Understanding Small Business In The Federal Government Marketplace Tom W. Krusemark Procurement Center Representative United States Small Business Administration WPAFB DoD Activities EPA, DOE, Cincinnati, OH Good morning ladies and gentlemen! My name is XXXX. It is my pleasure to be here today to provide you with information on federal contracting opportunities. The SBA works to create an environment for maximum participation by small businesses as federal prime contractors and subcontractors.

What Do Contractors Do First? Obtain a Data Universal Number System (DUNS) Number www.dnb.com/us For Federal Prime Contract Opportunities: You need to be aware of the following: The Department of Defense (DOD) buys its goods and services through procurement centers located throughout the country. Every center has a Small & Disadvantaged Business Utilization Specialist (SADBU) assigned to help you do business with that specific agency. The major civilian agency that buys for the federal government is the General Services Administration (GSA). GSA manages the Federal Supply Schedules (FSS) Program. FSS are indefinite quantity contracts that allow federal agencies to order commercial products and services from approved vendors. The FSS systems is an excellent way for small businesses to obtain contract purchase orders from federal agencies. Large Prime Federal Subcontracts Awards are also good opportunities for small businesses. For all procurement actions exceeding $100,000 prime contractors are required to make a “best effort” attempt to use small businesses as subcontractors. For procurement actions expected to exceed $500,000 (one million dollars for construction) prime contractors are required to provide the agency contracting officer with a written subcontracting plan that establishes small business subcontracting goals.

Registration Process Central Contractor Registration Database (CCR) Keep Current (Update yearly at minimum) www.ccr.gov CCR registration is a must if you want to do federal procurement. Begin at the website and get registered. Then, check out the Dynamic Small Business Search portion of CCR. By having a profile on CCR, you have the ability to present your company’s capability to anyone using the Dynamic Small Business Search Tool on the CCR homepage. This is where the contracting personnel, small business advisors and other decision-makers will go when they need to find out whether small businesses can do the work they have in mind. It is free to federal and state government agencies as well as prime and other contractors seeking small business contractors, subcontractors and/or partnership opportunities. CCR is open to all small firms seeking federal, state and private contracts. Businesses profiled on the CCR system can be searched by NAICS codes; key words; location; quality certifications; business type; ownership race and gender; EDI capability, etc.

Contract Certifications Know the Federal Contract Certifications Self-Certifications Small Business – NAICS Codes Woman-owned Business Veteran-owned Business Service Disabled Veteran-owned Business Formal Certification Programs 8(a) Business Development HUBZone Small Disadvantaged Business (SDB) The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify. For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to. I’ll be discussing the 3 formal certifications in more detail. Check our website at sba.gov for further information on all certifications.

Formal Certifications Requires SBA Approval 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program. HUBZone - Small businesses located in areas identified as historically underutilized business zones,and with 35% of its employees living in HUBZones. SDB - Three-year certification for small, socially and economically disadvantaged firms eligible to receive prime and subcontract preferences. First the formal certifications: There are three, briefly defined here, which the SBA is actively involved in certifying small businesses as participants.

8(a) & SDB SBA 8(a) program SDB program Applies to all purchases Must be certified by the SBA Non-competitive and competitive program 9-year term - no renewals All 8(a) firms are SDBs Award must be made at fair market price FAR 19.8 SDB program Applies over $100,000 Must be certified by the SBA Competitive program 3-year term with renewals Not all SDBs are in 8(a) program 10% price evaluation credit (limited to select agencies) FAR 19.11 and 19.12 Let’s compare 8(a) and SDB – two which are often confused with each other.

HUBZone Program HUBZone Program Applies to purchases over $3,000; Must be certified by SBA - no term limits; Recertification required every 3 years; Competitive and sole-source program benefits; 10% price evaluation preference Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13 Two main objectives of the HUBZone program are to stimulate job creation and capital investment in designated communities. This slide includes the basics of the HUBZone program.

Service Disabled Veteran Owned Small Business Veteran’s Program Service Disabled Veteran Owned Small Business Applies to purchases over $3,000 Self Certified on CCR VA determines Service Disability No term limits Competitive and sole-source program benefits Subcontracting and Prime Contracting goals FAR 19.14

Know the Rules Federal Acquisition Regulations (FAR) www.arnet.gov/far Subpart 8.4 – Federal Supply Schedules Part 13 – Simplified Acquisitions Part 14 – Sealed Bidding Part 15 – Contracting by Negotiation The common goal throughout the rules and regulations is this – allow the maximum practicable opportunity for small businesses. In some situations, it may seem to be hard to locate that opportunity; we hope what we share with you today will give you some help in that search. This slide shows you some of the main chapters to reference when considering federal procurements.

