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How to Position Your Business to Secure Government Contracts

Marissa LevinCEO, Information Experts

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Agenda• My Credibility• Identifying Your Product or Service• Getting on Schedule Based on What You Provide• Registering in the Right Places• Identifying the Right Agencies• Establishing Relationships With The Right People & Groups• Initiating Subcontracting Relationships• Identifying Procurement Opportunities: Myths and Reality• Winning Business• When Not to Bid• Win Probabilities/Statistics• Ten Biggest Contracting Mistakes• Lessons Learned/Words of Inspiration

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My Credibility

• IE in 1995• Home-based• One employee• Instructor-led

training• Documentation• Online help• Tactical• Small telecom

client base• Sales = $57K

• IE in 2009• Office-based• Approx. 45 FTEs, as well as PTEs

and consultants• Full suite of strategic

communications, education, and HC services

• Tactical and strategic• 15 agencies; commercial presence• Sales = $10 million (approx)

Identifying Your Product or Service

Select your North American Industry Classification System (NAICS) code:http://www.census.gov/eos/www/naics/

Select your Federal Supply Classification (FSC) code:http://www.dlis.dla.mil/h2/

Determine your small business size standard based on NAICS code:http://www.sba.gov/contractingopportunities/officials/size/index.html

Registering in the Right PlacesGet a DUNS number, assigned by Dun and Bradstreet. It is free for

government contractors.http://fedgov.dnb.com/webform

Register in Central Contractors Registration:http://www.bpn.gov/ccr/- Pro-Net registration- CAGE

Complete an Online Representations and Certifications Application (you need to be in CCR first):

https://orca.bpn.gov/

Getting on Schedule Based on What You Provide

Review the GSA Schedule Solicitations to determine the applicable GSA Schedule and corresponding solicitation number under which the supplies or services may be offered.

Search GSA eLibrary by keyword to identify supplies or services covered by GSA Schedules. 

Review the Schedule List in GSA eLibrary to determine the applicable GSA Schedule under which the supplies or services may be offered.

Visit FedBizOpps to search for and obtain a copy of the GSA Schedule solicitation. Download the solicitation and follow the instructions in the document.

www.gsa.gov – select GSA Schedules

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• Research which agencies have a need for your product or service.• Focus on one or two agencies. Concentrate your efforts on going

deep into an agency, rather than wide across the government.• Conduct competitive analysis. Where are your competitors doing

business? What work are they performing? With whom are they partnering?

• Attend vendor outreach sessions, OSDBU events, and networking events sponsored by government networking groups.

• Make an appointment with the small business offices of the agencies you are targeting.

• Download the agency forecasts and the contracts awarded. • Study FBO for contracts awarded.

Identifying the Right Agencies

Establishing Relationships With The Right People & Groups

• People buy from people.

• Strongly consider subcontracting. The best way to begin a relationship with the government is as a subcontractor. (more on this.)

• Join industry and government contracting groups.

• Meet with the OSDBU specialists.

• Attend government conferences, breakfasts, and vendor outreach sessions.

Initiating Subcontracting Relationships• People buy from people. • Strongly consider subcontracting. The best way to begin a relationship

with the government is as a subcontractor. It provides you:• A mentor• An ability to learn the process of government procurement from

someone who has the process established• An opportunity to meet other successful contractors• An opportunity to build past performance• An opportunity to build the infrastructure that you will need to work

with the government (specifics coming later in presentation)http://www.sba.gov/subnethttp://www.sba.gov/aboutsba/sbaprograms/gc/contacts/gc_subcontracts_opportunities.html

Identifying Procurement Opportunities: Myths and Reality – INPUT/FedSourcesPros• Comprehensive dynamic database• Access to competitive intelligence• Access to information about every agency• Can track procurements through every phase of the lifecycle – from

pre-solicitation to award

Cons• Expensive• Volume of data can be overwhelming• Not always accurate• If you do not have a dedicated resource and internal process to

mine the data and create action plans, you will not use it.

Identifying Procurement Opportunities: Myths and Reality - FBO

Pros• Comprehensive database• Access to information about every agency• Can track procurements through every phase of the lifecycle – from

pre-solicitation to award• Can see what other vendors are interested in opportunities• Every agency uses it• Agencies track interested vendors• Good tool to research what contracts are coming up for re-compete

and what opportunities have been awarded. • FreeCons• Once an opportunity is posted on there, it is usually too late to market

the agency. The agency can not meet with you once it is posted.

Winning Business – The Government Process

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 9. (Large business only, if required) 10. Award 11. Debriefing 12. (Negotiated acquisitions, if requested) 13. Performance & Successful Completion

Winning Business – Being a “Responsible” Vendor

•Government may award contracts to “responsible” contractors only.

•Responsibility is a pass/fail determination made by the CO after the contract has been competed, but just before the contract’s award.

• Contractor must:•(1) have or be able to obtain the financial and material resources to perform the contract; •(2) have or be able to obtain the requisite experience, managerialability, and technical skills to perform the contract; (3) have a satisfactory performance record; (4) have a satisfactory record of integrity and business ethics; and(5) be able to comply with the contract’s performance, schedule, considering all of the contractor’s existing business commitments.

Winning Business – Deciding on a RFP•Reread the RFP.

•Create an outline of the RFP and delegate people to handle different sections. If you are the sole person responsible for writing the RFP, be sure to take notes on where you need to gather and prepare the required information.

