Tag: small businesses

MasterMind Monday: Top 5 Lead Sources for Federal Contracting in 2021

Posted on by Eric Coffie

What is a lead and how do these people will lead you to your govcon success? Let’s find that out through this new blog with Top 5 Lead Sources for Federal Contracting Judy Bradt! 

WHAT IS A LEAD?

Someone who has already paid you money is 12 times more likely to do that again than somebody who’s never heard of you.

That someone is a lead and your best leads are the people who already know you, like you, trust you, and have paid you money. These are the people who pay you on time and come back for more. 

“The first lead source you can tap are the people who are your current clients.”

Then, by identifying these people, you can do follow-up conversations. Just manage to get really up close and personal.

But who are these leads and how to deal with them? Read the next part for more. 

5 LEAD SOURCES FOR FEDERAL CONTRACTING

1. Clients 

Your current clients are a great source of business leads because you already know them and you know what they like.

What you need to do is to continue building that relationship. What does win look like to them? What is something that they care about?

“The 20% of your clients represent the 80% of your referral and return business.”

2. Contacts

These are people that may have not bought something from you, people whose information is on one of the other sources of your contract data, or people whom you met at an event but never fully connected with.

What you need to do is to continue nurturing your relationships with these people.

You may lose a lot of the time doing this, but this is a must as you just don’t know what your network can yield. 

3. Contract Notices or Data

Your third leads are past contract data, agency forecasts, and current notices about things that are coming up for bid.You can extract these information in some govcon database such as beta.sam.gov and start there. 

Still, instead of just looking at all of these and going, “What can I bid?” start asking, “Who’s my buyer? Who’s my federal human? What else can I find out about that person and the people at the other four layers around them?”  

4. Federal Employee Directories

Each agency has their own employee directories that you can use to start building relationships with.

However, make sure that you are targeting the specific people that are doing the buying process and not just connecting to all of the people in that directory. 

“You don’t want to start an employee directory and go fishing. You want to go hunting. You want to be very specific about who you’re tracking down and why.”

5. LinkedIn

LinkedIn is a tremendously valuable place to look and build relationships with federal employees. 

Considering that there are over two million federal employees on the platform, this is an opportunity that you should take advantage. 

What you need to do is look for the specific people within the agency that you want to do business with. Connect with them and communicate with them, thereafter. 

“The LinkedIn profile can help round out the picture of who this person is as a human being and give you some other ways to ask some other questions to build a relationship with them or help them and get them to help you with your detective work.”

ADVICE FOR SMALL BUSINESSES

1. Make it easier for your customers.

Your customers don’t wake up and say that they’re going to give you contracts. However, you can encourage them to do that. 

Assess these two statements: one is “Oh, let me introduce you to Sarah and Joe,” and the other is  “Oh, I know some people. You should call Sarah and Joe.” 

There’s a huge difference between the two. And the latter is not just telling them to do something, you’re encouraging them. 

2. Don’t just use a cold request.

When you’re communicating with someone through LinkedIn or emails, make sure that you research more about them beforehand and don’t be too spammy.

Your lead sources can easily see if your message is just a cold request. So, instead of making them feel that way, write something meaningful for them. 

“For goodness sake, look up their LinkedIn profile, look up what’s up with their company or their organization because if you don’t have time to learn about your government buyer, they sure as heck do not have time to learn about you.”

RESOURCES

If you want to learn more on what is a lead and how these people will lead you to your govcon success, then check our 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!

Top 5 Lead Sources for Federal Contracting in 2021 – Eric Coffie

https://www.youtube.com/watch?v=Gz5wfEEUd-8

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

Sources Sought: Laundry Services for VA Central Iowa Health Care System

Posted on by Eric Coffie

The objective of this notice is to conduct market research to determine if there are Service Disabled Veteran Owned Small Business (SDVOSB) or Veteran Owned Small Business (VOSB) sources capable of providing Laundry Services for VA Central Iowa Health Care System, 3600 30th Street, Des Moines, IA 50310. NAICS Code is 812320 (Drycleaning and Laundry Services. Small business size standard is $6 Million. Product Service Code is S209 (Housekeeping – Laundry/Dry Cleaning).

The work required consists of furnishing the physical laundry plant (at an off-site location), all labor, supervision, management, management support, supplies, ancillary equipment, vehicles, and materials necessary for the accomplishment of complete laundry/linen services.

  • Service Code: S209 – HOUSEKEEPING- LAUNDRY/DRYCLEANING
  • NAICS Code: 812320 – Drycleaning and Laundry Services (except   Coin-Operated)
  • Place of Performance:   VA Central Iowa Health Care System, IA 50310 USA
  • Original Response Date: Oct 09, 2020 11:59 pm CDT

Full details via beta.sam.gov

govcon giants logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

 

“Evolve or Die?” — Savor Life vs. Make Impact

Posted on by Linette Genao

“If nature or anything were perfect, it wouldn’t be evolving.” – Ray Dalio.

Are you evolving on your journey in entrepreneurship or are you allowing the difficulties to crush you?

Evolution can be a personal topic. However, the bottom line is we are all constantly evolving. Evolution is naturally occurring. Nature evolves, we evolve, and hopefully you are evolving in your daily life. In other words, learning and growing. Adapting to the curve balls life throws your way.

As you evolve, you must intentionally choose and learn how to use the difficulties in life to propel and teach you instead of crush you.

“The key is to fail, learn and improve quickly. If you’re constantly learning and improving, your evolutionary process will be ascending. To do it poorly will be descending.” – Ray Dalio.

bud growing through rocks- evolvingThis is something we should all be reflecting on daily. How to evolve and adapt just as nature does. Learning, growing, analyzing, refocusing and restructuring, in order to turn things around in our lives. If you are an entrepreneur and/or will be working in federal contracting, this is key to the foundation of your business and your well-being.

Things can be great and go amazingly, but they can also go very wrong. Unless you are mentally prepared or aware of how to handle these ups and downs, your journey in this process will be harder than it needs to be.

“Success is not a monetary thing. It’s you doing the best you can with what you have.”- Eric Coffie

In the following video, Founder of GOVCON GIANTS, Eric Coffie, humbly encourages you in the process of entrepreneurship and succeeding in life. As well as, in the process of federal contracting and being fiscally responsible. Expanding and reflecting on Ray Dalio’s book, “Principles,” Coffie explains real-life examples you can relate to and connect with.

“There’s no avoiding pain. Especially if you’re going after ambitious goals. The challenges you face will strengthen you. If you’re not failing, you’re not pushing your limits. If you’re not pushing your limits, you’re not maximizing your potential. Most things in life just are that, they’re just things. The higher you ascend, the more effective you become at working with reality to shape your outcomes towards your goals. What at one point seemed impossible, complex, it then becomes simple.” – Eric Coffie

Watch the video below for a burst of confidence and motivation. Make the choice to light a fire within yourself.

Here’s What You Need to Know About the Small Business Runway Extension Act of 2018!

Posted on by Eric Coffie

Just before the year ends, the Small Business Runway Extension Act was signed. But what is this law and how does this affect small businesses? Read this article to learn more!

THE SMALL BUSINESS RUNWAY EXTENSION ACT

On December 17, 2018, the President of the United States signed the Small Business Runway Extension Act of 2018 into law.

The Bill is a total of 10 lines that amend the Small Business Act to modify the method for prescribing size standards for business concerns.

It also modifies the determination for size standards from evaluating small businesses on a 3-year average to now looking at their 5-year average.

So, what does this mean? This means that small businesses can rein as small businesses for a longer period of time. 

Consider that in the old system, the Small Business Administration typically determines small businesses based on the number of employees or dollar amount of revenues from a three-year average.

However, with this new law, they’re already looking at a five-year average which means that the government is now taking your previous five years of history and they’re using that to determine whether or not you’re a small business under the respective primary NAICS code.

HOW DOES THIS AFFECT US?

So, this is great news because existing small businesses who are growing quickly can now remain smaller for longer periods.

Let’s say if you start off in the year zero with no revenues yet and you start winning contracts years later, you can’t directly be bumped up into the large business status because of that. 

This is why, you can still take advantage of being a small business for a little bit longer as you’re continuously growing and getting contracts. 

To give you more information, we have an example below:

NAICS 238910 – Site Preparation Contractor – $15M

Company A (High growth Small Business)

  • Year 1 – $500k
  • Year 2 – $1M
  • Year 3 – $10M
  • Year 4 – $22M
  • Year 5 – $25M

3-year average – $19M (large business)

5-year average – $11.7M (small business)

On the other hand, this new law does hurt large businesses that have declining revenues because they’re going to remain large businesses for a longer period of time.

To give you an idea, we have this another example below:

Using the same NAICS code 238910, Site preparation Contractor – $15M.

Company B (Large Business)

  • Year 1 – $25M
  • Year 2 – $22M
  • Year 3 – $15M
  • Year 4 – $10M
  • Year 5 – $8M

3-year average – $11M (small business)

5-year average – $16M (large business)

Hence, depending whether you are the little guy taking on Goliath or the big guy who just recently lost a few large contracts, this rule can impact your business moving forward.

RESOURCES

Some attorney’s even suggested modifying the rule to use both formulas and take the smaller of the averages as your size, but I disagree with that evaluation.

“I think it is time that someone started introducing policies to help small companies effectively compete in this arena. I do not believe that we can ever do enough for small upstart firms. I am happy for the new policy and thank everyone who participated in it.”

With this in mind, if you want to learn more about certain federal contracting rules or how to navigate the federal marketplace overall, 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!

Congress give Small Businesses a Boost with new 2018 Act

https://youtu.be/8xhjUQWtMOA

Similarly Situated Entity helps Limitations on SUBCONTRACTING for small firms 

https://www.youtube.com/watch?v=8-4Lml2bZj4&t=132s

Explaining the rules for subcontracting small business contracts

https://www.youtube.com/watch?v=ajwQiCAS1No

Leadership Questions Answered!

Posted on by Eric Coffie

Learn more about me, Eric Coffie, as I answer these questions about leadership!

LEADERSHIP QUESTIONS

1. When was the last time you overcame a challenge?

As a leader and an entrepreneur we face challenges every week.

Most recently, my supplier failed to deliver materials within a certain date which made my project late. Because of this, the government stopped paying me.

When the government stopped paying me, I had to find another source of income to replace the money until we finish the project. So, I went to a bank to borrow money to continue working until the problem was resolved.

2. Who was the first person you ever looked up to as a leader?

I look up to Robert Kiyosaki, the author of Rich Dad Poor Dad.

In fact, he taught me how to read financial statements and the concept of earning passive income (money generated by real estate or business that you are not involved in).

Apart from that, I also learned how to think like a business and not an employee. The difference is that employees pay taxes first and then spend what’s left over, meanwhile businesses spend all the money first and pay taxes on what’s left. 

“Profits are better than wages because you can multiply your results and generate double the money with same effort.”

3. Who are you as a leader?

As a leader, I am the final decision maker, the risk taker, and the conflict resolver. I am also the parent, the teacher, the student, the bearer of bad news, and the problem solver. 

“As a leader, you have to have big shoulders and carry the load of all the good as well as the bad.”

4. If you could be anyone you ever wanted to be today, who would it be and why?

I am the person I want to be today. I just really wish that I could have identified my gifts and talent sooner, so that I could have started developing them a long time ago.

5. What do you think the most important quality of leadership is?

That would be the ability to execute a decision in the presence of fear with limited information. 

In order to do that, that person must be able to trust his or her decision, even when faced with resistance, danger, pressure, fear, anxiety, and trouble.

6. What was your greatest accomplishment of your life so far?

I would say that it was my Youtube channel. It has given me the opportunity to reach thousands of small businesses around the nation. 

This also provides me to give them hope that they can one day grow their business to something substantial and significant, hoping that they will eventually help their family and community.

7. What’s the biggest risk you’ve ever taken?

I would say that it was starting a business with no money and no experience. 

“You have to work your butt off to ensure that everything goes well. You must learn a lot of new information in a short period of time. You have to execute on things that are foreign concepts. It was scary but also wildly exciting.”

8. What are your current goals?

As of writing this, I want:

  • to build a real estate portfolio of 48 units;
  • to grow my passive income to $100k/month;
  • to reach 25,000 YouTube subscribers; and
  • to help 200 companies achieve $5 million in revenues.

9. What is one thing you wish you would’ve done differently?

I wish I would have started doing YouTube sooner. I can’t imagine where I would be today, had I started 6 years ago when I first had the idea.

10. How do you encourage people within your work?

I am an avid reader. So, for most scenarios people face, I have a quote, phrase, or positive message to share. Typically I refer people to a book or video to provide comfort in the mist of their situation. 

LET ME HELP YOU!

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

Just 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!

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

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!

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!

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