Federal Contracting 101

The Federal Procurement Process• Planning and Identifying the Need• Requisitioning the Requirement• Set Aside Decision or Purchase From Other Government Sources• Determining the Solicitation Methodology• Public Notification and Preparation of the Solicitation• Issuance of the Solicitation• Bid/Proposal Preparation• Receipt of Offers• Evaluation of Offers• Notice of Exclusion From Competitive Range• Preaward Debriefings (For Firms Not Within the Competitive Range)• Exchanges With Offerors/Negotiations• Proposal Revisions• Source Selection Decision• Award• Postaward Debriefings• Protests

Some Basic Principles

• There is much to learn about the federal procurement process and you cannot expect to learn everything about it in one day.

• Because public funds are used to finance federal contracts, awards are subject to serious and continuous scrutiny.

• Some of the rules and regulations that govern the federal procurement process come from political and social issues.

Basic Principles - 2

• Federal, state, local, and foreign governments all have different legislative issues that impact on their methods of purchasing goods and services.

• The process involves complex procedures and practices; even the lingo must be learned.

• This different business culture is not for everyone.

Basic Principles - 3

• If you decide to pursue it, you will need multiple certifications and registrations with different agencies.

• Consider being a subcontractor to an experienced prime contractor.

• America is at war, with special procedures for national security and for emergencies.

How to Get Started

• Decide which market to pursue and focus on it. • Get some smaller orders to develop a track record and learn the prequalification process. Earn some money while you are filling out the forms.

• Get registered and/or certified for your chosen market first, and let other certifications wait.

• Learn the language – start your own dictionary of acronyms and terminology.

How to Get Started - 2

• Be an established business with a good past performance history and good references. • Have established sound pricing practices. • Have a detailed Business Plan and keep it up to date.

How to Get Started - 3• Setup your bank account to accept Electronic Funds Transfer (EFT). • Have adequate working capital to finance the job (It is unlikely that the government will authorize advance payments).

• Have adequate insurance (and bonds if required) with a good risk record.

• Be able to accept VISA and other government purchase cards.

• U.S. government agencies rely on GSA FSS MAS contracts to save time and resources.

• Other agencies have separate but similar IDIQ contracting programs.

• Complex and difficult method of contracting.

• If you are patient and learn how, you can get orders from federal agencies not published for open competition, especially emergency orders.

Multiple Award Schedules

• What is a Contract Number resulting from submitting a time-consuming proposal in response to a complex solicitation that takes 6 months or more.

• Different version for each commodity or service group, in different formats by different GSA offices. Select one to start with, add others later.

How to Get a GSA Number

• Know your SIC, NAICS, and PSC codes.

• Get a Federal Employer Identification Number from the IRS.

• Set up EFT and VISA with your bank.

• Get a DUNS number.

• Register in the CCR, and update it at least once a year. Remember the CAGE code and PINs.

Checklist of Federal Registrations & Certifications

• Fill in the Dynamic Small Business addendum to CCR (formerly ProNet)

• Determine HUBZone status, and if applicable, submit a certification application.

• Update all of these whenever any of the details on the applications change. Keep copies.

• Start getting orders; don’t wait for the certifications.

Checklist - 2

• Participants in the 8(a) Business Development Program are SDB-certified.

• Self-certify if woman-owned, veteran-owned, disabled-owned, minority-owned.

• Formal application and certification required for “small disadvantaged” status.

• Some state and local certs available.

• Maintain compliance with all state requirements.

Checklist - 3

• Planning and Identifying the need.• Requisitioning the Requirement• Set Aside Decision or Purchase From Other Government Sources• Determining the Solicitation Methodology• Public Notification and Preparation of the Solicitation• Issuance of the Solicitation• Bid/Proposal Preparation• Receipt of Offers• Evaluation of Offers• Notice of Exclusion From Competitive Range• Preaward Debriefings (For Firms Not Within the Competitive Range)• Exchanges With Offerors/Negotiations• Proposal Revisions• Source Selection Decision• Award• Postaward Debriefings• Protests

The Federal Procurement Process

• Identify the Product or Service

• Prepare the Work Statement or Specifications

• Develop the Technical Evaluation Criteria

• Prepare the Independent Cost Estimate

• Identify Known Sources of Supply

Planning and Identifying the Need

• Preparation of the Requisition

• Preparation of any Required Justifications

• Commitment of Funds

• Submittal to the Contracting Office and the OSDBU

Requisitioning the Requirement

• Review of the Requisition by the Contracting Office and the OSDBU

• Clarifications and Corrections

• Other Than Full and Open Competition

• Set Aside

• Full and Open Competition

Set Aside Decision or Purchase From Other Government Sources

• Appropriate Contract Type

• Request for Information (RFI)

• Sources Sought

• Request for Quotes (RFQ)

• Sealed Bids (IFB)

• Request for Proposals (RFP)

Determining the Solicitation Methodology

• Formation of the Technical Evaluation Panel

• Synopsis on Fed Biz Opps

• Preparation of the Solicitation

Public Notification and Preparation of the Solicitation

• Electronic

• Hard Copy

• Will There be a Pre-proposal Conference?

