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| Helping Government Contractors Increase Their Bottom Line (1866-601-5518) |
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| | |  Government Contracts Lawyers - Government Contract Consultants - Watson & Associates, LLC | | |
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Unfortunately, they don't. The real question is why not? There is some analysis to this unfortunate result. First, large projects appear to be out of the reach of small businesses - or so they think. Small business should attemtp to seek out teaming partners to plan for the big projects ahead of time.
Contracting Officers and government contract officials frown on small businesses that attempt to bid on the larger projects. If you choose to bid on larger projects you may want to propose a possible staffing plan. This could increase your chances of getting a government contract |
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government contract opportunities Government contract opportunities
How do you get them?
Many business hear about government contracts but have either had no luck or simply just don't know how to seek and accomplish goverment contract opportunities. Many know about FedBizopps. The truth of the matter is that all government agencies must post government contract opportunities to the is site. However, the reality is alarming. When small businesses finally see the requirement, they only have at best 10 days to respond. Can you accomplish this fast turnaround? For most, the answer is no.
So now what?
Federal procurement agencies are supposed to by rule forecast their requirements to the public through the FOIA concept. This allows the potential contractor to prepare for the upcoming requirement. This can include forming a teaming arrangement, joint venture or other form of contractor relationship.
Is there a set method of finding government contract opportunities?
A survey will show that most government agencies fail to meet this requirement. Importantly, when you do find a contracting opportunity, the information is vague, some of them have no NAICS code assigned, and the potential contractor is at a loss as to what to do.
This provides an advantage to the larger business contractors because they have the ability to quickly respond to government RFPs and solicitations.
The answer is that you either seek help or consultanting in learning how to efficiently get the information you need to prepare (there several ways to do this). No one said that government contracts success is easy. However, it is very lucrative.
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The struggle becomes fierce Are you getting enough government contracts?
If the answer is no, then join thousands of government contractors across the U.S. that frustrated and ready to give up. There is no doubt that the government agencies seem to miss the big picture of why small businesses are important to the country. Congress gets its taxes from small businesses. In other words the more income that small government contractors recieve, the more taxes they have to pay. This means more income for the Congress to run the country.
The SBA is charged with ensuring that small businesses get their fair share of government contracts. Does this really happen? There are mixed reactions.
The government has small business goals to target certain business enterpises for government contract award. Included are HUBZOne, service disabled veterans, woman-owned and more.
The reality is that government small business bid awards are at a low. The goal reporting process can be revamped and contracting officers should seek to acquire results to meet the congressional intent of the small business act. Yes, the government must balance the various missions to the goals set. However, the reality can be astounding.
As a prior government contracting official, I have been challenged with questions such as:
Why should the government pay more to a small business where a larger business offers less money? On it's face it seems like a viable question. However, my answer was clear.
First, congress says so. Second, the Congress will make more in the long run in revenues that the immediate "savings" argued by the government. Why? The small business may now have to hire more employees (more taxes to congress) and of course now recieve more income payable to the government.
How can a small business create power to acquire larger government contracts?
Small government contractors must seek out teaming partners. This improves the capability of performing larger contracts. You must then convince the government contracting officer that you have the managment skills and past performance to reduce the government's risk.
What if you don't have the past performance?
Our government contract consulting team advise clients that they should seek out a teaming partner that has the past performance. As a prime contractor, you should also realize that the federal procurement rules mandate that you can be rated negatively for lack of past performance.
What does this mean (some contractors are usually stunned by this comment). It means that the contracting officer should consider the subcontractors past performance when deciding an award. If you interested in seeking government contract consulting services, feel free to contact our office at (720) 941 7200..
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Government Contracts consulting Government Contract Consulting
Is it worth it?
The answer depends on you business initiatives and goals. Successful large businesses ensure that they have internal government contracts business development teams. This is one reason why the smaller businesses contract bid awards tend to be lower and the small businesses seem to be awarded less and less contracts.
What can you do?
Although you may not be able to afford a full time staff of government procurement consultants, you eventually use thousands of dollars going to canned training classes, taking high risk in hope of being awarded a government contract. The result? You get nothing.
The government has complex procurement rules. The FAR is the primary source. However, the SBA also have tons of regulations that govern the 8a and HUBZone programs, teaming arrangements and more. As a government contractor,the contracting offiver has a wealth of power and discretion. What you should understand is how to effectively market to the government, set objectives to acquire bids and how the game is played.
Get Sound Consulting Professionals at Your Side
Operating by trial an error can get you into serious and expensive trouble. Our government contract lawyers and consultants provide individual federal contracts consulting to companies across the U.S. We find that contractors lack the education and skills to successfully acquire contracts and what their rights are.
Learning the big scheme of the congress and the various programs can be very beneficial to small business seeking to acquire government contracts. |
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Government's obligation to Small Businesses What obligation does DoD agencies have to small businesses?
The answer is quite simple. The federal procurement regulations mandate that contracting officers provide opportunities to small businesses to the maximum extent possible. Although this can be construed as a very high standard, the reality is sometimes different.
