entities, in most cases are decentralized in their buying activities, each having its own mission, budget, contracting shop, and small business specialist.
The federal government spends billions annually on products & services ranging from paperclips to complex space vehicles
As a whole, the federal government is made up of agencies. Each agency is broken down into various components, either bureaus, field units or districts. These entities, in most cases are decentralized in their buying activities, each having its own mission, budget, contracting shop, and small business specialist.