Every contract award is like winning the Super Bowl

1. Closing the Gap by Teaming: Preparing Small Business Owners to Contract with the Federal GovernmentPresented by Tony Price 14 August 2013

2. Every contract award is like winning the Super Bowl • Every new request for proposal is a new Super Bowl • You will not win every Super Bowl but it sure is nice being in the game

3. Overview of Federal Government Contracting • USA – LARGEST Procurer of Supplies and Services Worldwide • Around 2,000 buying agencies in the Federal Government • USA – Spends $570+ Billion of Annual Budget on Goods and Services • DoD spends $361.3B or about 65% of that • USA – Statutory Minimum 23% of Annual Spending to ALL SBs via 15 USC 644(g) • If Small Businesses want to be “in the game”, they must know how to “play the game” – to successfully “COMPETE and WIN”! You cannot win without a strong and well-rounded team.

4. The GAME The PROCESS The RULES The PLAYERS The STRATEGY Procurement of All Supplies and Services for the United States Federal Market Federal Acquisition SYSTEM 3 Branches of Government Checks / Balances Taxpayer Funds Annual Appropriations Federal Acquisition Regulations (FAR) and its Supplements Acquisition Central www.arnet.gov Buyers: Contracting Officers Sellers: Prime Contractors, Subcontractors, Vendors Developing a Competitive Winning Proposal Document The Federal Procurement “GAME”

5. Government and Commercial Procurement • Four main differences between Government and commercial procurement: • Government-unique audit and accounting requirements • Government-unique specifications and standards • Technical data rights • Government-unique contract requirements

6. Government Commercial Orientation of Procurement Performance and Social/Economic Best value/low cost Procurement Structure Formal defined by FAR Less formal Role of Congress/ Judicial Branches Provides direct input and guidance Uniform Commercial Code (UCC) Commitment Authority Actual Implied Acceptance Final and Conclusive Flexible Termination Clause No anticipatory profit/fee Usually contains anticipatory profit/fee Suspension of Work Cost recovery, no profit/fee Profit/fee not prohibited - negotiable Contract Litigation Federal law prevails State law prevails Government and Commercial Contracting

7. Tips On Doing Business with Federal Agencies “ or with anybody else for that matter” Tip #1 - Do your homework…Surf the web. Tip #2 - Demonstrate responsiveness Tip #3 - Understand the opportunities Tip #4 - Let the client talk. Listen carefully to what they have to say. Tip #5 - Market project managers, they know the clients and they are the folks bringing in the money

8. Tips Continued Tip #6 - Execute and execute well Tip #7 - Bad performance is a death sentence to a small business Tip #8 - Small businesses are important but not at the expense of quality Tip #9 - Find your own work Tip #10 - Demonstrate that you know what you are doing

9. So where do you start? • Know yourself: Understand your capabilities (superior product, competitive pricing, outstanding customer service), Be realistic • Determine your market (geographic, etc.) • Know your customer: Do some homework (see next slide) • Federal Procurement Process • Websites • Small Business Administration • Other advocacy agencies (SBDCs/PTACs) • YOUR SMALL BUSINESS SPECIALIST

10. So what can you do? • Visit potential clients • Get to know your clients’ business • Ask what “keeps them up at night” • Study the money • Don’t forget your subcontractors

11. What are “they” looking for in a contractor? • Highly qualified and capable firm • Address all criteria • Fully articulate your approach • Relevant experience is key • Fully address any weaknesses • Past performance will be important

12. High quality past performance Financial stability Excellent reputation Reasonable costs Good safety record Reliability Customer focus Responsiveness Relevant experience Quality management and people Able and willing to take on new work Willingness to strive for a win/win situation Ability to work as a team What do Primes look for?

13. Capability presentations • Arrange thru your small business specialist • Sell your capabilities • Product demos • Reference material (brochures, pamphlets, line cards) • Get a debrief/feedback • Follow-up

14. Marketing • Same techniques apply when marketing to large, prime contractors • If practicable get general information on an activity before you visit • Who should you talk to or meet with? • Respect “Chain of Command”or protocol • Prepare – review web-sites, etc. • Consider what can your business can do for them?