Some government contracting agencies for the most part procure contracts in way that is most convenient to them. Although each contracting agency has a different mission, there should be balance between congressional intent to advance small business federal contracting opportunities.
After reviewing the reports for annual awards, most agencies appear to meet the minimum goals and nothing more.
Awards to Native American businesses is substantially low on a consistent basis. Although the guidelines and language is clear, the results speak for themselves. Contract award to service disabled veterans can not seem to overcome the longstanding obstacle.
Although many forecasting sites increase set asides for service disabled veterans, the amounts of the contracts warrant special attention.
For the small business government contractor that has no preferential status, the results are astounding. A careful review of annual contract award reports (if scrutinized carefully) would show that total small business government contract awards often meet the required goal of approximately 23% because credit flows over from other categories such as HUBZone, 8a and veterans.
Large Businesses continue to review substantial federal contracts because they are have an advantage over small businesses in the areas of pricing and staffing. Many contracting agencies see this as "in the best interest of the government" a term that the agencies used quite frequently to justify its actions.
However, the Congress itself stated that focus should go to small businesses at other than lowest price. Does this mean that the agency must pay higher prices to small businesses? The answer is clearly no. However, this is why there such procurements as multiple set asides and options for the government to allow more grouped awards. Nevertheless, these types of awards are almost non-existent.
As contractors attempt to team with others, the result is often rejection of the teaming arrangement for reasoning that question the intent of teaming arrangements to begin with. Teaming arrangements (like the commercial sector) is designed to compliment each team member for contributions to which another team member may not have.
However, the agency analysis is usually "undue reliance" from the SBA or the agency themselves. Does this create a no-win situation for small businesses?
Our office focuses on helping contractors carefully craft teaming arrangements, joint ventures and subcontracts to minimize these results. |
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Businesses spend Tons of Marketing Dollars How Much Do You Spend On Government Contracts?
Marketing on Government Contracts Can be Costly
One of the common questions we often hear is: why should be pay someone to help us market to the federal government? We have a top quality marketing person that has a degree in marketing.
I've often seen government contractors, or prospective one's sned their "top marketing" person the give me a presentation ( when I worked for the Department of the Air Force as a Contracting and Small Business Official). The result was sometimes shocking and frankly a waste of everyone's time.
The degreed marketing person told us nothing to demonstrate that they understand anyhing about government contracts, the end user or anything close to.
What I heard was "how great we are" and " we offer the best product or service". My eyebrows tweeked a little. After the obviously rehearsed presentation, I often shook the marketing person's hand and told them that if there is any interest, we would contact them....Result? Never heard from us.
In the above real example that marketing person cost company approximately $60-80K per year with maybe a contract worth 80,000 after two years. The lesson here is that when you decide to pursue government contracts, you simply cannot market in the same manner as you do in the commercial sector. It is simply 'suicide'.
I've spoken to many fortune 50 companies and their government contracts "department" only to find that they may create an advantage over smaller companies by "challenging the odds". This means that they would spend $150,000 in man hours for 20 RFPs in hope of landing a contract.
The approach I recommend to our succesful government contracts clients is none of the above. I will say that our team's approach is similar to preparing for a battle.
- know the turf
-gather intelligence
- adopt a plan that the "enemy" will not dream of
- execute
As government contracts consultants in Colorado, we based on game plan on solid data - not guess work. You should consider doing the same. |
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HUBZone Government Contracts Program Many people are simply not aware of the Government's HUBZone program. As Government contracts consultants, we aim to provide you with as much educational pointers as possible to familiarize you with various programs set out by Congress and DOD to enhance our economy. The following is a definition of the HUBZOne program by the SBA
The HUBzone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distressed areas. Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment.
Program History
The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences.
SBA's Hubzone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.
How the HUBZone Program Works
The U.S. Small Business Administration (SBA) regulates and implements the program,
determines which businesses are eligible to receive HUBZone contracts,
maintains a listing of qualified HUBZone small businesses Federal agencies can use to locate vendors,
adjudicates protests of eligibility to receive HUBZone contracts, and
reports to the Congress on the program's impact on employment and investment in HUBZone areas.
Publication of Final Rule
Historically Underutilized Business Zone
Types of HUBZone Contracts
A competitive HUBZone contract can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract can be awarded at a fair market price.
A sole source HUBZone contract can be awarded if the contracting officer does not have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded at a fair price. The government estimate cannot exceed $5 million for manufacturing requirements or $3 million for all other requirements.
A full and open competition contract can be awarded with a price evaluation preference. The offer of the HUBZone small business will be considered lower than the offer of a non-HUBZone/non-small business-providing that the offer of the HUBZone small business is not more than 10 percent higher.
Goaling
The Small Business Reauthorization Act of 1997 increases the overall government wide procurement goal for small business from 20% to 23%. The statute sets the goal for HUBZone contracts as follows: 1999 - 1%; 2000 - 1 ½ %; 2001 - 2%; 2002 - 2 ½ %; 2003; and each year thereafter - 3%.
