The Matchmaker’s

Small Business Training

An approach to Government
and Prime Contractor
Subcontracting

The MATCHMAKERS HPT is a

Subcommittee of the Northeast Council
 Small Business
Development Training

Today’s Agenda:

• Introduction Why Sell to the Government

• Module I Key Qualifications
• Module 2 Federal Acquisition Process
• Module 3 Rules of the Road
• Module 4 Small Business Goals
• Module 5 The Government Solicitation
• Module 6 Marketing to the Government
and Prime Contractors
 Why Sell to the Government?
• The United States
Government is the largest
buyer of goods and services
in the world.
– Reliable customer
– Open competition
– Small Business Programs

• State and local governments

are a very large marketplace.
– May be less cumbersome than
Federal Regulations
– Regional preferences may exist
 Government Subcontracting

Over $400 Billion Dollars

Govt
Contract

Prime Contractor
Over $240 Billion

Subcontractors

Sub Tier Contractors

Remaining approximately $160 billion is reported in simplified

acquisitions, P Cards, Inter Agency Purchases and Micro Purchasing
 How Can Small Businesses
Participate?
• The Federal Government buys from small businesses
$40 Billion each year is contracted to small businesses
How can a small business compete?

– Congressional mandates to set aside contracts for small

business
– Federal Acquisition Regulations (FAR) level the playing
field
– Resources dedicated to small business
How do I know I am ready to sell to the
Federal Government?

• Critical Success Factors

– Financially stable/adequately capitalized

– Demand for your product or service
– Adequate time to devote to Government
contracting
– Pricing and past performance
 Small Business Training

Module 1:
Key Qualifications for Small Business
Module 1: Key Qualifications for Small
Business

• How to Determine if
your Business is Small
– The Small Business
Administration (SBA) has
established size standards
based on your industry
– 37 categories based on
North American Industrial
Classification System
(NAICS) Codes
– Details can be found at
www.sba.gov/size
 Module 1: Key Qualifications for Small
Business

• Government Agencies or Prime

Contractors will need to know who and
what you are

Have your answer ready:

– Clearly define your product or service

– Clearly define your capabilities
– Know your small business category
 Module 1: Key Qualifications for Small
Business

• Small Business Categories

– Small Business (SB)
• Small Disadvantaged Business
(SDB) & 8(a)
• Woman-Owned Small Business
(WOSB)
• Historically Underutilized Business
Zone (HUBZone)
• Veteran-Owned Small Business
(VOSB)
• Service-Disabled Veteran-Owned
Small Business (SDVOSB)
 Module 1: Key Qualifications for Small Business

• The Small Business must be 51% owned and

operated by the individual(s) who qualify for
any categories.
For Example:
– a "woman-owned business" is a business that is at least
51% owned by a woman or women who also control
and operate it. "Control" means exercising the power to
make policy decisions. "Operate" means being actively
involved in the day-to-day management.
 Module 1: Key Qualifications for Small
Business
• SBA Certifications
– Confirmation of certification by the SBA is
required by prime contractors and federal
agencies to allow them to receive credit for
purchases made to SDB, 8(a) and HUBZone
firms.
– All other small business categories may self-
certify.
• The certification process
– Contact your state PTAC or visit www.sba.gov
for more information on how to apply for
certification.
 Module 1: Key Qualifications for Small
Business
Step 1:
• Register on Central Contractor
Registration (CCR)
• www.ccr.gov
• Mandatory for all current & potential federal
vendors
• Creates a Commercial and Government Entity
(CAGE) Code that identifies your business
within the federal purchasing/ payment system
 Module 1: Key Qualifications for Small
Business

• To register for CCR, you will need:

– D&B DUNS Number: 1-800-333-0505
– SBA Certification
• For SDB and 8(a) Status: www.sba.gov/sdb
• For HUBZone Status
https://eweb1.sba.gov/hubzone/internet/
• All other SB categories can self-certify
– To renew annually by accessing your information
with your TPIN & DUNS #
 Module 1: Key Qualifications for Small
Business

Step 2:
• Register at On-line Representations and Certifications Application
(ORCA)
– https://orca.bpn.gov/
– Creates a single place for your small business representation &
certification info
– Eliminates entering data with each bid/proposal (update annually)
• Examples: Debarred? Woman Owned? TIN? Affirmative
Action?
Module 1: Key Qualifications for Small
Business

Step 3:
• Get Informed
– Understand the Federal Government
contracting process
– Find opportunities
– Learn the rules
– Learn how to prepare a bid
– Learn how to perform on contracts
– Learn how to build on success
 Module 1: Key Qualifications for Small
Business

