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International Association of U.S. Government Contractors. www.IAUSGC.org. What are you doing differently NOW to return your company to greatness?. Purpose For Today is for You to Find….
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International Association of U.S. Government Contractors www.IAUSGC.org What are you doing differently NOW to return your company to greatness?
Purpose For Today is for You to Find… • You can grow your small business by winning $100,000s in Federal Contracts in the next 4-6 month. • And it’s easier than Commercial business... • Without bidding • Without red tape • Without expensive consultants
Three Big Ideas in Federal Contracting • Just Show Up - Discuss the Myths • Show Up Perfectly - 3 Registrations • Show Up Properly - 2 Ways to Win
There’s Really Only One Question…. • How can I grow my business?
What are you doing differently… to grow this Year? • Attending Trade Shows & Expos? • Going to Networking Events? • Hiring Salespeople? • Getting found on the Internet? • Doing Social Media? • Post Cards, emails, telemarketing
And What’s It Costing You? • Time – Hours and Hours per day • Money - $1,0000s • Brain Damage…
Let’s Compare the Federal Contracting to Your Best Ideas • FEDERAL GOVERNMENT • “The biggest customer in the world!”
What if you find… • That the Cost is $200,000 to Win the $100,000 Contract Would you still be interested?
How Much is the Investment to Win $100,000s in Federal Contract in 4 – 6 months? • Most Are Prepared to Invest: $5,000 per Year • Fortunate Few willing to Invest: $10,000 Per Year • Few on a limited or fixed budget who can’t go higher than $4,000 Less than $10 1 hour / day
About IA U.S. GC IA U.S. GC Vision For every small business owner to be victorious in life and business. IA U.S. GC Mission To enable and educate every small business to win federal contracts without bidding , red tape, or expensive government consultants. IA U. S. GC Slogan What are you going to do differently this year to return your company to greatness?
Chip Ellis Association President • 10 Start-ups in over 50 countries • US Chamber of Commerce employee • University of Michigan Business School
Personal In South Florida since 1998 EDUCATION:University of Houston – BS in Chemical Engineering University of Tennessee – MS in Polymer Engineering Master in Business Admin • A SERIAL ENTREPENUR • Operated Multiple Small Businesses – Owned many. • Chemical & Cosmetic Factories - BENCA • Fast Food Franchising – Mister Sandwich (5 Stores) • Satelivision – Satellite Dishes and TV station Design • CABLEVISION in Venezuela – 20 Channels • ABC Cellular in Venezuela - Motorola • VirualComm - Miami / South America • Legal Shield – USA/Canada
Fact #1: 4,600Federal Agencies and Sub Agencies Post Offices FBI
Fact #1: • Thousands of federal buildingsare located locally!!!
Secret #1: Just Show Up • Fact # 1: • Regular Federal Spending: $530 Billion • Federal Stimulus Spending: $200 Billion • Total Market Size - Spend over $700 Billion!
of the Money! 23% 23% 23%of the 730 B spending has been set aside for small businesses!
Small Business Set asides! • Fact # 2: • Credit Card Purchases • $40 Billion Dollars
Small Business Set asides! • Fact # 3: • The law says 100% of Federal Contracts less than $150,000 is set aside for you, the small business! 91.5%are under $150,000!
Fact: Last year small businesses only received 21%....why? We Did Not Apply!
It will take years and cost me a fortune. The FEDS don’t buy what I sell. They won’t buy from little old ME!!! There is too much red tape… and they pay slow! 4 Biggest Myths
Two Resources to Enter Federal Market Consultant Model IA U.S. GC Coaching Model • $3,997 6 months of coaching • We Teach EVERYTHING! • Agenda: COACHES not Consultants. • $8,000 2 ½ day seminar • Don’t teach EVERYTHING • Agenda: Sell $10k - $20k per Month Consulting Contract
Federal Government Buys Everything Agriculture, Forestry, Fishing Information / Telecom Mining Real Estate Utilities Professional Services Construction Management Consulting Manufacturing Waste Management Wholesale Trade Heath care Retail Trade Arts, Entertainment Transportation & Warehousing Food Services Hospitality / Travel Scientific Services
They MUST Buy From Small Companies 23% of the Money is set aside! ALL contracts under $150,000!
Myth 4 – Pay Slow Must pay by LAW in 30 days!
2. Show Up Perfectly • Biggest mistake: CCROnly • Register in 3 Places (All FREE!) • CCR.GOV- (CAGE Code ) • ORCA (After CAGE) • SBA Small Business Dynamic
PTAC: Best Kept Secret! • PTAC: www.APTAC-US.org
3. Show Up Properly • Two Types of Federal People • End Users • Buyers • Two Types of Federal Contracts • Bids • Non-competitive set asides (No-bid) • P-cards (Credit Cards) • Tests
End Users • Similar to Commercial Customers • Have the “Use it or Lose it” Budgets • Have the Need for Your Product • Buyers Purchase for End Users • 5 Million of Them Purchase Using P-Cards (Credit Cards!)
Buyers • Buyers Buy Two Ways: • 1. Competitive Bids • 2. Non-Competitive Tests • Don’t Know the Budget • Buyers Purchase for End Users • 1000s of Buyers Purchase Using Bids and Tests
Types of Federal Contracts: Competitive Bids • Red Tape • Must complete Bid specification • Only win if you have … • Federal Experience! How Can You Get Experience If You Can’t Win A Bid Without Experience?
Why Do You Need Experience To Win A Bid? • Buyers Can Lose Their Job! • Evaluated every 90 days • No obligation to go low bid! Federal Buyers Are Afraid of the Low Bid!
Buyers Get Fired A Second Way…. • Not Enough • Small Business Check Marks!!! Catch 22 For the Buyer! Need small biz check mark AND small biz don’t do what they say!
Types of Federal Contracts: Test Contracts • No Red Tape! • No Bid Specs to Fill Out! • No Competition! • No Evaluation for Buyer! • Overcomes Buyer Catch 22: • Small Business Check Mark • Without Worry of Contract Evaluation!
5 Step Test Process • Buyer calls YOU • Meet End User • Normal Need Analysis • Find out budget (Use it or Lose it) • Present Normal Proposal
Buyer Calls You -3 Ways to Test • Direct Purchase • Subcontract • Teaming (Your new favorite word)
3 Ways to Win a Test • Direct Purchase • Normal Services & Products
3 Ways to Win a Test • 2. Subcontracting • 31.7% of Big Company’s Contract • Even if they are laying off!
3 Ways to Win a Test • 3. Teaming • Small brings Big Company • <$150,000 & End User needs Big • Time is of the essence • Buyer has not met Small Biz Goals
So…Can You Win A Bid? No! They won’t risk their Job!
Can You Win a Test? YES! $10 Billion Dollars Won in TESTS in 2011!
It Get’s Better!!!! End-User P-Card Purchases • No-Bid Credit Cards • End Users Have Credit Cards • Non-Competitive • No Red Tape • Normal Proposal • $25,000 - $100,000 Credit Limit
Can You Win a No-Bid Credit Card Contract? YES! $40 Billion Dollars Won in P-Cardsin 2011!
Total Non-Competitive Set Asides in 2011 $40 Billion Dollars in P-Cards (Credit Cards) $10 Billion Dollars in Tests $50 Billion Dollars Without Bidding or Red Tape!!! Without Bidding, Red Tape ….or Competition!!!!