1. The Matchmaker’s Small Business Training
An approach to Government
and Prime Contractor Subcontracting
The MATCHMAKERS HPT is a Subcommittee of the Northeast Council
2009 Revision

2. 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

3. 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

4. Government Subcontracting
Over $500 Billion Dollars
Over 300 Billion
It flows-down, but not back up. Sub-tier companies do not have contractual ties with government agency or prime contractor.
Agency has relationship with prime. Prime has relationships (contracts) with its Subcontractors. The subcontractors have relationships/contractual ties with its sub tier companies.
Remaining approximately $160 billion is reported in simplified acquisitions, P Cards, Inter Agency Purchases and Micro Purchasing

5. How Can Small Businesses Participate?
The Federal Government buys from small businesses
$100 Billion each year is contracted to small businesses
33% supplies/ equipment
32% of services
7% of construction
13% of R&D

6. 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

7. 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

8. Small Business Training
Module 1:
Key Qualifications for Small Business

9. 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

10. 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

11. 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)
* The SBA suspended SDB Certification 09/23/08

12. 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.

13. 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 for more information on how to apply for certification.
* The SBA suspended SDB Certification 09/23/08

14. Module 1: Key Qualifications for Small Business
Step 1:
Register on Central Contractor
Registration (CCR)
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

15. Module 1: Key Qualifications for Small Business
To register for CCR, you will need:
D&B DUNS Number:
SBA Certification
For SDB* and 8(a) Status:
For HUBZone Status
All other SB categories can self-certify
To renew annually by accessing your information with your DUNS # and CAGE Code and utilizing your Personal User Account ID and Password
User Password expires and requires revision every 60 days

16. Module 1: Key Qualifications for Small Business
Step 2:
Register at On-line Representations and Certifications Application (ORCA)
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?

17. 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

18. 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

19. 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!

20. 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

21. KNOW YOUR CUSTOMER!

22. Small Business Training
Module 2: The Federal Acquisition Process

23. 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

24. Module 2: The Federal Acquisition Process
What is the Federal Process?
Pre-award
- Determination of Need
- Analysis of Requirement
- Source Selection
Solicitation & Award
- Solicitation
- Evaluation
- Negotiation
- Award
Post-award
- Performance of Work
- Payment & Accounting
- Modification
- Closeout
- Termination

25. Module 2: The Federal Acquisition Process
Types of government solicitations
Simplified Acquisitions
Sealed Bidding
Negotiated Procurements

26. 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 $3,000
Micro purchases less than $3,000
85% of Government purchasing actions

27. 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

28. 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

29. 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
DLA Enterprise Support
RFQ, RFP, and award postings from the Defense Supply Centers

30. 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 )
Electronic funds Transfer (EFT)

31. Module 2: The Federal Acquisition Process
Purchase Card (P-Card) program
Purchases of individual items under $3,000 or multiple items with an aggregate under $3,000 ($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

32. 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

33. Small Business Training
MODULE 3: Rules of the Road

34. Module 3: Rules of the Road

35. 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

36. 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

37. 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.

38. 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

39. Module 3: Rules of the Road
Subchapter H – Clauses & Forms
Part 52 Solicitation Provisions and Contract Clauses
Part 53 Forms

40. 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

41. 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

42. 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

43. 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.

44. Small Business Training
MODULE 4: Small Business Goals

45. 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

46. 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)

47. Module 4: Small Business Goals
Government agency, prime contractor, and small business relationships
Large prime contractors with contracts > $550K 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

48. 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

49. Federal Government Small Business Contracting Goals
Women Owned SB 5%
HUBZone 3%
SDB 5%
8a 5%
Service Disabled Vet 3%
Veteran Best Effort

50. 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

51. Small Business Training
Module 5: The Government Solicitation
Wanted

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

53. Module 5: The Government Solicitation
Successful Proposals
Responsive, all elements of the solicitation addressed and followed
Responsible – demonstrates capability
Competitive pricing
Organized and concise

54. 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?

55. Module 5: The Government Solicitation
Resources for Small Business
PTACs (
Prime Contractors’ SBLOs
Federal Agency Small Business Specialists (
US Small Business Administration (
Northeast Regional Council

56. Small Business Training
Module 6: Marketing to Federal Agencies and Prime Contractors

57. 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

58. Module 6: Marketing to Federal Agencies and Prime Contractors
Identifying potential customers
Visit Fedbizopps at
Visit subnet at
Contact local PTAC or SBA
Research Federal agency websites
Research past awards
Contact prime contractors for subcontracting opportunities
Attend outreach events
Attend Matchmaker events

59. 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

60. 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

61. 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?

62. 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
Contact your local PTAC
Contact prime contractor SBLOs (Small Business Liaison Officers)
Attend Matchmaker and Outreach events
Be persistent in your follow-ups

63. 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. 

64. This training was brought to you by:
The Department of Defense
Northeast Regional Council
for Small Business Education and Advocacy
Visit us Often!
2009 Revision