15. Marketing • Networking • Chambers, small business groups, professional societies (SAME) and organizations • Attend seminars or hold your own (be a speaker at industry functions) • Networking with competitors • News releases • Your website • Always carry business cards • Referrals • Ask current clients to refer you to others

16. Marketing • It’s not only who you know that counts, it’s who your clients know that is important, too. • Relationships can be more important than the product or service sold (especially in a competitive market). • Learn to accept rejection gracefully . • Do you believe in your product and company? • Would you do business with yourself?

17. Outreach conferences • Who sponsors Outreach Conferences? • Members of Congress • Various Government Agencies • Chambers of Commerce • Vendor Days (local emphasis) • Government Credit Card • Information Technology, Furniture, etc • High Tech or Environmental • Focused Events- Specific Audiences targeted • Specific Acquisition (Pre-solicitation) • Specific small business group (WOSB, 8(a), Vet)

18. Subcontracting • The Small Business Act requires that small business firms have maximum opportunity to participate as subcontractors on Federal contracts • Small Business • Small Disadvantaged Business/8(a) • Historically Black Colleges and Universities (HBCU/MI) - applies to DoD • Women-Owned Small Business • HUBZone Small Business • Service Disabled Veteran-Owned Small Business • Veteran-Owned Small Business

19. Customer Solicitation Type Procurement Offeror (or Bidder) Proposal Due Date Now how do I get started …? U.S. Federal Government Department or Agency Request for Proposal (RFP)(FAR Part 15) Complex Services or Manufactured Products Based Upon Specs/Dwgs, or Performance Description > $1M Service Disabled Veteran Owned (SDVO) Prime Contractor Dedicated Team Member 30 Calendar Days from Receipt of RFP Proposal Case Study - Assumptions

20. Breaking Down the Proposal Requirements How to Analyze the RFP … • Read the Entire Document as a Whole • Dissect the Statement of Work (SOW), Specifications, Drawings, Technical Descriptions • Develop Work Breakdown Structure (WBS) • Review the RFP Instructions & Evaluation Criteria • Responsiveness v. Responsibility

21. Breaking Down the Proposal Requirements How to Analyze the RFP … • Relate the Source Selection Process with the Proposal Development (Point to Point) – Don’t Miss ANYTHING! • Develop a Compliance Checklist • Correlate Each Requirement to an Evaluation Criteria • Develop a “Proposal Outline” Handout for the Kick-off Meeting • Submit Request for Information" (RFI's) as outlined in the solicitation instructions if the specification is not clear. RFI's usually cut-off about 2-5 days before solicitation closes.

22. Identifying the Team Members • Identify the Best Available Candidates for the Proposal Team • Make Writing Assignments with Members Strengths in Mind • - THIS IS NO TIME TO EXPERIMENT OR TRAIN - • Technical (or Engineering) Specialist • Management/Operations Specialist • Estimator or Cost(s) Analyst • Contracts Specialist • Logistics/Procurement/Small Business Specialist • Quality/Environmental Health & Safety (EH&S) Specialist • Past Performance/Projects & Resumes Specialist • Expert Word Processor • Graphics Designer/Artist • Editor & Proof-Reader • Proposal Coordinator

23. Identifying the Team Members • Don’t Overlook the Need for: • Consultants – Subject Matter Experts (SME) • Fill Gaps in Team Manpower & Experience • Add Expert Support in Niche Areas • Provide Inside Knowledge of Customer & Competitors • Teaming Partners – Large & Small Business Providers of Supplies and Services • Exclusive v. Non-Exclusive • Formal v. Informal • Dedicated Subcontractor/Supplier Competitive Pools • Reproduction Function - Internal or External • Overnight Courier or Other Transportation Carrier

24. Selecting the Team • Selecting Teaming Partners • Assess team member capabilities • Business, financial, other resources • Assess team member past performance • Assess team member past performance with the client • Assess team member relationship with the client • Assess legal constraints • Organizational conflicts of interest • Debarments/suspensions • Qualification requirements • Assess team chemistry • Management styles, corporate cultures, strategic visions • Successful Teaming Qualities • Compatible contractors • Good teaming agreements in place

