Government contracting encompasses the Federal, State and
Subcontracting marketplaces. Companies need to know the entry
points, protocol and procedure for each market.
The Federal Civil and Department of Defense Marketplaces
The
United States Government is unparalleled in its purchasing power.
As the world’s largest consumer of good and services, the federal
government awards contracts averaging $400,000 every twenty seconds.
The
United States Government is ready to do business, on a competitive
basis, with competent firms that can supply products and services as
required by manufacturing and/or delivery specifications and schedules.
Federal agencies are particularly interested in doing business with Small Business firms, Small Disadvantaged Business firms, Women-Owned Small Business firms, and firms in Labor Surplus areas. In fact, by law, federal agencies are required to award a minimum of 25% of all procurements to small businesses.
When
evaluating the federal marketplace, a business should consider the two
primary market segments: defense entities and non-defense or civil
entities. Both segments publish bid opportunities with an
estimated value of $25,000 or more at Fed Biz Opps (http://www.fedbizopps.gov/).
Vendors
interested in small purchase bid opportunities (valued at less than
$25,000) should contact the individual federal agencies.
The
following list includes the major federal agencies, individual
categories and their web addresses. After review the web sites of
interest, contact your local PTAC for assistance with marketing your
product or service.
Department of Defense (DOD):
Navy – http://www.abm.rda.hq.navy.mil/
Air Force – http://www.safaq.hq.af.mil/
Army – https://acquisition.army.mil/asfi/
Defense Logistics Agency (DLA) – http://progate.daps.mil/home/
Non-Defense Civil Agencies:
Department of Energy (DOE) – https://simplified-acquisitions.doe.gov/edi.nsf?opendatabase&login=1
National Aeronautics and Space Administration (NASA) - http://www.hq.nasa.gov/office/procurement/
General Services Administration (GSA) – www.gsa.gov/
Department of Health and Human Services (HHS) – http://www.hhs.gov/ogam/oam/procurement/hhsar.html
Department of Treasury (DOT) – http://www.ustreas.gov/offices/management/dcfo/procurement/
Department of Veterans’ Affairs (VA) – http://www1.va.gov/oamm/
Department of Commerce (DOC) – http://oamweb.osec.doc.gov/default.htm
Additional federal links can be found in the “Contracting Toolbox/Helpful Links” section of this web page.
Federal Government Contractor Registration
To
sell to a Federal agency, a business must register in the Central
Contractor Registration (CCR) system. After registration is
complete, a Trading Partner Identification Number (TPIN) or individual
vendor identification number will be assigned to the firm. To
register your firm in the CCR database, visit http://www.ccr.gov/.
Note:
that a Dunn & Bradstreet number must be assigned to your firm
before you can complete a CCR registration. To obtain a D&B
number, phone 800-333-0505.
If you require assistance with the registration process please call your local PTAC for technical assistance.
The Pennsylvania State Government Marketplace
The
Commonwealth‘s many agencies purchase a wide variety of goods and
services, with an annual procurement budget of over $4.5 billion dollars.
Generally contracting with the Commonwealth is a centralized
process managed by the Department of General Services (DGS). The
Department oversees procurement of goods and services, manages
non-highway capital projects and maintains numerous core operations of
state government, including managing the vehicle fleet, the Capitol
Police force, state buildings and facilities. DGS also serves as
the state’s real estate agent and insurance broker. To learn more about
how the Commonwealth procures its goods and services, visit the DGS web
site at: http://www.dgs.state.pa.us/
Commonwealth
acquisition procedures require that all contract opportunities (with an
estimated value over $10,000) for state agencies must be published on
the Department of General Services web site. Businesses interested in
doing business with the Commonwealth should visit the DGS web site at http://www.dgsapp.state.pa.us/comod/main.asp.
Commonwealth
Small Purchase bid opportunities (less than $10,000) can be found
directly by contacting the agency’s Purchasing Agent. Locate the
appropriate Purchasing Agent at the DGS Purchasing Agent search web
site: http://www.dgsapp.state.pa.us/comod/PurchAgt/search/searchPA.asp.
The Commonwealth’s contracting thresholds and procedures are outline below:
|
Authorized Thresholds |
|
Dollar Threshold |
Category |
Procurement Type |
General Action Needed |
|
0 - $3,000 |
Construction
Services Supplies |
No-Bid
Procurement |
In-person, telephonic or local purchase |
|
$3,000.01 - $10,000 |
Construction
Services Supplies |
Small, Informal Procurement |
3 telephone bids.
