Tag: SAM

Donnie Harris: Retired Contracting Officer with an Unlimited Warrant to Write Billions in Contract Actions

Posted on by Eric Coffie

Navigate the government contracting market with retired military contracting officer Donnie Harris.

BACKGROUND

Donnie Harris is a retired military contracting officer who served two decades for the Coast Guard Office of Chief Counsel, Procurement Law Division, and the Clerk of the Court/Paralegal for the Coast Guard Court of Military Appeal.

Throughout his tenure, Harris participated on various radio shows and trained thousands of military and civilian personnel on topics ranging from preparing a statement of work to updates on the FAR.

Over the course of these years, he managed complex and high-profile procurements totaling $1.2 billion from the acquisition to the pre-award phase. 

After retiring, he was employed by numerous companies that wanted to utilize his procurement experience. 

CONTRACTOR PURCHASING SYSTEM REVIEW AUDIT

What that audit means is when you’re dealing with a cost reimbursable contract, you have to have an approved purchasing system that is approved by the government.

Huge companies like Booz Allen Hamilton use this process in order to ensure that everything, from the reqs and certs to the subcontractor agreements, are dated and signed correctly.

The reason is that if you fail too many audits, then that’s going to go into your past performance.

You may have an outstanding technical solution, but because you’re not able to pass an audit and it is reflected in your past performance, then you’re probably not going to win.

This is why Harris worked with a whole department in Booz Allen that was strictly dedicated to doing this audit. 

SUBCONTRACTING GOALS

Under the subcontracting goal, huge companies that do federal works need to subcontract a certain percentage of their work to small businesses. 

For instance, you’re not going to get a small business who can build a $3 billion bridge. The reasons may include the fact that they don’t have the infrastructure, the resources, and the technical knowledge and expertise to build a bridge.

Still, these small businesses can do some of the legwork, like dirt removal, concrete, and other of the small jobs. This is where the subcontracting goals come into place. 

However, depending upon the requirements, there are firms that really don’t have to adhere to the subcontracting goals, especially if there’s no subcontractors out there that can perform that type of work.

This happens when the vendor or the offerors have done their market research and found that no small business can fulfill the requirements.  

SMALL BUSINESSES ARE MISINFORMED

In Harris’ experience, he had to disqualify a lot of small businesses because they did not even maintain the basic requirements needed. 

For example, in putting solicitations online, they use keywords that only certain companies know. Why? Because this shows the level of expertise that that company has.

Apart from that, contracting officers have specific requirements depending on the contract. So, if you don’t follow any of these, then you can certainly be disqualified. 

For instance, if it is written that you need to use an 8 1/2 X 11 size of paper, then you need to really send your proposal using this size.

These are just the little things people on the government side uses in order to eliminate companies that could really not fulfill the requirements.

THE CONTRACTING PROCESS

The government usually receives two proposals: the technical proposal and the pricing proposal. 

The technical proposal is going to address how you are going to match or apply the requirements. Within this, the agency usually asks for your resumes, technical capabilities, resources, and past performance. 

Meanwhile, the pricing proposal is how are you going to price it. This includes what labor rates you are going to use and what labor categories you are going to use to accommodate these requirements.

Now, let’s say your technical proposal and your price proposal are both acceptable and you won a single award. Then, you will move to the negotiation, the final offer, and the kick off meeting about certain requirements. Lastly, you will start working.  

On the other hand, if it is going to be a multiple award, that’s when the agency will issue different task orders or requests for quotes towards you and other companies in the pool. 

What will happen in this kind of award is that you will price every time there’s a task order and that agency will choose the lowest bidder.  

RESOURCES

If you want to learn more on how to navigate the government contracting market with retired military contracting officer Donnie Harris, 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!

011: Donnie Harris – Unlimited Warrant to Write Billions in Contract Actions

https://www.youtube.com/watch?v=R_H15m0jKgY

MasterMind Monday: Get in Front of Your Federal Buyer and Win!

Posted on by Eric Coffie

In this blog, we list our new MasterMind Monday highlights for you to get in front of your federal buyer and “win” in your meeting!

SET YOUR GOALS THIS 2021!

As the year 2021 starts, it’s also best to set your goals as early as now.