Contract Opportunities How Contractors Find Contract Opportunities Research Past Purchases GSA Federal Procurement Data Center https://www.FPDS.gov Identify Current Procurement Opportunities Federal Business Opportunities (FBO) www.fbo.gov Researching past purchases and looking for active buys is the best way to target your niche in the federal procurement world. A good example is the the “Government Purchasing and Sales Directory.” This is a text book which lists alphabetically, all of the products and services purchased by the Federal Government. These products and services are then matched up to specific buying activities. Active buys valued at $25,000 or more can be found at the Federal Business Opportunities website. You can build your own email notice from FedBizOpps to alert you to new postings daily.

Identify Opportunities – Follow the Money FedBizOpps Identify Opportunities – Follow the Money When you want to review the current federal buys, this site is where I suggest you begin your search. In addition to current buys, you can look at the archives section to see what was bought in the past. This can help you to identify potential marketing sites. You will be “following the money” and getting to know where to introduce yourself for future buys. www.fedbizopps.gov/

This website can also help you to identify potential marketing opportunities.

Finding Subcontracting Opportunities Directory of Large Prime Contractors www.sba.gov/gc/sbsd.html SUB-Net http://web.sba.gov/subnet Many firms find the subcontracting world as a beneficial place to do business. But, finding subcontracting opportunities can be a challenge. You need to identify which large federal prime contractors need what you can provide. Use the directory on our web-site along with actual subcontract postings on SUB-Net to help you in that process. Each large prime contractor has a Small Business Liaison Officer (SBLO) who serves as a contact point for companies wishing to sell to them. They are identified in the subcontracting directory. Many of the large prime federal contractors post subcontracting opportunities and notices on SBA’s Sub-net. Solicitations can be searched there.

SUB-Net http://web.sba.gov/subnet/ Here’s how the Sub-Net home page looks. Start here to find a small business liaison officer at a large business by clicking on subcontracting opportunities. Or, view actual subcontracting opportunities posted by major federal prime contractors by clicking on the Search for Solicitation button.

Federal Supply Schedules Investigate Federal Supply Schedule (FSS) Contracts Becoming a GSA schedule contractor www.gsa.gov More and more, the federal supply schedules and GSA schedules are a place of opportunity for small businesses. Investigate whether contracting sites turn to these sources to complete their buys. If so, you need to begin the process to be a source of supply through the schedules.

Joint Ventures & Teams Investigate Joint Venture/Teaming Arrangements Excluded from affiliation – 13 CFR 121.103(f)(3) “bundled” requirement other than a “bundled” requirement Many small businesses are looking into joint venture and teaming arrangements to better compete for federal contracts. Make sure you understand the rules behind joint ventures and teams if this looks like the best way for you to maximize your potential.

Understand Marketing Capabilities presented directly to the federal activities and large prime contractors that buy products and services Contractors attend procurement conferences and business expos Attend Business Matchmaking events There are many ways to “narrow down” the federal marketplace. But, once you know where your products or services are being procured, make an effort to market your capabilities to those sites.

Solicitations Contractors request or download a bid package Obtain copies of relevant specifications & drawings Review relevant purchasing regulations Federal Acquisition Regulations: Micro-purchases (under $3,000) Simplified Acquisitions (under $100,000) Bids & Proposals (over $100,000) Contract clauses When you are familiar with the rules, the terms, and know your market, it is time to consider preparing a quote, a bid or a solicitation. Understanding the rules behind each method will ensure your success – for example, buys valued at less than $100,000 usually result in a purchase order instead of a contract. Your particular area of interest may fall within the micro-purchase threshold, making government credit cards an important issue for you. In addition, always read the contract clauses cited in anything for which you quote. Be sure to know what you are promising to provide before you sign and submit any type of offer.

Preparation For Offer 3 Rules for a solicitation: -Read it…Read it…Read it!!! Procurement History Pre-Bid Meetings & Walk-Throughs Clarification of ambiguities Some other pointers to remember as you prepare your offer.

Contract Award Are they Responsive? Are they Responsible? Pre-Award Survey: Technical capability & production capability Quality Assurance (QA) Financial: accounts receivable, net worth, cash flow Accounting System System for Qualifying Suppliers Packaging, Marking, Shipping The contracting officer will take all offers received and make an award decision. This list shows some of the areas a contracting officer may evaluate.

