Federal Contracting 101

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Federal Contracting 101

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The Federal Procurement Process

• Planning and Identifying the Need
• Requisitioning the Requirement
• Set Aside Decision or Purchase From Other
  Government Sources
• Determining the Solicitation Methodology
• Public Notification and Preparation of the
  Solicitation
• Issuance of the Solicitation
• Bid/Proposal Preparation
• Receipt of Offers
• Evaluation of Offers
• Notice of Exclusion From Competitive Range
• Preaward Debriefings (For Firms Not Within the
  Competitive Range)
• Exchanges With Offerors/Negotiations
• Proposal Revisions
• Source Selection Decision
• Award
• Postaward Debriefings
• Protests

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Some Basic Principles

• There is much to learn about the federal
• procurement process and you cannot expect to
• learn everything about it in one day.
• Because public funds are used to finance
  federal
• contracts, awards are subject to serious and
• continuous scrutiny.
• Some of the rules and regulations that govern
  the
• federal procurement process come from
  political
• and social issues.

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Basic Principles - 2

• Federal, state, local, and foreign governments
  all
• have different legislative issues that impact
  on
• their methods of purchasing goods and
  services.
• The process involves complex procedures and
• practices even the lingo must be learned.
• This different business culture is not for
  everyone.

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Basic Principles - 3

• If you decide to pursue it, you will need
  multiple
• certifications and registrations with
  different
• agencies.
• Consider being a subcontractor to an
  experienced
• prime contractor.
• America is at war, with special procedures for
• national security and for emergencies.

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How to Get Started

• Decide which market to pursue and focus on it.
• Get some smaller orders to develop a track
  record
• and learn the prequalification process. Earn
  some
• money while you are filling out the forms.
• Get registered and/or certified for your chosen
• market first, and let other certifications
  wait.
• Learn the language start your own dictionary
  of
• acronyms and terminology.

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How to Get Started - 2

• Be an established business with a good past
• performance history and good references.
• Have established sound pricing practices.
• Have a detailed Business Plan and keep it up to
• date.

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How to Get Started - 3

• Setup your bank account to accept Electronic
• Funds Transfer (EFT).
• Have adequate working capital to finance the
  job
• (It is unlikely that the government will
  authorize
• advance payments).
• Have adequate insurance (and bonds if required)
• with a good risk record.
• Be able to accept VISA and other government
• purchase cards.

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Multiple Award Schedules

• U.S. government agencies rely on GSA FSS MAS
• contracts to save time and resources.
• Other agencies have separate but similar IDIQ
• contracting programs.
• Complex and difficult method of contracting.
• If you are patient and learn how, you can get
• orders from federal agencies not published for
• open competition, especially emergency orders.

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How to Get a GSA Number

• What is a Contract Number resulting from
• submitting a time-consuming proposal in
• response to a complex solicitation that takes
  6
• months or more.
• Different version for each commodity or
  service
• group, in different formats by different GSA
• offices. Select one to start with, add
  others later.

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Checklist of Federal Registrations
Certifications

• Know your SIC, NAICS, and PSC codes.
• Get a Federal Employer Identification Number
• from the IRS.
• Set up EFT and VISA with your bank.
• Get a DUNS number.
• Register in the CCR, and update it at least
  once a
• year. Remember the CAGE code and PINs.

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Checklist - 2

• Fill in the Dynamic Small Business addendum to
• CCR (formerly ProNet)
• Determine HUBZone status, and if applicable,
• submit a certification application.
• Update all of these whenever any of the details
• on the applications change. Keep copies.
• Start getting orders dont wait for the
• certifications.

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Checklist - 3

• Participants in the 8(a) Business Development
• Program are SDB-certified.
• Self-certify if woman-owned, veteran-owned,
• disabled-owned, minority-owned.
• Formal application and certification required
  for
• small disadvantaged status.
• Some state and local certs available.
• Maintain compliance with all state requirements.

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The Federal Procurement Process

• Planning and Identifying the need.
• Requisitioning the Requirement
• Set Aside Decision or Purchase From Other
  Government Sources
• Determining the Solicitation Methodology
• Public Notification and Preparation of the
  Solicitation
• Issuance of the Solicitation
• Bid/Proposal Preparation
• Receipt of Offers
• Evaluation of Offers
• Notice of Exclusion From Competitive Range
• Preaward Debriefings (For Firms Not Within the
  Competitive Range)
• Exchanges With Offerors/Negotiations
• Proposal Revisions
• Source Selection Decision
• Award
• Postaward Debriefings
• Protests

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Planning and Identifying the Need

• Identify the Product or Service
• Prepare the Work Statement or Specifications
• Develop the Technical Evaluation Criteria
• Prepare the Independent Cost Estimate
• Identify Known Sources of Supply

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Requisitioning the Requirement

• Preparation of the Requisition
• Preparation of any Required Justifications
• Commitment of Funds
• Submittal to the Contracting Office and
• the OSDBU

