Basics of selling to the government j kilian 031009
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www.mnptac.org 1 The Basics of The Basics of Selling to the Government Selling to the Government Greater MN Resource & Govt. Procurement Fair Greater MN Resource & Govt. Procurement Fair Treasure Island Casino, Welch, MN October 9, 2013 Treasure Island Casino, Welch, MN October 9, 2013 ______________________________________ John Kilian PTAC Area Manager/GSA Specialist [email protected] 612-259-6586
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By now, you must have some idea how huge the federal government expenditures were in 2012. The federal government market is the largest in the world! Would you like to participate in that marketplace but don't know where to start? Then attend this introduction to the basics of selling to the government. You'll get basic information on the market, how the market is segmented, buying channels, terminology, registrations and certifications involved, and the starting points for positioning your company to sell into the government market.
Transcript of Basics of selling to the government j kilian 031009
www.mnptac.org 1
The Basics ofThe Basics of
Selling to the GovernmentSelling to the Government
Greater MN Resource & Govt. Procurement FairGreater MN Resource & Govt. Procurement Fair Treasure Island Casino, Welch, MN October 9, 2013Treasure Island Casino, Welch, MN October 9, 2013
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John KilianPTAC Area Manager/GSA Specialist
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Workshop Objectives
• Overview of PTAC.
• Explain Government “Marketplace”.
• Review the basic procurement process, registrations/certifications related to doing business with the Government.
• Provide Key items to ensure success in the Federal, State and/or Local marketplace.
• Next Steps – You can begin Today!
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About PTAC
Procurement Technical Assistance Center (PTAC)
• Nationwide federally funded program by the Defense Logistics Agency (DLA). Our focus is assisting Minnesota businesses to:
Understand the government procurement process, practices and methods.
Improve competitiveness and business development capabilities through strategic marketing, research and contacts.
Identify, secure, maintain and ultimately help grow current government contracts and future awards.
• PTAC extends its services and support to all MN based business.
• One-Time Fee ($250) to become lifetime PTAC client.
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MN’s Statewide Presence
NORTHERN
NORTHERN
CENTRAL
TWIN CITIESMETRO
SOUTHEASTERN
SOUTHWESTERN
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Services:• Market Opportunity Assessment
• Registration / Certification Assistance
• Prime and Subcontracts
• Bid/Proposal Guidance
• Training
• Research Procurement Histories
• Electronic Bid Match Service
About PTAC_______________
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Bid Match Service:• Automatic electronic searching of 1400+ federal, state, and local govt. websites.
• Website surfing “not required”.
• Requires identification of key words/phrases, product/service info, NAICS codes, FSC/PSC codes.
• Search criteria can be “filtered” geographically by area, region, states, agencies etc.
• Web-based or E-mail delivery.
About PTAC_______________
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About PTAC
www.ptac‐meda.net
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Training Seminars:
• Introduction to Government Contracting
• Research, Research, Research
• Developing Winning Government Marketing Materials
• Selling to the Government –“Advanced Successful Strategies”
• Responding to Solicitations
• GSA Schedules – “A Business Perspective”
• Selling to State of Minnesota
• Doing Business with the US Army Corps of Engineers
• Military Packaging
• Advanced Contractor Series: A Legal Perspective
About PTAC_______________
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2012 Results:• Since 1991, PTAC has assisted thousands of Minnesota companies in securing and/or maintaining government contracts!
• PTAC Fiscal Year 2012: Worked with 1,169 clients throughout MinnesotaSponsored 60 workshops with 2,694 attendeesConsulted with 458 new business owners with 2,871
follow-up meetingsAttracted 900+ attendees to the 13th Annual Procurement
Fair & 150 to Greater MN Procurement Fair.Assisted in securing 1,869 contracts totaling $427million140 individual companies received awards
About PTAC_______________
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• The Federal Govt. purchases more than $500B of goods and services annually.
• Market includes the federal, state and local agencies (cities, counties, school districts, libraries, etc.)
• Extensive procurement regulations to comply with and lengthy sales “cycle”.
• Small Business subcontracting opportunities available.
• Set-Aside, Disadvantage Preference programs.
Government Market Place_____________________
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$517+ Billion Total Contract Awards – 2012*• $361B = Department of Defense• $25B = Department of Energy• $19B = Department Health & Human Services • $17B = Department of Veterans Affairs• $15B = NASA• $12B = Department of Homeland Security• $10B = GSA• $ 8B = Department of State• $ 7B = Department of Justice• $ 6B = Department of Transportation• $ 6B = Department of Treasury• $ 5B = Department of Agriculture• $ 5B = Agency for International Development • $ 4B = Department of Interior• $ 2B = Department of Education
Minnesota’s Share = $2.7B
*As reported in USAspending.gov
Government Market Place_____________________
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“What” does the government buy…….everything!
• Products:Computer hardware/software, medical/dental supplies, office supplies/furniture, foods, machined parts, oil, aviation equipment, clothing, war fighter supplies, etc.
