contracting with government discussion from the trenches cecelia mccloy, president integrated...

Contracting with GovernmentDiscussion from the trenches

Cecelia McCloy, PresidentIntegrated Science Solutions, Inc.

© ISSi

Who buys all these products or services?

• Cabinets• Cattle• Nuclear Engineering services• Rocket propellant• Processed cheese• Containers• Bricks• Paper• Microbiologic Services

April 2008 Alliance West 2© ISSi

Is the Federal Government a Customer for me?

The numbers are impressive• 2006 - $300B in contracting• 23% contracting goal to small

businesses•Goals for SDV; Minority; WOBs; Hubzone

• Services and Products bought are extensive

• BUT -It is difficult to do business with the federal government


It Will Cost You to Play

• Marketing will take $$$ and time• Identifying an opportunity to getting a

contract can be anywhere from 6 months to two years•Start small – look at subcontracting opportunities•Build your past performance

• Bidding can be expensive – Responding to a Full Request for Proposal as prime bidder•$25,000 to $55,000 (SB prime contracts)•Many hours of work with a multiple volume set•Need the right people to bid and to run the

contract•Need the right operational systems to perform


Plan

• Which agencies buy my services and/or products?

• What are my services or products? Past Performance

• All agencies have public web pages, review them• Some agencies have procurement forecasts• All agencies require large business prime

contractors to have small business plans• Is a GSA contract an option

• What should my win strategy be?• Some agencies are friendlier to small businesses

then others – learn who they are• Network, Network, Network• Ask – Why would someone want to team with me?


Plan

• How to I find opportunities?• Monitoring the Web

• www.Fedbizopps.gov• Try a private government bid portal

• Work with the Small business representatives from the agencies

• Attend Industry Days or Outreach Events for Agencies

• Use the Small Business Administration and affiliated organizations


http://www.fedbizopps.gov/

Plan

• Identifying – Bidding – Winning• Design your strategy to ensure a Win

•What is the true likelihood of a Win• Is there an Incumbent? Is the agency

happy with them?•What does it take to win? Best Value?

Low Price?•Does this opportunity match my

business?

• Should I team?•Do I have a history with this customer?

Do they know me? Can I do all the work? Strategic Partnering?


Downside to Working for the government

• Bidding process is long and can be complicated

• You may need to hire help!

• There are lots of rules• Federal Acquisition Regulations (FARs)

• There are implications for your business processes (accounting, time charging, benefits)

• Maybe initial cash flow issues • Margins are not large on

government contracts – longevity vs. profits <10%


Benefits of Federal Government Contracting

•Stabilize your Cash Flow•Contracts are often of long duration

• 2 to 10 years not unusual•Government Experience can raise the bar on your company operations•Hire key personnel•Providing a needed service to your community


ISSi story

• First federal contract $300,000 as a subcontractor in March 1999

• First opportunity bid as major subcontractor July 1999 and won but delayed contract startup until Nov. 2000

• First win as prime contractor in March 2005 - Bid was in August 2004• First invoice paid after initial 70 days• Carried payroll of 22 staff on contract


ISSi story

ISSi Gross Revenue

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Revenues

© ISSi

Conclusion• Know why you want to work for

the Federal Government or government contractor

• Make sure you have identified a viable bid opportunity

• Make sure your company can withstand the cash flow issues

• Make sure you have the financial and operational systems in place when you win

• Don’t hold back - WinApril 2008 Alliance West 12© ISSi

contracting with government discussion from the trenches cecelia mccloy, president integrated...

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