Doing business with US State & Local Government
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Transcript of Doing business with US State & Local Government
A Quick Guide on
Doing Business with U.S. State & Local Gov Abhijit Majumdar
Government Contracting Market❖ U.S. government is the largest and wealthiest customer
with an annual budget of 76.5 Billion $ for year 2014 (source https://myit-2014.itdashboard.gov/treemap)!
❖ U.S. government is one of the most economically stable governments in the world!
❖ One of the most recession and austerity-proof markets!
❖ U.S. government is recognised for its timely payments with net 30 day guaranteed payment
Competitive Edge❖ U.S. government fosters competition between Government contractors through
complex sales process!
❖ Contractors are encouraged to deliver a sophisticated solution, engage in complex pre-proposal preparations, write an engaging proposal, present the solution and participate in negotiations!
❖ Contractors are exposed to rigorous procurement processes, numerous regulations and a constant effort to reduce “waste, fraud, and abuse”!
❖ Not as hostile as other sectors but needs knowledge of government policies and programs!
❖ Contractors with nasty reputation get a bad name quickly and word spreads quickly. !
❖ Ethical behaviour is strictly regulated than in the commercial world!
❖ Less Corruption and Greater Transparency
Key Decisions to Make❖ Which agencies do you want to work with?!
❖ What are you good at?!
❖ What services or products do you want to provide?!
❖ Have agencies bought your type of services or products in the past?!
❖ Will they buy them in the future?!
❖ How steep is the competition in that agency?!
❖ What’s the best way to market yourself to them?
Rules of the Game❖ Fiscal Year - U.S. Govt. fiscal year starts from Oct 1 and ends on Sept 30. Procurement tends
to pick up in the 1st quarter, slows down in second, start slowly in the third and heats up around the end - between July 1 and Sept 30.!
❖ Budgeting Cycle - Buying activities correlate with congressional approval of the budget. Typically in April Congressional committees report budget estimates to Budget Committees. (Source : http://bgov.com , http://www.whitehouse.gov/omb/budget/appendix )!
❖ No Single Procurement Agency - Each agency and different departments of the agency manage procurement their own way!
❖ Rules : There is no single procurement authority in the government, there is no single uniform set of rules by which every government entity abides!
❖ Federal Acquisition Regulation (FAR) - is a set of procurement regulations for acquisition (Source : http://www.acquisition.gov/ , http://www.sba.gov/content/federal-acquisition-regulations-far )
Government Procurement Methods❖ Micropurchases or Purchases Under the Simplified Acquisition Threshold (SAT) , Agencies on the FACNET can buy
unto $100K!
❖ GSA and VA Schedules (Source : http://GSA.gov , http://www.fss.va.gov/)!
❖ Requirements Contract employ a variety of solicitation types, including the following:!
❖ Request for Proposal (RFP)!
❖ Request for Quote (RFQ)!
❖ Invitation for Bid (IFB)!
❖ Multiple Award Contracts (MAC) or Indefinite Delivery Indefinite Quantity (IDIQ) There are multiple types of IDIQ like GWAC, IQC, MATOC & SATOC!
❖ Reverse auctions - Contractors are encouraged to undercut each other bidder’s price ( Source : http://fedbid.com)!
❖ Grants - Money awarded to organisations as financial assistance from a federal agency to carry out a public purpose of support or economic stimulation ( Source : http://grants.gov)!
❖ Public-Private Partnerships (PPP) - Government enters into a contract with a contractor to provide a service or implement a project by investing and collects its investments by charging for the service or from savings generated by the project
Acquisition Process for a Procurement❖ Identify a need!
❖ Perform market research and check for potential set-asides!
❖ Describe and publicise the need, often thru a RFI!
❖ Plan acquisition and issue draft RFP!
❖ Issue solicitation, answer questions, issue amendments!
❖ Evaluate proposals, hold orals!
❖ Conduct discussions, request clarifications and proposal revisions!
❖ Make award decision and announce!
❖ Conduct winning and losing contractor debriefs!
❖ Deal with pre and post-award protests, if any
Websites to Search for Opportunities in State and Local Gov
❖ Upcoming Fed Funded Agency Opportunities https://www.fbo.gov/!
❖ Market Research on Govt Spending http://www.usaspending.gov/!
❖ U.S. Government Agencies http://www.usa.gov/Agencies.shtml!
❖ Paid online databases www.bgov.com , www.govwin.com, www.targetgov.com, www.centurionresearch.com, ePipeline.com, www.onvia.com, www.setasidealert.com. www.findrfp.com
Thank You
Abhijit Majumdar