Six Steps to Government Contracting

[Steps 1-3] [Steps 4-6]

Step Four: Registrations

1) State of Rhode Island: The Rhode Island State Division of Purchases is the central contracting authority responsible for all state departments and agencies with the exception the exceptions of certain quasi-public authorities. Contracts are awarded to vendors who are registered on the state's web site at: http://www.purchasing.ri.gov.

2) Local Municipalities: Many, but not all, Rhode Island counties, cities and towns have the ability to post solicitations electronically. You will need to contact each to determine their individual requirements. For further information on selling to local municipalities visit: www.rileague.org and http://www.uscommunities.org

3) Federal Registrations: To conduct business with the government, a vendor MUST (with rare exceptions) complete the Central Contractor Registration (CCR) process, and is advised to complete Solicitation Mailing List Applications where required (see below) for each government agency it wants to serve.

The CCR is the primary database for information about companies that want to do business with, and receive payment from, the Department of Defense (DoD). According to the Defense Federal Acquisition Regulation Subpart (DFARS) 204.7302, prospective contractors must be registered in the CCR database prior to the award of a contract, basic agreement, basic ordering agreement, or blanket purchase agreement, unless the award results from a solicitation issued on or before May 31, 1998.

The CCR database contains business information submitted by over 150,000 contractors. Contractors are only required to register one time and to complete annual updates and/or renewals. Companies can register and update their registration profiles online by visiting the CCR Home Page at http://www.ccr.gov. It is recommended that all registrants refer to the CCR Handbook available for viewing and download at http://www.ccr.gov/handbook.cfm

(NOTE: In some cases, goods or services paid for using a government-wide purchase card do not require the vendor to be registered in the CCR database. However, it is strongly recommended that any business that wants to sell to the government complete the CCR process. For additional information on CCR registration exemptions, companies should contact their local ECRC office.)

Businesses preparing to register with CCR should first make sure they have obtained an Employer Identification Number (EIN) and a Data Universal Numbering System (D-U-N-S®) number as discussed below:

ORCA - Online Representations and Certifications Application http://orca.bpn.gov/

ORCA is an e-Government initiative that was designed by the Integrated Acquisition Environment (IAE) to replace the paper based Representations and Certifications (Reps and Certs) process.

Prior to ORCA, vendors were required to submit Reps and Certs for each individual large purchase contract award. Now, using ORCA, a contractor can enter their Reps and Certs information once for use on all Federal contracts. This site not only benefits the contractor by allowing them to maintain an accurate and complete record but also the Contracting Officer as they can view every record, including archives, with the click of a mouse.

You must be registered in ORCA if the solicitation you are responding to requires that you have an active registration in CCR.

Two items are needed prior to registration; (1) An active record in CCR, (2) An MPIN from that active CCR record. Visit www.ccr.gov to complete these tasks if you haven’t already.

EIN - An employer identification number is a nine-digit number (12-3456789, for example) assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for tax filing and reporting purposes. To apply for an EIN, use Department of the Treasury Form SS-4. The information provided on this form establishes a business tax account for the company. Download the form from the following Internal Revenue Service (IRS) Forms Web page: http://www.irs.gov/forms_pubs/formpub.html. Instructions included on the form offer other options for obtaining an EIN number, such as by telephone or fax. If a business is not sure if it already has an EIN or not, it should contact the IRS at 1-800-829-1040.

D-U-N-S® Number - D-U-N-S® numbers are issued free to businesses by Dun & Bradstreet, Inc. The D-U-N-S® number is emerging as the government’s preferred method of identifying contractors. To obtain a D-U-N-S® number, visit the Dun & Bradstreet Web site at http://www.dnb.com/dunsno/dunsno.htm.

The CCR registration process also includes:

• Assignment of a Commercial and Government Entity or CAGE code that uniquely identifies a company (or business unit within a company) to the federal government, and
• Submittal of financial accounts information so that contractors can receive payment using Electronic Funds Transfer or EFT technology.

Step Five: Market Your Company
As with any business, the only thing more important than providing the right product at the right price is getting the product in front of the right audience. Successful marketing requires action, persistence, and determination. There is always, it seems, another angle to play, another potential customer to contact, another way to attract business, etc. Marketing efforts alone are no guarantee of business success. However, not marketing at all is one sure way to business failure. When a company relies solely on government procurement Web sites to link up with business opportunities, other strategies to attract the attention of potential customers may be ignored. Listed below are several recommendations for marketing goods and services to the federal government.

The Small Business Specialists and Procurement Technical Assistance Centers mentioned in Step Three can help small businesses market themselves to prospective government customers. Small Business Specialists are especially useful because they are aware of marketing "etiquette" specific to the DoD agencies and procurement offices they represent. For example, some procurement offices prefer that contractors do not market directly, others may welcome any information a contractor cares to provide, and some prohibit direct contact of any kind between vendors and government personnel. There are many variables having to do with a particular agency’s function, size, procurement procedures, and product/service needs.

Agency-specific Procurement Web Sites include instructions for how to conduct business with a particular agency, including facility locations, procurement points of contact (POCs) for specific commodities and services, and various ways a vendor can market a product or service to the agency in question.

