Federal Contracting Made Easy's podcast

In today's episode, we will be discussing Teaming Agreements from the Prime Subcontractor viewpoint. In addition, to defining the term teaming agreement, we will be discussing when to consider using one and the clauses that you will want to include in your agreement.

Step One Market Research Why? Well, you need to determine if the government purchases your products or services in your area. The Government has moved to larger nationwide procurement contracts. As a result, many of the contracts that were competed in your area may have been bundled or consolidated into these contracting venues. You need to answer the following questions. No, I have not listed every question but a few to get you started. Is there a federal market in my area? Is there a federal market for my niche? Can I be competitive in my niche? Can I compete against the competition? Do I have the past performance that the government is looking for? I think you get the idea now let's look at the second consideration. Step 1a - Secondly, you need to determine which specific agency uses your products or services. Develop a list of agencies that could be potential clients in the future. When first starting out it is advisable to review the list that you developed and only select three agencies to first target. Why three? It is easier to target three agencies that have the most potential to penetrate than to go after all 430 federal agencies. When selecting the agencies try to go after the smaller agencies first. Once you have worked for those three agencies select three more agencies to target next. Besides most experienced contractors will be concentrating on larger agencies. They are chasing the larger procurements. This leaves the door open to you a less experienced government contractor. Step 1b - Learn the Government Contracting Lingo In addition, it is earlier to learn the government language and systems with smaller agencies. Next, you need to review each of the three agencies' websites. Look for a document or page on “How to Do Business with (Agency Name. Don’t just gloss over the website. It is best to spend time understanding that agency’s mission and how they work with small businesses. How can your product or service help this agency with its mission? Step 1c - Third, research successful government contractors Perform a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis on the top-performing contractors for the three agencies selected. Don’t skip this step. This is going to help you figure out your competitive edge. Can you save the agency time, money, or resources? These are the things that you will put on your capability statement to help differentiate your business from the competition. The next step is to do a SWOT analysis of your business. Step 1d- Fourth perform your own SWOT analysis. You need to understand how your strengths and opportunities could help you win a government contract. Do you believe you can compete against their companies? If not, what resources do you need to be able to compete? Are these resources readily available? For example, do you need to hire an employee with a government contracting experience? Do you have the working capital to sustain an employee for a minimum of one year? Also, do you have working capital At the same time, you need to know your weaknesses and threats that could impact your success. Are there ways that you can minimize these weaknesses or turn them into opportunities? Better yet, do you have the skills necessary to bid on a contract? Have you performed on any commercial contracts that are similar to a government contract? Do you personally have any experience in the industry that you are in? Does the business have any experience? Step 1e - Fifth, you need to make a business decision on whether to pursue government contracts. If you and your business do not have any past performance your time would be better suited by going after commercial work and building your commercial portfolio. It is better to wait to go into government contracting when you have the resources (working capital, employees, past performance). Now, I am sure that this is rubbing some of you the wrong way. However, I do have your best interest at heart. Government...

The WOSB program was not in effect at that time. We can see that the program has skyrocketed from 2011 until 2017 when it dipped and then started another upward trend. Now, this trend is not what I expected!!! Total Contract spending showed, Figure 1, a downward trend starting in 2011 and ending in 2015. From 2015 till 2018 it was an upward trend. It started a downward trend in 2018 but rebounded in 2019. This is nothing like the trends we have seen in any of the other programs

Congress has stated that 3% of Prime Federal Contracting Dollars needs to be set-aside for Service Disabled Veteran Owned Small Businesses (SDVOSB). We want to see if SDVOSB received at least 3% for the last ten years. Facts: Total Contract Spending in the USA has increased by 7% Small Business Set-asides has risen by 2% HUBZone Set-asides has been decreasing by 78% 8(a) Set-asides has been reducing by 48%

Today on episode number 114 we will look at the HUBZone contracting dollars. No, the title is not wrong. HUBZone Contracting Dollars has been on a downward trend since 2010. Does that mean that the end of the HUBZone program? No, not necessarily. However, I believe changes will have to be made to the program.

Today we are going to look at SBA's 8(a) BD Program. