Tag: Rule of Two

Sources Sought Notices and the Rule of Two – MasterMinds Monday

Posted on by Eric Coffie

On this episode of MasterMinds Monday, Eric Coffie shares the benefits of responding to sources sought notices and the rule of two in getting contracting opportunities.  

SOURCES SOUGHT NOTICES

Sources sought notices are not actual bids and solicitations. Rather, these are solicits of interest from a specific government agency in order to look for contractors that can provide the same products and services that are in the notice.

Because of that same purpose, there are not a lot of people who don’t respond to these notices. However, that’s the wrong way to think about these notices. 

“You should be going after these sources opportunities the same way you go after contracts. In fact in my personal opinion, I believe that you should go after source soughts harder than you go after contracts and bids.”

Consider it this way, because there are not a lot of responses to these notices, you can be able to shape the way this government research will come out. This is your opportunity to gain a set-aside or a contract meant for small businesses. 

Although there are times that no project or contract will come out of this research, this is also a way for you to be able to market to the agency and let them know you exist even before they put out a formal request. 

Let’s just say you responded to a sources sought notice about a portable toilet cleaning service job. You can contact or email the contract officer who handled that notice and ask if there’s a project that came out from that research or not. If there is none, you can ask for a similar project related to the sources sought notice or the contract officers will be the one to contact you when a related opportunity comes out. 

“I have never received a contract from a source of sought notice… What I receive is another contract that is related to my skill set, my company’s skill set, and our abilities because of submitting to a source of sought notice… So, I’m not expecting you to necessarily receive this contract because you submitted a source of notice however because you showed that you could do this, they may have an opportunity right now, today that’s a simplified acquisition that they could call you for and invite you to participate in.”

THE RULE OF TWO

In a sources sought notice, there is a factor that affects whether a project be given as a set-aside for small businesses or not and that is through the rule of two. 

The rule of two  has to be met for contract opportunities above the simplified acquisition to be set aside. In this process, there should be two or more companies that must submit to market research and let the government agency know that a business that provides a specific product or service exists. 

Consider that government agencies can just look for businesses that can provide a specific product or service through DSBS and other government contracting databases but they chose to publicly post a sources sought notice to provide opportunity to small businesses and to look for those that are really interested in such type of opportunity. 

This is why it is very important for small businesses as a whole to respond to these market research because if there is only one small business that responds, opportunities related to these sources sought notices will most likely be given to large companies rather than to small businesses. 

However, don’t expect that you will directly get a return on investment by responding to these notices. The rule of two has to be met by two or more companies. Slowly, when more companies respond to these notices, this can change the paradigm and this can shape future opportunities coming down the path of small business contractors. 

“Why don’t we help them (small business activists, liaisons, and some offices) do their job easier? Like let’s make their job easier by giving them the information they need, finding people that can do these types of jobs, and if even if you can’t do it, reaching out to someone who you know that can do it and have it helping them submit their information. All that does is creates more opportunity for all of us small businesses out there.”

So that’s essentially the rule of two in a nutshell. Respond in the market research phase and ask other businesses to do the same. Put together your teams. Send your capability statement and response to the government. Lastly, allow them to take the evaluation.

RESOURCES

If you want to watch the full video where Eric shares the benefits of responding to sources sought notices and the rule of two in getting contracting opportunities, then be sure to click the links below:

[GovCon] What is an RFI/Sources sought, the rule of two and why does it matter?

https://www.youtube.com/watch?v=8CTh_tUOY04

Last week’s sources sought notices in Beta.Sam and why this is important 0727

https://www.youtube.com/watch?v=dhUk2MhhzQI

What is a ‘Sources Sought’ on FedBizOpps (FBO) & how to respond? – Eric Coffie

https://www.youtube.com/watch?v=Ra8q2SfKeD0

Let your competitors know about a sources sought

https://www.youtube.com/watch?v=n8oNJ0tSyqs

The First Steps in Winning Your First Contract as a Service-Disabled Veteran-Owned Small Business (SDVOSB)!

