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Doing Business with Government
An eBook Primer on Federal, State and Local
Government Contracting
by
Richard White, President,
Fedmarket.com
&
Eric Aaserud, Vice President,
Fedmarket.com
© 2002 Wood River Technologies, Inc.
All rights reserved
Table of Contents
Introduction …………………………….....……………….
Chapter 1: Getting Started …………………………….....
Chapter 2: Basics of Selling ……………………………..
Chapter 3: Market Segments …………………………….
Chapter 4: Finding Agencies and End-Users ….…………
Chapter 5: Finding Official Buyers ………………………
Chapter 6: Finding Bidding Opportunities ………………
Chapter 7: Finding Information on Future Procurements .
Chapter 8: Finding Subcontracting Opportunities ……….
Chapter 9: Selling To Government Cardholders …………
Chapter 10: Small Purchases ………………………………
Chapter 11: Focus and Commitment ………………………
Chapter 12: Invitations For Bids
.…………………………
Chapter 13: Publicly-Advertised RFQ Market Segment …..
Chapter 14: Publicly-Advertised Negotiated Procurements .
Chapter 15: Responding To Public Procurements ………...
Chapter 16: Pricing Bids
………………………………….
Chapter 17: Managing the Proposal Process ………………
Chapter 18: Proposal Writing ………………………………
Chapter 19: Oral Presentations
……………………………
Chapter 20: Debriefings and Protests
………………………
Chapter 21: Multiple Award Schedule (MAS) Contracts …..
Chapter 22. Teaming
………………………………………...
Chapter 23: Acquisition Planning ……………………………
Chapter 24: Past Performance
………………………………..
Chapter 25: Performance-Based Contracting …………………
Chapter 26: Women-Owned Business Contracting …………...
Chapter 27: Minority-Owned Business Contracting …………..
Chapter 28: HUBZone Contracting ……………………………
Chapter 29: Small Business Contracting ………………………
Chapter 30: Electronic Signatures …………………………….
Chapter 31: Government Purchase Cards
…………………….
Chapter 32: Electronic Marketplaces
…………………………
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Appendices
Appendix A: Vendor Registration Pages on the Internet
Appendix B: Federal Bid Board Pages on the Internet
Appendix C: Procurement Forecast Pages on the Internet
Appendix D: E-Marketplaces on the Internet
Appendix E: Awards Pages on the Internet
Appendix F: Federal Subcontracting Opportunity Pages on the Web
Appendix G: State and Local Purchasing Thresholds and Procurement Regulations
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Introduction
This eBook, Doing Business with Government, comprises the installments of our
popular free email series of the same name. Plus, it also includes a very important
addition: a unique appendix of Internet links to help companies sell to government
agencies. The appendix covers all 50 states, plus territories, along with the top 100
cities and top 100 counties.
Subscribers to the eBook are issued passwords to download (at any time) the eBook
in MS Word or Adobe Acrobat formats. When we make material updates to the
book, we notify subscribers by email.
Our aim throughout this eBook is to take you, step by step, through the critical
information you need to successfully sell to federal, state and local governments. We
tell you the hard facts of government contracting without a lot of extraneous baloney.
We hope you find this eBook useful. If you have any comments or questions -- or
thoughts on other important topics for future chapters -- please do not hesitate to send
me an email.
Best regards,
Richard White, President
Fedmarket.com
[email protected]
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Chapter 1
Getting Started
By Richard White
President, Fedmarket.com
Where Do I Start?
Sometimes people will ask me, "Where do I start?" which is often another way of
asking, "Where do I go to begin filling out all the forms?" To be honest, if you’re a
good salesperson and you offer a fantastic product at a competitive price, you might
be able to sell it to an agency before you go through the red tape.
For most companies, though, my advice is to have your ducks in line first. For one
thing, you’ll generally look more credible to the buyer if you’re already an approved
vendor when they hear from you. For another, you’ll likely have to go through the
red tape at some point anyway.
This means, at minimum, you need to be registered with the governmental entity
you’re trying to sell to. There are exceptions to this. If you’re selling to a state, or
especially local government, there may be no registration requirement, particularly
for lower-priced products. To access state and local procurement rules and
regulations, a good place to start is our own State and Local Jumpstation,
http://www.fedmarket.com/freeRes/jumpstation/bids/state_local.php. To access state
and local vendor registration Web pages, go to Appendix A at the end of this eBook.
Registering with CCR
If you’re selling to the Defense Department, you must register with Central
Contractor Registration (CCR), http://www.ccr.gov. There are a few exceptions, such
as purchases paid with a government-wide commercial purchase card. For other
exceptions, go to http://www.ccr.gov/ccrpol.cfm.
Government agencies and private industry are only required to register in the database
once with subsequent requirements for annual updates. Registering with CCR
automatically registers you with every Defense agency. CCR is the single source
from which the DOD receives business information on all vendors.
We recommend that you first download the instructions and forms for registration and
go over them before you begin to enter the data online. This will ensure that you
have all the required business information at hand so you can submit a complete
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application online.
Before registering with the CCR, you will need:
• Data Universal Numbering System (DUNS) number
• Commercial and Government Entity (CAGE) code
• Taxpayer Identification Number (TIN)
• Standard Industrial Classification (SIC) codes
• Finance and banking information
The Data Universal Numbering System (DUNS) number is a unique nine-digit
company identification number. To obtain a DUNS number, call Dun & Bradstreet
(D&B) at 1-800-333-0505. The process takes about ten minutes and is free of charge.
If your company already has a DUNS number, the D&B representative will advise
you over the telephone. Parent companies can add four additional characters
(alphanumeric or number) of their choice to their DUNS number to identify and
enable each subsidiary to establish a separate trading partner profile in CCR. These
four alphanumeric or number identifiers are assigned and maintained by the parent
company NOT D&B. For additional information on DUNS Numbers, visit D&B’s
web site, http://www.dnb.com.
The Tax Identification Number (TIN) is either the Employee Identification Number
(EIN) issued by the Internal Revenue Service or the company Social Security Number
(SSN). Check for the TIN with the accounting, payroll, and/or personnel department.
The IRS can also be contacted, at 1-800-829-1040, to verify the TIN. If operating as
an individual/sole proprietorship, you must use the number under which you file
taxes. If your taxes are paid by a parent company, indicate the parent company’s
TIN.
The Standard Industrial Classification (SIC) codes are part of a numbering system
that identifies the type of products and/or services the company provides. The
following web site offers search capabilities for matching codes based on keyword
descriptions: http://www.osha.gov/oshstats/sicser.html. Applicable SIC Codes can
also be obtained from a Procurement Technical Assistance Center (PTAC),
http://www.rcacwv.com/ptac.htm, located in your state. A minimum of one primary
code and as many secondary codes as necessary should be listed.
For more detail on CCR registration, go to http://www.ccr.gov/handbook.cfm.
Registering with PRO-Net
If your business is small, woman-, or minority-owned, you should register with
SBA’s PRO-Net. It’s not mandatory, but it’s a good place to showcase your
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company’s capabilities. The site can be found at the following URL: http://pronet.sba.gov.
PRO-Net is an Internet database of information on more than 195,000 small,
disadvantaged, 8(a), HUBZone, and women-owned businesses. It’s free to federal
and state government agencies as well as prime and other contractors seeking small
business contractors, subcontractors and/or partnership opportunities. The site is
open to all small firms seeking federal, state and private contracts.
Businesses profiled can be searched by SIC codes, key words, location, quality
certifications, business type, ownership race and gender, EDI capability, etc.
Registration starts here: http://pro-net.sba.gov/pro-net/register.html.
Registering with State and Local Governments
Unfortunately, there is no single location to register with state and local governments.
You have to contact them individually, either on the web or by phone. One good
place to find state and local government web sites is, again, our Jumpstation at
Fedmarket.com. Or better yet, check out our procurement search engine,
Bidengine.com. There you can find procurement information on over 2,000 federal,
state and local government agencies.
Final Thoughts
Registering to do business with government agencies can be cumbersome. Focus first
on only those with whom you will actually conduct business in the short term. Don’t
spend too much time until you’ve determined there’s a reasonable probability the
agency is going to become a customer, an agency requires registration before it will
let you access a bidding opportunity, or you’ve already made a sale and the agency
requires registration before signing a purchase order or contract
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Chapter 2
Basics of Selling
By Richard White
At a fundamental level, selling to governments is no different than selling to private
companies: you must identify a potential customer and sell to that person directly.
Focus Your Sales Efforts
If you are new to government sales, focus on one target agency (or at most a few if
you have the resources), make a sale, and then nurture your new, small customer into
a large customer. Government agencies tend to be loyal customers. In many cases,
they’ll return for your product or service again and again if you serve them well.
Suppose that a government has a local office in your city, where you own a small
business selling office supplies. You need to call on that office and talk to the person
there that purchases office supplies. Find out where he or she is currently buying
them. Find out what that person is buying and how much that person is paying for
those products. Drop in and pay the buyer a visit, leave a catalog and contact
information, and take with you the buyer’s contact information.
After the initial sales call, it’s up to you to close a sale by analyzing the prices of your
competition, making more personal visits and telephone calls, and providing
additional product/service information until you receive the first order or sign the first
contract.
Remember this: federal, state, and local government agencies have issued over
800,000 credit cards to government employees so that they can efficiently buy
virtually anything under $2,500 on a single source basis. This market segment is
much like the commercial world and should not be intimidating, even for the firsttime government contractor.
So stay focused. Find success in a few places first. With too broad an approach you
can end up with some broad and diluted brand identity, but little or no sales.
Establish a Personal Relationship
It's common sense, but it's worth emphasizing: government buyers and program
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personnel (or "end users") want to feel comfortable with the people with whom
they’re doing business. As you deliver products and services effectively, they
become more and more comfortable with you and keep coming back to you.
Generally speaking, government buyers-•
Abhor poor product quality or service performance because they reflect poorly
on them. (Vendors behind such products or services go into the "bad vendor"
file.)
•
Want to do business with a vendor who makes life easier with no hassles,
even if this means a higher price. (Such vendors go into the "good vendor"
file.)
•
Want to be dealt with in a truthful, straightforward manner.
•
Want to be productive, play within the rules, avoid problems and get to the
much-sought-after "next grade level."
End User vs. Official Buyer
For complex products, the most important person to sell is the government end user.
For example, a scientist in a government research organization would be the person to
focus on if you sell scientific instruments. This person usually knows exactly what
his or her specifications are for a particular instrument and, in fact, may already have
a brand and model number in mind -- perhaps yours or perhaps a competitor’s.
The end user will formally or informally communicate requirements and desires to an
official buyer. If the instrument must be compatible with other instruments, the end
user will formally communicate this to the buyer, and a brand name and model will
probably be specified for the purchase. If the end user has been "pre-sold" by you or
your competition, he or she will probably communicate the preference informally,
and an "equivalent to" the preferred model requirement will end up a part of the
purchase document.
The official buyer in the purchasing division or contracting office is the focal point
for sales of commodity-like products. For example, end user requisitions for office
supplies will usually not specify make and model, and it will be up to the official
buyer to make the purchase from companies he’s dealt with in the past -- or from you
if you’ve made those important sales calls discussed earlier.
Services are similar. An end user would be the focal point for the sale of complex
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computer networking or security services. For boiler maintenance services, the
official buyer would probably look to one or more local plumbing companies that she
knows and has dealt with in the past. Again, one of these companies could be yours
if you’ve called on the buyer.
Vendor Diversity
Many buyers feel that their pool of vendors from which to purchase could be larger.
Generally speaking, it’s a buyer’s job to find more vendors to increase purchasing
efficiency and lower prices. So think of it this way: by calling on them, you’re
helping them -- that is, if you sell a product or service they need.
End users will also welcome your sales call if you’re selling solutions that fit with
their program objectives. You should, however, make the sales call before a
procurement is formalized. Generally, end users are not allowed to talk to vendors
once a procurement requirement is documented.
Identifying the Customer
Identifying potential customers can be one of the most difficult aspects of government
sales. But it depends on who you are. Here are two examples from opposite ends of
the spectrum:
•
The number of individual markets for IBM is nearly the entire universe of
federal, state and local agencies. IBM is probably registered to do business
with a majority of the over 80,000 governmental entities.
•
The number of individual markets for a specialized service or product firm
may be only a handful -- e.g., veterinarian care for laboratory animals or a
specialized speech recognition software product.
We'll talk about the challenge of identifying the customer in later chapters.
Summary of Keys to Success
•
Identify agencies buying your product/service
•
Call on the customer
•
Bid with knowledge and insight until you win
•
Nurture the new customer into a reliable, ongoing customer
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Chapter 3
Market Segments
By Richard White
In doing business with government -- whether it is federal, state or local -- the rules of
the game depend largely on the market segment in which you’re selling. In this
discussion, we’re speaking of market segments divided by purchasing threshold
amounts rather than by industry. The purpose of this chapter is to give you a broad
overview of these market segments.
Market segments vary from jurisdiction to jurisdiction, but they can be roughly
divided into three types: micro, small and large. The following summarizes these
three segments:
Micro Purchase
Threshold: Under $2,500
Purchasing procedure: Sole source using a government credit card
Sales cycle: Same day
Small Purchase
Threshold: $2,500-$25,000
Purchasing procedure: Three informal quotes by phone, fax, email or regular mail
Sales cycle: Same day to several days
Large Purchase
Threshold: Over $25,000
Purchasing procedure: Public advertising and formal documentation of procurement
Sales cycle: Several weeks to a year or more
Micro Purchase
Government micro purchases can be made without competition. In practice, program
personnel (end users) and official buyers are encouraged to make sure that prices are
reasonable and purchases are distributed fairly among vendors. End users with a
government credit card make most micro-purchases, although purchase orders are
sometimes used if an official buyer makes the purchase.
The micro-purchase market segment was created to make life easier for end users
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managing and operating government programs or field offices. A manager of a
government field office can buy office equipment and supplies under $2,500 by
merely calling a local vendor, giving the vendor his/her credit card number, and
requesting same day delivery.
Government credit cards (formally called purchase cards) are widely used and
account for around 50% of all government buys. Credit cards are increasingly being
used to make higher dollar buys.
If you want to compete in this commercial-like market segment, set up a merchant
account (if you don’t already have one) and sell to the government installations in
your local area just like you would a commercial customer.
Small Purchase
Over the past five years, governments generally have loosened their procedures for
making small purchases. They can now be made with three informal quotes obtained
by telephone, fax, email or regular mail. Payment is made with a credit card or
purchase order. The quotes themselves make up the purchase documentation so a
buyer can act quickly and efficiently.
Official buyers make small purchases for end users. As we discussed in the last
chapter, end users may or may not provide buyers with preferred suppliers. They
might for, say, a scientific instrument but not for something like office supplies.
Buyers find suppliers using manual or electronic bidders lists (maintained by
individual purchasing offices), centralized electronic vendor directories (both on and
off the Internet), or other vendor sources like Thomas Register and the local yellow
pages.
Small business preference procedures vary considerably, but as a general rule most
small purchases are set aside for small and small disadvantaged businesses unless this
type of company cannot be found to satisfy the requirement.
A small purchase can be done in a day, but several days or a week or more would be
more typical.
Buyers typically rotate companies they contact for a quote, often the last supplier plus
two new sources. As we tried to emphasize in the last chapter, your company will not
be contacted if they don’t know you exist. Get out there and sell! If you have a
technical or complex product or service, sell the end user. If you’re successful, the
end user will let the buyer know that your company is a preferred source for the
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required product or service. If you sell common commodities, focus on the buyer.
Large Purchase
Large purchase procedures vary widely among government jurisdictions. The dollar
threshold used to define a large purchase can be as low as $10,000 for smaller cities
and counties and as high as $100,000 for the federal government. (The federal
government requires formal advertising for most purchases exceeding $25,000, but all
purchases up to $100,000 are defined as small and are set aside for small businesses.)
In most state and local jurisdictions, the dollar threshold defining a large purchase and
the threshold for formal advertising are the same.
Large purchases require formal advertising and more stringent and formal purchase
documentation. The required method for public advertisement of a large purchase is
specified in a jurisdiction’s procurement regulations. Possible methods include city
newspapers, periodicals published by agencies, Internet sites, or some combination of
these.
More and more jurisdictions are using the Internet as their primary medium for
publishing large procurements. The Federal government has recently designated the
Internet site FedBizOpps, http://www.fedbizopps.gov, as its official publishing
medium for all procurements exceeding $25,000. The Commerce Business Daily
paper publication and Internet site are being eliminated effective January 1, 2002.
Large purchases require strict, formal documentation concerning how and why the
successful vendor was selected. The contacting mechanism is usually an Invitation
for Bid (IFB) for a sealed, fixed-price buy or formal Request for Quote (RFQ) for a
non-sealed fixed-price buy. (Sealed bids require a formal, public opening and a
subsequent formal public posting of all bids.)
A Request for Proposal (RFP) is used for negotiated procurements. Negotiated
procurements are used for complex procurements where many factors besides price
enter into the buy. The contract does not necessarily go to the vendor with the lowest
bid, although price is usually a major factor in making the selection. This method is
used when the government is seeking a solution to a problem, buying a complex
product or contracting for a complex service.
Fixed-priced procurements can take 30 to 90 days to complete and negotiated
procurements can take from three months to a year, and, in some cases, even longer.
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Chapter 4
Finding Agencies and End-Users
By Richard White
Finding agencies and end-users that buy what you sell is one of the most difficult
aspects of government sales. And yet it is one of the most important since it is the
key to focusing your sales efforts. Throughout this eBook you will be advised over
and over again to focus your sales efforts. Finding the people who buy your product
or service is the critical first step in a focused sales program.
Each government program purchases goods and services to carry out its particular
mission. As an example, the federal Department of Defense buys nearly every
product ever made and service ever provided. Guns, clothing, vehicles, consumer
goods for the PXs, military base maintenance and operational services, paper clips,
computers, and funeral and Chaplin services, just to name a few.
Within the Army, thousands of program managers, program professionals, operating
supervisors, engineers, and scientists participate in deciding what to purchase and
from whom.
Finding your potential customer is an art, not a science, and how you approach the
process depends on the type of products or services you offer.
Understand Agency Missions
Common sense and intuition can direct you to starting points for further research
concerning who buys what.
Unique or specific products and services
The more specific a product/service is, the easier it is to pinpoint potential customers.
Firefighter hoses, for example, are specific. Thousands of firefighting agencies
nationwide buy firefighting equipment, and it doesn’t take long to figure out which
agencies in your area are involved in firefighting.
Another example: suppose that you sell a device to reduce the time needed to fill a
sand bag. The Federal Emergency Management Service (FEMA), the Forest Service,
the Bureau of Land Management, and the Army Corp of Engineers would be places
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to start. Further research, usually on the Internet, will point you to other agencies that
fill sand bags.
At the state and local levels, you’d look for towns, cities, and counties near rivers that
have experienced flooding. You’d dig into FEMA records by making telephone calls
and if necessary written requests under the Federal Freedom of Information Act
(FOIA) to find where the emergency funds flow.
Commodities and general services
In contrast, almost every government agency purchases office supplies, so you would
need to focus on geographic areas that you can reach economically, both from sales
costs and shipping costs viewpoints. Office equipment and supplies, office furniture,
reproduction equipment and supplies, and office leasing would all fall into this
category. Again, the Internet can be helpful in finding agencies within your
geographic area of business. Look at your state website and, for federal information,
try FirstGov, http://www.firstgov.gov.
In the case of office supplies, you’ll have more potential customers, but the downside
is that for each one of them the competition will be keener.
The Department of Defense Internet site, Selling to the Military,
http://www.acq.osd.mil/sadbu/publications/selling/, provides information on military
buying by purchasing office. Go to Part 2: Products and Services Bought By Major
Military Purchasing Offices.
Our CD-Rom of Government Internet Sites is helpful in locating agencies within your
state. More information about this new product can be found at Fedmarket,
http://www.fedmarket.com/productTour/buyerContacts/cd_urls.php.
Internet Searching
The Internet has become a panacea for conducting market research. Market research
using the Internet is such a broad topic that it is best illustrated with an example.
Let’s consider FEMA again. In your research you might do the following:
Go to FirstGov, and find the FEMA homepage using the keywords, "Federal
Emergency Management Agency." The first listing in the search results is Fema.gov,
http://www.fema.gov/.
For state and local government, use the search engine at Google.com. For more
efficient searching, try Bidengine, http://www.bidengine.com, or, again, our CD-Rom
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of Government Internet Sites, at Fedmarket.
At the FEMA site, start your research at the "Doing Business with FEMA" web page.
Most of the information here is helpful, especially two sections:
1. The "Listing of Active Contracts" section shows what FEMA has bought in the
past through large contracts and the end dates for these contracts. The contract
listings are not tied to end-users, but are, nonetheless, excellent starting points for
determining if FEMA buys what you sell. (Not all federal sites list active contract
data but many state sites do.)
2. The "Doing Business Guide" section lists program offices and what they buy.
Let’s assume that you’ve now identified a program office that buys what you sell.
Now is when the market research gets a bit more challenging. You must find who is
in each program office and what their responsibilities are. Then you must determine
how to get a hold of them. For example, the training program head within a program
office would be the obvious person purchasing training-related products and services.
This would probably be the first person you’d call if you worked for a training
company.
Each agency’s web site will be different in how it presents personnel and
organizational information. In the case of FEMA, the web site shows key personnel
and their contact information, although you have to go several places to tie it all
together. The site contains the names of program managers and staff. Email
addresses have a common format, allowing you to formulate a person’s email address
from their name.
Frequently, you’ll have to go beyond the Internet to find relevant end-users. If you
can’t find end-users at the site, call the agency’s public affairs office and/or small
business office and ask for staff directories, organization charts, and written
information about the agency’s programs. Don’t be shy! It’s all public information,
and it’s their job to assist you.
If you visit an agency, make a personal call on the public affairs office and the small
business office. They may not be much help in finding you specific business
opportunities, but they can be useful in providing you with end-user contact
information.
Official buyers also are an excellent source for information on end-users. They know
who buys what in their agency and it’s their job to assist you in finding the end-users
who buy what you sell. Buyer contact information often can be found at an agency’s
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purchasing web site.
Just to sum up how we might be helpful to you in this area, the following
Fedmarket.com products are designed to assist you in finding end-users and buyers.
•
CD-Roms of Federal Credit Card Holders,
•
CD-Roms of Government Internet Sites, from new product tour,
•
CD-Rom of Official Buyers,
•
Bidengine.com provides a convenient way to find buyer contact data at the
federal, state and local levels. Bidengine searches about 1,000 Internet pages
containing buyer contact data key word. If you sell office supplies, Bidengine
can tell you what agencies have purchased your product using the keywords
"office supplies."
Award information published by agencies
Awards information is public (with rare exceptions) and is published in many forms
and formats, verbal, paper, and electronic. Generally, the information will tell you
what was bought and for how much, when it was delivered and who won.
Awards information tells you what the agency buys, but it usually takes work to find
out the program office and/or person who made the purchase. An awards notice
usually lists the official buyer for the contract; call him or her and find out the name
and number of the end-user. Also, ask for background information on the
procurement and a copy of the contract if you think that will be useful.
At the federal level, you can obtain awards information in a number of ways. Here are
three that immediately come to mind:
1. The Federal Procurement Data Center,
http://www.fpdc.gov/fpdc/agency_reports.htm, (FPDC) publishes contract
award data for all procurements exceeding $25,000.
2. The Defense Logistics Agency, http://progate.daps.mil/home/, publishes
source and pricing data for products assigned a National Stock Number
(NSN). The source and pricing data is published for procurements of any
size.
3. For buys under $25,000, purchasing offices maintain paper records of awards,
and these are available upon request.
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4. Browse or search notices of award at FedBizOpps. (Go to
http://www.fedbizopps.gov and click on the "Vendors" icon in the lower left
part of the page. Search using keywords at
http://vsearch1.eps.gov/servlet/SearchServlet. Be sure check the "awards"
radio button.)
5. Search for awards at Navy Electronic Commerce Online (NECO).
Specifically, go to http://www.neco.navy.mil/synopsis/synopsis.cfm and use
the Advanced Search option.
Not all of these sites are what I'd call "user-friendly," so be patient. It may take some
time to muddle through at first, but searching becomes reasonably routine once
you’ve gained some experience.
A note on the FPDC database: it doesn't allow searching by product/service at an
individual contract award level of detail. This is a major limitation since contract
detail is required to determine the contracting officer’s name and, in turn, the contact
information for end-users.
Fedmarket.com offers the full fiscal year 2000 FPDC awards database in exportable
format and special reports by product/ service code and geographic area. We sell this
information at a lower price than FPDC.
State and local governments publish award data in much the same way as the federal
government. Many large states, counties, and cities publish awards data at their web
sites. If it’s not at the web site, call and ask for it.
Agencies using a sealed bid procurement procedure publish award amounts and nonwinning bid prices at the public bid opening.
Bidengine.com provides a convenient way to find awards data at the state and local
level. Bidengine searches about 500 state and local Internet pages containing awards
data by keyword. If you sell centrifugal pumps, for example, Bidengine can tell you
what agencies have purchased your product using the keywords "centrifugal pumps."
Usually, the awards data found by Bidengine will tell you what type of pumps were
bought, from whom, and the price paid per unit. Remember, if the agency bought
pumps once, they will probably buy them again. A call to the buyer will tell you the
name of the end-user who ordered the pump.
17
Chapter 5
Finding Official Buyers
By Richard White
In the last chapter, we discussed how to find end-users, the people in government
who’ll actually use your product or service. This time we’re going to talk about the
official buyers, those folks who are responsible for making formal purchases.
As I’ve explained before, these two groups often work together. As a vendor, you
generally focus on the end-users if you sell technical or complex products -- i.e.,
products where the user has a real vested interest in performance.
If you sell lab filtering flasks, for example, and the Director of Lab Services for your
state’s Department of Agriculture and Food prefers filtering flasks made by Indigo
Instruments, well, then that’s something you need to know if you’re going to have
any success in selling to that agency. You’ll have to sell Indigo’s product or convince
the lab head yours is better.
But it’s important to know official buyers, too, for reasons that include the following:
•
They have a broad understanding of what the agency buys.
•
They make the buying decisions for commodities, non-technical products, and
routine services.
•
They can tell you who the end-users are for complex product and services.
•
Though they may not USE them, they can certainly influence the decision on
which technical or complex products to buy.
•
They are the source for awards data, including who has provided what
product/service in the past, the pricing and other contract details.
•
They have knowledge of the agency’s planned future procurements.
Generally, buyers are accustomed to sharing information with vendors. Sometimes
they’ll provide it for the asking; other times you’ll have to make formal information
requests. (Freedom of Information Act requests at the federal level.)
Finding buyers is considerably easier than finding end-users for the following
reasons.
18
•
They are concentrated in the purchasing organization, as opposed to end-users
who can be located anywhere in an agency.
•
Often a buyer directory is published at an agency’s web site. If you’re lucky,
a buyer directory will show the types of products or services that each buyer is
responsible for purchasing.
•
The employee breakdown of the purchasing organization is usually shown in
published, paper directories available from the public information office.
•
At a minimum, the public information office will provide you with contact
information for the head of the purchasing organization.
These days, the Internet is the place to start to find buyers. The research can be
laborious if you’re interested in many agencies, but manageable if you’re focusing on
only a few.
To find the main agency site, try using the following search engines and the keywords
representing the agency’s name.
Federal: FirstGov, http://www.firstgov.gov
State and Local: Google, http://www.google.com
Once at the main agency page, generally it is easy to find the purchasing organization
page and then the buyer directory within the purchasing page. Call the purchasing
director and ask for a buyer directory if it’s not posted at the site.
Using the State of California as an example, you’d find the buyer directory as
follows:
Entering "state California" into Google.com produces a link to the state site,
http://www.ca.gov/state/portal/myca_homepage.jsp.
At the home page, click through the following link hierarchy:
Business
Doing Business with the State
Selling to the State
Procurement Division Directory
The Procurement Division Directory in California tells you buyer names and
telephone numbers by product/service category, but does not show email addresses.
Some government agencies show email addresses in their directories and others don’t.
The California home page provides links to directories of California counties and
cities with web sites. Directories like these are valuable tools for finding local
government buyers.
19
The California example is a fairly typical outline of the path you’d follow for large
and medium sized states. The purchasing organization’s directory is reasonably easy
to find by following an intuitive path starting on the state home page and clicking on
a link called "Business", "Doing Business with", "Business Opportunities" or
"Vendor Information."
In smaller states, counties, and cities, you may find only contact information for the
head of the purchasing organization, rather than a directory of individual buyers.
20
Chapter 6
Finding Bidding Opportunities
By Richard White
Until now we’ve been discussing the fact that, for most companies, it is helpful (often
crucial) to reach the official buyers or end-users that may need your products or
services. Communicating with these folks can be important because a lot of
purchasing activity takes place outside the world of formal public bidding -- e.g.,
micro, small and multiple award schedule purchases. And even where public bids are
involved, it's often prudent to know the needs of an agency (specifically the needs of
end-users) before a formal bid is published.
In this chapter, we take a closer look at bidding opportunities (both published and
unpublished) that emanate from government buyers.
Unpublished Bidding Opportunities
Small, unpublished procurements make up what is sometimes called the "hidden
government market." Although it is unquestionably huge, no one seems to have a
handle on its exact size. We think the market may range from $250 to $280 billion of
the total federal, state, and local $700-billion market.
As we have discussed elsewhere, buyers in the so-called hidden market often seek
verbal quotes from three or more vendors. This may be the best example of why you
need to get to know the needs of the agency and talk to the right people. The goal of
course is to be one of the three vendors that get the phone call, fax or email seeking a
quote.
It might be helpful at this point to consider some of the various methods buyers use to
find the right vendors in this situation. At all levels of government, buyers will often
rely on one or more of the following sources:
•
Their own vendor files and personal knowledge.
•
Their own manual or electronic bidders list (vendor registration usually
required).
21
•
Agency- or government-wide vendor directories like the federal Central
Contractor Registration and PRO-Net databases. Most states have a central
vendor directory.
•
Industry directories like Thomas Register.
•
Government e-procurement systems. Most large states have them and the
federal government has several. Some of these systems are catalog-based,
some are RFQ-based, and some are both.
•
Commercial business-to-government e-procurement systems like our own
Govcommerce.net.
When you’re talking to a buyer, ask him how he locates vendors for small purchases.
In some instances, it will be critical to be in that particular location. For example, if
that buyer is with a certain agency in, say, North Carolina and that agency only uses
the state’s e-procurement system for obtaining its three-or-more quotes, then you’d
better register with the system.
Again, focusing is the key. (Are you detecting a theme throughout this eBook?)
Don’t scatter your company information around in various directories just for the
heck of it. Concentrate on those that matter to your target agencies.
Published Bidding Opportunities
That said, most companies that wish to thrive in government contracting must still
stay on top of publicly-posted bid notices. This is especially true for companies
trying to win contracts worth $25,000 or more.
Bidding opportunities for large purchases are published in the media specified in the
agency’s purchasing regulations (usually a local newspaper), at an agency’s
procurement Web site, or both.
The dollar threshold used to define a large purchase can be as low as $10,000 for
smaller cities and counties and as high as $50,000 for a few states (e.g., California).
The federal government requires formal advertising for purchases exceeding $25,000.
We will use that threshold for purposes of this discussion.
Publication of small procurements (those under $25,000) is unpredictable. Generally,
publication is not required by law and is at the discretion of the buyer.
An agency usually elects to publish its under-$25,000 procurements when it doesn’t
know sources for the product or service or when the agency is seeking new vendors.
22
If published, small procurements will appear at an agency’s Web site or local bid
board and maybe in the local newspaper.
Some federal agencies choose to publish under-$25,000 procurements at
FedBizOpps, others publish them at their agency’s web site, and others choose not to
publish them at all.
Federal Bidding Opportunities
Finding published federal procurement notices is relatively easy. By law, all federal
procurements over $25,000 are published at the FedBizOpps site,
http://www.fedbizopps.gov. Under-$25,000 opportunities may appear at FedBizOpps
at the discretion of the buyer.
FedBizOpps is a free Internet service and the service will email procurement
opportunities to vendors at no charge based on selected product/ service categories.
Fedmarket.com is about to begin offering FedBiz Now, http://fedbiz.bidengine.com/,
an enhanced FedBizOpps subscription service. It has enhanced features that include:
•
Bidding opportunities, modifications and awards are delivered to your desktop
within an hour of posting at FedBizOpps.
•
Detailed information about the agency posting a solicitation, including links to
advice on how to do business with the agency, buyer and end-user contact
information, and related federal agencies, offices and locations.
•
Search for bid opportunities beyond what's available at FedBizOpps:
1. Search federal bid boards posting under-$25,000 bid opportunities.
2. Search state and local opportunities available through Bidengine.
Receiving federal procurement notices early can be important for some companies.
Two examples where early notification can be important are:
•
Service procurements often require recruiting an incumbent contractor’s staff.
The first company to call an incumbent contractor’s project manager may
have the edge in signing him/her to an exclusive employment contract.
•
Frequently a day’s lead can make the difference in preparing a high quality
proposal in response to a complex requirement.
23
In many cases, however, the early notice will not be critical -- e.g., fixed price quotes
that do not take a lot of time to prepare.
State And Local Bidding Opportunities
There are about 80,000 public purchasing authorities in the United States. About 45
states and 3,000 cities and counties publish bids on the Internet. These Internet sites
represent the bulk of U.S. public purchasing dollars. The rest of the 80,000 are small
counties, cities, and other public purchasing authorities that rely on newspapers or
local bid boards to publish their bids.
State and local bidding opportunities are spread over thousands of Web sites. A
number of subscription bid services attempt to cover this activity. Annual
subscription fees range from $200 to over $1,000. It is impossible for a bid service to
cover the nearly 80,000 state and local jurisdictions. Some have good coverage of
Web site postings, some format the bids from Web sites and selected newspapers, and
others do some of both.
Which service(s) do you select? Again, focusing your sales efforts is the key. Once
you have focused on the agencies you want to target, you can select a bid service
based on how well the service covers your the particular area.
Companies with only a few target agencies may elect to bookmark bid posting sites
and use local newspapers to follow purchasing activity. This approach is cheap but
breaks down if you are attempting to cover more than, say, ten agencies with Web
sites.
Fedmarket.com offers two subscription bid services that you may find helpful:
•
Bidengine is a specialized search engine that covers over 2,000 state and local
bid posting sites. A no obligation, free trial of this service is offered at
http://www.fedmarket.com/bidProducts/be/freeTrial/.
•
ITBids is a focused bid collection system tailored specifically for the IT
industry. A no obligation, free trial of this service is offered at
http://www.fedmarket.com/bidProducts/itb/freeTrial/.
Fedmarket.com also offers CD-Roms of Federal, State, and Local Purchasing Agency
Web site addresses for those companies electing to bookmark bid posting sites. Our
own competitors in this area include Bidnet, http://www.bidnet.com, and Bidline,
http://www.bidline.com. Try us, try others and see where you’re getting the best
coverage. Use one or more that provide you the best coverage for your target
agencies.
24
Chapter 7
Finding Information on Future Procurements
By Richard White
In the last chapter we talked about finding formal bid opportunity announcements,
more popularly referred to as "bids." That’s a fairly basic subject, one that is rather
easy to discuss. Most of us understand bids because they’re unequivocal sales
opportunities where an agency is announcing to the world its readiness to purchase.
Now we’re going to talk about information that is a bit subtler -- requiring a bit more
digging, if you will -- but no less important: future procurements.
Savvy contractors understand that information on future procurements is invaluable.
Why? Because knowing about future procurements is the key to getting to the
prospective customer before competitors do.
When the formal bid comes out, everyone knows about it. When the opportunity is
only in the planning stage, however, you may be the first to know about it. That's a
great position to be in: you’ll have the edge in understanding agency objectives and in
preparing your proposal or otherwise explaining your company’s products and
services. This is particularly important for technical services and complex products
where the end-user often makes the purchasing decision.
But what do you look for? There are five important areas of information:
procurement forecasts, sources sought/requests for information, contract awards,
buyer and end-user purchasing histories and budgets.
Procurement Forecasts
Government agencies routinely publish forecasts of upcoming procurements. They
do this to give contractors a "heads up" on future business opportunities by providing
information on what the agencies are planning to buy and, in many cases, how much
money they plan to spend.
While forecasts are for informational purposes and do not represent specific
contractual obligations, they can be wonderful gold nuggets on where business will
likely be down the road.
Where do you find them? Some government agencies publish procurement forecasts
on the Internet. In fact, most federal agencies publish forecasts in various degrees of
detail. An example is the Department of Justice forecast page,
25
http://www.usdoj.gov/jmd/osdbu/forecast_2002.htm. We publish a list of federal
procurement forecasts in our Jumpstation,
http://www.fedmarket.com/freeRes/jumpstation/forecasts/federal.php.
State and local agencies are less likely to publish procurement forecasts on the
Internet. We also publish a rather small list of state and local forecasts in our
Jumpstation,
http://www.fedmarket.com/freeRes/jumpstation/forecasts/state_local.php.
Bidengine.com, provides a more convenient way to find procurement forecasts on the
Internet. Bidengine searches by keyword about 478 Web pages (416 federal and 62
state and local) containing procurement forecast data. If you sold janitorial services,
for example, Bidengine would tell you which agencies are planning to buy your
services just by searching using the keyword JANITORIAL.
Sources Sought and Requests for Information
Sources sought and requests for information also can alert you to future
procurements. Notices of this type -- which are more detailed than forecasts -- are
generally published among an agency’s bid opportunities. At the federal level, both
of these types of notices are published at the FedBizOpps, http://www.fedbizopps.gov
site.