Contract Performance Contingency Plans Do They Have a back up plan if something goes wrong Do They Have enough time to react Anticipating Final Inspection (Ready) On-Time delivery Establishing a good track record If you get the award, solid performance is your key to future contracts.

Getting Paid Know the paperwork process Keep good records Know your options Progress payments Prompt Payment Act EFT (electronic funds transfer) Acceptance of government credit cards Navigating through the payment process can be an interesting experience. Smooth the way by following these tips.

Additional Assistance Procurement Technical Assistance Center (PTACs) www.dla.mil/db/procurem.htm Small Business Specialists www.acq.osd.mil/sadbu Local District Offices and Resource Partners www.sba.gov Local Small Business Development Centers SCORE www.score.org Women’s Business Development Centers http://www.onlinewbc.gov/ You will have questions along the way. This slide highlights a few of the most popular sources of free or low-cost assistance that’s available to you. Each provides free counseling to small businesses and may host low-cost training workshops for specific interest areas. SBA’s Procurement Center Representatives (PCRs) monitor federal agencies to ensure that a variety of procurements are reserved exclusively for small business participations. These transactions are known as “small business set-asides.” Also SBA’s Commercial Marketing Representatives (CMRs) can assist you in marketing to large prime federal contractors.

SBA Assistance Programs Federal Agency Contract Goal Program Procurement Marketing (FBO & SUB-Net) Certificate of Competency Program (COC) Size Program – NAICS Information E-Business Institute Since the federal government spends over 300 billion dollars for purchases of goods and services from private firms each year, SBA assists small businesses seeking federal contracts and subcontracts by negotiating small business goals (in terms of a percentage of annual expenditure) with the various federal agencies. The current negotiated goals are: 23% - SB, 5% - WOSB, 3% - SDVSBs, 5% - SDBs and 3% - HUBZone. Listed here are a few of the ways that SBA is ready to assist you and your firm.

Find online business counseling and training at: E-Business Institute The E-Business Institute is where you can find free training courses, workshops and counseling resources designed to assist entrepreneurs. The Institute makes SBA's business management resources available anytime and anywhere. It is a dynamic learning center designed to help small businesses compete in a constantly changing, global environment. This slide shows some of the courses and guides available online. Find online business counseling and training at: www.sba.gov/training/index.html

Helpful Web Sites DOD Small & Disadvantaged Business Utilization Office www.acq.osd.mil/sadbu/ Procurement and Technical Assistance Centers www.sellingtothegovernment.net Small Business Development Centers www.sba.gov/sdbc/ The department of defense has specific people at each buying activity to assist small businesses. Find the right point of contact through resources on their website. Should you require in-depth counseling in seeking federal or state government contracts, there are many Procurement and Technical Assistance Centers and Small Business Development Centers to assist you. They can help your firm register with the Central Contractor Registration (CCR) and obtain a DUNS number. Many times, they also can match your firm’s capability with procurement opportunities, as well as help you obtain military and federal specifications and drawings.

More Helpful Web Sites SBA’s Home Page: www.sba.gov Government Contracting: www.sba.gov/GC Site includes links to all major government contracting programs discussed here plus much, much more. It is impossible for me to properly address all that SBA’s Government Contracting programs can offer in the short time we have together. So, please visit the websites listed here to learn more.

Major Area Players In SB Sue.Tormey@wpafb.af.mi Sonia.Carlton@wpafb.af.mil Dixie.Wightman@wpafb.af.mil Patricia.Deschaine@wpafb.af.mil White.Norman@epa.gov Thomas.Mueller@sba.gov Director, ASC SB Office Director, AFMC SB Office Director, 554th SB Office Director, AFRL SB Office Director, EPA SB Office Director, Columbus SBA

Major Players (Cont) Eugene.Drombetta@dla.gov David.Pattee@dla.gov Robert.Murphy@sba.gov DSCC SBA SB PCRS Area IV SBA Govt Contracting Director

How To Do Business With Govt Understand Mission Core Competencies Understand Parity of Severable SB Status Know Marketing Process Know What the Various NAICS Codes Mean Have Access To Diversity Managers

Knowledge Bases Know Where Requirements Are Know Who The Major OEMs Are Do Your Research Show OEM Cost Savings in Technical Mgmt With Fair and Reasonable Cost Estimates

Success Roadmap Marketing Skills Financial Management Skills Operations Skills Seeking Guidance At The Right Time