|
Six Steps to Government Contracting
Learning about electronic commerce and doing business with the government can seem like a complex undertaking. However, it can be easily understood by taking it one step at a time. The six steps outlined below offer a simple process for businesses to follow as they work toward their government contracting and electronic commerce goals.
Government contracting is not for everyone, however. It is beneficial to take a moment to take a readiness assessment of your company before you continue. The government market is not a solution to a business that is not strong in its commercial market, but it can be an opportunity to expand a healthy business into a new market segment. As government agencies follow many rules and regulations not pertinent to the commercial world, care should be taken to avoid errors which could have serious impact on your business. Consider the following Government Contracting Readiness Assessment:
Critical Success Factors
Financially stable/adequately capitalized?
Demand for Product or Service
Adequate time to devote to government contracting
Pricing and Past Performance
Technical Expertise:
Marketing
Basic computer skills, esp. Internet
Organization and Management
On time production/service
Quality control
Integrity/Ethics/Vision
Honesty
Long term goals
Patience/Endurance
Owner of the Company
On-Site?
Committed to government contracting efforts?
Willing to spend the necessary company time needed for success?
Subjective
Housekeeping and general appearance
If you have serious doubts on any of the above, you may want to reconsider entry into this market at this time. We would be glad to discuss this with you and can refer you to resources within Rhode Island – many free of charge – which may assist you in strengthening your business. Visit the Every Company Counts web site at www.everycompanycounts.com (1-888-384-9704).
[Steps 1-3] [Steps 4-6]
Step One: Electronic Commerce (EC) Basics
A business enterprise that wants to begin doing business with the federal government must enter the world of electronic commerce. EC is the paperless exchange of money and business document s over the Internet. EC increases the speed and accuracy of electronic data exchanges. The power and profitability of electronic commerce can be harnessed by any business through the use of:
Review your company's internet and EC capabilities to send and receive emails, navigate the internet, and download solicitations.
Step Two: Identify Your Product
Many companies have a broad or diverse product line, while other may offer a single product or service. In order to register as a government contractor, a business must clearly identify the products and/or services it wishes to sell. Because government agencies may differ in their procurement methods and descriptions of the goods being solicited, 3 primary coding systems are used to clearly identify specific business types and product/services offered.
- SIC Codes: The 4-digit Standard Industrial Classification codes were developed by the U.S. government initially to allow statistical comparison between different types of businesses as a way to measure economic growth. SIC codes sometimes make a close distinction between the things a business does; therefore, companies must be careful when using and searching for them. For example, “drycleaning plant equipment & supplies – wholesale”, drycleaning plant construction – general contractors”, and “re-refining drycleaning fluid” are each identified by a different SIC code. To search for SIC codes, visit OSHA’s Standard Industrial Classification Search Web Page at http://www.osha.gov/pls/imis/sicsearch.html.
Examples of SIC codes are:
5021 – Furniture household, office, restaurant, and public building – wholesale
2521 – Furniture, office: wood
2521 – Panel furniture systems, office: except wood
- NAICS Codes: In 1997 the Office of Management and Budget announced the adoption of the 6-digit North American Industrial Classification System. Canada, the U.S., and Mexico all use NAICS Codes in their NAFTA trade agreements. (SIC Codes are still used with commerce elsewhere). For more information about NAICS and SIC codes and how they correspond to each other, see http://www.census.gov/epcd/www/naics.html.
Examples of NAICS Codes are:
334122 – Non- upholstered Wood Household Furniture
334111 – Electronic Computers
323110 – Commercial Lithographic Printing
- FSC Numbers: The 4-digit Federal Supply Codes generally encompass both Federal Supply Codes, which identify specific products, and Product Service Codes, which identify services. Unlike Federal Supply Codes, Product Service Codes always begin with a letter (alpha). Lists of FSCs for products and services can be found online at: http://www.dlis.dla.mil/h2.
Examples of FSCs are:
6105 – Motors, Electrical
J059 – Maintenance and Repair of Equipment- Electrical and Electronic Equipment Components
R604 – Mailing and Distribution Services
Step Three: Identify Your Market
The federal government purchases billions of dollars worth of goods and services every hear, and it does so through hundreds of different purchasing offices. A prospective government contractor must learn where the opportunities are and which ones will be the most profitable. It is possible, using the methods discussed below, for a business to identify the government agencies and offices that purchase what it sells. It is also possible to review data about previous purchases made by different agencies and contract award histories. This information is crucial to any business trying to determine its potential success in the government contracting market.
Micro-Purchases: For small quantities of everyday items valued at $2,500 or less, the government uses the “SmartPay” purchase card. These so-called “micro-purchases” are not subject to competitive bidding. Government purchasing offices are always looking for vendors that accept the SmartPay card.
Small Business Specialists representing each DoD military department are excellent sources of information on micro-purchases and the Simplified Acquisition Procedures. Contact the appropriate Small Business Specialist to find out what goods are solicited and how best to leverage micro-purchase opportunities for your area of interest. A listing and handbook are available at: http://www.acq.osd.mil/sadbu/publications/sbs/sbs.html.
Posted Solicitations: As the contract values increase, other options for researching the market come into play. Solicitations for acquisitions valued at over $2,500 are posted on a number of government procurement Web sites. A few that post solicitations and award data are FedBizOpps, the Electronic Posting System, and The Defense Logistics Agency Procurement Gateway. In reality, there are hundreds of Web sites that may post government solicitations from time to time. You may wish to track down procurement Web sites for specific government agencies on your own; however, the great majority of opportunities will be posted on a handful of primary sites including those mentioned above.
Procurement Technical Assistance Centers or PTACs are an excellent source of support for any business seeking government opportunities. PTACs provide detailed information on finding and winning contracts and sub-contracts.
[Steps 1-3] [Steps 4-6]
|