Also, aside from just wishing it on the stars, write these down and increase your odds of success.

You can write it on your notebook, on your phone, and anywhere else where you can see it. 

Also, if you think you need to change something in your goal, then you are free to change things. You can restructure it depending on your preference. Just be committed about what you’re doing and keep all your goals in mind. 

“When we start to process this stuff in our mind, we make a shift and we look at what we’re doing and we start doing things a little bit differently to create the lanes and the pathways, so these things can happen.”

LOOK AT CURRENT RULES AND REGULATIONS

Be your own pundit. Do your own detective work and make a guess. What do you think is gonna happen in your marketplace?

Consider what President Joe Biden said:

“Remember, our future cannot depend on the government alone. The ultimate solutions lie in the attitudes and the actions of the American people.”

This is where government contractors play a tremendous role. If you have seen the inauguration, the organizations that provided the scaffolding and helped in everything in the inauguration were government contractors. 

We ushered in that change too. We, as a community, were represented right there on that stage, whether it was your company specifically or not.

In terms of the new administration, remember that everyone is also trying to figure everything out. So, while new appointees are figuring certain rules and regulations that might matter to you, do your own research as well. 

There’s new rules coming out all the time that you’ve got to be aware of, so stay on top of these and remain compliant.

It is also recommended for you to follow budgets and agency forecasts. Luckily, these are published and can be seen by the public.

So, look at the data that are showing up in these reports and analyze your business strategies. Do you need to pivot? What companies are getting all the work and how you can work with them?

CHANGES AND OPPORTUNITIES THAT YOU SHOULD CHECK

1. LPTA

If the Lowest Price Technically Acceptable (LPTA) contracts are making you poor, then better check the recent changes made in the rule. 

Analyze why LPTA has been hurting your business and get to know the new rules. 

2. Pandemic Response

With the COVID-19 pandemic still terrorizing the world, you might need to check what are the federal government’s requirements related to pandemic response.

You might have the needed products and services that can help, so don’t just wait to quote something you see on SAM or anywhere online, go directly to the agencies needing it the most. 

Besides, what’s the worst thing that can happen aside from them saying no? So, call them up and say that you wanted to help. 

3. Telework and Virtual Outreach

The federal government is also doing virtual outreach, so take advantage of these activities. Find out the next one by contacting small business specialists and other decision-makers. 

Also, remember that most people are doing telework right now, so call your potential government agencies and provide them something of value while also building relationships with them. 

4. CCMC

Those of you who are in the IT industries and those who are doing business with the Department of Defense should already be tracking your Cybersecurity Maturity Model Certification (CCMC).

You should also learn more about this matter and pay attention in order for you to become compliant. 

5. Diversity Inclusion Trainings

The prohibition on diversity inclusion training has been rescinded, so those that are developing these kinds of training are once again welcome and encouraged in the federal agencies.

FEDERAL CONTRACTING IS A RELATIONSHIP GAME

There’s no such thing as doing business with the government. There’s only doing business with people.

Remember, there’s a real federal human behind every federal agency who puts everything on the line when they choose you.

In fact, it is recommended for you to reach out to your local Procurement Technical Assistance Centers, your target agency’s Office of Small and Disadvantaged Business Utilization (OSDBU), and other government decision-makers. 

Apart from that, why not work with other government contractors? If you are a small business, you really want to expand your network and work with primes. 

Consider that these primes also need to reach their subcontract requirements. They need subcontractors that are familiar in a specific facility and that can provide the product or service that they need to fulfill the overall contract. 

RESOURCES

In doing business in the federal marketplace, you should learn to be a detective. Track the changes in the govcon policies and analyze how these affect your business and the future.

If you want to learn more about how to get in front of your federal buyer, then check the full Mastermind Monday video with Judy Bradt. 

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

How to get in front of your Federal Buyer and “Win” your meeting

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

Sources Sought: Design Build Construct Parking Structure

Posted on by Eric Coffie

Project magnitude is between $10,000,000 to $20,000,000. Potential Offerors must be registered in the System for Award Management (SAM) to be eligible for an award (See Internet Site https://www.sam.gov/portal/public/SAM/). Potential Offerors must also have a current Online Representations and Certification Application on file with SAM.

