Government Contracting Overview
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2 The Small Business and Technology Development Center s (SBTDC) Procurement Technical Assistance Center (PTAC) Government Contracting Overview Katie Harshberger kharshberger@sbtdc.org 2
3 AGENDA Reminder to turn cell phones to vibrate Feel free to ask questions SBTDC and PTAC Services State of NC and Local Agencies Federal Agencies Bidding Basics Contacts and Marketing 3
4 Small Business & Technology Development Center (SBTDC) Confidential one-on-one counseling General Business - planning, marketing, financing, human resources & operations Management Education Services Export Financing Assistance Technology Development and Commercialization Boating Industry Services Government Procurement Assistance Procurement Technical Assistance Center (PTAC) 4
5 5
6 PTAC assists you in... Understanding government rules and regulations Completing mandatory registrations and certifications Researching award histories Identifying contracting opportunities Reviewing bids and proposals GSA/VA Contracts and schedules Selling to the federal, state and local government 6
7 7
8 Before Selling to Government Computer Internet Access & Knowledge Product/Service to Sell to the Government Determination to Sell to the Government Competition Who and how do they succeed? Perseverance May take months to win 1 st contract Contact a PTAC Counselor Use all the resources available 8
9 Is the Government Market for Me? 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 not do for your business Jump-start your business Save your business Be the sole source of your business 9
10 Acronyms NAICS North American Industry Classification System SIC Standard Industrial Classification NIGP National Institute of Government Purchasing FSC Federal Supply Classification PSC Product Service Code TIN Tax Identification Number DUNS Data Universal Numbering System CCR Central Contractor Registration ORCA Online Representations & Certifications Application 10
11 Potential State Customers State Agencies Universities Community Colleges Public Schools Institutions Local Governments NOTE: State of North Carolina Purchasing spends about $4 Billion a Year 11
12 Start in your own backyard Start Locally City, County, Schools, etc. Most NC cities, counties and school systems have websites Cities and counties websites: Usually paper registration, not on-line Most M/WBE programs now part of Statewide Uniform Certification (SWUC) Some utilize State of NC IPS 12
13 Registration State of NC P&C website: Identify your NIGP/Commodity Codes: Register in E-Procurement: Register in Vendor Link: Historically Underutilized Business (if applicable): 13
14 HUB Program State of NC Minority/women/disabled Statewide Uniform Certification (SWUC) 10% participation goal Register online at Vendor Link/E-Procurement HUB office is advocate Sponsors seminars and workshops Maintains a database of HUB vendors for use by state purchasers, general contractors and others Telephone: (919)
15 Bidding (State of NC Basics) RFP (Request for Proposals) Solicit competition for contractual and consultant services Contents should include: brief introduction, background of the project, detailed scope of work, proposal requirements, criteria for evaluating offers An RFP or IFB must be used for soliciting competition on contracts valued over $25K 15
16 Bidding (State of NC Basics) IPS Must be used to advertise formal solicitations over $10,000 (universities: $25K) May also be used for informal solicitations equote May be used for informal requests for quotes up to $10,000 (universities: $25K) Local Governments may use equote up to $90K 16
17 Bidding (State of NC Basics) Term Contracts Commodities, printing or contractual services Used by all agencies Multi-year contracts Minimum/Maximum ordering quantities Also known as Requirements or Indefinite Delivery contracts Approximately 65 in place Agency Specific Term Contracts For commodities, printing and services not covered by Term Contracts 17
18 Potential Federal Customers Military Bases General Services Administration (GSA) Veterans Administration (VA) Defense Logistics Agency (DLA) Department of Homeland Security (DHS) United States Department of Agriculture (USDA) 18
19 Registration (Codes) Identify your NAICS and SIC codes: Identify your FSC and/or PSC codes: Size Determination: - Small vs. Large - (13 CFR ) - serv_sstd_tablepdf.pdf 19
20 Registration Obtain Tax ID Number (TIN): Even if Sole Proprietor Obtain DUNS : Required for Central Contractor Registration (CCR) Free for Government Vendors Preference programs 20
21 Federal Government Goals 23 percent of prime contracts for small businesses; 5 percent of prime and subcontracts for small disadvantaged businesses; 5 percent of prime and subcontracts for women-owned small businesses; 3 percent of prime contracts for HUBZone small businesses; 3 percent of prime and subcontracts for service-disabled veteran-owned small businesses. 21
22 Federal Preference Programs 8(a) Business Development Program - Small Disadvantaged Business (SDB) Program - Historically Underutilized Business (HUBZone) - Women Owned Business Program - Veterans Business Program
23 Registration Federal Register in Central Contractor Registration (CCR): Register in FedBizOpps: Register in ORCA: Register in WAWF: mmerce/wideareaworkflow.html 23
24 Bidding (Federal Basics) 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 24
25 Bidding (Federal Basics) Simplified Acquisitions 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) 25
26 Bidding (Federal Basics) 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 creativity, different ideas or new ways of accomplishing a task/advertisement is required Negotiations are permitted 26
27 Contacts Who do you know? Large Business Contacts Small Business Liaisons Small Business Specialist (SBS) Acts as liaison between you and buyers Agency Purchasing Officers/Buyers Contracting Officers (CO) Only person that can obligate the government End Users Person that knows requirement best 27
28 Marketing Identify and target key agencies Complete required registrations Prepare promotional material Mention preference programs Visit agency SB specialists/equivalents Contact via /phone/in person Attend trade shows/conferences 28
29 Marketing State Government Complete Registrations E-Procurement Vendor Link E-Quote if applicable and accept credit cards Market to agencies Agency Purchasing Officers Have capability brief on what your company does Keep it short 29
30 Marketing Federal Government Complete registrations Central Contractor Registration (CCR) SBA Firm Profile Online Representations and Certifications Application(ORCA) Know the agencies mission Review their web site Have capability brief on what your company does Keep it short Contact Small Business Specialist first 30
31 Marketing to Prime Contractors Small Business Liaison within each Network, Network, Network People buy from people they like/trust If you never play the lottery, you ll never win be aggressive with proposals What can you offer? Articulate your capabilities in a short period of time Make great first impression 31
32 Opportunities PROBID Electronic bid matching system (Fees apply) Searches almost 400 sites (federal, state, local, foreign) When you find opportunities Read entire synopsis (and other documents) carefully Combined synopsis/solicitation Obtain complete copy of solicitation Follow directions of documents To bid or not to bid? Call PTAC! 32
33 NC PTAC Counselors Clark Fields Asheville or Archie Black Charlotte or George Griffin Greensboro or Rebecca Barbour Raleigh ext 611 or Leslie Lynne Crawley Fayetteville or Vacant Wilmington Katie Harshberger Greenville or 33
34 Thank you Any questions? 34
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