• Services: Consulting, staffing, training, engineering, architecture, construction related, web development, medical coding meeting, planning, debt collection, social media, hazardous cleaning, janitorial, security services, etc.
• Innovative Solutions:New technology, “green” solutions, software development, unique devices, new processes, etc.
Government Market Place_____________________
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“How” does the Federal government Buy?
- Agency Inventories- Excess from other Agencies- Federal Prison Industries- Ability One (Blind/Severely Handicapped)
- GSA/DLA Stock Inventory- GSA Schedules- Open Competition (“Solicitations”)
Government Market Place_____________________
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SOLICITATIONS:“Mandated method, requiring a publically posted announcement of the government’s intent to purchase from the business community.”
FEDERAL: FedBizOppsThe single government point-of-entry for federal government procurement opportunities over $25,000.
www.fbo.gov
Government Market Place_____________________
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Government Market Place
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http://www.fbo.gov
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Military Solicitation sources:
• Department of Defense (DoD) – www.defense.gov/Army, Marine Corps, Navy, Air Force, National Guard, Coast Guard, Base Exchange, Commissary
• Defense Logistics Agency (DLA) – www.dla.mil/
• DoD Small Business Assistance - www.acq.osd.mil/osbp/
Government Market Place_____________________
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Defense Logistic Agency (DLA):
• DLA Philadelphia (formerly DSCP): http://www.troopsupport.dla.mil/
- Troop Support – i.e.) Clothing and Textiles, Construction, Weapon System Equipment, Spare Parts, Medical and Subsistence
• DLA Richmond (formerly DSCR): http://www.aviation.dla.mil/- Aviation and all things related
• DLA Columbus (formerly DSCC/DESC): http://www.landandmaritime.dla.mil/
-Land & Maritime and Energy – i.e.) Vehicular spare parts, electronics, piece parts, energy products, petroleum, etc.
Government Market Place_____________________
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Government Market Place
www.ptac‐meda.net
https://www.dibbs.bsm.dla.mil/default.aspxhttps://www.dibbs.bsm.dla.mil/default.aspx
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Commercial (COTS) Products/Services:General Services Administration (GSA):
GSA supports all Federal agencies, to obtain the products, services, consulting, space, real estate, and vehicles they need from federal and/or commercial sources.
GSA Service Organizations: Federal Acquisition Service (FAS):
Multiple Awards Schedules (MAS) / Federal Supply Schedules (FSS)
Public Building Service (PBS):Real Estate, Facilities, Design (A/E) & Construction
Government Market Place_____________________
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GSA – Federal Supply Schedules:• GSA Schedules – Potential 20 year contract Contract pre-negotiates pricing, terms and conditions. Contract is “empty” IDIQ – Indefinite Delivery Indefinite Quantity GSA negotiates and administers contract.
• Any federal agency can place orders against the GSA contract.
• Must consider at least three schedules before placing orders.
• Contractor collects/pays GSA a quarterly Industrial Funding Fee (IFF)
• $47B+ spent on Schedules in 2012 --- Over 22,000 Vendors!
• Vendor MUST market contract…no guarantee of orders!
http://www.gsa.gov/portal/category/100611
Government Market Place_____________________
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Doing Business with the Government
www.ptac‐meda.net
http://www.gsaelibrary.gsa.gov/ElibMain/home.do
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State & Local Solicitation resources:
• State of MN – http://www.mmd.admin.state.mn.us/solicitations.htm
• U of M – http://purchasing.umn.edu/• City of Minneapolis –
http://www.ci.minneapolis.mn.us/business/business_doing_busi ness_with_city
• City of St. Paul & Ramsey County – http://www.stpaul.gov/index.aspx?NID=221
• Hennepin County – http://hennepin.us/ click on “Business”• State and Local Government on the Net -
http://www.statelocalgov.net/index.cfm
Government Market Place_____________________
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Government Market Place
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http://www.mmd.admin.state.mn.us/solicitations.htm
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Government Market Placehttp://www.statelocalgov.net/index.cfm
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What are the “Rules” with the Govt?• Federal government - Federal Acquisition Regulations (FAR)
www.acquisition.gov/Far/• State government – 50 different rule books!
www.statelocalgov.net
What are the Contracting Methods?• Micro-purchases• Simplified Procedures• Sealed Bidding• Contract Negotiations• Consolidated/Co-operative Purchasing Programs
Government Market Place_____________________
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Federal Government “Markets”.
Open Market• Solicitations• Electronic Malls
Hidden Market• Purchase or Smart Cards• Small/Micro Purchases• GSA Schedules• Sole Source/Follow-on awards• Prime Contractor/Teaming• Cooperative Purchasing• Government Wide Area Contract
(GWAC)
Government Market Place_____________________
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Government Sales history/forecasts?
