Strategies for Success in Government Contracting

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http://grauandassociates.com/

http://www.leechtishman.com/


http://www.jenniferschaus.com/

http://www.smc.org/

http://www.sba.gov/offices/district/pa/pittsburgh



http://www.mascaroconstruction.com/

mailto:[email protected]



http://www.grauandassociates.com/






http://jenniferschaus.com/


http://www.smc.org/


http://www.sba.gov/offices/district/pa/pittsburgh




http://www.lrginc.com/

http://www.senate.gov/general/committee_membership/committee_memberships_SSHR.htm

Doing Business with the U.S. Government:

Strategies for Being a Successful Federal Contractor

Page 1

DOING BUSINESS

WITH THE U.S. GOVERNMENT: Strategies for Being a Successful Federal Contractor

The Politics of the Federal

Government Process

Aaron Grau, Grau & Associates

Contracts vs. Grants

All grants are contracts, but not all contracts

are grants.

• Appropriations/Earmarks

• SBIRs/STTRs

• CRADAs

• Program Awards

• Sales - Goods & Services



Page 2

pOLITICS & Procedure: The Playing Field

WHO to Pitch

….has money?

…has authority?

WHERE to Look

There are an estimated 1,300

federal agencies.

Which one needs you?

WHEN to Bother

Federal FY

Program dollars v. “new

money”

WHAT & WHY

MONEY

WE NEED IT

pOLITICS & Procedure: Contracting Art & Science

Science

Sales Target

1

Where

3

When

2

Who

Art

HOW?

How are you going

to hit your target?

pOLITICS & Procedure: Sealing the Deal

The General Services Agency (GSA) Schedules

Sub-Contracting (Small to Large or Large to Small)

Congressional Influence - Sometimes, But Don’t Count on It!

Small Business “Set-Asides” & The Rule of Two

Be Aware of Federal Agency Small Business Quotas

Spoon Feeding the Contract Officer

Indefinite Delivery Indefinite Quantity Contracts



Page 3

Understanding

the GSA Schedule

Jennifer L. Schaus

20 yrs. govt. contracting experience

Washington, D.C.-based

Product & service customers

GSA Schedule & other govt.

contracting services

Agenda

• Facts

• Requirements

• Terms / Conditions

• Process & Timing

• Advantages

• Disadvantages

• Conclusions



Page 4

GSA Schedule - FACTS

• 5 Year Contract Vehicle

• Marketing Tool ONLY

• 3 Five Year Renewable

Periods = 20 Yrs

• 39 Schedules Segmented by Product & Service

• MAS – Multiple Award Schedule – 20k Vendors

• Terms / Conditions

• Emphasis is on PRICE PRICE PRICE

Requirements

• 2 Full Years Balance

Sheet / Income Statement

• Relevant Past

Performance

• Invoices for EVERY item/service you are

providing

• Offer GSA lowest pricing

• $25/year in GSA Sales

Terms / Conditions

• Pre-Award

– Offer GSA equal to or better

than Most Favored Customer $

• Post-Award

– Price Reduction Clause

– Meet $25k/annual revenue

– Pay GSA .75% IFF Fee

– 2 CAV’s – Audits per 5 Years

– Limits on price increase



Page 5

Process & Timing

• Administrative, Technical & Pricing =

Proposal

• Multiple Documents, Reports

& Disclosures Required

• 1 – 3 Months Proposal Prep

• 4 – 18 Months Wait for GSA

• 1 – 3 Months Clarifications, Negotiations,

Federal Procurement Regs, Award

Advantages

• Shows you are “worthy” serious competitor

• Opens up new buying

channels (state, local, int’l)

• Limit or exclude competition

• Dedicated RFP’s - GSA E-Buy

• Marketing Tool – GSA Advantage

• Decrease paperwork for the contracting

officer (CO)

Disadvantages

• 10% of Federal Purchases

• One of many contract

vehicles

• No Guarantees

• Lowest Price – Price Ceiling

• Price Limitations – Margins

• Sales Quota – Repercussions

• IFF Reporting, Audits – Back Office



Page 6

Conclusions

• Not for everyone

• Know who your customer

is & HOW they purchase

• Build It & They Will Come = High Risk

• Measure ROI before jumping in – Price &

Margins

• Find partners on Schedule

• Asset or Liability

Government Contracting

Laws and Regulations

Steven D. Irwin, Partner

David E. Renner, Senior Associate

PRIME CONTRACTOR AND SUBCONTRACTOR

• A subcontractor is generally:

– “For the purchase, sale or use of personal

property or nonpersonal services which, in

whole or in part, is necessary to the

performance of any one or more contracts; or

– Under which any portion of the contractor’s

obligation under any one or more contracts is

performed, undertaken or assumed.” – Ex.