Contract Awards
Reading contract award information can also alert you to future procurements. Why?
For one basic reason: contracts tend to "repeat" themselves.
Most service contracts repeat themselves in a very predictable fashion. An agency
won’t, for example, decide to stop cleaning a building or maintaining a facility.
Contracts for these types of services must be re-procured with a start date
immediately following the expiration date of the current contract.
Most product procurements repeat themselves too, although not necessarily
concurrently. An agency buying office supplies will buy them again and again
simply because it has to in order to operate. A state highway agency that bought
trucks will buy new ones when the old ones wear out.
The key is to zero in on the end dates of existing contracts that match up with your
capabilities. Three months to a year from the end date of a current contract, for
example, is probably about right for a wide variety of opportunities. That range gives
you time to convince agency program managers that your company will be the ideal
one to replace the incumbent contractor. But the ideal lead-time does vary. For large
26
federal contracts, for example, companies often begin the sales process several years
in advance of the end date of the existing contract.
General strategy once you have contract information: Ask the buyer who the endusers are for the current contracts. Then get to the end-user with your sales pitch.
Ask him how he likes the incumbent service contractor or how he likes the particular
product. Research service or product pricing and quality. Focus on how your
company can do the job better when the contract comes up for a "re-bid."
Buyer and End-User Purchasing History
Knowing what individual buyers have bought and when they bought it can provide
great insight in predicting future procurements. This kind of data is only readily
available at the federal level. Our online service FedBiz Intelligence (FBI) ,
http://fbi.bidengine.com/, is one source that summarizes federal buying history. FBI
tells you, by product/service category, the dates and dollar amounts of purchases
made by individual federal buyers.
When you’ve located a federal buyer who has bought the sort of stuff you sell, call
him or her up and ask who the end-user is and when the next purchase is planned.
This level of questioning would best be done with a personal visit, as opposed to a
telephone call or a formal Freedom of Information request. Requests for public data
can be time-consuming for a buyer, and it doesn’t do much good to obtain a lot of
information and find yourself dealing with an angry buyer. A personal data collection
visit would cut down on the impact on the buyer and allow you to begin to establish a
personal relationship.
Budgets
This probably goes without saying, but I'll say it anyway: the value of budget
information in predicting procurement activity is proportional to the detail actually
provided in the published budget. If the budget breaks things out to a level that
reflects the products or services you sell, then you'll probably find important
information there.
Basically, what you’re looking for are trends in spending with regard to your
individual product or service category. If you own, say, an accounting firm in
Portland, Oregon and you find that the city has doubled its accounting services budget
for fiscal year 2002, that’s critical information if you want to do business with the
city. There will likely be some procurement announcements coming in the near
future, and you will be more prepared to respond effectively when they’re published.
Locating and analyzing budget information can be hard work. Like we often suggest,
start with the government Web site to lead you to contact information or even (if
27
you’re very lucky) the budget itself. In most cases, after you’ve done the site review,
you’ll need to grab the phone and start dialing.
There are consulting firms that can do this work for you if you’re willing to pay top
dollar. The more well known ones (FedSources and Input, for example) focus almost
exclusively on the information technology sector.
28
Chapter 8
Finding Subcontracting Opportunities
By Richard White
Up to this point in the eBook we've been discussing issues that fall generally under
two broad categories:
•
•
Getting to the right official buyers or end-users; and
Finding bid opportunities (either early or when they're formally announced)
The focus, in both cases, is on the government agency itself. Now we're shifting
gears a bit to talk about subcontracting, where the marketing focus is on companies
that hold government contracts.
Finding subcontracting business is a bit like finding prime contracting business: you
can focus on the bids as they come out (and be a part of the crowd), or you can get
ahead of the game by talking to the right people BEFORE the bids come out. Let's
begin with the former strategy.
Subcontracting Bids
Where do you go to find subcontracting bids? One place to check is SBA's SUB-net,
http://web.sba.gov/subnet. Last time I checked there were 43 subcontracting bids
posted there. Now, that's not a lot of activity when consider how many federal
subcontracting opportunities there are on any given day.
Why only 43? Here's one reason: prime contractors don't want the entire world of
subcontractors coming at them and creating unnecessary work. They like working
with companies that have performed well for them in the past. For many contracts,
primes don't need to look beyond their circle of "friends," those with whom they have
a shared history, etc. -- which leads us to our next section.
Subcontracting Coordinators
At large businesses subcontracting coordinators are somewhat analogous to
government buyers. Often you need to market to these folks so that you're a part of
the planning before a contract is awarded or, better yet, before a solicitation is posted.
29
First: finding companies that match up
How do you find the right subcontracting coordinators? (Or, if that title isn't used, the
person in the company who sources and/or works with subcontractors.)
First make sure you locate large businesses that are winning, or are likely to win,
contracts that have performance elements that match up with your company's
capabilities. In this regard, award notices can be helpful. As we discussed in the last
two chapters, FedBizOpps, http://www.fedbizopps.gov/, is the place to go, not only
for solicitation announcements, but award announcements as well. Our new product,
FedBiz Now, http://fedbiz.bidengine.com, now emails these same federal award
announcements every hour. Go to
http://www.fedmarket.com/bidProducts/fbn/freeTrial/ for a free trial.
Keep in mind, though, to analyze seriously whether your company's capabilities
match up on any given contract, you'll want to get to the solicitations. Award notices,
as a rule, only provide basic information.
For a broad picture of the prime's contracting activities, you might check federal
contract history data. As we've discussed, the Federal Procurement Data Center
(FPDC) publishes contract award data for all procurements exceeding $25,000.
Fedmarket.com offers the full fiscal year 2000 FPDC awards database in exportable
format, along with special reports by product/service code and geographic area.
What about the state and local levels? As you can imagine, award information among
state and local governments is decentralized, scattered all over the Internet. But here
are some example locations:
•
Texas Bid Tabulations and Award Information,
http://www.tbpc.state.tx.us/procinfo.html.
•
Missouri Bid Awards, http://www.oa.state.mo.us/purch/cgi/bidaward2.cgi.
•
New Jersey Notices of Award,
http://www.state.nj.us/treasury/purchase/contracts.htm.
This is one area where Bidengine, http://www.bidengine.com, can be very helpful
because it allows you to search about 500 state and local awards pages by keyword,
all at the same time. It's a time-saver.
Where a state, county or city doesn't post awards on the Internet, you'll have to pick
up the telephone and call the procurement office and ask for the information. Okay,
here's that word again: focus. Limit your calls to only those agencies with which you
have a reasonable expectation of doing business.
30
The buyer may just send you award documents on all recent activity (which means
you'll have to sift through a lot of irrelevant information), or he may give you a
heads-up on upcoming opportunities, or even suggest to you a prime contractor to
contact. You won't know, of course, till you call.
Subcontracting directories also are potential starting points for establishing long-term
prime contractor relationships. Some example federal subcontracting directories:
•
DOD Subcontracting Directory,
http://www.acq.osd.mil/sadbu/publications/subdir/.
•
DOD Comprehensive Subcontracting Plan Test Program,
http://www.acq.osd.mil/sadbu/csp/index.html.
•
Department of the Treasury, Small Business Subcontracting Opportunities,
http://www.treas.gov/sba/rfqlist.html.
•
Small Business Administration, Subcontracting Opportunities Directory,
http://www.sba.gov/GC/sbsd.html.
Second: getting to the right person
Once you've found the right company, now you have to get to the right person. If the
name of the subcontracting coordinator is a mystery, call the prime's main corporate
number and ask for the government contracting organization. The manager of this
unit will get you to the subcontracting coordinator (if they have one) or the end-user.
For large contract awards, chances are you can get to a winning company's
subcontracting coordinator without too much difficulty. Large companies tend to
have subcontracting coordinators on staff because they're not only necessary but also
required by law. (Under federal regulations (the FAR) contracting officers require
large businesses that win contracts valued greater than $500,000 (construction
contracts in excess of $1,000,000) to submit a small business subcontracting plan.
The plan includes the name of the business.)
Ideally, the coordinator will already have your capabilities on file from a previous
visit, and now you're calling about the specific contract or bid opportunity you saw
announced at FedBizOpps, a state site, a local site, etc.
31
Chapter 9
Selling To Government Cardholders
By Richard White
A number of important changes came out of the federal Procurement Reform Era of
the mid 1990s. Perhaps the most significant of these was the emergence of
widespread government credit card purchasing.
In an effort to reduce red tape and increase efficiency, federal end-users were given
the power to make simple purchases with a government-issued purchasing card
(called an IMPAC card, but basically just a credit card).
A manager of a federal government field office, for example, can drive down to the
local Office Depot and buy equipment and supplies for the office, just like you and
me. He doesn't have to put the purchase out for bid, doesn't have to call up two other
office supply stores for quotes, etc. He can just find what he wants and make the
purchase, as long as the total doesn't exceed $2,500.
Market Size
Over 700,000 federal, state, and local government employees possess credit card
purchasing power. Government agency credit card use is estimated to exceed $18
billion in fiscal year 2002, up from $15 billion last year. The majority of government
cardholders are federal end-users who have been delegated authority to make
purchases up to $2,500 from a single source. The $2,500 ceiling for a single purchase
is a federal limit. Some states and municipalities have limits that are much higher.
The Hidden Market
The government credit card market segment is "hidden" because there is no
convenient way to find out what local card holders buy other than surmising based on
their position or the agency they work for. For example, the office manager of a local
social security office in your city probably buys office supplies and computer
equipment, while the head of a motor pool at the military base down the road
probably buys auto parts.
The invisibility of the market is a double-edged sword: Card holders probably are
located in various government offices in your locale and it takes work to find them
and determine what they buy. The effort required to find them, however, may be
more than offset by the reduced competition resulting from their invisibility. If you
32
own a local computer store, Dell may not have found its way to the local credit card
holders who buy computer equipment. And these local card holders may prefer to do
business locally.
Start With a Basic, Low Cost Approach
How do you sell to government credit card holders? If yours is a small business, start
off with a simple, low cost approach. Obtain the most comprehensive telephone
directory for your area. The "Blue Pages" of the directory usually will show a
comprehensive listing of federal, state, county, and city agencies in your geographic
area, with addresses and telephone numbers. Use these contact listings as your
starting point. Call the agencies and find out who buys what with credit cards.
As an example, suppose you are a small business selling office supplies in a mediumsized city. Use the local telephone directory to find one or more federal, state,
county, or city government offices in your city. Those offices will have an office
manager or administrator who buys office supplies. This person will probably have a
credit card and can buy from you directly without having to consider other sources
(that is, under certain established thresholds, as discussed above).
Sound like the commercial market? It should because there isn't much difference
between the two. Will the card holder in this example have an office supply vendor
that he is perfectly happy with? Probably. Will he want to buy from you
immediately? Probably not. But, hey, what else is new in sales, right?
A prospective commercial customer will undoubtedly act much the same as a
government card holder. He will already work with a vendor and not have much
interest in you unless you can distinguish yourself by price and/or exceptional
service. One helpful distinction to keep in mind, though, between commercial buyers
and government credit card holders: the latter are encouraged to rotate their buys. Be
persistent so that the next rotation goes to you, and then perform well so that you stay
in the rotation down the road.
Marketing to Credit Card Holders
If you have success with the low-cost approach, you might try reaching out to credit
card holders with a marketing campaign followed by direct sales from the leads you
generate. Keep your campaign as focused and targeted as possible.
At the low cost end, you can email an electronic brochure to a targeted group of
hundreds or thousands of cardholders. But first you must find out who they are.
Most government agencies maintain lists of credit card holders, which are available to
the public under freedom of information laws. The availability of cardholder data
33
varies by agency, and the content of cardholder records can range from name and
address only to full contact information. Cardholder records will often have:
•
Agency name
•
Cardholder name and address
•
Telephone number
•
Email address (sometimes)
You can obtain this public credit card data yourself for agencies in your business
area. Many federal Web sites publish credit card holder contact data, but few state
and local sites do. When the data is not at an agency's Web site, you will have to
request it using formal public information request procedures. Expect to find the data
in varying formats, in both electronic form and paper. (Only roughly 20% of credit
card data is available in electronic form.)
Alternatively, you can purchase the Fedmarket.com CD-ROM of federal credit card
holders, which contains data for about 118,000 credit card holders. Custom searches
of the credit card holder database are also available. Our CD-Rom of Federal, State,
and Local Purchasing Agency Web Site Addresses will save you considerable time if
you decide to try to find the credit card holder data yourself. The Internet addresses
of purchasing sites are available by state. Bidengine.com is a similar time-saver.
Targeting Credit Card Holders
One of the keys to selling in the government credit card market is to determine how
you can cost-effectively reach credit card holders using public contact lists. How you
do this will depend on the products or services you offer.
As examples:
•
An office supplies company might contact every cardholder in its geographic
shipping zone. The bigger the zone the more emphasis should be placed on
fast shipping at low costs and customer service.
•
A company selling motor vehicles wouldn't focus on credit card holders, since
they typically do not make purchases of this size, at least at the federal level.
•
A medical supplies company might contact the cardholders in health- related
agencies.
What type of message you send will depend on the type of contact information
available for the target audience you want to reach. As examples:
34
•
A laboratory supply company might send a targeted email message to all or a
subset of cardholders with email addresses with a link back to catalog
information maintained at its Web site.
•
A small services company might start by personally calling a test group of
cardholders in its home city.
•
A janitorial supply company might direct mail its brochure or catalog to credit
card holders in its shipping zone.
You should consider starting with several targeted campaigns--i.e., test samples using
different contact techniques and messages. Test campaigns are particularly important
for direct mail because of its high cost.
We do not recommend sending sales literature to fax numbers without first obtaining
express permission from the recipient. There are specific federal laws against this
practice. Also, depending on where recipients reside, there may be specific state laws
against sending untargeted and/or unsolicited email. The law in this area is in flux
and far from uniform right now. Before beginning any email campaign, it's prudent
to do thorough legal research or consult with an attorney.
In any case, email campaigns should be targeted based on expected interest. Give
buyers the opportunity to "opt out" of future messages, and be diligent and responsive
with regard to their requests. Needless to say, there are no benefits to be gained in
trying to communicate with buyers that have no use for your product or service.
35
Chapter 10
Small Purchases
By Richard White
In this chapter we talk about small purchases, defined here as government buys in the
$2,500 to $25,000 range. We've touched on this subject in prior chapters. This time
we devote an entire chapter to it, and get into a bit more detail.
The Market Segment Features
Here are some of the key features of the small purchase market segment:
•
Like under-$2,500 procurements (or micropurchases), small procurements
tend to be "hidden" from the public. Generally, small procurements are not
publicly advertised. Some exceptions: when a buyer is looking to increase
competition or a particular product/service is difficult to find.
•
Size ranges from $250 to $280 billion of the total federal, state, and local
$700-billion market.
•
Purchases are made with three informal quotes obtained by telephone, fax,
email or regular mail.
•
Payment is made with a credit card or purchase order.
•
Quotes make up the purchase documentation so a buyer can act quickly and
efficiently.
•
Official buyers perform small purchases for end-users. (Note the distinction
here: in the under-$2,500 micropurchase segment, end-users, using their own
government-issued credit cards, often buy for themselves). End-users may or
may not provide buyers with preferred suppliers. They might for a scientific
instrument, for example, but not for items like office supplies.
Special Opportunities for Small Businesses
Here are two principle reasons the small purchase market segment is ideal for small
businesses:
36
•
Small business preference procedures vary, but as a general rule most small
purchases are set aside for small and small disadvantaged businesses, unless
this type of company cannot be found to satisfy the requirement.
•
Buyers like to keep their small purchases local, buying from businesses that
are part of the community they live in.
Selling in the Small Purchase Market Segment
Buyers making small purchases use various methods to find the right vendors for
their three-or-more quotes. At all levels of government, buyers will often rely on one
or more of the following sources:
•
Their own vendor files and personal knowledge. (Hopefully, your sales visits
and/or telephone calls have made a difference in this regard.)
•
Their own manual or electronic bidders' lists.
•
Agency- or government-wide vendor directories like the federal Central
Contractor Registration and PRO-Net databases. (Most states have a central
vendor directory.)
•
Industry directories like Thomas Register.
•
Government e-procurement systems. Most large states have them and the
federal government has several. Some of these systems are catalog-based,
some are RFQ-based, and some are both.
•
Commercial business-to-government e-procurement systems like our own
Govcommerce.net.
Become a part of the above resources, but remember: focus. Don’t scatter your
company information around in various directories just for the heck of it.
Concentrate on those locations that matter to your target agencies.
Buyers typically rotate companies they contact for a quote: often the last supplier
plus two new sources. As we've emphasized over and over, your company will not be
contacted if buyers don’t know you exist. Get out there and sell!
If you have a technical or complex product or service, sell the end-user. If you’re
successful, the end-user will let the buyer know that your company is a preferred
source for the required product or service. If you sell common commodities, focus on
the buyer.
37
Finding Buyers
Here are some tips on becoming known to buyers:
•
First, define your geographic area: How far away can services be performed
effectively? How far can products be shipped without excessive shipping
costs?
•
Second, find the buying offices and official buyers within your geographic
area. We have some products that can help in this regard:
a. At Fedmarket.com, we sell a CD-Rom of Federal, State, and Local
Buyers.
b. Consider using our CD-Rom,
http://www.fedmarket.com/products/cd_urls.html, of Federal, State,
and Local Procurement Site Web Addressees. This product allows
you to find the purchasing agencies in your area, buyer contact
information, and related information on how to do business with the
agency. The Internet addresses of purchasing sites are available by
state.
c. Subscribe to our brand new online buyer information service,
FedBuying Intelligence (FBI),
http://www.fedmarket.com/products/fed_buy_intel.html. FBI tells you:
what federal buyers bought; when they bought it; how much they paid;
which agency the buyers work for; how to contact the buyers.
•
Third, get on each targeted buying office's bidders' list. Find out how each
office locate vendors -- e.g., their own internal bidders' list, PRO-Net,
Fedmarket.com's Mammoth Vendor Directory, state vendor databases, etc.
•
Fourth, target mail and e-mail brochures, catalogs, and company Web site
addresses to buyers when personal sales calls are not practical. This should be
done in conjunction with getting on buying office bidders' lists.
•
Finally, follow up with telephone sales calls to the targeted buyers.
Conclusion
To sell in the under-$25,000 market, a business must generally be more diligent in
becoming known to government buyers. Because the buyer is relatively free to pick
and choose as he wishes, vendors need to make sure their companies come to mind
when the buyer is ready to seek his three quotes.
38
Like the commercial market, sales are made most effectively through one-on-one
personal contact. Sell government buyers like the commercial customer down the
street: let them know who you are and what you have to offer.
39
Chapter 11
Focus and Commitment
By Richard White
Throughout this eBook we’ve talked here and there about "focus" and "commitment",
a couple of words that are easy to toss around: "You’ve got to be focused." "You
must be committed." But what do we really mean? In this chapter, we explain in a
bit more detail:
The cool economy and the war on terrorism have created an intense interest in the
government market, especially at the federal level. In the expanding economy of two
years ago, many commercial sector companies had no taste for what they considered
to be a strange, low margin market. Now, attitudes have generally shifted to,
"Hmmm, tell me more about government contracting."
The government market often is misunderstood with the preconceived notions
ranging from "it’s easy" to "it’s impossible." The "it’s easy" view typically goes like
this:
•
Where do I go to have government agencies give me business? or
•
My company has hit a downturn; how do I quickly switch gears to selling to
government?
The "it’s impossible" view includes:
•
Government contracting is political and funneled to the insiders.
•
The big guys grab all the business and the little guys get screwed.
•
I’ll never know enough about this mysterious market to have any success in it.
As you might suspect, the realistic view falls somewhere in between these extremes:
government contracting is not easy but it’s not impossible either.
Inexperienced companies can enter the government market with entry costs that are
commensurate with the size of the company and the expected return on investment.
Like most successful business endeavors, it first takes a full commitment from
management and then requires focus, persistence, and patience.
Commitment to the market means you’re willing to spend time and money to achieve
40
success. But be prudent. Spend your time and money wisely. Focus intensely on
finding government customers who are ready to buy your product/service. That’s
really what it comes down to. Don’t waste your money in the government
marketplace if you are not first willing to make that commitment.
After Commitment, Then What?
Assign yourself (if you’re the business owner) or a senior sales person the
responsibility of market entry, providing yourself or him or her, a realistic budget to
work with.
YOU have to do the work: Don’t fall into the trap of assuming that governmentemployed small business advocates are going to deliver business to you. At best,
they’ll point you to a general group of potential customers and, at worst, point you to
reading material and conferences that are only marginally useful. ("Time-occupiers"
that can lull you into thinking you’re accomplishing something.) You have to do the
selling with your own sweat and blood. No one will do it for you. But you already
knew that.
YOU have to find the customers: Don’t assume that end-users and buyers will find
you. Seek them out and sell them directly with personal sales calls. Don’t assume
that direct mailing, faxing, or emailing alone will sell your products or services.
These may be valid marketing techniques but recognize them for what they are:
marketing not sales.
Use Sales Focus to Keep Your Sales Costs Manageable
Sales focus has three primary elements:
1. Start with a small group of agencies: The three levels of government (federal,
state and local) are composed of about 85,000 agencies. That number alone
should be enough to convince you of the need for intensely focusing your
sales efforts on a few selected agencies. Start small and expand your focus
after finding success. Focus your efforts on a small, targeted set of potential
customers as a trial and learn from the experience. In general terms, this focus
should be by geography for service businesses, and type of customer for
products.
2. Focus on buyers who actually buy your stuff: Do the research to understand
agency missions and the needs of agency end-users. Find customers who
actually NEED what you sell.
41
3. Target procurements of a size your company can realistically win: As a
general rule small businesses should sell in the micro purchase, small
purchase and subcontracting markets. Leave the large purchases (fixed price
and negotiated) to the medium- and large-sized businesses. There are two
main reasons for this: the costs of bid preparation are high, and often only
medium or large businesses are capable of performing under the resulting
contracts.
Let’s discuss further this third element. Not surprisingly, sales costs and barriers to
market entry increase with procurement size.
Micro Purchases
Governments have issued credit cards to over 800,000 end-users. You only need to
find the credit card holders close to you geographically or those who buy your
product nationally (assuming you can cost- effectively ship throughout the country).
Remember: once you’ve made an end-user happy, he can buy from you without
seeking out competition. Likely, your sales/close ratio will be the best of the three
size-based market segments.
Your primary sales costs are in finding the cardholders, finding out what they buy,
and making a personal or telephone sales call. The finding part might seem daunting
but it isn’t if you (again) focus. Use the local telephone directory, procurement web
sites, small business specialists, or the Fedmarket.com credit card holder CD-Rom to
find cardholders. Call them and ask what they buy.
Small Purchase Market
Governments employ over 150,000 official buyers who make purchases with
informal requests for quotes from three vendors. Like micro purchases, you only
need to find the right official buyers (and sometimes end-users) close to you
geographically or who buy your product nationally if you can cost effectively ship.
Most small purchases are not publicly advertised, so your sales/close ratio should be
considerably better than it would be for publicly advertised requests for quotes.
As in the micro market segment, your primary sales costs are in finding the buyers,
finding out what they buy, and making a personal or telephone sales call. Find them
by using the general sources mentioned above, or Fedmarket products such as
FedBuying Intelligence (FBI) and our CD-Rom of Official Government Buyers.
Large Purchases
The paperwork and competition associated with large purchases make them out of
42
reach for most small businesses. Leave these for larger businesses unless you sell in a
complex product/service niche where you stand up well to the competition. Go after
the subcontracts instead.
Success Story
A reader called us recently and said the following:
"I am the sole proprietor of a small business. I do about $150,000 a year providing
whatever the government needs in commodities and unique parts. I find buyers
however I can, by using the Internet and telephoning the agencies. I find credit card
holders by digging on the Internet and using Freedom of Information Act requests. I
sell by calling buyers and telling them that I will provide whatever they need quickly.
I ask them to give me a try and see for themselves. The purchases average about
$10,000. I’ve been reading your eBook and like it a lot. How can I do better? What
can you do to help me?"
Talk about commitment. This person is doing direct sales by himself after personally
and persistently digging out buyer contact information. He is focused and going after
business aggressively.
My comments back to him were as follows:
"You seem to have plenty of buyer contacts, so continue spending your limited
resources making sales calls. You have found your niche in the small purchase
market. You’re finding buyers, calling on them, asking for their business, and
serving them well. You’re doing very well! There’s probably not much we can do to
help you, at least at your present size."
Are there any lessons here for larger businesses? Yes, it’s all about focus,
commitment and exceptional performance. For businesses of any size, there’s not
much more to it than that.
43
Chapter 12
Invitations For Bids
By Richard White
Publicly-advertised fixed price procurements are made using either a sealed Invitation
for Bid (IFB) or a Request for Quote (RFQ). Governments require more formality in
these larger procurements because there is more money at stake: they want to be
especially careful that they get the best value and that everyone is treated equally in
the vendor selection process. The downside of this extra care is more paperwork and
higher bidding costs for everyone involved.
Before the enactment of major procurement reform laws in the mid-1990s, most
publicly-advertised fixed price procurements were made using the formal Invitation
for Bid (IFB) process. IFBs were used almost exclusively at the federal, state, and
local levels for products or services that could be clearly defined in specifications.
IFBs are still used extensively for construction bids at all levels of government. They
continue to be the primary solicitation mechanism at the state and local levels for
public fixed price procurements. We focus on IFBs in this chapter.
The Sealed IFB Process
IFBs require that the government accept sealed bids that are opened at a public place
where the prices are displayed for public viewing. In this regard, the Federal
Acquisition Regulation (FAR) states:
"After bids are publicly opened, an award will be made with reasonable promptness
to that responsible bidder whose bid, conforming to the invitation for bids, will be
most advantageous to the Government, considering only price and the price-related
factors included in the invitation."
For all practical purposes, this means the lowest bid price wins (unless it’s TOO low,
as discussed below), unless the government has included in the IFB a clearly
documented means of quantifying the "other price-related factors." (Remember: the
agency’s award decision must stand up to public scrutiny and be consistent with its
procurement regulations.)
Regulations also state that the low bidder must be responsive (meet all of the
specifications) and responsible (reputable and financially sound). This may sound
ominous but it really isn’t in practice. If yours is a reputable company with a sound
44
balance sheet and you’ve responded to all the material elements of the bid document,
then you should be fine.
In a case where your company is the low bidder but is denied an award on the basis of
irresponsibility or unresponsiveness, it might be wise to consult with an experienced
government contracts lawyer.
Selling in the IFB Market
Personal sales and relationship building are still the keys to success, even for large,
fixed price procurements. The playing field is never completely level in government
bidding -- even with IFBs -- because the process involves people (with all of their
natural biases) making subjective judgments.
In preparing to bid on a project, you need to gather information on pricing and
performance expectations. In gathering information, sell your capabilities whenever
possible -- keeping in mind the subjective nature of the process.
What kind of information are you looking for? Mainly you’re trying to gauge
performance, and especially pricing, expectations.
If your bid price is too high, you have no chance of winning. And if your bid is too
low, you may have problems as well. Suppose, for example, that you own a
construction firm and the local army base needs to construct new housing for military
personal. At a minimum, you need to find out the pricing for such housing built in
the recent past. In that process of information gathering, suppose that you discover
the base most recently paid "x" dollars per square foot for similar housing, and this
equates to a bid of around $900,000 on the current project. This is roughly the
number the base will expect to pay.
Let’s say you bid $600,000 and end up the low bidder. Because you’re so far below
what was expected, official buyers will probably scrutinize your bid with great care:
Did your bid assume the quality of materials specified? Are you violating any service
contract labor laws? Are you short on project management costs? Did you fail to
understand the specifications, and is that failure reflected in your bid? More
generally, can your firm be trusted to build quality housing?
Pricing information is public information. In the case of IFBs, even the losing bids’
pricing information is available. (Remember: bid prices are revealed at the public
opening and available for review after that.) You need to assemble that information
before bidding so that your numbers are within the range of what’s expected. Again,
if you are high, your bid will not even be considered, and if you are substantially
lower than the government’s estimate, your bid will be put under a microscope. That
45
doesn’t mean a lower-than-expected bid will lose. It simply means that yours may be
thrown out if it doesn’t withstand the close scrutiny.
Construction is used as an example here, but the same principles apply to any type of
product or service acquired under sealed bidding. Remember: price with care; the
accuracy and precision of your bid price will determine your profit (or lack of it).
With an IFB you are bidding a "fixed" price, and there is little to no room for
cost/price maneuvering if you are awarded the contract. So, before submitting your
bid, it’s critical to have as much relevant information as you can get your hands on.
Pricing IFBs
Let’s talk a bit more about gathering pricing information:
Buyers are more willing to talk if you meet with them before the procurement is
published. After publication, your questions to buyers have to be answered in writing
and sent to the other bidders. If, on the other hand, you are there before the
procurement is published, a buyer is required by public information laws to give you
what you ask for (with some exceptions, such as trade secret and classified
information) and your competition won’t even know you were there.
Don’t feel too smug if you obtained valuable insights before the public
announcement. Your competition may have been there before you and know just as
much -- and you may never know it. Buyers generally do not divulge whom they’ve
talked to in the pre-bid stage.
Finding End-users and Buyers
As we’ve said before, to talk to buyers you’ve got to know where the relevant ones
are. The following Fedmarket.com products are designed to assist you in finding
end-users and buyers. (Remember, finding end-users can be difficult but it is a lot
easier if you ask buyers which end-users in their organization require your product or
service.)
•
FedBuying Intelligence, http://fbi.bidengine.com, tells you which federal
buyers bought your product/service, when they bought it, how much they
paid, and from whom they bought it.
•
Bidengine, http://www.bidengine.com, provides a convenient way to find
awards data at the state and local level. Bidengine searches about 500 state
and local Web pages containing awards data by keyword. If you sell facility
repair services, for example, Bidengine can tell you what agencies have
purchased your services using the keywords "repair" and "maintenance."
Often the awards Bidengine uncovers will tell you what type of repair services
46
were bought, from whom, and the price paid per project, unit, or hour.
Remember: if the agency bought repair services once, they will probably buy
them again. A call to the buyer should result in the name of the end-user who
requires the repair services.
47
Chapter 13
Publicly-Advertised RFQ Market Segment
By Richard White
Requests for Quotes (RFQs)
Since the advent of major procurement reform, the federal government and selected
state and local governments are now using requests for quotes (RFQs) to buy
commercial products and services. The RFQ procedure is a simpler, more
streamlined way of making a buy. Specifications are based on standard commercial
definitions, rather than lengthy government-written specifications.
Awards following RFQs usually go to the low bidder -- but not always. In most
jurisdictions, buyers are allowed to conduct a "best value analysis" and issue an
award on the basis of that analysis. Some factors that a buyer will typically consider:
•
Special features of the supply or service required for effective program
performance
•
Trade-in considerations
•
Probable life of the item selected as compared with that of a comparable item
•
Warranty considerations
•
Maintenance availability
•
Past performance
•
Environmental and energy efficiency considerations
As you can probably surmise, use of best value analysis has a major impact on the
sales process.
Some government procurement regulations allow the use of brand name in the RFQ,
but, more and more, the use of brand name is being discouraged. Even when brand
name is mentioned in the specifications, the regulations usually require a general
description of the physical, functional, or performance characteristics of the brand
name, along with a statement that an "equal" item that meets the description will be
acceptable for award.
48
At the state or local levels, consult the purchasing regulations of the jurisdiction
posting the RFQ to determine if the government uses best value analysis and, if so,
what non-price factors are considered in conducting the analysis.
At the federal level, FAR §§ 8.404 (b)(2) (best value direct ordering factors under
Federal Supply Schedules), 13.106-2(b), and Subpart 15.1 (Source Selection
Processes and Techniques) are worth reviewing to get a better understanding of buyer
best value guidelines. (ARNET is a good place to read the FAR:
http://www.arnet.gov/far/loadmainre.html.)
Selling in the RFQ Market
What’s your strategy when best value analysis is applied to the price? Obviously,
find out what factors the buyer is allowed to consider and emphasize the features in
which you’re strongest -- warranty terms or maintenance availability, for example.
Don’t hesitate to ask the buyer what factors she’ll be considering. The answer can
help you determine what to stress in the bid and, equally important, not to bid at all if
you don’t quite measure up in those critical factors and features that are important to
the buyer.
A "no bid" is a strategic decision that can save sales dollars, not to mention
disappointment. Successful government sales units consider making the intelligent
no bid decision a critical part of what they do. Although simplistic, the saying "Only
sell to people who are ready to buy your product" rings true in making no bid
decisions.
Frequently, you'll have to sell an end-user aggressively to overcome "brand
preference." For example, assume that you sell a product that is not a nationally
known brand. Just like you and me, buyers are often subject to brand preferences.
Branding is accomplished with big money, national advertising, and large aggressive
sales forces. When going up against all that, make sure that you stress local
accountability (you’re there at a moment’s notice, etc.), customer service,
replacement product availability, and warranty terms.
Selling Services Specified in an RFQ
Prior to procurement reform, services that could be purchased using a fixed price
procedure were bought using invitations for bids (IFBs). Services are often
purchased now using RFQs, at least in cases where the services performed can be
expressed in units -- e.g., dumpsters emptied, hours of work, etc.
49
In large fixed price service procurements, you should sell the quality and
effectiveness of your service, along with your ability to manage the delivery of the
service. You’ll need to focus heavily on your past successes, mainly because service
pricing is so subjective and difficult for the government to evaluate. For example,
how does a buyer decide whether a computer programmer is worth $150 per hour
without first hiring the programmer and evaluating his work? Is a researcher with a
master’s degree worth $50 per hour more than one with a bachelor’s degree? Who
knows?
In the end, the most important factor is trust. Generally, end-users want to know
about the company (its work, its reputation, its personnel) before deciding to hire.
Selling Ahead of the Procurement Announcement
Throughout this eBook we’ve stressed the importance of selling ahead of the
procurement announcement. In the case of current government customers, keep them
happy and ask them what’s coming down the road. Perform well, in other words, and
find new business with those same customers. Keep the flow of business coming.
There are few customers better than a happy government customer.
How do you "pre-sell" buyers and end-users with whom you’ve never done business?
For some ideas, you might go back and re-read chapters 4 and 5 of this eBook.
Also, FedBuying Intelligence (FBI), http://fbi.bidengine.com, and Bidengine,
http://www.bidengine.com, are both powerful research tools that can help you get it
done. (Remember, oftentimes the first step is to locate buyers. Finding end-users can
be difficult, but it can be a lot easier if you first ask the easier-to-find buyers which
end-users in their organizations require your product or service.)
Pricing RFQs
Pricing fixed priced bids is risky because the amount of your profit (or loss) will
depend on the precision of your bid price. Know all you can about your competitors’
prices and find out the previous prices paid by the government for the product or
service being purchased.
Unlike the commercial sector, government must divulge what it has paid for the same
product or service in the past. Unlike IFB awards, RFQ awards do not involve a
public opening of all the bids. Prices are available upon request but usually only for
the winning bid.
50
Increasingly, pricing data are available on the Internet. For example, the Defense
Logistics Agency publishes on the Web price history data by National Stock Number
(NSN). DLA price histories show past purchases of an NSN item and the price paid
for each purchase. Similar data is sometimes shown at state and local purchasing
sites. If you can’t find it on the Internet, ask the buyer.
51
Chapter 14
Publicly-Advertised Negotiated Procurements
By Richard White
The publicly-advertised negotiated procurement market segment is a new world for
companies that have not bid on negotiated procurements using requests for proposal
(RFP) procedures. Responding to RFPs is unique for several reasons.
•
Proposal preparation is a complex, expensive process with high stakes both
for the winners and the losers.
•
The award decision is placed in the hands of end-users, with oversight
performed by the official procurement organization.
•
The proposal evaluation process is subjective, leaving a tremendous amount
of latitude on the part of end-users in making an award decision.
•
The negotiated procurement segment is one of the least commercial-like of the
government market segments.
Commercial vs. Government Procurement
When making purchases, companies of course are not subject to public procurement
laws and thus have the luxury of making large, complex purchases in a more
streamlined (and perhaps rational) manner than governments. Some issue RFPs for
large projects but, when they do, they usually send the RFP to a select set of vendors,
and the selection of the vendor does not necessarily have to be quantified and stand
up to public and legal scrutiny. They take all factors into account and make a rational
judgments on which vendor will be the best for the company.
Governments try to do the same thing as commercial companies in procuring large,
complex products or services, except they are subject to procurements laws requiring
that:
•
The procurement is open to bids from all qualified companies.
•
The award decision is quantified wherever possible to level the playing field
when comparing vendor proposals.
52
•
The award decision is documented in a manner designed to withstand public
scrutiny and a formal, legal protest from a losing vendor.
The Award Decision
Government award procedures generally are as follows:
An RFP is issued containing the project specifications, requirements for the content
of technical and price proposals, formal technical and price proposal evaluation
procedures, and numerous clauses and detailed bid submission instructions.
The basis of the evaluation procedure is usually a numeric scoring scheme
establishing a maximum number of points assigned to evaluation factors (criteria)
such as understanding of the problem, technical approach, project team experience,
and company qualifications. End-users and contracting officers jointly decide the
factors and the scoring weights. Price usually is not assigned points but it can be. In
most RFPs, a statement is made about the importance of price.
An evaluation committee is formed usually comprising end-users (e.g., Chief
Information Office or his designate for an IT service procurement) and primary stake
holders (e.g., users who are impacted by the project). Like scoring factors, the size of
the evaluation committee varies among procurements.
