Cecil Whitlock: Did You Know that You Can PURCHASE an 8a Company?

Did you know that you can purchase an 8a company? Let’s answer this question together with Cecil Whitlock!

BUYING AN 8A COMPANY

Cecil Whitlock started his career in the federal market by working with different large companies.

He was then hired at the J2 Engineering, Inc. when the company is close to graduating in the 8a program because the company already outgrows the necessary numbers that small businesses can leverage. 

Then, at some point, he bought the company when the owner approached him about buying it because he chose to go back to law school. 

As the new owner, he still needed to make sure that the company continued working even after the program, so he went and bid on some MATOC and SATOC contracts on top of the sole source contracts that the company was already working on. 

Whitlock highly recommends these to 8a companies as these contracts last for over five years and even if you graduate from the 8a program, you can still keep these contracts and continue bidding on it. 

“I suggest that, you know, everybody, especially 8as, learn how to bid these contracts… and once you learn how to do them and get involved into them, you see that it’s a great thing.”

Apart from that, the company also leveraged the partnerships that they have with some of the largest corporations, including AECOM.

They continued bidding and winning on different million dollar worth of contracts until they had tapped out on their bonding and Whitlock decided to sell the company to a much larger firm in 2015. 

WORKING FOR THE MIAMI NATIONS

After selling the company and retiring, Whitlock decided to work again and in this instance, as the Managing Director of the 8a tribally-owned company, Miami Nations Enterprises. 

When he came in, Miami Nations wasn’t even formed yet, so there are things that they should do in order to keep the business afloat. 

In this case, Whitlock brought not just sole source work, but also IDIQ contracts because he knew that going after sole source contracts is not enough to sustain the whole company. 

“You need these IDIQ contracts. I think those are the easiest way to grow and it limits your competition.”

Currently, the company is involved in a handful of million dollar contracts with different teaming partners in order to get more past performance bonding for the company. 

ADVICE FOR SMALL BUSINESSES

1. Offer value. 

Consider that Miami Nations has a handful of teaming partners and these companies offer value in the contracts that they’re going after. 

Not because you’re an 8a or a tribally-owned company, someone will already give you a contract opportunity. This market doesn’t work that way. 

So, what are you bringing to the table? 

“I don’t give people business. I team and we work together on getting business or I’m out there getting business myself.”

2. Team with other companies.

Aside from being able to go after million dollar worth of contracts with a teaming partner, this could also help you in getting your past performance. 

Consider that when you team with someone, even if you only provided twenty thousand worth of work and the whole work is worth a million, you can still say that you did a million dollar job and you can also use that in your future projects. 

“I can’t stress how much past performance does for you. If you’re out there and you don’t have any past performance, if you team with somebody, you get that past performance for that… So, that’s pretty nice.”

3. Take advantage of the SBA. 

The Small Business Administration (SBA) is a helpful organization, but you need to use their services to your advantage. 

You should not just wait for them to do the work because if you think that the SBA is just going to give you a sole source project, you’re going to be sitting at home with no money on hand. 

Rather, you should prepare everything needed for them to do their job. 

“I like all the SBA people that I work with. They do a very good job, but you’ve got to help direct them to do the job for you.”

RESOURCES

If you want to learn more on how Cecil Whitlock bought an 8a company, then be sure to click the resources below.

You can also visit the GovCon Giant website or the new GovCon Edu where you learn everything about government contracting!

Did you know that you can PURCHASE an 8a company? with Cecil and Eric

https://www.youtube.com/watch?v=tZgQ1o3t_f0&t=343s

SupplyCore Inc. Awarded $92M Contract For Supply, Storage and Distribution of Water Purification Systems

SupplyCore Inc., Rockford, Illinois, has been awarded a maximum $92,000,000 firm-fixed-price contract for the supply, storage, and distribution of water purification systems. This was a competitive acquisition with two responses received. This is a four-year base contract with one one-year option period. The location of performance is Illinois, with a Nov. 19, 2024, performance completion date. Using services are Army and Marine Corps. The type of appropriation is fiscal 2021 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7MX-21-D-0016).

