Tag: sba

The SBA 8a Program Transitional Years Explained

Posted on by Eric Coffie
The 8a program is a business development program meant to help people launch, grow and graduate into a successful small business firm. They provide you with the tools and knowledge that you need in order to compete for contracts in the open market.
In short terms, the 8a program will assist you in growing and succeeding as a small-business. They do this by including “transitional years.” Transitional years are the years where you must do work outside of the federal government.
These transitional years serve as steps to slowly push you to find work outside of the 8a sphere. Therefore, by the end of the program, a large chunk of your work must and will derive from elsewhere.
This is good news because when the program ends, you are still in business and can succeed on your own.
Beginning your fifth year, you must start demonstrating a mixture of federal government and non-federal work. The range starts at 15%. By your final year, 55% of your revenue must derive from business outside of the 8a sphere.
If the company fails to comply with these guidelines, they are subject to suspension from the program for up to 1 year. This poses a challenge for budding entrepreneurs who have no private or commercial contracts outside of the federal government.
However, if you follow the guidelines, you will be in a position to continue doing business without the 8a program.
Learn more about 8a certification requirements and how it works via this United States Army Corps of Engineer presentation.
To learn more about government contracting visit the GOVCON GIANTS YouTube Channel.

All About the 8a Business Development Program

Posted on by Eric Coffie

The 8a Business Development Program is a government program which aims to even the playing field for businesses owned by socially and economically disadvantaged individuals. The program offers a myriad of assistance to entities that have 51% control by socially and economically disadvantaged individuals. It is a vehicle that aids such disadvantaged entrepreneurs to gain access to the economic mainstream in American society, mostly when it comes to the aspect of government contracts. Government contracts can be quite elusive and frustrating; hence, such programs exist to give the aspiring entrepreneurs the solid footing they require to navigate the waves of the contract business.

Going by the name, the program aims at providing business development support to upcoming businesses in various fields such as Training, Financial assistance, Mentoring, Surety bonding, Procurement assistance, Business counselling, and provision of other technical and management support. Before we delve into the deep, let’s look into some of the perceived benefits of the program.

Benefits of 8(a) Business Development Program

Taking part in this program comes with some benefits such as:

Receiving sole-sourced contracts for business capped to $4 million for goods and services. For a manufacturing business, the business contracts get capped to $6.5 million. While the program equips businesses in both institutional and competitive know-how, it encourages them to involve themselves in competitive acquisitions.

Businesses registered with the 8a program can team up and bid on government contracts. By combining forces, companies can perform or service huge contracts through overcoming contract bundling- the effects alluded to combining two or more contracts.

It’s also worth noting that contracting officers have their quota to meet for their set-aside bonus. Whether a business opportunity has a declared set-aside or not, your business will still enjoy a competitive advantage since the government is mandated to set aside at least $25 billion towards small and disadvantaged businesses. As such, it gives the contracting officers the chance to work on your entity aimed at hitting their quota.

By business entities registering for the program, they can get exposure from other seasoned business entities when it comes to learning the ropes. The program achieves this through the Mentor Protege Program.

Since the program certification lasts up to nine years, your business has the potential of earning up to $100 million or five times the SBA (Small Business Administration) limit. Most business entities hit this target during that period.

 

Requirements For The 8a Program

The first step is usually associated with potential candidates checking out their Small Business Administration‘s (SBA) size standards. It doesn’t matter the nature of your business, there is always a North American Industry Classification Standard (NAICS) code associated with your business. Your SBA will determine the size of your entity by your workforce or your annual revenues. For instance, if your firm deals in manufacturing machine tools accessories or machine cutting tools, its NAICS code will be 333515. For the entity’s consideration as a small business, it must have less than five hundred employees.

The next requirement centers on the business owner. According to the stipulated rules of the 8a Program, the entity applying for the program has to be 51% owned by people who are socially and economically disadvantaged. Further to this, they have to take part in the daily operation and planning of the business. The question stands. What does it mean to be economically and socially disadvantaged?

Simply put it means;

Individuals who have experienced or been a subject of either ethnic, cultural, or racial prejudice within the American society due to them identifying or subscribing to particular groups without regarding their individual qualities. Further, their social disadvantages must emanate from factors beyond their control.

