Government Contracting - for South Korean Firms Overview - Jennifer Schaus

US Government Procurement OVERVIEW

October 7. 2014

AGENDA

October 7. 2014

Welcome!

환영합니다

October 7. 2014

AGENDA Introduction

Presentation Conclusions / Recommendations Q&A October 7. 2014

Introduction Company Name

Product / Service # Years In Business

Any Government Customers?

October 7. 2014

Introduction Jennifer L. Schaus

20 Years Govt Contracting Washington DC Based Embassies / Foreign Clients Contract Vehicles / Fed Gov Sales October 7. 2014

Presentation

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WHO? The US Federal Government

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The US Federal Government World’s Largest Purchaser Goods / Services $500B (USD) Annually Processes Regulated by the FAR October 7. 2014

The US Federal Government The FAR Rules of Acquisitions How to Purchase Scope, Policy, Procedures (DFAR = Dept of Defense) October 7. 2014

The US Federal Government The FAR Reference Website: www.acquisition.gov/far October 7. 2014

The US Federal Government Multiple Executive Agencies Separate Budgets, Agenda, Mission Agency Head = Political Appointee Program Managers Contracting Officers = CO October 7. 2014

The US Federal Government 15 Executive Level Departments 70 Independent Agencies 68 Boards & Commissions Congress – House & Sentate US Courts October 7. 2014

The US Federal Government Risk Adverse Comfort with known entities Slow to change Budget conscious October 7. 2014

The US Federal Government Fair market price Small business set-asides Competition Available public data October 7. 2014

The US Federal Government Contractors Long Sales Cycle Paperwork / Forms Relationships Matter Competitive October 7. 2014

WHEN DO THEY BUY?

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The Federal Fiscal Year October 1 – September 30 Note: Q4 = Use it or lose it policy High spikes in Q4 spending

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Budget Process Agencies make budget request House & Senate vote / agree President signs Money allocated Stalemate = CR, Continuing Resolution October 7. 2014

WHAT DO THEY BUY?

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What is Purchased?

Airplanes to Zippers Consulting Services Dental Services IT Services Security Janitorial October 7. 2014

WHERE DO THEY BUY?

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Where Purchases Occur * Washington, DC = Policy/Purchases * Virginia, Maryland, Alabama, California, Texas, New York * Worldwide October 7. 2014

HOW DO THEY BUY?

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How Goods/Services Procured Note: The FAR = Rules 1 - Conduct Market Research Internet Trade Journals Past Purchases October 7. 2014

How Goods/Services Procured Note: The FAR = Rules 1 - Market Research - FAR Part 10 * Sources exist? * Meet agency requirements? * Commercially available?

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How Goods/Services Procured 2 – Requirements - FAR Part 11 Describe agency needs Promote full & open competition

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How Goods/Services Procured 3 – Acquisition of Items – FAR Part 12 * Procedures for Solicitation, Evaluation, Award * Contract Type * Past Performance * Price Reasonableness October 7. 2014

How Goods/Services Procured “Sources Sought�

Government is surveying the marketplace for commerciality

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How Goods/Services Procured RFI = Request for Information * Government request more detailed information from vendors * Not price, mostly capabilities specific to agency needs October 7. 2014

How Goods/Services Procured RFP = Request For Proposal * “Big Money” * $25k + www.FBO.gov * Very competitive October 7. 2014

How Goods/Services Procured RFP = Request For Proposal * Solicitation will include evaluation factors = SECTION M ie. Price, Past Performance, etc. * How your proposal is weighted October 7. 2014

How Goods/Services Procured Current Environment LPTA vs. Best Value Lowest Price Technically Acceptable October 7. 2014

How Goods/Services Procured NOTE: LPTA does not always include Past Performance as evaluation criteria

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How Goods/Services Procured Types of Contracts

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How Goods/Services Procured Common Types of Contracts IDIQ – Indefinite Delivery/Quantity GWAC – Government Wide Acquisition Sole Source - Unique BPA – Blanket Purchase Agreement October 7. 2014

How Goods/Services Procured IDIQ & GWAC Contracts

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IDIQ & GWAC * Typically a short list of vendors * Pre-qualified * Price limits * Compete to Compete * No guarantee * Buyer has money allocated October 7. 2014

IDIQ / GWAC Example: GSA & VA Schedules 5 Year Contract / 3 Renewals = 20 Yrs Lowest Price MAS = Multiple Award Schedule Sales Quota Requirement October 7. 2014

IDIQ / GWAC Example: GSA & VA Schedules Amazon / EBay System Keep out competition Set-asides within for small business Used by Fed, State, Local, Intl Approx 10% of Fed Purchases October 7. 2014

IDIQ / GWAC Example: GSA & VA Schedules Dedicated RFP notifications Less than $150k = direct award Easy to use Eliminates paperwork for government October 7. 2014

IDIQ / GWAC Example: GSA & VA Schedules = MARKETING TOOL ONLY! NOT REQUIRED!

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IDIQ / GWAC Example: GSA & VA Schedules 20k Vendors 39 Schedules Gives buyers a method to get to YOU! October 7. 2014

How Goods/Services Procured Sole Source Contracts

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Sole Source Contracts Large or Small Business Unique product / service Specific brand name Fills an urgent need Justification Required!

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How Goods/Services Procured Blanket Purchase Agreements

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BPA – Blanket Purchase Agreements Money is allocated Short list of vendors Usually for product Fulfills requirement but unspecified quantity ie. medical supplies, auto parts October 7. 2014

How Goods/Services Procured Dollar Amounts Broken Down

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How Goods/Services Procured $3,000 and < Contracts â&#x20AC;&#x153;Under the mirco-thresholdâ&#x20AC;?

Government P-Card (Purchase) Credit Card Direct Purchase Small or Large Business October 7. 2014

How Goods/Services Procured $3,000 - $25,000 Government obtains 3 written offers No RFP Required October 7. 2014

How Goods/Services Procured $3k-$150k Simplified Acquisition- FAR Part 13 Reserved for small business If no small business, then unrestricted Growing in popularity/usage October 7. 2014

Pricing & Bids

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Pricing & Bids Time & Materials Cost Plus Firm Fixed Price

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Pricing & Bids * Time & Materials – bid hours at approved rates; profit built in. * Cost Plus – reimbursed labor/materials; incentive; profit % fixed. * Firm Fixed Price – flat rate.

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Conclusions / Recommendations

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* Competitive Market * Performance & Price Matter * Relationships with government * Relationships with partners * Lead with your capabilities October 7. 2014

* Make it easy for govt to purchase from you & find you * Solve a problem / fulfill a need * Leverage public data * Be specific & strategic!

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Have a government Business Plan Stay abreast of events, news, opps Leverage associations Estimate 12-24 months for sale Estimate $150k + per yr investment October 7. 2014

Thank You! 고맙습니다 Questions & Answers Jennifer Schaus Washington, DC Government Contracts Consulting Services +1–202–365–0598

www.JenniferSchaus.com October 7. 2014