SupplyCore Inc. provides logistics solutions. The Company offers supply chains, distribution, warehousing, and facilities. SupplyCore serves customers worldwide. (www.bloomberg.com)

RFI: Software Development Programs and IT Services

The Naval Air Warfare Center, Weapons Division intends to award a contract to Stauder Technologies for the development and delivery of upgrades to the proprietary software Joint Effects and Coordination Link (JECL) and mobileJECL for the purposes of connecting Digital Imagery Exploitation Engine (DIEE) and the Kinetic Integrated Lightweight Software Individual Tactical combat Handheld (KILSWITCH) applications with customers’ requirements for different messaging formats.  Included will be support services for JECL and mobileJECL executable services and mobileJECL Android-Precision Assault Strike Suite (A-PASS) Plugin executable and source code, updated as necessary to encompass customer requirements.  DIEE and KILSWITCH will not interact with all customer messaging formats without the use of JECL or mobileJECL and each message format may require modification to ensure proper interaction.  Local and/or remote testing at China Lake, CA (or another approved facility) may be required.

REQUIRED CAPABILITIES: This notice of intent is not a request for competitive proposals; however, any firms believing that they can fulfill the requirement may submit a written response to be received at the contracting office no later than 15 days after the date of publication of this notice, clearly showing its ability to do so without causing programmatic hardship or duplication of cost to the Government. Responses to this sources sought shall be submitted to the contracting office and reference solicitation number N68936-19-R-0053  All responsible sources may submit a capability statement, which shall be considered by the agency. Responses and requests shall be submitted by email to john.faria@navy.mil or to Commander, Code 254100D (J. FARIA), NAVAIR WD, 1 Administration Circle, Bldg. 2334, STOP 1303, China Lake, CA 93555-6100.

  • Product Service Code: 7030 – INFORMATION TECHNOLOGY SOFTWARE
  • NAICS Code: 541511 – Custom Computer Programming Services
  • Place of Performance: USA
  • Updated Response Date: Sep 23, 2020 03:00 pm PDT

Full details via beta.sam.gov


GovCon Logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

Liberty Business Associates Awarded $108M IDIQ Contract

Liberty Business Associates LLC, Ladson, South Carolina, is awarded a $108,000,000 performance-based, single award, indefinite-delivery/indefinite-quantity, firm-fixed-price, firm-fixed-price level-of-effort, and cost-plus-fixed-fee level-of-effort and completion contract (N65236-20-D-1002) to provide corporate operational functional support with responsibilities to sustain mission capabilities.

The procurement will provide services which support day-to-day operations that are critical to Naval Information Warfare Center (NIWC) Atlantic’s mission success. The contract includes a five-year ordering period. Fiscal 2020 Navy working capital funds in the amount of $588,220 will be obligated at time of award. Funds will not expire at the end of the current fiscal year. Work will be performed in Charleston, South Carolina (80%); Norfolk, Virginia (17%); and other Department of Defense sites (3%), and is expected to be completed by September 2025.

The contract was competitively procured by full and open competition after exclusion of sources, small business set aside, via the Naval Information Warfare Systems Command E-Commerce Central website with five offers received. NIWC Atlantic, Charleston, South Carolina, is the contracting activity.

Liberty Business Associates is a Woman-Owned Small Business (WOSB) headquartered in  Charleston, SC. Liberty provides professional, technical, and consulting services to both government and commercial clients. Founded in 2002 , Liberty has since expanded their services beyond the government sector and to locations not only in South Carolina, but also Alabama, Florida, Georgia, Kansas, Louisiana, Maryland, Oklahoma,  Pennsylvania, Tennessee, Texas and Virginia. (libertyba.com)

 

Longbow Limited Awarded a $164,606,754 For AH-64E Helicopter Mast Mounted Assembly/ Radar Electronics Units

Longbow Limited, Orlando, Florida, was awarded a $164,606,754 firm-fixed-price contract for AH-64E helicopter mast mounted assembly/radar electronics units.  Work will be performed in Orlando, Florida, with an estimated completion date of Dec. 31, 2022. Fiscal 2018 aircraft procurement (Army); and 2019 Foreign Military Sales (India, Morocco, Netherlands, and United Arab Emirates) funds in the amount of $164,606,754 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

