Federal Business Things to Know Eben Townes Federal Strategies, LLC 24 Feb 2014

Federal Business  Agencies rely more on contractors than ever before; often critical to mission/operations success U.S. possibly largest customer for your products/ services There is no one federal government a. Follow same general rules b. Heavily local customs, behavior, culture applied Commercial Items, leverage (for products and business) Can be long-term and profitable customer

Federal Business Budgets immune to economic cycles – and grow Reduced selling costs possible Competition is keen Government pays on time Agencies add work to successful contracts Knowing who/what/when/why/how can give a competitive edge But need to know and deal with business differences No where can do so much so fast

Federal Agency Culture Have no time (plan, research, business), poor statements of work, solicitations, confusing clarifications, too-short schedules Take much time to complete – know and deal with it Don’t know business realities Risk adverse – ignore, pass on to you Process driven (it’s safer) Documentation Requirements Protest fear Accountability cloudy

Federal Business Designed to: – Serve end-user needs – Plan as a tool – Regulations are guides – Be efficient – If doesn’t say “no” you can – Manage not avoid risks – Competition Practice: – Process trumps – Never time, hard to do – Local culture, we-always- do-it-this-way – Long schedules – Avoid risks – Follow rules exactly (time) Poor requirements Whatever risks present, shift to contractors Don’t talk or listen Protest fear

Agency Major Players End-users/customers - Mission, service providers, consumers Have the needs Always in hurry Lack plans, measures Contracting - Process-driven vs. business reality savvy Time to perfect, avoid risk Be/stay safe Stress w users Finance - Manage overall Treat as own Color of money Low quantity commitments

5 Ways to Buy-Sell 1.Contract by sealed bidding 2.Contracting by negotiation 3.Simplified acquisition procedures 4.Multiple-award delivery-order & task-order acquisition, “fair opportunity” 5.Multiple Award Schedule acquisition

How & Why Award Lowest Price Other than lowest price “Best value” Price is important, but not most important Agencies provide criteria (i.e., value) Linkages to expressed need, required information, award criteria poor Requirements detail level vs. best value Past performance story Risk??!!

Recommendations Know the customer Understand business practice differences and risks Commit, adjust, and leverage to mainstream business Develop a good past performance story Read and analyze all of solicitations (esp. Secs. C, L, M) Don’t short shrift, credibility essential Documentation Market research Don’t be pushed around

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