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The 10 Step Approach to Government Contracting

Sponsored by The Procurement Technical Assistance Center through a cooperative agreement between the University of Alaska and Defense Logistics Agency.

 

Who is PTAC?

Established in 1986 by Dept of Defense

Educate business owners in the government contracting process (federal, state, and local)

Centers are located nationwide and in Puerto Rico

http://www.aptac-us.org

Audio: The Procurement Technical Assistance Center was established in 1986 by the Department of Defense, designed to educate business owners in government contracting processes both at the state and local levels. Centers are located nationwide, including Puerto Rico. You can also access our PTAC website through the links provided below.

Step 1: Are You Ready for Government Contracting?

Past performance and knowledge important to the government

To be in business and familiar with your industry is necessary for additional capital or bonding (if required)

Government requirements can be very daunting and time consuming

Audio: Before any business steps into the government contracting arena, they should ask themselves if they are ready. Contracting with government agencies involves additional paperwork and documentation that’s not normally required when selling goods and services in the private sector. Submitting bids or proposals, accounting and hiring practices, even performing the contract and invoicing must meet very specific standards. Equally as important in government contracting are having the appropriate licenses, bonding and insurance, as well as a record of successful past performance. Being aware of these components and having them in place will ultimately make you a more successful contractor.

Step 2: How Can PTAC Help?

Counseling services

Procurement workshops and seminars

Federal programs assistance

Reference library

Monthly newsletter

Electronic bidmatch

Audio: PTAC is the only program in Alaska designed specifically to help you through the process of successfully obtaining federal, state, and local government contracts. Our assistance is provided primarily through one-on-one confidential counseling; workshops and seminars; and electronic Bidmatch notices. Electronic bidmatch is probably one of our most popular services. We have the ability to set up a profile specific to the product or service you want to provide to the government using keywords and NAICS codes. Our system will then search for government notices that match your product or service and e-mail them directly to you. To take advantage of this service, you will need to have a valid business license, be currently pursuing government contracts, and respond to a quarterly survey.

PTAC_Activation_Form.pdf

Step 3: Identify Your Industry Codes

North American Industry Classification System (NAICS)
New six digit classification that replaces SIC system. The system was developed jointly by the US, Canada, and Mexico, to make international comparison easier.
http://www.census.gov/epcd/www/naics.html or https://eweb1.sba.gov/naics/dsp_naicssearch2.cfm

Standard Industry Code (SIC)
Four digit numerical code used to identify the primary type of product or service a business provides.

Federal Supply Codes/Product Service Codes
http://www.softshare.com/tables/pscs/

Audio: Most government agencies speak in acronyms and codes. For the federal government, one primary classification, or coding system, is the North American Industry Classification system, or NAICS codes. This six-digit system is used for classifying industries and replaced the US Standard Industry Classification system or SIC.

ID_Your_NAICS_Codes .pdf

Step 4: Obtain a DUNS Number

A unique nine-digit number assigned by Dun & Bradstreet to identify business entities, and is required for federal contracting

Free of Charge

No Waiting

Make sure you don’t already have one

Apply on the Internet
www.dnb.com

Audio: A Data Universal Number System, or DUNS number, is a unique nine-digit number assigned by Dun & Bradstreet used to identify business entities, and is required for Federal contracting. Registering is a fairly simple process and is free of charge for businesses obtaining it for government contracting purposes. To obtain your DUNS number, apply over the internet.

Step 5: Register in the Central Contractor Registry

Usually required to conduct business with the federal government

Payment electronically

Assigns a Commercial and Government Entity (CAGE) code

Accomplished online at www.ccr.gov

Links to SBA SUB-Net/DSBS

Important information about the CCR Registration Form:

Note that items marked with an M are required fields. You must enter information in all these fields.

Do not give out the financial information you enter in the form. This information should only be entered during your CCR registration.

Note your MPIN must be letters (abc...) or numbers (123...) ONLY. No spaces or special characters.

WARNING! Never give out your MPIN.