Longbow LLC produces equipment for the aerospace and defense industry. The Company offers products including electrical components for helicopters and other vehicles. Longbow provides services including design, development, and manufacturing. (bloomberg.com)

$60M Architect-Engineering Contract Awarded to Stantec Consulting Services

Stantec Consulting Services Inc., Burlington, Massachusetts, is awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract with a maximum amount of $60,000,000 for multi-discipline waterfront architect-engineering services in the Naval Facilities Engineering Command (NAVFAC) Mid-Atlantic area of operations (AO). Task Order 0001 is being awarded at $1,389,246 for 35% design of Dry Dock #1 caisson replacement at Portsmouth Naval Shipyard, Kittery, Maine.

Projects may include single or multiple disciplines, including but not limited to, structural, civil, mechanical, electrical, architectural, planning, environmental, fire protection, cost estimating and/or geotechnical. The types of waterfront projects may include piers, wharves, quay walls, dry docks, bulkheads, crane rail systems, fender systems, berthing and mooring, dredging, coastal and shoreline protection and waterfront related utilities (e.g., steam, low pressure compressed air, fresh water, salt water, sanitary sewer, oily waste water collection, high voltage to low voltage electrical, fire protection and alarm systems, control systems, lighting and communications (telephone, television, fiber optics, cyber security, supervisory control and data acquisition and local area network)).

Work for this task order is expected to be completed by May 2023. All work on this contract will be performed at various Future task orders will be primarily funded by O&M. This contract was competitively procured via the Navy Electronic Commerce Online website with four proposals received. NAVFAC Mid-Atlantic, Norfolk, Virginia, is the contracting activity.

Stantec Consulting Services Inc. provides architectural, engineering, and environmental services. The Company offers interior design, power engineering, geotechnical, transportation infrastructure, and geomatics engineering services.(bloomberg.com)

 

Government Programs to Help Small Businesses Export Products and Services to Foreign Markets!

Export excellence with these government programs to help small businesses export products and services to foreign markets!

EXPORTING FOR SMALL BUSINESSES

American-made products are respected and coveted around the world and exporting goods and services to other countries is good for the United States economy and to all small businesses. 

However, while large businesses often have the experienced staff to successfully export their products or services, small businesses need extra guidance and support in order to understand the complexities of exporting successfully.

This is why it’s no surprise that governments at all levels pitch in to help small businesses in the US.

In fact, the departments within the federal government, especially the  Department of Commerce and the Small Business Administration (SBA), participate in enabling small businesses to bring products and services to foreign markets.

With this, the best place to start is at the International Trade Administration’s Export Solutions, a portal that pulls together the resources from 19 federal agencies that help businesses with exporting.

EXPORT EXCELLENCE!

1. Learn how to export.

If you want to compete on the world stage, you will need to learn the ins and outs of successful exporting.

You can do this through the SBA’s growing library of videos, podcasts, online courses, and other resources. Learn how to do your international market research now!

2. Understand the complex world of exporting.

Every country has their own licensing and standards requirements. Finding the right licenses and adhering to the right standards will ensure a successful exporting business. 

With this, the International Trade Administration’s Export Solutions provides a convenient landing page that outlines licenses, standards, sanctions, and training that exporters need to navigate through the international market.

3. Understand the market.

The United States Department of Commerce has an International Trade Administration that performs market research.

They provide over 100,000 industry and country-specific market research reports for US-based companies registered on their Export Solutions portal.

4. Find and connect with partners and buyers.

Through a variety of programs offered by the US Department of Commerce, small businesses can find potential customers through a Trade Leads program, receive trade fair certification to appear in foreign trade shows, search for partners, and meet foreign buyers in US trade shows.