Such groups of people under this category would include; African Americans, Hispanic Americans, Asia Pacific Americans, Native Americans, Sub-continent Asian Americans, and any other group of individuals classified by the SBA from time to time.

Under the social disadvantage bracket, we have; the physically handicapped, gender affiliations, Being a long term residence in a placed ascribed as being isolated from the mainstream American society, and any quality that makes one a target for discrimination or prejudice that is beyond one’s control.

The second stage highlights the economic disadvantage part which states that;

Socially disadvantaged individuals whose ability to take part in a free enterprise system hasn’t been successful due to lack of credit opportunities or diminished financial capabilities in comparison to others who are in the same line of business or who aren’t disadvantaged socially.

To qualify for the program, one has to meet the government programs socio-economic requirements as mentioned above. Other factors that are taken into account to be eligible for the program has to do with personal income, net worth and one’s value in personal assets as outlined below:

  1. Have a personal net worth of $250,000 or below
  2. Have an adjustable three-year gross income of $250, 000 or less
  3. The owner’s assets should be $4,000,000 or lower.

 

Requirements for Registration

Before registration, each entity or firm needs to take an online assessment evaluation to gauge its suitability for the course. The first segment of the course explains the program in detail, which culminates in a self-assessment eligibility test. The test comprises of simple yes and no answers aimed at evaluating the degree to which one’s entity meets the stipulated requirements of the 8a program. In the eventuality that your firm doesn’t match the stated requirements, you’ll get directed to the SBA resource tasked to aid you at that time.

The application process typically gets done electronically. If, however, you would like to do it on paper, you are required to get in touch with your local SBA District’s office to obtain the necessary application papers.

 

Conclusion

It is imperative for local firms or businesses that view themselves as economically and socially disadvantaged to register for such development programs to take advantage of federal allocations. Despite the registration process being hard, the benefits remain to be quite immense and would boost one’s business to the next level keeping in mind that such allocations will always be forthcoming.

Break the Government Contracting Code Using an OSDBU, Small Business Specialist!

Posted on by Eric Coffie

The OSDBU is where you find your small business specialist, but who is this person and what is the use of this office? Read this blog to learn more!

WHAT IS AN OSDBU?

Each federal agency has an Office of Small and Disadvantaged Business Utilization (OSDBU) that acts as a liaison between the small business entity, the SBA, and the government buyer.

They help prepare you to do business with that agency and connect you within their network of opportunities and to their organizations and people that help further your particular mission.

WHY WOULD YOU NEED AN OSDBU?

1. Gain access to the forecast list. 

A forecast list is an agency’s projection of all upcoming projects. This is where an agency puts all the costs, the contacts, any of the products and services they wanna buy in the upcoming fiscal year. So, why not ask about this list directly to that agency’s OSDBU?

To learn more on how to find what agencies are buying using a forecast list, then check this video that we created. 

2. Win contracts and be a subcontractor.

The small business specialist would likely know some of the players at that agency and who’s winning the contracts on a regular basis. 

3. Learn about non-public bid opportunities.

There are tons of bid opportunities that don’t reach the public and if you want to know about this, you better contact that agency’s small business specialist.

4. Find out who can help you grow within that agency. 

As the liaison between the small business entity and the government buyer, the OSDBU will be able to tell you where you can go.

This way, you can introduce your company and your service to the direct people who need what you offer.

HOW DO I FIND AN OSDBU?

1. Type the agency’s name and add OSDBU. 

You can actually just go to any search platform like Google or visit usa.gov and type the agency’s name and add the keyword OSDBU. 

Afterwards, you will be presented with that agency’s website and OSDBU page. Just then, you can navigate their page and learn about their tools and resources, services, and contact information. 

2. Call the Washington headquarters. 

You can just actually call the Washington headquarters and ask the person at the headquarters for the contact information for the particular OSDBU office in your territory or region.

WHEN SHOULD I CALL AN OSDBU?

Immediately after you’ve built your target market list, you should call an agency’s OSDBU because at that point, you already know who buys your products and services. What you just need is that agency’s forecast list of upcoming projects that you can do. 

Aside from that, you can also call them when you’re actually ready to start doing contracts because that’s when you can actually start making connections and on roads within that particular agency.

WHAT TO DO IN MEETING AN OSDBU?

Before the Meeting

The things that you need to prepare and bring to the meeting is your capability statement, that agency’s forecast list to discuss specific opportunities, a list of potential prime contractors that you can connect or subcontract with, and any document or certifications that highlight what you do.

During the Meeting

What you should expect during the meeting is that the quality of the OSDBU person depends on their level of experience.

Apart from that, expect that this person will give you insight on how that agency buys goods and services and on how to sell these to their agency, as well as provide you directions in making connections with contracting officers, officials, and other contractors within that agency.

On the other hand, you should not expect that that person will remember you once you leave, be impressed with your capability statement, or to give you a contract and a referral.

“Just remember that people are people. They’re human beings first. You’re not gonna resonate with every and each individual that you meet. However, the point is to make a connection and to start taking steps towards that direction.”

After the Meeting

After that, you need to take into consideration all of the recommendations of the small business specialist and make a follow up after taking the actionable steps that they recommended.

Also, you want to stay on top of any specific forecast list projects coming out in the near future and be part of any particular industry event.

WHAT IS ERIC’S EXPERIENCE WITH AN OSDBU?

More than five years ago, we were doing a lawn maintenance contract at Homestead Air Force Base. 

Now, before being awarded that contract, we actually went to meet with their OSDBU person and let them know about our services and what we were doing. However, that person just told us to join SAME and participate in the monthly luncheons at the SAME events. 

Well, a few months later, that small business specialist called us and let us know that the particular agency who awarded the contract was not happy with the contractor, so they asked us if we could step in and take over their existing contract.

Well, within probably a three to four month window, we had negotiated a contract and we ended up getting the entire landscape maintenance contract over at Patrick Air Force Base. 

So, that’s the story of how connecting with the OSDBU and a small business specialist could yield some really significant results.

With this, I’ll leave this quote by Zig Zigler:

“It was character that got us out of bed, commitment that moved us into action, and discipline that enabled us to follow through.” 

RESOURCES

Again, you should only trust the process. Go out there, get the target market list, schedule meetings with the OSDBU, and start making yourself known within a government agency.

With this in mind, let me help you become an incumbent and achieve your goal and your lifetime dream of earning all that you can in the federal marketplace.

Join us here at GovCon Giants by visiting 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 to learn more about the topic above:

Break the Government Contracting code using an OSDBU! Small business specialist!

https://youtu.be/uvZzGzwFxvo

https://govcongiants1.wpengine.com/wp-content/uploads/2018/11/Break-the-Government-Contracting-code-using-an-OSDBU-Small-business-specialist.pdf

 

Where Do I Start? List of GovCon Videos to Watch!

Posted on by Eric Coffie

Working in the federal marketplace can be a journey, so to help you better learn where to start, GovCon Giant made this list of videos to watch for you to follow!

THIS IS OUR STORY

Before we dive into some lessons, find out who is Eric Coffie and what is our mission here at GovCon Giants.

Listen to Eric Coffie’s 2020 Challenge video and learn our story and see why we believe that every small business on the planet should be doing government contracts!

“My name is Eric Coffie and it’s my mission in life to help small businesses achieve overwhelming success in the federal marketplace… I know that by creating an army of excellent contractors that operate ethically, we’ll provide the optimum value and best price for the government, we can curb this deficit spending trend, and start solving some of the life’s real challenges that this country faces you.”

BUSINESS BASICS

1. Learn the basics of government contracting. 

Before you start your company, learn the marketplace first. Remember, the government arena is different from the commercial marketplace.

With this, we give you a little summary of the fundamentals. This video will give you an overview of the basic building blocks to successfully win federal contracts.

2. Form your company.

Before doing business with the government, you need to incorporate your business. Remember the U.S. is a capitalistic society, even if you don’t have a tangible business, get incorporated now.

Still needs more reasons to incorporate? Watch this video: Six (6) Reasons to Form your corporation. 