Audio: Once you have obtained your DUNS number, you will want to register in the Central Contractor Registry. Registering in CCR is usually required to conduct business with the federal government. Registration sets your business up for electronic payment on federal contracts and will establish a Commercial and Government Entity (CAGE) code, a five (5) position code that provides a standardized method for identifying companies and is used to support a variety of mechanized systems throughout the government.

CCR_Form.pdf

CCR_Handbook.pdf

 

Step 6a: Establish an MPIN

MPIN allows access to the Business Partner Network, the single source for vendor data for the Federal Government.

This search mechanism that provides unprecedented views into several key databases across Federal Agencies.

http://www.bpn.gov links to…
Central Contractor Registration (CCR)
Online Representations and Certifications (ORCA)
Past Performance Information Retrieval System (PPIRS)
Excluded Parties Listing System
EEO Pre-Award Clearance

Tip: Allow 48 hrs. for MPIN activation.

Audio: Establishing an MPIN, or Marketing Partner Identification Number, is the last field you will complete in your CCR record and is required to finish the process. It is a 9-digit alphanumeric ID that you choose which will allow you to access a variety of government databases, one of which is ORCA (and we'll talk about next).

Step 6b: Register In ORCA

Online Representations and Certifications
Replaces paper based reps & certs

Requires current CCR registration, DUNS#, and MPIN#

Access at http://orca.bpn.gov

Recommend viewing template of questions at Help page prior to completion

Audio: ORCA is the on-line version of the Representations and Certifications, which is required when submitting on Federal procurements which also a requirement for CCR registration.

AK_Procurement_Connection.pdf

Step 6c: Register in DSBS

Dynamic Small Business Search

Lists all businesses designated as “small” in CCR

Marketing and access database

Market yourself to government buyers and other businesses

Necessary for SBA certification as 8(a), SDB, or HUBZone

Audio: If you are designated as a small business in CCR (which is accomplished by a comparison of your annual revenue/number of employees with a NAICS code), you will be allowed to register in the Small Business Administration’s Dynamic Small Business Search. The DSBS is a marketing and research database used by government buyers and prime contractors to locate vendors in a specific demographic group, such as small business, woman-owned business, service-disabled veterans, etc.

When and how often are updates necessary?

Update your CCR registration as necessary, or at least once a year

Make changes that affect only one solicitation by completing the appropriate sections of either FAR 52.204-8 or 52.212-3(j), whichever is included in the solicitation

Tip: Be sure to register for your SBA profile at the end of your CCR activation to connect to subcontracting opportunities.

Audio: Your updating CCR registration is necessary at least once a year. Your registration will stay active from the date you initiated it, through a period of one year (12 months). At that point, after which if you have not updated your CCR registration it will go inactive and remain inactive for a period of nine years until you update your registration.

Step 7: Market Directly to Agencies and Buyers

Register directly with government agencies

Develop a Statement of Qualifications (SOQ):
Contact Information
Firm Background
Products and Services/Capabilities
Key Personnel
Project Descriptions
Additional Capabilities
References

Know the purchase thresholds
Federal: Micro-purchases <$2,500 (credit card); Under $25,000 (quotes); Simplified Acquisition =/> $100,000
State: Small purchases ($5000-$50,000); Large purchases (>$50,000)
Municipality of Anchorage: Informal Processes (at or <$25,000); Formal Processes (>$25,000)

Talk to the Small Business Liaisons

Audio: Many government agencies maintain their own vendor’s list to meet their buying needs. The most effective marketing tool is a Statement of Qualifications (SOQ), which operates as a resume for your business.

A Statement of Qualifications contains information about your firm, such as: Contact Information; Background; Products and Services/Capabilities; Key Personnel; Project Descriptions; Additional Capabilities you can provide: and References.

It’s also important to know the various purchasing thresholds within the government. Typically, the small-dollar contracts can either be awarded directly to vendors, or have little competition.

