How to do Business with the How to do Business with the Department of Homeland Department of Homeland

Security (DHS)Security (DHS)

A guide for small businesses A guide for small businesses interested in prime contracting interested in prime contracting

and subcontracting opportunities and subcontracting opportunities with DHSwith DHS

BackgroundBackground

““Our generation has now heard Our generation has now heard history’s call, and we will answer it.”history’s call, and we will answer it.”

President George W. BushPresident George W. Bush

President Bush signed the Homeland President Bush signed the Homeland Security Act of 2002 on 11/25/02 Security Act of 2002 on 11/25/02

MissionMission

Lead the unified effort to secure America Lead the unified effort to secure America Prevent and deter terrorist attacksPrevent and deter terrorist attacks Respond to threats and hazards to the Respond to threats and hazards to the

NationNation Ensure safe and secure bordersEnsure safe and secure borders Welcome lawful immigrants and visitorsWelcome lawful immigrants and visitors Promote free flow of commercePromote free flow of commerce

Policy StatementPolicy Statement

It is the policy of the United States, It is the policy of the United States, as stated in the Small Business Act, as stated in the Small Business Act, that “all” small businesses have the that “all” small businesses have the maximum practicable opportunity to maximum practicable opportunity to participate in providing goods and participate in providing goods and services to the Federal government.services to the Federal government.

SBA LegislationSBA Legislation

To ensure that small businesses get To ensure that small businesses get their fair share, SBA:their fair share, SBA:

negotiates annual procurement goals negotiates annual procurement goals with each federal agency;with each federal agency;

reviews each agency’s results; andreviews each agency’s results; and is responsible for ensuring that the is responsible for ensuring that the

statutory government-wide goals are statutory government-wide goals are met.met.

DHS Small Business Goals DHS Small Business Goals for FY 2005for FY 2005

SB prime - 23.0%SB prime - 23.0% 8(a) – 2.5%8(a) – 2.5%

SDB [non-8(a)] prime – 2.5% SDB [non-8(a)] prime – 2.5% (note: 8(a) + SDB [non-8(a)] = 5.0%(note: 8(a) + SDB [non-8(a)] = 5.0%

WOSB prime – 5.0%WOSB prime – 5.0% HUBZone prime – 3.0%HUBZone prime – 3.0% SDVOSB prime – 3.0%SDVOSB prime – 3.0%

SB sub – 40.0%SB sub – 40.0% SDB sub – 5.0%SDB sub – 5.0%

WOSB sub – 5.0%WOSB sub – 5.0% HUBZone sub – 3.0%HUBZone sub – 3.0% SDVOSB sub– 3.0%SDVOSB sub– 3.0%

Getting Started – Basic Getting Started – Basic QuestionsQuestions

1.1. Which government agencies buy Which government agencies buy my products and services?my products and services?

2.2. How do I get in touch with them?How do I get in touch with them?

3.3. How do I market to them?How do I market to them?

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question # 1 Answer to Question # 1 (who buys what I (who buys what I sell) sell)

Federal Procurement Data CenterFederal Procurement Data Center www.fpdc.govwww.fpdc.gov - Identify who buys your - Identify who buys your

product or service (hint: know your product or service (hint: know your NAICS code)NAICS code)

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question # 1 Answer to Question # 1 (who buys what I (who buys what I sell) sell)

Review agency publications:Review agency publications: Forecast of Procurement/Contracting Forecast of Procurement/Contracting

OpportunitiesOpportunities Subcontracting DirectorySubcontracting Directory ““How to” publications (if the agency has How to” publications (if the agency has

one)one)

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question # 2 – Getting in TouchAnswer to Question # 2 – Getting in Touch Check out these websites:Check out these websites:

www.fedbizopps.govwww.fedbizopps.gov – Register - get notices of – Register - get notices of government requirements for your NAICS codegovernment requirements for your NAICS code

www.fedbid.comwww.fedbid.com – Register - Compete on-line – Register - Compete on-line for government requirements for your NAICS for government requirements for your NAICS codecode

www.osdbu.gov – Federal OSDBU Offices web www.osdbu.gov – Federal OSDBU Offices web sitessites