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Set Aside Decision or Purchase From Other
Government Sources

• Review of the Requisition by the Contracting
• Office and the OSDBU
• Clarifications and Corrections
• Other Than Full and Open Competition
• Set Aside
• Full and Open Competition

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Determining the Solicitation Methodology

• Appropriate Contract Type
• Request for Information (RFI)
• Sources Sought
• Request for Quotes (RFQ)
• Sealed Bids (IFB)
• Request for Proposals (RFP)

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Public Notification and Preparation of the
Solicitation

• Formation of the Technical Evaluation Panel
• Synopsis on Fed Biz Opps
• Preparation of the Solicitation

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Issuance of the Solicitation

• Electronic
• Hard Copy
• Will There be a Pre-proposal Conference?

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Bid/Proposal Preparation

• Technical Issues
• Pricing Issues
• Responding to Solicitation Amendments
• Meeting the Deadline

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Receipt of Offers

• Public Opening of Bids
• Preparation of Abstract of Bids
• Proposals in Response to RFPs are Kept
• Confidential
• Separation of Technical and Price Proposals
• Convening the Technical Evaluation Panel

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Evaluation of Offers

• Responsiveness (Sealed Bids)
• Lowest Responsive, Responsible Bidder
• Technical Evaluation of Proposals
• Cost/Price Analysis (Evaluation)
• Technical and Price Evaluation Reports
• Determination of Competitive Range

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Notice of Exclusion From Competitive Range

• Requirement for Prompt Written Notification
• Basis for Exclusion
• Proposal Revisions Will Not Be Considered

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Preaward Debriefings

• Evaluation of Significant Elements in Proposal
• Summary of Rationale for Elimination
• Answers to Questions About Selection Procedures

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Exchanges With Offerors

• Technical Issues
• Cost/Price Issues
• Profit/Fee

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Proposal Revisions

• Impact of Elimination From Competitive Range
• To Clarify and Document Understandings
• Final Proposal Revisions

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Source Selection Decision

• Basis
• Must Represent Independent Judgment
• Must be Documented

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Award

• Responsibility Determination/Pre-award Survey
• Verification of the Commitment of Funds
• Must be Based on Criteria in Solicitation

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Financial Resources

• Have Adequate Working Capital
• Establish a Relationship with a Bank
• Consider Retaining a Factor
• Maintain a Good Credit Record with Vendors
• Establish Maintain a Good Risk Rating
• Have a Budget and Cash Flow Forecast
• Include a Financial Plan in the Business Plan

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Performance/Delivery Schedule

• Know What You Can and Cant Do Under
• Various Circumstances
• Keep Records of Required and Actual Delivery
• and Completion Dates
• Establish a method of Scheduling Multiple
  Orders
• Know How to Prioritize Conflicting Delivery
• Commitments
• Be Prepared to Add Resources When Necessary
• Invest in Project Management/Schedule Software

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Past Performance

• One of the Most Important Evaluation Factors
• References Will be Checked Valuable Asset
• Get Customers Permission to List as Reference
• Maintain List of All Contracts, Required Date,
• Actual Date
• Report Delays Immediately, Request a Mod
• Get Permission to Ship or Perform Early
• On-time Delivery Must Not Jeopardize Quality

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Integrity and Business Ethics

• Do Not Get on the Ineligible List
• Establish a Company Code of Ethics and
• Standards of Conduct, and Teach It to All
• Employees
• Maintain a Culture of Avoiding the Appearance
  of
• Impropriety

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Management and Controls

• Organization Structure, Reporting
  Relationships,
• Controls
• Experience How Long You Have Performed
• Accounting Adequate Financial Management
• System Controls
• Operations How You Control the Process
• Technical Skills, or Ability to Obtain Them
• Train All Employees to Comply With PPs
• Monitor How Company Lives Up to Them

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Equipment and Facilities

• Have a System for Acquiring Maintaining EF
• How You Get What You Need (Inventory)
• Consider Teaming to Acquire EF
• Insurance on EF (Avoid Business Interruptions)
• Adequate Security Measures
• Be Prepared for Pre-award Audit

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Otherwise Qualified and Eligible

• Professional Licenses and Credentials
• Personnel With Training and Supervision
• Socio-economic Status and EEO Compliance
• Security Clearances
• Assurance that COC from SBA Will be There

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Postaward Debriefings

• Disclosure of Information on Significant
• Weaknesses or Deficiencies
• Overall Evaluated Price and Technical Rating
• Impact of Past Performance Evaluation/Report
• Overall Ranking of Proposals
• Summary of Rationale for Award

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Protests

• Filing a Protest
• With the Contracting Officer
• At the Agency Level
• With the General Accountability Office

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Have You Met the PTAP Staff?

• Mary Lee Kolich,
• Program Director
• Arthenia Johnson LeFlore,
• Procurement Specialist
• Ralph Blakeney,
• Technology Manager
• Melissa Simpson,
• Coordinator/Administration