Order 11246 definition



Page 7

The Acquisition Process

This chart is an example of the process from one agency. Extensive variations will exist.

Credit to Division of Acquisition Policy, Indian Health Service, DHHS

Office of Federal Procurement Policy - 41

U.S.C.A. §§ 1101 – 1131.

• A subdivision of the Office of Management

and Budget

Federal Acquisition Regulations System

• Title 48 of the Code of Federal

Regulations



Page 8

The Federal Acquisition Regulation (The FAR)

• 48 C.F.R. § 1.101 – 1.707

• Offer guidance and mandatory provisions

for every type of contract the government

could award

The FAR

• The FAR relates to a three-step process

for federal contracting:

1. Need recognition and acquisition planning

2. Contract formation

3. Contract administration

The FAR

• Streamlined process for contracts less

than $150k

• Many agencies have own supplement to

the FAR – www.farsite.hill.af.mil/



Page 9

The Government Needs Widgets

Cost Accounting Standards (CAS)

• 48 C.F.R. § 99

• 19 standards for uniform accounting, cost

tracking, and reporting

• Defense contracts are bound by CAS, but

also supplemented by the Defense

Contract Audit Agency (DCAA) and the

Defense Contract Management Agency

(DCMA)

CAS

• A contractor is either subject to:

– Full CAS coverage

– Modified CAS coverage – 4 of the CAS apply

(single contract of $7.5 million or more)

– Exemption from CAS coverage



Page 10

Office of Federal Contract

Compliance Programs (OFCCP)

• Created under Executive Order 12086,

Regulations available at 41 C.F.R. § 60

• Administers and enforces Executive Order

11246, Section 503 of the Rehabilitation

Act, and VEVRAA

Non-Discrimination and Affirmative Action

• Ex. Order 11246 (1965, 1967, 2014)

• Federal contracts of $10,000 or more

• Cannot discriminate in employment

decisions

• Must take affirmative steps to ensure

equal opportunity

• Must conduct annual statistical analysis of

employment practices

Affirmative Action Plan

• Written Affirmative Action Plan

– Shows a good faith effort, and

– Goals and timetables for increasing minority

and female representation in the workforce



Page 11

16 Construction Contract Requirements

• 41 CFR 60-4.3

• Federal construction contracts in excess of

$10,000

• 16 affirmative action steps

Construction Contract, continued…

• Examples

– Maintain work environment free of

harassment, intimidation, and coercion

– Contractors and subcontractors must

encourage current minority and female

employees to recruit other minority persons

and women

– Increased scrutiny (site visits) for Mega

Contracts

Non-Retaliation for Disclosure of

Compensation Information

• Ex. Order 12866 (Effective April 8, 2014)

• Adds disclosure of compensation

• Prohibits retaliation against employees

who disclose compensation to other

employees



Page 12

Sexual Orientation and Gender Identity

• Prohibits discrimination for sexual

orientation and gender identity under

Executive Order 11246

• Exception for religious organizations

• Signed July 21, 2014; effective

immediately

Section 503 of Rehabilitation Act –

Non-Discrimination and Affirmative Action

• 29 U.S.C. § 794

• Federal contracts of at least $10,000

• Prohibits discrimination against and

imposes affirmative action obligations in

employment of individuals with disabilities

• Same requirements as ADA and ADAAA

Section 503 of Rehabilitation Act

Affirmative Action Plan

• 29 U.S.C. § 793 (1998)

• Federal contractors with 50 employees

and contract of $50,000

• Written Affirmative Action Plan

• Applicants and employees asked to self-

identify

• In 2013, DOL announced 7% utilization

goal aspirational; not a quota



Page 13

Section 508 of Rehabilitation Act

• 29 U.S.C.A. § 794d (1998)

• Applies to federal contractors dealing with

Electronic Information Technology

• Examples:

– HealthCare.gov must be screen-reader

accessible

– electronic Army kiosk must include braille and

plug in for hearing impaired devices

Vietnam Era Veterans’ Readjustment

Assistance Act (VEVRAA)

