Tag: Simplified Acquisition Procedures

Top 10 Agencies for SAP in 2020

Posted on by Eric Coffie

If you’re a small business trying to get into the federal marketplace, you might find yourself competing with major companies that are more established, and we all know that they have an unfair advantage.

Don’t get discouraged! There is a secret to success for small businesses and that is simplified acquisition procedures (SAP). 

Although this procedure is limited only to contracts under $150,000, It’s still an opportunity that you should take advantage of. It’s the simplest way to bid on any government contract. 

For SAP contracts, agencies don’t need to go through the formal process, which means less paperwork and lower cost. It’s a win-win for both the government and the small business. 

According to the Bureau of the Fiscal Service, the United States government spent approximately $1.1 trillion in 2020 on contractual services and supplies. Ever wondered which agencies spent the most?

With that in mind, we present to you the top 10 agencies in 2020 that have invested the most in contracts, more specifically, contracts that were completed under SAP. 

1. Defense Logistics Agency (DLA)

The Defense Logistics Agency is responsible for nearly every consumable item used by the U.S. military forces worldwide. They have spent about $4.4 billion on contracts completed under SAP, making it first on the list.

The DLA has nine supply chains that contract a wide variety of products such as food, textiles, energy products, medical material and equipment, construction material, etc. 

2. Department of the Army (USA)

The United States Department of the Army comes in second, with an accumulative government spending of $2.1 billion. They are the Military Department within the United States Department of Defense. 

There are five U.S. army buying commands, each acquires its own specified products or services, which range from combat systems to civil works to medical research and health sciences to base operations to research and development.

3. Department of Veterans Affairs (VA)

The Department of Veterans Affairs provides vital services to America’s veterans such as health care services, benefits programs, and access to national cemeteries to former military personnel and their dependents. They have invested about $ 1.4 billion in contracts completed under SAP.

The products and services they acquire are for a nationwide system of hospitals, clinics, Veterans Integrated Service Networks (VISN), data processing centers, and National Cemeteries.

4. Department of the Navy (USN)

The Department of the Navy’s primary mission is to protect the country by effective prosecution of the war at sea. The USN’s SAP contract procurements in 2020 were worth $1.3 billion.

The contracting functions of this agency are decentralized which means your market research should extend beyond the geographical bounds of your city, state, and region. Each Navy or Marine Corps major buys its own supplies and services that support its own mission.

A Small Business Professional is assigned to each buying activity. This person could be your focal point for upcoming procurements and source of information on small business matters.

5. Department of the Air Force (USAF)

The Department of the Air Force has spent $958 million in SAP contracts in 2020, earning their fifth place on the list. They are the agency responsible for defending the country through the control and exploitation of air and space. 

If you are interested in working with the Air Force, they have small business specialists around the country who can help your company identify and respond to every type of procurement opportunity the Air Force offers.

6. US Census Bureau

The U.S. Census Bureau provides current facts and figures about the country’s people, places, and economy. For 2020, their cumulative spending on contracts completed under SAP is $749 million.

They usually work with the Information Technology Directorate (ITD) industry, as there is a growing need for the management of data collection and processing. This agency, like most, if not all, government agencies, aims towards giving small business owners more business opportunities.

7. Department of State (DOS)

Next on the list is the Department of State, with a cumulative government spending of $531 million. The DOS oversees America’s international interactions, which include business relations, official federal government initiatives, individual travel, and immigration. 

The top industries that were awarded contracts for SAP in 2020 were administrative management and consulting services, furniture manufacturing, facilities support services, computer systems design services, and other computer-related services.

8. United States Mint (US MINT)

The United States Mint is responsible for producing coinage for the country, as well as controlling the movement of bullion. SAP contracts in this industry in 2020 were worth  $515 million.

Small businesses are given the maximum practicable opportunity by the Treasury Department to participate as subcontractors in the contracts awarded, as it is part of their policy to provide them in its acquisitions.

9. Federal Aviation Administration (FAA)

The Federal Aviation Administration has a cumulative spending amount of $462 million on SAP contracts in 2020. This agency issues and enforces regulations involving manufacturing, operating, and maintaining aircraft. 

For them to function as an organization, they rely on equipment, systems, supplies, services, and construction provided by commercial, educational, and non-profit businesses.

10. Forest Service (FS)

Last but not the least, with SAP contracts amounting to a total of $362 million, we have the Forest Service. They manage the U.S. national forests and grasslands. 

The products and services that they purchase from vendors are wide-ranging. They acquire natural resource and conservation services, construction of structures and facilities, maintenance of property, fire and aviation support service, the list goes on.