3. Get your 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. 

Want to know more about how to do it? Check this video on how to apply for a DUNS number. Please note that getting your DUNS number is absolutely FREE and you don’t have to pay someone to get this done.

4. Choose your NAICS code. 

A North American Industry Classification System (NAICS) code is a six-digit long code that helps classify the types of products and services that you supply.

The government actually permits having multiple NAICS codes, if you provide a wide variety of supplies. However, be careful in choosing because choosing the wrong NAICS code can cost you millions.  

5. Register in SAM.

The System for Award Management (SAM) database is a platform to properly represent your business in the federal contracting arena.

Depending on the complexity of your business, your registration might take about an hour and it can also take an average of 7-10 business days to process it in the database. You can check more information about the SAM.gov database here. 

If you want to learn more on how to register, then check these SAM Registration Tips. We also have a registration playlist in both Italian and Spanish language. 

WINNING TIPS AND STRATEGIES

1. Consultant or Contractor?

Now, there are two paths that you can take… be a consultant or a contractor. A consultant is a person who represents a firm and helps you win contracts, meanwhile a contractor is the company that actually does the work with their team. 

If you want to be a consultant, then check this video on how to get started as a consultant or check this playlist on consulting.

2. Where to look for contract opportunities?

After you create your company, you’re probably looking for a few ideas of how to make money using the power of the government. Here are a few places to start: How to make money online – no sales required.

3.  Are you eligible for these?

The federal government allocates 23% of all contracting dollars to small businesses. That’s a whopping $156 billion dollars!

So, if you have a woman-owned small business, a service-disabled veteran-owned small business, a small disadvantaged business, or a Historically Underutilized Business, then check these small business programs!

You can also check our playlist about the 8a program which offers a broad scope of assistance to small firms.

BUSINESS ADVICE

1. Business is like a jungle. 

Once you start learning how to make money, be careful because there will always be people who will try to take you down. Business is like a jungle, as they say. 

“They’re out there and they’re looking to take you down. Again, they’re coming from the bottom, they come up from the top, and if you can get through that jungle and you could make it on the other side, then you’re going to be successful in business. Just keep in mind that they’re all there to stop you from your pursuit of getting out the other side.”

2. Pain is positive. 

Scared to say the wrong things? Afraid to make mistakes? Faced with mental struggles? Our life can be compared to evolution and adaptation. Remember, the strong survive and the weak shall perish. Learn more why I say that pain is positive and helps you ascend to new heights!

3. Fair and failure are cousins. 

If you think that everything is too much for you, understand that fear and failure are cousins. These two are causing the death of many good ideas that never materialized. So, learn how to handle fear in this video.

4. Success does not discriminate. 

Don’t worry about the naysayers, the doubters, and the haters because regardless of your background, they will always say something negative towards you. 

Remember this, all of my rich friends started with no experience. Some of them are former criminals, most have no college degree, and little formal education. But they are all successful. Why? Because success does not discriminate.

GET INSPIRATION FROM US!

Starting is not easy, but it is necessary. Throughout the journey towards success, you will face a lot of setbacks. With this, you can learn from the personal philosophy that I use to develop a mental foundation.

You can also learn from these techniques that I use to become the smartest persons in the room.

Consider that all of those things that you are feeling right now are normal for a business owner, but you should not focus too much on these matters. 

If you want inspiration, you can check the story of how I leveraged the techniques above to land more than $1.5 million in contracts.

You can also check other GovCon Giants who have already gained success in the government arena through our podcast.

“I was born in a very poor community down in Miami, Florida… It was a predominanty black community and I grew up and we saw guns and knives, and we saw prostitution and drugs. And you know what? I chose a different path for myself. I chose a different way… I started a business, I started a company, I jump into real estate, I bought property, I made investments. And so, I’m telling you that I’m living proof of it.”

10 Things they don’t want you to know about Government Contracts!

Posted on by Eric Coffie

Let me put you up on the game when it comes to government contracts.

JOIN THE GAME OF GOVERNMENT CONTRACTING!

There are some things in life that we know to be true; then, there’s also some stuff that your parents or teachers didn’t teach you at home or in school.