Affected Federal Agencies
Until September 30, 2000, the HUBZone Empowerment Contracting Program applies only to the procurements of the following Federal agencies: U.S. Department of Defense (DOD), U.S. Department of Agriculture (USDA), U.S. Department of Health and Human Services (HHS), U.S. Department of Transportation (DOT), U.S. Department of Energy (DOE), U.S. Department of Housing and Urban Development (HUD), U.S. Environmental Protection Agency (EPA), U.S. National Aeronautics and Space Administration (NASA), U.S. General Services Administration (GSA), and U.S. Department of Veterans Affairs (VA).
A "HUBZone" is an area that is located in one or more of the following:
a qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);
a qualified "non-metropolitan county" (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) with a median household income of less than 80 percent of the State median household income or with an unemployment rate of not less than 140 percent of the statewide average, based on U.S. Department of Labor recent data; or
lands within the boundaries of federally recognized Indian reservations.
The final rule for the HUBZone Empowerment Contracting Program was published on June 11, 1998. The interim Federal Acquisition Regulation (FAR) FAC 97-10, FAR Case 97-307 was published on December 18, 1998 to give effect to the contracting component of the program on January 4, 1999. The comment period for the FAR expired on February 18, 1999. The final rule is expected to be published in mid to late April.
Eligibility
A small business meets all of the following criteria to qualify for the Hubzone program:
it must be located in a "historically underutilized business zone,"
it must be owned and controlled by one or more U.S. Citizens, and
at least 35% of its employees must reside in a HUB Zone.
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Excerpt From FAR - Setasides Subpart 19.5—Set-Asides for Small Business
19.501 General.
(a) The purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns. A “set-aside for small business” is the reserving of an acquisition exclusively for participation by small business concerns. A small business set-aside may be open to all small businesses. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.
(b) The determination to make a small business set-aside may be unilateral or joint. A unilateral determination is one that is made by the contracting officer. A joint determination is one that is recommended by the Small Business Administration (SBA) procurement center representative (or, if a procurement center representative is not assigned, see 19.402(a)) and concurred in by the contracting officer.
(c) For acquisitions exceeding the simplified acquisition threshold, the requirement to set aside an acquisition for HUBZone small business concerns (see 19.1305) takes priority over the requirement to set aside the acquisition for small business concerns.
(d) The small business reservation and set-asides requirements at 19.502-2 do not preclude award of a contract to a service-disabled veteran-owned small business concern under Subpart 19.14.
(e) The contracting officer shall review acquisitions to determine if they can be set aside for small business, giving consideration to the recommendations of agency personnel having cognizance of the agency’s small business programs. The contracting officer shall document why a small business set-aside is inappropriate when an acquisition is not set aside for small business, unless a HUBZone or service-disabled veteran-owned small business set-aside or HUBZone or service-disabled veteran-owned small business sole source award is anticipated. If the acquisition is set aside for small business based on this review, it is a unilateral set-aside by the contracting officer. Agencies may establish threshold levels for this review depending upon their needs.
(f) At the request of an SBA procurement center representative, (or, if a procurement center representative is not assigned, see 19.402(a)) the contracting officer shall make available for review at the contracting office (to the extent of the SBA representative’s security clearance) all proposed acquisitions in excess of the micro-purchase threshold that have not been unilaterally set aside for small business.
(g) To the extent practicable, unilateral determinations initiated by a contracting officer shall be used as the basis for small business set-asides rather than joint determinations by an SBA procurement center representative and a contracting officer.
(h) All solicitations involving set-asides must specify the applicable small business size standard and NAICS code (see 19.303).
(i) Except as authorized by law, a contract may not be awarded as a result of a small business set-aside if the cost to the awarding agency exceeds the fair market price. |
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Small businesses Struggle for government contracts Why do small businesses struggle for government contracts?
There is no definite answer for this. However, the reality is that altghough government contracting is very lucrative, there are tough and complex rules that must be followed. small business must realize that the government does not like to incur risks when awarding a government contract.
Small businesses must first have someone that understands the rules of govenment procurement. The SBA has quite a bit of information available for free that gives you an idea of how the federal government operates. Nevertheless, you still need more practicle guidance.
Small government contractors face the struggle of know how to effectively maket to the government. A common mistake is to market to the federal government in the same manner as the commercial sector.
Capability briefings are generally allowed. However, you never want to waste the contracting officer or end user's time by just saying how good you are. You competitor says the same thing. You have to learn how to present business in a way that talks about what you've done, your mission and objective and how that will benefit the government.
It is hard for the government,without concrete proff to believe that if you are only used to performing contracts int he range of $100k- 150k, that you can miraculously perform a $5 milllion doallr contract. It simply does not pass the smell test just by your say so. If you are seriously interested in presenting you response to a solicitation in a convincing manner our team can provide you with meaningful consulting services. Simply call us at 720 941 7200.
To this end, small businesses must to at least two things to stand a chance at being competitive in RFP and government solicitation responses. Get professional help, seek a strong teaming partner, learn how to effectively market to the government.
Remember there are succesfull small businesses that repeatedly get government contracts. They do the above mentioned things and become very profitable by doing them. |
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