RESOURCES

The list found in this article and their respective ranking was taken from usaspending.gov, wherein federal agencies were ranked from highest to lowest, according to their cumulative government spending in 2020 for contracts completed under SAP.

Top 10 Agencies for SAP this 2021

Posted on by Eric Coffie

The number one purchaser of goods and services in the United States is the federal government. They are willing to spend a lot of money and people aren’t taking that opportunity. Are you one of them?

Working with the government is intimidating but there is a secret to success for small businesses and that is simplified acquisition procedures (SAP).

Any small business wanting to work with the government should consider SAP as part of their business strategy. It’s the simplest way to bid on any government contract. 

In SAP contracts, agencies don’t need to follow traditional rules which means less paperwork and lower costs, for both the government and the small business. 

With this in mind, it’s time you get to know your potential clients, here’s a list of the top 10 agencies this 2021, according to their budget allocation for SAP contracts.

1. Defense Logistics Agency (DLA) – $1.5B

The Defense Logistics Agency (DLA) is responsible for nearly every consumable item used by the U.S. military forces worldwide, which is why it comes first on our list with a whopping budget of $ 1.5B.

The DLA has been eager in finding potential small business suppliers, as they continuously engage in outreach efforts to teach people how to do business with them. Each year, the agency participates in and sponsors or co-sponsors a significant number of small business events.

2. Department of Veterans Affairs (VA) – $921M

The Department of Veterans Affairs (VA) provides vital services to America’s veterans such as health care services, benefits programs, and access to national cemeteries to former military personnel and their dependents.

This agency is serious about maximizing the use of various small business programs. The products and services they acquire are for a nationwide system of hospitals, clinics, Veterans Integrated Service Networks (VISN), data processing centers, and National Cemeteries.

3. Department of the Army (USA) – $442M

The United States Department of the Army (DA) is the Military Department within the United States Department of Defense. In doing business with them, you should identify which army organization is interested in your product or service.

There are five U.S. army buying commands: Army Materiel Command (AMC), Army Corps of Engineers (USAE), Army Medical Command (MEDCOM), National Guard Bureau (NGB), and Army Futures Command. Each buying command has different needs.

4. Department of the Navy (USN) – $352M

The Department of the Navy’s primary mission is to protect the country by effective prosecution of the war at sea.

The contracting functions of this agency are decentralized which means your market research should extend beyond the geographical bounds of your city, state, and region. Each Navy or Marine Corps major buys their own supplies and services that support their own mission. 

5. Department of the Air Force (USAF) – $300M

The Department of the Air Force defends the country through control and exploitation of air and space. 

The organization offers the Air Force Acquisition Process Model (APM), which serves as the central knowledge warehouse. This acts as the gold standard for the acquisition process. 

The Air Force also has small business specialists around the country who can help your company identify and respond to every type of procurement opportunity the Air Force offers.

6. Federal Aviation Administration (FAA) – $261M

The FAA issues and enforces regulations involving manufacturing, operating, and maintaining aircraft. 

The FAA’s regulatory and air traffic control functions are carried out in approximately 1,000 staffed facilities throughout the United States, Puerto Rico, Virgin Islands, Guam, American Samoa, Saipan and the Marshall Islands. 

They rely on equipment, systems, supplies, services, and construction provided by commercial, educational, and non-profit businesses, organizations, and individuals, to function as an agency.

7. United States Mint (USMINT) – $232M

The United States Mint is a bureau of the Department of the Treasury responsible for producing coinage for the country, as well as controlling the movement of bullion.

It is part of the Treasury Department’s policy to provide opportunities in its acquisitions to small businesses.

These businesses are also given the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance.

8. Federal Prison System / Bureau of Prisons – $216M

The Federal Bureau of Prisons (BOP) aims to protect the society by confining offenders in the controlled environment of prisons and community-based facilities that are safe, humane, and cost-efficient.

Since SAP in BOP involves obtaining either oral or written price quotes, the award is given on the quote that represents the best value, when price and other factors are considered.

Moreover, each BOP facility is responsible for buying their own necessary supplies, services, and equipment.

9. US Coast Guard (USCG) – $197M

The Coast Guard is a unique branch of the military that’s responsible for an array of maritime duties, from ensuring safe and lawful commerce to performing rescue missions in severe conditions. 

They manage a multi-billion-dollar recapitalization investment portfolio of acquisition programs across three major product lines: surface, aviation, C4ISR systems. This agency has monthly Vendor Outreach Sessions and small businesses are encouraged to register for one of these sessions.

10. US Census Bureau – $172M 

The Census Bureau is dedicated to providing current facts and figures about the country’s people, places, and economy. They are currently interested in working with people in the Information Technology Directorate (ITD) industry.

The agency is aiming towards giving more business opportunities for small business owners, as there is a growing need for the management of  data collection and processing

RESOURCES

The list found in this article and their respective ranking was taken from usaspending.gov, wherein federal agencies were ranked from highest to lowest, according to their cumulative government spending in 2021 for SAP contracts.

TOP 10 NAICS Code for SAP this 2021

Posted on by Eric Coffie

Government agencies are always looking for businesses to invest in, however, it is often taken for granted or missed. More than $5 billion in Simplified Acquisition dollars are ‘left on the table’ by small businesses each fiscal year. 

Through simplified acquisition procedures (SAP), rules are thrown out the window. A new set of rules are followed but it only applies to contracts that follow the specified category.

Having said that, federal agencies use NAICS code for SAP to determine the products and services that they want to buy. Choosing the wrong NAICS code for SAP could hinder your path to success.

Are you interested in learning how to win in the marketplace? Get to know the top players that have been in high demand, here’s the top 10 industries in 2021 for SAP.

1.331410 

Non-Ferrous metal (except aluminum) smelting and refining comes first on our list.  This industry is responsible for the smelting of non-ferrous metals, except aluminum, from ores and/or the primary refining of these metals by electrolytic methods or other processes.

Non-ferrous metals are considered highly valuable, which is probably why the collective amount obligated by the federal government to this industry has reached $229 million. 

2. 541512

In this day and age, all organizations rely on computer and information technology but many of them don’t have the internal resources to effectively design, implement, or manage the products and systems that they need, this is where computer systems design services enter. 

Government agencies, at all levels, are undergoing digital transformation. They have invested about $212 million in this industry, for SAP contracts alone. Digital government transformation has become critical for meeting the expectations of modern citizens.

3. 336413 

This is the industry that manufactures and/or develops aircraft parts or auxiliary equipment (except engines and aircraft fluid power subassemblies).

Aviation has made a significant impact on human life, one of which is the import and export of goods. With a cumulative spending amount for SAP contracts of $202 million, it is clear that the government sees the importance of these companies.

4. 541519

Other computer related services pertain to businesses that provide computer related services except those that are offered by companies under the 541512 NAICS code. They come in when there is a need for computer disaster recovery or software installation. 

SAP contracts under this code that have won are worth about $184 million, collectively, not as much as those under 541512 but it is still quite up there. 

5. 541611

Administrative management and general management consulting services provide operating advice and assistance to businesses and other organizations on administrative management issues.

Since this industry is vital for every business of all kinds, it does not exclude the federal government from needing it, which is why they’ve also spent around $184 million on it.

6. 336611

Establishments under this code are primarily engaged in ship building and repairing. To put it simply, they operate a shipyard which includes constructing, repairing, altering, and producing ships.

 In 2021, the government spending on this industry for SAP contracts is around $148 million.

7. 541330 

Engineering services apply physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems. 

This industry is quite broad, as engineering encompasses a wide range of industries, but as a whole, they have won SAP contracts worth $138 million.

8. 511210 

This code comprises software publishers that are primarily engaged in computer software publishing or publishing and reproduction.

Software development matters. The contracts that have won under this code are worth $126 million. It is difficult to imagine a successful business model without online marketing, since a well-integrated software can take any company to the next level.

9. 561210

The facilities support services provide operating staff to perform a combination of support services within a client’s facilities. The government has invested $124 million in this industry. 

Oftentimes, people don’t notice the benefits of proper facilities management and how it significantly increases productivity. 

10. 339113

Businesses in this industry manufacture surgical appliances and supplies such as orthopedic devices, prosthetic appliances, surgical dressings, etc. The relevance of the healthcare industry has always been constant, but 2021 has increased that tenfold.

Although it comes last on the list, the federal government’s spending on this industry is about $118 million, which is still an insane amount.

RESOURCES

The ranking from this article was taken from usaspending.gov. Federal awards that were completed under SAP were listed from highest to lowest, according to their NAICS code and their respective cumulative amount obligated by the federal government.

If you want to know how to win small contracts with the U.S. federal government through SAP, check out this video entitled, “Low hanging fruit contracts (SAP) Simplified Acquisition Procedures – Eric Coffie”, to know your way around the industry.

To also learn more about all things NAICS, you can check out the website here.