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question # 2 – Getting in TouchAnswer to Question # 2 – Getting in Touch

www.mbda.govwww.mbda.gov – Register – Phoenix Database – Register – Phoenix Database to get free contract referrals.to get free contract referrals.

www.ccr.gov - Register – SBA’s Pro-Net www.ccr.gov - Register – SBA’s Pro-Net database is combined with DoD’s Central database is combined with DoD’s Central Contractor Registration database.Contractor Registration database.

http://http://web.sba.govweb.sba.gov/subnet/subnet - Prime Contractors - Prime Contractors post subcontracting opportunities here.post subcontracting opportunities here.

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question #3 – How do I market Answer to Question #3 – How do I market them?them?

Generally speaking, the government is Generally speaking, the government is decentralized. Most agencies consist of decentralized. Most agencies consist of numerous buying activities.numerous buying activities.

Learn what each targeted organization Learn what each targeted organization does and how they spend their money!does and how they spend their money!

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question # 3 – How do I market Answer to Question # 3 – How do I market them?them?

Participate in:Participate in: Targeted Outreach ActivitiesTargeted Outreach Activities Local Conferences/Trade ShowsLocal Conferences/Trade Shows

Focus on 3-5 agencies and allow 18-24 Focus on 3-5 agencies and allow 18-24 months for relationship building.months for relationship building.

Getting Started – Basic Getting Started – Basic AnswersAnswers

Answer to Question # 3 – How do I market Answer to Question # 3 – How do I market them?them?

To assist you, DHS is organized as To assist you, DHS is organized as follows:follows: Directorates and Direct ReportsDirectorates and Direct Reports

Border & Transportation SecurityBorder & Transportation Security (BTS) (BTS)

Responsible for maintaining the security of Responsible for maintaining the security of

our nation’s borders and transportation our nation’s borders and transportation systems systems

Customs & Border ProtectionCustoms & Border Protection Includes Animal and Plant Health Inspection ServiceIncludes Animal and Plant Health Inspection Service

Immigration & Customs EnforcementImmigration & Customs Enforcement Includes Federal Protective ServiceIncludes Federal Protective Service

Transportation Security Administration Transportation Security Administration Federal Law Enforcement Training Center Federal Law Enforcement Training Center Office for Domestic Preparedness Office for Domestic Preparedness

Emergency Preparedness & REmergency Preparedness & Response (EP & R)esponse (EP & R)Ensures that our nation is prepared for, Ensures that our nation is prepared for,

and able to recover from, terrorist and able to recover from, terrorist attacks and natural disasters.attacks and natural disasters.

Federal Emergency Management AgencyFederal Emergency Management Agency Strategic National Stockpile and the National Strategic National Stockpile and the National

Disaster Medical System Disaster Medical System Nuclear Incident Response TeamNuclear Incident Response Team Domestic Emergency Support Teams Domestic Emergency Support Teams National Domestic Preparedness OfficeNational Domestic Preparedness Office

Science & Technology (S & T)Science & Technology (S & T)

Responsible for the efforts in research and Responsible for the efforts in research and development, including preparing for and development, including preparing for and

responding to the full range of terrorist threats responding to the full range of terrorist threats involving weapons of mass destruction.involving weapons of mass destruction.

Homeland Security Advanced Research Projects Homeland Security Advanced Research Projects Agency (HSARPA)Agency (HSARPA) Small Business Innovative Research (SBIR) Program Small Business Innovative Research (SBIR) Program

(www.hsarpasbir.gov) (www.hsarpasbir.gov)

National and Federal LaboratoriesNational and Federal Laboratories

Information Analysis & InfrastInformation Analysis & Infrastructure Protection (IAIP)ructure Protection (IAIP)

Identify and assess current and future Identify and assess current and future threats to the homeland, map those threats to the homeland, map those threats against our vulnerabilities, threats against our vulnerabilities,

issue timely warnings and take issue timely warnings and take preventive and protective action.preventive and protective action.