Must solicit one Minority Business Enterprise / Woman Business Enterprise |
|
$10,000.01 - $20,000 |
Supplies |
Delegated Formal Procurement |
Must Be Advertised
Local Bid/Local Award
IFB issued |
|
$10,000.01 - $100,000 |
Construction
Services Supplies |
Delegated Formal Procurement |
Must Be Advertised
Lowest Responsive/ Responsible Bidder |
|
$20,000.01 |
Supplies |
DGS Formal Procurement |
Must Be Advertised
DGS issued IFB |
|
$100,000.01 |
Construction
Services Supplies |
DGS Formal Procurement |
Must Be Advertised
Lowest Responsive/ Responsible Bidder |
|
Sole Source over
$3,000 |
Construction
Services Supplies |
Sole Source Procurement |
DGS Must Approve |
|
Emergency Procurement over $3,000 |
Construction
Services Supplies |
Emergency
Procurement |
DGS Must Approve |
PA State Government Contractor Registration
A
firm interested in selling to a Commonwealth of PA agency must first
register in the Imagine PA Database. After registration is complete, a
vendor identification number will be assigned. To register in the
Imagine PA database, visit http://www.vendorregistration.state.pa.us/. If you need assistance with the registration process, please contact your local PTAC.
Other State Government Marketplaces
When
evaluating the state government marketplace, a firm must consider that
each state is an independent market with its own procedures and entry
points. The following table provides web addresses for the 50
states’ primary procurement offices.
- Subcontracting to Government Prime Contractors
A
primary contractor is the actual recipient named in a government
contract. A government subcontractor is second- or third-tier
supplier of good and services to the primary contractor.
Subcontracting
or teaming with a prime contractor can be a profitable experience and a
growth opportunity for a business. If, after assessing your business’s
capabilities and capacities (see Getting Started/Is Government
Contracting for You? on site), you are not ready to bid competitively
for prime contracts, consider opportunities available through
subcontracting.
The experience gained from performing as a
subcontractor can assist you in responding to future solicitations as a
prime contractor. Subcontracting, however, should not be viewed only as
an opportunity for less experienced businesses, but also as a vehicle
to enhance your qualifications to become more competitive in performing
as a prime contractor.
Firms interested in subcontracting should review the following:
1. Research and know the company you are approaching.
- Use a company’s web site to gather information. This will not
only help you understand a company better but will impress them that
you took the time to learn about them. It just makes your job
easier!
- Determine the product or services you offer with the greatest impact for the potential buyer.
- Are there non-negotiable insurance or certifications required
to do business with them? Can you comply with them? If you have them,
let the company know.
- Find out if they realize their need for your product or
service? If not, be prepared to convince them that they need your
product or service.
2. Be specific about yourself.
- VERY IMPORTANT: Don’t say “We do everything.”!
- What can you offer to make the company more cost effective?
- Develop a plan. Again, be specific. What is your niche? What separates you from the competition?
- Don’t capitalize on your HUBZone, Woman-Owned, Disabled
Veteran, etc., status. Although this is important and helpful, it
doesn’t tell anything about your reputation, quality, or
capabilities. Instead, focus on what you do and how it will help
their company. Know your market.
- Keep them up to date on your capabilities and product
lines. Also, inform them of any awards or certificates your
company has obtained. Reference any successful contracts your
company has completed! This all builds credibility.
3. Look to form long-term relationships.
- Develop an alliance.
- Suggest teaming arrangements that benefit both parties long-term.
- Enter only teaming agreements that better promote your
company, as a viable and valuable partner that can make a company more
cost competitive. Remember they want to know how you can affect
their bottom line.
4. Request a visit.
- Meet with people who can assist you in accomplishing your goal, such as the administrative staff.
- Speak to the right people. Don’t waste your time or theirs.
- Be aware that owners or inventors are not always the best
people to market the company or products. Sometimes they’re too
close and have a hard time with criticism.
5. Make a presentation during your visit
- Request overviews containing active contracts or projects, proposed contracts or projects, and future markets.
- Prepare for EDI! Electronic Data Interface. Keep your
Pro-Net records current. Make sure the person listed as the prime
contact is knowledgeable about your business and reliable.
- If you are a service company, the basic rule of thumb for
Power Point presentations is; 5 Minutes - 5 Slides – 5 Bullets per
slide. Focus on what you do and know your market. A 30-second
speech can make or break you.
- Show financial stability.
- Be competitive and know your competition.
- Be active in the professional community. Attend trade shows.
- Follow up. Follow up. Follow up.
The federal government publishes a list of Major Prime Contractors at: http://www.sba.gov?gopher?Government-Contracting/Subcontracting-Directory
The
Small Business Administration manages a web site and database for
Primes to announce needs and Subcontractors to announce capabilities
at: http://web.sba.gov/subnet/