Small Business Development Centers or SBDCs, not to be confused with Small Business Specialists, offer one-stop assistance to small businesses by providing a wide variety of information and guidance, up-to-date counseling, training, and technical assistance in all aspects of small business management. SBDC services include assistance with financial, marketing, production, organization, engineering and technical problems, and feasibility studies. Special SBDC programs and economic development activities include international trade assistance, technical assistance, procurement assistance, venture capital formation and rural development. There is a network of over 1,000 SBDC service centers in the U.S. located at colleges, universities, community colleges, vocational schools, chambers of commerce, and economic development corporations. For a directory of SBDCs, see: http://www.sbaonline.sba.gov/services/.

A large number of Subcontracting Opportunities for small firms exist with large companies that win large government contracts. These "prime contractors" are frequently required, as outlined in their government contracts, to subcontract a certain percentage of their work to small businesses. Small firms can market themselves to prime contractors with the help of the Department of Defense Subcontracting Directory. This directory lists prime contractors (by State) holding contracts valued at $500,000 or greater ($1 million for construction contracts). Also listed are the prime contractor’s small business liaison officer and a brief description of what the company does (e.g., "engineering services for protective facilities"). Also available is the SBA's SUBNET.

The DoD is making purchases increasingly from General Services Administration (GSA) schedules as the DoD acquisition workforce is reduced.

Other DoD business assistance programs include:

The Small Business Innovation Research (SBIR) program, which contracts with small technology firms to undertake research and development projects that have the potential for commercialization in the private sector and/or military markets. The DoD program, funded at several hundred million dollars each year, is part of a larger federal SBIR program administered by ten federal agencies. See http://www.acq.osd.mil/sadbu/sbir/homepg.htm.

• The DoD Mentor-Protégé Program, which seeks to encourage DoD prime contractors (mentors) to develop the technical and business capabilities of small disadvantaged businesses and other eligible protégés. The program offers mentors credit toward their contractual subcontracting goals and some reimbursement of costs in exchange for helping protégés to compete more successfully for DoD contract awards. See http://www.acq.osd.mil/sadbu/mentor_protege/.
• The DoD Thrust Program is designed to increase the awareness of small businesses concerns of DoD contracting and subcontracting opportunities available in the environmental, manufacturing, health care, telecom-munications, and management information industries.

Other strategies for increasing visibility and getting noticed by a potential customer include:

• Providing examples in marketing materials of past accomplishments and demonstrations of performance, especially projects that involved government agencies.
• Informing potential customers of the company's registration status (CCR, 8a, etc.) and ability to accept purchase card and EFT payments.
• Providing information, which will be welcomed by most government-funded agencies, about extended hours/services during the end-of-fiscal-year crunch.
• Don’t forget the most important marketing message for any business: "We are THE ONES who can meet your needs - and this is why."

As always, person-to-person contact is the best way for buyers and sellers to develop mutually beneficial relationships. In the end, the person with the most purchasing influence is the one who will be using the product or service - the "end user." This is an important person to get to know.

Step Six: Learn the Federal Acquisition Regulation
The Federal Acquisition Regulation or FAR is lengthy, complex, and must be closely adhered to by both the purchaser and the vendor. Therefore, contractors are advised to take the time to understand these regulations, however tedious.

The FAR contains uniform policies for acquisition of supplies and services by executive agencies. The FAR is issued, maintained, and revised jointly by the Department of Defense (DoD), the General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA). The official text of the FAR appears in the Code of Federal Regulations at 48 CFR Chapter 1.

The principle type and purpose of a contract, as well as other applicable provisions and clauses of the FAR, are usually listed on each government solicitation.

Provisions of the FAR cover things like:

• Electronic bids (Part 14.202-8)
• Electronic commerce in contracting (Part 4.5)
• Electronic funds transfer (Part 32.11)
• Payment by electronic funds transfer-central contractor registration (Part 52.232-33)
• Set-asides for small business (Part 19.5)
• Service contracting: small business certificate of competency (Part 37.108)
• Status as a qualified HUBZone small business concern (Part 19.1303)
• Encouraging small business participation in acquisitions (Part 19.202-1)
• Notice of emerging small business set-aside (Part 52.219-20)
• Incentive subcontracting with small disadvantaged business concerns (Part 19.1203)
• Micro-Purchases & Simplified Acquisition Procedures (Part 13)

Various federal agencies have enacted their own acquisition regulations to implement and supplement the requirements of the FAR. For example, the Defense Federal Acquisition Regulation Supplement is called the DFARS and the Air Force Federal Acquisition Regulation Supplement is called the AFFARS. The AFFARS contains information that implements the FAR and DFARS and also contains supplementary information that is unique to the Department of the Air Force. The AFFARS is not a stand-alone document and must be read in conjunction with the FAR and DFARS.

The best source for learning more about the FAR and its various supplements can be found at the Air Force’s "FARSite," located on the Web at http://farsite.hill.af.mil. Another good site that is more specific to just the FAR is GSA’s Federal Acquisition Regulation Web Site located at http://www.arnet.gov/far. Both sites offer opportunities to download all or part of the regulations, news and updates, and libraries of related resources. Changes to the FAR are published in Federal Acquisition Circulars (FACs), available at http://www.arnet.gov/far/fac.html.

It is the contractor’s responsibility to be aware of applicable federal, state, and local regulations. Many organizations hold training seminars on federal procurement law including government contracting offices, PTACs, SBDCs, and private-sector entities. Again, the nearest Business Assistance Specialist or PTAC representative is a good source for more information on applicable contracting regulations.

[Steps 1-3] [Steps 4-6]