• There are several sources of

information and assistance:
– The PTAC office in your state or region
– The SBA – Small Business Development
Centers
– Small Business Liaison Officers (SBLO) at
prime contractors
– Small Business Specialists at Federal Agencies
 Module 1: Key Qualifications for Small
Business
Step 4:
• Develop a Marketing Plan
– Prime Contractor
– Subcontractor
– Both?
• Does the Federal Government buy my
product or service?
• Do prime contractors buy my product or
service?
Only research will tell!
 Module 1: Key Qualifications for Small
Business
• What you need before you pursue
government contracts/subcontracts
– Adequate capitalization
– Drive, determination, & patience
– Competitive advantage
– Demand for products/services
– Adequate Pricing and margins
– Effective quality system
– Current business plan
– Bonding, insurance and security clearance (if
required)
– Computer Literacy, Internet capacity
KNOW YOUR CUSTOMER!
 Small Business Training

Module 2: The Federal Acquisition

Process
 Module 2: The Federal Acquisition
Process

• Federal Acquisition Process differs

from commercial purchasing
– Highly regulated
– Open and Fair Competition
– Contract clauses are “take-it-or –leave-it”
– Specifications are stringent
– Government may cancel for cause or convenience
– Mandated socio-economic programs
– Penalties for noncompliance
– Subject to Government audit
 Module 2: The Federal Acquisition
Process
• What is the Federal
Process?
Pre-award
- Determination of Need Post-award
- Analysis of Requirement - Performance of Work
- Source Selection - Payment & Accounting
- Modification
Solicitation & Award - Closeout
- Solicitation - Termination
- Evaluation
- Negotiation
- Award
 Module 2: The Federal Acquisition
Process

• Types of government solicitations

– Simplified Acquisitions
– Sealed Bidding
– Negotiated Procurements
 Module 2: The Federal Acquisition
Process

• Simplified Acquisitions
– Account for 90% of purchase
transactions
– Purchases less than $100 K
– Commercial items less than $5 million
– Reserved for small business if purchase
is above $2,500
– Micro purchases less than $2,500
• 85% of Government purchasing actions
Module 2: The Federal Acquisition Process

• Sealed Bidding
– A rigid procurement process
– Not open to negotiation
– For non-commercial supplies or services
greater than $100K
– Clear and detailed specifications
– Awarded on price factors
• But also to responsive/responsible bidders
only
Module 2: The Federal Acquisition Process

• Negotiated Procurements

– Most flexible but most complicated procurement

method
– Many forms
– 80% of contracts exceeding $100K
– Requests for Proposal (RFPs)
– Evaluation criteria cited in solicitation
– Contracting Officer (CO) may negotiate
 Module 2: The Federal Acquisition Process

• Electronic Procurement Opportunities

Examples:
– Federal Business Opportunities (FBO) is the
electronic, government-wide portal for federal
procurement opportunities that exceed $25,000
– http://www.fbo.gov
• DLA Enterprise Support
– RFQ, RFP, and award postings from the
Defense Supply Centers
– http://www.dla.mil/dss/default.asp
 Module 2: The Federal Acquisition
Process
• Getting Paid

– Prompt Payment Act (FAR Subpart 32.9)

– Government invoice payment is the 30th

day after the designated billing office
receives a proper invoice from the
contractor or receipt of goods or services
–whichever is later (exceptions FAR
32.904)

– Electronic funds Transfer (EFT)

Module 2: The Federal Acquisition Process

• Purchase Card (P-Card) program

– Purchases of individual items under $2,500 or

multiple items with an aggregate under $2,500
($2,000 construction) are considered micro-
purchases
– Micro-purchases do not require competitive
bids or quotes, and agencies can simply pay
using a Government Purchase Card (credit
card), without the involvement of a
procurement officer as long as the price is
deemed fair and reasonable
 Module 2: The Federal Acquisition
Process

• GSA Schedules Program

– Method of simplified acquisition – helps federal
buyers purchase faster, easier, at lowest prices
– GSA establishes government-wide contracts with
vendors to provide commercial supplies and services
– Generally 5 years with three 5 year option periods of
indefinite delivery & indefinite quantity (IDIQ)
– Not a guarantee of sales! Contractors must market
themselves
– www.gsa.gov/schedules
Small Business Training

MODULE 3: Rules of the Road

 Module 3: Rules of the Road

Federal Contract Law

Other Laws that Affect Contracting/ Dealing
with Government

Federal Acquisition Regulations (FAR)

http://farsite.hill.af.mil

Agency Specific Regulations (DFARs, etc.)

http://acquisition.gov/comp/virtual_library/regs.htm

Your solicitation and contract

 Module 3: Rules of the Road

• FAR (Brief Outline/ Highlights)