These things are how to make money and how to take advantage of the largest economic system in the world.

To give you an idea, the United States (US) is the greatest creator of personal fortunes and wealth in the world, by all accounts. But, you can’t take advantage of its benefits if you don’t know how to make money out of it. 

This is why we have government contracting. But what really is it? To give you more ideas, take a look at these 10 things you probably don’t know about government contracts.

10 THINGS YOU SHOULD KNOW!

1. These places are the richest.

The largest source of wealth creation in the US has some of the  richest zip codes in the country in terms of household income. These places are mostly behind Wall Street, Silicon Valley, Washington, D.C. and its surrounding area. 

2. This stuff is easy.

In this marketplace, we are basically dealing with different agencies in the government, so all of the forms and documents are standardized. 

The whole system and process is standardized to make dissemination of the information uniform. If they wouldn’t do that, it would be impossible to facilitate millions of contracts yearly.

So, if you want to look on some forms that you may use in government contracting, just look at these standard forms.

3. Anyone can do this. 

You can easily start doing business with the government, no college degree, no federal certifications required.

Consider this, my college friends are not millionaires and my millionaire friends don’t have college degrees. So, better start grinding right now. 

4. You don’t need money to start.

Everything you need to start government contracts is at your disposal. The only thing you need is to  do is start communicating with your target clients and build relationships with them. 

5. They owe this to you.

Chances are, the government probably owes this opportunity to you because their purpose is to basically help the people and recycle the money. 

This is why, small business programs are created to try to extend a helping hand to the less fortunate. Now, it’s your time to claim your stake of this trillion dollar behemoth!

6. No agency is meeting all the requirements.

The government is ensuring that they are providing opportunities for small businesses, but according to our research and data from sources across the web, they are not entirely hitting their goals.

To give you an idea, each government agency has their scorecards in which they check the boxes if they have provided contracts to different small businesses. 

However, because some small businesses are within two or more programs, that agency will be able to check more of their boxes, which is essentially against what their goal is. 

And because of this, large companies have continuously been taking small business contracts for many years and continue to do so, if there will be not enough small businesses to participate.

7. They are not bidding at the highest levels.

With nearly 50% of all contracts going to 1 or no bidders; large primes are using specific contract vehicles like GWAC, STARS II, MATOC, and SATOC to avoid bidding open market. 

You can get into these vehicles too, you can just learn the techniques and you can do the same.

8. The government prints money.

The government spends money every year just to make sure that government projects and contracts are fulfilled. In fact, Obama spent $8 trillion during his term and Trump may have spent more than that. 

The money is going somewhere, so why not let it flow down to your coffers?

9. Grants are good, contracts are great.

People want grants, but these are only good for one time and don’t create a recurring revenue stream. 

Contracts, on the other hand, can last anywhere from 1 to 5 years with $100M cap. Besides, more than 4,000,000 contracts are made each year.

10. Huge companies participate in this game.

Fortune 500 companies are also doing business with the government. Why? Because government contracting is lucrative and these companies realize the consistency and stability of a recurring revenue stream.

START YOUR GOVCON JOURNEY NOW! 

Now, of all these things we tell you, don’t you want to be part of this marketplace? Remember, this market is wide open for hungry businesses looking to capitalize!

So, if you are like this and want to capitalize what you have, then we have a handful of resources to help you. Just click the resources below. 

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

Where do I start?

https://www.youtube.com/watch?v=NpoNXwhZDuw&list=PL6-jBNNcc98vgItLSmWLW2nZfNv9gOFeJ

Win Your 1st Government Contract

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

Small Business Tips

https://www.youtube.com/watch?v=yXNLfpNOmgg&list=PL6-jBNNcc98s8Wokfs6Gg03bCuthc8bkk

Bid Opportunities

https://govcongiants1.wpengine.com/blog/bid-opportunities/

Govcon Tips

https://govcongiants1.wpengine.com/blog/govcon-tips/

GovCon Giants Podcast

https://govcongiants1.wpengine.com/podcast/

Life and Business is Like The Legend of Zelda

Posted on by Eric Coffie

Here’s why the game “The Legend of Zelda”has something to do with your business and your life!

