1. U.S. Small Business Administration
Selling to The Federal Government:
Winning
Federal Contracts
for the
IRS and NCMA
Greater New York Vendor Outreach Workshop
April 16, 2009

2. Federal Contracting Facts
The federal government is one of the largest single sources of US contracting opportunities for small businesses
Contracts exist for every item imaginable, from paper clips to armored tanks
In 2006, small businesses won:
$77 billion in direct prime contracts
$65 billion in subcontracts
over $142 billion in total federal contracts

3. Why a Small Business Program?
It is the policy of the United States that small business (SB) concerns shall have the maximum practicable opportunity to participate in the performance of contracts awarded by any Federal agency.
The United States uses the procurement process to advance socio-economic policies and objectives.
Government Policy Over Several Decades
Numerous Statutes, beginning with the Small Business Act as amended
Various Executive Orders
Federal Acquisition Regulation (48 CFR, Part 19)
SBA Regulations (13 CFR)

4. Small Business Act Basis for SBA Programs
Implements Congressional Policy to aid, counsel, assist & protect the interests of small business concerns
Goal of policy is to ensure that a fair proportion of purchases, contracts & subcontracts be placed with small businesses

5. Get to Know SBA’s Website
At take online federal procurement training modules to improve your company’s odds to win federal prime and subcontracts
Topics today include:
Defining the Market
How the Government Buys
Contractor Responsibilities
And many more

6. What is a Small Business?
According to regulation (FAR ):
“Concern”: Any business entity organized for profit with a place of business located in the U.S.
“Small business concern” means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13 CFR Part 121.”

7. Prime Contracting Government-wide Procurement Goals
Small Business (SB) - 23%
Small Disadvantaged Business (SDB) - 5%
Women-Owned Small Business (WOSB) - 5%
HUBZone Small Business - 3%
Service-Disabled Veteran-Owned SB (SDVOSB) - 3%

8. How the Government Buys
Order of Precedence
FAR – FPI and AbilityOne
GSA or other Federal Supply Schedule
8(a) sole source/competitive & 8(a)-HUBZone firms**
HUBZone competition, HUBZone sole source**
Service Disabled Veteran Set-aside, Sole Source** (1st priority for the VA (and VOSB 2nd)
Small Business Set-aside
Full and Open
SBA’s Position: Contracting Officers should use their best judgment as
to which vehicle ( 8(a), HUBZone, or Service Disabled Veteran Owned)
is most appropriate for their buy. Program Goal achievement is a factor
in this determination. Controversial

9. How the Government Buys – MAS/FSS
MAS/FSS Contracts :GSA establishes long-term government-wide contracts for the entire government to provide access to over 11 million commercial supplies (products) and services
Preferred method and widely used
The General Services Administration (GSA) manages
Multiple Award Schedules (MAS) contracts,
aka Federal Supply Schedule (FSS) contracts
Contact GSA for more information on how to obtain a MAS/FSS contract at and select link to GSA Contracts and Schedules

10. First Thing To Do – Get Registered
Obtain a “DUNS Number” that will identify your business to the federal government by visiting
In order to win federal contracts, your business must be registered in the federal government’s Central Contractor Registration (CCR) database at
Online Representations and Certifications Application (ORCA)

11. Identify Your Product or Service
2 different coding systems:
Federal Supply Classification Code (FSC)
North American Industry Classification System Code (NAICS)

12. Know the Federal Contract Certifications
Self-Certifications
Small Business – NAICS Codes/Size Standards
Women-owned Small Business (WOSB)
Veteran-owned Small Business (VOSB)
Service-Disabled Veteran-owned Small Business
(SDVOSB)
SBA’s Formal Certification Programs: 8(a) Business Development
HUBZone Empowerment Contracting
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.
The 3 formal certifications will be discussed in more detail. Check our website at for further information on all certifications.

13. Find Out If You Qualify for SBA Certifications
Require formal certification (pre-approval) by the government
8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program eligible to receive competitive and ‘sole source’ awards.
HUBZone - Small businesses, owned and controlled by only by US Citizens, community Development Corps, Indian tribes with its principal office located in areas identified as historically underutilized business zones, and with 35% of employees coming from HUBZones, eligible to receive competitive and ‘sole source’ awards.