Description of Services Project 612-165 – Design Build Services – Construct Parking Structure – VANCHCS – Martinez, CA. The place of performance is at 150 Muir Road, Martinez, CA 94553. The Contractor shall furnish all labor, materials, equipment, transportation, supervision, administrative support, and any necessary professional engineering services required for the Design build effort IAW SOW. This project is to construct a 350 spaces parking structure on the Martinez Campus.

  • Product Service Code: Y1LZ – CONSTRUCTION OF PARKING FACILITIES
  • NAICS Code: 236220 – Commercial and Institutional Building Construction
  • Place of Performance: VA NORTHERN CALIFORNIA HEALTH CARE SYSTEM , 94553 USA

Responses are due not later than Sep 18, 2020 10:00 am PDT. Full details via beta.sam.gov

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

Lourdes Martin-Rosa: Women-Owned Small Business Advocate

Posted on by Eric Coffie

Featured on over 700 media outlets advocating for women-owned small businesses, Lourdes Martin-Rosa shares her experience leading to that success and her advice for small businesses. 

BACKGROUND

Lourdes Martin-Rosa established her company Government Business Solutions in 2003 with the goal of providing innovative and solutions-driven consulting services and training to thousands of small businesses in terms of dealing with the government marketplace. 

While managing her business, she had also served as part of the White House Small Business Taskforce, spearheaded the development of the American Express OPEN for Government Contracting & Grow Global programs, served as a WIPP’s National Partner, and partnered with The LEAD Program, Inc. in 2017.

Through her advocacy, she received an Award of Excellence from The White House Senior Advisor in 2016 and was featured in over 790 media publications including the New York Times, MSNBC, CNN Money, the Washington Post.

THREE WEBSITES THAT YOU SHOULD USE

1. Agency’s Website

The first thing that you need to look at is the procurement forecast of your target agency. Different agencies have their different procurement forecasts; this is why you can only look for this information in that agency’s website. 

The SBA has mandated that procurement forecasts should be posted by October of the following fiscal year. This includes when they are going to purchase it and or if they need businesses within a socio-economic category. They also include some of the contact information in this forecast list including the email address and the phone number of the contracting officer. 

“So the procurement forecast, basically, every agency has one and it lets you know what they’re going to be purchasing.”

2. GSA

You will then visit the General Services Administration’s website to create your pipeline and capture plan. 

Because this website acts as a marketplace for vendors and government agencies, this website contains thousands of firms of different industry and socio-economic categories. With this, you can have a look at their products and services and their pricing models. 

However, Lourdes do not encourage small businesses to become GSA schedule holders to get this pricing catalog from the website because you can get this information directly without having to follow the GSA’s approval process for vendors. 

3. SAM

Lastly, you should visit the System for Awards Management’s database to look for contracting opportunities. 

The SAM website is where you first registered your business in the federal marketplace. This is also where you can get various contracting opportunities after the FBO has been moved to SAM. 

 

Due to this, you can basically do an advanced search on various contracting opportunities as well as receive automatic bid notification when an opportunity in your particular NAICS code or product service code is open. 

Now in getting updates, only focus on your industry because there are hundreds and thousands of opportunities on the SAM database daily. 

ADVICE FOR SMALL BUSINESSES

Lourdes Martin-Rosa encourages small businesses to go to networking events and talk to the decision makers and other small businesses.

“Just tell them what you do and how you could help them to fill on their mission and goals.”

In doing this, you have to study the agency’s or that person’s background first so that you can strongly build a relationship with these people. 

Then, when you also need to talk to someone within your target agency to educate you about what that agency’s needs, Lourdes recommend communicating with small business specialists. 

“Those all business specialists are advocates. All they do all day long is trying to find small businesses to fulfill on the agency’s contracts, mission and goals. These are the people you want to talk to.”

Also, if you find an opportunity that you cannot do alone, you can team up with other small businesses within your industry. 

“We don’t have all of the resources and we shouldn’t try to be an IBM or Lockheed Martin. What we need to do is learn to team with each other, learn to value each other’s resources and what, and then fulfill that agency’s mission as a team. And that’s the powerhouse of small business.”

But in doing this, you should also choose the right team partner that has the same values and goals as yours. You can work with your past business partners or you can get recommendations from small business specialists and contracting officials. 

