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FAR

Got a Delivery Service Business? Get a Government Contract

Even before Covid, delivery service businesses were in high demand. The shift to delivery services, since Covid, has been nothing short of astronomical. There is no better time to increase your business and no better way than a federal delivery contract.

Are federal delivery contracts actually worth the time and effort? In 2020, the U.S. government awarded $683 billion in federal contracts. Spending is expected to continue to increase over the next several years. (ExecutiveBiz June 20, 2022)

While DHL, FedEx, and UPS dominate the federal delivery service, the federal government is driving initiatives to include every business. Many agencies actually have offices dedicated to small businesses. (ibid)

One such agency is the Department of Transportation (DOT). Within the DOT is the Office of Small and Disadvantaged Business Utilization (OSDBU) which supports small delivery services providers and vendors operating in the delivery services arena. Additionally, there are contracting assistance programs available at the Small Business Administration (SBA). Certain SBA programs provide assistance to Women-owned small businesses and often link them to mentors.(ibid)

Contracts within the federal delivery service platform generally last from 12 months to as long as 36 years. When an agency is happy with a service delivery provider, often contracts are extended. In addition, the federal government has a stellar reputation for paying invoices. (ibid)

The first step in winning a federal delivery contract involves market research. Done properly, it will help you make informed decisions and understand current demands. Knowing the market prepares you to meet an agency’s needs. (ibid)

The second step is knowing your competition. This will allow you to bid your services competitively. The SBA has a dynamic search function DSBS. SAM.gov is another site that allows you to view new delivery contracts awarded by federal agencies. (ibid)

The third step is knowing the federal and state regulations. Many can be found on this SBA site. The following regulations are the most important to be aware of:

  • Labor and employment – wages/workplace hazard protection
  • Taxes – individual as well as employment taxes
  • Advertising and privacy – trustworthy advertising/customer privacy
  • Environment – an example is the Greenhouse Gas Reporting Program (GHGRP)
  • Antitrust – actions which monopolize or limit competition (ibid)

The fourth step is becoming familiar with the Federal Acquisition Regulation (FAR). This is the script for federal contractors and contracting officers. Knowing the FAR will go a long way to navigating the complex requirements and processes of the federal government acquisition arena. (ibid)

A fifth step is to know whether you are eligible for small business assistance programs. If eligible, you can apply for contracting assistance. (ibid)

Finally, get registered on the SAM website. This is the federal government System for Award Management (SAM.gov). Once you will receive a Unique Entity ID (UEI) which identifies your delivery service business. (If you offer other services, you may have more than one NAICS code.) (ibid)

Once all of the above steps are completed, you are ready to bid on a contract. To prepare, identify your target federal agencies and price your delivery services competitively. Once a federal agency publishes a Request for Proposal (RFP) review the expectations and determine if your business can meet the demands of the RFP. If so, you are ready to bid.(ibid)

Responding to an RFP requires strict attention to detail and timelines. A late response or a partially responded to requirement will disqualify a company from winning a contract. If you are non-compliant you will not receive an award. We recommend setting up schedules for research, writing, and reviews. And remember, all proposals must be submitted on time.

Working your way through the regulations and requirements to successfully bid on government contracts takes finesse and know-how. If you have reached a roadblock or need some assistance, give us a call.

So You Want To Be A Federal Government Contractor

A recent American Express OPEN survey showed that 57 percent of businesses noted a significant increase in revenue when engaged in government contracting. In fact, those businesses saw their revenue grow at a rate of 61percent. Our focus will be on the largest source of doing business with the government, federal government contracting. (The National Law Review May 9, 2022)

Each year the federal government contract spending is in the billions of dollars. The United States government is the single largest procurer of goods and services in the world. Vendors sell anything from paper clips to fighter jets for the Department of Defense. In order to take advantage of this business, at any level, vendors must complete several required steps. (ibid)

Completion of Regulatory Basics

Businesses wishing to work with the federal government must complete specific regulatory requirements. All potential contractors are required to obtain a Unique Entity Identifier (UEI). Your business is assigned a UEI when you register on SAM.gov. Click here to learn more about obtaining a UEI. (ibid)

For a contract to be awarded by the federal government, approval must be obtained by a Contracting Officer (CO). COs only approve responsible contractors. The government will not enter into a contract with a vendor who:

  • owes back taxes
  • has a current or pending legal judgment with the government
  • does not have a checking account
  • is on the government’s excluded parties list
  • has not completed the basic regulatory requirement for doing business with the government

Before moving on, potential contractors should verify all required registrations are completed and a UEI is assigned. (ibid)

Locating Opportunities

Looking for opportunities within the federal government is similar to private industry. One must determine which agency has a need for a particular good or service.

