selling ability one in the current market

1 | 2013 NIB/NAEPB National Conference and Expo


SELLING ABILITY ONE IN THE CURRENT

MARKET

Larry AllenAllen Federal

Jim PhillipsCentre Consulting


START AT THE BEGINNINGThe Current Status of the Federal Market

Current Status of the Continuing Resolution CR’s and New Projects

Threat of A Debt Ceiling Crisis Still Looms

Sequestration Is Still With Us DOD Officials Estimate that 50% of the Acquisition

Workforce Has LESS Than 5 Years of Experience______ But The Government IS Open For Business Missions, Priorities, Emergencies Will All Have To Be Met


WHAT’S STRESSING YOUR FEDERAL CLIENT?

Pay Freezes

Shift From Furloughs To Possible RIF’s

Micromanagement From Congress and the IG Community

Traditional Factors: Bureaucracy, Shifting Mandates, Etc.


HOW TO MAKE THESE WORK FOR YOU

Be The Trusted, Reliable Supplier Walk That New CO or CS Through The Process, Don’t Assume They Know! Position Yourself as a Business Partner - If you don’t have it help them find

it

Stress Experience in Market Speed of Need, Quality Items, Great Values Monitor/reinforce exceptional past performance record

Listen To Their Story First, Then Tell Yours Everyone has a “hot button” – Understanding a buyer’s hot button allow you

to differentiate yourself from others.

Help Solve Other Problems When You Can


CHANGES TO SUPPLY & ACQUISITIONWhat They Mean To You

Office Products, Jan/San & Other FSSI Programs More on this follows

GSA 3PL Plans

Single Agency “Total Solutions” Contracts

LPTA Buying

Small Business Goal Pressure


HOW DO YOU CONFRONT THOSE CHALLENGES?

Tell The Ability One Story Put a Face With a Name Disparate Economic Impact One Pager New Staff Be Unfamiliar With Ability One Requirements

Target Specific Agencies Past Successes Existing and New Relationships

Stress Best Value, Quality of Product, Secure Supply Chain Form Strategic Alliances With Industry Partners

FSSI Contract Holders & 3PL Contractor(s) Participate in Buying Groups and Other Vendor Coalitions


CONFRONTING CHALLENGES CONTINUED

Reminders About Mandatory Source Status Are Appropriate – Especially in a “Set It and Forget It” World

Get Help From NIB and Ability One For Special Circumstances

Constant Communication with Major Buyers GSA DLA VA


SO WHAT MAKES YOU ATTRACTIVE TO A PRIME CONTRACTOR?

Potential Business Opportunity You’ve Already Identified That They Can Help With

You Have Specialized, Niche Items Experience In The Federal Market Experience/Relationship With A Specific

Customer That They Do Not Have Reliable/Quick-Ship Capability Ability One Status Can Be A Positive

Evaluation Factor


WHERE DO I FIND THESE PRIME CONTRACTORS?

All Large Prime Contractors Have Small Business Offices To Identify Partners With Socio-Economic Status Free Media Sources Like Govexec.com and

Federalnewsradio.com, regularly mention larger contractors in the news

Many Companies, and Associations, Host Small Business Days for Contractor “Speed Dating”

Industry Association Membership

One-on-One Meetings


WHAT ELSE

Subscribed to Industry Publications Government Executive, Federal Computer

Week, Federal Times, etc.

Active marketing both with issuing sources and with contracting entities

Internal Training on Compliance


COMMON TRAITS OF SUCCESSFUL CONTRACTORS

Focused On The Federal Market

Put the time and resources not just into sales, but relationship building

Anticipate changes that can impact your business, quickly identify problems

Learn from others

Successful CEO’s Say: “Don’t go it alone”


WHY YOU NEED TO SELL & MARKET

Ability One Status Is Just The Beginning Allows You To Sell More Easily, Gives You

Legitimacy How Good A Tool It Is Depends on Who Is Using It

No Business Is Guaranteed

Must Call On Customers & Develop Leads


MAKE USE OF RESOURCES

Use Information From Free and Paid Resources to Draft Internal Growth Plans

Develop & Use New Contacts In & Out of Govt. Participate in The Market, Including Events Like

Conferences, Awards Shows, Etc. Identify New Opportunities, Competitors and Risks

Dedicate Internal Resources To Make It Work

Be Prepared When Less Dedicated Firms Leave the Market


WHAT ELSE

Subscribe to Industry Publications Government Executive, Federal Computer Week,

Federal Times, etc.

Active marketing both with issuing sources and with contracting entities

Internal Training on Market Changes And, Where Necessary, Compliance


MORE TIPS

Successful firms adopt a “client for life” operating model

Clients tend to re-use Trusted Suppliers

Add new tasking with minimal competition


THE SELLING RECTANGLE

End-User – The Most Obvious Person

Program Manager - Sometimes The EU’s Boss, Sometimes the Same Person

CFO – Only If You Want To Make Sure The Agency Has Money

The CO – Repeat After Me: “The CO Is The ONLY Person Who Can Bind The Gov’t. To A Contract”


A QUICK LOOK AT THE FUTURE

Federal Budget Will Continue To Be Tight For Foreseeable Future, But Specific Opportunities Will Exist

New Procurement Methods Pose Challenges For Ability One Sales & Distribution Make Sure You Tell Your Story

Procuring Agencies – Especially New Contracting Officers

Logistics Contractors Don’t Be Afraid To Use Congressional Allies When

Absolutely Necessary Make Sure YOU Stay Up To Date On What’s Happening In Your

Area


FSSI(Federal Strategic Sourcing Initiative)

Major OMB/GSA initiative to create new buying programs to achieve greater discounts/lower prices based on consolidation of buying across government agencies. All agencies direct to evaluate spending and propose

product/service markets suitable for Strategic Sourcing. Goal is to then target those markets deemed suitable

through creation of new “mandatory” contract vehicles.

GSA is a big player here – directed by OMB to establish 5 new FSSI contracts in 2013 & 2014.



OS3 – Office Supplies Current OS2 FSSI BPAs tied to Schedule 75 to expire June

2014. Fifteen BPA holders currently, of which 13 are Small

Businesses

GSA at work on acquisition strategy for successor FSSI vehicle Strategy complicated by fact that Schedule 75 has been

closed for five years to new offers GSA appears to prefer an “open market” procurement

strategy to replace this contract. Expect RFP in December/January time frame!



JanSan/MRO Supplies Draft RFQ for Schedules based BPA issued in May 2013

Draft RFQ subsequently revised in response to industry comments

Extensive Q&As has extended release of final RFQ – Coming soon!

You must be an applicable Schedule holder and be Ability One approved to compete Vendors not winning BPA seats can seek to become

participating dealers on other BPAs holder contracts. If you don’t win a BPA and/or become a participating dealer,

this market will likely close for you!


Data Reporting & Pricing Tools

Transactional data reporting a major new mandate. Commands strong E-Commerce capability. Another area where you shouldn’t assume customer

understands requirements – Get ahead of them!

Emergence of “Prices Paid” and Other Pricing Tools Creating keen focus on prices paid at the transactional/order

level Need to understand what dynamics are driving your prices

and your competitors because someone is going to start watching!


TYING IT ALL TOGETHER

Federal Government Is Open For Business & Will Buy What You’re Selling

Use A Targeted Approach When Pursuing Business – Rifle vs. Shotgun

Consider New Relationships/Channels Promote/Educate on Ability One Compliance Be Patient Have A Sense of Humor


QUESTIONS/COMMENTS


Contacts

Larry AllenAllen Federal Business [email protected]

Jim PhillipsCentre [email protected]

selling ability one in the current market

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