Productized Solutions That Drive Cost Efficiencies Government Procurement-Small Business BGOV A wholly owned division of Brill Worldwide Investments, Inc. 482 Norristown Road, Suite 114 Blue Bell, PA 19422 Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI' May 2012 Phone: 484.351.8305 www.brillworldwide.com REALITY- Doing Business with the Federal Government Myths- Legends- Lies of Government Procurement The Government Does Not Pay! Who was Willie Sutton? On Time Payments or Interest- Prompt Payment Act 1982 Amended 1999- 30 Days or Monthly Compounded Interest Federal Spending Debate Dominated by Debt Reduction Politics The Government Does Not Buy What I Sell! The U.S. Government - World's Largest Buyer of Products and Services-Nearly $500 Billion Yearly The Government Buys Just About Every Category of Commodity and Service Available http://www.governmentbids.com/cgi/en/bidding.advice.articles/Article/federal-contract-opportunities-for-your-business Source: Washington Technology, October 2011 Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI' May 2012 REALITY- Doing Business with the Federal Government Myths- Legends- Lies of Government Procurement The Paperwork is Insurmountable Registrations Online with CCR and ORCA Submissions Like Pitching Your Largest Client Without Additional Sales Aids We don’t have the time Additional Income Revenue Stream Partnerships, Mentor Relationships Spread the Workload Federal Government is the Fortune 1 Company PAREDO- Government is or can be your largest customer http://www.governmentbids.com/cgi/en/bidding.advice.articles/Article/federal-contract-opportunities-for-your-business Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 REALITY- Doing Business with the Federal Government Myths- Legends- Lies of Government Procurement How Can I Compete with the Large Prime Contractors Small Business Set Aside- Federal Purchases- Agencies Achieved Procurement Goal of 23% for 2010-2011 Procurement Goal 30% for 2011-2012 Ultimate Procurement Goal of Obama Administration 40% Achieved by Small Business Prime Contract & Mentor/ Protégé Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 REALITY–Tips To Doing Business with our Government Highly Competitive Over Past 3 Years Number of Companies Marketing to Federal Government has almost tripled Small Business Set Asides- Preferences SDVOSB, VOSB (self certify), WOSB Regional Preferences, Hub Zones 8A Native American Shrinking Federal Budget Approximately 20% Reduction- $600Billion S500 Billion Mission Critical Funding Administration Procurement Strategies & Focus Value Added Reseller OUT- Elimination of the Middle Man Distributor/ Owners IN- Must Own Hardware / Proprietary Services Promote REAL Small Business Development Keys to Success Procurement Officer Familiarity Agency Drive Partnering Sub Contracting Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI' May 2012 REALITY–Tips To Doing Business with our Government Additional Keys to Success Track Record Accurate, Comprehensive, On Time Proposal Submission Campaigning Realistic Price Need a Productized Solution Product Equals Commodity Differentiator Integrated Product Solution Addressing Need Pull Sale vs. Push Sale Predominantly Only Mission Critical Processes Being Funded Establish Track Record within Agencies Establish Partnerships- Small Prime Companies rather than Mega Primes Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI' May 2012 System vs. Product Sales SYSTEM PRODUCT PULL SALE PUSH SALE High Margin Commodity Price Sensitive Relationship Sale- Longer Cycle One and Done- Short Cycle Comprehensive Solution Problem Specific Multiple Recurring Revenue Streams Single Revenue Stream Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI' May 2012 REALITY–Tips To Doing Business with our Government Need to Know About Procurement White House Apparatchiks- reside within Agencies to Monitor Small Business Participation Compliance Visit Capital Hill Representatives- Introductions on Specific Opportunities Keep in Mind When You Have Someone Representing You – It Helps to be a Supporter De-emphasis on Lobbyists- ‘LNG’ Strong Ethics Push by Administration De-emphasize Special Interest Groups Procurement Officers (PCO) Over Worked Tremendous Oversight Multiple Contractors Old Computer Technology Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 REALITY–Tips To Doing Business with our Government Additional Things You Need to Know About Procurement Get to the Decision Maker- (It’s not the Procurement Officer) Conferences Face to Face Networking Mentor Company Introduction- Establish track record / past performance Small Business Advocates within Government Agencies- interface Follow-up, Follow-up, Follow- up Learn How to Write a Good Proposal Attend Writing Conferences Hire or Partner Pricing- Margin Compression Was 5% to 8% Profit Plus all Overhead Now 2% to 5% Profit plus Portion of Overhead Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Federal Business Opportunities – http://FedBizOpps.gov Government Repository for Procurement Opportunities- NAICS codes (North American Industrial Classification System) Small Business Administration Based on Revenue or Number of Employees Ex. NAICS 541611- Administrative Management and General Management Consulting Services: $7.0 million (3 year average) Ex. NAICS 517911- Telecommunications Resellers: 1,500 employees (3 year average) Set Aside Requirements Total Small Business Additional Restrictions i.e. SDVOSB, VOSB, WOSB Competitive 8A, Hub Zone Unrestricted- N/A Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Federal Business Opportunities – http://FedBizOpps.gov Contract Awards IDIQ (Indefinite Delivery Indefinite Quantity) Indefinite Quantity During a Fixed Time Frame Base Year Plus Option Years Quickens the Process BPA (Blanket Purchase Agreement) Commodity Purchase Focus- Authorized Supplier General Services Administration Schedule Must be Registered / Approved to be on Schedule Lengthy Application Process- No Guarantee of Purchase Product Sales- Commodity Pricing Lowest Price Technically Acceptable (LPTA) Services / Solution Sales Past Performance Technical Capabilities Price Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Federal Business Opportunities – http://FedBizOpps.gov Federal Acquisition Regulations (FARS) http://www.acquistion.gov/far/ Regulation Guidelines Specified per Solicitation FAR 52.212-3 Offeror Representations and Certifications Affirmation That One is Either Current within CCR/ ORCA or Re-affirming Based Upon the Specific Solicitation Posted Opportunities Sources Sought Determination Whether Small Business or Small Business Class can Perform Market Research Information or Planning Purposes Only Responses are Not Offers and Cannot be Accepted by the Government to Form a Binding Contract- No Obligation Requesting Basic Information- Response to Draft SOW Limits Usually Placed on Response- 1to 2 Pages Unless Specified Short Response Time Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Federal Business Opportunities – http://FedBizOpps.gov Posted Opportunities Pre-Solicitation Notification Document that Solicitation is Forthcoming Precedes Solicitation Normally by Up to One Month General Information- Set Aside and NAICS Code Requirements Lists Contacts (Procurement Officer) & Location Opportunity to Address Questions Provide Overview of Opportunity or Draft SOW Solicitation Actual Opportunity All the Information Supplied in the Pre-solicitation Submission Requirements / Procedures Specified Proposal Due Dates Anywhere from a Few Days to One Month Depending Upon Complexity SSA Solicitation for Enterprise Audi Visual Products and Services- 16 Amendments / After 1 Year- Cancelled Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Federal Business Opportunities – http://FedBizOpps.gov The Real Skinny Unless You’re Bidding Products, If You’re Answering a Solicitation.. It’s Already Been Awarded Be Wary of the Incumbent- You Can Inquire Get in Front of the Procurement Officer but Don’t Stalk Ask Questions Attend Conferences Sources Sought and Pre-solicitation Provide Opportunity to Forward Capability Statement- Best Foot Forward Search Data Base via NAICS, Agency, Set Aside List Yourself as an Interested Vendor Sub-Contracting and Partnering- Sometimes a Piece isn’t so Bad! Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Mining for Opportunity Agency Website- Small Business Focus Areas & Opportunities Agency Small Business Advocacy DHS (Homeland Security) Sponsors Monthly Procurement One on One Procurement Interviews. FIDO- It’s Not the Dog!- Federal Interagency Database Online Advance Acquisition Plan (AAP) Ability to Identify Budgeted Planned Future Opportunities Sorted by NAICS Code Set Aside and Contract Vehicle i.e. IDIQ, BPA Brief Description, Procurement Officer Contact Information Other Agency Procurement Portals Army Single Face to Industry- https://acquistion.army.mil/afsi Navy Electronic Commerce Online- https://www.neco.navy.mil Additional Procurement Portals FedConnect- https://www.fedconnect.net/Fedconnect/ FedBid- http:// www.fedbid.com/ The Federal Budget Administration Goals and Objectives Focus Areas by Agency Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 REALITY–Why Do Business with our Government Contract Award Time Frame- Firm Fixed Price Initial Base Year Multiple Option Years- 4 to 5 Opportunity to extend services additional years after options Additional Recurring Revenue Stream Government -Overhead Absorption / Overhead Eater Small Margin- 2-4% Include all Salaries Include all Overhead Private Sector Business Bottom Line- robust ( Super Profitability) Buy Market Share (Supra Profitability) Pay Bonus’ Capital Improvements Proprietary and Confidential Property of Brill Worldwide Investments, Inc 'BWWI‘ May 2012 Contact Information BWWI, Inc BRILL WORLDWIDE INVESTMENTS, INC Office Court at Walton Point 482 Norristown Road, Suite 114 Blue Bell, PA 19422 484-351-8305 www.brillworldwide.com