1. Procurement Readiness
U.S. Department of Veterans Affairs Office of Small and Disadvantaged Business Utilization
DRAFT

2. Table of Contents
Part I. Procurement Readiness Description and Must Haves
These are required actions to participate in the government marketplace as a prime contractor.
Part II. Procurement Readiness Should Haves
These are recommended actions that may increase the probability to successfully participate in the government marketplace.
Part III. Not Procurement Ready Yet?
These are recommended actions that may help you to become procurement ready.
Part IV. Procurement Readiness Differentiators
These are key considerations to differentiate your business from competitors when looking to participate in the government marketplace.
Part V. Procurement Readiness Additional Knowledge
This is knowledge that may help you understand how procurement works.
Part VI. Procurement Readiness Checklist
Summary of what is required, recommended and good to have to effectively participate in the government marketplace.
Part VII. Glossary
Definitions
DRAFT

3. Part I Procurement Readiness Must Haves
These are required actions to participate in the government marketplace.
Procurement Readiness Must Have – “required” DRAFT

4. What is Procurement Readiness?
Procurement Readiness is being capable of effectively participating as a prime contractor in the government marketplace.
Agency Procurement Readiness
Each Federal agency has different ways of doing business. The Veterans Affairs Department is one of the few that have specific requirements.
SDVOSB and VOSB shall be verified and registered in in order to be eligible for SDVOSB set -asides.
Procurement Readiness Must Have – “required” DRAFT

5. What are the General Requirements to be Procurement Ready?
Past Performance
Professional qualifications, experience, and acceptable and related past performance will be specified in each solicitation.
Past performance is relevant information for future source selection purposes, regarding a contractor’s actions under previously awarded contracts. It may include the following:
record of conforming to contract requirements and to standards of good workmanship
record of forecasting and controlling costs
adherence to contract schedules, including the administrative aspects of performance
history of reasonable and cooperative behavior and commitment to customer satisfaction
record of integrity and business ethics, and generally, the contractor’s business-like concern for the interest of the customer. (FAR Subpart 42.15—Contractor Performance Information; General)
For specific policy on how to prepare past performance, see FAR Subpart Policy.
demonstrate the capability to fulfill requirements or similar requirements for similar dollar value.
References
Procurement Readiness Must Haves – “required” DRAFT

6. Where to Register to be Procurement Ready?
Dun & Bradstreet Number (DUNS)
A DUNS number is a unique, non-indicative 9-digit identifier issued and maintained by D&B that verifies the existence of a business entity globally.
D&B assigns DUNS numbers for each physical location of a business.
Registration is FREE
DUNS Request Service for US Federal Government Contractors and Grantees is available at DUNS Request Service.
System for Award Management (SAM) (System for Award Management)
It is the Official U.S. Government system that consolidated the capabilities of CCR/FedReg, ORCA, and EPLS.
Procurement Readiness Must Haves – “required” DRAFT

7. Where to Register to be Procurement Ready? (Cont.)
In order to get registered in SAM, the following identifiers are needed:
Bank routing number will be required
DUNS
North American Industrial Classification System (NAICS) Codes
NAICS codes are /It is a six-digit code/ used for classifying business establishments and industries doing business with the government
NAICS codes are available at U.S. Census Bureau NAICS Codes.
NAICS are also utilized to determine business size status. A Small Business Size NAICS table is available at Table of Small Business Size Standards
Procurement Readiness Must Haves – “required” DRAFT

8. What are other Requirements?
Licenses and other requirements
In order to participate in the government marketplace, businesses should be in compliance with local, state, and federal laws.
Licenses will vary according to the industry and state where a business is operating.
Capability Statement
This is the single most important document that represents your business to a procurement officer.
It is the first opportunity for opening doors.
Make it stand out.
It should be no more than two pages
Procurement Readiness Must Haves – “required” DRAFT

9. What are other Requirements? (cont.)
A capabilities statement should contain:
Overview of your company
Core Capabilities
Government Contract Vehicles
Contact Information
NAICS
Certifications/Credentials
Current and previous business partners
Website
Testimony (optional)
Awards & Recognition (optional)
Procurement Readiness Must Haves – “required” DRAFT

10. Part II Procurement Readiness Should Haves
These are recommended actions that may increase the probability to participate in the government marketplace.
Procurement Readiness Should Haves – “Recommended” DRAFT

11. Other Resources to Make You More Visible:
These places will increase the probability of participating in the government marketplace:
Dynamic Small Business Search (
It is used by the government to search for procurement information
Businesses can be searched by different criteria such as location, ownership data, federal certifications, NAICS, and business type, among others.
It is very important to enter past performance information, keep updated and all contact information.
It should be fully completed and allowed it to be publically viewed
It is possible to register to DSBS as part of the SAM registration.
VetBiz.gov (
VOSB and SDVOSB should register to be able to compete for sole source procurement opportunities with the VA.
Corporate Website
A corporate website allows contracting officers to learn about a business, its capabilities, and past performance.
addresses should be corporate or business name.com (.net, .us, etc.); not Gmail or Hotmail
messages and phone call should be answered promptly
Procurement Readiness Should Haves – “recommended” DRAFT