LESSONS I’VE LEARNED FROM PLAYING ZELDA

Zelda is one of the games that children used to play before. In the game, for you to get to the other side of the door and go to the next level, you need to find a key. 

However, finding the key is not easy, you might need to read a clue, turn a rock over, look for hints, and other things. 

Business is much the same way. You don’t worry about what happens after you get into the other side of the door or to get on to the other phase of your business because your main focus as of now is to open that door. 

We should look at business in this manner: that the larger vision is to accomplish the mission. If you need to do several tasks in order to accomplish it, then do it.

Still, remember that the tasks and activities should not set you back or stop you. Rather, it should move you towards your goal. 

“You would continue until, you know, you found that key to get to the door. And because you knew that that was just the next step and your journey to reaching your goal of going to the next level.”

FOLLOW THE AWEME PHILOSOPHY

1. Associations

Who are you connected to? Who are you around? Who are you associated with?

In order to gain success in life, you need to surround yourself with highly motivated successful types of people who will expand your ideas, beliefs, and confidence.

2. Work

Successful people work around the clock, but they don’t consider themselves workaholic. Why? Because they have a burning desire and bigger purpose that drives them to continue working. 

“I know someone who works seven days a week for 20 years… Right now, this person continues to work no less than six days a week even though they’re already a multi-millionaire and they continue making millions of dollars. They, in fact, what they did was, they actually just renewed their purpose and their goals and now they’re no longer financial base, they’re more achievement base.”

3. Effort

It is true that once you put value on something you do, you put maximum effort in achieving it. So, how hard are you really trying right now?

Remember, the guy who chose to dedicate his effort to become a licensed contractor becomes the master. Meanwhile, the other person who does not put in the effort becomes the servant of the master. 

4. Money

You should be conscious about how you spend, lend, and borrow money. In order to grow a healthy thriving business, you need reserves because if you spend everything you earn, you are basically the employee and not the employer. 

“You know when I jumped into construction, I could not understand why these older people were working for me? I didn’t really get that. Well, what I found out was, you know, they can’t save money. You know, I don’t know where their money was going but for whatever reason, you know everything that came in their hands had to go right away. And so since they couldn’t save money, they end up having to work below younger people who were more financially responsible.”

5. Education

We should constantly seek out new ideas from books, podcasts, and other successful people. We should also put value only to those who are experts in this marketplace. 

Remember, if you at least spend your effort and time learning about new things, you’re gonna be 90% smarter than everyone else out there. 

With this, here’s a quote from Jim Rohn:

“My millionaire friends don’t have college degrees. My college friends don’t have millions. Formal education will make a living, self education will make you a fortune.”

RESOURCES

If you want to gain more perspective on this concept and its effect in your life and business, then be sure to click the resources down below. You can also visit the GovCon Giant website and social media platforms or the new GovCon Edu where you learn everything about government contracting!

Is your personal philosophy, poor me? Find out how to change that.

https://www.youtube.com/watch?v=T1fdnEAwOow&feature=youtu.be

Success Habits

https://www.youtube.com/watch?v=e_oZkcwF6tw&t=2137s

Be the Next Chobani Yogurt, SpaceX, and the Like!

Posted on by Eric Coffie

The US government is taking a chance on people like you to be the next Chobani Yogurt, SpaceX, and the like!

CHOBANI YOGURT AND HAMDI ULUKAYA

Hamdi Ulukaya came from a family who raised goats and sheep and made cheese and yogurt in a small Kurdish village in Turkey.

However, after getting in trouble with the Turkish authorities for writing articles sympathetic to the Kurdish rights movement, he was hauled in for questioning. So, he decided that it might be a good idea to leave.

Ulukaya, then, arrived in the United States in 1994 with only $3,000 in his pocket, speaking no English and no family or friends. Still, over the next decade, he finished his studies, worked on a dairy farm, and started a modest feta cheese business.

Then, he continued to gain success when he spotted an advertisement with the statement, “Fully equipped yogurt plant for sale,” on it. The yogurt plant was owned by Kraft foods which decided to get out of the yogurt business. 

