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December 01, 2008
Ask The Expert Dave PeaseProgram Manager, NH Procurement Technical Assistance Program; Topic: Selling to the Government - Big Opportunity for Small Business
Selling to the Government - Big Opportunity for Small Business By Dave Pease, Program Manager - NH Procurement Technical Assistance Program New Hampshire companies were awarded almost $1.8 billion in government contracts in FY 2007 (which ended September 30, 2008), an increase of 34% over the previous year. In any given year, the largest fraction of these dollars is received by large corporations - BAE and Insight Technologies, for example. However, hundreds of millions are spread across more than 1500 small businesses scattered throughout the state. Lucrative government contracts can be a windfall for businesses, but cutting through the red tape to obtain them can be daunting. So can managing them. The NH Procurement Technical Assistance Program (NH-PTAP) helps businesses navigate those government channels and connects them with prime contractors and subcontractors. The program is part of the New Hampshire Division of Economic Development's Business Resource Center, and receives funding from the U.S. Department of Defense. Being located within DRED allows clients to access the myriad of business assistance services under one roof. At some point it's natural for a business owner to think about selling to the government, and the NH-PTAP helps them to get there. In order to prepare, companies need to consider whether they have adequately developed business and technical systems, such as cost accounting and quality assurance programs. Then they need to make an educated decision as to whether the extra administrative burden is likely to be worth it. NH-PTAP also helps established government contractors compete more effectively, particularly with market research. Because most Federal spending is required to be transparent, enormous amounts of valuable information are free for the taking - if you know where and how to find it. New Hampshire companies provide exactly what the government wants - reliable, responsive, high quality products and services. This is why these same companies, big and small, have a great track record and remarkable growth in sales to government. For the past decade, NH-PTAP has been providing businesses with the information they need to competitively bid on contracts with the U.S. Department of Defense as well as Federal, state and local government agencies. That assistance includes market research, identifying business codes, registering on government contracting Web sites, matching a product or service to the purchasing needs of federal agencies, obtaining specifications, and locating Federal acquisition regulations. And it provides all of that free of charge. The NH-PTAP also offers frequent business training programs, from the basics of government contracting, to specific sales opportunities such as GSA schedules or selling to defense supply centers. The program also subscribes to an Internet search service that helps companies search all government databases and matches the company's products or services with specific needs of agencies. The NH-PTAP also helps NH businesses get face time with prime contractors, including participation in Matchmaker Events. Think of these events as speed dating with potential multimillion dollar contracts on the line. Over 30 New Hampshire companies attended one such event in New Haven, CT in October, taking advantage of the opportunity to market to over 70 government agencies and large companies in a single day. The events begin with training sessions for small businesses followed by opportunities for small businesses to mingle with corporate buyers and federal agency representatives. The real action happens with an all-day matchmaker event during which small businesses have 10-minute appointments with prime contractors and federal agencies. Those 10 minutes could result in contracts down the line, and NH-PTAP makes sure its clients are prepared to make the most of those precious minutes. Among past prime contractors who have been there are BAE Systems, Fuji Film and the U.S. Air Force. In 2007, NH-PTAP clients reported awards of over $285 million in prime (direct) contracts with government agencies, and more than $35 million more in subcontracts. According to the Defense Logistics Agency, this translates into over 6400 jobs. When the government awards a contract to a prime contractor, and they hire subcontractors, they have goals to meet for hiring small businesses, including women-owned businesses and veteran-owned businesses. The NH-PTAP helps the large prime contractors by helping them to find capable, responsive subcontractors, while at the same time helping the small businesses to find sales opportunities. Everyone wins. The NH-PTAP has 400 to 600 active clients at any given time. Four full-time staff are 100% dedicated to the program, and operate statewide from a central office in Concord. Our job is to help New Hampshire businesses bring Federal money into the state, and to keep state and local government contracts in this state as much as possible. We want our clients to stand out. For more information on NH-PTAP services, visit www.nheconomy.com/sell-to-the-government. About Dave PeaseDave Pease graduated from UNH with a degree in marine biology, and worked in environmental consulting for a number of years, while completing an M.S. in Resource Administration and Management. In 1983, he started his first business with two partners - an environmental testing laboratory located in Hampton, NH. The business flourished, and was sold to a large multinational corporation in 1988. Dave stayed on to manage the business as a subsidiary president, and grew the company to four divisions and a peak staff of 120. He later assisted in its resale to a major national laboratory network who kept him in NH until 1994, when he moved to Houston, TX to manage another facility for the same parent company. In 1996, he returned to NH and has been providing consulting services to small businesses ever since. In February of 2008 Dave became Program Manager of the NH-Procurement Technical Assistance Program (NH-PTAP). Questions and AnswersQUESTION: Can you provide examples of some products, atypical and common, that have been sold or might have the potential to be sold to the government.
