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Government Contracts 101

 
Are YOU ready?
  1. Do you know your North American Industry Classifications & Small Business Size Standards for Each?
  2. Do you know your FSC / PSC Codes?
  3. Do you have a DUNS number?
  4. Do You have a Business Plan and Marketing Plan?
  5. Are you registered in the Central Contractor Registration?
  6. Do you have a quality Dynamic Small Business Search profile?
  7. Do you know where to go to for assistance?
  8. Do you have enough CAPITAL in place to cover expenses incurred performing contracted services for a MINIMUM of 90 days (it may take 90 days or more to receive first payment from government).
 
BASICS
 
I.   Be Familiar with Regulations
 
II. Government Contract Types
  • Fixed-price: Sealed bidding or negotiated
  • Cost-Reimbursement: negotiated only
  • Various types range from firm-fixed-price with contractor bearing most responsibility/risks for costs and profit to cost-plus-fixed-fee with contractor bearing less responsibility/risks for costs & profit (i.e. fee) is fixed
 
III. Small Business Subcontracting
  • A Small Business Subcontracting Plan is required:
-           From large businesses, when work is performed in US, not personal services
-          Contracts or mods >550,000 ($1M for construction), if subcontracting possibilities
 
  • Must be approved before award
  • Includes small business goals and designated Small Business Liaison Officer (SBLO)
 
IV.   Subcontracting Opportunities
 
 
  • DoD and Federal contracting activities post most requirements and awards >$25,000 to FEDBIZOPPS website
-           Active or archive search by dates and/or
o   Type of Notice
o   Solicitation or award number
o   Place of performance zip code
o   Set-Aside type
o   NAICS/FSC/PSC
o   Key words
o   Selected Agencies
  • Register for Vendor Notification Service by:
-          Specific solicitation number
-          Same selections as above
-          All notices (caution)
 
VI. Contract Methods (NOTE: Dollar thresholds change for contingency & commercial contracts)
  • Micropurchases
    • Not advertised - <$3,000
  • Simplified Acquisition Procedures (SAP)
    • Not advertised (sometimes posted locally)
    • Oral or Request for Quotation (RFQ)
    • Normally reserved for small businesses
  • SAP
    • Advertised in FEDBIZOPPS
    • Oral or RFQ
    • Normally reserved for small business set-aside
  • Formal / Large Contract
    • Advertised in FEDBIZOPPS
    • Invitation for Bid (IFB) or Request for Proposal (RFP)
    • Set aside if > 2 capable 8(a) / HUBZone / SD-VOSB / SB will submit offers @ fair market price
 
VII. Competition Requirements
  • Full & Open Competition: All responsible sources are permitted to compete
  • Full & Open Competition After Exclusion of Sources: Establish or maintain alternative sources, 8(a) competition, HUBZone / SD-VOSB / small business set-asides
  • Other Than Full & Open Competition: Sole Source, Urgency, Industrial mobilization, International agreement, Authorized or required by statute (includes 8(a), HUBZone, SD-VOSB), National Security
 
VIII. Basic Small Business Programs
  • Small Business (SB)
    • Located in U.S., organized for profit, including affiliates is independently owned and operated, not dominant in field of operations in which it is bidding on Government contracts, AND meets Small Business Administration (SBA) size standards included in solicitation. Size standard is based upon the North American Industrial Classification Standards (NAICS) assigned to the specific procurement dependent upon product/service purchased.
  • Woman-Owned Small Business (WOSB)
    • Small Business, at least 51% owned by >1 women, AND management & daily business operations controlled by > 1 women.
  • Small Disadvantaged Business (SDB)
    • Small Business, unconditionally owned & controlled by >1 socially & economically disadvantaged individuals who are of good character & citizens of the US and SBA-certified.
  • Small Disadvantaged Business 8(a) Certified [8(a)]:
    • Small Business, SBA-certified as SDB, AND SBA-certified into the 8(a) Business Development Program for a period of 9 years
  • Historically Underutilized Business Zone (HUBZone)
    • Small Business, owned & controlled >51% by US Citizens, SBA-certified as a HUBZone concern (principal office located in a designated HUBZone & > 35% of employees live in a HUBZone.
  • Veteran-Owned Small Business (VOSB)
    • Small Business, Veteran-owned as defined in 38 USC 101(2), >51% owned by >1 veterans, & management/daily operations controlled by > 1 veterans.
  • Service-Disabled Veteran Owned Small Business (SD-VOSB)
    • Small Business, veteran-owned, >51% owned by > 1 service-disabled veterans, AND management & daily business operations controlled by > 1 service disabled veterans OR, in the case of a veteran with a permanent & severe disability, the spouse or permanent caregiver or such veteran, AND with 0% - 100% service-connected disability as defined in 38 USC 101(16) & documented on DD214 or equivalent.
  • Historically Black Colleges & Universities (HBCU) / Minority Institution (MI)
    • HBCU is an accredited institution established before 1964 whose principal mission is education of black Americans. MIs are institutions meeting requirements of Higher Education Act of 1965 and Hispanic-service institutions defined at 20 USC 1059. The Secretary of Education must designate HBCUs / MIs. See List
 
 
VIII. Process for > $100,000 Actions:
 
  1.  Acquisition Planning & Market Research
  2. Solicitation Advertised Electronically
  3. Solicitation Issued Electronically
  4. Submit Bids/Proposals Electronically
  5. Bids/Proposals Evaluated
  6. Oral Presentations (if required)
  7. Negotiations (if required)
  8. Subcontracting Plan Final Approval (Large Businesses only [if required])
  9. Award
  10. Debriefing (Negotiated acquisitions [if requested])
  11. Performance & Successful Completion
 
IX. SMALL BUSINESS CERTIFICATIONS
  • Small Business
    • Self-certify
    • Set-aside Authority
  • Woman-Owned Small Business
    • Self-certify (may change)
  • Small Disadvantaged Business [Includes 8(a)]
    • SBA Certify
    • 8(a) set-aside & Limited sole source authority
  • HUBZone
    • SBA certify
    • Set aside & Limited sole source authority
    • 10% price evaluation preference may apply
  • Service-disabled Veteran Owned Small Business
    • Self-certify
    • Set aside & Limited sole source authority
  • Veteran Owned Small Business
    • Self-certify
 
X. Small Business Federal Policy (FAR 19.201)
  • “It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small businesses…concerns. Such concerns must also have the maximum opportunity to participate as subcontractors…”
 
Reference Links:
 
Procurement Technical Assistance Centers
337-482-6422
800-206-3545 (toll free)
SBA LA District Office      Jo.lawrence3@sba.gov
 

 

 

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