There are many sources to help locate opportunities suited to a specific business. The main portals for entry into the federal government contracting are:

General Services Administration (GSA) Schedule

This is the most common form of a federal government contract. GSA is the “acquisition arm” of the federal government. Vendors who wish to be included on the primary contract vehicle, a GSA Schedule, can find additional information here. (ibid)

To be eligible for a GSA Schedule contract, a potential GSA vendor must show proof of at least two years of measurable past performance and provide two years of financial statements. References from the Federal arena may be used in lieu of experience. (ibid)

FedBizOpps

Federal Business Opportunities (FedBizOpps) contains government contracting opportunities with values over $25,000. (ibid)

GWACs

This is a government-wide acquisition contract (GWAC) in which multiple government agencies align their needs and purchase a contract for goods or services. Government-wide acquisition contracts (GWACs) allow for economies of scale, which usually reduce per-unit costs.

Vendors may also act as a subcontractor to prime contractors. There are several sites to research for subcontracting opportunities. GSA and the Small Business Administration (SBA) both maintain subcontracting databases. Additionally, the SAM website, as well as the Federal Procurement Data System (FPDS), contain sources of information including trade and business publications.

There are two types of government contract offers – bids and proposals. Bids are made in sealed bidding purchases, proposals generally involve contract awards following a negotiation process. The three offer types are:

  • Request for Quotation (RFQ): Used for proposed contracts with a value of less than $150,000.
  • Request for Proposal (RFP): Used for acquisitions with higher values than an RFQ.
  • Invitation for Bid (IFB): Similar to an RFP, with values over $100,000. Contractors submit a sealed bid for government procurement. Generally, negotiation follows. (ibid)

It is extremely important that all information provided in an offer be factually sound and contain all information necessary for a CO to make an evaluation. Vendors should note that responses to technical specifications will become part of the contract, so it is wise not to overpromise. (ibid)

Once all requirements are satisfied the offer is ready for submission. Note, that the lowest-priced offer does not necessarily ensure a win. More often than not, experience and service excellence are deemed more important. (ibid)

The evaluation of offers begins when the government agency receives es the bids. Patience is key as acceptance of bids can take up to several months. The key is knowing and staying up-to-date with your Contracting Officer. (ibid)

Have questions about contracting with the federal government? Give us a call.

The Navy is looking to end Small Business subcontractor baiting

The Department of the Navy (DoN) has exceeded all of its small business goals for fiscal year 2021, spending more than $17 billion with small business prime contractors. The Navy is, however, wrestling with small business subcontractors getting their fair share. (Federal News Network October 21, 2021)

An updated effort to enforce small business contracting plans is in the works, according to Jimmy Smith, the director of the Office of Small Business Programs for the Department of the Navy. (ibid)

According to Smith, “the Navy executed a Navy audit, service audit on subcontracting on our 10 major buying commands. The Naval Sea Systems Command was the first of those 10 audits. The audit has concluded. We’ve already seen the results of that and now we’re sharing that information across the entire enterprise to go off and correct problems. We don’t think we’re going to learn anything more from going over the same information in the other audits, so now is the time to get into corrective actions and the steps that we need in order to execute solutions to problems instead of continuing to admire problems.” (ibid)

The first audit has provided some changes to be made Navy-wide, according to Smith. “First is reporting back to our industry partners. We have to make that something that’s pretty standard, maybe use a machine learning technology to help contracting officers identify problems that are in contractor performance assessment reporting (CPARs) when it comes to how well our industry partners are doing meeting their own subcontract and goals, that they can communicate it to us. We would love to have a system that flashed bright red lights when an industry partner wasn’t living up to the plan in the document that they provide to us about the health of their effort. Right now, it’s all hand-over-hand reading to see if you find that someone is off and then go do the analysis. I think we have to come up with a mechanism that brings the importance level of subcontract and compliance up to a higher level to raise it to the attention that it’s deserved.” (ibid)

Government agencies and prime contractors, need to hold up their side of the bargain and be held accountable. In 2018, the Inspector General for the Defense Department found it to be a challenge for five contracting commands to monitor prime contractors’ compliance with individual subcontracting plans. He told the House Small Business Committee the individual contractors who held subcontracting plans, did not meet their small business subcontracting goals. (ibid)

The Federal Acquisition Regulations Council issued a final rule in August. The rule requires large businesses to make “good faith efforts” to meet subcontracting goals. A few examples of actions that are a failure to make a good-faith effort can be found in the SBA’s guidance list. (ibid)

The final rule spells out what encompasses not making a “good faith effort”. The rule includes turning in subcontracting plan reports late, not designating an employee to monitor the subcontracting plan, and not completing market research. (ibid)

Smith said the Navy has met all of its small business goals for the past four years. He added, the Navy’s goals are not just the numbers, but providing the correct capability to the warfighter at the best value. (ibid)

Smith noted that the Navy is finding small businesses that meet their needs by an extended outreach effort. The move to virtual events has also extended their outreach. Virtual events are more cost-effective and reach more people. Smith plans to continue to do some live events, however, webinars will complement these and hopefully reach even more small business contractors. (ibid)

Questions about your small business subcontract plan? Give us a call.

 

 

Life after DUNS

If you have done any work, within the past 60 years with the Federal Government, then you have probably heard of the Data Universal Number System or DUNS. It is the data format that identifies organizations doing business with the government.

GSA, who administers the program, awarded a new contract in 2018 to Ernst & Young to dispense new organization identifiers. The new Unique Entity IDs (UEIs) will replace the current DUNS numbers. Ernst & Young will also manage the transition. (Nextgov October 13, 2021)

GSA is working with agencies to test the old and the new numbers prior to the final cutover, planned for April 2022. However, before the switch from DUNS numbers to UEIs takes place, GSA through the Integrated Award Environment program would like to work with some testers to ensure smooth sailing before the final cutover. (ibid)

According to Interact.gov, “volunteers get scripts which walk through various Unique Entity ID (SAM.gov) functions, such as requesting and receiving a Unique Entity ID (SAM.gov) or how to deal with error scenarios. Each test script takes about 20 minutes or less. You test at your own pace and send us your feedback.” This is extremely necessary because the DUNS is a nine-number string and the UEI is a 12-digit alphanumeric code. (ibid)

The program office recently released new help resources through the Federal Service Desk under a dropdown option under FAQ. It is also accessible through a large green button icon on the fsd.gov homepage. (ibid)

This large-scale modernization touches every single entity that does business with the federal government. GSA is hopeful their call for superusers will enable a smooth transition.

Questions about the UEI and how you might get ahead of the curve and get yours? Give us a call.

 

 

MAS BPAs, are a good thing

When federal agencies need to place product or service orders, on a recurring basis, they often turn to Multiple Award Schedule (MAS) blanket Purchase Agreements (BPA.).

A MAS BPA is an agreement established by an authorized ordering activity with a Schedule contractor to fill repeat demands for supplies or services, in accordance with FAR 8.405-3.  MAS BPAs and all succeeding orders have the same terms and conditions as the initial Schedule contract. MAS BPAs save the government time and money and give agencies control over their procurements. (GSA Interact August 18, 2021)

MAS BPA benefits:

  • Easier for agencies to fill recurrent needs
  • Efficient for agencies contracting for similar types of work
  • Savings in the form of volume discounts
  • Consistency within the terms and conditions of the BPA
  • Decreases in procurement costs, acquisition time, and administrative effort
  • Small business set-aside procedures assist the government in meeting socioeconomic goals (ibid)

MAS BPA features:

  • On-Ramps – allowing additional contractors as required or to refresh small business participation
  • Funding – funding is required only when an order is placed
  • Faster Ordering – more streamlined ordering process
  • Estimated Value – no minimums or caps
  • Agency Level Terms and Conditions – agencies may add terms and conditions as long as there is no conflict with the original MAS contract terms and conditions
  • Category Management – as outlined by the Office of Management and Budget, all MAS BPAs support category management (ibid)

As a mechanism for promoting fair competition, FAR 8.405.3(a)(3)(i) states a preference for multiple-award MAS BPAs. In addition, MAS BPAs may be extended past five years if necessary to meet program requirements. Some agencies have long-term MAS BPAs to meet agency missions. (ibid)

A single-award MAS BPA can not exceed one year, however, it may have four one-year options. The head of an agency approves all single-award BPAs exceeding $100M. In addition, Order Level Material (OLM) procedures are allowable at the BPA or order level to add contract support items, making MAS BPAs a win for government agencies and contractors. (ibid)

Questions about MAS BPAs or a GSA Schedule award? Give us a call.