Each evaluation committee member scores vendor proposals according to the
evaluation procedure published in the RFP. Price is always an important factor and
prices are weighed against technical scores. An award recommendation is then made,
documented, and sent to the contracting office.
The Purchasing Office Director (state and local agencies) and the contracting officer
(federal government) play an important role in the award process and are delegated
the responsibility of making the final award decision. They (or those working for
them) write the RFP with input from the end-user, and they oversee the proposal
process. Their job is to ensure that the playing field is as level as possible given the
inherent subjective nature of the process. Stated simply, their job is to interface with
the bidders on all RFP issues and questions, make sure the procurement regulations
are followed, and ensure the integrity of the process.
Generally speaking, government proposal evaluation practices are about as fair as
they can be, given the "unscientific" nature of the process. In spite of the formality of
point scoring and weighing of prices versus point scores, the decision, in the end is, is
fraught with subjectivity. There's just no avoiding that.
Reading GAO Bid Protest Decisions often helps one get a sense of the subjective
nature of the negotiated procurement process. One example is Matter of SelRico
Services, Inc., at http://www.gao.gov/decisions/bidpro/2866644.htm. (In that case,
53
GAO upheld a contract award to a lower-priced, lower-rated offeror in a procurement
where price was stated as the least important evaluation factor.)
Sales Environment
End-users are the keys to selling products and services purchased using RFPs. Often
they will be professional managers, scientists, or engineers, who know their industry,
communicate with other professionals, read trade journals, and attend trade shows
and association meetings. Their jobs, performance ratings, and salaries are often tied
to the quality of the contractors they select.
If the RFP is for services, they are intensely interested in your project manager and
the quality of personnel you can provide. They'll want to know what work you have
done in the past, references, and, in general, something more concrete than just
reading a paper proposal.
If the RFP is for complex technical products or a solution (products and services),
they'll often have preconceived opinions of what products or services they want.
They do not operate in a vacuum and act much like commercial end-users who know
their industry and the products and services offered therein.
Mainly because of their size and importance to the end-user, many negotiated
procurements have "behind the scenes" stuff going on that greatly influence the
selection of a contractor. Here are some examples:
•
Firms may have already completed selling efforts with end-users. You can
safely assume at least one company has pre-sold end-users before a
procurement is publicly announced. This is not illegal if it's done early
enough in the procurement process (i.e., the conceptualization phase). This
doesn't mean that the end-user has already selected a contractor. On the other
hand, it does mean that pre-selling has taken place, often aggressively and
effectively, and this could affect the award decision.
•
With highly specialized services (e.g., research and development) program
personnel may have ongoing relationships with firms that go back many years,
or program personnel may know the "experts in their field" as part of their
day-to-day work.
•
There may be an incumbent contractor performing identical or similar work.
Under a subjective system you cannot assume that the only factors involved in the
evaluation of your firm is what is on the written page. Large government contractors
employ ex-government personnel, retain lobbyists, put former top officials of the
government on their boards of directors, and socialize with government personnel.
These practices are not illegal. Medium and small firms follow similar practices to
54
varying degrees. Just keep in mind that these practices can make a difference in
seeking negotiated contracts.
Sales Strategies
What does all this tell us?
1. Get there early and sell your project management, personnel qualifications,
proven solutions, product feature and benefits, and company experience and
reputation.
2. Find out who has already been there selling the incumbent contractor (if it is a
repeat contract), whom they have worked with in the past, and pricing data.
3. Do not write an expensive proposal in response to an RFP unless you have
done the two steps outlined above.
4. Early on, in the "conceptualization stage," develop personal, professional
relationships with end-users and key decision-makers. Why? Here's an
example: suppose an end-user has to evaluate and assign points to the resume
of a project manager. A few more points may creep into the score if the enduser knows and respects the person behind the resume. Remember that the
end-user may have to work with the manager every day during the project and
the manager's performance may well reflect on the end-user.
Sales Costs
Heavy front-end sales efforts and large, expensive proposals cause sales costs to be
high for negotiated procurements. On the other hand, your wins tend to be large
dollar and you can nurture a single customer for many years if you provide
exceptional contract performance.
The key to keeping sales costs reasonable is a high win percentage. You will win
often if you:
•
Know your strengths and capabilities (and weaknesses too) and go after
business that fits your strengths. Spend marketing dollars up front to find the
opportunities that fit your company perfectly. In other words, narrow as much
as possible the number of prospective customers to whom you try to sell.
•
Sell aggressively to the prospective customer well before negotiated
procurements are publicly announced.
•
Use the information gathered by "early selling" to make intelligent bid/no bid
decisions. Don't write an expensive proposal if your intelligence indicates
that your chances of winning are not excellent. Losing is not only costly but
55
often emotionally draining. (Most companies ask their key people to work at
night and weekends to write proposals.) Carefully thought-out no bid
decisions are critical to keeping your win percentage high. Bail out of
potential opportunities early and save sales costs if up-front research indicates
that your chances of winning are not good (e.g., if your intelligence says that
an incumbent contractor is well liked by the customer).
On the surface, the negotiated procurement process may seem overly formal and
subject to gross manipulation. Under the surface, it really isn't that much different
than what you do in selecting an accountant, a computer developer, or a complex
product. In the end, it boils down to a rather subjective decision arrived at after
considering a wide range of factors. Think of the sales process as an educational
process helping the end-user make the best possible decision.
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Chapter 15
Responding To Public Procurements
By Richard White
In the prior three chapters we discussed how to sell in the publicly-advertised IFB,
RFQ, and RFP markets. In this chapter we discuss how to respond (prepare a bid) to
bid requests.
Gathering Bidding Intelligence Information
Previous chapters have discussed the need for aggressive sales efforts prior to the
public procurement announcement. In the early selling stage, you will also be
gathering valuable information for writing your proposal (if one is required), making
a bid/no bid decision, and pricing the bid.
As we said earlier, blind bids on public procurements usually do not win and are
therefore extremely costly. Even if you should win a blind bid, you run the risk of a
low, unprofitable price because you did not completely understand the requirements
and/or the performance environment.
As part of the sales process, find out everything you can about the procurement,
including insights into the requirements, possible difficulties in performing the work
or delivering a product, and any other factors that could influence your costs and
price.
Most importantly, if you decide to bid, you will need to prepare a proposal that gives
the prospective customer exactly what he wants. Find out what they are by asking
for. Ask about the customer's problems, specific needs, and desires. Find out what
the customer perceives as value, how they define value, and what their real "hot
buttons" are from the end-user prospective.
Gathering Information on the Competition
You can generally obtain the following information from the contracting officer for
winning bids (either sealed or negotiated), or for existing contracts that are being resolicited:
•
The existing (or incumbent) contractor's name.
57
•
The total amount of the contract and line item pricing.
•
An overview of the requirements.
Further, you may request the following information about an existing contract from
the agency's Freedom of Information Act (FOIA) Officer:
•
Winning bids and proposals.
•
The contract itself, including any modification.
The FOIA Officer will omit any information from the winning bid or proposal
considered proprietary.
Whenever possible, ask the contracting officer for information before making a FOIA
request. Answers to FOIA requests sometimes take weeks or months, and often the
government charges for the information. Recently, the government has been
excluding more and more information from responses to FOIA request under the
grounds of confidentiality or national security.
Often contracting officers will prefer answering your questions about a procurement
rather than having to do the paperwork to satisfy your FOIA request. Generally
speaking, they will be happier with you if you use the informal questioning approach.
Sometimes lower level clerks will provide more information than the contracting
officer. Find out early who is willing to tell what.
Preparing Bids and Proposals
Preparing bids (IFBs and RFQs) and proposals (negotiated procurements) is time
consuming and costly, especially if you do not win your share of the business. The
following basic rules apply to all three types of public bids:
•
Price and deliver exactly what the customer wants, nothing more and nothing
less. Offering less will result in a non-responsive offer and more will price
you out of the competition.
•
Ask questions when you do not understand the specifications. Attend
scheduled bidder conferences (if held) and ask questions by telephone or
electronically.
•
When responding to a request for proposal (RFP), answer every question and
requirement specified in the RFP. One trick is to isolate all of the "shall"
statements to make sure you do not miss a single requirement.
•
Submit on or before the due date. Proposals submitted past the deadline are
not accepted.
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•
If a company wishes to change or withdraw a bid, it may send a letter or
telegram to this effect to the procurement office. However, the notification
must reach the office prior to the time set for the bid opening. Similarly, a bid
or proposal that arrives late -- even one minute -- cannot be accepted.
Responding to Negotiated Procurements
Responding to negotiated procurements is a specialized field because of the need to
write technical and cost/price proposals in response to a request for proposal (RFP).
(Occasionally large service IFBs require technical proposals to establish
responsiveness, but this is the exception rather than the rule.)
Making the bid/no bid decision is the single most important step in the process. Each
bid will require a lengthy technical proposal that is both costly in dollars and in
technical person hours. Accordingly, bid wisely and selectively. A no bid decision
can save a lot of money.
Indicators for a yes bid decision are:
•
You know the procurement history and have information on your chances of
success.
•
Your capabilities are a perfect or near perfect match with the requirements.
Remember that a subcontractor can fill missing capabilities. Bid consortiums
and complex subcontracting are becoming increasingly common in large,
technically complex federal bids.
•
You know that you can bid a competitive price.
Indications of a no bid decision are:
•
You are bidding blindly on a public procurement and all the information you
have is in the RFP.
•
You are attempting to stretch your qualifications and capabilities to meet the
requirements.
•
There is an incumbent contractor. Most incumbents re-win their contracts.
You probably shouldn't bid unless you know the customer is unhappy or you
have special knowledge of the procurement.
Spend time and money in gathering information for the bid/no bid decision. It will be
far less costly to spend the time and money up front than spending it on losing
technical proposals.
If you decide to bid, your next step will be to prepare a technical proposal.
Thousands of articles and many books have been written on writing effective
proposals. We will cover the essential elements of proposal writing in chapter 17.
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You will be required to prepare a project task and expense plan as part of your
technical proposal. Knowing exactly who will do what under the proposed contract,
and what material and related resources will be required, will become the basis for
your cost/price proposal. Costing and pricing bids will be discussed in the next
chapter.
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Chapter 16
Pricing Bids
By Richard White
Pricing your bid correctly (or not) directly affects two fundamentally important areas
of your business: (1) whether you win or lose the bid, and (2) whether you gain profit
or suffer loss on the contract. Is there anything more important in proposal
preparation than pricing? Probably not. So how do you price correctly?
Pricing to Win
First, in pricing to win, you’ve got to gather pricing intelligence. You goal is to
predict what government buyers expect to pay, and what competitors are likely to
offer as their prices, for the product or service. You’re looking for the range between
too low (which raises red flags with buyers) and too high (the price above which you
have no chance of winning).
In gathering pricing intelligence, you’re focusing on "same" or "similar." You want
to look at same or similar products or services, agencies, buyers, end-users, etc. You
also want to look at contracts that are fairly recent. The process is loosely analogous
to an attorney gathering case law to support his legal arguments or predict for his
client how a court will decide a dispute. He’s looking for similar fact patterns in
cases handed down from authoritative courts within the particular jurisdiction. If he
can’t find something similar, he’ll look beyond that jurisdiction to other cases. He
starts close, sees what he can find and expands out from there if necessary.
In pricing contracts, start with the existing buyers and end-users. Have they bought
the same or similar products or services recently? A few years ago? How about
others within the agency? Within the department? In short, start close and expand as
required.
Remember, as we’ve said before: unlike the commercial sector, government agencies
must generally divulge what they have paid for the same product or service in the
past. Remember too: buyers are more willing to talk if you meet with them before
the procurement is published. After publication, your questions to buyers have to be
answered in writing and sent to the other bidders.
The Internet is another source for pricing information. For example, the Defense
Logistics Agency publishes on the Web price history data by National Stock Number
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(NSN). DLA price histories show past purchases of an NSN item and the price paid
for each purchase. Similar information can be shown at state and local purchasing
sites. Information on competitors’ prices also can be obtained by accessing
government e-marketplaces that are based on multiple award schedule contracts.
Product and service catalog pricing is publicly available at these marketplaces, but
remember that the prices shown may higher than the prices that the competitor would
bid on a public procurement.
Pricing to Profit
Second, in pricing to make a profit, you’ve got to take a hard look at your own
expected costs in performing under the contract. In estimating costs, a firm new to
federal contracting should consider using a Certified Public Accountant (CPA)
experienced in federal contracting, and involve the most experienced members of its
financial team.
If a bid price that falls within the range of what’s expected (based on your
intelligence gathering) leaves your company with no profit, then there’s probably
only one conclusion to reach: don’t submit the bid. (A few companies are willing to
suffer a loss on a contract hoping to make it up on others -- the "foot in the door"
theory. For most companies, this is a risky strategy.)
Pricing IFBs and RFQs
In fixed price bidding, losing a profitable bid is not as serious as winning an
unprofitable bid because most items are purchased frequently and the cost of
preparing a bid is relatively low. It is a valid strategy to begin with higher prices on
initial bids for frequently purchased items. Since the winning price is public
information, you can use that information in setting lower prices for later bids.
Determining the bid price is the single most important aspect in winning fixed price
bids because price is the major (and, in many cases, the only) factor in determining
the winner, assuming the bidder is responsive and responsible.
Do not submit a bid unless you know exactly what you will be delivering and that you
can make a reasonable profit at the bid price. Ambiguities and uncertainties usually
result in trouble. Pay particular attention to the bid instruction conditions of
purchase, delivery and payment. When determining the amount of the offer, be
careful to include all costs of material, labor, overhead, packaging, and transportation.
Pricing Negotiated Procurements
Bidders should submit their best cost and price when preparing a cost proposal for a
negotiated procurement. Keep in mind, however, that the negotiated purchase
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procedure is more flexible than the sealed bid procedure: there is greater opportunity
to seek modification of specifications, conditions of purchase, or delivery and
payment. Remember too that buyers may invoke a complete cost analysis.
Therefore, be prepared to support the bottom line dollar figure with facts and figures.
Although RFPs usually involve some negotiation, it does not occur in all instances.
The contracting officer can accept a proposal without any negotiation, so again,
careful attention to detail is critical. Don't get stuck with a price that's too low.
Bid pricing procedures vary considerably depending on the type of product or service
being purchased under a negotiated procurement. A negotiated price is usually
determined in four steps.
•
Develop a plan of work.
•
Estimate direct labor and other direct costs using the plan of work.
•
Develop indirect costs using an indirect cost rate.
•
Determine fee or profit.
Development of a plan of work and direct costs are technical functions best
performed by direct line management and technical staff members (those responsible
for contract performance), with oversight by company management. Collectively,
this group should determine how to perform the contract effectively at the lowest
possible cost.
Development of indirect costs is usually the responsibility of the firm's financial
department with CPA assistance as needed.
Model Price Proposal
To put all this in perspective, it’s helpful to see a model price proposal. We’ve put
one up on the Web for your convenience. Find it at
http://www.fedmarket.com/freeRes/genRes/forms.php (in MS Word). The model
proposal is for a hypothetical research and development firm. It shows the major
aspects of cost and price development, including calculation of multiple indirect cost
rates.
Indirect cost estimating
Indirect costs include all costs that cannot be directly attributed to a project, product,
or contract. These include such items as fringe benefits, overhead expenses, and
general and administrative expenses. Costs that are considered unallowable by the
federal government must be subtracted from overall indirect costs in calculating
indirect cost rates. These indirect cost rates are then applied to direct costs in
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determining total costs. An example of indirect cost rate calculations is shown in the
model price proposal.
Factors affecting indirect costs
On the surface, the example of indirect cost rate calculations shown in the model
price proposal appears straightforward. In practice, the subject of indirect costs and
their impact on bidding the lowest possible costs can be very complex. The following
are just a few of the issues concerning indirect costs:
•
Should different labor types be segregated in separate divisions to lower
overhead rates and fringe benefits?
•
Which labor categories are subject to fringe benefit scales?
•
Should you use independent contractors or temporary labor to lower costs, and
is this allowed under the federal regulations?
•
What is the impact of seniority on your labor costs?
•
How can fringe benefit costs be kept down and employee morale up at the
same time?
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Chapter 17
Managing the Proposal Process
By Richard White
Proposals are what some might call a "necessary evil" in the government negotiated
procurement market. You may have the best product in the world or be the best
service organization in your industry, but those things mean little if your proposals
don’t win.
Proposal writing is not for the feint hearted. The process is cumbersome, tiring, and
expensive. And unfortunately, too often it takes a back seat to other company
priorities and ends up being done poorly.
Some key considerations:
•
Avoid negotiated procurements unless you make a complete and total
commitment to proposal writing and are determined to do it right.
•
Select proposals carefully and selectively; write only the ones you can win,
and write proposals that are high quality and designed not to lose. (More
about this later.)
Understanding Customer Needs
An important part of your early sales efforts is (beyond selling your capabilities)
developing an understanding of the customer’s needs.
Winning proposals are written from the customer’s perspective. You have to
demonstrate that you truly understand the customer’s needs, the solutions that the
customer believes are the answer to his or her problems (not your solutions), and
what specific benefits the customer is looking for and how you are going to provide
them.
Proposal Evaluation: How It Really Works
Understanding how agencies evaluate proposals is an essential element of successful
proposal writing. You need to write proposals to make evaluators’ jobs as easy as
possible. Give them the help they need to score your proposal high.
65
Many people new to government proposal writing write their proposals to win, which
seems to make sense, right? In the government market, however, you should write
your proposals not to lose.
Why? A committee of evaluators must wade through a pile of many proposals (often
up to 20, or sometimes even more) and score them against a set of published criteria.
They don’t read through them, pick the most stellar proposal and declare a winner.
That’s not how it works. Instead, they score them one by one and compare total
scores. Then they find a natural cut-off point between the qualified and unqualified
companies. The fewer qualified companies left the better from the viewpoint of the
evaluators, because there’s less work.
The evaluators will sometimes contact the remaining qualified companies (those in
the "zone of consideration") and ask them to strengthen their weak points. Yes, you
heard it right. They don’t have to, but evaluators may give all qualified companies a
shot at bettering their score.
In short, it’s a process of elimination. So you want to write NOT TO BE
ELIMINATED. In other words, write defensively. Don’t try to hit homeruns, overemphasizing a few points in the proposal. You won’t win that way. Be consistent;
cover all your bases. It’s better to respond competently (even if not brilliantly) on all
points, rather than nail perfectly some points at the expense of others. If you blow
just one area of the proposal, you’ve given the evaluator a reason to knock you out.
Writing Defensively: A Few Tips
A few tips for providing the evaluator no reason to eliminate your proposal:
•
Write summaries, including an executive summary, summaries to begin
chapters and sections, and topic sentences to begin subsections. A summary
of a section is where you hit them with your creative ideas, themes, and
solutions. Headings, diagrams, checklists and summaries all promote
understanding.
•
Present cross-reference matrices that make it easy for evaluators to see where
you have covered every requirement in the RFP.
•
Don’t boast. Instead, make simple declarative statements about your
company, its capabilities and its people. Back up each statement with
verifiable evidence -- e.g., reference to past performance, staff
accomplishments, etc. Don’t make promises without specifics on how you
plan to keep those promises.
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•
Present what the evaluators want to hear, not what you think is best for them.
Don’t get fancy and over-propose solutions that they don’t want or
understand.
•
Know your strengths and weaknesses and your competitors’ strengths and
weaknesses. Offset their strengths and exploit their weaknesses.
•
Present the evidence that your supporters on the evaluation committee need to
justify their scoring.
•
Don’t hide your weaknesses. Instead, address them head on and negate them
as much as possible.
Proposal Organization and Management
The advice "Only write the ones you can win" may seem trite, but that’s exactly what
you must do. Select carefully and write the proposals for the procurements that you
have pre-sold.
Management should focus on making the best possible bid/no bid decisions. Make a
decision based on what you learned about the customer and the competition during
the sales process. If the decision is bid, commit 100% to writing an effective
proposal.
The best way to win is to start as early as possible in making the bid/no bid decision
and starting the proposal itself. If you wait until the last possible moment, you will
probably lose. You can bet someone out there has gotten the jump on you.
Choose your proposal leader carefully. This person should be an experienced
proposal writer/manager and know the most about the customer. If you can’t find this
all-in-one superstar, go with the experienced proposal writer and support this person
with the people who know the customer best.
Have the proposal leader prepare a proposal outline in the greatest possible detail.
Not enough can be said about the importance of a detailed proposal outline. It will
become the guiding framework for managing the project and for the writing process
itself.
Selecting the best possible staff (technical/scientific/operational) to write the solution
sections of the proposal also is critical to success. These folks need to be taught the
customer’s requirements (if they don’t already know the customer) and be able to
develop and write the solutions to meet the requirements. Chances are they will not
be experienced writers. Use the detailed proposal outline to guide their efforts and to
show them exactly what is expected of them in organizational structure, content, and
format.
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Plan the proposal project in depth. For large projects, it’s a complex undertaking
involving many people. This involves organizing project tasks, assignments and
proposal content in as much detail as possible.
Company management should be involved in all aspects of the proposal project.
They should monitor writing status as the proposal progresses and personally review
the content and quality of the results.
In summary, management must make a commitment to each and every proposal the
company writes. Assign the best people to write the proposal and support them in
every way possible. Give the proposal leader the authority and resources to produce a
winning proposal.
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Chapter 18
Proposal Writing
By Richard White
The previous chapter discussed managing and organizing a proposal-writing project.
This chapter provides guidelines and tools for the proposal writing effort itself.
Proposal writing is hard, often tedious work because of the intense concentration
required to write well. Because of this, your writing team should be given as much
help as possible. Help could include:
•
•
•
•
A proposal outline written in as much detail as possible. The detailed outline
will give the writers a structure to help make their written material look as
consistent as possible.
An automated library of proposal writing tools and standard material.
Section templates and writing examples.
Writing guidelines.
The Proposal Outline
Most successful proposal leaders and writers follow a set of guidelines for writing an
outline and conceiving proposal content. Here are some examples:
•
Write a proposal to solve the customer’s problems as they perceive them, not
how you perceive them.
•
Don’t try to think for the customer. Give the customer everything asked for in
the RFP, down to the minutest of detail. Write to each and every solicitation
requirement, even if it appears to be meaningless on the surface. Remember,
evaluators love to eliminate proposals to save time and effort or, sometimes,
to help their favorite company.
•
Write the outline using topic and subtopic sentences whenever possible.
•
Explain how you will meet each and every requirement in a clear, concise
manner. Explain why you are unique but only when you can be convincing
and the uniqueness stands up to scrutiny.
69
•
Give evaluators the material they need to support a decision in your favor.
•
Use simple, easy to understand language; avoid long-winded sentences and
paragraphs.
•
Develop a concise staffing and project management plan without any
ambiguities in staffing and personnel qualifications. Rewrite resumes of staff
members to specifically address the RFP requirements. Interview proposed
staff members to determine the specifics of their experience and its relevance
to the requirements.
•
Do not present extraneous or marginal material.
•
Tailor your corporate qualifications (and general information) to match the
specific requirements of the RFP.
•
Differentiate yourself from your competitors. Know your strengths and
weaknesses and your competitors’ strength and weaknesses, and write to all
four of these points.
•
Find ways to present your solutions as unique while still meeting the
requirements of the RFP.
•
Write to the specific benefits of your company, your project team, and your
solutions and substantiate each of these.
•
Don’t get caught in the inherent trap that your company is the customer "end
all, beat all." Everyone thinks this way but your confidence means nothing to
the customer unless it’s backed up with references, performance data, and
facts.
•
Acknowledge your weaknesses in relation to the requirements and negate
them as much as possible.
Proposal Writing Library
Proposal material can be used over and over again, saving time, but you must
methodically tailor it to the particular proposal you are writing. Don’t be in a last
minute hurry and get caught in the trap of using standard material without tailoring it.
The evaluators will through this.
Your library should include:
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•
•
•
•
•
•
•
•
Proposal writing books and training materials.
Corporate qualifications.
Staff resumes. (Remember again: the standard resumes need to be tailored
too.)
Past performance material and statistics.
Success stories.
References. (Cleared of course.)
Model proposal material including project management approaches, technical
descriptions, and chapter introductions.
Competitors’ proposals obtained from public information requests.
Automate the library as much as possible so the writers can move the material
electronically.
Consider buying proposal-writing software (but know of course that it’s no substitute
for the hard work that has to be done).
Developing Templates and Writing Examples
Large proposals require many writers. These writers will inevitably produce material
with different styles, levels of clarity, and consistency. By sending templates and
writing samples to the writers, you help even things out, put everyone on the same
page so to speak.
The following is an example of a writing template:
Section Title
(Write a summary of the section here.)
Subsection Title
(Write a simple declarative sentence stating the theme of the subtopic.)
Understanding
(Write a background paragraph(s) describing your understanding of the
customer’s requirements, problems, etc. Be insightful.)
Solution
(Write a paragraph(s) describing your solution to the customer’s requirements,
problems, etc. Be creative.)
Features
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(Describe the features/elements/aspects/characteristics of your solution.
Be clear and concise.)
Benefits
(Describe the specific benefits of your proposed solution to the customer.
This is the critical section. Be thorough and provide as much evidence as you
can that the benefits will accrue to the customer.)
Conclusion/Summary
(Summarize the subtopic themes again except in a paragraph.)
Writing Guidelines
The following writing guidelines (and others you have developed) should be given to
the proposal writing team.
•
Writing style is important. Write from a logical outline and use topic and
subtopic headings.
•
Structure the first paragraph in a topic and subtopic so that it presents the
primary point first. Summarize every chapter and topic with a brief
paragraph.
•
Use trigger words, known facts, statistics and specific reasons to convince the
reader of the primary point, e.g., a unique feature, capability, or benefit.
•
Illustrate as much as possible.
•
Use appendices for detailed material.
•
Do not use big words in an attempt to impress your customer. Avoid
unnecessary words.
•
Avoid subjective adjectives that sound boastful. Be specific. Use such
phrases as "10-year track record," rather than "marvelous track record."
•
Avoid long sentences, long winded discussions in general, and keep your
paragraphs concise and short.
Help your solution writers write in as clear and concise a style as they are capable of.
Clear, concise writing has the following characteristics:
72
•
Logically and consistently organized. E.g., if one writer is presenting
understanding of the requirements, solutions, solution features, solution
benefits, and benefit substantiation, in that order, then have all writers present
their material in the same order. Give the section writers templates and an
example of a well-written section to follow.
•
Easy to read and understand. Again, topic sentences, short paragraphs, and no
extra words. Use simple declarative sentences. Think Hemingway, not
Faulkner.
In summary, you should develop a technical proposal that is clear and concise in
describing exactly how you will meet the requirements stated in the RFP. Make it as
easy as possible on the evaluators who have a big pile of proposals to read.
The Review Process
You need to conduct reviews because they are critical to the quality of the proposal.
You should have at least two reviews, one at the second draft (called a Red Team
review) and one at the final draft stage. Above all, don’t just review the draft in the
final hours before the proposal goes out the door because it’s usually too late by then.
The review team should evaluate the proposal from the customer’s perspective. Be
brutal and act like an evaluator. Compare everything in the proposal to the
requirements in the RFP. Have the solutions and benefits come out? Is the writing
clear concise, easy to read and understand? Point out where it isn’t. Fixing such
problems could be the difference between winning and losing.
You can be more informal for small proposals but the fundamentals are the same.
Don’t shorten the review process due to a lack of time. If you are short of time and
the proposal shows it, consider canning the proposal.
In reviewing and preparing to reach the final draft stage, the proposal leader writing
team should ask the following questions:
•
Did our understanding of the customer’s needs and our proposed solutions and
benefits come out clearly?
•
Are the writers on track and writing consistently among their respective
sections?
•
Does the proposal read like a unified whole?
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•
Have they hit on new themes and pertinent solutions?
After this review, the team prepares a second draft of the proposal. This draft is
subject to the most important review of all, the Red Team Review. This activity is so
important, it requires a full article all its own. Look for it in the next issue of
Proposal Writing Tips & Techniques.
Things to Avoid
The State of California published the following list of proposal statements that caused
the proposals to be rejected. Do your best to avoid such statements.
1. A bid stated, "The prices stated within are for your information only and are
subject to change."
2. A bid stated, "This proposal shall expire thirty (30) days from this date unless
extended in writing by the xyz Company." (In this instance, award was scheduled to
be approximately 45 days after bid submittal date.)
3. A bid for lease of EDP equipment contained lease plans of a duration shorter than
that which had been requested.
4. A personal services contract stated, "xyz, in its judgment, believes that the
schedules set by the State are extremely optimistic and probably unobtainable.
Nevertheless, xyz will exercise its best efforts..."
5. A bid stated, "This proposal is not intended to be of a contractual nature."
6. A bid contained the notation "prices are subject to change without notice."
7. A bid was received for the purchase of EDP equipment with unacceptable
modifications to the Purchase Contract.
8. A bid for lease of EDP equipment contained lease plans of a duration longer than
that which had been requested in the IFB with not provision for earlier termination of
the contract.
9. A bid for lease of EDP equipment stated, "...this proposal is preliminary only and
the order, when issued, shall constitute the only legally binding commitment of the
parties."
10. A bid was delivered to the wrong office.
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11. A bid was delivered after the date and time specified in the IFB.
12. An IFB required the delivery of a performance bond covering 25 percent of the
proposed contract amount. The bid offered a performance bond to cover "x" dollars
which was less than the required 25 percent of the proposed contract amount.
13. A bid did not meet contract goal for MWDVBE participation and did not follow
the steps required by the bid to achieve a "good faith effort."
Resources
Need more help? Fedmarket.com is associated with some fantastic proposal writing
experts and resources. Here’s a rundown:
•
Michael Asner -- With 25 years of consulting writing experience, Michael
Asner Consulting offers a wide variety of services to help you refine your
proposal writing process and win more often. Michael's video workshop,
"Creating Winning Proposals," can make the difference between winning and
losing. More about it here: http://www.proposalworks.com/store_videos.html.
•
Dan Safford -- Dan Safford has nearly 20 years experience managing
proposals. He works with clients to plan, write and manage proposal
development efforts, and also conducts proposal training and speaks widely
on proposal related issues. Dan has worked for Boeing Defense & Space
Group as a Proposal Specialist, where he’s managed dozens of proposals, with
a win rate of over 75%. He is the author of a leading proposal-writing book,
Proposals: On target, On time, with another one on its way.
•
Both Michael and Dan offer consulting services:
http://www.proposalworks.com/store_consulting.html.
•
ProposalWorks.com -- Fedmarket.com has partnered with proposal experts
Dan Safford and Michael Asner to bring you ProposalWorks.com, a one-stop
resource center for proposal writers and evaluators. The site includes a fully
searchable library of best practices, evaluator guidelines and actual winning
proposals. The Proposal Library is here:
http://www.proposalworks.com/library_best.html.
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Chapter 19
Oral Presentations
By Richard White
When government agency personnel notify you that they would like your company to
make an oral presentation, it’s a very good thing. It either means that you submitted a
proposal in response to a request for proposal (negotiated procurement) and you are a
finalist for the procurement, or you’re being asked for an oral proposal (no written
proposal) under Federal Acquisition Regulation (FAR) 15.102.
Some state and local governments also call for oral proposals but under much stricter
circumstances than the federal government (refer to the procurement regulations of
the target agency).
The Ground Rules
FAR 15.102 states that oral presentations may substitute for, or augment, written
information. Taken to the extreme, this means that the government may not require a
technical proposal and base their entire selection on an oral proposal supplemented by
certifications, representations, and a signed offer sheet (including any exceptions
to the government's terms and conditions).
Although important, an oral presentation to supplement a written proposal is not as
critical as a completely oral response to an RFP because most of the evaluation will
already have taken place based on the written technical proposal.
An oral proposal in lieu of a written technical proposal is still in the minority at the
federal level, but it is happening more frequently in certain situations to speed up the
procurement process (e.g., to compete task orders under multi-vendor IDIQ
contracts). The percentage of responses to RFPs that are oral likely will increase in
the future.
Think of an oral proposal in the same way you would a written proposal. The
contracting officer must establish the ground rules for the presentation in writing,
record the presentation, and score the orally-presented information according to the
criteria stated in the solicitation document.
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On this point, FAR 15.102(d) states: "When oral presentations are required, the
solicitation shall provide offerors with sufficient information to prepare them.
Accordingly, the solicitation may describe-(1) The types of information to be presented orally and the associated evaluation
factors that will be used;
(2) The qualifications for personnel that will be required to provide the oral
presentation(s);
(3) The requirements for, and any limitations and/or prohibitions on, the use of
written material or other media to supplement the oral presentations;
(4) The location, date, and time for the oral presentations;
(5) The restrictions governing the time permitted for each oral presentation; and
(6) The scope and content of exchanges that may occur between the Government's
participants and the offeror's representatives as part of the oral presentations,
including whether or not discussions (see 15.306(d)) will be permitted during oral
presentations."
Beyond the Written Rules
That’s what it says in the rules. But what about other important factors and issues,
such as the following?
· They don’t like the way your presenter cuts his hair.
· Your project manager is the best in the world on the job, day to day, but stumbles in
a public speaking role. The competitor’s presenter is a convincing, dynamic speaker
but not a great project manager.
· Your competitor’s presenter is gifted at simplifying a complex solution and bringing
forth the benefits of the solution even though in reality your solution is superior.
· Your competitor does a near movie quality production of his presentation
(presuming this is allowed under the written solicitation), while you do a run-of-themill poster board presentation.
You get the point; oral presentations are a different ball game than written proposals.
In an oral presentation your strengths can be amplified and weaknesses strengthened.
Alternatively, strengths can be watered down and weaknesses amplified. The written
word is safer. You do not have to think in real time, and you can leave less to chance.
You have time to think, strategize, write, evaluate, rethink, and rewrite.
In short, the oral evaluation process is full of subjectivity, even more so than the
written evaluation process.
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You’re Asked to Present: Now What?
Once you receive notification of an oral presentation you immediately smell the
money and the corporate blood pressure rises, particularly for the person who is
selected to give the presentation. This happens to everybody to varying degrees, and
the pressure increases with the size of the contract at stake.
Now what do you do? Who gives the presentation and what does this person say?
What should the context and content of the presentation be?
Selecting the Presenter
Usually the government will tell you whom they want as the primary presenter:
usually it’s the key person on the contract, most often the proposed project manager.
If you have the latitude, consider public speaking skills in selecting whom you
propose as the key person.
Presentation Length, Content, and Media
Develop a simple, executive summary-like presentation outlining your understanding
of the customer’s needs, your solution, its benefits, and key features. The length and
level of detail will of course vary depending on the amount of time allotted by the
government and the size of the project. When in doubt about content, you should
stress the creative aspects of your solution and its quantifiable benefits.
Use presentation media appropriate for the audience and length of time allotted for
the presentation. High tech presentations can work well in certain situations and
venues but don’t overdo it and try to dazzle them with technology if it isn’t
appropriate. Frequently the government will dictate the media. When in doubt ask
the contracting officer what would be appropriate.
Theme of Presentation
Most outstanding presentations rely on a single theme woven throughout the
presentation. Although the theme of your presentation will vary depending on the
customer’s requirements, consider designing your presentation around the theme of
trust and customer service.
Government is becoming more like the commercial sector in realizing that people
implement solutions and that people are the key to selecting the winning company.
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The government is now asking more than ever: "Are these the people we want to
work with, and can we trust them to solve our problem?"
Weave the trust theme throughout the presentation by presenting everything from a
customer’s perspective. Relate trust to customer service. Present your understanding
of the customer’s needs, your solution, and the benefits of the solution from their
prospective.
Customers naturally trust people who work with them closely and understand their
problems. Make the potential customer feel that your staff will be insiders, not
outsiders.
Organizing the Presentation
Follow the government’s format if it’s provided.
Establish a single main theme and stick with it throughout the presentation.
Present the benefits of your solution clearly and succinctly.
Strive to have the presenter convince the audience that he/she understands the
problem, knows the solution, knows the benefits, and is the person who can be their
savior.
When in doubt, simplify.
Keep your graphics simple with as few words as possible. Make them large and easy
to read for the members of the audience furthest from the presenter.
Stick with the highlights of everything in the presentation and avoid boring details.
(Save those for question and answer time.)
Stress the customer’s hot buttons as determined by your sales staff.
Giving the Presentation
Dress and act like the customer as much as possible without looking like an act. This
is not that hard; look clean and crisp and avoid extremes.
Take the highest-level corporate person in the company appropriate for the size of the
opportunity and have this person make the introduction and begin the process of
establishing trust. When in doubt, go with a higher-level person.
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The corporate representative should state what the company will do to support the
project manager, but make it real and believable. Too much corporate fluff will
annoy more than impress.
The company person should sit near the primary presenter and support the presenter
in every way possible. Help with questions if this is allowed, try to determine what
the hot buttons are and direct the discussions in that direction if possible, stress
corporate support whenever possible.
You may be forced to select a presenter who is not a confident public speaker. Let
the presenter have a say in the media used for the presentation. A certain type of
media may help make the presenter more comfortable.
Consider using a coach who is skilled in public speaking to assist the presenter during
rehearsals.
Rehearse over and over and fine-tune the presentation well beyond the point where
you think you are ready. Try to anticipate questions during rehearsals and fire them
at the presenter endlessly, especially if the presenter is relatively inexperienced in the
process. Replicate as best you can the tension and stress that’s about to come. This
type of preparation can make an important day an enjoyable and (hopefully)
successful one.
Finally, if your presenter has a funny-looking haircut, you know what to do: take him
to the best barber you know.
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Chapter 20
Debriefings and Protests
By Richard White
In this chapter we discuss the rules regarding debriefings and protests using the
federal acquisition regulations as a model. State and local debriefing and protest
regulations are similar although in many cases less formal than the federal
regulations.
Debriefing and Protest Regulations
Debriefing and protest regulations are presented in Federal Acquisition Regulation
(FAR) 15.5 Preaward, Award, and Postaward Notifications, Protests, and Mistakes.
The basic rules as outlined in the FAR are as follows:
Offerors are notified promptly (promptly is not defined in FAR) when their proposals
are no longer being considered. The notice is in writing and is supposed to state the
basis for the determination and that a proposal revision will not be considered.
Rejected offerors may request a debriefing. The request for a debriefing must be
made within 3 days of receipt of the notice. Offerors may request that the debriefing
be held after award in order to obtain more information concerning the evaluation.
Preaward debriefings do not disclose:
•
•
•
•
•
The number of offerors.
The identity of other offerors.
The content of other offerors' proposals.
The ranking of other offerors.
The evaluation of other offerors.
Within 3 days after a contract award, all offerors are notified of the award and they
may request a debriefing after award no later than 3 days after receiving the notice.
Award notices will include:
•
•
•
The number of offerors solicited.
The number of proposals received.
The name and address of each offeror receiving an award.
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•
•
The items, quantities, and any stated unit prices of each award.
The reason(s) the offeror's proposal was not accepted.
Protests against an award can be made pre or post award. See Federal
Acquisition Regulation, Part 33, Protests, Disputes, and Appeals.
Taking Part in a Formal or Informal Debriefing
Although you might feel a bit angry, suck it up, tough it out and take part in the
debriefing in a professional and courteous manner. Nothing will be gained from a
controversial stance, except the possibility of not doing business with the agency
again. Let the CO do the talking first and then ask any questions that may result from
his/her presentation.
In a preaward debriefing you are entitled to the following information, at a minimum.
•
The agency's evaluation of significant elements in the offeror's proposal.
•
A summary of the rationale for eliminating the offeror from the competition.
•
Reasonable responses to relevant questions about whether source selection
procedures contained in the solicitation, applicable regulations, and other
applicable authorities were followed in the process of eliminating the offeror
from the competition.
The following information is not disclosed in a preaward debriefing.
•
•
•
•
•
The number of offerors.
The identity of other offerors.
The content of other offerors' proposals.
The ranking of other offerors.
The evaluation of other offerors.
In a postaward debriefing you are entitled to the following information, at a
minimum.
The Government's evaluation of the significant weaknesses or deficiencies in the
offeror's proposal.
The overall evaluated cost or price (including unit prices) and technical rating of the
successful offeror and the debriefed offeror, and past performance information on the
debriefed offeror. (Notice it says rating, not ratings.)
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The overall ranking of all offerors, when any ranking was developed by the agency
during the source selection.
A summary of the rationale for award.
•
For acquisitions of commercial items, the make and model of the item to be
delivered by the successful offeror.
•
Reasonable responses to relevant questions about whether source selection
procedures contained in the solicitation, applicable regulations, and other
applicable authorities were followed.
•
Post award debriefing shall not include point-by-point comparisons of the
debriefed offeror's proposal with those of other offerors.
Some questions you should ask:
•
The total score received by the winner if it was not provided.
•
The names, titles and responsibilities of the individuals who made the final
award decision.
•
The specifics of the evaluations of your company for each technical
evaluation factor in the solicitation. This should include the strengths and
weaknesses for each factor for your company and the rational for the scores
given. Seeing scores by evaluator is the best way to determine what really
happened in the evaluation.
•
The specifics of the cost and price evaluation of the winner and your
company. Ask if the government adjusted the cost and price of the winner or
your company for any reason.
•
Giving information beyond the minimum is at the discretion of the CO, but, if
you don't ask, the CO will almost certainly not provide the information
beyond the minimum.
Debriefings and Protests from a Management and Sales Prospective
Always request a postaward debriefing unless you are considering protesting before
award. The primary value of a debriefing is to learn from mistakes, get better, etc.,
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and a postaward debriefing will often provide you with critical information in that
regard.
Communicate by telephone with the CO concerning debriefing and protests; it's the
CO's job to communicate openly with you about these two issues. Often, formal
debriefings and protests can be avoided through telephone communications at
considerable savings to you and the government. Also, this type of communication
can help establish a trust relationship between you and the CO, particularly if you are
reasonable and willing to save the CO time by avoiding a formal debriefing.
Have a formal debriefing unless the reasons for losing are apparent -- e.g., your price
was clearly out of line, or the contracting officer has told you enough over the
telephone to rule out a formal debriefing.
In some cases, the REAL reasons for your losing will come out in a debriefing. It's
important to learn why you lost and then use that information to improve your
competitiveness or to make a no bid decision in the future.
Do not protest except in special circumstances -- e.g., the violation of procurement
regulations was so blatant that you and your lawyer agree that you have a substantial
probability of winning. This rule applies particularly to small businesses with limited
legal budgets. Protests are very expensive, often counterproductive, always
emotionally draining. And worse: about 90 % lose. Do your best to look forward,
not backward.
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Chapter 21
Multiple Award Schedule (MAS) Contracts
By Richard White
Overview of the Process
The General Service Administration's Federal Supply Service (FSS) operates the
federal supply schedule program. The program leverages the purchasing power of the
U.S. government to garner volume discounts for commercial supplies and services.
Under the program, FSS awards indefinite-delivery contracts and publishes catalogs
reflecting these contracts. These published catalogs are commonly referred to as
"federal supply schedules" or simply "schedules." Using these, government buyers
are allowed to place orders directly with vendors holding schedule contracts, and, in
doing so, avoid traditional public bidding procedures.
Most Federal Supply Schedules are Multiple Award Schedules (MAS). Under MAS
contracts, GSA awards contracts to multiple companies supplying comparable
services and products at varying prices. The FSS operates over 100 different
schedules covering most product and service categories.
GSA awards MAS contracts to companies for commercial items when it determines
that the prices offered are "fair and reasonable." Contracting officers make this
determination by comparing the price or discounts that a company offers the
government with the price or discounts that the company offers to its own
commercial customers. To make this comparison, MAS solicitations request offerors
to disclose information about their commercial pricing policies and practices.
Contract prices are tied to commercial practice so that, in theory at least, GSA pricing
remains competitive over time.
Government buyers select from MAS contract vendors using the ordering procedures
at FAR 8.404. For orders under $2,500, buyers may order from any schedule vendor.
For orders over $2,500, buyers may search for items using, GSA Advantage, or by
checking three pricelists. Buyers select a vendor by making a best value
determination (price and other factors considered) and placing an order. There is no
advertising or competitive bidding, making life easier for both buyer and seller.
The following (which comes straight out of the FSS Contractor Guide) is an outline
of the process to get a MAS contract:
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•
•
•
•
•
•
•
•
•
•
•
•
•
Acquisition Plan/Market Research is conducted.
FedBizOpps notice is issued -- for all solicitations.
Solicitation is issued covering various Special Items Numbers.
Offers are received and evaluated.
Contracting officer provides vendors opportunities to submit additional
information when deficiencies in offer exist.
Contracting officer identifies best customer and prepares for negotiations.
Negotiations are conducted.
Proposal revisions are submitted.
Contracts awarded for multi-year period or offer is rejected.
Contractors are required to prepare and distribute an "Authorized Federal Supply
Schedule Pricelist."
The contractor is given a mailing list of federal ordering activities to contact.
GSA/FSS prints a Federal Supply Schedule document that is distributed through
the Centralized Mailing List Service (CMLS).
As part of the contract award requirements, contractors are required to submit
their pricing information electronically on GSA Advantage. Contracting officer
approves electronic submission.
Federal Supply Schedule Program for Medical Products and Services
The Veterans' Administration (VA) has been delegated the authority to administer the
Federal Supply Schedule Program for medical products and services. These schedules
encompass such products as pharmaceuticals; medical equipment and supplies; dental
supplies; x-ray equipment and supplies (including medical and dental x-ray film);
patient mobility devices (including wheelchairs, scooters, walkers, etc.); antiseptic
skin cleansers, detergents and soaps; invitro diagnostics, reagents, test kits and sets;
and clinical analyzers, laboratory cost-per-test.
There are a total of over 1,200 contracts in place for the various commodity groups.
Annual sales against these contracts exceed $2 billion. Like all federal supply
schedule contracts, VA contracts are multiple award, indefinite delivery-indefinite
quantity type, and are national in scope. These contracts are available for use by all
federal agencies.
To find VA schedule solicitation documents go to http://www.va.gov/oa&
mm/busopp/sols.htm. The schedule documents are shown first in the table with the
issuing office designation "VA National Acquisition Center." Then click on the RFP
number in the left column.
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Getting Your Products/Services on a GSA Schedule
Factors to consider
Putting products/services on a GSA schedule is an arduous and troublesome
undertaking for the uninitiated. Expert companies will lead you through the process
for $12,000 to $28,000 depending on the type of schedule and product set. Small
businesses with a limited number of products/services can expect costs on the lower
end of this range. You should have substantial projected sales to justify the
investment required (in-house or outsourced) to get and maintain a schedule contract.
We can assist you in finding a firm to help you get on the GSA Schedule. Call me
(Richard White) at 888-661-4094 x18.
On the other hand, what used to be "bid and proposal" costs can now be thought of as
"obtaining GSA schedule" costs. As a result, your costs in the future will drop
compared to preparing individual bids or proposals.
Schedules are not cost effective, though, unless you are serious about government
business. Putting it another way: getting and maintaining a schedule contract will be a
waste of money unless you have a dedicated, focused government sales program.
Complicated paperwork is the primary barrier to a small business obtaining a
schedule. The paperwork is daunting and most of the terms and conditions appear
onerous. Some terms and conditions are not legally and financially important while
others are. The trick is to know which ones are important (e.g., pricing terms) and
how to comply with them. Even finding the GSA solicitation document on the
Internet for your product/service can be confusing and frustrating.
We know of small businesses that have obtained schedules, but they are usually
experienced in selling to the government before they obtain a schedule, and they were
tenacious enough to get through the mysterious and confusing GSA paperwork with
in-house staff.
Through this email series we have stressed the need for a focused commitment before
you enter the government market. A small company obtaining a GSA schedule on its
own is a prime -- and rare -- example of such a commitment.
Here are a few more factors to consider:
•
Schedules are a government-preferred source of supply for commercial products
and selected services. See FAR 8.001.
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•
A schedule contract favors feature-rich, higher quality more expensive contractors
because prices are based on your commercial prices and buys are based on "best
value," not lowest price.
•
Schedule contract buys do not have to be advertised in the FedBizOpps (the
official web site for advertising procurements over $25,000) or subject to "full
and open" competitive procedures.
•
Buyers like using schedules because the purchase process is lightening fast,
simple and rarely subject to protest.
•
Schedule contract buys no longer have an order size limitation. Multi-million
dollar orders can be processed using the schedule contract ordering procedures.
•
Schedule contracts provide the basis for blanket purchase agreements for multiyear, preferred agreements between contractor and ordering agency.
•
Teaming arrangements allow two or more schedule contractors to propose and
deliver multi-vendor solutions while using the GSA MAS ordering procedures.
•
Credit cards and EFT may be used to simplify purchases and speed funds transfer.
The steps
How do you get your products or services on a schedule? The first step in the process
is to identify which schedules cover your products or services. A list can be found at
http://www.gsaelibrary.gsa.gov/elib/Schedules.jsp;jsessionid=www.gsaelibrary.gsa.g
ov-c8f%3 A3ca4fcb1%3A72319d371b4ff55f.
The next step is to obtain a copy of Federal Supply Schedule solicitation for the
products and services you want to offer. The Federal Supply Service has regional
offices and each region specializes in serving certain industries. For instance,
industrial and electrical equipment is handled by the Fort Worth, TX office, while
computers and scientific equipment is handled by an office in the Washington, DC
area.
Finding current GSA Schedule Solicitation Documents is a multi-step procedure. The
procedures are as follows:
Go to the following page for the current listing of all the schedule contacts and a brief
summary of the products/services solicited by each: http://www.gsaelib
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rary.gsa.gov/elib/Schedules.jsp;jsessionid=www.gsaelibrary.gsa.gov-826%3
A3ca8c023%3Aefdf6585ec997b3d.
Clicking on a particular schedule shows you a list of SINs within that schedule. SINs
are product categories that related to the Federal Supply Classification System. The
trend within the Federal Supply Service is to aggregate more and more SINs under
fewer schedule programs. This consolidation is happening all the time, so make sure
you are looking at the most recent solicitation documents (including all the
amendments).
To find the current solicitation (and related documents) for a particular schedule:
•
Go to
http://www.gsaelibrary.gsa.gov/elib/Schedules.jsp;jsessionid=www.gsaelibrary.gs
a.gov-826%3 A3ca8c023%3Aefdf6585ec997b3d.
•
Click on the schedule which best describes the items you sell.
•
Click on "FedBizOpps Vendors" at http://www.fedbizopps.gov/.
•
Click on "Find Business Opportunities".
•
Type name of schedule program in "Full Text Search" Box. (TIP: cut and paste
the first few words describing the schedule into the full text search box.)
•
In Search by Office, click on "General Services Administration".
•
Click on Show Offices for Selected Agencies.
•
Click on Federal Supply Service.
•
Start search.
The negotiation process
Developing a proposal and negotiating a schedule contract is a complex process, far
too detailed to discuss here. In broad terms, however, these are the steps you'll have
to take:
Gather company information on your company's financial condition, product/service
prices, sales and discounting practices, and "most favored customers." (Note:
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contracting officers possess the authority to examine your company's records to check
up on your pricing information.)
Demonstrate how your proposed GSA prices are fair and reasonable in relation to
your most favored customers. (Because the fundamental goal of the MAS program is
to obtain discount pricing, the contracting officer must analyze the differences
between the terms and prices offered to the government and your company's
commercial customers.)
Define your commercial terms and conditions clearly to justify exceptions to GSA's
terms and conditions. After the price analysis, the contracting officer will negotiate
with your company, focusing on prices, discounts, warranties and any terms unique to
your offer. The contracting officer can award a contract when he is convinced that the
negotiated prices are fair and reasonable AND comes to an agreement with you on the
basis of negotiation and award of the contract. The basis of the relationship between
similarly-situated commercial customers and the government is one that must be
maintained to assure the government that it is receiving competitive prices throughout
the term of the agreement.
Pricing is the core of a GSA schedule contract -- both in negotiating prices and
maintaining them consistent with your ongoing discounting practices. Doing it right
can make a significant difference on the bottom line. Download the following .pdf
document to read 10 questions you should ask about GSA pricing:
http://www.immixgroup.com/docs/audit_questions.pdf.
Post Award
Now here's something that might surprise you after all that work: getting a GSA
schedule contract guarantees you nothing. You still have to find those individuals in
government who need what you have, establish personal relationships with them, and
sell them on your solution. Once again, you must make telephone and personal sales
calls, using your GSA schedule as an extra inducement in making the sale.
Remember, a number of the big volume schedules are held by several thousand
companies that will be competing against you. Your schedule is a valuable tool for
closing the sale, but it is no substitute for making the sale itself.
The following are the primary steps in the sales process:
•
Identify your schedule competitors and the differences, features, etc., of their
competing products/services.
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•
Identify target agencies and make sales calls. Develop relationships and determine
what the customer needs and wants. Convince them that you have the solution to
their problem. As you are doing this, you have the opportunity to show them how
to use your GSA schedule to obtain your product/service quickly with a minimum
of hassle. Assure them that you have an "already negotiated" contract with GSA
and GSA has determined that your prices are fair and reasonable.
•
Emphasize price if your company's products are priced low.
•
If your prices are higher, then you need to give the buyer sufficient information to
make a best value determination. Some examples:
o
o
o
o
o
o
Fast delivery
Specific features, warranties
Quality considerations
Compatibility with existing products/services
Trade-in considerations
In short, you need to determine the agency's precise needs and tailor your
sales presentation to meet those needs. Low price is the easiest sell if you
meet the agency's needs, but you can still win with quality and unique
features.
Final Thoughts
If your company is an IT vendor, chances are you're already quite familiar with the
importance of GSA's information technology schedule. Here are a couple of factors
indicative of its rapid growth:
Approximately $13 to $14 billion in products will be procured through IT schedules
this year. This is about one half of the overall federal IT market.
Dell, the number one IT schedule holder, has about $1 billion in annual schedule
sales.
But the action is not just in information technology. GSA schedule buying is
increasingly becoming the preferred practice in government sales. GSA's recent
initiatives and future plans indicate that there is much more growth ahead:
GSA has implemented the "Corporate Schedule," in effect a "Schedule of Schedules"
for those companies that offer products in many categories.
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GSA schedules are now "Evergreen" contracts, with a 5-year base and three 5-year
option periods. (And why not? If the contractor keeps its pricing up-to-date at all
times through the contract modification process, why should the contract ever end?)
Multiple award schedule contracts have found their way to the state level as well. The
following major states have multiple award schedule programs that are modeled in
varying degrees after GSA schedules: California, Ohio, New York, Pennsylvania,
Texas, Kentucky and Florida.
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Chapter 22
Teaming
By Richard White
Government contracts are getting bigger. Requirements that were once performed
under, say, six to ten contracts might now be performed under only one. Not
surprisingly, teaming is becoming more prevalent, especially among companies
offering services to government.
For many companies--often too small to win or perform these large contracts alone-teaming has become an integral part of their sales strategy. A successful
prime/subcontractor relationship can be as lucrative as a successful
contractor/government relationship, and it can be a great way to break into the market
in a big way.
The Government's View of Teaming
As with previous chapters, the Federal Acquisition Regulations (FAR) concerning
teaming will be used as the model for federal, state, and local teaming arrangements.
FAR Subpart 9.6- Contractor Team Arrangements defines the term "Team
Arrangement" (i.e., teaming) to mean:
(1) Two or more companies form a partnership or joint venture to act
as a potential prime contractor; or
(2) A potential prime contractor agrees with one or more other
companies to have them act as its subcontractors under a specified
Government contract or acquisition program.
Subpart 9.6 goes on to say:
Contractor team arrangements may be desirable from both a
Government and industry standpoint in order to enable the companies
involved to-o Complement each other's unique capabilities; and
o Offer the Government the best combination of performance,
cost, and delivery for the system or product being acquired.
o Companies normally form team arrangements before
submitting an offer. They may enter into an arrangement later
in the acquisition process, however, including after contract
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award. The government will recognize the integrity and
validity of contractor team arrangements, provided the
arrangements are identified and company relationships are
fully disclosed in an offer, or, for arrangements entered into
after submission of an offer, before the arrangement becomes
effective.
The essence of what the FAR says on teaming is that the government encourages
teaming when it is in its best interest.
Teaming From a Legal Perspective
A joint venture (legal partnership) can be formed to establish a team, but these
arrangements can often be expensive to implement and have higher liability risks.
The most common form of a teaming arrangement is a prime contractor/
subcontractor relationship. The prime/sub approach works well in practice, but
remember the prime is in control and the sub must realize this in structuring the
teaming agreement.
Usually prime contractors select subcontractors and make them a part of their
proposals. A subcontractor can often be a key selling point in a prime contractor’s
proposal, and this should be used in negotiating the teaming agreement.
•
•
•
•
•
•
•
•
Your teaming agreement should cover the following points:
Is the subcontractor exclusively with the prime or can the subcontractor be a part
of other competitor’s proposals?
Is the subcontractor guaranteed a specific amount of business?
What happens if the prime and sub have performance issues?
Will the subcontractor participate in negotiations with the government?
How will the subcontractor be paid?
What defines project completion and what part does the subcontractor play in
contract extensions?
What are the subcontractor’s intellectual property rights?
Teaming From a Sales Perspective
When in doubt, team if you are small or new to government contracting. In most
instances putting a team together requires government-contracting experience. So if
you are new to the game, try to become a team member.
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Subcontracting is an excellent way to gain the experience you need to become an
experienced government contractor. It also can significantly reduce the lead-time and
investment required to enter the market. For many companies, it is the only practical
way to enter the market.
In some situations it is possible for a small company to become the lead company in
forming a team.
Suppose your company has identified a large opportunity that requires your
capabilities and much more. Also, suppose that you have a relationship with an enduser that would like to work with you in solving the agency’s problem. In such
situations, it may make sense for you to put the team together and be the prime
contractor.
Large contractors usually prefer to prime, so your success in bringing them into the
fold will depend on your convincing them of the importance of your relationship with
the end-user, and (perhaps to a lesser extent) that your capabilities are a critical
component of successful contract performance.
Whether you are the prime or the sub also depends on the size of the opportunity and
the uniqueness of your capabilities. In short, it’s a power game and how you play it
depends on the cards you hold, e.g., government relationships, knowledge of the
requirements of the customer, uniqueness of your capabilities, etc.
Often the biggest company ends up the prime. Keep in mind, though, that there is
nothing wrong with being a sub as long as your teaming agreement with the prime is
airtight and you can continue to nurture your relationship with the end-user.
In Chapter 8, Finding Subcontracting Opportunities, we presented information on
how to find and sell to prime contractors. The following recaps the information in
that chapter.
•
For complex technology-based projects, agencies usually use a dominant
contractor. Sell your capabilities to the dominant contractor if your target agency
has one.
•
Contact prime contractors early and sell them personally.
•
When seeking subcontracts, sell to the prime contractor’s "Subcontracting
Coordinator" rather than the government buyer. You will be selling to a person
who wants quality subcontractors (quality not quantity).
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•
Track contract awards to find the right prime contractors, not for the recent win as
much as for future wins.
•
Leverage your small, women-owned and minority status as selling points for
subcontracting.
Sources for Teaming Contacts
Here are some places to check out for possible teaming partners:
•
•
•
•
•
•
•
•
•
DOD Subcontracting Directory, (Prime Contractor Directory with contact
information), http://www.acq.osd.mil/sadbu/publications/subdir/.
DOD Comprehensive Subcontracting Plan Test Program (Links to about 20 prime
contractor subcontracting program web sites),
http://www.acq.osd.mil/sadbu/csp/index.html.
Department of the Treasury, Small Business Subcontracting Opportunities (Prime
Contractor Directory with contact information),
Small Business Administration, Subcontracting Opportunities Directory (Prime
Contractor Directory with contact information),
Small Business Administration Sub-Net (Subcontracting Opportunity Postings),
http://web.sba.gov/subnet/.
FedBizOpps Awards, http://www.fedbizopps.gov/.
FedBiz Now Awards, http://fedbiz.bidengine.com/.
GovExec Magazine Top Federal Contractors (Top 200 and by industry and
agency), http://www.govexec.com/top200/2000top/index.htm.
Dun & Bradstreet, http://dunandbradstreet.com/.
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Chapter 23
Acquisition Planning
By Eric Aaserud
Vice President, Fedmarket.com
Throughout this eBook, we've tried to provide some insights that go beyond "find
bids/try to win." And in doing so we've focused on themes such as:
•
•
•
•
Think beyond bid notices; find opportunities early.
Engage in direct personal sales (there's no substitute for it).
Focus on specific agencies (and the buyers and end-users therein) that need what
you sell.
Understand the unique needs of end-users to earn trust, win contracts and perform
well.
Perhaps in no chapter do these critical themes come together more neatly than in this
one.
Acquisition Plan: Definition
What is an acquisition plan? It's a document that shows what products and services
are required, and how they are acquired, during the life of a given project. More
specifically, an acquisition plan:
•
•
•
•
•
Provides agency management with information for making procurement decisions
and ensuring the availability of funding;
Provides technical evaluation personnel with adequate information for analyzing
and evaluating vendor proposals;
Helps ensure that vendors have adequate information for preparing bids; and
Provides the source selection official with adequate information on which to base
a selection.
There’s nothing magic or unique about government acquisition plans. They can be
found in the private sector, too. But here’s the important difference: don’t expect
your commercial customer to comply if you ask him to see the acquisition plan
he’s been working on.
Knowing in Advance
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As with procurement forecasts and request for information announcements, tracking
acquisition planning information is a critical way to "get into the heads" of
government agency personnel involved in making purchasing decisions.
Within this context, when you try to speak with someone at an agency, you're looking
for the acquisition planner. Under the Federal Acquisition Regulation (FAR), the
"planner" is the "designated person or office responsible for developing and
maintaining a written plan, or for the planning function in those acquisitions not
requiring a written plan." Planners are often program managers or the people who
work for them.
If you’re on top of an agency’s acquisition planning, you’re seeing into the future. If
you know a planner and follow an acquisition plan from its initial stages, you are
automatically following an opportunity early. The FAR states that "[a]cquisition
planning should begin as soon as the agency need is identified, preferably well in
advance of the fiscal year in which contract award is necessary."
The FAR outlines the information that is supposed to comprise the acquisition plan.
FAR 7.105. Part of a planner’s "Plan of Action" is to list the prospective sources of
supplies or services that can meet the agency's particular need. Other information
includes how competition will be sought, budget estimates, product and service
descriptions, environmental and energy conservation objectives, security
considerations, whether subcontract competition is both feasible and desirable and the
types of source-selection procedures for the acquisition. FAR 7.105(b).
So if you have an acquisition plan in hand, you can find out in advance specifically
what types of products and services the agency will be looking for, including unique
features. You can potentially uncover agency "hot buttons" well in advance of writing
a proposal.
Finding Plans and Planners
Okay, so where do you get your hands on acquisition plans and talk to the people
behind them? One way, of course, is to call procurement personnel within the target
agency and just ask. You can always start there.
Another way: Internet research. To give you some idea on the volume of acquisition
planning information on the Web, go to Google.com and type the following into the
search screen and click search:
"acquisition plan" site:.gov
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(You'll be searching federal civilian agency web pages that contain the term
"acquisition plan." Another search engine to try is Firstgov.com.) The result is
224,000 returns, not all of them direct hits, but you get the idea -- there's a lot of
acquisition planning information out there.
So as we've said many times, you need to focus on the right agencies: the ones that
buy what you sell. Tracking acquisition planning information takes time, so don't
waste your time in the wrong places.
In doing Internet research, one way to focus is to use the right keywords. Let's say
you're a minority-owned company that manages government facilities. If you add the
keywords "facilities management" to your Google.com search ("facilities
management" "acquisition plan" site:.gov), your first "hit" will be a National Science
Foundation Annual Acquisition Plan Web page:
http://www.nsf.gov/bfa/cpo/contracts/acquisitionplan02.html
Scroll down to the bottom of that page and you'll find a gold nugget. In the first
quarter of 2003, the agency plans to procure facilities management services from an
8(a) company. It'll be a competitive procurement and the contract value will exceed
$5 million.
All you've found so far is a simple table representing the plan, and yet the information
is a critical first step. Now you're focused. Now you can call the agency to introduce
yourself and find out more. (Who's the incumbent? How are they doing? What can be
done better? etc.)
For an example of a state acquisition plan -- in this case from Tennessee -- go to
http://www.state.tn.us/generalserv/purchasing/foreacq.pdf. (Warning: this may take a
while to load; it’s a 709 page .pdf document.)
The Internet research method of finding acquisition planning information works well
for companies new to government contracting or otherwise not yet "in" with a
particular agency. Another tactic is to do targeted research on who buys what within a
particular agency. This will help you pinpoint the right people to speak with in order
to locate relevant planning information. Products such as our own FedBuying
Intelligence (FBI) can be helpful in this regard.
If you already have an established relationship with an agency, check out its web site.
In the National Science Foundation example, if you’d gone directly to the agency’s
Contracts Branch page you’d find these words: "NSF Annual Acquisition Plan." That
text is linked to the page cited above.
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Also, don’t hesitate to ask procurement personnel you know about their acquisition
planning. Ask if you can assist in any way--comments, suggestions, information on
your products or services, why they will help meet agency program goals, etc.
Ideally, of course, you’d like the items you sell to be part of the things deemed
necessary within an acquisition plan. Your company probably won’t be mentioned,
but your products might be.
Acquisition plans represent one more example of information that's out there to help
you find customers. It's just one more part of your arsenal--an important one--in
winning government business.
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Chapter 24
Past Performance
By Richard White
In selecting winning vendors, federal, state, and local governments have typically
looked at past contract performance information as part of their overall evaluation
processes. Simply stated, vendors that have a history of performing well have always
enjoyed a better chance of winning than those that do not.
In late 1990s, however, the federal government began placing even more emphasis on
past performance, codifying detailed past performance rules within the Federal
Acquisition Regulations (FAR).
Collection of Past Performance Information
Under the FAR, agencies prepare evaluations of contractor performance for each
contract in excess of $100,000 from the time the work under the contract is
completed. Agency evaluations of contractor performance are supposed to be
provided to the contractor "as soon as practicable" after completion of the evaluation.
Contractors have a minimum of 30 days to submit comments, rebutting statements, or
additional information. Procedures allow input from the technical office, contracting
office and, where appropriate, end-users of the product or service.
Use of Past Performance Information in Evaluating RFP Responses
The solicitation itself is supposed to describe the approach taken for evaluating past
performance, including the evaluation of offerors with no relevant performance
history, along with an opportunity to discuss past or current contracts (including both
government and private) for work similar to the agency’s requirement. Further,
solicitations authorize offerors to provide information on any problems encountered
in the past and to describe their corrective actions.
The agency will consider the information you provide in your proposal, along with
information obtained from "any other sources." What are these other sources?
Evaluators may call personnel within agencies you’ve worked for and begin to ask
questions. They may snoop around and talk to people not listed as references in your
proposal. And they probably will check past performance databases to see if you’re
listed and what’s been said.
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The federal government is beginning to centralize past performance information for
large contracts. For example, the past performance database of the National Institutes
of Health, NASA, and DOD are being stored on a DOD server and will be available
on the Internet (probably early 2003) for access by any contracting official. The new
system is called Past-Performance Information Retrieval System (PPIRS),
http://dodppais.navy.mil/. We expect this trend to continue toward a single federal
database for ALL agencies. When will full centralization be a reality? Probably
sometime in this century. (It’s the federal government we’re talking about. It may
take awhile.)
Don’t forget, information often is kept on smaller contracts as well, just more
informally. (The contracting officer (CO) only needs to make notes to the file when
using past performance information in making small contract award decision, be
consistent in using past performance information, and discuss negative performance
with prospective offerors.)
So, for both small and large contracts, it’s important to manage, as best you can,
what’s being said about your company. Negative information often means less
business down the road.
Past Performance and Future Sales
There is nothing atypical about government past performance and its correlation with
sales results. Use of past performance information to select suppliers is a way of life
in the commercial sector. You’ll probably lose that one customer altogether if you
perform poorly for a commercial customer.
One big difference, though, between the public and private sector: in the commercial
world your past mistakes tend not to come back to haunt you quite as dramatically,
because there’s not as much information- sharing going on. Another important
difference: if a government agency decides to knock you out of the competition
because of past performance problems, the decision can be challenged in court.
To keep your record stellar, perform well, of course--that’s obvious-- but also
communicate with both the CO on a past contract and the CO soliciting for the new
contract when in doubt about any aspect of past performance and how it is being
used.
Rebut all negative performance reports and try to get the agency to strengthen
lukewarm reports. Remember, it’s all about relationship sales and maintaining a
strong customer relationship during performance, so obtaining a superior performance
report should be a natural byproduct of how you deal with the customer.
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Everyone encounters performance problems, so focus on correcting the ones you
encounter and make your customer a partner in the correction process. Ideally, you
would have a former customer say: "The contractor and our agency worked together
to solve this particular performance problem. They took the problem seriously and
took steps to correct it." That statement would look nice in an evaluation report since
most government people recognize that all contractors encounter performance
problems and what counts most is how you address those problems.
Select carefully the contracts you site in your proposal. Talk with your government
references ahead of time so they know that they are being referenced; prep them to
say good things; and be especially thoughtful on how you discuss problems, if any,
and corrective actions taken.
Bottom line is this: Communicate openly with buyers and deal straight up with any
performance evaluations and perceptions that are out there. Don’t run and hide from
your past, because in this post-reform era it’s increasingly out there for all to see.
References:
DOD Past Performance Automated Information System (PPAIS),
http://dodppais.navy.mil/
Department of the Navy Past Performance Guidelines,
http://www.ace.navy.mil/tools/turbo/topics/bb.cfm
Office of Federal Procurement Policy, Best Practices for Using Current and Past
Performance Information,
http://www.arnet.gov/Library/OFPP/BestPractices/pastpeformguide.htm
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Chapter 25
Performance-Based Contracting
By Richard White
Federal, state and local governments have engaged in performance-based contracting
for a long time. We've witnessed a dramatic upswing, however, in the last few of
years, especially at the federal level.
Last year the Office of Management and Budget (OMB) directed agencies to use, in
2002, performance-based contracting for at least 20 percent of service contracts
greater than $25,000. The Pentagon has set a goal of 50 percent by 2005.
Even if they're not met (and they probably won't be), these ambitious goals
demonstrate that the emphasis on performance-based contracting is here to stay.
In performance-based contracting, the government states its requirements in terms of
desired results rather than detailed, procedural specifications. The contractor decides
how to perform and achieve the results. Here's a definition provided by the Navy:
Under PBSC, the government pays for results, not effort or process,
and contractors are free to determine the best and most cost-effective
ways to fulfill the government's needs.
A more detailed description is set forth at FAR 37.601:
Performance-based contracting methods are intended to ensure that
contractors achieve required performance quality levels and that total
payment is related to the degree that services performed meet contract
standards. Performance-based contracts—
(a) Describe the requirements in terms of results required rather than
the methods of performance of the work;
(b) Use measurable performance standards (i.e., terms of quality,
timeliness, quantity, etc.) and quality assurance surveillance plans (see
46.103(a) and 46.401(a));
(c) Specify procedures for reductions of fee or for reductions to the
price of a fixed-price contract when services are not performed or do
not meet contract requirements (see 46.407); and
(d) Include performance incentives where appropriate.
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Work Statements
While the concept is simple (pay based on performance), implementation isn't. That's
because performance-based work statements, which set the terms of payment and
work to be performed, are difficult to draft.
Think of the complexity of writing one for a contractor to operate a federal nuclear
research facility. You would need a formidable team of MBAs, industrial engineers,
and efficiency experts to get the job done. In this situation, how would you quantify
performance quality?
As you might expect, the government is having trouble writing practical performancebased work statements because they're often complex to write and because, on the
whole, the acquisition work force is not yet adequately trained.
Market Research
A leading government guidebook on the subject ("Guidebook for Performance-based
Services Acquisition in the Department of Defense,"
http://www.acq.osd.mil/ar/doc/pbsaguide010201.pdf) emphasizes the importance of
conducting market research. Government acquisition personnel are to become
"informed consumers" if they are to have any success in developing work statements.
One leading expert stresses that acquisition teams need to "canvass" contractors,
asking such questions as:
•
•
•
What measures would they propose?
What incentives would they want? How?
How would they want to report performance data?
This is yet another example the importance of selling early and personally to
government buyers and end-users. You want to be in a position to assist in the market
research effort. You want to be "canvassed" (strange as that may sound). You want to
provide information on your company's services, help the acquisition team do its job
and, hopefully, leave your imprint (however slight) on the resulting work statement.
Another more subtle reason: crafting and responding to work statements requires that
both sides--procurement people and contractors--have a clear understanding of an
agency's program goals. If you're not in the game early, you're not in the position to
devise innovative solutions to meet those goals.
Risk-Taking
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Old-style cost-reimbursement contracting is safer for the government contractor.
Assuming you have a capable and caring staff, they basically have to go to work, do
their jobs and you will get paid and make a profit. Management need only have a
good contract manager, leaving them the time to focus attention on winning new
contracts.
Cost-reimbursement contracts required procurement personnel to carefully detail
what contractors were to do and how they were to do it. To make up for the fact that
laying out every detail is impossible, the resulting contracts often allowed
reimbursement for extra costs. Post-award cost adjustments were the norm. In the old
days, agencies assumed much of the costs of amended requirements, and even the
costs of poor performance.
Performance-based contracting, on the other hand, puts a premium on contract
management, cost control, and your knowledge of precisely what the costs will be.
Contractors don't have that "wiggle room" with performance-based contracts. So the
bottom line is this: you'd better know exactly what you're getting into and you'd better
be innovative. If you know your costs and agency program goals, and if you're
creative in coming up with solutions, there is money to be made.
Repeat Contracts
What hasn't changed is that service contracts tend to "repeat" themselves. Once
you've landed a service contract, you can maintain current annual revenue levels by
performing well.
One caveat, however: there is an inherent appearance of impropriety if the
government goes back to the same contractor over and over, even though that may be
the best deal for the taxpayer. Sometimes internal government politics cause recompetes to go to the wrong contractor.
In spite of this, it is reasonably safe to assume that if you perform you will win next
time around and maybe even a few more after that before the government gets
nervous about the appearance of a level playing field.
As the incumbent you're the only one who really understands the contract
requirements in the real world, and thus you're in the best position to bid a realistic
price. The danger of competition deliberately underbidding you, and making up the
difference later with contract modifications, is reduced in performance-based
contracting. Why? Again, because it's harder to negotiate contract modifications.
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Sales Tips
•
•
•
•
Get an even better understanding of the customer's requirements and perceived
solutions than you might for a cost reimbursement opportunity.
Sell your ability and desire to meet performance-based goals.
Instill confidence in the customer that you will be able to perform under a
performance-based contract.
Stress your experience in performing government performance-based contacts, if
you can. If not, substitute commercial experience. Commercial experience carries
more weight these days.
Resources
Note: although helpful for understanding the process, the following are written from
the buyer's perspective:
http://www.arnet.gov/Library/OFPP/BestPractices/PPBSC/BestPPBSC.html
http://www.acq.osd.mil/ar/doc/pbsaguide010201.pdf
http://oamweb.osec.doc.gov/pbsc/index.html
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Chapter 26
Women-Owned Business Contracting
By Eric Aaserud
Congress has established a 5-percent government-wide goal for awards to womenowned small businesses (WOSBs). Yet year after year, federal agencies fail to meet
this goal. In fact, in 2001, the government awarded just 2.5 percent of federal
contracting dollars to WOSBs--only half the stated goal!
In a recent survey, the Government Accounting Office (GAO) surveyed procurement
officials and women-owned business owners to find out what the problem is. The
report concluded: "Government contracting officials at all levels told us that they
were generally overwhelmed by the number and complexity of the requirements of
small business contracting programs and their related goals. These officials believe
that the programs tend to crowd out woman-owned small businesses."
The Women-Owned Small Business Federal Contract Assistance Program allows
contracting officers in certain circumstances to use "restricted competition" to
increase contracting opportunities for WOSBs. While this program should, in theory,
help contracting officers reach out to women-owned small businesses, the report
suggests that the large number of small business programs diverts attention away
from women-owned goals.
Undoubtedly another problem is that, while the program has a required goal set by
law, there are no concomitant set-aside rules or incentives for awarding WOSB
contracts. Not enough carrots; not enough sticks.
The upside, though, is this: because there's no such thing as a WOSB set-aside
contract, the federal government does not require formal certification. In other words,
there's less red tape. If your business meets the WOSB definition and you are
submitting a proposal for the first time, you can "self-certify" that your business is a
WOSB.
How do you know whether or not your business is a WOSB? The Federal Acquisition
Regulations (FAR) defines a "women-owned small business" as follows:
Women-owned small business concern means a small business
concern --
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(a) which is at least 51 percent owned by one or more women; or, in
the case of any publicly owned business, at least 51 percent of the
stock of which is owned by one or more women; and
(b) whose management and daily business operations are controlled by
one or more women.
Marketing and Educating
At Fedmarket.com we often beat the drums about the importance of personal sales.
WOSBs of course have to sell personally, just like any other type of business, but,
given the current climate, add "educating" to the list of things to do.
When you're marketing to your target agency, try to know in advance how well that
agency did in reaching the 5-percent goal in the prior fiscal year.
If your target agency is the Department of Education, for example, it might not hurt to
remind your contacts there (in a nice way) that the agency awarded just over 1
percent of its contracts to WOSBs in 2001. What you'll be thinking of course is, You
guys ought to be ashamed of yourselves. What comes out of your mouth is, "How can
we help you do better."
Where do you find federal agency women-owned contracting information? Get your
hands on the Federal Procurement Report from the Federal Procurement Data Center,
http://www.fpdc.gov/.
Or you might start with the agency's Office of Small and Disadvantaged Business
Utilization (OSDBU). Most federal agencies have such an office with at least one
designated point of contact for WOSBs. These folks can help you determine the
appropriate procurement personnel to market to. They also can help you determine
how the agency is doing against the 5-percent goal.
You'll find the OSDBU Directory here: http://www.sba.gov/GC/osdbu.html. For
individual office homepages, use Google or FirstGov.
Suppose that you still can't find women-owned contracting statistics for an agency.
Contact the agency's procurement office and just ask.
If the numbers are below 5 percent, inquire whether the agency would consider using
"restricted competition" to improve its performance. Explain why the agency will be
sacrificing nothing in terms of quality of product or service if your company ends up
winning. In other words, your company will exceed the performance expectations in
109
place for any type of business; helping the agency meet its women-owned contracting
goals is a secondary benefit.
Subcontracting Opportunities
Don't forget about subcontracting opportunities. Subcontracting with an experienced
prime contractor can be a great experience, not to mention an opportunity to generate
revenue.
Federal procurement law requires that -on contracts of over $500,000 ($1,000,000 for construction of a public facility),
large contractors and subcontractors submit a subcontracting plan containing
percentage goals for subcontracting with small, small disadvantaged AND
women-owned small businesses.
• large contractors and subcontractors describe the efforts they will make to assure
that such businesses have an equitable opportunity to compete for subcontracts.
• the SBA reviews the subcontracting plan; if the large contractor or subcontractor
fails to comply in good faith with the approved plan, the contractor may be
terminated for default.
•
In selling subcontracts to prime contractors, view them as you would an agency's
contracting office. Try to establish trust relationships so that primes come back to you
often to meet their women-owned contracting goals.
Other Resources
http://www.womenbiz.gov/
http://www.sba.gov/womeninbusiness/selling.html
http://www.onlinewbc.gov/
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Chapter 27
Minority-Owned Business Contracting
By Eric Aaserud
In the prior chapter, we talked about women-owned business contracting. This time
we discuss the 8(a) Business Development Program and the Small Disadvantaged
Business Certification (SDB) Program.
Background: The Law
The Small Business Act of 1953 states that minority-owned businesses (and small
businesses generally) should enjoy the "maximum practical opportunity" to
participate in federal contacting. The Small Business Act established the Small
Business Administration (SBA) to assist such businesses and to insure they receive a
"fair proportion" of federal contracts.
As in the case of women-owned businesses (WOSBs), Congress has established a 5percent government-wide goal for awards to small disadvantaged businesses (SDBs).
The Programs
The SBA administers two business assistance programs for small disadvantaged
businesses: the 8(a) Business Development Program and the Small Disadvantaged
Business Certification (SDB) Program. One big difference between the two: the 8(a)
Program offers a broad scope of assistance to socially and economically
disadvantaged firms, while SDB certification applies only to benefits in federal
procurement. 8(a) firms automatically qualify for SDB certification.
Keep in mind, as you read this article, that states have similar programs in place. The
requirements for participation are generally the same, as are the sales and marketing
principles. (An example of such a program is Vermont's Disadvantaged Business
Enterprise Program, http://www.aot.state.vt.us/CivilRights/Dbe.htm.)
Here are some details on the two major federal programs:
Section 8(a) Program
Section 8(a) of the Small Business Act empowers the SBA to enter into contracts with
other agencies to provide supplies, services and construction. In contracting with
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another agency, the SBA subcontracts all of the performance requirements to a
"socially and economically disadvantaged small business concern." Vendor
participation is divided into two phases over nine years: a four-year developmental
stage and a five-year transition stage.
Eligibility
To qualify for the program, a small business must be owned and controlled by a
socially and economically disadvantaged individual. Presumed disadvantaged groups
include African Americans, Hispanic Americans, Asian Pacific Americans, and
Subcontinent Asian Americans.
Other individuals can be admitted to the program if they show through a
"preponderance of the evidence" that they are disadvantaged because of race,
ethnicity, gender, physical handicap, or residence in an environment isolated from the
mainstream of American society.
Individuals must have a net worth of less than $250,000, excluding the value of the
business and personnel residence.
You can apply to the 8(a) Program by contacting any SBA district office,
http://www.sba.gov/regions/states.html. For more information or questions, call the
Division of Program Certification & Eligibility at (202) 205-6417.
Benefits
The biggest and most powerful benefit of 8(a) participation: vendors can receive solesource contracts up to a cap of $3 million for goods and services and $5 million for
manufacturing.
The SBA has signed Memorandums of Understanding (MOUs) with 25 federal
agencies allowing them to contract directly with certified 8(a) firms (bypassing the
SBA's traditional role as "middleman"). Recent changes permit 8(a) firms to form
joint ventures and teams to bid on contracts. These changes were intended to help
overcome the effects of contract bundling, the combining of two or more contracts
together into one large contract.
SDB Program
Eligibility
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A small business must be at least 51% owned and controlled by a socially and
economically disadvantaged individual or individuals. Presumed disadvantaged
groups are the same as the 8(a) Program. Other individuals can qualify if they show
by a "preponderance of the evidence" that they are disadvantaged.
All individuals must have a net worth of less than $750,000, excluding the equity of
the business and primary residence. Participants must also meet applicable size
standards for small businesses in their particular industries.
Go here to apply for certification: http://www.sba.gov/sdb/indexsdbapply.html. Or get
in touch with your district office, http://www.sba.gov/regions/states.html.
Benefits
Under the government’s reformed affirmative action rules, small disadvantaged
businesses are eligible for price evaluation adjustments of up to 10 percent when
bidding on federal contracts in certain industries. The program also provides
evaluation credits for prime contractors who achieve SDB subcontracting targets. The
program is intended to help federal agencies achieve the government-wide goal of 5percent SDB participation in prime contracting.
Sales Strategy
It's important to keep in mind that new contracting vehicles, such as GSA Schedule
contracts, have made things a bit more difficult for 8(a) and SDB firms. A sign of
this: in 2000, federal agencies awarded 2.8 percent of prime contract dollars to
minority-owned firms. That compares with 3.3 percent in 1999. 8(a) set-aside
contracts totaled $5.6 billion in 2000, down from $6.1 billion in 1999.
Now, more than ever, 8(a) and SDB executives cannot expect to receive work simply
because of the firm's minority status. This is particularly true among 8(a) firms. From
a buyer's perspective, there just isn't as much need to "sole-source" these days.
So what's the strategy in this new environment?
First, be realistic. These programs guarantee nothing; they're just tools to help level
the playing field overall.
Second, diversify your business early on. Pursue work beyond the 8(a) and SDB
programs, including commercial opportunities.
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Third, as we discussed in the prior chapter on women-owned business contracting,
seek out subcontracting work arising from large prime contracts. Federal law requires
that prime contractors with contracts exceeding the simplified acquisition threshold
provide maximum practicable subcontracting opportunities to small businesses,
including small disadvantaged businesses. For more thoughts on subcontracting, read
Chapter 8.
Fourth, as always, market and sell personally. Talk to buyers and end-users. And
remember: although the reasons for sole-sourcing are not as compelling as they once
were, federal agencies still have the 5-percent goal. Play on that; be there to help the
target agency achieve its 5-percent goal for the fiscal year and those to come.
Fifth, remember that, while sole-sourcing may be down, it's not dead. One of the
considerations for establishing a sole-source contract is if the 8(a) vendor has "self
marketed." Self-marketing occurs when an 8(a) vendor identifies a requirement that
has not been committed to the 8(a) Program and then, through its marketing efforts,
causes the agency to offer that specific requirement to the 8(a) Program on the
vendor's behalf. (Code of Federal Regulations, Title 13, Sec. 124.3. See also
GSA.gov's summary of 8(a) procurement rules:
http://www.gsa.gov/Portal/content/offerings_content.jsp?contentOID=119945&conte
ntType=1004.)
So get out there and "self market" because you may find yourself with a sole-source
contract someday. Indeed, it's all about personal marketing and selling. Amazingly, in
this case at least, even the federal regulations say that.
Resources:
8(a) Business Development Program
http://www.sba.gov/8abd/
Small Disadvantaged Business Certification Program
http://www.sba.gov/sdb/
13 CFR 124, 8(a) Business Development/Small Disadvantaged Business Status
Determinations
http://www.sba.gov/library/cfrs/13cfr124.html
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Chapter 28
HUBZone Contracting
By Eric Aaserud
The Small Business Administration's HUBZone program provides contract
preferences to qualified small firms located in over 8,000 designated HUBZone areas.
The purpose of the program is to increase employment, capital investment, and
economic development to these relatively underdeveloped areas.
HUBZones can be as small as a city block or as large as an entire county. They also
include lands on Native American reservations.
Program Benefits
As of October 1, 2000, all federal buying agencies must follow HUBZone program
requirements. The annual contracting goals for the program were one percent of the
total value of all federal prime contracts in FY 1999. There have been and will be
annual increases of .5 percent until the program reaches its maximum goal of 3
percent in FY 2003.
There are four types of HUBZone tools to help federal buyers meet their mandated
goals:
1. A HUBZone set-aside contract can be awarded if the contracting officer has a
reasonable expectation that two or more HUBZone firms will submit offers and that
the contract can be awarded at a fair market price.
2. A sole source HUBZone contract can be awarded if the contracting officer doesn't
have a reasonable expectation that two or more qualified HUBZone small businesses
will submit offers, determines that the HUBZone firm is responsible and that the
contract can be awarded at a fair price. The government's estimate for a HUBZone
sole source contract cannot exceed $5 million for manufacturing requirements or $3
million for other requirements.
3. A full and open competition contract can be awarded with a 10-percent price
evaluation preference. This preference is applied only if the low offeror is a large
business.
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4. Subcontracting plans for large business federal contractors must include a
negotiated HUBZone subcontracting goal.
Eligibility
To participate in the HUBZone program, a firm must—
• Be small,
• Be located in an "historically underutilized business zone" (HUBZone),
• Be owned and controlled by one or more U.S. Citizens, and
• Have at least 35% of its employees residing in a HUBZone.
"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)(1) of the Internal
Revenue Code of 1986);
•
A qualified "non-metropolitan county" that is not located in a metropolitan
statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue
Code of 1986), and in which the median household income is less than 80
percent of the non-metropolitan state median household income, or that is
based on the most recent data available from the Secretary of Labor, has an
unemployment rate that is not less than 140 percent of the statewide average
unemployment rate for the state in which the county is located; and
•
Lands within the external boundaries of an Indian reservation.
Applying
You can apply for HUBZone certification online:
https://eweb1.sba.gov/hubzone/internet/application/dsp_apps_home.cfm.
Some Thoughts
Unless your principal place of business is in a HUBZone or unless you're willing to
move to one, this topic isn't relevant to you. Keep in mind, though, that HUBZones
cover rather large areas throughout the country. The SBA has developed special
mapping software to help determine if a particular physical address is within a
HUBZone. To find out whether your company is within one, go to the following
URL: https://eweb1.sba.gov/hubzone/internet/general/findout.cfm.
To see what types of contracts have been awarded to HUBZone companies, go to
FedBizOpps.gov or use our own FedBiz Now,
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http://www.fedmarket.com/bidProducts/fbn/. When you search, select "Total HUBZone" in the Set-Aside Code option.
If your firm is HUBZone certified, the advice is much the same as it is for womenand minority-owned businesses: work your sales leads and make sure they're aware of
your firm's HUBZone status. Help the agency reach its HUBZone contracting goals,
because these goals are important to agencies.
How important? Here's one example: The "Selling to the Air Force" website tells the
story of procurement officials at Robins Air Force Base in Georgia requesting bids
from two HUBZone firms. Initially both declined, saying the items were too difficult
to manufacture. The procurement officials didn't give up! They continued to talk to
the firms and later convinced one of them to submit a proposal. Now that's diligence.
More on that here: http://www.selltoairforce.org/sbnr/sbcontracting.htm.
Success Story
Stronghold Engineering specializes in electrical and civil engineering construction.
Since registering with the program, Stronghold has received two HUBZone contracts
from the U.S. Navy and one from NASA. More on that here:
http://www.sba.gov/ca/santa/success1.html. Company information:
http://www.strongholdengineering.com.
Resources
SBA's HUBZone homepage:
https://eweb1.sba.gov/hubzone/internet/
https://eweb1.sba.gov/hubzone/internet/indexto.cfm (text only site)
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Chapter 29
Small Business Contracting
By Eric Aaserud
In this chapter we tackle the broad topic of small business contracting. Our approach
here is similar to the prior three chapters in which we discussed women-owned,
minority-owned and HUBZone contracting. We'll focus on some of the unique
programs available to small businesses, along with the general regulatory advantages
they have over larger businesses. We'll concentrate on the federal level and end with a
brief discussion of state small business programs.
Federal Programs
The Law
Let's begin with an overview of federal law:
The Small Business Act of 1953 states that small businesses should receive a "fair
proportion" of federal contracts and that small businesses should enjoy the
"maximum practical opportunity" to participate in federal contacting. The Small
Business Act established the Small Business Administration (SBA) to help small
businesses receive their "fair proportion."
The Business Opportunity Development Reform Act of 1988 amended the Small
Business Act to require the President to establish an annual government-wide goal of
awarding not less than 20 percent of prime contract dollars to small businesses. The
Small Business Reauthorization Act of 1997 amended the Small Business Act still
further to increase this goal to not less than 23 percent. Under the small business setaside program, federal agencies "set aside" contracts exclusively for small business
participation. Federal Acquisition Regulation (FAR) 19.502-2(a) states that a
purchase with "an anticipated dollar value exceeding $2,500, but not over $100,000,
is automatically reserved exclusively for small business concerns and shall be set
aside for small business unless the contracting officer determines there is not a
reasonable expectation of obtaining offers from two or more responsible small
business concerns that are competitive in terms of market prices, quality, and
delivery." This requirement often is referred to as the "rule of two."
Only businesses that fall under certain established size standards are deemed small
and allowed to bid on small business set-asides.
Size standards
The critical first question to ask, then, is whether yours is in fact a small business.
The magic number is often 500 employees (i.e., if your company has 500 or less, it's a
small business), yet the numbers vary widely from industry to industry. The SBA
often uses annual sales as the determining factor. Those numbers also vary widely.
Here are the general size standards:
• 500 employees for most manufacturing and mining industries,
• 100 employees for all wholesale trade industries,
• $6 million for most retail and service industries,
• $28.5 million for most general & heavy construction industries,
• $12 million for all special trade contractors,
• $0.75 million for most agricultural industries.
To find out the size standard for your industry, go to this URL:
http://www.sba.gov/size/indextableofsize.html.
As with the women-owned small business program, the SBA does not issue
certificates establishing the eligibility of small businesses. Instead firms must selfcertify their small business status at the time of bid response.
Bidding opportunities
Okay, now let's assume that yours is a small business. If you haven't done so already,
check to see what types of contracts have been or are being awarded in your industry.
Go to FedBizOpps.gov or use our own FedBiz Now,
http://www.fedmarket.com/bidProducts/fbn/. When you search, be sure to select
"Total Small Business" in the Set-Aside Code option.
In general, focus on the under-$100,000 opportunities where you aren't competing
against large firms. And make sure you're self-certifying your small business status in
your bid responses.
Getting the word out
But don't wait for the opportunities to come to you. Be proactive. Find buyers and let
them know your firm is capable of meeting program requirements. You may gain
some advantage when the bid comes out. Not only that, you may help ensure that
relevant bid opportunities come out as small business set-asides. You want to see to it
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that the "rule of two" works in your favor. You want buyers that buy what you sell to
know there are at least two small businesses capable of providing quality products or
services at competitive prices. They won't know unless they find such businesses.
Help them find yours.
Although it's no substitute for contacting buyers and end-users personally, make sure
your firm is listed in SBA's PRO-Net database. PRO-Net is a primary vendor
directory used by federal buyers in finding small businesses. http://pro-net.sba.gov/
Agency forecasts
Federal agencies often put out special procurement forecasts that are geared toward
small business. To learn more about forecasts and why they're so important, read
Chapter 7, Finding Information On Future Procurements.
Where do you go to find forecasts? Fedmarket's Jumpstation is a good place to start,
http://www.fedmarket.com/freeRes/jumpstation/. It's free. Another place is the SBA
site, http://www.sba.gov/GC/forecast.html. Also, our bid searching product
Bidengine, http://www.bidengine.com, allows you to search agency forecast pages by
keyword.
Subcontracting
Remember, too, as we discussed in chapters 8 and 26, subcontracting opportunities
are often the best way to get involved in government contracting. Federal
procurement law requires that
1) on contracts of over $500,000 ($1,000,000 for construction of a public facility),
large contractors and subcontractors submit a subcontracting plan containing
percentage goals for subcontracting with small, small disadvantaged AND womenowned small businesses;
2) large contractors and subcontractors describe the efforts they will make to
assure that such businesses have an equitable opportunity to compete for
subcontracts; and
3) the SBA reviews the subcontracting plan; if the large contractor or
subcontractor fails to comply in good faith with the approved plan, the contractor may
be terminated for default.
Sell your capabilities to prime contractors. Help them meet their small business
contracting goals. To find primes by state, take a look at DoD's Subcontracting
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Directory, http://www.acq.osd.mil/sadbu/publications/subdir/index.html. Another one
to check out: SBA's Subcontracting Directory,
http://www.sba.gov/gopher/Government-Contracting/Subcontracting-Directory/.
State and Local Programs
Programs at the state and local levels are similar to those at the federal level.
California is a good example. Small businesses in California:
• Qualify for a 5% bid preference on applicable state contracts;
• Are eligible for benefits under the Prompt Payment Act including higher interest
penalties for late, undisputed invoice payments;
• Are listed in the state's Internet Certified Firm Listing, giving firms some
visibility.
To be eligible as a small business in California, a company:
• Must be independently owned and operated;
• Cannot be dominant in its field of operation;
• Must have its principal office located in California;
• Must have its owners (or officers in the case of a corporation) domiciled in
California; and
• Together with its affiliates, be either a business with 100 or fewer employees, and
an average annual gross receipts of $10 million or less over the previous three tax
years, or a manufacturer with 100 or fewer employees.
As at the federal level, there is no shortage of state and local resources available to
small businesses. For example, the state of Maryland maintains a network of 15 Small
Business Development Center offices across the state, in four major regions.
http://www.bsos.umd.edu/sbdc/T_Home.html.
Also, as at the federal level, the key is to locate your target agencies first, make solid
contacts, then learn about the small business programs that are available to you. Don't
rely solely on these programs or expect sudden miracles, but certainly use them to
your advantage. That's why they're there.
Resources
SBA Government Contracting
http://www.sba.gov/GC/
HUD Marketing Tips for Small Businesses
http://www.hud.gov/offices/osdbu/tips.cfm
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HUD Small Business Resource Guide
http://www.hud.gov/offices/osdbu/resource/guide.cfm
DoD Office of Small and Disadvantaged Business Utilization
http://www.acq.osd.mil/sadbu/index.html
http://www.acq.osd.mil/sadbu/publications/
Selling to the Military
http://www.acq.osd.mil/sadbu/publications/selling/index.html
California Small Business & Disabled Veteran Business Enterprise (DVBE)
Certification
http://www.pd.dgs.ca.gov/smbus/default.htm
Maryland Small Business Development Center Network (MDSBDC)
http://www.bsos.umd.edu/sbdc/T_Home.html
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Chaptert 30
Electronic Signatures
By Eric Aaserud
The last four chapters were devoted to the related subjects of women-owned,
minority-owned, HUBZone and small business contracting. We're shifting now into
electronic procurement -- or e-procurement -- a topic that seems to grow increasingly
important by the day.
Over the next few chapters, we'll break down the general topic of e-procurement into
the following sub-topics:
•
•
•
•
•
Electronic Signatures
Government Purchase Cards
Electronic Marketplaces
Reverse Auctions
FACNET
We begin with electronic signatures because it's an e-procurement cornerstone. The
country's various electronic signature laws have helped make e-procurement possible.
Any vendor involved in e-procurement will be operating under the blessing of one or
more electronic signature laws.
Government e-Procurement Push
To compete for government business, vendors are finding themselves involved in eprocurement. More and more, they're finding that at least some sales activities must
be conducted online. Examples of online activity include responding to RFPs,
displaying catalogs, and even executing contracts.
At the federal level, the primary source behind this e-procurement push is Section 30
of the Office of Federal Procurement Policy (OFPP) Act, which requires that a federal
procurement organization "establish, maintain, and use, to the maximum extent that is
practicable and cost- effective, procedures and processes that employ electronic
commerce in the conduct and administration of its procurement system."
In line with this law, traditional Federal Acquisition Regulation (FAR) definitions
have been expanded to include the use of e-commerce and electronic signatures. For
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example, "contract" includes "all types of commitments that obligate the Government
to an expenditure of appropriated funds and that, except as otherwise authorized, are
in writing." The FAR also makes it clear that "in writing," "writing" and "written"
refer to "any worded or numbered expression that can be read, reproduced, and later
communicated, and includes electronically transmitted and stored information."
Furthermore, the FAR states that electronic commerce "may be used to issue RFPs
and to receive proposals, modifications, and revisions," and that an "electronic
signature may be used in the production of purchase orders by automated methods."
Under the authority of these legislative and regulatory changes, agencies are moving
their procurement activities online, forcing vendors to follow.
"Electronic" vs. "Digital" Signatures
To encourage the use of e-commerce the federal government wanted to make it clear
that e-signatures are valid in executing contracts. What do we mean by e-signatures?
Let's consider two important definitions:
"Electronic signature" is a general term that refers to signatures created using a
variety of possible cryptographic methods. Signatures often are accomplished through
the use of username and passwords, or PIN numbers. "Electronic" signatures are less
secure than "digital" in terms of user authentication.
"Digital signature" is a more specific term (and a subset of "electronic signature") that
refers to signatures created with public key cryptosystems. Signatures are
accomplished through Public Key Infrastructure (PKI). With digital signatures there
is true authentication that the person signing is who he says he is.
The primary federal and state laws in this area, ESIGN and UETA, are based on the
looser "electronic signature" requirement.
Electronic Signature Laws
Federal law: Electronic Signatures in Global and National Commerce Act
(ESIGN)
The Electronic Signatures in Global and National Commerce Act (ESIGN) expressly
authorizes the use of electronic signatures, notarizations, acknowledgments and
verifications, and electronic records. Under the act, no contract, signature or record
can be denied legal effect solely because it's in electronic form.
The law is rather general, saying essentially that electronic signatures may be used to
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establish binding contracts. ESIGN also states that a person cannot be required to
agree to use or accept electronic records or electronic signatures.
Federal agencies, however, are the glaring exception to this rule. Section 101(b)(2)
states that the act does not obligate any person "other than a governmental agency
with respect to a record other than a contract to which it is a party."
There are two competing interpretations of this important provision. The Office of
Management and Budget's position on section 101(b)(2) is that it applies broadly to
an entire transaction involving a government contract, including all records relating
to the contract. Under OMB's interpretation, federal contracting officers can disallow
all electronic responses.1
A second interpretation holds that section 101(b)(2) does not apply to documents in
the procurement process that come before the actual contract (e.g., contractor requests
for clarification, statements of interest, and proposals).2 Federal contracting officers
under this interpretation could not, for example, exclude an offeror from
consideration solely on the grounds that it submitted its proposal electronically.
This second interpretation seems more logical in light of the plain language of the
statute. The issue, however, has yet to be decided by a federal court. In practice, many
federal agencies still insist on receiving paper responses to solicitations, and, until a
court says otherwise, contracting officers can point to OMB's position for support.
But under this interpretation, wouldn't it be asking too much of federal agencies to
force them to accept electronic signatures? What about competing standards? What
about a offeror who wants to use second-rate or even ineffective e-signature software
in submitting its proposal? ESIGN has built-in protections designed to address such
problems. The act provides that an electronic record may be denied validity if it does
not remain accurate and accessible to all persons entitled to the record.3 It also allows
agencies to impose performance standards to ensure record integrity, accuracy and
accessibility.4
As a vendor, when would it make sense for you to insist on an electronic response
when the solicitation calls for paper? When your interest in statutory interpretation
outweighs your interest in winning government business. In other words, probably
never.
State laws: two approaches
The states have adopted two general approaches in authorizing the use of electronic
signatures: (1) only digital signatures satisfy signature requirements (Utah approach);
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and (2) electronic signatures satisfy legal signature requirements (UETA approach).
1) Utah approach
States following the first approach authorize the use of only digital signatures,
ignoring the more general category of electronic signatures. Utah was the first state to
adopt such legislation, sometimes referred to as "long statutes." Long statutes
recognize digital signatures as legally binding but go beyond that by giving digital
records evidentiary weight, adopting a specific technology (usually asymmetric
cryptosystem), allocating liability, and providing a state's Secretary of State (or other
public entity) extensive regulatory powers.
2) Uniform Electronic Transactions Act (UETA) approach
The second approach is more in line with traditional contract law, under which a
variety of methods can qualify as a signature. (Examples of valid signatures over the
years include names on telegrams, typed names, names on letterhead, and faxed
signatures.)
States following this approach separate the issue of signature from the issues of
security, proof and evidence. These states have adopted, in whole or in part, the
Uniform Electronic Transactions Act (UETA), which is similar to the federal act,
ESIGN. As of July 18, 2001, 37 states had passed various versions of the UETA.
Practical Effect
When joining government-backed e-procurement systems, you may find yourself
operating under one or both of these approaches.
Systems operating under the Utah approach will be more secure. On the other hand,
such systems may require that you install and learn to use PKI software.
While systems operating under the UETA approach will be less secure, the benefit is
that you won't have to hassle with PKI software. Basically, you'll just have to register
with the system (acknowledging, among other things, that you have agent authority to
represent your company), choose a username and password, and then enter your
username and password each time you use the system.
Let's take a look at systems operating under these two approaches:
1) NASA Electronic Procurement Pilot (EPRO)--digital signature approach
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The NASA Electronic Procurement Pilot, known as EPRO, relies on two digital
software programs. Vendors responding to solicitations build documents and bundle
them together within one program. They then sign cover sheets with a digital
signature using another program.
The problem is that it takes time to deploy these tools and explain how to use them.
Officials are debating a possible move toward a more liberal electronic signature
approach, one that has been coined "Reverse EPS." (EPS refers to Electronic Posting
System, which is the backbone of the federal government's primary contracting
opportunity site, FedBizOpps.gov.)
Reverse EPS would help get around the deployment problem. Offerors would log
onto a secure NASA server then upload all files associated with the procurement
action, such as proposal response or contract execution. The signature event would be
a combination of logging in and submitting the documents while logged in. There'd
be no extra software to use.
The main concern with this approach is lack of authentication. (Misused
usernames/passwords; is the signatory the person he says he is? etc.) Although such a
system likely would be on solid legal footing (i.e., ESIGN), agency officials could, in
the end, decide they're not comfortable with one that lacks PKI security.
2) eMaryland Marketplace--electronic signature approach
The state of Maryland launched eMaryland Marketplace on March 8, 2000, just
before adopting the UETA. Currently 1,800 vendors participate.
Using eMaryland, vendors register and sign an authorization agreement. Users "sign"
documents by logging in and submitting them to the system. There are no PKI
software installation requirements.
It seems that eMaryland officials want to move virtually all state procurement activity
through the system. Plans for the near future include moving major construction
projects (those over $100,000) online (including bonding management and
submission of costing sheets).
The state's adoption of the UETA, and its resulting reliance on electronic (as opposed
to digital) signatures, makes rapid deployment possible.
The Better Approach
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Between EPRO and eMaryland, which approach is better?
We come down on the side of eMaryland. We believe that, in general, the lower costs
and rapid deployment associated with electronic signatures outweigh the security
benefits of digital signatures.
Electronic signatures do not radically alter the legal landscape. Signature
requirements aren't exactly stringent under traditional contract law. Over the years,
courts have deemed a variety of methods valid in establishing signatures: names on
telegrams, typed names, names on letterhead, and faxed signatures, for example.
Under the Uniform Commercial Code "any symbol executed or adopted by a party
with present intention to authenticate a writing" is a valid signature.
Courts have always had to deal with such issues as forgery. They can handle more
modern authentication problems such as misused passwords.
Conclusion
We hope that this chapter has helped you sort through some of the legal
underpinnings of the e-procurement systems you've joined or will be joining soon. (In
chapter 32, we’ll take a close look at some of the major systems.)
Beyond that we wanted to let you know that you may be required to install, learn to
use, and, in some cases, pay licensing fees for PKI software. It appears that the trend
is in the opposite direction, however, with the widespread adoption of the UETA at
the state level, and the development of electronic signature-based systems such as
eMaryland Marketplace.
That is our hope, anyway.
Resources
eMaryland Marketplace
http://www.emarylandmarketplace.com
"The Fundamental Legal Issues Raised by e-Commerce"
http://profs.lp.findlaw.com/signatures/signature_1.html
"Comparison of E-Sign and Pure UETA"
http://www.state.ma.us/itd/legal/esign-ueta-compare.htm
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Federal Digital Signature Standard (DSS), FIPS PUB 186-2
http://csrc.nist.gov/publications/fips/fips186-2/fips186-2.pdf
_____________________
End notes:
1
OMB Memorandum for the Heads of Departments and Agencies, Jacob J. Lew,
Director, September 25, 2000.
2
Samelson and Bedwell-Cole, “Will ESIGN Affect Government Contracting
Practices?” Contract Management, November 2000.
3
15 U.S.C. § 7001(d).
4
15 U.S.C. § 7004.
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Chapter 31
Government Purchase Cards
By Eric Aaserud
Our broad topic right now is government e-procurement. Last week we talked about
electronic signatures. This week we'll talk about government purchase cards.
One of the big benefits of e-procurement and procurement reform, from the vendor's
perspective, is that there's more opportunity now to get paid quickly. If you know the
rules and have the tools, you may not have to wait as long for money to come in,
compared to a few years back.
Basically, there are three ways to receive payment from the federal government:
Invoice
Purchase card
Federal Acquisition Network (FACNET)
•
•
•
We'll talk briefly about the first of these, invoice, and in more detail about the second,
purchase card. We'll save FACNET for a future chapter.
Invoice
The Prompt Payment Act was signed into law in 1982, and later amended in 1988, to
help alleviate the widespread problem of payment delays to federal contractors.
The act sets out general rules establishing that (unless a contract states otherwise) the
government must pay vendors within 30 days of receipt of an invoice or acceptance
of products or services. (In the case of construction contracts, it's within 14 days after
receipt of the progress payment request. OMB A-125.) If the government is not
timely, an interest penalty will be assessed. The current federal interest rate 5.5% per
annum.
Interest is paid if there is:
• A contract or purchase order in place,
• An acceptance of a product or service,
• No dispute over quality, quantity or other contract term,
• A proper invoice has been received by the payment office.
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To be "proper" invoices must have:
• Shipping and payment terms,
• Contract number or other authorization for delivery,
• Description, price and quantity actually received or completed,
• Other information required by the contract.
Vendors can even get double interest if the government sends out a late payment that
doesn't include the owed interest.
The Prompt Payment Act has been relatively effective in keeping the government in
line. Most vendors can count on receiving payment within 30 days of invoicing.
Purchase Card
With government purchase cards, however, vendors can get paid even faster.
These days, most federal purchases under $2,500 (micropurchases) are conducted
with a government purchase card.
But it's important to remember that use of the government purchase card is not
limited to micropurchases. In this regard, the Federal Acquisition Regulation (FAR)
states:
Agency procedures should not limit the use of the Governmentwide
commercial purchase card to micro-purchases. Agency procedures
should encourage use of the card in greater dollar amounts by
contracting officers to place orders and to pay for purchases against
contracts established under Part 8 [Required Sources of Supplies and
Services] procedures, when authorized; and to place orders and/or
make payment under other contractual instruments, when agreed to by
the contractor.
FAR 13.301
Beyond micropurchases, the purchase card may be used to:
• Place a task or delivery order (if authorized in the basic contract, basic ordering
agreement, or blanket purchase agreement); or
• Make payments when the contractor agrees to accept payment by the card.
You want your buyers to take advantage of this flexibility. Generally, you want them
to use purchase cards so that you can get paid faster on both micropurchases and
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higher purchases. When a buyer uses a purchase card, payment usually arrives in your
account within 48 hours of posting the transaction.
What can you do to make this happen? Having a Level-3 merchant account is a great
first step.
Level-3 Merchant Processing
Levels-1, -2 and -3 refer to the different amounts of information that are transmitted
during credit card transactions.
Level-3 is a larger set of data elements that includes such detail as item description,
quantity, unit of measure, price, and more. This "extra information" provides an
electronic accounting solution to government agencies. Level-3 describes exactly
what is being purchased and delivers this information electronically to appropriate
agency personnel.
Level-3 processing has become a high priority in government purchasing.
Government employees are encouraged to do business with merchants that pass
Level-3 data because this extra detail:
• Eliminates the need for receiving reports and other paperwork, and
• Helps monitor the buying practices of government card holders.
(This second factor has become more important in recent months after a GAO Report
came out citing glaring incidents of waste, fraud and abuse at the Navy's Spawar
Systems Center and Public Works Center.)
In one study, ninety percent of purchasing managers reported that receiving Level-2
or Level-3 data from a supplier is important when making a purchase card transaction
using electronic purchasing.
Vendors that have Level-3 merchant capability also enjoy lower processing fees.
Most vendors have merchant account capability (i.e., accept credit cards), but many
are not yet Level-3 capable. Having Level-3 capability can set you apart from your
competitors and, as we've said, help you get paid faster.
Tools to Get it Done
How do you get set up with Level-3 merchant capability? We've entered into a
partnership with US Bank and 3Delta Systems to bring you a competitive, full service
program called InstantPay. For companies that qualify, the processing rate is 2.10%
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to 2.20% (depending on volume) with a monthly fee of $25. That's a good rate.
For more on InstantPay, go to http://www.fedmarket.com/productTour/creditCard/.
To apply, fill out the short contact form here:
http://www.fedmarket.com/productTour/creditCard/instantpay_contact.php
How do you find government credit card holders? Our CD-Rom of Federal Credit
Card Holders can help you reach this important market segment.
http://www.fedmarket.com/productTour/buyerContacts/.
Resources
InstantPay
http://www.fedmarket.com/productTour/creditCard/
GSA SmartPay
http://www.gsa.gov/Portal/content/
offerings_content.jsp?contentOID=119096&contentType=1004
Prompt Payment Homepage
http://www.fms.treas.gov/prompt/
Prompt Payment Act Interest Rate
http://www.publicdebt.treas.gov/opd/opdprmt2.htm
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Chapter 32
Electronic Marketplaces
By Eric Aaserud
At this point in our "Doing Business with Government" series we're discussing eprocurement. This week we're taking a look at electronic marketplaces.
Electronic marketplaces, or e-marketplaces, are online systems where government
buyers and vendors come together to do business. They are typically publicly owned
but built and, in some cases, run by private contractors. Typical features include
catalog and RFQ purchasing. A few feature sealed bidding and reverse auction
capability.
We'll begin by reviewing some examples:
State Examples
NC e-Procurement @ Your Service - North Carolina
http://www.ncgov.com/eprocurement/asp/section/index.asp
At the North Carolina e-marketplace, vendors pay nothing to register. There is a 1.75percent transaction fee (called a "marketing fee") for successful sales. The site
features requisitioning, purchase order transmission, along with email notification of
such events as request for quotes and receipt of goods.
Vendors set up "marketing pages" to showcase products, capabilities and other
information, including guarantees and warranties, mission statements, and historically
underutilized business (HUB) status. Electronic bidding is planned for future releases.
eVA - Virginia
http://www.eva.state.va.us/
Virginia's e-marketplace, eVA, charges a $25 registration fee for basic memberships,
$200 for premium. There is a 1-percent transaction fee per sale, capped at $500.
Keeping fees low is a stated top priority among Virginia procurement officials. That's
a common theme: state e-marketplaces tend to be relatively low cost for the vendor.
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Federal Examples
GSA Advantage
http://www.gsaadvantage.gov
To compete at the federal government's most active e-marketplace, GSA Advantage,
businesses face a substantial up front investment. To be a part of GSA Advantage, a
company must first be awarded a multiple award schedule (MAS) contract.
Consulting firms will take a company through the rather elaborate process of
obtaining a GSA MAS contract for fees ranging from $8,000 to $30,000, depending
on the type of business and the type of schedule. (GSA awards MAS contracts to
companies when it determines that the prices offered are "fair and reasonable." To
make such a determination, agency officials compare the price or discounts that a
company offers the government with those offered to its commercial customers.)
Interested in locating a quality GSA Schedule consulting firm? Ask about our free
referral service. Send me an email at [email protected].
Navy Electronic Commerce Online (NECO)
http://www.neco.navy.mil/
At the Navy's NECO site, there is no vendor registration fee and no monthly fee.
Vendors can register to receive notices from individual Navy installations or all of
them. Registration allows receipt of e-mail notices and means to submit a response to
a procurement opportunity.
SBA Exchange
http://www.sbaexchange.gov (still under construction)
When this long overdue system is built, vendors will pay, at minimum, $1,500 per
year to be a part of it. http://web.sba.gov/list/. Ouch.
Small Business Success
There are a couple of views small businesses can take toward these online
marketplaces. The optimistic view says that they open up opportunities in new places.
The pessimistic (or "spoiling the party") view says that they bring in new competition
into places you were doing just fine thank you very much.
The accuracy of your particular view of course will depend on a number of factors,
135
including to whom you've been selling and what you sell.
A recent study suggests that small businesses are doing fairly well in the government
e-marketplace environment. The General Accounting Office (GAO) found that, for
fiscal year 2000, the small business share was 61 percent for the Defense Medical
Logistics Standard Support E-CAT, 51 percent for GSA Advantage, and 39 percent
for GSA's Information Technology Solutions Shop, compared to the overall 22percent government-wide small business share.
The report noted, though, that many small businesses still face important obstacles.
Among these: limited in-house technical expertise, differing requirements for online
purchasing programs, and lack of good customer service assistance.
Joining e-Marketplaces
Let's assume you've taken the view that says it's better to join than be left behind. So
then which e-marketplaces do you join?
Fees
Fees for joining government-owned marketplaces vary widely, from the very cheap
(which tend to be concentrated among state sites) to the very high. Before joining,
always know what the fees are. Fees can include up-front fees, monthly fees and
transaction (aka "marketing" or "success") fees.
Time
Beyond fees, technical time is an important consideration. The time and effort
required in posting and managing catalogs for various government systems can be
considerable.
Like the private sector, there are competing standards among government sites for
tagging catalog information. The federal government, for example, relies on Federal
Supply Class (FSC) codes to categorize the products it buys. For services, the federal
government employs what are known as Product Service Codes (PSCs).
Many state and local governments, on the other hand, rely on National Institute of
Government Purchasing, or NIGP, codes.
There also are various standards and procedures for loading and updating catalog
information.
136
Focus on customers
Perhaps most important of all: focus on your target agencies. E-marketplaces
guarantee no business. They're merely resources that MAY help you sell more
effectively.
One question to ask is this: Do any of your current customers buy through the
particular e-marketplace? Find out, in other words, which sites your customers
routinely use, either by their own choosing or by law.
For example, let's say a vendor sells high-end supercomputers. If the vendor is
located in North Carolina and has had success (or at least is confident of success) in
generating sales in that state, then it probably should become part of NC EProcurement@Your Service, especially given the relatively low costs involved. If the
vendor focuses on federal facilities only, it probably should become part of GSA
Advantage, despite the high up-front costs.
A vendor interested in selling to a new agency should conduct research before joining
that agency's e-marketplace. Products such as our State and Local IT Buying History
Database outline buying activity details within your product or service category. To
find out more about this and our other powerful market intelligence products, visit
this page: http://www.fedmarket.com/productTour/marketIntelligence/index.php.
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Appendices
Appendix A: Vendor Registration Pages on the Internet
Part 1: Federal
Central Contractor Registry
http://www.ccr.gov/
Small Business Administration
http://pro-net.sba.gov/
United States Postal Service
http://www.purchasing.gov/sadi/internet/index.html
NASA
http://procurement.nasa.gov/cgi-bin/nens/index.cgi
Dept of the Treasury,
Financial Mgmt Services
http://208.157.5.130/procure/index.html
Dept of Energy
http://e-center.doe.gov/doebiz.nsf/RegPrompt?OpenForm
Government Printing Office
http://www.access.gpo.gov/procurement/gpo2524.pdf
Part 2: State and Local
Alaska
http://www.state.ak.us/local/akpages/ADMIN/dgs/purchasing/vendorapp.htm
Anchorage, City of
http://www.muni.org/purchasing/packet.cfm
Alabama
http://www.purchasing.state.al.us/vendor.htm
Arkansas
https://www.ark.org/vendor/
Arizona
http://sporas.ad.state.az.us/VendReg/AZvendreg_start.asp
Maricopa County
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http://www.maricopa.gov/materials/Vend-Reg/vendor_info.asp
Pima County
http://www.co.pima.az.us/procure/venreg.htm
California
http://www.osmb.dgs.ca.gov/cscr/
Fresno, City of
http://www.ci.fresno.ca.us/adminservices/purchasing_bidders-list.html
Long Beach, City of
http://www.ci.long-beach.ca.us/purchasing/step1.htm
Oakland, City of
http://www.oaklandnet.com/government/b_and_f1/purchasing/vendor.html
San Francisco, City of
http://www.sfgov.org/oca/purchasing/forms.htm
San Jose, City of
http://www.ci.san-jose.ca.us/purch/res_ques.htm
Contra Costa County
http://www.co.contra-costa.ca.us/depart/gsd/pur_appl.htm
Los Angeles County
http://www.co.la.ca.us/doing_business/vendor_reg.htm
Orange County
http://www.oc.ca.gov/olb/glue/vendordefault.asp
San Francisco County
http://www.sfgov.org/oca/purchasing/forms.htm
Alameda County
http://www.co.alameda.ca.us/VendorApp/
Colorado
http://www.gssa.state.co.us/Companies.nsf#hreg
Aurora, City of
http://www.bidnet1.com/scripts/CO1/public/info/regoptions.asp
Connecticut
http://www.das.state.ct.us/Purchase/Register/default.asp
Delaware
http://www.state.de.us/purchase/html/application.htm
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Florida
http://www.state.fl.us/dms/venreg/
Jacksonville, City of
http://www.coj.net/pub/citygov/bidapp.pdf
Miami, City of
http://www.ci.miami.fl.us/Procurement/register.html
Hillsborough County
http://www.hillsboroughcounty.org/purchasing/vendor_letter.html
Broward County
http://www.co.broward.fl.us/Guests/pui00800.htm
Miami Dade County
http://www.co.miami-dade.fl.us/dpm/registration.htm
Georgia
http://www2.state.ga.us/departments/doas/procure/formpdfs/vendor_reg.html
Cobb County
http://www.co.cobb.ga.us/purchasing/procedures.htm#Vendor
Iowa
http://www.state.ia.us/government/dgs/Purchase/VendorInfo/VendorInfo.htm
Idaho
https://basec.sicomm.net/register/
Illinois
http://www.state.il.us/cms/purchase/selling/default.htm
DuPage County
http://www.dupageco.org/purchas/vendor.html
Indiana
http://www.state.in.us/idoa/proc/venreg.htm
Indianapolis, City of
http://www.indygov.org/purch/ven.%20reg.2.htm
Kansas
http://da.state.ks.us/purch/VenAppInstr.htm
Kentucky
http://www.state.ky.us/agencies/adm/mars/VendorRegistrationOverview.doc
Louisiana
http://wwwsrch2.doa.state.la.us/osp/lapac/vendor/Vndrmess.asp
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Maryland
http://www.dgs.state.md.us/procure/bid-app.pdf
Baltimore, City of
http://www.bidnet1.com/scripts/md1/public/home1.asp
Baltimore County
http://www.co.ba.md.us/p.cfm/agencies/budfin/purchasing/vendoregistration.cfm
Montgomery County
http://www.emontgomery.org/procurement/vendor_regist_1.asp
Maine
http://www.state.me.us/purchase/appltr.htm
Michigan
http://www.michigan.gov/eMI/Agency/CDA/agy_CDA_Frame/1,1630,7-102-115_283-1524--,00.h
Detroit, City of
http://www.ci.detroit.mi.us/finpurchasing/
Minnesota
https://www.mmd.admin.state.mn.us/webven/
Minneapolis, City of
http://www.ci.minneapolis.mn.us/citywork/city-coordinator/finance/purchasing/bidderapp.html
Hennepin County
http://www.co.hennepin.mn.us/purchasing/vendor_application_050101.pdf
Missouri
http://www.moolb.state.mo.us/vendmaint/namesearch.asp
Mississippi
http://www.dfa.state.ms.us:8080/vendor/loginsearch2.html
North Carolina
http://www.ips.state.nc.us/ips/Vendor/vndrtips.asp
North Dakota
http://www.state.nd.us/csd/spo/Reg/index.html
New Hampshire
http://www.state.nh.us/das/purchasing/vendor.htm
New Jersey
http://www.state.nj.us/treasury/purchase/forms/forms.htm
New Mexico
141
http://www.state.nm.us/spd/vendapp.pdf
Albuquerque, City of
http://www.cabq.gov/dfa/purchase/regisinfo.html
Bernalillo County
http://www.bernco.gov/departments/purchasing/purchasing_vendor_registration.htm
Nevada
http://purchasing.state.nv.us/vendorapp.htm
New York
http://www.ogs.state.ny.us/ovr/
Ohio
http://www.gsd.das.state.oh.us/dirchair/dcagdocs/diSclaim2.html
Cincinnati, City of
http://www.rcc.org/city/puveninf.html
Akron, City of
http://www.ci.akron.oh.us/Purchasing/forms/VendorApplication.pdf
Cuyahoga County
http://www.cuyahoga.oh.us/opd/services.htm#Vendor%20Registration
Franklin County
http://www.co.franklin.oh.us/bidops/vendors_online.htm
Oregon
http://tpps.das.state.or.us/purchasing/vendor_reg.html
Portland, City of
http://216.205.125.244/vendor/vendorEform.asp
Pennsylvania
http://www.dgs.state.pa.us/comod/howtodobus.asp#VENDOR%20REGISTRATION
Philadelphia, City of
http://apps.phila.gov/frontpage/forms/procforms/BIDLISTA.PDF
Pittsburgh, City of
http://www.city.pittsburgh.pa.us/gs/html/bidders_application.html
Allegheny County
http://www.bidnet1.com/scripts/swpa/public/info/regoptions.asp
Rhode Island
http://www.purchasing.state.ri.us/register.htm
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South Carolina
http://www.state.sc.us/mmo/vendor/vndrmenu.htm
South Dakota
http://www.state.sd.us/boa/purchasing/venreg/venregs.htm
Tennessee
http://ndweb.state.tn.us/cgi-bin/nd_CGI_50/baVaRS/PgSSL
Memphis, City of
http://www.ci.memphis.tn.us/pdf_forms/biddersAppRequest.pdf
Texas
https://basec.sicomm.net/register/
Austin, City of
https://waller.ci.austin.tx.us/austin/main.cfm
Houston, City of
http://www.faspd.ci.houston.tx.us/vendor_registration.htm
San Antonio, City of
http://www.sanantonio.gov/pgs/procure/biddersapp.pdf
Bexar County
http://www.bidnet1.com/scripts/bexar/public/info/regoptions.asp
Utah
http://www.purchasing.state.ut.us/subscriptions/default.asp
Salt Lake City, City of
http://www.ci.slc.ut.us/purchasing/download.htm
Salt Lake County
http://www.demandstar.com/supplier/
Virginia
http://159.169.222.200/dps/EVAfaq/SupplierToolkit/index.htm
Fairfax County
http://www.co.fairfax.va.us/dpsm/selling.htm
Vermont
https://www.vermontbusinessregistry.com/YourReg.asp
Washington
http://www.ga.wa.gov/pca/forms/vendreg.doc
Wisconsin
http://vendornet.state.wi.us/vendornet/aspbin/reginfo.asp
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Milwaukee, City of
http://www.ci.mil.wi.us/citygov/doa/sp/forms.shtml
Milwaukee County
http://204.194.250.11/Service/serviceDetail.asp?id=1201
Wyoming
http://ai.state.wy.us/generalservices/bid.pdf
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Appendix B: Federal Bid Board Pages on the Internet
Defense Logistics Agency
Logistics Operations
Defense Automation and Production Service
http://www.eps.gov/spg/DLA/J3/DAPS/postdate_1.html
Department of Agriculture
Agricultural Marketing Service
Other Red Meats
http://151.121.3.150/lsg/cp/otherredmeat/orm_purchaseinfo.htm
Fruit
http://www.ams.usda.gov/fv/cp/fruit/fruit_offers.htm#Canned
Juice
http://www.ams.usda.gov/fv/cp/juice/juice_offers.htm
Nuts and Beans
http://www.ams.usda.gov/fv/cp/nut_beans/nb_offers.htm
Vegetables
http://www.ams.usda.gov/fv/cp/veg/veg_offers.htm
Beef
http://www.ams.usda.gov/lsg/cp/beef/beef_purchaseinfo.htm
Fish
http://www.ams.usda.gov/lsg/cp/fish/fish_purchaseinfo.htm
Pork
http://www.ams.usda.gov/lsg/cp/pork/pork_purchaseinfo.htm
Poultry Program
http://www.ams.usda.gov/poultry/cp/chicken/chkn_offers.htm
Agricultural Research Service
Beltsville Area, FMOD
http://www.barc.usda.gov/fmod/contract/solicit.htm
South Atlantic Area Office/Athens, GA
http://www.ars-grin.gov/ars/SoAtlantic/ao/proc/solmain.htm
Farm Service Agency
Aerial Photography Field Office
http://www.apfo.usda.gov/contractservices.html
A - Kansas City Commodity Office, Kansas City, MO
http://www.fsa.usda.gov/daco/Announcement/Domestic/domesticannon.htm
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Food and Safety Inspection Service
Food and Safety Inspection Service
http://www.fsis.usda.gov/OM/proc/solicitations.htm
Food and Nutrition Service
Contract Management Branch
http://www.fns.usda.gov/asd/SOLICITATION/sol.htm
Forest Service
R-1 Clearwater National Forest
http://www.fs.fed.us/r1/clearwater/Admin/Contracting/rfp_list.htm
R-1 Idaho Panhandle National Forest
http://www.fs.fed.us/ipnf/admin/landuse/aqm/announcement.html
R-10 Alaska Region
http://www.fs.fed.us/r10/solicitations/index.html
R-10 Tongass National Forest
http://www.fs.fed.us/r10/tongass/work_with_us/contracting/solicitations.htm
R-5 Northern California Province
http://www.r5.fs.fed.us/cgi-bin/contracting/np/currentnp.cgi
R-5 Southern Sierra Province, Stanislaus N.F.
http://www.r5.fs.fed.us/cgi-bin/contracting/ssp/currentnp.cgi
R-6 Blue Mountain ZAP
http://www.fs.fed.us/r6/uma/contract/bidopport.htm
R-6 Central Oregon Procurement
http://www.fs.fed.us/r6/centraloregon/purchase/ochoco/solicitations.html
R-6 Northwest Oregon Contracting Area (NOCA)
http://www.fs.fed.us/r6/mthood/noca/00_advertised.html.htm
R-4 SW Idaho/Nevada Acquisition Office, Boise, ID
http://www.fs.fed.us/r4/boise/business/contracting/solicitations.htm
R-5 IBET Province, Eldorado N.F., Placerville, CA
http://www.r5.fs.fed.us/cgi-bin/contracting/ibet/currentnp.cgi
R-5 IBET Province, Tahoe N.F., Nevada City, CA
http://www.r5.fs.fed.us/cgi-bin/contracting/ibet/currentnp.cgi
R-5 Sierra Cascade Province, Lassen and Modoc NF, Susanville, CA
http://www.clarity.nccn.net/usda/scp/currentops.php3#LASSEN
R-5 Sierra Cascade Province, Plumas N.F., Quincy, CA
http://www.clarity.nccn.net/usda/scp/currentops.php3#PLUMAS
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R-6 Eastern Washington ZAP/Okanogan NF, Okanogan, WA
http://www.fs.fed.us/r6/oka/bid_board.htm
R-6 Western Washington Acquisition Area, Mountlake Terrace, WA
http://209.64.181.208/100/default.asp?t=3
R-8 Chattahoochee and Oconee National Forests, Gainesville, GA
http://www.fs.fed.us/conf/contracts/contracts.htm
Washington Office, Washington, DC
http://www.fs.fed.us/business/contract_opportunities/sol.html
R-6 Central Oregon Procurement, Ochoco NF, Prineville, OR
http://www.fs.fed.us/r6/centraloregon/purchase/ochoco/solicitations.html
R-6 Eastern Washington ZAP/Wenatchee NF, Wenatchee, WA
http://www.fs.fed.us./r6/wenatchee/contract/bid.htm
Natural Resources Conservation Service
Information Technology Acquisition Team
http://www.info.usda.gov/nrcs/mgmt/itat/solicit/solicit.htm
Louisiana State Office
http://www.la.nrcs.usda.gov/Administrative%20Services/Contracting/advertis.htm
Missouri State Office
http://www.mo.nrcs.usda.gov/SolicitList.asp
Department of Commerce
National Oceanic and Atmospheric Administration
Eastern Administrative Support Center
http://www.easc.noaa.gov/proc/solicit.htm
Western Administrative Support Center
http://www.wasc.noaa.gov/services/amd/indxsol.htm
Gulf of Mexico Fishery Management Council
http://www.gulfcouncil.org/index.htm#REQUEST%20FOR%20PROPOSAL
Office of the Secretary
Commerce Acquisition Solutions, Commerce Information Technology Solutions
http://commitsbop.osec.doc.gov/busopor.nsf/Solicitation+By+Date?OpenView
Patent and Trademark Office
Office of Procurement
http://www.uspto.gov/web/offices/ac/comp/proc/projanno.htm
US Census Bureau
US Census Bureau
147
http://www.census.gov/procur/www/opportunities.html
Department of Energy
Chicago Operations Office
Office of Acquisition and Assistance
http://www.ch.doe.gov/insidech/org_offices/acqandassist/open.htm
Albuquerque Operations Office
Albuquerque Operations Office
http://www.doeal.gov/cpd/readroom.htm
Golden Field Office
Golden Field Office
http://www.golden.doe.gov/business%20opportunities/solicitations.html
Nevada Operations Office
Nevada Operations Office
http://www.nv.doe.gov/business/procurement/solicit.htm
Ohio Field Office
Office of Acquisition Management
http://www.ohio.doe.gov/dob1.html
Oak Ridge National Laboratory - UT Battelle LLC (DOE Contractor)
Oak Ridge National Laboratory
http://www.oakridge.doe.gov/Procurement/cur_sol.html
Oakland Operations Office
Oakland Operations Office
http://www.oak.doe.gov/procure/rfp_pg.html
National Energy Technology Center
National Energy Technology Center
http://www.fetc.doe.gov/business/solicit/index.html
Southwestern Power Administration
Southwestern Power Administration
http://www.swpa.gov/acq_norfq.htm
Western Area Power Administration
http://www.wapa.gov/cso/procurmt/solicit.htm
Office of Energy Efficiency and Renewable Energy
Office of Industrial Technologies
http://www.oit.doe.gov/working/active.shtml?type=active
Office of Power Technologies
http://www.eren.doe.gov/power/cur_opt_solicitations.html
148
Seattle Region Office
http://www.eren.doe.gov/sro/solicitations.html
Denver Regional Office
http://www.eren.doe.gov/dro/news/solict.htm
Atlanta Regional Office
http://www.eren.doe.gov/aro/financial_opps.html
Princeton Plasma Physics Laboratory
Princeton Plasma Physics Laboratory
http://oorm-1.pppl.gov/public/procurement/solicitations/solicitations.htm
Fluor Fernald, Inc. (DOE Contractor)
Fluor Fernald, Inc. (DOE Contractor)
http://www.fernald.gov/BusinessOpps/Acquisitions/cs.htm
Fernald Environmental Management Project
http://www.fernald.gov/BusinessOpps/Acquisitions/cs.htm
Hanford
Richland Operations Office
http://www.hanford.gov/procure/cstruct/request.html
Pacific Northwest National Laboratory
http://www.pnl.gov/contracts/solicitations.html
Office of River Protection
http://www.hanford.gov/orp/procure/solicitations-open.html
Bechtel Nevada Corp (DOE Contractor)
Bechtel Nevada Corp (DOE Contractor)
http://www.bechtelnevada.com/PPMgt/PDFs/rfp.pdf
Bechtel Nevada
http://www.bechtelnevada.com/PPMgt/PDFs/rfp.pdf
Idaho Nat'l Engineering and Environmental Laboratory (DOE Contract
Idaho Nat'l Engineering and Environmental Laboratory (DOE Contractor)
http://www.inel.gov/procurement/solicitations.asp
Pacific Northwest National Laboratory - Battelle (DOE Contractor)
Pacific Northwest National Laboratory - Battelle (DOE Contractor)
Pacific Northwest National Laboratory
Department of Health and Human Services
Agency for Healthcare Research and Quality
149
http://www.ahrq.gov/fund/contraix.htm
Center for Disease Control and Prevention
Center for Disease Control and Prevention
http://www.cdc.gov/od/pgo/rfp/rfpmain.htm
Centers for Medicare & Medicaid Services
Centers for Medicare & Medicaid Services
http://www.hcfa.gov/contracts/default.htm#sol
Acquisition and Grants Group
http://www.hcfa.gov/contracts/#sol
Health Resources and Services Administration
Health Resources and Services Administration
http://www.hrsa.gov/CONTRACT.HTM
Indian Health Service
Navajo Area Office
http://www.niddk.nih.gov/fund/divisions/DEA/AMB/AMBRFP.htm
Oklahoma City Area Office
http://amb.nci.nih.gov/appl/rfp/rfps_published.jsp
Phoenix Area Office
http://www.nhlbi.nih.gov/funding/inits/index.htm
Portland Area Office
http://www.niams.nih.gov/rtac/funding/grants/rfp/wwwrfp.htm
California Area Office
http://www.nichd.nih.gov/funding/funding-opps_rfp.htm
National Institutes of Health
National Institute on Alcohol Abuse and Alcoholism
http://www.niaaa.nih.gov/extramural/extramural.htm
National Institute on Drug Abuse
http://www.nida.nih.gov/RFP/RFPList.html
National Institute on Mental Health
http://www.nimh.nih.gov/grants/indexcon.cfm#RequestforProposal
National Institutes of Allergy and Infectious Diseases
http://www.niaid.nih.gov/cgi-shl/cmb/rfps.cfm
National Library of Medicine
http://www.nlm.nih.gov/oam/oam.html
150
Office of Logistics and Acquisition Operations
http://www.nih.gov/od/olao/oa/contracts/req_for_proposals.html
Division of Research Contracts
http://ocm.od.nih.gov/drc/rfp.htm
National Institute of Neurological Disorders and Stroke
http://www.ninds.nih.gov/funding/currentrfps.htm
Construction Contracts Branch
http://ccb.od.nih.gov/scripts/notices_index.asp
National Cancer Institute, Research Contracts Br., Rockville, MD
http://amb.nci.nih.gov/appl/rfp/published_rfps.jsp
National Heart, Lung, and Blood Institute, Bethesda, MD
http://www.nhlbi.nih.gov/funding/inits/index.htm#rfp
National Institute of Arthritis and Musculoskeletal and Skin Diseases, Bethesda, MD
http://www.niams.nih.gov/rtac/funding/grants/rfp/wwwrfp.htm
National Institute of Child Health and Human Development, Bethesda, MD
http://www.nichd.nih.gov/funding/funding-opps_rfp.htm
National Institute of Allergy & Infectious Diseases/AMOB, Bethesda, MD
http://www.niaid.nih.gov/cgi-shl/cmb/rfps.cfm
Office of Grants and Acquisition Management
http://www.hhs.gov/ogam/oam/opportunities/opportun.html
Office of Acquisition Management, Contract Operations
http://www.hhs.gov/ogam/oam/opportunities/opportun.html
Substance Abuse and Mental Health Services Administration
Substance Abuse and Mental Health Services Administration
http://www.samhsa.gov/contracts/contracts.html
Department of Housing and Urban Development
Office of the Chief Procurement Officer
http://www.hud.gov/offices/cpo/contract.cfm
Department of Justice
Drug Enforcement Administration
http://128.121.209.186/rfps/rfplist.asp
Federal Bureau of Investigation
151
Federal Bureau of Investigation
http://www.eps.gov/spg/DOJ/FBI/postdate_1.html
Property Procurement and Management Section
http://www.eps.gov/spg/DOJ/FBI/PPMS/postdate_1.html
Department of Labor
Employment Training Administration
Employment Training Administration
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#4denver
Job Corps Atlanta Region
Job Corps Boston Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#1boston
Job Corps Chicago Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#5kansascity
Job Corps Dallas Region
Job Corps Denver Region
Job Corps Kansas City Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#5kansascity
Job Corps New York Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#1newyork
Job Corps Philadelphia Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#2philadelphia
Job Corps San Francisco Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#6sanfransisco
Job Corps Seattle Region
http://wdsc.doleta.gov/jobcorps/regionalcontact.htm#5seattle
Office of the Inspector General
Office of the Inspector General
http://www.oig.dol.gov/public/rfps/main.htm
Department of the Air Force
Air Combat Command
Air Combat Command
http://www2.acc.af.mil/lg/cons/business.htm
152
20 CONS
http://www.shaw.af.mil/20fw/20log/Contracting/Other%20Business%20Opportunities.htm
509 CONS
http://www.whiteman.af.mil/509cons/download.html
99 CONS
http://www.nellis.af.mil/units/99cons/default.htm
Air Force Materiel Command
AEDC - Arnold Engineering Development Center
http://pixs.wpafb.af.mil/arnold.asp
OO-ALC
http://contracting.hill.af.mil/html/SourceSought/SShp.htm
WR-ALC
http://pkec.robins.af.mil/pkobiz.htm
Pacific Air Forces
15 CONS
http://www2.hickam.af.mil/cons/contracts.html
Department of the Army
U.S. Army Space and Missile Defense Command
Contracting and Acquisition Management Office
http://www.smdc.army.mil/Contracts/RFP/RFP.HTML
U.S. Army Test & Evaluation Command
U.S. Army Robert Morris Acquisition Center, Natick
https://www3.natick.army.mil/solicit2/VendList.asp
U.S. Army Training and Doctrine Command
Directorate of Peninsula Contracting
http://www.eustis.army.mil/dpc/solicita.htm
U.S. Army Combined Arms Support Command and Fort Lee
http://www.lee.army.mil/doc/RFQ/RFQ%20MAIN%20PAGE/RFQ.htm
U.S. Army Field Artillery Center and Fort Sill
http://sill-www.army.mil/ebs/asp/advertisedsolicitations.asp
U.S. Army Infantry Center and Fort Benning
http://www-benning.army.mil/DOC/Solicitations.htm
U.S. Army Intelligence Center and Fort Huachuca
http://huachuca-www.army.mil/doc/solicit.htm
U.S. Army Signal Center and Fort Gordon
http://www.gordon.army.mil/doc/solicit.htm
153
TRADOC Acquisition Center, Fort Eustis, VA
http://www-tradoc.army.mil/hhc/acq/tradoc_acquisition_bulletins.htm
U.S. Army Combined Arms Center and Fort Leavenworth, Fort Leavenworth, KS
http://leav-www.army.mil/doc/solic.htm
Directorate of Contracting (DOC), Fort Rucker, AL
http://155.147.98.10/doc/CURRENT%20REQUIREMENTS.htm
Defense Supply Service-Washington
Defense Supply Service-Washington
http://dccw.hqda.pentagon.mil/services/RFP1.asp
Defense Supply Service - Washington
http://dccw.hqda.pentagon.mil/services/RFP1.asp
Military Traffic Management Command
Military Traffic Management Command
http://www.mtmc.gov/frontDoor/0,1383,S%253D5%2526B%253D30,00.html
National Guard Bureau
127th WG/LGC, OPERATIONAL CONTRACTING DIVISION
http://www.selfridgecontracting.com/Ebs/AdvertisedSolicitations.asp
U. S. Army Materiel Command
TACOM - Anniston, Directorate of Contracting
http://www.anadprocnet.army.mil/Solicit.asp?Type=Normal
TACOM - Picatinny, Center for Contracting and Commerce
http://procnet.pica.army.mil/dbi/DynCBD/solicitation.cfm
US Army Robert Morris Acquisition Center, Natick Contracting Div.(R&D and BaseOPS)
US Army Robert Morris Acquisition Center, Natick Contracting Division
United States Military Academy, Directorate of Contracting
http://www.usma.army.mil/doc/solic.htm
TACOM - Warren
http://contracting.tacom.army.mil/sol.htm
U.S. Army Contracting Command-Europe
RCO Vicenza, APO, AE
http://acquisition.army.mil/amcdss/owa/refdb.sol_search_query?inpostedby=DAJA01
U.S. Army Corps of Engineers
Transatlantic Programs Center
154
http://www.tac.usace.army.mil/contracts/activsol.html
U.S. Army Corps Of Engineers, Los Angeles
https://ebs.spl.usace.army.mil/ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, Albuquerque
http://www.spa.usace.army.mil/ebs/advertisedsolicitations.asp
U.S. Army Engineer District, Honolulu
https://ebs.poh.usace.army.mil/ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, Kansas City
http://nwk-ebs.nwk.usace.army.mil/ebs/advertisedsolicitations.asp
U.S. Army Engineer District, Little Rock
https://ebs.swl.usace.army.mil/AdvertisedSolicitations.asp
U.S. Army Engineer District, Louisville
http://www.lrl.usace.army.mil/ebs/
U.S. Army Engineer District, Nashville
http://www.orn.usace.army.mil/ebs/ASP/AdvertisedSolicitations.asp
U.S. Army Engineer District, Omaha
http://155.77.110.11/EBS/AdvertisedSolicitations.asp
U.S. Army Engineer District, Pittsburgh
http://www.lrp.usace.army.mil/bus/advert~1.htm
U.S. Army Engineer District, Portland
https://www.nwp.usace.army.mil/ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, Rock Island
http://www.mvr.usace.army.mil/Ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, Seattle
http://www.nws.usace.army.mil/ct/ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, St. Paul
https://mvpwww.mvp.usace.army.mil/ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, St. Louis
http://mvs-www.mvs.usace.army.mil/ebs/AdvertisedSolicitations.asp
U.S. Army Engineer District, Walla Walla
http://www.nww.usace.army.mil/ebs/AdvertisedSolicitations.asp
U. S. Army Engineer District, New England, Concord, MA
http://wwwnewengland.nae.usace.army.mil/ebs/asp/advertisedsolicitations.asp
155
US Army Engineer District, Philadelphia, Philadelphia, PA
https://ebs.nap.usace.army.mil/AdvertisedSolicitations.asp
US Army Corp of Engineers, Charleston, Charleston, SC
http://ebs.sac.usace.army.mil/ebs/advertisedsolicitations.asp
US Army Corps of Engineer, Detroit, Detroit, MI
http://contractsweb.lre.usace.army.mil/EBS/ASP/AdvertisedSolicitations.asp
U.S. Army Engineer District, Baltimore, Baltimore, MD
http://ebs.nab.usace.army.mil/AdvertisedSolicitations.asp
U.S. Army Engineer District, New York, New York, NY
http://nanebs.nan.usace.army.mil/advertisedsolicitations.asp
U.S. Army Corps of Engineers, Far East District
http://144.3.144.57/ct/biz.html
U.S. Army Engineer District, Savannah, Savannah, GA
http://ebs.sas.usace.army.mil/AdvertisedSolicitations.asp
U.S. Army Engineer District, Wilmington, Wilmington, NC
http://www.saw.usace.army.mil/domino/CESAW.nsf/504ca249c786e20f85256284006da7ab/3a4e9a18067da3db852565130047d176?Op
enDocument
U.S. Army Engineer District, San Francisco, San Francisco, CA
http://helium.spk.usace.army.mil/SFEbs/AdvertisedSolicitations.asp
U.S. Army Forces Command
Army Atlanta Contracting Center, HQ, U.S. Army Forces Command
http://www.forscom.army.mil/aacc/CurrentOps/default.htm#Solicitations
Directorate of Contracting, Fort Campbell
http://150.152.51.5/solit01.htm
Directorate of Contracting, Fort Dix
http://www.dix.army.mil/DOC/doca/newbiz10/contractingdiv/supply.htm#Solicitations
Directorate of Contracting, Fort Drum
http://www.drum.army.mil/garrison/director/SPCL/dircon/const.htm
Directorate of Contracting, Fort Lewis
http://www.lewis.army.mil/doc/SOLIC.htm
Directorate of Contracting, Fort McCoy
http://www.mccoy.army.mil/Garrison/DBS/DOC/Solicitations/index.asp
Directorate of Contracting, Fort Polk
http://www.jrtc-polk.army.mil/doc/Sol%2017%20Dec.htm
156
Directorate of Contracting, Fort Riley
http://www.riley.army.mil/docbids/quotations.htm
Directorate of Contracting, Fort Stewart
http://www.stewart.army.mil/doc/cur-dpw.htm
Installation Business Office, Fort Bragg Contracting
http://www.bragg.army.mil/www-doc/Contractors/SOLICIT.HTM
NTC, Acquisition Command, Fort Irwin
http://144.147.50.3/ac/Current_Solicitations.htm
U.S Army Medical Command
U.S. Army Medical Command, HCAA, Western Regional Contracting Office
http://www.mamc.amedd.army.mil/wrco/new_solicitations_page_1.htm
Department of the Interior
Bureau of Indian Affairs
Bureau of Indian Affairs
http://www.eps.gov/spg/DOI/BIA/postdate_1.html
Bureau of Land Management
National Business Center
http://www.den.nbc.gov/D2900/ACQ/opportun.htm
U.S. Geological Survey
US Geological Survey
http://www.eps.gov/spg/DOI/USGS/USGS/postdate_1.html
Department of the Navy
Bureau of Medicine and Surgery
Naval Medical Logistics Command
http://www-nmlc.med.navy.mil/Code02/rfp.asp
Naval Air Systems Command
http://www.navair.navy.mil/business/ecommerce/index.cfm
NAVAIR HQ
http://www.navair.navy.mil/business/ecommerce/synopndx.cfm
Naval Air Warfare Center Training Systems Division
http://www.ntsc.navy.mil/EBusiness/BusOps/Acquisitions/Index.cfm?client=NAWCTSD
Naval Facilities Engineering Command
Engineering Field Division, Atlantic, ROICC Cherry Point
http://www.efdlant.navfac.navy.mil/lantops_05/CHPT/Main/bid.htm
Engineering Field Division, Pacific, OICC Atsugi
http://www.pwcyoko.navy.mil/OICC/ESOL/ebs/AdvertisedSolicitations.cfm
157
Engineering Field Division, Pacific, OICC Far East
http://www.pwcyoko.navy.mil/OICC/ESOL/ebs/AdvertisedSolicitationsYK.cfm
Engineering Field Division, Pacific, OICC Iwakuni
http://www.pwcyoko.navy.mil/OICC/ESOL/ebs/AdvertisedSolicitationsIK.cfm
Engineering Field Division, Pacific, OICC Okinawa
http://www.pwcyoko.navy.mil/OICC/ESOL/ebs/AdvertisedSolicitationsOK.cfm
Engineering Field Division, Pacific, OICC Sasebo
http://www.pwcyoko.navy.mil/OICC/ESOL/ebs/AdvertisedSolicitationsSS.cfm
Naval Sea Systems Command
NSWC Carderock Division
http://www.dt.navy.mil/acquisition/acq/sol/sol.html
NSWC Crane Division
http://www.crane.navy.mil/supply/synopcom.htm
NSWC Dahlgren Division
http://www.nswc.navy.mil/supply/sources.htm
NSWC Indian Head Division
http://www.ih.navy.mil/contracts/baas.htm
NUWC Division Newport
http://www.npt.nuwc.navy.mil/contract/solicit/open.asp
SUPSHIP Portsmouth
http://po7.repair.navy.mil/db-cgi/cgiwrap/solicit/synopsis.pl
Naval Supply Systems Command
FISC Puget Sound
FISC San Diego
Fleet and Industrial Supply Center Jacksonville
http://www.jax.fisc.navy.mil/Services/Contracting/index.htm
NAVICP-Mechanicsburg
http://www.navicp.navy.mil/02/opportun.htm
NAVICP-Philadelphia
http://www.navicp.navy.mil/02/opportun.htm
NAVOCEANO
http://www.navo.navy.mil/contracts/solicitations_table.htm
158
Office of Naval Research
Office of Naval Research
http://www.onr.navy.mil/02/rfps.htm
Naval Research Laboratory
http://heron.nrl.navy.mil/contracts/rfplist.htm
ONR
http://www.onr.navy.mil/02/rfps.htm
Space and Naval Warfare Systems Command
SPAWAR HQ
https://e-commerce.spawar.navy.mil/command/02/acq/navbusopor.nsf/HQ%20Open%20Solicitations?OpenView
SPAWAR Systems Center Charleston
https://e-commerce.spawar.navy.mil/command/02/acq/navbusopor.nsf/SSC-C%20Open%20Solicitations?OpenView
SPAWAR Systems Center San Diego
http://www.spawar.navy.mil/contract/rfq/bin/
United States Marine Corps
Marine Corps Base Camp Pendleton - RCO
http://www.cpp.usmc.mil/contracts/open.html
Marine Corps Systems Command
http://www.marcorsyscom.usmc.mil/mcscctq/Oppor.htm
Military Sealift Command
http://procurement.msc.navy.mil/N10Web/bidder/bidder_module.htm?option=RFP%2FRFQ+Search
MSC HQ - Washington
http://procurement.msc.navy.mil/N10Web/bidder/bidder_module.htm?option=RFP%2FRFQ+Search
Department of the Treasury
Federal Law Enforcement Training Center
Procurement Division
http://63.117.243.216/pro/pro_home.htm
Financial Management Service
Financial Management Service
http://www.fms.treas.gov/procure/index.html#solicit
Internal Revenue Service
Internal Revenue Service
http://www.procurement.irs.treas.gov/opportun.htm
Department of Transportation
Federal Aviation Administration
159
http://www.asu.faa.gov/faaco/Faindex.cfm
Alaska Region
http://www.alaska.faa.gov/business/anounc4.htm
Central Region
http://www.faa.gov/cen/02_3_3.htm
Eastern Region
http://www.aea200.ea.faa.gov/LOGISTICS/conopp.htm
Western-Pacific Region
http://www.awp.faa.gov/feedback/cont_lst2.cfm
Federal Highway Administration
http://www.fhwa.dot.gov/aaa/cursolic.htm
Central Federal Lands Highway Division
http://www.cflhd.gov/Edi/pna/currentsol.htm
Western Federal Lands Highway Division
http://www.wfl.fha.dot.gov/edi/projad.htm
Eastern Federal Lands Highway Division
http://www.efl.fhwa.dot.gov/bsp/current/current.htm
Research and Special Programs Administration
Research and Special Programs Administration HQ
http://www.rspa.dot.gov/contracts.html
Volpe National Transportation Systems Center
http://www.volpe.dot.gov/procure/current.html
Department of Veterans' Affairs
West Haven VAMC
West Haven VAMC
http://www.va.gov/oa&mm/busopp/sols.htm
Albany VAMC
Albany VAMC
Atlanta VAMC
Atlanta VAMC
Department of Veterans Affairs Medical Center
160
Augusta VAMC
Augusta VAMC
Battle Creek VAMC
Battle Creek VAMC
Bay Pines VAMC
Bay Pines VAMC
Birmingham VAMC
Birmingham VAMC
Bronx VANAP
Bronx VANAP
Department of Veterans Affairs
Coatesville VAMC
Coatesville VAMC
Detroit VAMC
Detroit VAMC
Jackson VAMC
Jackson VAMC
161
G.V. (Sonny) Montgomery Department of Veterans Affairs Medical Center
Martinsburg VAMC
Martinsburg VAMC
Memphis VAMC
Memphis VAMC
Miami VAMC
Miami VAMC
Minneapolis VAMC
Minneapolis VAMC
Mountain Home VAMC
Mountain Home VAMC
Portland VAMC
Portland VAMC
Salem VAMC
Salem VAMC
162
Sioux Falls VAMC
Sioux Falls VAMC
VA Central Texas Health Care System
VA Central Texas Health Care System
VA Connecticut Health Care System
VA Connecticut Health Care System
Department of Veterans Affairs Connecticut Health Care System
VA Great Lakes Healthcare System
VA Great Lakes Healthcare System
Department of Veterans Affairs Great Lakes Healthcare System
VA Heartland Network
VA Heartland Network
Department of Veterans Affairs Heartland Network
VA National Acquisition Center
VA National Acquisition Center
Department of Veterans Affairs National Acquisition Center
VA No. Arizona Health Care System
VA No. Arizona Health Care System
Department of Veterans Affairs No. Arizona Health Care System
VA No. Florida/So. Georgia Healthcare System
163
VA No. Florida/So. Georgia Healthcare System
Department of Veterans Affairs No. Florida/So. Georgia Healthcare System
VA No. Texas Health Care System
VA No. Texas Health Care System
VA Northern California Health Care System
VA Northern California Health Care System
Department of Veterans Affairs No. California Health Care System
VA Northern Indiana Health Care System
VA Northern Indiana Health Care System
Department of Veterans Affairs Northern Indiana Health Care System
VA Office of Facilities Management
VA Office of Facilities Management
http://www.va.gov/facmgt/ae/contract.asp
Department of Veterans Affairs Office of Facilities Management
http://www.va.gov/facmgt/construction/frontend.asp
VA Roseburg Healthcare System
VA Roseburg Healthcare System
Department of Veterans Affairs Roseburg Healthcare System
VA So. Arizona Health Care System
VA So. Arizona Health Care System
Department of Veterans Affairs Southern Arizona Health Care System, Tucson, AZ
Environmental Protection Agency
http://www.epa.gov/oam/solicit/index.htm
164
EPA/Headquarters
http://www.epa.gov/oam/hpod/ - Current Procurements
EPA/Ohio
http://www.epa.gov/oamcinc1/rfpcover.htm
Region I
http://www.epa.gov/oam/regions/
Region II
Region III, Contracts Branch (3PM10)
Region IV
Region IX
Region V, Acquisition and Assistance Section (MMC-10J)
http://www.epa.gov/region5/acquisition/index.htm
Region VI
Region VII
Region VIII, 8TMS-G
Federal Emergency Management Agency
Office of Financial Management
http://www.fema.gov/ofm/bidinfo.htm
Acquisition Operations and Electronic Commerce Center (FCS)
http://www.access.gpo.gov/procurement/bids/synopsis.shtml
Central Office
http://www.access.gpo.gov/procurement/atlanta/synopsis.shtml
Atlanta Regional Procurement Office
http://www.access.gpo.gov/procurement/boston/synopsis.shtml
Government Printing Office
Printing Procurement Office
Charleston Satellite Procurement Office
165
http://www.access.gpo.gov/procurement/chicago/synopsis.shtml
Chicago Regional Procurement Office
http://www.access.gpo.gov/procurement/columbus/synopsis.shtml
Columbus Regional Procurement Office
http://www.access.gpo.gov/procurement/dallas/synopsis.shtml
Dallas Regional Procurement Office
http://www.access.gpo.gov/procurement/denver/synopsis.shtml
Denver Regional Procurement Office
http://www.access.gpo.gov/procurement/hampton/synopsis.shtml
Hampton Regional Procurement Office
http://www.access.gpo.gov/procurement/losangel/synopsis.shtml
Los Angeles Regional Procurement Office
http://www.access.gpo.gov/procurement/neworleans/synopsis.shtml
New Orleans Satellite Procurement Office
http://www.access.gpo.gov/procurement/newyork/synopsis.shtml
New York Regional Procurement Office
http://www.access.gpo.gov/procurement/oklahoma/synopsis.shtml
Oklahoma City Satellite Procurement Office
http://www.access.gpo.gov/procurement/philadelphia/synopsis.shtml
Philadelphia Regional Procurement Office
http://www.access.gpo.gov/procurement/pittsburgh/synopsis.shtml
Pittsburgh Satellite Procurement Office
http://www.access.gpo.gov/procurement/rrc/synopsis.shtml
Rapid Response Center
http://www.access.gpo.gov/procurement/sanantonio/synopsis.shtml
San Antonio Satellite Procurement Office
http://www.access.gpo.gov/procurement/sandiego/synopsis.shtml
San Diego Satellite Procurement Office
http://www.access.gpo.gov/procurement/sanfran/synopsis.shtml
San Francisco Regional Procurement Office
http://www.access.gpo.gov/procurement/stlouis/synopsis.shtml
St. Louis Regional Procurement Office
http://www.access.gpo.gov/procurement/seattle/synopsis.shtml
166
National Aeronautics and Space Administration
Ames Research Center
http://procurement.nasa.gov/cgi-bin/EPS/bizops.cgi?gr=D&pin=21
Dryden Flight Research Center
George C. Marshall Space Flight Center
Glenn Research Center
Goddard Space Flight Center
Headquarters
Headquarters
Johnson Space Center
http://procurement.nasa.gov/cgi-bin/EPS/bizops.cgi?gr=D&pin=
Kennedy Space Center
Langley Research Center
Stennis Space Center
Jet Propulsion Laboratory
http://acquisition.jpl.nasa.gov/rfp/
Other Defense Agencies
Defense Advanced Research Projects Agency
Defense Advanced Research Projects Agency
http://www.darpa.mil/baa/
167
Contracts Management Office
http://www.darpa.mil/baa/
Defense Finance and Accounting Service
Defense Finance and Accounting Service
http://www.dfas.mil/aso/contract/
Defense Threat Reduction Agency
Defense Threat Reduction Agency
http://www.dtra.mil/acq/solicitations/acq_solicitations.html
Acquisition Management Directorate
http://www.dtra.mil/acq/solicitations/acq_solicitations.html
Department of Defense Education Activity
DoD Headquarters Procurement Branch
http://www.odedodea.edu/procure/vendorsection/solicitations.htm#HQ
DoDEA Education Supplies Procurement Office (DESPO)
http://www.odedodea.edu/procure/vendorsection/solicitations.htm#DESPO
DoDEA European Procurement Office (DEPO)
http://www.odedodea.edu/procure/vendorsection/solicitations.htm#DEPO
DoDEA Pacific Procurement Office (DPPO)
http://www.odedodea.edu/procure/vendorsection/solicitations.htm#DPPO
National Imagery and Mapping Agency
National Imagery and Mapping Agency
http://164.214.2.59/poc/contracts/construct.html
Office of the Secretary of Defense
Pentagon Renovation Program Office
http://renovation.pentagon.mil/businessopps.htm#contracting
TRICARE Management Activity, Aurora, CO
http://www.tricare.osd.mil/contracting/otherservices/index.cfm?fx=solicitations
U.S. Special Operations Command
(USASOC), Fort Bragg
http://www.soc.mil/dcsac/opportun.htm
Smithsonian Institution
Office of the Chief Financial Officer
Office of Contracting, Washington, DC
http://www.si.edu/oeema/ocon%20announcement.htm
Agency for International Development
Overseas Missions
West Bank, Gaza, APO, AE
168
http://www.usaid.gov/wbg/business.htm#solicitations
Bangladesh
http://www.usaid.gov/bd/Employment_Business.html#business%20opportunities
India
http://www.usaid.gov/in/aboutusaid/business.htm
El Salvador USAID-San Salvador
http://www.usaid.gov/sv/procurem/procop.htm
Washington D.C.
Office of Procurement, Washington, DC
http://www.usaid.gov/procurement_bus_opp/procurement/solicitation/solicit_rfq.html
Architect of the Capitol
AOC Procurement Division
http://www.aoc.gov/projects/projects_overview.htm
http://www.aoc.gov/projects/projects_overview.htm
Consumer Product Safety Commission
Directorate for Administration
Division of Procurement Services
http://www.cpsc.gov/businfo/contract.html
Library of Congress
Contracts Services
Contracts Services
http://lcweb.loc.gov/contracts/request.html
Contracts Section
http://lcweb.loc.gov/contracts/request.html
National Science Foundation
Division of Contracts, Policy, and Oversight
Contracts Branch
http://www.nsf.gov/home/about/contracting/
United States House of Representatives
Office of the Chief Administrative Officer
http://www.house.gov/cao-opp/currentsol.htm
169
Appendix C: Procurement Forecast Pages on the Internet
Part 1: Federal
Patent and Trademark Office
http://www.uspto.gov/web/offices/ac/comp/proc/ira.htm
http://www.uspto.gov/web/offices/ac/comp/proc/ssa.htm
Department of Education
ED Forecast Opportunities
http://www.ed.gov/offices/OCFO/contracts/forecast.html
http://www.oit.doe.gov/news/solicitations.shtml#future
HUD Procurement Forecast
http://www.hud.gov/offices/cpo/4cast.cfm
http://www.faa.gov/sbo/fore99.htm
Central Region
Central Region, Kansas City, MO
http://www.faa.gov/cen/033_303.htm
Eastern Region
Eastern Region, Springfield Gardens, NY
http://www.aea200.ea.faa.gov/logistics/CFORCAST.HTM
Great Lakes Region
Great Lakes Region, Des Plaines, IL
http://www.agl.faa.gov/agl50/forecast.htm
170
Western-Pacific Region, Lawndale, CA
http://www.awp.faa.gov/logistics/require.htm
Office of Acquisition Management, Washington, DC
http://www.fhwa.dot.gov/aaa/forecast.htm
Central Federal Lands Highway Division, Lakewood, CO
http://www.cflhd.gov/Edi/pna/Tent2001.htm
Eastern Federal Lands Highway Division, Sterling, VA
http://www.efl.fhwa.dot.gov/bsp/future/futureS.htm
Office of Small and Disadvantaged Business Utilization
Office of Small and Disadvantaged Business Utilization
DOT Procurement Forecast
http://osdbuweb.dot.gov/business/procurement/forecast.html
http://www.epa.gov/oam/main/forecast/
http://server-mpo.arc.nasa.gov/Services/Proc/ProcDocs/forecast.tml
http://www.dfrc.nasa.gov/Procure/forecast.html
http://genesis.gsfc.nasa.gov/gsfcfore.htm
http://ec.msfc.nasa.gov/jsc/JSCaf.htm
171
http://db-www.larc.nasa.gov/procurement/forecast.html
http://www.ssc.nasa.gov/~procure/htmls/Forecast.html
http://acquisition.jpl.nasa.gov/boo/forecast2000.htm
Alaska
http://notes3.state.ak.us/pn/pubnotic.nsf/PNByDeptAll?OpenView&Start=1&Count=100&Expand=3#3
Alabama
http://www.purchasing.state.al.us/activecontracts.html
Arizona
Pima County
http://www.co.pima.az.us/procure/estbid.htm
Hawaii
http://www.state.hi.us/dags/publicworksdiv/fut_proj.html
Maryland
Montgomery County
http://www.emontgomery.org/procurement/expected.asp
Minnesota
http://www.mmd.admin.state.mn.us/expiringcontracts.htm
Missouri
http://www.oa.state.mo.us/purch/newupbidops.htm
Nevada
http://purchasing.state.nv.us/services/udocs.htm
Tennessee
http://www.state.tn.us/generalserv/purchasing/foreacq.pdf
Texas
http://www.gsc.state.tx.us/bids/sc_adv.html
172
Appendix D: E-Marketplaces on the Internet
Part 1: Federal
FedBizOpps
http://www.fedbizopps.gov
DODBus Opps
http://www.dodbusopps.com/general/dodprocment.asp
Naval Sea Systems
Command, SeaPort
http://www.seaport.navy.mil
Navy Electronic Commerce
Online (NECO)
Idaho
https://basec.sicomm.net/
Maryland
http://www.emarylandmarketplace.com/emm/index.cfm
North Carolina
http://www.ncgov.com/eprocurement/asp/section/index.asp
Texas
http://www.marketplace.state.tx.us/
Virginia
http://www.eva.state.va.us/
173
Appendix E: Awards Pages on the Internet
Part 1: Federal (not FedBizOpps)
Broadcasting Board of Governors
Associate Director for Management
Northern Marianas Transmitting Station
Northern Marianas Transmitting Station, Saipan, MP
http://www.eps.gov/spg/BBG/ADM/MARIANAS/award_1.html
Department of Agriculture
Agricultural Marketing Service
Other Red Meats
Other Red Meats
http://151.121.3.150/lsg/cp/otherredmeat/orm_purchaseinfo.htm
Fruit
Fruit
http://www.ams.usda.gov/fv/cp/fruit/fruit_bidaward.htm
Juice
Juice
http://www.ams.usda.gov/fv/cp/juice/juice_bidaward.htm
Nuts and Beans
Nuts and Beans
http://www.ams.usda.gov/fv/cp/nut_beans/nb_bidaward.htm
Vegetables
Vegetables
http://www.ams.usda.gov/fv/cp/veg/veg_bidaward.htm
Beef
Beef
http://www.ams.usda.gov/lsg/cp/beef/beef_purchaseinfo.htm
Fish
Fish
http://www.ams.usda.gov/lsg/cp/fish/fish_purchaseinfo.htm
Pork
Pork
http://www.ams.usda.gov/lsg/cp/pork/pork_purchaseinfo.htm
Poultry Program
Poultry Program - Turkey
http://www.ams.usda.gov/poultry/cp/turkey/trky_bidaward.htm
174
Poultry Program - Eggs
http://www.ams.usda.gov/poultry/cp/egg/egg_bidaward.htm
Poultry Program - Chicken
http://www.ams.usda.gov/poultry/cp/chicken/chkn_bidaward.htm
Forest Service
http://www.fs.fed.us/r1/clearwater/Admin/Contracting/awardlis.htm
http://www.fs.fed.us/ipnf/admin/landuse/aqm/awards.html
R-10 Alaska Region
R-10 Alaska Region
http://www.fs.fed.us/r10/solicitations/recent_awards.htm
http://www.fs.fed.us/r10/tongass/work_with_us/contracting/awards01.htm
http://www.r5.fs.fed.us/cgi-bin/contracting/np/awardnp.cgi
R-5 Pacific Southwest Region
http://www.r5.fs.fed.us/cgi-bin/contracting/ssp/awardnp.cgi
R-5 Southern Sierra Province, Stanislaus N.F.
http://www.r5.fs.fed.us/cgi-bin/contracting/ssp/awardnp.cgi
http://www.fs.fed.us/r6/uma/contract/awards.htm
http://www.fs.fed.us/r6/centraloregon/purchase/ochoco/awarded.html
http://www.fs.fed.us/r6/centraloregon/purchase/deschutes/awarded.html
http://www.fs.fed.us/r6/mthood/noca/00_awards.html
175
http://www.fs.fed.us/r4/boise/business/contracting/awards.htm
R-5 IBET Province, Eldorado N.F., Placerville, CA
Awarded Contracts in the IBET Province
http://www.r5.fs.fed.us/cgi-bin/contracting/ibet/awardnp.cgi
R-5 IBET Province, Tahoe N.F., Nevada City, CA
Awarded Contracts in the IBET Province
http://www.r5.fs.fed.us/cgi-bin/contracting/ibet/awardnp.cgi
http://www.clarity.nccn.net/usda/scp/awarded.php3#MODOC
http://www.clarity.nccn.net/usda/scp/awarded.php3#LASSEN
http://www.clarity.nccn.net/usda/scp/awarded.php3#PLUMAS
http://www.fs.fed.us/r6/oka/bid_board.htm
http://209.64.181.208/advscripts/qgp_alist.asp
http://www.fs.fed.us./r6/wenatchee/contract/bid.htm
Natural Resources Conservation Service
http://www.info.usda.gov/nrcs/mgmt/itat/solicit/solicit.htm
http://www.la.nrcs.usda.gov/Administrative%20Services/Contracting/contractnot.htm
National Oceanic and Atmospheric Administration
Mountain Administrative Support Center
Mountain Administrative Support Center, Boulder, CO
http://www.masc.noaa.gov/masc/amd/bid_result.html
176
Commerce Acquisition Solutions, Commerce Information Technology Solution
Commerce Acquisition Solutions, Commerce Information Technology Solutions
http://commitsbop.osec.doc.gov/busopor.nsf/Solicitation+By+Award+Archive?OpenView
US Census Bureau
US Census Bureau
US Census Bureau
http://www.census.gov/procur/www/contrlst.html
Oak Ridge National Laboratory - UT Battelle LLC (DOE Contract
Oak Ridge National Laboratory
Oak Ridge Operations Office
http://www.oakridge.doe.gov/Procurement/recent_awards.html
http://www.wapa.gov/cso/procurmt/award.htm
Federal Energy Management Program
http://www.eren.doe.gov/femp/financing/doawards.html
http://www.eren.doe.gov/femp/financing/tsawards.html
Department of Health and Human Services
Agency for Healthcare and Research Quality
http://www.ahrq.gov/fund/contrarch.htm
National Institutes of Health
National Institutes of Allergy and Infectious Diseases
National Institutes of Allergy and Infectious Diseases, Bethesda, MD
http://www.niaid.nih.gov/contract/awards.htm
Construction Contracts Branch
Construction Contracts Branch, Bethesda, MD
http://ccb.od.nih.gov/scripts/notices_index.asp
National Institute of Allergy & Infectious Diseases/AMOB, Bethesda, MD
National Institutes of Allergy and Infectious Diseases, Bethesda, MD
http://www.niaid.nih.gov/contract/awards.htm
177
http://www.hud.gov/offices/cpo/awards.cfm
Department of Justice
Drug Enforcement Administration
http://128.121.209.186/awards.htm
Department of the Army
U.S. Army Test & Evaluation Command
U.S. Army Robert Morris Acquisition Center, Natick
U.S. Army Robert Morris Acquisition Center - Natick
https://www3.natick.army.mil/solicit2/Awd.asp
U.S. Army Training and Doctrine Command
http://www.lee.army.mil/doc/AWARDS/awards.htm
http://sill-www.army.mil/ebs/asp/AwardResults.asp
National Guard Bureau
http://www.selfridgecontracting.com/Ebs/AwardResults.asp
U. S. Army Materiel Command
http://www.anadprocnet.army.mil/ASearchArc.asp?Type=Awards
http://procnet.pica.army.mil/dbi/DynCBD/award.cfm
US Army Robert Morris Acquisition Center, Natick Contracting Div.(R&D a
U.S. Army Robert Morris Acquisition Center - Natick
https://www3.natick.army.mil/solicit2/Awd.asp
U.S. Army Corps of Engineers
https://ebs.spl.usace.army.mil/ebs/AwardResults.asp
178
http://www.spa.usace.army.mil/ebs/AwardResults.asp
https://ebs.poh.usace.army.mil/ebs/AwardResults.asp
U.S. Army Engineer District, Kansas City
U.S. Army Engineer District, Kansas
http://nwk-ebs.nwk.usace.army.mil/ebs/AwardResults.asp
https://ebs.swl.usace.army.mil/AwardResults.asp
http://www.lrl.usace.army.mil/ebs/AwardResults.asp
http://www.orn.usace.army.mil/contracting/arch-eng.html
http://www.orn.usace.army.mil/contracting/construction.html
http://www.orn.usace.army.mil/contracting/svcsupply.html
http://155.77.110.11/EBS/AwardResults.asp
http://www.lrp.usace.army.mil/bus/awardr~1.htm
https://www.nwp.usace.army.mil/ebs/AwardResults.asp
http://www.mvr.usace.army.mil/Ebs/AwardResults.asp
http://www.nws.usace.army.mil/ct/ebs/AwardResults.asp
179
https://mvpwww.mvp.usace.army.mil/ebs/AwardResults.asp
U.S. Army Engineer District, St. Louis
.S. Army Engineer District, St. Louis
http://mvs-www.mvs.usace.army.mil/ebs/AwardResults.asp
http://www.nww.usace.army.mil/ebs/AwardResults.asp
https://ebs.nap.usace.army.mil/AwardResults.asp
US Army Corp of Engineers - Alaska, Anchorage, AK
US Army Corp of Engineers - Alaska, Anchorage, AK
https://ebs.poa.usace.army.mil/AwardResults.asp
US Army Corps of Engineer, Detroit, Detroit, MI
US Army Corps of Engineer, Detroit District, Detroit, MI
http://contractsweb.lre.usace.army.mil/EBS/ASP/AwardResults.asp
http://ebs.sas.usace.army.mil/AwardResults.asp
http://helium.spk.usace.army.mil/SFEbs/AwardResults.asp
U.S. Army Forces Command
http://www.forscom.army.mil/aacc/CurrentOps/default.htm#Bids
http://150.152.51.5/FY01awds.htm
http://www.dix.army.mil/DOC/doca/newbiz10/contractingdiv/construction.htm#Pending/Recent%20Awards
http://www.dix.army.mil/DOC/doca/newbiz10/contractingdiv/supply.htm#Pending/Recent%20Awards
http://www.dix.army.mil/DOC/doca/newbiz10/contractingdiv/commercial.htm#Pending/Recent%20Awards
180
http://www.mccoy.army.mil/Garrison/DBS/DOC/Awards/index.asp
http://www.stewart.army.mil/doc/awds-dpw.htm
http://www.stewart.army.mil/doc/closed-main.htm
http://www.stewart.army.mil/doc/closed-cell.htm
http://www.stewart.army.mil/doc/awds.htm
Department of the Navy
Naval Air Warfare Center Training Systems Division
Open Acquisitions
http://www.ntsc.navy.mil/EBusiness/BusOps/Acquisitions/Index.cfm?client=NAWCTSD
Naval Sea Systems Command
NSWC Crane Division
Contract Awards
http://www.crane.navy.mil/supply/contawd.htm
NSWC Dahlgren Division
Contract Awards
http://www.nswc.navy.mil/supply/award.htm
NSWC Indian Head Division
Contract/PO Awards for the last 6 months
http://www.ih.navy.mil/contracts/contract.htm
NUWC Division Newport
Recent Contract Awards
http://www.npt.nuwc.navy.mil/contract/solicit/awards.asp?SORT=R
Naval Supply Systems Command
NAVICP-Mechanicsburg
NAVICP
http://nicppla10.icpphil.navy.mil/foresite/csf/status/main.dml
NAVICP-Philadelphia
NAVICP
http://nicppla10.icpphil.navy.mil/foresite/csf/status/main.dml
Space and Naval Warfare Systems Command
SPAWAR HQ
181
SPAWAR HQ
https://e-commerce.spawar.navy.mil/command/02/acq/navbusopor.nsf/HQ%20Awarded%20Contracts?OpenView
https://e-commerce.spawar.navy.mil/command/02/acq/navbusopor.nsf/SSC-C%20Awarded%20Contracts?OpenView
https://e-commerce.spawar.navy.mil/command/02/acq/navbusopor.nsf/SSC-SD%20Awarded%20Contracts?OpenView
http://procurement.msc.navy.mil/N10Web/bidder/bidder_award_announce.htm?sort=award_date%20D
MSC HQ - Washington
http://procurement.msc.navy.mil/N10Web/bidder/bidder_award_announce.htm?sort=award_date%20D
Department of the Treasury
Bureau of Engraving and Printing
http://www.eps.gov/spg/TREAS/BEP/award_1.html
Federal Law Enforcement Training Center
http://63.117.243.216/pro/pro_home.htm
Central Region
Central Region, Kansas City, MO
http://www.faa.gov/cen/033_302.htm
Eastern Region
Eastern Region, Springfield Gardens, NY
http://www.aea200.ea.faa.gov/logistics/AWARDS.HTM
Western-Pacific Region, Lawndale, CA
http://www.awp.faa.gov/feedback/awd_list.cfm
http://www.fhwa.dot.gov/aaa/awards.htm
182
Central Federal Lands Highway Division, Lakewood, CO
http://www.cflhd.gov/Edi/pna/award.htm
Western Federal Lands Highway Division
Western Federal Lands Highway Division, Vancouver, WA
http://www.wfl.fha.dot.gov/edi/sol_sum3.htm
Eastern Federal Lands Highway Division, Sterling, VA
http://www.efl.fhwa.dot.gov/bsp/award/award.htm
Research and Special Programs Administration
Volpe National Transportation Systems Center
Volpe National Transportation Systems Center, Cambridge, MA
http://www.volpe.dot.gov/procure/awards/awards.html
United States Coast Guard
Commanding Officer (vpl), USCG Maintenance and Logistics Command - Atlantic
Commanding Officer (vpl), USCG Maintenance and Logistics Command - Atlantic, Norfolk, VA
http://www.uscg.mil/mlclant/FDiv/SYNOPSESPAGE.HTM
http://www.epa.gov/oam/award/index.htm
EPA/Headquarters
EPA/Headquarters, Washington, DC
http://www.epa.gov/oam/hpod/#Award Notices
EPA/Ohio
EPA/Ohio
http://www.epa.gov/oamcinc1/awdcover.htm
Region V, Acquisition and Assistance Section (MMC-10J)
Region V, Acquisition and Assistance Section (MMC-10J), Chicago, IL
http://www.epa.gov/region5/acquisition/index.htm
Federal Emergency Management Agency
http://www.fema.gov/ofm/active_c.htm
183
http://nais.msfc.nasa.gov/cgi-bin/EPS/bizops.cgi?gr=A&pin=21
Headquarters
Headquarters
Headquarters
http://nais.msfc.nasa.gov/cgi-bin/EPS/bizops.cgi?gr=A
http://procurement.nasa.gov/cgi-bin/EPS/bizops.cgi?gr=A&pin=
http://procurement.nasa.gov/cgi-bin/EPS/bizops.cgi?gr=A&pin=64
Other Defense Agencies
Defense Commissary Agency
184
http://www.commissaries.com/business/contracting.cfm
Washington D.C.
http://www.usaid.gov/procurement_bus_opp/procurement/awards/
Alabama
http://www.purchasing.state.al.us/activecontracts.html
Arkansas
http://www.accessarkansas.org/dfa/purchasing/contracts.html
Arizona
http://sporas.ad.state.az.us/AZContractFrame.htm
Maricopa County
http://www.maricopa.gov/materials/Awarded_Contracts/search.asp
California
http://www.osmb.dgs.ca.gov/cscr/contract_ads/display/contract_cat_index.asp
Long Beach, City of
http://www.ci.long-beach.ca.us/purchasing/formal/results.htm
Los Angeles County
http://camisvr.co.la.ca.us/lacobids/AwardLookUp/AwardlookUpFrm.asp
Colorado
http://www.gssa.state.co.us/BdSols.nsf/Awards+and+RFI+Completions+by+Category?OpenView
Delaware
http://www.state.de.us/purchase/html/annual_contracts___disclaimer.htm
Florida
http://fcn.state.fl.us/st_contracts/
http://www.betterjax.com/rfp/awards.asp
Miami, City of
http://www.ci.miami.fl.us/Procurement/award.html
Broward County
185
http://www.co.broward.fl.us/purchasing/results/
Miami Dade County
http://www.co.miami-dade.fl.us/dpm/contracts_all_1.htm
Georgia
http://www2.state.ga.us/Departments/doas/procure/rfq/aa-award-list.html
Hawaii
http://www.state.hi.us/dags/publicworksdiv/awards.html
Iowa
http://www.state.ia.us/government/dgs/Purchase/Contracts/CONTRACT.HTM
Idaho
http://www2.state.id.us/adm/purchasing/stwrecap.htm
Illinois
http://www.purchase.state.il.us/ipb/master.nsf/frmMCViewFrameset?ReadForm&view=viewAllByTNumTitle?OpenView&start=1&c
ount=250
Indiana
http://www.indygov.org/purch/bid%20results/bid_results%20home.htm
Kansas
http://da.state.ks.us/purch/contracts/Contract.asp
Kentucky
http://www.state.ky.us/agencies/adm/mars/viewawards.htm
Louisiana
http://www.doa.state.la.us/osp/Contracts/T-Numbers.htm
Massachusetts
http://www.state.ma.us/osd/statewid/statewid.htm
Maryland
http://www.dgs.state.md.us/procure/swcont.htm
Montgomery County
http://www.emontgomery.org/procurement/public_awards.asp
Maine
http://www.state.me.us/purchase/pals.pdf
Minnesota
Hennepin County
186
http://www.co.hennepin.mn.us/purchasing/Coop/coophome.htm#Contract%20Awards/Extensions
Missouri
http://www.oa.state.mo.us/purch/cgi/bidaward2.cgi
Mississippi
http://www.mmrs.state.ms.us/Purchasing/epl_query.htm
Montana
http://www.state.mt.us/doa/ppd/awards.htm
North Carolina
http://www.doa.state.nc.us/PandC/nfshp.htm
North Dakota
http://www.state.nd.us/csd/spo/contracts/tcname.htm
Nebraska
http://www.nol.org/home/DASMAT/contract.htm
New Jersey
http://www.state.nj.us/treasury/purchase/contracts.htm
New Mexico
http://www.state.nm.us/spd/awards.html
Nevada
http://purchasing.state.nv.us/contracts/contract_search.asp
Ohio
http://www.gsd.das.state.oh.us/purch/fy02.htm
Cincinnati, City of
http://www.rcc.org/city/sec1awds.html
Cuyahoga County
http://www.cuyahoga.oh.us/opd/weeklyawards.htm
Franklin County
http://www.co.franklin.oh.us/bidops/County%20Wide%20Contract.html
Oklahoma
http://www.dcs.state.ok.us/OKDCS.NSF/htmlmedia/bid_awards.html
Oregon
Portland, City of
http://www.ci.portland.or.us/purchase/award.htm
Pennsylvania
187
http://www.dgs.state.pa.us/comod/award.pdf
Allegheny County
http://www.county.allegheny.pa.us/purchasing/contracts/index.asp
Rhode Island
http://www.purchasing.state.ri.us/bidsearch.htm
South Carolina
http://www.state.sc.us/mmo/aps2000/mmo.htm
South Dakota
http://www.state.sd.us/boa/downloads/
Tennessee
http://www.state.tn.us/generalserv/purchasing/sawd.htm
Texas
http://www.gsc.state.tx.us/cat_page/
Harris County
http://www.purchasing.co.harris.tx.us/bids/contracts.txt
Utah
http://www.purchasing.state.ut.us/bidprocessing/bidtabulations.asp
http://www.ci.slc.ut.us/purchasing/bidaward.htm
Virginia
http://159.169.222.200/dps/contracts/contracts.asp
Fairfax County
http://www.co.fairfax.va.us/dpsm/contracts.htm
Vermont
http://www.bgs.state.vt.us/PCA/PURCONT.htm
Washington
http://www.ga.wa.gov/pca/pcacont.htm
Wyoming
http://ai.state.wy.us/generalservices/contracts.asp
188
Appendix F: Federal Subcontracting Opportunity Pages on the Web
DOD Subcontracting Directory
(Prime Contractor Directory with contact information.)
DOD Comprehensive Subcontracting Plan Test Program
(Links to about 20 prime contractor subcontracting program web sites.)
Department of the Treasury, Small Business Subcontracting Opportunities
Small Business Administration, Subcontracting Opportunities Directory
Small Business Administration Sub-Net
(Subcontracting Opportunity Postings.)
FedBizOpps Awards
GovExec Magazine
(Top Federal Contractors. Top 200 and by industry and agency.)
189
Appendix G: State and Local Purchasing Thresholds and Procurement Regulations
Part 1: US States
Alaska
Bottom threshold
Top threshold
Details
Level 1:
0
$5,000
Can be purchased without competition.
Level 2:
$5,000
$25,000
Purchased through quotes or informal proposals, either written or verbal.
Level 3:
$25,000
$50,000
At least three persons must be contacted for written quotes or proposals.
Level 4:
$50,000
Above
Formal Bid Process
Top threshold
Details
Alabama
Bottom threshold
Level 1:
0
$500
Individual departments can make these purchases directly.
Level 2:
$500
$7,499.99
Must be procured through the Division of Purchasing, following informal
bid procedures.
Level 3:
$7,500
Above
Formal Bid Process
Arkansas
Bottom threshold
Top threshold
Details
Level 1:
0
5,000
Purchases can made directly by the purchasing entity
Level 2:
5,000
25,000
Informal bidding process required, 3 or more quotes sought, when deemed
practicable, verbal or written quotes accepted.
Level 3:
25,000
Above
The formal bidding process is carried out.
Arizona
Bottom threshold
Top threshold
Details
Level 1:
0
1000
A buyer selects several vendors from the vendors list and notifies them by
telephone, fax or in writing.
Level 2:
1,000
10,000
Set aside for small business, informal bid process is followed.
Level 3:
10,000
25,000
Vendors can use AZFACTS, you can have solicitations faxed to you
through AZFACTS
Level 4:
25,000
Above
Formal Bid Process
190
California
Bottom threshold
Top threshold
Details
Level 1:
0
25,000
Responsible procuring agency or department may accept bids by telephone
or written quotation.
Level 2:
25,000
Above
Department must solicit sealed bids or proposals.
Colorado
Bottom threshold
Top threshold
Details
Level 1:
1,000
less
Agencies who aren't authorized to used field purchase orders are delegated
this amount to make independent expenditures.
Level 2:
1,000
5,000
Purchases can be secured without competition from State Price
Agreements. Any purchases of more than 1,000 must be reported to the
Division of Purchasing.
Level 3:
5, 000
10,000
These purchases must be done by using documented quotations. Agencies
May choose to place these purchases on BIDS, but are not
required to do so. Purchasing offices also are allowed to solicit by other
means if the products or services are not available through BIDS.
Level 4:
25,000
75,000
These purchases require a formal bidding process. A Bidder's List is
maintained by each agency. An IFB is put out when a department knows
specifically what they need. An RFP is put out when the purchase is more
complex and the department is not certain of its specific needs.
Level 5:
75,000
more
These formal bids require the approval of the State Purchasing Director.
This process is currently being used to make sure IT commodities are
Y@K-compliant.
Connecticut
Bottom threshold
Top threshold
Details
Level 1:
Less
1000
Open-market purchases.
Level 2:
1,000
10,000
Three written quotes must be solicited.
Level 3:
10,000
Above
Formal Sealed Competitive process.
Delaware
Bottom threshold
Top threshold
Details
Level 1:
0
10,000
Open market purchase
Level 2:
10,000
25,000
Agencies must solicit three competitive written quotations from three
sources.
Level 3:
25,000
Above
Requires a formal sealed bid advertised in a newspaper of general
circulation.
191
Florida
Bottom threshold
Top threshold
Details
Level 1:
0
2,500
Purchases with value below $2,500 are made from vendors who sell
the item at a reasonable price and with an appropriate quality level using
good purchasing practices. It is recommended that agencies use the state
VISA purchasing card for all procurements, especially purchases $2,500 or
less. These purchasing practices may include but are not limited to verbal
quotations or written records of telephone quotations.
Level 2:
2,500
14,999
Level 3:
15,000
24,999
Purchases will be made with two or more written quotes whenever
practical. Should verbal quotations be received, name and address of
company and amount quoted shall be part of written documentation.
Purchases shall be carried out using written quotations, written records of
telephone quotations, or informal bids to be opened upon receipt. If the
agency determines that a commodity/contractual service is available only
from a single source or that conditions warrant negotiation on the best
terms and conditions, the agency may proceed with the procurement. The
agency shall document the conditions and circumstances used to determine
the procurement method.
Level 4:
25,000
Above
Official solicitations are advertised on-line in the Vendor Bid System.
All state agencies must comply with this requirement. Advertisements for
solicitations appear no less than 10 calendar days prior to the opening. In
addition, these legal notices may appear in other media sources selected by
State Purchasing and state agencies, such as the Florida Administrative
Weekly, trade journals, local newspapers, and minority newspapers.
Responses are due at a specified time and place and the response opening is
public.
Georgia
Bottom threshold
Top threshold
Details
Level 1:
0
2,500
May be made without competitive bidding. When practicable, however,
more than one quotation should be obtained.
Level 2:
2,500
100,000
Level 3:
100,000
Above
Made by solicitation of informal competitive written bids/proposals,
whenever practicable, or by telephone bids or fax bids/proposals.
Made by solicitation of sealed competitive bids/proposals.
Hawaii
Bottom threshold
Top threshold
Details
Level 1:
0
1000
May be purchased as dictated by each Chief Procurement Officer.
Level 2:
1,000
10,000
At least 3 quotes must be solicited, informally.
Level 3:
10,000
Above
These purchases must be procured through Competitive Sealed Bids. after
advertising in a local newspaper of general circulation. The Formal Bid
process goes into affect at $25,000 for construction projects.
Iowa
192
Bottom threshold
Top threshold
Details
Level 1:
0
2500
Agencies may purchase facility maintenance, repair and operational
supplies and services. For commodities and services, a minimum of three
quotations (in any form) must be obtained.
Level 2:
2,500
5,000
Requires written response to an Invitation to Bid. Bids are opened
informally within 24 hours of the due date
Level 3:
5000
Above
Competitive sealed bid process. The formal bid process is used for
construction bids over $25,000.
Idaho
Bottom threshold
Top threshold
Details
Level 1:
0
5000
No competitive bid is required. Purchases can be made with an Idaho
purchase card.
Level 2:
5000
50,000
Three competitive solicitations from registered vendors with a
"significant Idaho economic presence," as defined by Idaho Code must be
solicited.
Level 3:
50,000
Above
Formal bidding procedures must be followed.
Illinois
Bottom threshold
Top threshold
Details
Level 1:
Less
10,000
These are considered small purchased. Sources selection is determined by
the procurement officer. This can include sole-source procurements.
Level 2:
10,000
more
The procurement officer secures telecommunications, material, equipment,
hardware, software, and related goods that fall into this dollar threshold.
These are considered formal bids and must be secured through IFBs.
IFBs are notices of the state's intention to purchase commodities, equipment
and/or supplies.
Indiana
Bottom threshold
Top threshold
Details
Level 1:
Less
5,000
All agencies have delegation of authority to solicit their own quotations.
Level 2:
5,000
75,000
Level 3:
75,000
Above
Some agencies have the authority to do their own purchasing. A few
agencies have a special delegation that will allow them to solicit up to
$75,000. All must following the rules and regulations set forth in Indiana
purchasing. If the agency doesn’t have authority they must follow the RFQ
procedure; determines the need, writes the specifications, and forwards the
request the Procurement Division for processing. The purchasing agents
must allow the solicitation to remain open for at least seven days.
Formal bid process must be followed. ITBs are issued and must be open
for 21 days and must be publicly advertised for two consecutive weeks.
Kansas
Bottom threshold
Top threshold
Details
193
Level 1:
0
2,000
All agencies have been granted authority to purchase without competitive
bids.
Level 2:
2000
25,000
Level 3:
25,000
50,000
Request For Quotations. Purchase may be made after the receipt of three or
more bid solicitations by telephone, telephone facsimile or sealed bid,
following at least three days' notice posted on a public bulletin board.
Formal bid process and including advertisement of bids, posted a minimum
of 3 days
Level 4:
50,000
Above
Formal bid process requiring notice published once in the Kansas Register
not less than ten days before the date in notice for the opening of the bids.
The division will send notices by mail to prospective bidders and by posting
the notice on a public bulletin board for at least ten business days before the
date stated in the solicitation.
Kentucky
Bottom threshold
Top threshold
Details
Level 1:
0
20,000
Small purchase procedure is followed, the small purchase amounts varies
for each agency.
Level 2:
20,000
Above
Formal bidding process.
Louisiana
Bottom threshold
Top threshold
Details
Level 1:
0
500
No competitive bidding required.
Level 2:
500
2000
Informal bid - quotes by fax, written or phone call, form 3 sources.
Level 3:
2000
25,000
Fax or written solicitation to at least five qualified vendors, 2 of the
quotes should be solicited from economically disadvantaged businesses.
Level 4:
25,000
Above
Formal Sealed Bid Process
Massachusetts
Bottom threshold
Top threshold
Details
Level 1:
0
50,000
Solicited of three quotes bid notification by fax, mail or electronically,
maybe advertised in COMM-Pass, written response required.
Level 2:
50,000
Above
Advertised in COMM-Pass, sealed bid, written response required.
Maryland
Bottom threshold
Top threshold
Details
Level 1:
0
2,500
Agencies have the authority to make purchases over the telephone.
Level 2:
2,500
10,000
Quotes must be received from at least two qualified vendors.
194
Level 3:
10,000
25,000
Bids can be faxed over a three-to four-day period.
Level 4:
25,000
Above
The formal bid process goes into affect.
Maine
Bottom threshold
Top threshold
Details
Level 1:
0
1000
May be purchased directly by agencies.
Level 2:
1,000
20,000
Level 3:
20,000
Above
Purchase will be made by contacting at least three responsible suppliers.
This may be done by telephone or by means of written quotation.
Purchased by sealed bids sent to a list of eligible bidders.
Michigan
Bottom threshold
Top threshold
Details
Level 1:
0
25,000
State departments and agencies have been given delegated purchasing
authority for purchases of supplies, materials, equipment and services up
to $25,000.
Level 2:
25,000
100,000
Purchases in this range must be publicly posted.
Level 3:
100,000
Above
Formal Invitation to bid
Minnesota
Bottom threshold
Top threshold
Details
Level 1:
0
2,500
A minimum of one solicitation is required for purchases. Should be from
a targeted or economically disadvantaged vendor if one is available.
Level 2:
2,500
5,000
Level 3:
5,000
25,000
A minimum of two solicitations are necessary, at least one should be from a
targeted or economically disadvantaged vendor if one is available. The
solicitations can be made by phone, fax, or in writing.
Three solicitations are required, two of these solicitations must be with
targeted or economically disadvantaged vendors if available. It is
recommended that the solicitations be publicly advertised in print.
Level 4:
25,000
Above
Formal Sealed Bidding procedure must be followed.
Missouri
Bottom threshold
Top threshold
Details
Level 1:
0
25,000
Informal bid method can be used, this may be an RFQs or a telephone
quote.
Level 2:
25,000
Above
Formal, sealed and advertised bid method is used.
Mississippi
Bottom threshold
Top threshold
Details
195
Level 1:
0
1,500
Purchase may be made by any vendor.
Level 2:
1,500
10,000
Two competitive signed bids must be obtained.
Level 3:
10,000
Above
Formal Bid Process.
Montana
Bottom threshold
Top threshold
Details
Level 1:
0
5,000
Purchase can be made directly from the vendor.
Level 2:
5,000
25,000
Purchases can be made using informal documented competition. Agencies
are encourage to utilize the states vendor list.
Level 3:
25,000
Above
Formal competitive method must be used, Montana's two formal processes
are IFB or RFB.
North Carolina
Bottom threshold
Top threshold
Details
Level 1:
0
5,000
Small purchase procedure, this procedure is set forth by each agency
Level 2:
5,000
25,000
Bids must be advertised and bid competitively.
Level 3:
25,000
Above
Formal Bid Process.
North Dakota
Bottom threshold
Top threshold
Details
Level 1:
0
$750
Departments can purchase directly from a vendor.
Level 2:
$750
Above
An RFP may be used to obtain pricing for purchasing that normally require
no contractor performance and IFB may be used for items that require
extensive contract specifications.
Nebraska
Bottom threshold
Top threshold
Details
Level 1:
0
5,000
May purchase directly from the vendor.
Level 2:
5,000
10,000
Informal bids, a minimum of three competitive bids should be solicited.
Level 3:
10,000
Above
This bids can be obtained via mail, phone, fax or email
Competitive sealed bid process
New Hampshire
Bottom threshold
Top threshold
Details
Level 1:
0
2,000
Purchasing agent can make direct purchases.
Level 2:
2,000
Above
Bids are publicly posted and received through the sealed bid procedure.
196
New Jersey
Bottom threshold
Top threshold
Details
Level 1:
less
25,000
Direct-Purchase Authority can be used where contracts: are not in effect
for the commodity or service and the commodity or services are not
available through the Bureau of State Use Industries.
Level 2:
25,000
Above
A formal Request for Proposal must be issued and publicly advertised.
New Mexico
Bottom threshold
Top threshold
Details
Level 1:
0
1,500
Quotes may be taken by telephone.
Level 2:
1,500
10,000
An Informal Quote is allowed, advertisement is not required but requires
three written or oral quotations from vendors.
Level 3:
10,000
Above
Formal Sealed Bids, these bids must be advertised in a statewide circulated
publication and sent by direct mail to registered vendors.
Nevada
Bottom threshold
Top threshold
Details
Level 1:
0
25,000
Informal bids requiring telephone quotes or written quotations. A sealed bid
is optional.
Level 2:
25,000
100,000
Formal Sealed Bids and must be advertised in a newspaper of general
circulation.
Level 3:
100,000
Above
Services estimated at $100,000 or greater during the contract's term must
be referred to the Services Procurement Section within the State Purchasing
Division.
New York
Bottom threshold
Top threshold
Details
Level 1:
0
50,000
State agencies can directly purchase up to $50,000 of product or service
without the need to conduct a formal procurement or advertise in the
Contract Reporter.
Level 2:
50,000
Above
Requires approval from OSC, bids must be advertised and follow the
formal bidding procedure.
Ohio
Bottom threshold
Top threshold
Details
Level 1:
0
25,000
Purchases can be made directly by the agency but require a quote from at
least three bidders via phone, fax or in writing.
Level 2:
25,000
More
Competitive Sealed Bid. Any amount more than $25,000 must be approved
197
by the State Controller's Board.
Oklahoma
Bottom threshold
Top threshold
Details
Level 1:
0
2,500
Purchaser will process internal division acquisitions.
Level 2:
2,500
Above
Competitive formal bid process.
Oregon
Bottom threshold
Top threshold
Details
Level 1:
less
5,000
Agencies may make these purchases using a P.O.
Level 2:
5,000
75,000
Must be fully documented and competitively bid. These purchases require
a minimum in of three competitive quotes.
Level 3:
75,000
Above
Formal bidding whether it will be through and RFP or ITB.
Level 4:
Unlimited
Pennsylvania
Bottom threshold
Top threshold
Details
Level 1:
0
3,000
No bid required.
Level 2:
3,000
10,000
Three quotes must be solicited by letter, phone, fax, e-mail.
Level 3:
10,000
20,000
Delegated agency procurement, formal competitive bidding required. For
services this threshold level is $500,000.
Level 4:
20,000
Above
DGS acts as the purchasing agency. Formal competitive bidding required.
Rhode Island
Bottom threshold
Top threshold
Details
Level 1:
0
5,000
Small purchases may be solicited through informal telephone quotes for
values up to $1000 and formal procedures with written quote confirmations
required for all others. Small purchase procedures require soliciting bids
by mail from at least three vendors, one of which is a Rhode Island
certified Minority or Woman Owned Business.
Level 2:
5,000
Above
Formal Bid Process, Invitations for Bid and Requests for Proposal (RFPs)
are advertised or made available on the Electronic Rhode Island
Vendor Information Program (RIVIP) at http://www.purchasing.state.ri.us
South Carolina
Bottom threshold
Top threshold
Details
198
Level 1:
0
10,000
RFQs solicited verbally, purchases over $5,000.01 require a minimum of
three sources confirmed in writing.
Level 2:
10,000
25,000
Quotes must be written, a minimum of three sources required and bids
must be advertised in SCBO.
Level 3:
25,000
Above
Competitive Sealed Bids
South Dakota
Bottom threshold
Top threshold
Details
Level 1:
0
15,000
Can be purchased directly from vendor.
Level 2:
15,000
Above
These purchase require formal bidding which includes: request for
Quotations (RFQ), and can be done in writing of by phone; Invitation for
Bid (IFB), and Request for Proposal (RFP).
Tennessee
Bottom threshold
Top threshold
Details
Level 1:
0
10,000
Unsealed bids, verbal or telephone quotations may be requested for local
purchases not exceeding $2000.00. . Fax confirmation is acceptable as
written confirmation of bids below $5,000. Otherwise written confirmation
of the quotation should be sent to the requesting state agency.
Level 2:
10,000
Above
These purchases require Competitive Sealed Bids.
Texas
Bottom threshold
Top threshold
Details
Level 1:
0
25,000
Agencies can procure these purchases independently, they are required to
pull a list of vendors from the CMBL for all purchases in excess of $2,000.
Level 2:
25,000
Above
These purchases are must go through the General Services Commission and
bids are mailed to registered vendors.
Utah
Bottom threshold
Top threshold
Details
Level 1:
less
2,000
Agencies are authorized to make small purchases up to 2,000 on their own.
Level 2:
2,000
20,000
These purchases can be made by RFQs. Written fax or telephone quotes
may be used.
Level 3:
20,000
Above
Legal notice is required.
Virginia
Bottom threshold
Top threshold
Details
Level 1:
0
5,000
Informal quotes taken by phone, fax or in writing.
Level 2:
5,000
Above
Formal invitation to bid, advertised in a newspaper of general circulation.
199
RFP may also be used is deemed in the states best interest.
Vermont
Bottom threshold
Top threshold
Details
Level 1:
0
1,000
These purchases must procured form local vendors.
Level 2:
1,000
75,000
Treated as formal bids requiring bids from at least three vendors.
Level 3:
75,000
Above
Competitive Sealed Bid process, advertised in a newspaper of general
circulation.
Washington
Bottom threshold
Top threshold
Details
Level 1:
0
$800
These purchases can be made directly with the vendor.
Level 2:
$800
$41,000
Informal bid process.
Level 3:
$41,000
Above
Competitive Sealed Bids that must be advertised in a newspaper of general
circulation.
Wisconsin
Bottom threshold
Top threshold
Details
Level 1:
0
1500
Purchases can be made from vendors who can supply the item at a fair
price and quality through the discretion of the purchasing agent. These
purchases should try to be made from small and minority businesses.
Level 2:
1500
25,000
Telephone, fax or verbal quotes can be taken.
Level 3:
25,000
Above
Formal bid process is used. These bids are advertised in the Wisconsin State
Journal. Bids are also posted on the Internet.
West Virginia
Bottom threshold
Top threshold
Details
Level 1:
0
1000
Requires no bids but competition is always encouraged
Level 2:
1000
5000
Three verbal bids are required, where possible, and should be
documented.
Level 3:
5000
10,000
Require three written bids, RFQ should be used to document those vendors
solicited and their responses.
Level 4:
10,000
Above
These purchases must go through the Purchasing Division, bids are publicly
advertised and go through the formal sealed bidding procedure.
Wyoming
Bottom threshold
Top threshold
Details
200
Level 1:
0
7,999
Bids must be taken verbally or as written quotes.
Level 2:
7,999
Above
Competitive Sealed Bid and must be advertised in a newspaper of general
circulation.
Part 2: US Cities and Counties
Alaska
Bottom threshold
Top threshold
Details
Anchorage, City of
Level 1:
0
25,000
Formal process, informal written solicitation, whenever practicable at least
three quotes are solicited. Telephone, fax or verbal quotes are other
acceptable methods.
Level 2:
25,000
Above
Invitation to bid, public advertisements, public bid opening.
Top threshold
Details
California
Bottom threshold
Los Angeles County
Level 1:
0
1,500
One solicitation required sent to the best known source.
Level 2:
1,501
5,000
Three solicitations required sent to the three best know sources.
Level 3:
5,001
15,000
Minimum of three solicitations sent to best known sources, email
notifications to registered vendors,
Level 4:
15,001
100,000
Bids posted on the county bid page, emails sent to registered vendors.
Level 5:
100,000
Above
Bids posted on the county bid page, emails sent to registered vendors.
The County of Los Angeles Board of Supervisors must award service
contracts over $100,000.
Orange County
Level 1:
0
3,000
Purchases require only one quote.
Level 2:
3,000
10,000
Two bids must be obtained, they can be verbal or written.
Level 3:
10,000
Above
Formal bid process.
201
San Francisco County
Level 1:
0
5,000
Purchases are advertised in the Bid and Contract Opportunities newsletter.
Level 2:
5,000
50,000
Quotations are not advertised, but are sent to a minimum of three
prospective bidders.
Level 3:
50,000
Above
Formal Bid Process
Fresno, City of
Level 1:
0
1000
Purchases under $1,000 are decentralized.
Level 2:
1000
6000
Purchasing personnel will solicit at least three written quotations. Fax
quotes are accepted.
Level 3:
6000
32000
Sealed/non-formal bid process or other competitive process.
Level 4:
32000
Above
Require a formal bidding procedure in accordance with the City Charter.
Long Beach, City of
Level 1:
0
50000
These purchases are considered informal bids that require only three
bidders. Informal bids can be viewed online.
Level 2:
50000
Above
These are considered formal bids and must be advertised. Formal bids can
be found online.
Los Angeles, City of
Level 1:
0
5000
Quotations are obtained via telephone. When a firm is contacted for a
telephone quote, they will be asked for a firm price, F.O.B., origin, plus
the delivery time and the supplier’s cash discount terms. When an award is
made, the buyer may issue a purchase order number over the telephone. The
exact firm name as it appears on the invoice is required. The supplier
must show this purchase order number on the invoice, packages and
shipping documents.
Level 2:
5000
Above
These quotations must be submitted on the City's "Request for Bid" forms.
Forms can be mailed to the Supplier, downloaded from the Internet at Bids
and Required Forms or obtained from the purchasing receptionist. Results
of formal and informal bids are posted in the Purchasing Office
approximately 10 days after the bid closing date, or you may call the
202
24-hour Bid Hotline at (213) 485-0757 or (213) 485-0752.
Oakland, City of
Level 1:
0
$4,999
Informal bids which require three quotes over the phone, fax or in writing.
Level 2:
$5,000
Above
Purchases must be made using the formal bid process which requires
approval through the City Council. These bids must be advertised in a
newspaper of general circulation.
San Jose, City of
Level 1:
0
200
City personnel are authorized to make purchases in cash.
Level 2:
200
20,000
Informal purchases; quotations are solicited from at least three vendors
when practicable. These quotes can be taken by telephone, fax or mail and
are not normally advertised.
Level 3:
20,000
Above
Formal Bidding Process requiring advertising in a newspaper of general
circulation, the City advertises in the San Jose Post Record, receiving
sealed bids, publicly opening the bids and awarding the purchase to the
lowest responsive bidder meeting specifications.
Alameda County
Level 1:
0
100,000
Informal bid process quotations are solicited from at least three vendors
when practicable, quotes can be obtained either by telephone, fax or mail
and are not normally advertised.
Level 2:
100,000
Above
Formal bidding procedures, requires advertising in a local newspaper
inviting formal sealed competitive bids.
Top threshold
Details
Florida
Bottom threshold
Hillsborough County
Level 1:
0
10,00
Telephone quotes taken.
Level 2:
10,00
25,000
Written quotes taken.
Level 3:
25,000
Above
Formal bid process.
Level 1:
0
12000
Informal bids that can be done over the phone, fax or in writing.
Level 2:
12000
Above
Formal bids and that must be advertised.
203
Miami, City of
Level 1:
0
$1,000
Telephone quotes from a minimum of three suppliers.
Level 2:
$1,000
$4,5000
Written quote requests are solicited on Request for Quotation forms
detailing the items to be purchased, and mailed or faxed to at least three
vendors on the bidder's list who can supply the product or service. Informal
quotations may be solicited by mail, telephone, fax or personal visits by
salespersons.
Level 3:
$4,500
Above
These purchases must go through the formal, competitive, sealed Bid
Process.
Broward County
Level 1:
0
30,000
May result in a Purchase Order for commodities, printing or services.
Informal bid process, written or telephone quotes are normally used.
Level 2:
30,000
Above
Formal procurement method, Invitation for Bid, advertisement and sealed
bid process.
Top threshold
Details
Georgia
Bottom threshold
Cobb County
Level 1:
0
500
Purchases may be made directly.
Level 2:
500
2500
The Purchasing Department is authorized to obtain quotations by telephone.
Level 3:
2500
20,000
Informal written quotations are solicited.
Level 4:
20,000
Above
Formal Sealed Bid Process.
Top threshold
Details
Hawaii
Bottom threshold
Honolulu County
Level 1:
0
1,000
Agencies may purchase directly
Level 2:
1,000
2,000
Solicitation of a minimum of 3 informal price quotes are needed.
Level 3:
2,000
10,000
The Purchasing Division solicits requests for quotations.
Level 4:
10,000
Above
Advertised Competitive Sealed Bidding.
204
Honolulu, City of
Level 1:
0
1000
May be made by City departments and agencies if the purchase prices are
fair and reasonable.
Level 2:
1000
2000
Solicitation of a minimum of 3 price quotes are needed, unless otherwise
justifiable.
Level 3:
2000
10,000
The Purchasing Division solicits requests for quotations. Request for
quotation forms for specific goods, services, or construction are available
for pick up in the Purchasing Division. The threshold for construction is
$2,000 - $25,000.
Level 4:
10,000
Above
The formal bidding process is in effect, purchases are made through
competitive sealed bidding after advertising in a local newspaper of
general circulation. For construction bids the formal bid process is in
effect for purchases above $25,000.
Top threshold
Details
Illinois
Bottom threshold
Chicago, City of
Level 1:
0
10,000
Bids are solicited by mailed or faxed bid quotations without public
advertisement.
Level 2:
10000
Above
These purchases require competitive sealed bidding after public
advertisement.
DuPage County
Level 1:
0
1,000
Agencies can purchase from supplier directly.
Level 2:
1,000
10,000
Procedures for small-dollar purchases are followed and informal quotations
are solicited.
Level 3:
10,000
Above
Publicly advertised and are subject to formal-bidding procedures.
Top threshold
Details
1000
Individual departments can purchase goods directly from a vendor.
Indiana
Bottom threshold
Level 1:
0
205
Level 2:
1000
25000
Purchases can be done using three quotes made either by phone, fax or in
writing.
Level 3:
25000
75000
At least 3 written quotations as mandated by state law must come from
three vendors on the City’s bid list or by the selection of the purchasing
agent.
Level 4:
75000
Above
These purchases require formal bids procedure be taken through the
Purchasing Department.
Top threshold
Details
Kansas
Bottom threshold
Wichita, City of
Level 1:
0
$500
Agencies may purchase products or services up to $500.
Level 2:
$500
Above
Must be submitted to the purchasing division for approval.
Level 3:
$10,000
Above
Must be approved by the city council.
Top threshold
Details
Louisiana
Bottom threshold
New Orleans, City of
Level 1:
0
$9,999
Three quotes can be taken via phone, fax or in writing.
Level 2:
$10,000
Above
These purchases require formal bids advertised in a newspaper of general
circulation. Bids can be done via IFBs and RFPs.
Top threshold
Details
Maryland
Bottom threshold
Baltimore, City of
Level 1:
0
5,000
Not advertised, mailed to bidders on bid list.
Level 2:
0
25,000
Not advertised, mailed to bidders on bid-list. Minority participation is
encouraged.
Level 3:
25,0000
Above
Advertisement of bid, requires minority and women business enterprise
participation.
Baltimore County
206
Level 1:
0
1,000
Orders placed directly with vendors using procurement (credit) cards.
Level 2:
1,001
5,000
Price data is obtained from price records, or by telephone from suppliers;
vendors submit invoices to the Office of Budget and Finance,
Disbursements Section.
Level 3:
5001
25,000
Written quotations are solicited from at least three bidders.
Level 4:
25,000
Above
Solicitations package requiring procurement affidavits, are mailed to
suppliers on the County’s bidders list. Bid announcements are posted on
this Web site and on the public notice board in the Purchasing Bureau; in
addition, solicitations are advertised in at least one issue of a newspaper
having general circulation throughout the county.
Montgomery County
Level 1:
0
3,000
Departments have authorization to purchase directly.
Level 2:
3,000
25,000
Informal bid process, must go through the central purchasing office.
Level 3:
25,000
Above
Competitive Sealed Bid advertised in newspaper of general circulation.
Top threshold
Details
Michigan
Bottom threshold
Detroit, City of
Level 1:
0
$399.00
Only one quote is required. Petty cash purchases are purchased and paid
directly by the using department.
Level 2:
$400.00
$1,999.99
Level 3:
$2,000
$25,000
A minimum of three bids are required. Like Petty Cash, handled at
departmental level, without approval from the Purchasing Division
Handled through the Purchasing Division. There is no formal bid opening
and only the successful bidder is notified of award.
Level 4:
$25,000
Above
Handled through the Purchasing Division. A formal bid opening is held
and all bidders are notified by letter to whom the award was made. The
winning vendor cannot be in arrears with Detroit Income or Property Taxes
and must receive a clearance from the Human Rights Department (for bids
above $15,000). All formal purchases require the approval of the Detroit
City Council. Vendors may protest a bid award by contacting the
Purchasing
Director by letter, prior to the City Council approval date.
Minnesota
Bottom threshold
Top threshold
Details
207
Hennepin County
Level 1:
0
50,000
The buyer normally refers to the bidders list and contacts several of the
businesses listed to obtain price quotes. This is done either by phoning
them or mailing them a request for quotation.
Level 2:
50,000
Above
Formal sealed bid process.
Minneapolis, City of
Level 1:
0
$50,000
The buyer may request sealed bids or refer to the bidder's list, Small
Business Directory and contract several of the businesses listed for price
quotes. This can be done either by phoning or by mailing a request for
quotation.
Level 2:
$50,000
Above
The buyer prepares bidding documents and invites sealed bids in
accordance with Minn. statutes 471.35
Top threshold
Details
Nebraska
Bottom threshold
Omaha, City of
Level 1:
0
$5,000
These purchases are done as informal quotes via phone, fax or in writing.
Three vendors must be solicited.
Level 2:
$5,000
Above
These purchases must be done as formal written bids and advertised in a
Level 3:
$5,000
$20,000
The Purchasing Division may, on its own authority, purchase up to
$20,000 in goods and services provided they accept the lowest bid.
Level 4:
$20,000
Above
All purchase awards over this amount made to a vendor other than the
lowest bidder, must be approved by the City Council.
Top threshold
Details
12,300
These purchases require informal bids which can be done via phone, fax or
in writing. These purchases can also be procured off of Statewide
Contracts through the County’s cooperative purchasing program.
New Jersey
Bottom threshold
Bergen County
Level 1:
0
208
Level 2:
12,300
Above
These purchase require formal bids which must be approved through the
County Freeholders and advertised in a newspaper of general circulation.
Level 1:
0
1,000
Individual county departments are authorized to spend up to $1,000
independently.
Level 2:
1,000
12,300
The County uses informal bidding processes that require at least three
quotes via phone, fax or in writing.
Level 3:
12,300
Above
The County is requires the use of formal bidding methods (this includes
RFPs and RFQs).
Top threshold
Details
Essex County
New Mexico
Bottom threshold
Albuquerque, City of
Level 1:
0
500
Departments are free to purchase on their own, no formal or informal
bidding is required.
Level 2:
500
10,000
Requires quotations (from local vendors). These procurements are
processed through the Purchasing Division.
Level 3:
10,000
Above
Require a formal request to bid, bids must be publicly advertised.
Top threshold
Details
Nevada
Bottom threshold
Clark County
Level 1:
0
10,000
These purchases require one quote.
Level 2:
10,000.01
25,000
These purchases require a minimum of two written quotes.
Level 3:
25,000.01
Above
Requires a formal bid process, including a requisition approved by the
Finance Department, a formal bid document, advertising, and award of
the bid by the approval of the Board of County Commissioners Fiscal
Affairs Committee.
Top threshold
Details
New York
Bottom threshold
New York, City of
209
Level 1:
0
$2,500
Procurements that are $2,500 or less do not require competition, except that
in making purchases below this limit, contracting officers are required to
ensure that the noncompetitive price is reasonable and that purchases are
distributed appropriately among responsible suppliers.
Level 2:
$2,5000
$25,000
Procurements in value over $2,500 must be solicited at random to at least
five suppliers from the bidders list. Responsive bids must be obtained from
at least two suppliers. Solicitations for less than $25,000 may be oral or
written.
Level 3:
$25,000
Above
Solicitations for more than $25,000 must be written
Top threshold
Details
Ohio
Bottom threshold
Cuyahoga County
Level 1:
0
1,000
Individual departments are authorized to spend up to $1,000 on their own.
Level 2:
1,000
15,000
Level 3:
15,000
Above
Informal, Competitive Bid. ITB is sent to all vendors who are registered
with the Office of Procurement. This can also be done via phone or fax with
three registered vendors when there are special conditions involved.
Formal, Competitive Sealed Bid Process.
Cincinnati, City of
Level 1:
0
5000
No advertising is required and purchases can be made straight from the
vendor.
Level 2:
5000
25000
Purchaser may invite competitive bidding by announcement without
advertisement.
Level 3:
25000
100000
These purchases must be approved by the city manager, board or
commission. These bids must also be advertised and may require a
performance surety for those that exceed $50,000.
Level 4:
100000
Above
Competitive bidding by advertisement is required.
Cleveland, City of
Level 1:
0
1000
No advertising is required and purchases can be made straight from the
vendor.
Level 2:
1000
10000
Informal bid process, three vendors must be contacted for a response to an
IFB or RFP.
210
Level 3:
10000
Above
Formal bid process requiring advertising in a newspaper of general
circulation. The City Council must also approve these purchases.
Columbus, City of
Level 1:
0
1000
These purchases are considered informal purchases that don’t require a
requisition to be turned into the Purchasing Department.
Level 2:
1000
10000
These purchases can be done via informal quotes taken by phone. Such
purchases don’t have to be advertised, but RFBs must be posted at least 24
hours.
Level 3:
10000
These purchases are considered formal bids that must be advertised in a
Franklin County
Level 1:
0
15,000
Informal bid process, can be conducted via phone.
Level 2:
15,000
Above
Formal bid process.
Top threshold
Details
Oregon
Bottom threshold
Portland, City of
Level 1:
0
$5,000
These purchases are processed using a City of Portland Limited Purchase
Order; this spending authority has been delegated directly to the various
bureaus and offices.
Level 2:
$5,000
$51,281
Not required to advertise, informal bid process.
Level 3:
$51,281
Above
Formal bid process is followed, bids must be publicly advertised.
Top threshold
Details
Pennsylvania
Bottom threshold
Philadelphia, City of
Level 1:
0
$13,000
Departments can directly solicit for purchase up to $13,000 by using
competitive quotations.
Level 2:
$13,000
Above
These are considered Formal Competitive Bids and must be advertised in a
local newspaper.
211
Pittsburg, City of
Level 1:
0
$10,000
These purchases require informal bids. Three quotes can be taken over the
phone, fax or in writing.
Level 2:
$10,000
above
These purchases require formal bids with the approval of the City Council.
Allegheny County
Level 1:
0
10,000
Purchase order are issued based on verbal or written quotations obtained
through an informal process.
Level 2:
10,000
30,000
Purchase order issued based on verbal or written quotes obtained from at
least three quotes through an informal process. Quotations will be solicited
from suppliers who have registered with the Division of Purchasing and
Supplies’ electronic bid distribution system.
Level 3:
30,000
Above
Formal bid process, these bids must be advertised in a newspaper of
general circulation.
Top threshold
Details
Tennessee
Bottom threshold
Memphis, City of
Level 1:
0
$2,5000
Done at the discretion of the division.
Level 2:
$2,500
$50,000
Done by telephone and written bids mailed to firms listed on the city's
bidders list.
Level 3:
$50,000
Above
These bid must be written and advertised in the Daily News.
Top threshold
Details
Texas
Bottom threshold
Tarrant County
Level 1:
0
15,000
Buying staff determines which purchase procedure will be used. Bids at
this level can be obtained via phone, facsimile machine, informal written
quotes, or sealed bids.
Level 2:
15,000
Above
Formal sealed bid procedure.
Houston, City of
212
Level 1:
0
25000
The agency utilizes informal solicitations for requirements exceeding
department authority by mail, telephone, or facsimile.
Level 2:
25000
Above
Must follow formal bid procedure, bid must be placed in a newspaper of
general circulation. Any amount over $100,000 must go through the
Strategic Purchasing Division.
Level 1:
0
15,000
Informal quotes that can be take via phone, fax or in writing.
Level 2:
15,000
Above
RFPs, RFQs or IFBs are used, bids also must be publicly advertised.
Level 1:
0
500
These small purchases only require a phone quote.
Level 2:
500
2,000
These purchases require at least three phone quotes.
Level 3:
2,000
15,000
These purchases require five phone quotes.
Level 4:
15,000
Above
These purchases must be done via sealed bid. A sealed bid is a formal
written request for supplies, services or equipment with an estimated
purchase price of $15,000 or over. State law requires sealed bids to be
advertised.
Level 1:
0
15,000
Informal purchasing, at the discretion of the buyer and the requirements of
the user department. Informal bids can be taken via phone, fax, in person
visits or may be in writing.
Level 2:
15,000
Above
Formal bid process advertised publicly for at least 2 weeks.
Bexar County
Dallas County
Harris County
San Antonio, City of
Level 1:
0
$100
May be made by requesting Department Head or a representative without a
purchase order if payment is made from petty cash.
Level 2:
$100
$15,000
Must be authorized by the Purchasing Director. The purchase order will be
awarded to the lowest qualified bidder conforming with specifications.
Level 3:
$15,000
Above
Bids may be requested in writing, by phone, by fax, or in person.
Require a formal bidding process. Public notice will be given for a period
of fourteen to thirty days.
213
Utah
Bottom threshold
Top threshold
Details
Salt Lake County
Level 1:
0
1,000
County agencies may purchase goods and services under $1,000. Agencies
are encouraged to obtain three telephone bids.
Level 2:
1,000
10,000
Are made by the Contracts and Procurement Division and must receive
at least three competitive bids, those over 5,000 must be in writing.
Level 3:
10,000
25,000
Purchases are made by competitive bidding after advertisement and
approval by the Mayor.
Level 4:
25,000
Above
Formal Bid Process and the County Attorney’s Office must review the
request for bid prior to the award.
Level 1:
0
1000
City agencies may purchase goods and services under $1,000 with a City
small purchase check.
Level 2:
0
2000
Telephone quotes may be solicited by the buyer or may be issued without
competitive solicitation, at the buyers discretion.
Level 3:
2000
10,000
Informal competitive quotation.
Level 4:
10,000
Above
Formal competitive sealed bids or proposals are solicited.
Top threshold
Details
Virginia
Bottom threshold
Virginia Beach, City of
Level 1:
0
$15,000
Informal Bidding Process, quotes are solicited by written RFQ or verbal
quotation, these bids are not public ally advertised. Bids in this range can go
through the formal bid process if it is deemed in the best interest of the city.
Level 2:
$15,000
Above
Formal Bid Process is followed. Bids are publicly posted for at least 10
tens.
Fairfax County
Level 1:
0
50,000
Informal bids, vendors are randomly selected from the bidders list and sent
an informal solicitation.
Level 2:
50,000
Above
Formal bid process are issued to all vendors on each bidders list for formal
214
purchase of specific goods and/or services.
Wisconsin
Bottom threshold
Top threshold
Details
Milwaukee, City of
Level 1:
0
5,000
May be made independently by City personnel using Procurement Card
without the intervention of the Business Operations Division.
Level 2:
5,000
30,000
These bids are unadvertised and unsealed which are awarded by the City
Purchasing Director to the lowest responsible and responsive bidder
complying with the bid specifications.
Level 3:
30,000
Above
Advertised, sealed and opened at a public bid opening.
Milwaukee County
Level 1:
0
5,000
These purchases may be made at the discretion of the buyer.
Level 2:
5,000
15,000
Informal bid, 3 vendors are contacted.
Level 3:
15,000
25,000
Vendors on the bidders list for the purchase requested are all notified of
the bid request.
Level 4:
25,000
Above
Vendor notification, public advertisement of bid, sealed bid response.
215

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