Government Procurement – Dispelling The Myths

Report
Productized Solutions That Drive Cost Efficiencies
Government Procurement-Small Business
BGOV
A wholly owned division of
Brill Worldwide Investments, Inc.
482 Norristown Road, Suite 114
Blue Bell, PA 19422
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI'
May 2012
Phone: 484.351.8305
www.brillworldwide.com
REALITY- Doing Business with the
Federal Government
Myths- Legends- Lies of Government Procurement
 The Government Does Not Pay!
 Who was Willie Sutton?
 On Time Payments or Interest- Prompt Payment Act 1982 Amended
1999- 30 Days or Monthly Compounded Interest
 Federal Spending Debate Dominated by Debt Reduction Politics
 The Government Does Not Buy What I Sell!
 The U.S. Government - World's Largest Buyer of Products and
Services-Nearly $500 Billion Yearly
 The Government Buys Just About Every Category of Commodity and
Service Available
http://www.governmentbids.com/cgi/en/bidding.advice.articles/Article/federal-contract-opportunities-for-your-business
Source: Washington Technology, October 2011
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI'
May 2012
REALITY- Doing Business with the
Federal Government
Myths- Legends- Lies of Government Procurement
 The Paperwork is Insurmountable
 Registrations Online with CCR and ORCA
 Submissions Like Pitching Your Largest Client Without Additional
Sales Aids
 We don’t have the time
 Additional Income Revenue Stream
 Partnerships, Mentor Relationships Spread the Workload
 Federal Government is the Fortune 1 Company
 PAREDO- Government is or can be your largest customer
http://www.governmentbids.com/cgi/en/bidding.advice.articles/Article/federal-contract-opportunities-for-your-business
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
REALITY- Doing Business with the
Federal Government
Myths- Legends- Lies of Government Procurement
How Can I Compete with the Large Prime Contractors
Small Business Set Aside- Federal Purchases- Agencies Achieved
Procurement Goal of 23% for 2010-2011
Procurement Goal 30% for 2011-2012
Ultimate Procurement Goal of Obama Administration 40%
Achieved by Small Business Prime Contract & Mentor/
Protégé
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
REALITY–Tips To Doing Business
with our Government
 Highly Competitive Over Past 3 Years Number of Companies Marketing to Federal
Government has almost tripled
 Small Business Set Asides- Preferences
 SDVOSB, VOSB (self certify), WOSB
 Regional Preferences, Hub Zones
 8A
 Native American
 Shrinking Federal Budget
 Approximately 20% Reduction- $600Billion
S500 Billion
 Mission Critical Funding
 Administration Procurement Strategies & Focus
 Value Added Reseller OUT- Elimination of the Middle Man
 Distributor/ Owners IN- Must Own Hardware / Proprietary Services
 Promote REAL Small Business Development
 Keys to Success
 Procurement Officer Familiarity
 Agency Drive
 Partnering
 Sub Contracting
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI'
May 2012
REALITY–Tips To Doing Business
with our Government
 Additional Keys to Success
 Track Record
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Accurate, Comprehensive, On Time Proposal Submission
Campaigning
Realistic Price
Need a Productized Solution
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Product Equals Commodity
Differentiator
Integrated Product Solution Addressing Need
Pull Sale vs. Push Sale
 Predominantly Only Mission Critical Processes Being Funded
 Establish Track Record within Agencies
 Establish Partnerships- Small Prime Companies rather than Mega
Primes
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI'
May 2012
System vs. Product Sales
SYSTEM
PRODUCT
PULL SALE
PUSH SALE
High Margin
Commodity Price Sensitive
Relationship Sale- Longer Cycle
One and Done- Short Cycle
Comprehensive Solution
Problem Specific
Multiple Recurring Revenue
Streams
Single Revenue Stream
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI'
May 2012
REALITY–Tips To Doing Business
with our Government
 Need to Know About Procurement
 White House Apparatchiks- reside within Agencies to Monitor
Small Business Participation Compliance
 Visit Capital Hill Representatives- Introductions on Specific
Opportunities
 Keep in Mind When You Have Someone Representing You – It Helps to be a
Supporter
 De-emphasis on Lobbyists- ‘LNG’
 Strong Ethics Push by Administration
 De-emphasize Special Interest Groups
 Procurement Officers (PCO)
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Over Worked
Tremendous Oversight
Multiple Contractors
Old Computer Technology
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
REALITY–Tips To Doing Business
with our Government
 Additional Things You Need to Know About Procurement
 Get to the Decision Maker- (It’s not the Procurement Officer)
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Conferences
Face to Face Networking
Mentor Company Introduction- Establish track record / past performance
Small Business Advocates within Government Agencies- interface
Follow-up, Follow-up, Follow- up
 Learn How to Write a Good Proposal
 Attend Writing Conferences
 Hire or Partner
 Pricing- Margin Compression
 Was 5% to 8% Profit Plus all Overhead
 Now 2% to 5% Profit plus Portion of Overhead
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Federal Business Opportunities –
http://FedBizOpps.gov
 Government Repository for Procurement Opportunities-
 NAICS codes (North American Industrial Classification System)
 Small Business Administration Based on Revenue or Number
of Employees
 Ex. NAICS 541611- Administrative Management and General
Management Consulting Services: $7.0 million (3 year average)
 Ex. NAICS 517911- Telecommunications Resellers: 1,500 employees (3
year average)
 Set Aside Requirements Total Small Business
 Additional Restrictions i.e. SDVOSB, VOSB, WOSB
 Competitive 8A, Hub Zone
 Unrestricted- N/A
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Federal Business Opportunities –
http://FedBizOpps.gov
 Contract Awards
 IDIQ (Indefinite Delivery Indefinite Quantity)
 Indefinite Quantity During a Fixed Time Frame
 Base Year Plus Option Years
 Quickens the Process
 BPA (Blanket Purchase Agreement)
 Commodity Purchase Focus- Authorized Supplier

