Closing the Gap by Teaming:
Preparing Small Business Owners to
Contract with the Federal Government
Presented by
Tony Price
14 August 2013
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•Every contract award is like winning
the Super Bowl
•Every new request for proposal is a
new Super Bowl
•You will not win every Super Bowl
but it sure is nice being in the game
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Overview of
Federal Government Contracting
 USA – LARGEST Procurer of Supplies and Services Worldwide
 Around 2,000 buying agencies in the Federal Government
 USA – Spends $570+ Billion of Annual Budget on Goods and
Services
 DoD spends $361.3B or about 65% of that
 USA – Statutory Minimum 23% of Annual Spending to ALL
SBs via 15 USC 644(g)
 If Small Businesses want to be “in the game”, they must know how
to “play the game” – to successfully “COMPETE and WIN”!
You cannot win without a strong and well-rounded team.
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The Federal Procurement “GAME”
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The GAME
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The PROCESS
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Procurement of All Supplies
and Services for the United
States Federal Market
Federal Acquisition SYSTEM
o
o
o
o
The RULES
•
The PLAYERS
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The STRATEGY
•
3 Branches of Government
Checks / Balances
Taxpayer Funds
Annual Appropriations
Federal Acquisition Regulations
(FAR) and its Supplements
o Acquisition Central
www.arnet.gov
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Buyers: Contracting Officers
Sellers: Prime Contractors,
Subcontractors, Vendors
Developing a Competitive
Winning Proposal Document
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Government and Commercial
Procurement
• Four main differences between Government and commercial
procurement:
o Government-unique audit and accounting requirements
o Government-unique specifications and standards
o Technical data rights
o Government-unique contract requirements
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Government and Commercial
Contracting
Government
Commercial
Orientation of Procurement
Performance and
Social/Economic
Best value/low cost
Procurement Structure
Formal defined by FAR
Less formal
Role of Congress/ Judicial
Branches
Provides direct input and
guidance
Uniform Commercial Code
(UCC)
Commitment Authority
Actual
Implied
Acceptance
Final and Conclusive
Flexible
Termination Clause
No anticipatory profit/fee
Usually contains anticipatory
profit/fee
Suspension of Work
Cost recovery, no profit/fee
Profit/fee not prohibited negotiable
Contract Litigation
Federal law prevails
State law prevails
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Tips On Doing Business with Federal
Agencies “ or with anybody else for that
matter”
Tip #1 - Do your homework…Surf the web.
Tip #2 - Demonstrate responsiveness
Tip #3 - Understand the opportunities
Tip #4 - Let the client talk. Listen carefully to what they
have to say.
Tip #5 - Market project managers, they know the clients
and they are the folks bringing in the money
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Tips Continued
Tip #6 - Execute and execute well
Tip #7 - Bad performance is a death sentence to a small
business
Tip #8 - Small businesses are important but not at the
expense of quality
Tip #9 - Find your own work
Tip #10 - Demonstrate that you know what you are doing
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So where do you start?
• Know yourself: Understand your capabilities (superior
product, competitive pricing, outstanding customer
service), Be realistic
• Determine your market (geographic, etc.)
• Know your customer: Do some homework (see next
slide)
o
o
o
o
o
Federal Procurement Process
Websites
Small Business Administration
Other advocacy agencies (SBDCs/PTACs)
YOUR SMALL BUSINESS SPECIALIST
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So what can you do?
•Visit potential clients
• Get to know your clients’ business
• Ask what “keeps them up at night”
• Study the money
• Don’t forget your subcontractors
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What are “they” looking for in
a contractor?
•Highly qualified and capable firm
•Address all criteria
•Fully articulate your approach
•Relevant experience is key
•Fully address any weaknesses
•Past performance will be important
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What do Primes look for?
• High quality past
performance
• Financial stability
• Excellent reputation
• Reasonable costs
• Good safety record
• Reliability
• Customer focus
• Responsiveness
• Relevant experience
• Quality management
and people
• Able and willing to take
on new work
• Willingness to strive for
a win/win situation
• Ability to work as a
team
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Capability presentations
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Arrange thru your small business specialist
Sell your capabilities
Product demos
Reference material (brochures, pamphlets, line
cards)
• Get a debrief/feedback
• Follow-up
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Marketing
• Same techniques apply when marketing to
large, prime contractors
• If practicable get general information on an
activity before you visit
o Who should you talk to or meet with?
o Respect “Chain of Command”or protocol
o Prepare – review web-sites, etc.