ManagementManagement

Responsible for budget, appropriations, Responsible for budget, appropriations, expenditure of funds, accounting and expenditure of funds, accounting and

finance; procurement; human resources finance; procurement; human resources and personnel; information technology and personnel; information technology

systems; facilities, property, equipment, systems; facilities, property, equipment, and other material resources; and and other material resources; and

identification and tracking of performance identification and tracking of performance measurements relating to the measurements relating to the

responsibilities of the Department. responsibilities of the Department.

Direct ReportsDirect Reports

U.S. Coast GuardU.S. Coast Guard

U.S. Secret ServiceU.S. Secret Service

Bureau of Citizenship and Immigration ServicesBureau of Citizenship and Immigration Services

Visit www.dhs.gov/openforbusiness for DHS Visit www.dhs.gov/openforbusiness for DHS small business procurement assistance small business procurement assistance

information information

Federal Agency One-On-One Federal Agency One-On-One Counseling SessionsCounseling Sessions

Department of Homeland Security Vendor Department of Homeland Security Vendor Outreach Sessions and conferences Outreach Sessions and conferences www.dhs.gov/openforbusiness, scroll down www.dhs.gov/openforbusiness, scroll down to “Small Business Outreach Activities”to “Small Business Outreach Activities”

Treasury Vendor Outreach Sessions Treasury Vendor Outreach Sessions www.treas.gov/sba, click on Outreach www.treas.gov/sba, click on Outreach ActivitiesActivities

Department of Justice Monthly Counseling Department of Justice Monthly Counseling Sessions www.usdoj.gov/jmd/osdbu/Sessions www.usdoj.gov/jmd/osdbu/

Other Federal Agency One-On-Other Federal Agency One-On-OneOne

Counseling SessionsCounseling Sessions U.S. Department of Agriculture Vendor U.S. Department of Agriculture Vendor

Outreach Program - Outreach Program - ww.usda.gov/osdbuww.usda.gov/osdbu// U.S. Department of Labor U.S. Department of Labor

www.dol.gov/osbp/regs/procurement.htmwww.dol.gov/osbp/regs/procurement.htm U.S. Department of Health & Human U.S. Department of Health & Human

Services (Contact Ruth Lewis for more Services (Contact Ruth Lewis for more information at ruth.lewis@hhs.gov)information at ruth.lewis@hhs.gov)

Other Federal Agency One-On-Other Federal Agency One-On-OneOne

Counseling SessionsCounseling Sessions Department of Veterans AffairsDepartment of Veterans Affairs

www.va.gov/osdbu/conference/register.htwww.va.gov/osdbu/conference/register.htmm

U.S. Department of Housing and U.S. Department of Housing and Urban Development Urban Development www.hud.gov/offices/osdbu/index.cfwww.hud.gov/offices/osdbu/index.cfmm

Develop a Marketing Plan/Strategy

Include all possibilities, such as Include all possibilities, such as Subcontracts Prime Contracts Teaming/Joint Ventures Mentor Protégé Agreements Pre-existing Contract Vehicles

Key Sources of Assistance Key Sources of Assistance (locate the office in your local (locate the office in your local

area)area)

SBA – U.S. Small Business Administration (SBA – U.S. Small Business Administration (http://http://www.sba.govwww.sba.gov//))

PTAC – Procurement Technical Assistance PTAC – Procurement Technical Assistance Center Center (http://www.sellingtothegovernment.net)(http://www.sellingtothegovernment.net)

SBDC – Small Business Development Center SBDC – Small Business Development Center (http://www.sba.gov/sbdc/)(http://www.sba.gov/sbdc/)

OSDBU – Office of Small & Disadvantaged OSDBU – Office of Small & Disadvantaged Business Utilization Business Utilization (www.osdbu.gov)(www.osdbu.gov)

Basic InformationBasic Information

There are two types of contracting There are two types of contracting opportunities:opportunities:

Prime Contracting – you hold the contractPrime Contracting – you hold the contract

Subcontracting – a larger company holds Subcontracting – a larger company holds the contract and you get to work on a the contract and you get to work on a piece of itpiece of it

Basic Information (continued)Basic Information (continued)

After consideration of required sources (read After consideration of required sources (read FAR Part 8), the contracting officer has 2 FAR Part 8), the contracting officer has 2 choices:choices:

1.1. use a pre-existing contract (FSS, use a pre-existing contract (FSS, GWAC, GWAC, Department-wide contract)Department-wide contract)

2.2. use open market proceduresuse open market procedures

Basic Information (continued)Basic Information (continued)

Key Tip:Key Tip:

If what you provide is listed on a GSA Federal If what you provide is listed on a GSA Federal Supply Schedule, then get on the schedule! Supply Schedule, then get on the schedule! Why? because it is a faster method of buying!Why? because it is a faster method of buying!