– Subchapter A – General (Parts 1-4)

• Part 2 Definitions
• Part 3 Ethics/ Conflicts of Interest
– Subchapter B – Competition (Parts 5-
12)
• Part 6 Competition Requirements
• Part 8 Required Sources
• Part 9 Contractor Qualifications
 Module 3: Rules of the Road

• Subchapter C - Contracting Methods and

Contract Types (Parts 13-17)
– Simplified acquisition, sealed bidding, contract by
negotiation, types of contracts, special contracting
methods

• Subchapter D - Socioeconomic Programs (and

other laws affecting contracts)
– Part 19 Small Business Program
– Labor laws, other laws, privacy, FOIA, Buy
America, foreign acquisition, other special cat.
programs
 Module 3: Rules of the Road

• Subchapter E - General Contracting

Requirements (Parts 27-33)
– Patents, data & copyrights, bonding, insurance,
taxes, cost accounting standards, contract cost
principals & procedures, contract financing, &
protests, disputes and appeals.
 Module 3: Rules of the Road

• Subchapter F - Special Categories of

Contracting (Parts 34-41)
– Major system acquisition, R&D,
construction/arch./engineering, service contracts,
federal supply schedules, IT, & utilities

• Subchapter G - Contract Management (Parts

42-51) – How relationship is managed
– Admin.&audit, modifications, subcontracting, Govt.
property, QA, transportation, value engineering,
termination, extraordinary actions, & use of govt.
sources
 Module 3: Rules of the Road

• Subchapter H – Clauses &

Forms
– Part 52 Solicitation Provisions
and Contract Clauses
– Part 53 Forms
Module 3: Rules of the Road

• Other areas of
interest

– Transfer of technology
with foreigners
– Security clearances
– Government ethics/
conflicts of interest
– Making claims against
the government
 Module 3: Rules of the Road

• Requirements for government

contracting and subcontracting

– The flow down requirements and/or statement of

work in a prime contract may require the small
business subcontractor to make organizational
adjustments to reduce the risk of non-performance

– Examples: quality, accounting systems, security

 Module 3: Rules of the Road

• Do I need a lawyer/other
professional to
understand all of this
stuff?
Probably not, but it depends
• Scale/ complexity of the
deal
• The scope of what you are
putting at risk
• Novelty of the deal
 Module 3: Rules of the Road

• Free assistance vs. paid

assistance

– You have free help out there, but it can

realistically take you only so far.
– If successful, you need to purchase talent,
either in-house or consultant.
– Be an educated consumer.
 Small Business Training

MODULE 4: Small Business Goals

 Module 4: Small Business Goals

• Public Laws and their impact on small

business
– A series of Public Laws govern the small business
contracting goals of Federal agencies as well as
the sub-contracting goals of prime contractors
– Commonly referred to as “set-aside programs”
and “subcontracting plans”
– Reality: Goals are treated like requirements and
are dependent on the availability of qualified small
business firms
 Module 4: Small Business Goals

• Socioeconomic Goals that Affect

Competition (examples)
– Use small business (FAR Part 19)
– Pay prevailing wages (FAR Part 22.10)
– Provide employment opportunities for U.S. citizens
(FAR Part 25)
– Equal employment opportunity (FAR Part 22.8)
– Maintain a drug-free workplace (FAR Part 23.5)
– Provide preferences for veterans (FAR Part 22.13)
– Provide handicapped accessibility (FAR Part 22.14)
 Module 4: Small Business Goals

• Government agency, prime contractor,

and small business relationships
– Large prime contractors with contracts > $500K
are required to submit small business
subcontracting plans to the Government
– Prime contractors negotiate goals in those plans
and are monitored by review of bi-annual reports
(SF294/SF295)
– No “privity of contract” exists between the
subcontractor and the buying agency
 Module 4: Small Business Goals

• Preferences for small business

– Small businesses in certain categories can receive

some preference as a prime contractor, when the
small business capability meets the procurement
requirements identified in the solicitation

– Small businesses help Government agencies and

prime contractors meet their small business goals
 Federal Government Small Business
Contracting Goals
• Small Business 23%
• Women Owned SB 5%
• HUBZone 3%
• SDB 5%
• 8a 5%
• Service Disabled Vet 3%
25%

20%
S m a ll B u sin e ss
15% W om en O w ned
H U B Zone
10% SDB
8a
5% S e r vic e D isa b le d

0%
S m a ll B u sin e ss
 Module 4: Small Business Goals

• How does a small business market itself to

the agencies and prime contractors?

