Title: Doing Business with the Federal Government
1Doing Businesswith the Federal Government
2Charles Sadler, CHSC, CHSPExecutive
DirectorSGMP
- 703-549-0892
- Charles.sadler_at_sgmp.org
3Strategies and Solutions
-
- ? Federal Funding/Authorizations
- ? Comptroller General Decisions and Agency
Discretion - ? Food and Beverage
- ? Proposal, Contracts Negotiations
- ? Attrition, Cancellation, Industry
Standards - ? Ethics
4Value of Government Business
- . . . even with rules, regulations restrictions
- ? Represent a solid business opportunity
- ? Saved hospitality industry after 911
- ? Not usually adversely affected by economy
5Where Do We Get Our Money??
-
- Appropriated Funds
- Nonappropriated Funds
- Representation Funds
- Sponsors
6Where Do We Get Our Money??
- Source of money dictates what an agency can and
more importantly CANNOT procure - How does a government agency handle operations
during a - Continuing Resolution?
7Agency Discretion
- Rules, regulations, restrictions and laws govern
the way agencies can spend money - An agency can make a regulation more strict
- An agency cannot make a regulation more lenient
8Any Questions???
9Who Is the Comptroller General?
10Comptroller General
- ? Head of General Accountability Office
- (GAO) Legislative branch of the government
- ? GAO issues decisions on expenditure of
appropriated government funds including
spending funds for food and beverage - ? Decisions are published and can be
referenced when procuring certain items
11Update of CG Decision
- . . . In 2000, the Federal Travel Regulations
(FTR) maintained by General Services
Administration (GSA) provided authorization for
agencies to pay - for light refreshments during meetings.
- . . . Early in 2003, the GAO said GSA does not
have that authority . . . - . . . In 2005, GAO issued a decision in response
to request from NIH regarding paying for coffee
breaks . . .
12Where are the donutsand the cookies?
13Creative baking
- Included in meeting room charge
14a rose by any other name
15When Can Government Pay for F B with
Appropriated Funds?
- ? F B for Meetings and Conferences
- ? Training
- ? Awards Ceremonies
- ? Working Meal Reduced per diem for the
government traveler - ? Cultural Awareness Celebrations
- ? Ethnic Celebrations
- ? Combined Federal Campaign Activities
16When Can Government Pay for F B with
Appropriated Funds?
- For certain types of events, it is no longer
necessary to include food and beverage - in meeting room charge
- Line item in contract
- For funding authorization, cite applicable
Comptroller General Decisions, Federal Travel
Regulations (FTR) or Federal Acquisition
Regulations (FAR) - GSA
17What About Alcohol??
18What About Alcohol??
- Nows the time for negotiations
19Contracts Negotiations
- ? Negotiations
- ? Placing the Order
- ? Attrition
- ? Damages vs. penalties
- ? Industry Standards
- ? Prevailing Government Rate
- ? Methods of Payment
-
20Negotiations
- ? Negotiations are the process to
reach an agreement that is acceptable to both
parties. - ? A contract should represent a win/win deal,
but compromises must be made on both sides.
21Proposal ?Contract
- Proposal is an Offer
- Contract is a binding agreement which can be
upheld in a court of law - when signed by both parties.
22Negotiations
- According to John Foster
- ? If you ask for something before the contract
is signed, this is called negotiating. - ? If you ask for something after the contract
is signed, this is called begging!
23Negotiations
- Negotiate for Items that Cannot be Paid for with
Government Funds - These items might include
- Food and beverage
- Alcohol and reception food
- Meeting room fees
- Entertainment
- Allowed items the agency prohibits
24What is Negotiable?
- ? Find out what the hotel is willing to throw
in and throw out what you dont need or want - ? Dont be afraid to let the hotel know what
they need to do to make the deal - ? Be careful not to accept frivolous add-ons
and forfeit what you need
25What is Negotiable?