Do your research, find out what pre-existing Do your research, find out what pre-existing vehicles are used by the agencies you have vehicles are used by the agencies you have targeted and, most importantly, let agencies targeted and, most importantly, let agencies know what contract vehicles you have available know what contract vehicles you have available to them.to them.

Basic Information (continued)Basic Information (continued)

Dollar amounts & methods of procurement Dollar amounts & methods of procurement you should know about:you should know about:

Up to $2,500 – Micropurchase (credit card)Up to $2,500 – Micropurchase (credit card) $2501-$100,000 – Simplified Acquisition $2501-$100,000 – Simplified Acquisition

Procedures (SAP)Procedures (SAP) Over $100,000 – Formal Contracting Over $100,000 – Formal Contracting

ProceduresProcedures

Note: under commercial items test – Note: under commercial items test – $5,000,000 can be considered SAP$5,000,000 can be considered SAP

Small Business Procurement Small Business Procurement ProgramsPrograms

8(a) Program set-aside8(a) Program set-aside Service-Disabled Veteran-Owned Small Business Service-Disabled Veteran-Owned Small Business

(SDVOSB) Program set-aside (SDVOSB) Program set-aside HUBZone Program set-asideHUBZone Program set-aside Traditional Small Business set-asideTraditional Small Business set-aside Mentor-Protégé ProgramsMentor-Protégé Programs Full & Open competition toolsFull & Open competition tools

SDB evaluation factor-prime proposes SDB SDB evaluation factor-prime proposes SDB targetstargets

SubcontractingSubcontracting HUBZone Price Evaluation Preference (10%)HUBZone Price Evaluation Preference (10%) SDB Participation Program-TargetsSDB Participation Program-Targets

Small Business Procurement Small Business Procurement ProgramsPrograms

Currently, there is no way to limit the Currently, there is no way to limit the competition to: competition to:

Women Owned Small BusinessWomen Owned Small Business Small Disadvantaged BusinessSmall Disadvantaged Business Veteran Owned Small BusinessVeteran Owned Small Business

Therefore, marketing is critical!Therefore, marketing is critical!

The “Model” Small Business FirmThe “Model” Small Business Firm

Working in the federal marketplace Working in the federal marketplace understands:understands:

Its’ core competenciesIts’ core competencies Marketing and relationship buildingMarketing and relationship building Schedules/Multiple award contractsSchedules/Multiple award contracts Open Market procurement (Open Market procurement (FedBizOppsFedBizOpps)) Prime contractingPrime contracting SubcontractingSubcontracting

The “Model” Small Business FirmThe “Model” Small Business Firm

Is equipped to do business with the Is equipped to do business with the Government:Government:

Accepts the government purchase card (Visa Accepts the government purchase card (Visa or Mastercard)or Mastercard)

Has good marketing materialsHas good marketing materials Has a niche (What’s yours?)Has a niche (What’s yours?) Has resources (people, equipment)Has resources (people, equipment) Is web savvyIs web savvy Is registered in Government pre-existing Is registered in Government pre-existing

databases (Pro-Net, CCR)databases (Pro-Net, CCR)

In SummaryIn SummaryWhat Really Works...What Really Works...

Being preparedBeing prepared RelationshipsRelationships NetworkingNetworking Multiple Contracting VehiclesMultiple Contracting Vehicles Smart MarketingSmart Marketing

In SummaryIn SummaryWhat Really Works...What Really Works...

Get InvolvedGet Involved Past PerformancePast Performance Share InformationShare Information PatiencePatience PersistencePersistence

RememberRemember

Homework always comes before success in the dictionary & Small

Business Procurement!