– All Government agencies and large business

primes have goals to be met, but…
– Your SB category should not be the primary focus
of your marketing pitch
– Your SB category may help get you in the door,
but…
– Your ability to perform is most important
 Small Business Training

Module 5: The Government Solicitation

 Module 5: The Government Solicitation

• Solicitation/Contract
elements
UCF = Uniform Contract Format G. Contract Administration Data
H. Special Contract
A. Solicitation/Contract Form Requirements
B. Prices/Costs I. Contract Clauses
C. Specifications/Statement of J. List of Attachments
Work K. Representations,
D. Packaging & Marking Certifications
E. Inspection & Acceptance L. Instructions to Offeror
F. Deliveries or Performance M. Evaluation Factors for Award
 Module 5: The Government Solicitation
• Successful Proposals

– Responsive, all elements of

the solicitation addressed and
followed

– Responsible – demonstrates
capability

– Competitive pricing

– Organized and concise

 Module 5: The Government Solicitation

• Evaluate your proposal

– Meets all elements of the solicitation?

– Supporting documentation is available?

– All certifications and required documents are

signed and included?

– Submitted in accordance with solicitation

instructions and evaluation criteria?

– Does your program plan meet the requirements

and is it executable?
Module 5: The Government Solicitation

• Resources for Small Business

– PTACs (http://www.aptac-us.org)
– Prime Contractors’ SBLOs
– Federal Agency Small Business Specialists
(http://www.osdbu.gov/)
– US Small Business Administration
(www.sba.gov)
– Northeast Regional Council
http://www.dodneregional.org/news.htm
 Small Business Training

Module 6: Marketing to Federal Agencies

and Prime Contractors
Module 6: Marketing to Federal Agencies and
Prime Contractors

• Preparing to market to federal agencies

and prime contractors

– Obtain a D&B DUNS (Data Universal Numbering

System) number
– Register in CCR (Central Contractor Registration)
– Determine correct NAICS (North American
Industry Classification System) code
Module 6: Marketing to Federal Agencies
and Prime Contractors
• Identifying potential customers

– Visit Fedbizopps at www.fbo.gov

– Visit subnet at
http://web.sba.gov/subnet/search/index.cfm
– Contact local PTAC or SBA
– Research Federal agency websites
– Research past awards
– Contact prime contractors for subcontracting
opportunities
– Attend outreach events
– Attend Matchmaker events
 Module 6: Marketing to Federal Agencies
and Prime Contractors
• Small Business Research &
Development Programs
($$$)
– Small Business Innovative
Research (SBIR) programs
– Small Business Technology
Transfer (STTR) program
– Defense Advanced Research
Projects Agency (DARPA)
– Broad Area Announcements
(BAA’s)
– Other Federal agencies’ R&D
programs
Module 6: Marketing to Federal Agencies
and Prime Contractors
• GSA – General Services
Administration
– Expedited procurement system
developed by GSA and used by
many Federal agencies for the
procurement of goods and services
(State agencies may use for
Information Technology)
– Acquisition priority over full
solicitation when applicable
• For more information:
– GSA Boston at 617-565-8100
– www.gsa.gov/schedules
Module 6: Marketing to Federal Agencies and
Prime Contractors

• Is the Federal agency or prime contractor

really your customer?
– Do research to determine the following:
• Are your products/services being purchased by
Federal agencies or prime contractors?
• Are you able to compete profitably?
• Do you understand Government contracting
procedures?
• Is the pace of Government contracting compatible
with your business plan?
• Can a preference program benefit you?
Module 6: Marketing to Federal Agencies
and Prime Contractors
• Summary

– Identify your target agencies and contact

the Small Business Specialist
– Contact the SBA Procurement Center
Representative www.sba.gov/gc
– Contact your local PTAC
– Contact prime contractor SBLOs (Small
Business Liaison Officers)
– Attend Matchmaker and Outreach events
– Be persistent in your follow-ups
 Important Information
The material presented in this training and the advice
given by the trainer are intended to give you things to
think about as you prepare to be a government
contractor. The materials are not intended to be a
substitute for the actual laws, regulations, procedures,
policy and directions governing your relationship and
conduct with the government or its contractors or
agents. Not only are things subject to constant revision,
they may also be subject to interpretation that only a
competent authority or professional can provide. Do not
rely on this presentation as an authority. Please read the
most current law, regulation, procedure, policy, direction
or contract language and if there is any question as to
what it means, seek clarification from a competent
authority in the government or seek the help of a
competent professional.

*Nothing in this presentation should be construed as a guarantee of a contract award.

This training was brought to you by:

The Department of Defense

Northeast Regional Council
for Small Business Education and Advocacy

http://www.dodneregional.org/news.htm
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