ANSWER: This is a question that we are asked all the time. Unfortunately, although I can give an answer, most people don't find it very satisfying. That said, here goes: The US Federal Government is the largest single customer in the world, spending around $400,000,000,000 each year on goods and services. While there may be items/services that they don't buy, they are few and far between. While trying to think of something they don't buy, magic tricks popped into my mind...but I'm willing to bet that somewhere, in a commissary, or a gift shop, there are some that Uncle Sam has purchased. Recently, I saw a contract won by a New Hampshire company to provide shopping cart seat belts to the Defense Commissary Agency (they run all of the Post Exchanges and Base Exchanges in the world). Your government also purchases all kinds of professional services, scientific research and development, medical research - the list is endless. Clothing, office supplies, sporting goods, foodstuffs of all kinds, vehicles of all kinds. Of course, weapons systems and other military items are a very large market. A better question would be: "What Federal Agency might buy what I have to sell?" The NH-PTAP works with hundreds of New Hampshire businesses each year to help them find their individual answer to that question. Contact us for free and confidential assistance at www.nheconomy.com/sell-to-the-government
QUESTION: Do you know if there are any "matchmaking" events scheduled for 2009 in New England? ANSWER: Yes and no - I just returned from a meeting of the Northeast Regional Council, a Department of Defense - affiliated organization that sponsors major regional matchmakers. Our next regional matchmaker has not yet been scheduled, nor has a site been determined. However, each of these matchmakers is sponsored by a local PTAP organization. In the fall of 2007, the New Hampshire PTAP organized the regional event in Nashua. In June 2008, Vermont PTAP ran the event at Killington, VT. In October 2008, the Connecticut PTAC hosted one in New Haven.
QUESTION: You mention that any company looking to do business with the government needs to determine if the administrative burden is worth it. Can you elaborate on what the administration burden entails?
ANSWER: Sure. Companies that do business with the Federal government must, at a minimum, register in the Central Contractors Registry (CCR). In order to register in CCR, they must first obtain a DUNS (Data Universal Numbering System) number from Dun & Bradstreet (this is free). Other information required for CCR registration includes data on average annual revenues, a variety of contact information, and detailed banking information (this provides the government with the ability to pay you via electronic funds transfer - they do not pay by check). CCR registration must be updated annually. Most business contracts are governed by a body of state laws, called the Uniform Commercial Code (UCC). Federal government contracts are not subject to UCC, but are controlled and interpreted under Federal laws that are summarized under the Federal Acquisition Regulations (FAR). Some Federal agencies have their own acquisition regulations, in addition to the FAR - for example, the Department of Defense also uses DFARs. A good example of how the FAR differs from UCC is "Termination for Convenience". In all contracts, the Federal government reserves the right to unilaterally terminate the contract, without any fault of the contractor, and with very little recourse. They have to pay you for work done/goods delivered up to the point of termination, but are not responsible for the entire contract. Typical requests for bids (usually called "solicitations") are lengthy, complex documents - often 40-100 pages even for simple projects - with numerous requirements buried in tedious "boilerplate" contract terms and references. To submit a responsive bid, it is necessary to comply with all of the requirements of the solicitation - your bid will be disqualified if you miss a requirement, however minor. In a recent bid opportunity for carpentry work that I saw, there is a requirement to submit the contractor's fingerprint records with the bid. To summarize, there are basic administrative requirements, such as filing and maintaining your CCR. Beyond this, there is a complex body of regulations and contract law that you need to understand at least at a basic level. It can be a challenge to figure out what you're required to submit just in order to bid on a solicitation. These are only some of the administrative headaches that characterize doing business with the Federal government. Like most things in business, the hard part is figuring out how to do it right the first few times. Once you're used to it, it becomes routine - just part of doing business.
QUESTION: Not sure if I am directing this question to the right source. Recently, we submitted an RFP for services to the Department of Administration. Is there a way of tracking the progress of that RFP. Calls to the office have received no response? ANSWER: This is a good question. I assume that when you speak of the Department of Administration, you are speaking of the NH Department of Administrative Services, Bureau of Purchase and Property (http://admin.state.nh.us/purchasing/). There is no established system for tracking progress as proposals are evaluated and contracts are awarded, other than monitoring their web site both for proposal opportunities (http://admin.state.nh.us/purchasing/vendorresources.asp) and for contract awards (http://admin.state.nh.us/purchasing/Contracts_posteddte.asp?sort=cna). If your efforts still don't pay off, I recommend that you contact NH-PTAP for assistance by calling (603) 271-7581. We'll be glad to help. |