Still, in doing the latter, you should make sure that your prospective partner has a good background by looking at their website or visiting USAspending wherein you just search for the firm’s name and all their past performance will appear. 

RESOURCES

If you want to watch the full video of the interview with Lourdes Martin-Rosa as she shares her advice for small businesses as well as her experience leading to her advocacy, then be sure to click the link down below.

033: Lourdes Martin-Rosa – Spearheading the American Express Open, White House Small Business Taskforce and more

https://govcongiants1.wpengine.com/podcast/lourdes-martin-rosa-spearheading-the-american-express-open-white-house-small-business-taskforce-and-more/

https://www.youtube.com/watch?v=9bYp1Q_-qQ4&list=PL6-jBNNcc98vTBvNhFYfUTeH0k-Vx2VBH&index=30

Choosing the Wrong NAICS Code can Cost You Millions!

Posted on by Eric Coffie

What is a NAICS code and why do you need one? Even further, let’s answer the question on why choosing the wrong NAICS code can cost you millions! Read this article to learn more. 

WHAT IS A NAICS CODE?

A NAICS code is a six digit code used by federal agencies to determine the products and services that they want to buy. It is also used by small businesses to identify products and services that they want to sell to the government. 

You can view the NAICS code list from the U.S. Census Bureau or by contacting the bureau through 1-888-756-2427 or on their email address, NAICS@census.gov. You can also visit NAICS.com.

Now, you need these codes when you get ready to register in the System for Awards Management database and when you apply for some of the small business programs. 

With this, you need to make sure that your NAICS code is appropriate for your business.

For instance, if you’re under the construction industry, you need to look for the appropriate keyword for your products and services. You may not be providing sanding services, but you can be under the  New Single Family Housing Construction section. The key is to be specific on what you provide. 

Most importantly, consider that you can have multiple codes, depending on the products and services that you provide. Check this video entitled “Primary vs Secondary NAICS Code” that we have on our YouTube channel. 

WHAT IS A SIZE STANDARDS TABLE?

Now, why is choosing the right NAICS Code important? Let’s answer this question by pulling the Small Business Administration’s Size Standards Table. 

So, this table determines your eligibility to be a small business and this corresponds to the NAICS codes that you use.

This standard is also divided into two categories: manufacturing which is determined by your number of employees and contract work which is determined by millions of dollars.

So, how does this break down? If you are under the contract work category, you will be provided with annual gross receipts over a three year span that you should not exceed. Same thing with the manufacturer category where your employees cannot exceed 500 employee average over a three year span. Still, consider that the number depends on your NAICS code. 

WHY SHOULD YOU CHOOSE THE RIGHT NAICS CODE?

So, why do you need to check the Size Standards Table in choosing your NAICS code? 

Well, let’s say, you are under the NAICS code 238320 which is for Painting and Wall Covering Contractors and your secondary NAICS code is 236015 which is for the New Single Family Housing Construction. 

This means that your cap to be eligible as a small business is $15 million a year over three years or a total of $45 million in the three year span. Once you exceed that number, you are no longer eligible to be a small business.

However, you can change your primary NAICS code whatever you like.

In the case above, you can change the primary code to be 236015 and the 238320 is the secondary one. This way, your cap would be $36.5 million per year on average which over three years would be a total of $110 million dollars. That’s a difference of $60 million dollars!

RESOURCES

So, that is why choosing the right NAICS Code for your business is so important prior to your registration because once you choose the wrong one, you might really lose a potential millions of dollars in revenue. 

With this in mind, if you want to learn more on how to navigate the federal marketplace as a small business without losing millions of dollars, then check the resources below. 

You can also join us here at GovCon Giants or check the new GovCon Edu where you learn everything about government contracting!

Choosing the wrong NAICS code can cost you millions!

https://youtu.be/BAeWQix2sM4

https://govcongiants1.wpengine.com/wp-content/uploads/2018/12/Choosing-the-wrong-NAICS-code-can-cost-you-millions.pdf

Primary vs Secondary NAICS Code

https://www.youtube.com/watch?v=kpgW_N-Vg7k&t=22s

Public Sector Contracting versus Private Sector Contracting

Posted on by Eric Coffie

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!