Posted on by Eric Coffie

Ever wondered how to get started? Here are the first steps in winning your first contract as a service-disabled veteran-owned small business!

FORM YOUR COMPANY

The first thing to start any business is the creation of a company. We don’t teach that here, but this is a necessary step if you want to do business with the government.

With this, if you need help with the creation of your corporation, you can send us an email at info@govcongiants.com and someone will be glad to help walk you through the process of creating a corporation in your state.

However, if you still need more reasons to incorporate your business, you can watch this video entitled, “Six (6) Reasons to Form your Corporation.”

GET REGISTERED

1. Get and register a DUNS Number. 

A Data Universal Numbering System (DUNS) is a nine-digit identification number assigned to identify your business and to track your company’s credit record.

While the SAM database is extending the transition from using the DUNS number to the New Unique Entity Identifier (UEI) in April 2022, you still need to get your DUNS number before registering to the database. 

To obtain a DUNS number, you can either request via this toll-free telephone number, 1-(866) 705-5711, or through this website. 

Note: Getting your DUNS number is absolutely FREE and you don’t have to pay someone to get this done. Also, if your business is in various locations, then you need to get a different DUNS number for EACH business location.

If you want to know more about how to do this, then check this video on how to apply for a DUNS number. 

2. Register in SAM.

The System for Award Management (SAM) is the primary platform used by the government to check businesses dealing with each agency in the federal contracting arena. 

In registering, you primarily need to create an account on the database in order to register or update an entity. Then, afterwards, you can already fill out all the necessary information. 

Depending on the complexity of your business, your registration might take about an hour. It can also take an average of 7-10 business days to process your data because the IRS still needs to validate your  EIN/TIN information.

Other than that, you should update your SAM profile on an annual basis or when a certain change in your business information is made. The updating or renewal process might take for approximately an hour before it becomes active on your SAM profile. 

Note: There are many tutorials on the SAM web page regarding specific questions on how to register. If you want help from a real person, go to this site where you can request a live chat or just call 866-606-8220 from 8am–8pm for FREE.

GET CERTIFIED AS AN SDVOSB

To get certified as a  Service-Disabled Veteran-Owned Small Business, you can visit the verification page of the US Veteran Affairs’ website or you may go directly to the Vendor Information Pages.

Prior to acceptance as an SDVOSB, you will need to create a user account, register online, and submit the necessary document for verification.

Since an LLC is the most common structure type for forming a business, this article is based on the LLC submission requirements. Other business structures will require more or less items, however the information is all listed under required documents for VIP Application.

With this, below are the list of pre-application documents needed to begin processing your application as an LLC:

  • Resume of all owners, directors, partners, officers, and other key personnel
  • Operating Agreement including all amendments
  • Certificate of Formation letter from the Secretary of State
  • Joint Venture Agreement (if applicable)

Note: These are the requirements at the time of writing this article in 2016. 

After you have submitted all the required information for certification, the Center for Verification and Evaluation (CVE) will review your documents and determine if any clarification is needed.

Assuming that you answer all the information in a timely manner, CVE will determine if your business meets eligibility criteria for becoming a Service-Disabled Veteran-Owned Business (SDVOSB).

FEW THINGS TO CONSIDER

This blog post only takes you through the first 2 steps of being a Service-Disabled Veteran-Owned Small Business (SDVOSB) which are getting registered and becoming certified.

If you want to see how we got someone registered as an SDVOSB, then check this video about SDVOSB Vetbiz registration instructions for veterans.

After these first two steps, the other things that you need to consider in winning your first contracts is building your business. These include learning about your customers and your market and building relationships with them. 

If you want to learn about these, then take advantage of our resources down below. You can also join us here at GovCon Giants by visiting our website and other social media platforms or checking the new GovCon Edu where you learn everything about government contracting!