• Consider what can your business can do for
them?
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Marketing
• Networking
o Chambers, small business groups, professional
societies (SAME) and organizations
o Attend seminars or hold your own (be a speaker at
industry functions)
o Networking with competitors
o News releases
• Your website
• Always carry business cards
• Referrals
o Ask current clients to refer you to others
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Marketing
• It’s not only who you know that counts, it’s who
your clients know that is important, too.
• Relationships can be more important than the
product or service sold (especially in a competitive
market).
• Learn to accept rejection gracefully .
• Do you believe in your product and company?
• Would you do business with yourself?
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Outreach conferences
•Who sponsors Outreach Conferences?
o Members of Congress
o Various Government Agencies
o Chambers of Commerce
•Vendor Days (local emphasis)
o Government Credit Card
o Information Technology, Furniture, etc
o High Tech or Environmental
•Focused Events- Specific Audiences targeted
o Specific Acquisition (Pre-solicitation)
o Specific small business group (WOSB, 8(a), Vet)
Subcontracting
• The Small Business Act requires that small business
firms have maximum opportunity to participate as
subcontractors on Federal contracts
o Small Business
o Small Disadvantaged Business/8(a)
Historically Black Colleges and Universities (HBCU/MI)
- applies to DoD
o Women-Owned Small Business
o HUBZone Small Business
o Service Disabled Veteran-Owned Small Business
o Veteran-Owned Small Business
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Proposal Case Study - Assumptions
• Customer
• Solicitation Type
• Procurement
• Offeror (or Bidder)
• Proposal Due Date
Now how do I get started …?
• U.S. Federal Government
Department or Agency
• Request for Proposal
(RFP)(FAR Part 15)
•
Complex Services or Manufactured
Products Based Upon Specs/Dwgs,
or Performance Description > $1M
• Service Disabled Veteran
Owned (SDVO)
o Prime Contractor
o Dedicated Team Member
• 30 Calendar Days from
Receipt of RFP
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Breaking Down the Proposal Requirements
How to Analyze the RFP …
• Read the Entire Document as a Whole
• Dissect the Statement of Work (SOW),
Specifications, Drawings, Technical
Descriptions
• Develop Work Breakdown Structure
(WBS)
• Review the RFP Instructions & Evaluation
Criteria
• Responsiveness v. Responsibility
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Breaking Down the Proposal Requirements
How to Analyze the RFP …
• Relate the Source Selection Process with the
Proposal Development (Point to Point) – Don’t
Miss ANYTHING!
• Develop a Compliance Checklist
• Correlate Each Requirement to an Evaluation
Criteria
• Develop a “Proposal Outline” Handout for the
Kick-off Meeting
• Submit Request for Information" (RFI's) as
outlined in the solicitation instructions if the
specification is not clear. RFI's usually cut-off
about 2-5 days before solicitation closes.
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Identifying the Team Members
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•
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Identify the Best Available Candidates for the Proposal Team
Make Writing Assignments with Members Strengths in Mind
- THIS IS NO TIME TO EXPERIMENT OR TRAIN o Technical (or Engineering) Specialist
o Management/Operations Specialist
o Estimator or Cost(s) Analyst
o Contracts Specialist
o Logistics/Procurement/Small Business Specialist
o Quality/Environmental Health & Safety (EH&S) Specialist
o Past Performance/Projects & Resumes Specialist
o Expert Word Processor
o Graphics Designer/Artist
o Editor & Proof-Reader
o Proposal Coordinator
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Identifying the Team Members
• Don’t Overlook the Need for:
o Consultants – Subject Matter Experts (SME)
 Fill Gaps in Team Manpower & Experience
 Add Expert Support in Niche Areas
 Provide Inside Knowledge of Customer & Competitors
o Teaming Partners – Large & Small Business Providers of Supplies
and Services
 Exclusive v. Non-Exclusive
 Formal v. Informal
o Dedicated Subcontractor/Supplier Competitive Pools
o Reproduction Function - Internal or External
o Overnight Courier or Other Transportation Carrier
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Selecting the Team
• Selecting Teaming Partners
o Assess team member capabilities
Business, financial, other resources
o Assess team member past performance
o Assess team member past performance with the client
o Assess team member relationship with the client
o Assess legal constraints
Organizational conflicts of interest
Debarments/suspensions
Qualification requirements
o Assess team chemistry
Management styles, corporate cultures, strategic visions
• Successful Teaming Qualities
o Compatible contractors
o Good teaming agreements in place
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Teaming
• Why would small businesses want to team?