With no money, he managed to get a regional bank and the Small Business Administration to split the risk of a million-dollar loan to pay the $700,000 price for the plant. This helped him to put Chobani in business and to also hire his first five employees, four of whom had been let go by Kraft. 

Today, Ulukaya is a billionaire and Chobani is carried by every grocer in the US, providing not just yogurt but also other products.

“If you’re right with your people, if you’re right with your community, if you’re right with your product, you’ll be more profitable, more innovative, and you will have more passionate people working for you and a community that supports you.” 

SPACEX AND ELON MUSK

Elon Musk was born in Pretoria, Transvaal, South Africa to a Canadian mother and a South African father. And to avoid the mandatory service in the South African military, he moved to Canada.

Then, from Canada, he migrated to the United States to study business and physics in the University of Pennsylvania. Shortly thereafter, he went to Stanford University in California to pursue a PhD in energy physics.

However, he dropped out and started Zip2 Corporation, an internet startup that he created with his brother. It was later purchased by Compaq for $307 million. 

Then, in 1999, he also co-founded X.com, which through acquisition led to the creation of PayPal. In 2002, it was acquired by eBay for $1.5 billion, which Musk owned 11 percent at that time. 

Using his fortune, Musk then founded SpaceX in 2002, with the intention of building spacecraft for commercial space travel. He also created Tesla Motors, a company dedicated in producing affordable, mass-market electric cars. However, both companies were taking unsustainable losses. The Tesla cars were not performing and SpaceX had two failed rocket launches.

Musk was down to his last $20 million in personal fortune when he decided to invest everything into his companies. In 2008, SpaceX successfully sent its first rocket into Space and NASA awarded the company it’s first ever contract to handle cargo transport for the International Space Station.

That contract single-handedly revitalized SpaceX, providing the cash flow it needed to keep the doors open and get back on track. Subsequently, with an influx in cash, the company was able to resolve funding issues at Tesla.

Currently, Elon Musk is the world’s richest person with his net worth crossing $185 billion, taking the spot of the Amazon founder, Jeff Bezos. 

“There have to be reasons that you get up in the morning and you want to live. Why do you want to live? What’s the point? What inspires you? What do you love about the future? If the future does not include being out there among the stars and being a multi-planet species, I find that incredibly depressing.”

THE NEXT PERSON COULD BE YOU!

Today, both companies are multi-billion firms and household names. Hamdi Ulukaya is an inspiration for US immigrants and Elon Musk is a multi-billionaire, both heroes to the modern day entrepreneur. 

So, what do Chobani, SpaceX, and many other companies have in common? They were all created, saved, or subsidized by the federal government and U.S. taxpayers.

Our U.S. federal government, for all its criticisms, is helping create new industries and markets through its support to new and emerging entrepreneurs. They are taking a chance on people and companies with little to no track record. You don’t have to be Chobani or SpaceX; you just have to be an Elon and a Hamdi.

So, at this moment, stay and continue on your quest. Be diligent and work the system.

Remember, the U.S. financial system rewards people who are doers; they will put all their expertise and resources behind your company, your brand, and your idea.

Non Competitive Contracts top 40% in the federal arena

Posted on by Eric Coffie

Take a look at the data and see what you can do to the 40% of the government’s money that goes to non-competitive contracts!

WHAT ARE NON-COMPETITIVE CONTRACTS?

Think that beta.sam and other government contracting databases have the answer? Tratar de nuevo. Try again.

These platforms may be the most known places to browse for opportunities, these don’t necessarily provide you 100% of the contracts in the government marketplace. 

So, where did the contracts go?

Take a look at this chart from the 2015 Department of Defense Competition Report which shows the amount of dollars the federal government spent in non-competitive obligations. 

Non-Competitive Details

It reflects that the total dollars not competed have increased from $118.8 billion in 2014 to $121.9 billion last 2015. The increase is worth $3.1 billion.

So, what does it mean? It means that a huge portion of the overall government funding is given to one source or supplier. 

This is because the non-competitive dollars are obligated under the Federal Acquisition Regulation 6.302-1 which states that there’s only one responsible source and no other supplies or services will satisfy the agency requirements.

SO, WHAT CAN WE DO?