•Create a timeline or calendar where you set goals and deadlines for each section of the proposal.

•Contact the buying office and ask for the evaluation criteria that the office uses to measure proposals. While you have the buyer or contracting official on the phone, clarify any questions you may have and ask if there is anything else you need to know.

- Onvia

Winning Business – Responding to a RFP

• Is the proposal formatted according to the instructions?

• Have you presented a plausible solution in the proposal?

• Is the proposal organized and does it respond to the basic layout requirement?

• Are all other proposal requirements met?

• Have you provided an acceptable delivery schedule?

• Have you demonstrated your capability to perform?

- Onvia

Winning Business – Responding to a RFP

• How have you demonstrated your related experience or past performance history?

• Is your financial situation stable?

• Are you proposing a reasonable price for the project?

• Are your costing methods credible?

• Will you need the help of subcontractors? If there is a part of the contract for which you will need assistance from an outside source, be sure to outline it in your proposal.

- Onvia

Winning Business – Writing a Winning Proposal

•How detail-oriented is the agency?

•Are references important to the agency? You will need to plan ahead.

•Is a price proposal required? If so, you need to be prepared to organize your government proposal in conformance with the applicable rules and regulations.

•Are your capabilities a perfect or near-perfect match with the requirements? Consider what missing goods, services, or resources would need to be filled by a subcontractor, if any.

•Is there an incumbent contractor? Incumbents often have a leg up to re-win their contracts. You may choose not to write a government proposal unless you know the prospective customer is unhappy or you have special knowledge of the procurement. - Onvia

When NOT To Bid•The opportunity is not consistent with your company’s strategic plan •Funds are not available to pursue the bid

•Can’t get the right companies for the team

•No available/acceptable key personnel candidates

•Insufficient proposal resources

•Strongly positioned low cost bidder emerges

•Unacceptable contract terms and conditions

•Key client relationships have not been established

- Onvia

Win Probabilities/Statistics•Blind bid - new market: 1-5% •Blind bid - established market (current client): 10-25%

•Well positioned bid - new market (new client): 20-30%

•Well positioned bid - established market (current client): 25-50%

•Re-compete with satisfied client: 75%

•Sole source to company or recent win contract growth: 50 - 90%

Win probabilities and expected award dates should not be overly optimistic since they impact revenue projections.

The purpose of the government bid decision process isn’t just to reach a yes or no conclusion. The real value is the identification of your company’s strengths/weaknesses in relation to the bid requirements and competition.

Ten Biggest Contracting Mistakes1. You didn’t actually read your entire contract;

2. Your performance was not world class and you didn’t focus on your customer;

3. You took direction from unauthorized officials;

4. You didn’t comply with quality control or quality assurance requirements and specifications in your contract;

5. Instead of following what was in your written contract, you listened to verbal promises and direction;

Ten Biggest Contracting Mistakes6. You failed to deliver on time as required by the delivery

schedule and thought the government would deem this acceptable;

7. You didn’t invoice properly, in accordance with the requirements of your contract;

8. On multiple award schedule (MAS) contracts, you didn’t give most favored customer pricing to the government throughout the entire life of the contract;

9. You volunteered to perform extra work with the erroneous expectation of being paid; and

10.You failed to flow down your FAR clauses to your subcontractors and suppliers.

-Fedmarket.com

Planning for Inevitable Setbacks Accurately and objectively evaluate the situation Be ruthless in your cost reductions Analyze cash flow Maintain a winning attitude Seek assistance and support – whomever you need to make it through Improve your skills Maintain good health Take it one day at a time Know that you are not alone, and that things will get better Give yourself time to heal and recover

Failure is not an option. When you are in the middle of the ocean, you have to keep swimming.

• Remain focused, but continue to evolve

“Be guided first and foremost by one’s own internal compass, not by the practices, conventions, trends, fads, fashions, and buzzwords of the outer world.”

--Built to Last by James Collins and Jerry Porras

Know Your Core Competency

“You can’t just keep doing what works one time, because everything around you is always changing.

To succeed, you have to stay out in front of that change.”

--Sam Walton

Evolve With Your Industry

• Create a support system of experts“Knowledgeable boards can make a world of difference

by helping to set an organization’s strategic direction and infusing it with valuable expertise…Boards are

increasingly recognized as critical success factors for companies large and small.”

--the Board Book by Susan Shultz

Reach Out For Help

• Strive to become a commonly recognized name

“In the 21st century marketplace, the companies that will flourish are those that will overcome today’s business obstacles by building great brands – brands that are widely recognized, desired, trusted, and enduring.”

-- A New Brand World by Scott Bedbury

Be Visible

“Customers are constantly presented with lots of options to help them solve their problems. They don’t buy

things, they buy solutions. The surviving and thriving business constantly seeks

better ways to help people solve their problems. To create “betterness” requires knowing what customers

think betterness should be.”--Theodore Levitt

Know Your Customers

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Thank You!• Marissa Levin• CEO, Information Experts• 703-787-9100• mlevin@informationexperts.com• www.informationexperts.com• www.twitter.com/marissalevin• http://www.examiner.com/x-12152-DC-Womens-Entrepreneurship-

Examiner• http://smallbusinessblog.yahoo.com/profile?name=marissalevin• http://www.womengrowbusiness.com/tag/marissa-levin/• http://www.youtube.com/watch?v=zNzeIP_SSTE