o Enables firms to complement each others
capabilities
o May enable firms to offer the best combination of
performance, cost and delivery
o May enable small businesses to successfully
compete for larger scale contracts
o To develop relationships and capture work on
multiple opportunities
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Teaming
• Most teams are either:
o Prime/Subcontractor relationship
o Joint Ventures
• Prime/Subcontractor Relationship:
o
o
o
o
Prime is responsible for contract performance
Government has privity of contract only with the prime
Relationships normally identified before offer is submitted
SBA checks for affiliation
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Following Award - Debriefs and Lessons-Learned …
• When the Customer Announces the Contract Winner – Always Request
a Debrief – WHETHER YOU WIN OR LOSE …
• As the Winner –
o Learn About What You DID BETTER than Everyone Else –
Strengths
o Learn About What May Need Improvement for the Future –
Weaknesses
o Continue to Develop a Better Relationship with the Customer
o Build Customer Trust and Show Humility
o Begin to Cultivate Follow-On Work – It’s never too early
• FIX THE WEAKNESSES IDENTIFIED IN THE DEBRIEF!
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Following Award - Debriefs and Lessons-Learned …
• As the Unsuccessful Offeror –
o Learn about the Proposal Weaknesses v. the Proposal
Strengths
o Learn more about What the Customer Really Wants and
Why You Didn’t Provide it THIS TIME …..
o Continue Gathering Business Intelligence (BI)
o Request Info regarding New Opportunities – It’s never
too early …
• FIX THE WEAKNESSES IDENTIFIED IN THE DEBRIEF!
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Acronym List
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ARNET – Acquisition Reform Network
BAA – Broad Agency Announcement
BD – Business Development
BI – Business Intelligence
CCR – Central Contractor Registration
DFARS – Defense FAR
DHS – Department of Homeland Security
DoD – Department of Defense
EH&S – Environmental, Health, &
Safety
EO – Executive Order
FAR – Federal Acquisition Regulations
IFB – Invitation for Bid
FSS – Federal Supply Schedule
FOIA – Freedom of Information Act
GFY – Government Fiscal Year
GSA – General Services Administration
GWAC – Government-Wide Acquisition
Contract
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ID/IQ – Indefinite Quantity/Indefinite
Delivery
MAC – Multiple Award
ODC – Other Direct Cost(s)
PL – Public Law
RFP – Request for Proposal
RFQ – Request for Quotation
SB – Small Business
SBA – Small Business Administration
SDB – Small Disadvantaged Business
SDVO – Service Disabled Veteran
Owned
SME – Subject Matter Expert
SOW – Statement of Work
UCF – Uniform Contract Format
USA – United States of America
USC – United States Code
WBE – Women Business Enterprise
WBS – Work Breakdown Structure
WOSB – Woman-Owned Small Business
www.militarywords.com
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Business Opportunities Websites
 Free/No-Cost
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www.sba.gov
www.fedbizopps.gov
www.grants.gov
www.gsa.gov
www.arnet.gov
www.firstgov.gov
www.defenselink.mil
www.dla.mil/db/procure
m.htm
 Paid Fee Sites
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www.epipeline.com
www.eagleeyeinc.com
www.input.com
www.onvia.com
www.bid-search.com
www.softshare.com
www.cch.com
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Reference Materials – Self Study
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Federal Acquisition Regulations (FAR)
• FAR Part 10 – Market Research
• FAR Part 11 – Describing Agency Needs
• FAR Part 12 – Acquisition of Commercial Items
• FAR Part 13 – Simplified Acquisition Procedures
• FAR Part 14 – Sealed Bidding
• FAR Part 15 – Negotiated Procurements
• FAR Part 16 – Types of Contracts
• FAR Part 17 – Special Contracting Methods
• FAR Part 19 – Small Business Programs
Periodicals
• National Contract Management Association Magazine & Journal
• National Association of Purchasing Managers – Institute of Supply Mgmt.
Magazine
• National Defense Industrial Association Magazine
• Government Executive Magazine
Websites
• www.arnet.gov
• www.firstgov.gov
• www.acq.osd.mil
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Questions?
• Ask me now or,
• call me at 410-688-5116 or
• email your questions directly to:
[email protected]
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