You should also get familiar with the Small Business Liaisons in Federal agencies. These folks are responsible for helping you understand how to contract with their agency, what the opportunities are, and who you should be talking to. They can also set up appts. for you to provide briefings to contracting personnel.

Market_Directly_to_Federal_Agencies.pdf

Sample_SOQ.pdf


Step 8: Understand Certifications and Business Classifications

Programs administered by SBA that require formal application:
8(a)
SDB
HUBZone

Self-certification programs:
WOB
SDVOB

Audio: There are various federal certification programs that benefit your firm. There are several programs administered by the SBA and require a formal application. These include:

The 8(a) Business Development Program, which is named for a section of the Small Business Act. The 8(a) program is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market. This is a 9-year program (the developmental stage which is 4 years; and the transitional stage which is 5 years).

The Small Disadvantaged Business program (or SDB program) is also a program for socially and economically disadvantaged businesses, and is designed to assist these businesses compete in the federal procurement market.

The HUBZone program was designed to stimulate economic development and create jobs in urban and rural areas by providing Federal contracting preferences to small businesses located in these areas. As such, the HUBZone program does not have the social and economic certification classification that the other two programs have.

Each of the three programs I mentioned, 8(a), SDB, and HUBZone, require a formal application be completed and submitted to SBA for review and approval. Each has a specific set of qualifying criteria that the business must meet to be certified through the program. There are also two self-certification programs available in the federal contracting arena that do not require a formal application to be completed. These are the:

Woman-Owned Business classification; and Service Disabled Veteran Owned Business.

 

Statutory Goals (Federal Only)

23 percent of prime contracts for small businesses

5 percent of prime and subcontracts for small disadvantaged businesses

5 percent of prime and subcontracts for women-owned small businesses

3 percent of prime contracts for HUBZone small businesses

3 percent of prime and subcontracts for service-disabled veteran-owned small businesses

Audio: Congress first enacted a procurement goal in prime contracting for small business in 1988. Since then, goals have been increased, extended to include some subcontracting and applied to certain sectors of small businesses. The SBA is responsible for implementing the goaling program to ensure that the government-wide goals are established each fiscal year. The SBA is also responsible for tracking and reporting on agencies’ achievements toward meeting those goals. The SBA like other Federal agencies, must also establish and try to achieve small business procurement goals.

Step 9: Locate the Opportunities and Become E-Commerce Savvy

www.fedbizopps.gov

www.dot.state.ak.us

http://notes3.state.ak.us/pn/pubnotic.nsf

http://www.matsugov.us/Purchasing/bidlist.cfm

www.softshare.com/isearch

Or, sign up for PTAC Bidmatch - mybidmatch.com

Audio: Listed below are a few links to help you locate opportunities and become e-commerce savvy.

Federal_Agency_POC_Listing.pdf

Govt_Contracting_Sites.pdf

Step 10: Find Your Niche and Work Hard

Study the market

Offer something new, unique, beneficial

Team, partner, or subcontract

Be responsible and responsive

Be fair and reasonable in pricing

Audio: It's important to the government that you study the market and the industry that you're in. It's important that you understand the procurement cycles and how they ooperate. Try to offer something new, unique, beneficial to them. Look at team, partnering, or subcontracting with some of your industry partners. Be responsive and responsible when you're communicating with them. And be fair and reasonable in your pricing. The government wants you and your business. It's important to them.

Successful Businesses...

Find out what they want
Then give it to them!

Cost!
Quality!
Schedule!

Audio: To be successfull in government contracting, you just need to find out what they want, and give it to them. Your focus should be on cost, quality, and schedule.

Alaska PTAC

ptacalaska.org

Wasilla
Robert Brunett
Program Director
373-7232

Anchorage
Alison Brunstetter
274-7232

Fairbanks
Mary Sheehan
Wes Dalton
456-7232

Audio: Your Alaska PTAC is here to serve all of your government contracting needs. You can simply call us at any one of the numbers listed below. We're located in Anchorage, Wasilla, and Fairbanks.

PTAC_Overview.pdf