5. Manage your financials.

It costs money to initiate an exporting business. With this, the SBA offers 3 loan guarantee programs:

  • The Export Express Program streamlines the lending process and backs up to 90% of a loan from a lender so small businesses can borrow up to $250,000 to fund a variety of exporting initiatives.
  • The Export Working Capital Program guarantees lenders up to $1.5 million of a $2 million loan so exporters have a working capital to fund the various costs required in exporting.
  • The Trade Loan program guarantees lenders up to $1.5 million of a $2 million loan so exporters can start exporting or become more competitive if they have been adversely affected by imports.

Get more information about these finance programs (including the temporary 2009 Recovery Act fee waiver) at the SBA’s website.

Apart from that, you can also check these organizations for financial solutions:

With all of these, there are also other insurance products that include multi-buyer policies, short-term policies, and political risk policies, depending on the destination and type of exporting transaction. If you want to learn more about this, visit this link.

THINGS TO CONSIDER

Note: The resources listed above are for federal government exporting use only.

Most states provide their own additional resources to help companies within their state export to the international stage. Be sure to Google the name of your state plus “export assistance” or visit your state’s government website for export guidance.With this in mind, if you want to learn more about doing business with the US government around the globe, then join us here at GovCon Giants. Just visit our website and other social media platforms or check the new GovCon Edu where you learn everything about government contracting!

Public Sector Contracting versus Private Sector Contracting

Here’s an outline of the key differences in dealing with contracts between the federal government or the public sector and the private sector. 

FINDING CONTRACTS

The federal government typically operates procurements through the System for Awards Management and the Acquisition Central which centralizes several acquisition and procurement activities. 

Meanwhile in the private sector, some larger companies centralize procurement, but most deal with it in a decentralized way at a regional or departmental level.

GETTING THE CONTRACT

To ensure fairness, maintain high standards, and deliver value to the US taxpayers, the federal government has a strict procurement process in place.

Contractors need to send a proposal in response to a Request for Proposal (RFP) posted on a procurement site. Then, the Contracting Officer is typically delegated the full buying authority necessary to make the purchase in federal government buying decisions. 

Federal government services are less sensitive to the economy simply because taxes are collected regardless of economic conditions, however, businesses need to qualify, even annually, in order to maintain a position of “good standing” as a government service provider. 

On the other hand, private sector contracting varies dramatically and can often be accomplished through personal connections rather than sales effort because the contracts are highly sensitive to shareholder influence.

Private sector contracting might be sold through any number of sales techniques from cold-calling to sales presentations. Contractors may even frequently require the sign-off of higher levels of authority, each who need to be “sold” on the product or service.

Hence, in the private sector, a business’ track record and contract may be enough to acquire business, but in doing business with the government, qualification differs, depending on the agency served and the products or services delivered.

ENGAGING ON THE CONTRACT

Federal government agencies are often highly bureaucratic, so each agency carefully manages its own “jurisdiction”. As a result, private sector contractors transitioning in the public sector are sometimes surprised to discover just how “political” and “pigeon-holed” their works were.

Then, in terms of the successful completion of a project, in the private sector, contracts are considered complete based on performance-enhancing or bottom-line-enhancing Key Performance Indicators (KPIs).

On the other hand, the federal government may be occasionally cost sensitive during the selection of their service provider, but their KPIs are typically not tied to performance or the bottom line. Rather, they are tied to time, budget, measurable completion of the project, or some other indicator.

MAKING MONEY

Margins are usually higher in the private sector since the federal government rewards work to the lowest bidder. However, change orders and longer-term contracts make federal government work lucrative to companies that are able to work within the margins.

Payment is also different between these two sectors. Due to bureaucracy and pre-established systems, businesses can expect longer timelines on payment (1-6 months) from the government compared to the private sector where a 30-day payment schedule is typical.

SUMMARY

Breaking into the federal contracting marketplace isn’t always easy to do as it requires careful adherence to the pre-established process as well as creative navigation of the bureaucracy. However, companies that can establish connections as government contractors usually enjoy long-lasting opportunities.

With this in mind, if you want to learn more about doing business with the government or anything about doing government contracting, then join us here at GovCon Giants.

Just visit our website and other social media platforms or check the new GovCon Edu where you learn everything about government contracting!