• 38 U.S.C. § 4212 (1974)

• Federal contractors having contracts of at least $100,000

• Prohibits discrimination against and requires affirmative

action for protected veterans

• Openings must be listed with employment service

delivery system, and veterans receive priority in referrals

• Veterans invited to self-identify both pre-offer and post-

offer

• Complete VETS 100a report

Fair Pay and Safe Workplace

Executive Order

• Signed July 31, 2014

• Applies to procurement of goods and

services, and construction valued at

$500,000 or more

• Bidders must disclose any administrative

determination, arbitration award or civil

judgment, within preceding 3-year period

for violations of any labor law



Page 14

Minimum Wage Exec. Order

• Executive Order 13658 (2014)

• Applies to all government contractors and sub-

contractors with contracts in 2015 and beyond that are

covered by:

– The Davis-Bacon Act

– The McNamara-O’Hara Service Contract Act

– Concessions contracts, such as contracts to furnish food and

lodging on federal property

– And contracts to provide services, such as child care or dry

cleaning, in federal buildings

Minimum Wage Exec. Order

• Effective January 1, 2015, the minimum wage allowed

for employees working under a government contract or

sub-contract anywhere in the nation is $10.10 – this is

not retroactive and only applies to contracts that are

issued on or after January 1, 2015

• Beginning January 1, 2016, the Secretary of Labor is

empowered to raise the wage as is deemed necessary

Davis-Bacon Act

• 40 U.S.C. §§ 3141-3148 (1931)

• Federal contracts for public works over

$2000

• Local prevailing wage for laborers and

mechanics

• Wage Determination by Dept. of Labor



Page 15

Copeland “Anti-kickback” Act (1934)

• Supplements Davis-Bacon

• Prohibits federal contractor or

subcontractor from inducing employee to

give up any compensation for employment

Walsh-Healey Public Contracts Act

• 41 U.S.C. § 35 (1936)

• Manufacturing or furnishing of materials,

supplies or equipment to the U.S. government

worth $10,000 or more

• Overtime for supplier’s employees working more

than 8 hrs./day or 40 hrs./week, and sets the

minimum wage equal to prevailing wage

• Prohibits employment of youths, convicted

prisoners

• Does not apply to “commercial” items

McNamara-O-Hara Service Contract Act

• 41 U.S.C. §§ 351–358 (1965)

• Performance of services on prime

contracts over $2,500

• Service employees entitled to prevailing

wages and fringe benefits

• Wage Determination by Dept. of Labor



Page 16

Contract Work Hours and

Safety Standards Act

• 40 U.S.C. §§ 3701 – 3708 (1986)

• Federal service contracts and construction

contracts over $100,000

• Time-and-a-half pay for all mechanics and

laborers working over 40 hours in week

• Applies OSHA

Mascaro Construction Company, LP

DOING BUSINESS WITH A GENERAL

CONTRACTOR

---------

LEECH TISHMAN

“Doing Business with the

U.S. Government”

9/19/2014 © 2014 mascaro construction company, lp



Page 17

© 2014 mascaro construction company, lp

Introduction

• Kathy Agostino

[email protected]

– Small and Disadvantaged Business Coordinator

and SBLO during estimating and preconstruction

– Maintain Database

– Active with Small Business Organizations

– Typically first contact for

• What we are bidding

• Is your scope of work on that project

• Where to view bid documents


Overview

• Founded in 1988

• Growth attributed to basic principles

– Integrity, Quality, Cost Efficiency

– Customer Service

• Delivery methods:

GC, CM, DB

• Self-Perform: concrete, earthwork,

roads, buildings


Wide Range of Projects

• Industrial

• Power/Piping

• Buildings

• Highway




Page 18


How to Get Work

• Introduce yourself –

tell us what you do

• Get on subcontractor /

supplier bid lists

• Follow-up with your contacts

• Join trade organizations

• Attend networking events

• Attend pre-bid meetings


Register with Government Agencies

• PA Unified Certification Program (PA UCP) – Allegheny County M/W/DBE Department

– Port Authority of Allegheny County

– Pennsylvania Department of Transportation (PennDOT)

– Allegheny County Dept. of Public Works

– Pennsylvania Turnpike Commission

• Pennsylvania Department of General Services (DGS)

• Small Business Administration (www.sba.gov)

• Federal Contractor Registration (www.sam.gov)

System for Award Management

** KEEP THESE CURRENT **


Track Projects

• Newspaper (Legal Ads Section)

• F. W. Dodge (McGraw-Hill)

• Construction Data Company

News (CDC)

• Reed Construction Data

• Pittsburgh Builder’s Exchange

(pbe.org)

• Minority Business Opportunity

Committee (MBOC)

• Chamber of Commerce

• Pittsburgh Business Times

(Book of Lists)

• Diversity Business Resource

Center (DBRC)

• Bureau of Minority & Women

Business Opportunities, PA DGS

• Veteran Business Outreach

Centers & VetBiz.gov

• Small Business Development

Centers (SBDC)

• SBA: SubNet

• Procurement Technical

Assistance Centers (PTAC)

• Government Agency

Coordination Office (GACO)

http://www.sba.gov/

http://www.sam.gov/



Page 19


Be Prepared to Bid

• Bonding and insurance in place?

• Dunn & Bradstreet Number?

• Pre-qualification to be completed?

• Federal Document Security Form required to

view doc’s on most Federal projects.


Be Prepared to Bid

• Training for yourself and employees?

• Know how to view/download bid doc’s from

websites and plan rooms?

• Website, email and contact information up to

date and current?


Safety and Construction

• Written Company Safety Plan

• On-going Safety Training

• Up to date OSHA Logs

• Lead by Example

• Poor safety record results in

- loss of work

- higher insurance costs



Page 20


Estimating & Bidding is fundamental to obtaining work

• Bid per the specifications for your scope.

• Prepare your bid accurately and clearly

• Acknowledge addenda

• Review the Bid Form

- (unit prices, alternates, etc.)

• Find out who to submit your quote to and

submit on time.


General Conditions

• Read and understand the impact of the

General Requirements:

– Contract and Payment Terms

– Schedule

– Safety Requirements

– Wage Rates

– Tax Requirements

– Insurance / Bond Requirements


Wrong Reasons to be the Low Bidder

• To enter a new market

• To retain field personnel

• To get prestigious jobs

• To beat the competition



Page 21


Right Reasons to be the Low Bidder

• You know the scope of work

• You know the subs

• You know the owner

• You have the best people

• To make a profit & grow your business


After the bid

• Follow-up

– When will results be available?

– Were you competitive?

• When you get a contract

– Do what you say you are going to do

– Staff knowledge and responsiveness –

field and office

– Make a great first impression

– Ask others how you are doing


QUOTE

Quote Often

Quote Early

Quote Complete



Page 22


Mascaro Construction Company, LP 1720 Metropolitan Street

Pittsburgh, Pennsylvania 15233 412/321-4901

Kathy Agostino: [email protected] Small & Disadvantaged Business Coordinator

SUPPORT SMALL BUSINESS!

Thank You for Attending

Kathleen Agostino, Estimating and Small Business

Coordinator, Mascaro Construction Company, LP

1720 Metropolitan Street; Pittsburgh, PA 15233

4 1 2.321.4901; mascaroconstruction.com

[email protected]

Linda Ambroso, Government Relations Professional, Leech Tishman

525 William Penn Place, 28th Floor; Pittsburgh, Pennsylvania

15219

4 1 2.2 6 1.1 6 0 0; leechtishman.com

[email protected]

Aaron Grau, Principal, Grau & Associates

1023 15th St, NW #200; Washington, DC 20005

4 1 2.4 8 0.1 8 0 9; grauandassociates.com

[email protected]

Steve Irwin, Partner, Leech Tishman


15219


[email protected]

David Renner, Senior Associate, Leech Tishman


15219


[email protected]

Jennifer Schaus, Principal, Schaus & Associates

1717 Pennsylvania Ave, NW #1025; Washington, DC 20006

2 0 2.3 6 5.0 5 9 8; jenniferschaus.com

[email protected]

Steve Shivak, President, SMC Business Councils

201 Penn Center Blvd., Suite 400; Pittsburgh, PA 15235-5068

412-371-1500, X1603; Toll Free: 800-553-3260; smc.org/

[email protected]

Kevin White, District Director, U.S. Small Business

Administration

411 Seventh Avenue Suite 1450; Pittsburgh, PA 15219

Phone: 412-395-6560; sba.gov/offices/district/pa/pittsburgh

[email protected]


Strategies for Success in Government Contracting

Government & Nonprofit

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