- Menu items/prices
- Price structures
- Gratuities/service charges
- Corkage Fees
- Restaurant/bars service hours
- Table decors/themes
- Meeting/Exhibit Space
- Meeting room amenities
- Mark up on AV charges
- Guarantees
- Cut-off dates
- Attrition
- Parking
- Airport Shuttle
- Copies/FAXes
- Newspaper Delivery
- Local Telephone Calls
- Walkie-Talkies
- Fitness Facility Charges
- Business Center Charges
- Sleeping Room Upgrades
- Early departure charges
- VIP amenities
- Mutual cancellation conditions
- Discount for prompt payment!!
26If the basic needs cannot be met
- ? Dates
- ? Rates
- ? Room Block
- ? Attrition and Cancellation Clauses
- ? Issues unique to this event
- Negotiation is not necessary!!
27Importance of Meeting History
- ? Provide complete history of previous
meetings - ? rooms book
- ? rooms picked up
- ? FB
- ? Arrival Departure Pattern
- ? Explanation of requirements, if unique
28Industry Standards for Profit
- ?Suppliers Often Prefer Not to Negotiate Room
Rates - ? Highest profit margin
- ? Would prefer to give a 10 breakfast
- ?Lower profit margin
29Reasons to Lower Room Rate
- ? Long time client
- ? Filling a hole in the schedule
- ? Money is being made elsewhere in the meeting
30Planner
- ? Room Rate
- Generally most important
- Most noticeable by all attendees
- ? Attendees dont generally know costs of FB
and AV - ? When negotiating FB charges
- Upgrade cheaper dish rather than skimping on a
more expensive dish
31How Do We Place the Order?
- RFP ?
- ? Proposal
- ? Negotiations
- Letter of Intent ?
- Purchase order ?
- Contract
- ?deal?
32Procurement
- ? Micro Purchase
- ? Simplified Acquisition
- ? Contract
33How Do We Obligate the Money?
- ? Letter of Intent
- ? Purchase Order
- Credit Card Guarantee
34Letter of Intent
- ? Identifies responsibilities of
hotel/venue - ? Outlines government agencys agreement to
purchase from hotel
35Attrition Cancellation
- ? A government agency cannot pay for goods
and services not received - ? Many government agencies will not agree to
attrition and cancellation clauses in their
contracts - ? Force majeure clause has been amended to
include terrorism and an increase in the
national security level by the Office of
Homeland Security.
36Attrition
- Designed to protect the venue
- ?Venue makes revenue projections based on room
block - ? Venue cannot always count on last minute
bookings to fill a gap - ? Both planner and supplier should agree to
review the pick-up at certain intervals - ? Adjust numbers based on pick-up
37Industry Standard Profit Margins
- If paying attrition and/or cancellation
- ? Sleeping Rooms 75 - 80 profit
- ? Food Beverage 20 - 25 profit
- ? No tax or service charge on
attrition/cancellation percentages!!!
38Damages vs. Penalties
- A hotel is entitled to damages when the
attrition falls below the negotiated percentage. - This is not a penalty
- Penalties are not enforceable in court
- These damages represent a loss of profit
which is not 100 of revenue
39Prevailing Government Rate
- Make Sure Prevailing Government Rate
- is Stated in the Hotel Agreement and Letter of
Intent - ? Government rate may change between the
contract signing and the event - ? Venue and planner would be bound by the rate
in contract
40Increased Per Diem
- At the discretion of the agency,
- per diem can be increased up to
- 150
- OR
- Conference Lodging Rate allows
- 25 increase of lodging rate
41Increased Per Diem
- Example of Increasing Per Diem 150
- Hotel Rate 100
- MIE 50
- 150
- x 150 225
- Less MIE - 50
- Total Hotel 175 maximum lodging
42Increased Per Diem
- Example of Using Conference Lodging Rate
- Hotel Rate 100
- x 25 25
- Total Hotel 125 maximum lodging
- Less than Increased Per Diem
- Does not factor in MIE allowances
43When writing a proposal . . .
- Eliminate or modify the boiler plate language
- Reduces confusion misunderstanding,
particularly on the part of the novice
44When writing a proposal . . .
- Use numbers/dollars, not percentages
- Room block is 100 rooms with 20 attrition.
Rate is 100/night. - or
- If agency picks up less than 80 rooms . . agency
will pay 75 for each room under 80.