12. Part III Not Procurement Ready yet?
These are recommended actions that may help you to become procurement ready.
Not Procurement Ready Yet? – “recommended” DRAFT

13. What to do if not Procurement Ready?
The following are actions that may increase the probability to participate in the government marketplace:
Subcontract
As a sub-contractor, you are able to show procurement decision makers your capabilities to perform tasks
SUB-Net is a way of finding subcontracting opportunities
SUB-Net database is a listing of subcontracting solicitations and opportunities posted by large prime contractors and other non-federal agencies.
Large businesses with prime contracts exceeding $650,000 (except for construction, which is $1.5 million) must provide a plan with subcontracting opportunities for all categories of small business.
Searches are performed by NAICS codes to find sub-contracting opportunities.
Not Procurement Ready Yet? – “recommended” DRAFT

14. What to do if not Procurement Ready? (Cont.)
Partner with other business
Teaming agreements or “Contractor team arrangement,” (as used in FAR. Subpart 9.6—Contractor Team Arrangements), means an arrangement in which—
(1) Two or more companies form a partnership or joint venture to act as a potential prime contractor; or
(2) A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program.
Teaming agreements are composed of a prime contractor (that completes 51% of the contracts) and one or more subcontractors that will propose to meet the government’s need.
Prime contractors could be either large or small businesses
Contracts may present limitations on subcontracting (specifications may vary by industry)
Not Procurement Ready Yet?– “recommended” DRAFT

15. What to do if not Procurement Ready? (Cont.)
Partner with other business (cont.)
Contractors Team Arrangements (CTA)
These are formal agreements provided by the U.S. General Services Administration (GSA)
By forming a CTA, GSA Schedule contractors can:
Compete for Schedule orders for which they wouldn’t otherwise qualify.
Increase their market share and become more competitive.
Reduce risk by sharing responsibilities with other team members.
Focus on the supplies (products) and services that best match their company’s resources and strengths.
Find greater success as a small and/or disadvantaged business.
Joint Ventures
“Joint ventures” engage in and carry out a single specific business venture for joint profit, for which purpose they combine their efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis for conducting business generally. (FAR. Subpart (g) (1)—Size Standards)
A joint venture results in a new, legal and temporary entity
It has its own DUNS number
Not Procurement Ready Yet?– “recommended” DRAFT

16. What to do if not Procurement Ready? (Cont.)
Other recommended actions :
Demonstrate knowledge about the buyer
Gain knowledge about the agency, department, culture, etc.
Attend Opportunity Showcases
Attend Advanced Procurement Briefings to Industry
Find a mentor in your industry
Gain knowledge through education
Attend “How To Business With the Government” workshops
Attend Small Business Summits
Attend the National Veterans Small Business Engagement
Provide references that can validate your experience
Obtain Non-Government Contracts to gain experience
Not Procurement Ready Yet?– “recommended” DRAFT

17. Part IV Procurement Readiness Differentiators
These are good to have things that could differentiate your business from competitors when looking to participate in the government marketplace.
Procurement Readiness Differentiators : “good to have ” DRAFT

18. How to stand out from the crowd?
The following recommendations can assist businesses in standing out:
Certifications for Small Business
Small business certifications are like professional certifications; they document a special capability or status that will help you compete in the marketplace.
Certifications may make your business more advantageous in pursuing business opportunities, such as government contracts.
The following are provided by the Small Business Administration (SBA)
Historically Underutilized Business Zones (HUBZone) Certification
Women-Owned Small Businesses (WOSB) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) Program
8(a) Business Development Program
For VOSBs and SDVOSBs the Department of Veterans Affairs offers a verification program to qualify for VA set-asides.
Business references
Current or past customers who can verify how you performed on tasks
Include Company, name of person along with contact information; facility or agency with which you worked; description of project; dollar amount of contract (preferred)
Procurement Readiness Differentiators : “good to have ” DRAFT

19. How to stand out from the crowd (cont)?
Federal Contractor Certification
A VA Program provided through the Procurement Technical Assistance Center (PTAC) counselors
Provides Small Business Offerors with an understanding of Federal contracting; respond competently to solicitations; and perform successfully once they have won the contract.
ISO 9000/9001
ISO 9000 is a series of standards, developed and published by the International Organization for Standardization (ISO), that define, establish, and maintain an effective quality assurance system for manufacturing and service industries.
Knowledge or education on a specific field
Industry Awards/Recognition
Professional publications
Pilots and studies
Procurement Readiness Differentiators : “good to have ” DRAFT

20. How to stand out from the crowd (cont)?
Compete for Simplified Acquisition Threshold requirements
Smaller Dollar Value
Provides contract opportunities
Respond to Request for Information/Industry Days
Identifies businesses who can provide the product or service
Allows you the opportunity to showcase your business
Allows you the opportunity to provide the requirements developer with alternatives
Procurement Readiness Differentiators : “good to have ” DRAFT