Issuance of the Solicitation

• Technical Issues

• Pricing Issues

• Responding to Solicitation Amendments

• Meeting the Deadline

Bid/Proposal Preparation

• Public Opening of Bids

• Preparation of Abstract of Bids

• Proposals in Response to RFPs are Kept Confidential

• Separation of Technical and Price Proposals

• Convening the Technical Evaluation Panel

Receipt of Offers

• Responsiveness (Sealed Bids)

• Lowest Responsive, Responsible Bidder

• Technical Evaluation of Proposals

• Cost/Price Analysis (Evaluation)

• Technical and Price Evaluation Reports

• Determination of Competitive Range

Evaluation of Offers

• Requirement for Prompt Written Notification

• Basis for Exclusion

• Proposal Revisions Will Not Be Considered

Notice of Exclusion From Competitive Range

• Evaluation of Significant Elements in Proposal

• Summary of Rationale for Elimination

• Answers to Questions About Selection Procedures

Preaward Debriefings

• Technical Issues

• Cost/Price Issues

• Profit/Fee

Exchanges With Offerors

• Impact of Elimination From Competitive Range

• To Clarify and Document Understandings

• Final Proposal Revisions

Proposal Revisions

• Basis

• Must Represent Independent Judgment

• Must be Documented

Source Selection Decision

• Responsibility Determination/Pre-award Survey

• Verification of the Commitment of Funds

• Must be Based on Criteria in Solicitation

Award

• Have Adequate Working Capital• Establish a Relationship with a Bank• Consider Retaining a Factor• Maintain a Good Credit Record with Vendors• Establish & Maintain a Good Risk Rating• Have a Budget and Cash Flow Forecast• Include a Financial Plan in the Business Plan

Financial Resources

• Know What You Can and Can’t Do Under Various Circumstances• Keep Records of Required and Actual Delivery and Completion Dates• Establish a method of Scheduling Multiple Orders• Know How to Prioritize Conflicting Delivery Commitments• Be Prepared to Add Resources When Necessary• Invest in Project Management/Schedule Software

Performance/Delivery Schedule

• One of the Most Important Evaluation Factors• References Will be Checked – Valuable Asset• Get Customer’s Permission to List as Reference• Maintain List of All Contracts, Required Date, Actual Date• Report Delays Immediately, Request a Mod• Get Permission to Ship or Perform Early• On-time Delivery Must Not Jeopardize Quality

Past Performance

• Do Not Get on the “Ineligible” List• Establish a Company Code of Ethics and Standards of Conduct, and Teach It to All Employees • Maintain a Culture of Avoiding the Appearance of Impropriety

Integrity and Business Ethics

• Organization – Structure, Reporting Relationships, Controls• Experience – How Long You Have Performed• Accounting – Adequate Financial Management System Controls• Operations – How You Control the Process• Technical Skills, or Ability to Obtain Them• Train All Employees to Comply With P&Ps• Monitor How Company Lives Up to Them

Management and Controls

• Have a System for Acquiring & Maintaining E&F• How You Get What You Need (Inventory)• Consider Teaming to Acquire E&F• Insurance on E&F (Avoid Business Interruptions)• Adequate Security Measures• Be Prepared for Pre-award Audit

Equipment and Facilities

• Professional Licenses and Credentials• Personnel With Training and Supervision• Socio-economic Status and EEO Compliance• Security Clearances• Assurance that COC from SBA Will be There

Otherwise Qualified and Eligible

• Disclosure of Information on Significant Weaknesses or Deficiencies

• Overall Evaluated Price and Technical Rating

• Impact of Past Performance Evaluation/Report

• Overall Ranking of Proposals

• Summary of Rationale for Award

Postaward Debriefings

• Filing a Protest

• With the Contracting Officer

• At the Agency Level

• With the General Accountability Office

Protests

• Mary Lee Kolich, Program Director• Arthenia Johnson LeFlore, Procurement Specialist• Ralph Blakeney, Technology Manager• Melissa Simpson, Coordinator/Administration

Have You Met the PTAP Staff?