• Federal Procurement Data Systems (FPDS)https://www.fpds.gov
• USA Spendingwww.usaspending.gov
• Federal Agency Forecastshttps://www.acquisition.gov/comp/procurement_forecasts/index.html
• Office of Small and Disadvantaged Business Utilization (OSDBU)http://www.osdbu.gov/members.html
• General Services Administration (GSA)https://ssq.gsa.gov “GSA Advantage & SSQ Reports”
Government Market Place_____________________
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Government Market Place
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https://www.fpds.gov
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http://usaspending.gov
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Doing Business with the Govt!
1st Question ---- Am I “Large” or “Small” business?
•SBA sets the size standards, and matches them to each of the NAICS codes!
• Small Business Size Standards: http://www.sba.gov/content/table-small-business-size-standards
• NAICS Codes: http://www.census.gov/eos/www/naics
Searchable by Keyword, and may have more than one!
Many Bid opportunities are posted based on NAICS code!
• “Rule of Thumb”:• Manufacturing–1 year average number of employees (usually < 500)• Services– 3 year average revenues, but differs by industry (varies from $7M - $100M)
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Large or Small business…what’s the big deal?• Set-Asides --- restricts competitors!• Agencies and Primes must subcontract!
Current Subcontracting Goals:Goal* Actual**
• Small Business 23% 22.2%• Small Disadvantage (incl. 8(a)) 5% 8.0%• Women-Owned 5% 4.0%• Veteran / Service Disabled-Owned Vet 3% 3.0%• HUBZone 3% 2.0%
* Statutory Goals – Actual goals vary by agency/prime** Source data – SBA Goaling Report 2012
Doing Business with the Govt!_________________________
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Large Business Subcontracting Plans:•Large business receiving contracts over $650K, ($1.5M for construction) must submit a subcontracting plan – subject to annual approval by the C.O.
•The plan requires specific goals for each of the small business categories.
•Contractor must designate a Small Business Liaison Officer (SBLO).
•Listing of SBLO’s, by Contractor, by State at: http://www.sba.gov/category/navigation- structure/contracting/contracting-opportunities/sub- contracting/subcontracting-opportunities-directory
Doing Business with the Govt!_________________________
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How can I become a government contractor?
Register your business! (Federal)
1. DUNS - http://fedgov.dnb.com/webform or 1-866-705-5711
2. NAICS - http://www.census.gov/eos/naics/
3. DSBS - http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
4. SAM - http://www.sam.gov (Mandatory with Federal.)
Doing Business with the Govt!_________________________
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Doing Business with the Government
http://www.census.gov/eos/www/naics/
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Doing Business with the Government
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http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
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REGISTRATION - Small Business – (Federal):
• Small Business: (Self Certify)• Small Disadvantaged Business: (Self Certify)• Woman-Owned Small Business & EDWOSB:
(Self Certify and SBA Application, effective Feb, 2011)• Veteran-Owned Small Business: (Self Certify/VA verified)• Service Disabled Veteran-Owned Small Business:
(Self Certify / VA verified)• 8(a): (SBA Certified)• HUB-Zone Small Business: (SBA Certified)
Doing Business with the Govt!_________________________
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REGISTATION - Small Business – (States):
Minnesota Programs: (varies be state!):
• Women’s Business Enterprise National Council (WBENC)• Disadvantaged Business Enterprise (DBE)• Targeted Group / Economically Disadvantaged (TG/ED) • Central Certification (CERT)• Midwest Minority Supplier Development Council (MMSDC)
Doing Business with the Govt!_________________________
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REGISTRATION – Veterans (Fed & State):
- Service-Disabled Veteran-Owned Small Businesses (SDVOB) - Veteran-Owned Small Businesses (VOSB)
• CVE – Center for Veteran’s Enterprise -http://www.va.gov/osdbu/vip/step1.asp
• VETERAN’S FIRST PROGRAM:
Public Law 109-461 is a unique procurement program supporting veterans in business. This procurement program only applies to the Department of Veterans Affairs prime and subcontracting opportunities. They must first try to find SDVOSBs and then VOSBs. Other small business categories follow.
Doing Business with the Govt!_________________________
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Doing Business with the Government
http://www.va.gov/osdbu/vip/step1.asp
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Keys to Success! Know and understand your Customer!
• What do they buy?• When do they buy it?• How & Why do they buy it?• Do they have funding today or next year?• Learn their preferred contracting methods?• How/When/Where to register?• Leverage Small Business preferences• It is a Business Development Challenge NOT a Sales initiative!• Know your Competition -- Understand Teaming, Subcontracting!• It can, and will, take time to work the “system”!• Research, Research and more Research!
Doing Business with the Govt!_________________________
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Good News… We WON a Govt. contract!!
Bad News… We WON a Govt. contract!!
Requires Contractor to ensure:• On-going Contract Administration• Compliance with Contract Terms and Conditions• Reporting Contract Sales• Monitoring Subcontract/Prime Policies and Procedures• Timely Deliveries• Invoicing, Bidding, Modifications • Audits, Close-outs
Doing Business with the Govt!_________________________
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Please visit the PTAC booth if you have questions or need more info!
Thank You!____________