21. Part V Procurement Readiness Additional Knowledge
This is knowledge that may help you understand how procurement works.
Additional Knowledge DRAFT

22. What Determines Eligibility for Small Business Set-Asides ?
Eligibility for small business set-asides is determined by the business size specific NAICS.
The Small Business Administration (SBA) is the federal agency that determines size qualification based on each specific NAICS.
This information is available at
The NAICS and the number of employees or average of your firm’s last three year’s revenues are requested to determine size
Sales average for the last 3 years
Each Request for Quotation (RFQ) or Request for Proposal (RFP) is assigned a NAICS code
Firms must have to be small for that NAICS (to be considered small) and have that NAICS in their SAM’s profile.
Additional Knowledge DRAFT

23. What can Influence Eligibility when Bidding on Contracts?
Bonding capacity or surety bond is usually required when bidding on large contracts, especially construction
It is a document signed by the contractor and the surety company that assures the project owner the contract will be completed.
It is required by any Federal construction contract valued at $150,000 or more when bidding or as a condition of contract award.
Many service contracts, and occasionally supply contracts, also require surety bonds.
The Small Business Administration (SBA) offers a Surety Bonds program
SBA guarantees bid, performance and payment bonds issued by surety companies.
Additional Knowledge DRAFT

24. Additional Resources
Various sources can provide information on a product or service, current opportunities, or past procurements such as:
Federal Business Opportunities (FBO):
Federal Procurement Data System (FPDC):
U.S. General Services Administration:
Additional Knowledge DRAFT

25. Part VI Procurement Readiness Checklist
Summary of what is required, recommended and good to have to effectively participate in the government marketplace.
Procurement Readiness Checklist : “required, recommended and good to have” DRAFT

26. Procurement Readiness Checklist
Past performance
Capability statement
System for Award Management (SAM)
Dun & Bradstreet Number (DUNS)
FPDS Account
If eligible, apply for a Government Schedule
NAICS Codes & Size
Dynamic Small Business Search
Corporate website
Certifications for Small Business
Accepts Credit Card
Procurement Readiness Checklist : “required, recommended and good to have” DRAFT

27. Procurement Readiness Checklist (cont.)
Firm point of Contact with telephone number and address
Licenses
Bonding Capacity
Industry/Procurement Specific Certifications
Products must meet Trade Agreement Act
Procurement Readiness Checklist : “required, recommended and good to have” DRAFT

28. Part VII
Procurement Readiness Glossary
Definitions
DRAFT

29. Procurement Readiness Glossary
Being capable of participating effectively in the government marketplace.
Agency Procurement Readiness
Each Federal Agency may have specific requirements in order to be capable of doing business with it.
Past Performance
Professional qualifications, experience, and acceptable and related past performance shall be specified in each solicitation.
System for Award Management (SAM) (
Official U.S. Government system that consolidated the capabilities of CCR/FedReg, ORCA, and EPLS.
NAICS Codes
A six-digit code used for classifying business establishments and industries doing business with the government (
Dun & Bradstreet Number (DUNS)
A DUNS number is a unique, non-indicative 9-digit identifier issued and maintained by D&B that verifies the existence of a business entity globally (
Dynamic Small Business Search (
Used by the government to search for procurement information.
Businesses can be searched by different criteria such as location, ownership data, federal certifications, NAICS, and business type, among others.
SDVOSB
Service-Disabled Veteran-Owned (SDVOSB)
DRAFT

30. Procurement Readiness Glossary (Cont.)
VOSB
Veteran-Owned small businesses (VOSB)
Dynamic Small Business Search (
Used by the government to search for procurement information.
Businesses can be searched by different criteria such as location, ownership data, federal certifications, NAICS, and business type, among others.
VIP (
Veteran-Owned small businesses (VOSB) and Service-Disabled Veteran-Owned small businesses (SDVOSB) should register to compete for sole source procurement opportunities with the VA.
Application for Verification and Resources for Assistance
Application Resources are available to assist you with the verification process. For example, take advantage of the VA’s Verification Assistance and Counseling Programs
Small Business Administration (SBA)
the federal agency that determines size qualification based on each specific NAICS
DRAFT

31. Procurement Readiness Glossary (Cont.)
Surety Bond.
Required when bidding on large contracts
A document signed by the contractor and the surety company that assures the project owner the contract will be completed.
Required by any Federal construction contract valued at $150,000 or more when bidding or as a condition of contract award.
Source Selection
The process of evaluating a competitive bid or proposal to enter into a Government procurement contract, referring to acquisitions awarded according to Federal Acquisition Regulation Parts 13 (Simplified Acquisition), 14 (Sealed Bidding), or 15 (Contracting by Negotiation). (See FAR Subpart 15.3)
Set-aside
Set-asides award certain acquisitions exclusively to small business concerns. A “set-aside for small business” is the reserving of an acquisition exclusively for participation by small business concerns. (See FAR Subpart )
DRAFT