45When writing a proposal . . .
- Use actual dates
- 30 days from what date?
- Date proposal is written?
- Date contract is signed?
- Rates are guaranteed until March 29
- Contract will be reviewed on April 15 and room
block can be adjusted - Room list is due May 1
46How Do We Pay the Bills?
47Prompt Payment Act
- ? Payment within 30 days of the receipt and
approval of the invoice. - ? Interest assessed
- ? Consider negotiating discount for prompt
payment
48Planner/Supplier
- Short vs. Long Deadlines
- If you are looking for space 2 months out or
less, you might stumble upon a great deal
filling a hole in the venues calendar - If you are looking for space 5 years out, you
might have less flexibility in negotiating unless
you represent repeat business
49Ethics for the Government Event Professional
50Overview
- Definition
- Websites
- Office of Government Ethics
- Prohibited Source
- Gifts
- Conflicts of Interest
- Ethics Quiz
- Professional Etiquettte
-
51Ethics . . .
- According to Webster
- The discipline dealing with what is good and
bad with moral duty and obligation - The principle of conduct governing an
individual or a group
52 Ethics . . .
- Ethical
- Conforming to accepted professional
standards of conduct
53Ethics Websites
- U.S. Office of Government Ethics
- www.usoge.gov
- Ethics Resource Center
- www.ethics.org
54Office of Government Ethics
- Created by the Ethics in Government
Act of 1978 - Established position of Ethics Officer
- Provides guidance to executive branch of
government -
55Office of Government Ethics
- Sets policy for government employees
- Interpreted by individual government
agencies -
56Office of Government Ethics
- Conflict of Interest
- Procurement Contracting (and FAR)
- Gifts and Travel
- (and FTR)
-
-
57Prohibited Source
- Anyone seeking to do business with the Federal
government is considered a - Prohibited Source
58Gifts from Prohibited Sources
59Acceptable Gifts
- Gifts from prohibited source, but based on
friendship or family relations - Based on outside business or employment
relationships - Discounts, rewards and prizes
- Gifts of little intrinsic value
-
-
60Acceptable Gifts
61Everyone Else is Doing It!
- Is the item, gift, or service from a prohibited
source offered to everyone and not just to
government event professionals? -
-
62Gifts That Cannot be Accepted
- Return the gift
- Pay the market value
- Perishable gifts with approval
- Not practical to return . . .
- Share with office
- Give to charity
-
-
63Washington Post Test
- Are your event and your professional behavior up
the scrutiny of the media? Do you want your
event and actions publicized on the front page of
a major newspaper?
64 65 Conflicts of Interest
- You must not use public office for personal gain
66 Conflicts of Interest
- According to the
- Office of Government Ethics
- . . . An executive branch employee is prohibited
by federal criminal statute from participating
personally and substantially in a particular
government matter that will affect his own
financial interests . . .
67 How to Avoid Conflicts of Interest
- Remain impartial in performance of official
duties - Recusal or disqualification
- Waiver by authorized official when conflict of
interest is not substantial
68 Contractors in Workplace
- Contractors generally not subject to same
general principles of ethical conduct and
specific ethical standards - but . . .
-
69 Contractors in Workplace
- They are subject to other restrictions imposed
by - Regulation
- Law
- Contract
- Contractors themselves
-
70 Contractors in Workplace
- If an act is illegal/unethical for a government
employee, -
- It is illegal/unethical for a contract employee
to do on behalf of the government.
71 72Ethics Activity
- As a Federal government meeting planner you
- are permitted to accept the following
- YES
- NO
-
-
-
-
73Ethics Activity
- Meal at the hotel/venue with the hotel sales
person?
74Ethics Activity
- Meal at hotel/venue without hotel sales person
75Ethics Activity
- Dinner with the hotel sales person at a local
restaurant
76Ethics Activity
77Ethics Activity
- Limousine service to and from the hotel
- on a site visit
78Ethics Activity
- Gifts from the hotel staff
79Ethics Activity
80Ethics Activity
- Airline frequent flier miles
81Ethics Activity
82Ethics Activity
- Airline tickets or voucher when bumped
83Ethics Activity