SDVOSB Vetbiz registration instructions for veterans – Eric Coffie

https://www.youtube.com/watch?v=3Ot621Dvitg&t=333s

Eric Coffie interviews $50M SDVOSB, HUBZone, 8a Construction Firm

https://www.youtube.com/watch?v=bnvn4k-L3xY&t=430s

031: Raffa Gibbard & Renona Riddle Brown: Women Entrepreneurs Discuss VA Veteran Employment Track

https://www.youtube.com/watch?v=N9j4o61MddI&t=87s

Veterans HELPING Veterans with “Doc” Wright

https://www.youtube.com/watch?v=zOB2Ig3zdjg&t=248s

Corner the Federal Market as a Veteran-owned Small Business with this Supreme Court Decision!

Posted on by Eric Coffie

Thanks to Kingdomware, you can now take advantage of this Supreme Court decision to help you corner the federal market!

KINGDOMWARE VS. THE UNITED STATES

Kingdomware Technologies, Inc. is a name that every veteran and every veteran-owned small business across the United States may absolutely know.

Why? Because they set the precedent for how the Department of Veteran Affairs (VA) must award contracts according to the Small Business Act, Veteran Benefits Act, and specifically the “Rule of Two.”

WHAT IS THE VETERAN BENEFITS ACT?

The Veterans Entrepreneurship and Small Business Development Act of 1999 established a 3% government-wide contracting goal for contracting with service-disabled veteran-owned small businesses (SDVOSB).

When the federal government continually fell behind in achieving these goals, the Congress tried to correct the situation by enacting the Veterans Benefits, Health Care, and Information Technology Act of 2006.

That Act requires the Secretary of Veteran Affairs to set more specific annual goals that encourage contracting with SDVOSB and veteran-owned small businesses.

The Act’s “rule of two” also highlights that the VA “shall award” contracts by restricting competition for the contract to service-disabled or other veteran-owned small businesses.

To restrict competition, the contracting officer must reasonably expect that at least two of these small businesses will submit offers and that “the award can be made at a fair and reasonable price that offers best value to the United States.”

Still, the Congress provides an exception to the rule. It states that the VA may use non-competitive and sole-source contracts when the contracts are below specific dollar amounts.

WHAT WAS THE SUPREME COURT’S DECISION?

The court ruled that the rule of two is mandatory and not discretionary. Its text requires that the Department of Veteran Affairs should apply the rule of two to all contracting determinations and to award contracts to veteran-owned small businesses.

The Act also does not allow the VA to evade the rule of two on the ground that it has already met its contracting goals or on the ground that the department has placed an order through Federal Supply Schedule (FSS), another contracting vehicle widely used by the government.

Apart from that, the Supreme Court also ruled that the statutory language unambiguously requires that the VA use the rule of two before contract under competitive procedures, with the exception of noncompetitive and sole-source contracts.

What does this mean for veteran-owned small businesses in plain English?

Well, despite having a 3% contracting goal, the Department of Veteran Affairs must use the rule of two when awarding contracts, even when the department will otherwise meet its annual minimum contracting goals.

Thus, with a 2017 proposed budget of $182 billion, there’s a huge slice of pie that veteran-owned small businesses just picked up!

WE CAN HELP YOU!

With this in mind, if you want to learn more about doing business with the government, 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!

You can also check these resources below for your veteran-owned small business!

SDVOSBC Vetbiz registration instructions for veterans – Eric Coffie

https://www.youtube.com/watch?v=3Ot621Dvitg&t=24s

Win Your 1st Government Contract

https://www.youtube.com/watch?v=jqfX2ZBg2Ck&list=PL6-jBNNcc98tilGNNd9Q0BRGttl2egns6

SAM Registration Tips

https://www.youtube.com/playlist?list=PL6-jBNNcc98uGELU5VdhxbF4ZWFqa9OLf

Small Business Tips

https://www.youtube.com/playlist?list=PL6-jBNNcc98s8Wokfs6Gg03bCuthc8bkk