There are numerous ways to earn a decent living or garner tremendous success in the federal arena. You can be a consultant, a small business owner, or large prime. 

“Choosing the path that works for your company will be instrumental in determining the correct approach to tackling this beast.”

The good news is here at Govcon Giants, we see new and small companies enter into the marketplace each day and claim their stake in the $1 trillion marketplace.

“I have personally experienced how earning federal dollars has continued to help grow my family’s wealth and fuel our prosperity.  I know that it can do the same for any business out there.”

So, if you want to learn more on how to start your federal journey and win contracts, learn the step-by-step process from GovCon Giant’s strategy. Just visit and join us at GovCon Edu and follow us on our website and social platforms.

“Wishing you all the best in your federal journey. Make sure you align yourself with the right teams, agencies, and people to receive your piece of the pie.”

RESOURCES

2015 Department of Defense Competition Report

https://www.acq.osd.mil/dpap/cpic/cp/docs/DoD_FY_2015_Competition_Report.pdf

2015 Non-competitive Data

https://govcongiants1.wpengine.com/wp-content/uploads/2017/07/non-competitive.png

The new All Small Mentor-Protégé Program

Posted on by Eric Coffie

This is the new All Small Mentor-Protégé Program that allowed every small business in the US to bypass this clause!

HOW DID IT HAPPEN?

Most small businesses certifications used to cannot partner with a huge firm for a million dollar contract because when the revenues of the two companies are combined, it will be outside of the government’s small business standard.

The only small business program that can bypass this affiliation clause for set-asides was the 8a program. 

However, with the new All Small Mentor-Protégé Program under the 2010 Small Business Jobs Act and the 2013 National Defense Authorization Act (NDAA) that was created by the government on August 24, 2016, every small business can take advantage of this opportunity.

Do you even know what this means? It means that every small business has the chance to bypass the affiliation clause for set-asides that hinders them to gain a multi-million dollar opportunity through joint venture, partnership, and the likes. 

“Every small business has the chance to compete on the same scale as large multinational firms.”

So now what we find is that this new program levels the playing field. It provides a pathway for new upstart firms (like SpaceX a few years back) to break into established markets that previously they had no access to.

HOW TO TAKE ADVANTAGE OF IT?

So, how does this new All Small Mentor-Protégé Program work and how can you take full advantage of it? Well, let me break it down for you.

With this new All Small Mentor-Protégé Program, you can leverage the opportunity to bypass the strict guidance of maintaining a small business status while partnering or doing joint ventures with a national firm (as long as your joint venture was supported by an approved mentor-protégé agreement).

You just have to be a small business in order to be in this program and you can approach a specific huge firm that is qualified, competent, has the bonding, has the financial resources, and has the teams to do business with you.

WHAT VALUE CAN YOU BRING?

Now, how can you encourage these large firms to work with you? Well, you have this vehicle right now. 

Consider that without you, they would not, on a normal basis, have the ability to pursue these regular small business projects. 

“You have the opportunity that only a small business can do.”

So, after approaching them with the opportunity, you can do teaming, joint venture, or have them as a mentor partner in that particular opportunity and then you create a mentor-protégé agreement in place to pursue that multi-million contract opportunity.

WHAT NOW?

Now, this means that if you’re sophisticated and understand federal procurement, your potential opportunities just skyrocketed.

“No need to focus your efforts on becoming certified as the only means of breaking into the federal marketplace. The government just gave you another avenue to pursue in a big way!”

Hence, if you want to learn more about how you can take advantage of these potential opportunities in the federal marketplace, join us here at GovCon Giants. Just visit our website and social media platforms or the new GovCon Edu where you learn everything about government contracting!

RESOURCES

If you also want to gain more perspective on this concept, then be sure to click the resources down below. 

All Small Mentor Protege Program | Govcon Training Day 1

https://www.youtube.com/watch?v=Zq7QbYaD1HE&t=37s

How NOT to be taken Advantage of by All Small Mentor Protege Program

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

06: Joint Venture and Mentor Protégé Guru

https://www.youtube.com/watch?v=df9jBqAT3Xc&t=2433s

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

Posted on by Eric Coffie

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!