14. Eligibility for 8(a) & SDB Programs
A small Business A small business
US Citizen US Citizen
51% owned and controlled Same controlled by socially &
economically disadvantaged
individuals
Net worth below $250K Net worth below K
In business at least 2 years

15. HUBZone Requirements
FOUR Requirements:
Must be a small business by SBA standards
* Concern must be owned and controlled only by US Citizens, Community Development Corporation or Indian Tribes
* The principal office must be located in a HUBZone
* At least 35% of the concerns employees must reside in a HUBZone

16. HUBZone Program Applies to purchases over $3000;
Must be certified by SBA - no term limits;
Annual self-certification required after initial approval;
Competitive and ‘sole source’ set-aside program benefits;
Can’t consider actions for HUBZone SA if FSS, UNICOR, NIB/NISH, or 8(a);
Sole source: Up to $5.5 M (mfg) and Up to $3.5M (non-mfg)
10% price evaluation preference (on non set-asides)
Principal office must be in a HUBZone
35% of employees must live in a HUBZone
FAR 19.13

17. Service-Disabled Veteran-Owned Small Businesses
Set-Aside
- Buys over $3000
- “Rule of Two”
- No upward $ limit
- Can’t consider if
FSS, UNICOR,
NIB/NISH, or 8(a)
Sole Source
Buys over $100,000
Only 1 Source
Up to $5.5 M (mfg)
Up to $3.5 M (non-mfg)
Can’t consider if FSS,
UNICOR, NIB/NISH,
or 8(a)

18. Service-Disabled Veteran-Owned Small Businesses
Additional Points to Remember:
VA determines Service Disability - SBA determines size, if protested;
No term limits – no need to apply or reapply;
Competitive and sole-source program benefits;
Subcontracting and Prime Contracting goals;
FAR 19.14

19. Identify Contract Opportunities
Federal Business Opportunities (FedBizOpps) (FBO) is the exclusive official source to identify federal contracts over $25,000 or
Demonstration Videos - Training videos are now available to familiarize users with the features and functionality of the new FBO
Sources Sought Notices in the FBO – Become familiar with and Respond to these notices.
Large contract awards and special notices (e.g., procurement conferences) are also publicized in the FBO.
Contains Recovery and Reinvestment Act Actions

20. Learn Federal Contracting Procedures
In order to win federal contracts, you must become familiar with federal regulations
. Federal Acquisition Regulations (FAR)
Subpart 8.4 – Federal Supply
Schedules
Part 13 – Simplified Acquisitions
Part 14 – Sealed Bidding
Part 15 – Contracting by Negotiation
Part Small Business Programs
Defense Federal Acquisition Regulation Supplement (DFARS)

21. Prepare your offer
3 Rules for a solicitation:
-Read it…Read it…Read it!!!
Request a Procurement History
Attend Pre-Bid Meetings
& Walk-Throughs
Get clarification of ambiguities
Proofread your proposal
Submit it on time!

22. Contract Performance Contingency Plans
Have a back up plan if something goes wrong
Give yourself enough time to react
Anticipating Final Inspection
Make an appointment before shipping date
On-Time delivery
Establish a good track record

23. Getting Paid Know the paperwork process Keep good records
Know your options
Progress payments
Prompt Payment Act
EFT (electronic funds transfer)
Accept government credit cards

24. Market Your Company
In order to effectively market your company’s product or service, you must:
Identify your customers
Research their requirements
Learn federal procurement regulations
Present your capabilities directly to the federal activities and large prime contractors that buy your products and services
Attend procurement conferences and business expos
Attend Business Matchmaking events
Add details to DSBS your Dynamic Small Business Search profile (e.g., GSA schedule number, commercial customers, federal customers, special capabilities).
Show contracting officers that your company is a good match for their needs and requirements

25. Market Your Company
TARGET YOUR CUSTOMER: Who buys your product or service? How do they buy? When do they buy?
KNOW THE RULES: Federal Acquisition Regulations, Contract requirements and specifications
PERFORM AS PROMISED: On-time delivery, Good Quality, at a Fair Price
CHAMPION of EXCELLENCE
PLEASANTLY PERSISTENT

26. Explore Subcontracting Opportunities
Prime contract winners often require subcontracts to fulfill their requirements
The SBA/GC Subcontracting Opportunities Directory lists by state the large business federal prime contractors with the contact information for each Small Business Liaison Officer (SBLO). View the directory at
SBA’s SUB-Net: Federal agencies, state and local governments, non-profit organizations, colleges and universities, and small businesses can use SUB-Net to post solicitations and notices. SUB-Net can be reached through the SBA’s Home Page at

27. Seek Help From Resource Partners
PTAC
Small Business Development Centers - LIDC
Women Business Centers
SCORE - Get Advice (online and in-person mentoring) from Successful Business Advisors

28. Seek Help From Resource Partners
Additional Help
Commercial Market Representatives
Small Business Specialists
Directors of Federal Agency Office of Small and Disadvantaged Business Utilization

29. Learn About Other SBA Programs
Find other SBA programs at
- Financial Assistance
- Contract Opportunities
- Online Training - Free Online Courses
- Counseling & Assistance
- Laws and Regulations

30. U.S. Small Business Administration
Debra B. Libow
Procurement Center Representative at
U.S. Small Business Administration
OFFICE OF GOVERNMENT CONTRACTING
Area I (CT, ME, MA, NH, NJ, NY, RI, VT, PR and the USVI)
*1. Define the 8(a) program – explaining what it is and clarifying what it is not;
*2. Outline program eligibility requirements;
*3. Explain the application process; and,
*4. Describe business development resources that support the 8(a) program.