25. Teaming • Why would small businesses want to team? • Enables firms to complement each others capabilities • May enable firms to offer the best combination of performance, cost and delivery • May enable small businesses to successfully compete for larger scale contracts • To develop relationships and capture work on multiple opportunities

26. Teaming • Most teams are either: • Prime/Subcontractor relationship • Joint Ventures • Prime/Subcontractor Relationship: • Prime is responsible for contract performance • Government has privity of contract only with the prime • Relationships normally identified before offer is submitted • SBA checks for affiliation

27. Following Award - Debriefs and Lessons-Learned … • When the Customer Announces the Contract Winner – Always Request a Debrief – WHETHER YOU WIN OR LOSE … • As the Winner – • Learn About What You DID BETTER than Everyone Else – Strengths • Learn About What May Need Improvement for the Future – Weaknesses • Continue to Develop a Better Relationship with the Customer • Build Customer Trust and Show Humility • Begin to Cultivate Follow-On Work – It’s never too early • FIX THE WEAKNESSES IDENTIFIED IN THE DEBRIEF!

28. Following Award - Debriefs and Lessons-Learned … • As the Unsuccessful Offeror – • Learn about the Proposal Weaknesses v. the Proposal Strengths • Learn more about What the Customer Really Wants and Why You Didn’t Provide it THIS TIME ….. • Continue Gathering Business Intelligence (BI) • Request Info regarding New Opportunities – It’s never too early … • FIX THE WEAKNESSES IDENTIFIED IN THE DEBRIEF!

29. ARNET – Acquisition Reform Network BAA – Broad Agency Announcement BD – Business Development BI – Business Intelligence CCR – Central Contractor Registration DFARS – Defense FAR DHS – Department of Homeland Security DoD – Department of Defense EH&S – Environmental, Health, & Safety EO – Executive Order FAR – Federal Acquisition Regulations IFB – Invitation for Bid FSS – Federal Supply Schedule FOIA – Freedom of Information Act GFY – Government Fiscal Year GSA – General Services Administration GWAC – Government-Wide Acquisition Contract ID/IQ – Indefinite Quantity/Indefinite Delivery MAC – Multiple Award ODC – Other Direct Cost(s) PL – Public Law RFP – Request for Proposal RFQ – Request for Quotation SB – Small Business SBA – Small Business Administration SDB – Small Disadvantaged Business SDVO – Service Disabled Veteran Owned SME – Subject Matter Expert SOW – Statement of Work UCF – Uniform Contract Format USA – United States of America USC – United States Code WBE – Women Business Enterprise WBS – Work Breakdown Structure WOSB – Woman-Owned Small Business www.militarywords.com Acronym List

30. Free/No-Cost www.sba.gov www.fedbizopps.gov www.grants.gov www.gsa.gov www.arnet.gov www.firstgov.gov www.defenselink.mil www.dla.mil/db/procurem.htm Paid Fee Sites www.epipeline.com www.eagleeyeinc.com www.input.com www.onvia.com www.bid-search.com www.softshare.com www.cch.com Business Opportunities Websites

31. Reference Materials – Self Study • Federal Acquisition Regulations (FAR) • FAR Part 10 – Market Research • FAR Part 11 – Describing Agency Needs • FAR Part 12 – Acquisition of Commercial Items • FAR Part 13 – Simplified Acquisition Procedures • FAR Part 14 – Sealed Bidding • FAR Part 15 – Negotiated Procurements • FAR Part 16 – Types of Contracts • FAR Part 17 – Special Contracting Methods • FAR Part 19 – Small Business Programs • Periodicals • National Contract Management Association Magazine & Journal • National Association of Purchasing Managers – Institute of Supply Mgmt. Magazine • National Defense Industrial Association Magazine • Government Executive Magazine • Websites • www.arnet.gov • www.firstgov.gov • www.acq.osd.mil

32. Questions? • Ask me now or, • call me at 410-688-5116 or • email your questions directly to: Tony.Price@PriceEnterprisesLLC.com