General Services Administration Schedule
 Must be Registered / Approved to be on Schedule
 Lengthy Application Process- No Guarantee of Purchase

Product Sales- Commodity Pricing
 Lowest Price Technically Acceptable (LPTA)
 Services / Solution Sales
 Past Performance
 Technical Capabilities
 Price
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Federal Business Opportunities –
http://FedBizOpps.gov
 Federal Acquisition Regulations (FARS) http://www.acquistion.gov/far/
 Regulation Guidelines Specified per Solicitation
 FAR 52.212-3 Offeror Representations and Certifications
 Affirmation That One is Either Current within CCR/ ORCA or Re-affirming
Based Upon the Specific Solicitation

Posted Opportunities
 Sources Sought
Determination Whether Small Business or Small Business Class can Perform
 Market Research Information or Planning Purposes Only
 Responses are Not Offers and Cannot be Accepted by the Government to
Form a Binding Contract- No Obligation
 Requesting Basic Information- Response to Draft SOW
 Limits Usually Placed on Response- 1to 2 Pages Unless Specified
 Short Response Time

Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Federal Business Opportunities –
http://FedBizOpps.gov
 Posted Opportunities
 Pre-Solicitation
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Notification Document that Solicitation is Forthcoming
Precedes Solicitation Normally by Up to One Month
General Information- Set Aside and NAICS Code Requirements
Lists Contacts (Procurement Officer) & Location
 Opportunity to Address Questions
 Provide Overview of Opportunity or Draft SOW
 Solicitation
 Actual Opportunity
 All the Information Supplied in the Pre-solicitation
 Submission Requirements / Procedures Specified
 Proposal Due Dates Anywhere from a Few Days to One Month
Depending Upon Complexity
 SSA Solicitation for Enterprise Audi Visual Products and
Services- 16 Amendments / After 1 Year- Cancelled
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Federal Business Opportunities –
http://FedBizOpps.gov
 The Real Skinny
 Unless You’re Bidding Products, If You’re Answering a
Solicitation.. It’s Already Been Awarded
 Be Wary of the Incumbent- You Can Inquire
 Get in Front of the Procurement Officer but Don’t Stalk
 Ask Questions
 Attend Conferences
 Sources Sought and Pre-solicitation Provide Opportunity to
Forward Capability Statement- Best Foot Forward
 Search Data Base via NAICS, Agency, Set Aside
 List Yourself as an Interested Vendor
 Sub-Contracting and Partnering- Sometimes a Piece isn’t so Bad!
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Mining for Opportunity
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
Agency Website- Small Business Focus Areas & Opportunities
Agency Small Business Advocacy
 DHS (Homeland Security) Sponsors Monthly Procurement One on
One Procurement Interviews.
 FIDO- It’s Not the Dog!- Federal Interagency Database Online
 Advance Acquisition Plan (AAP)
 Ability to Identify Budgeted Planned Future Opportunities
 Sorted by NAICS Code
 Set Aside and Contract Vehicle i.e. IDIQ, BPA
 Brief Description, Procurement Officer Contact Information
 Other Agency Procurement Portals
 Army Single Face to Industry- https://acquistion.army.mil/afsi
 Navy Electronic Commerce Online- https://www.neco.navy.mil
 Additional Procurement Portals
 FedConnect- https://www.fedconnect.net/Fedconnect/
 FedBid- http:// www.fedbid.com/
 The Federal Budget
 Administration Goals and Objectives
 Focus Areas by Agency
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
REALITY–Why Do Business with our
Government
 Contract Award Time Frame- Firm Fixed Price
 Initial Base Year
 Multiple Option Years- 4 to 5
 Opportunity to extend services additional years after options
 Additional Recurring Revenue Stream

Government -Overhead Absorption / Overhead Eater
 Small Margin- 2-4%
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
Include all Salaries
Include all Overhead
 Private Sector Business



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Bottom Line- robust ( Super Profitability)
Buy Market Share (Supra Profitability)
Pay Bonus’
Capital Improvements
Proprietary and Confidential Property of
Brill Worldwide Investments, Inc 'BWWI‘
May 2012
Contact Information
BWWI, Inc
BRILL WORLDWIDE INVESTMENTS, INC
Office Court at Walton Point
482 Norristown Road, Suite 114
Blue Bell, PA 19422
484-351-8305
www.brillworldwide.com

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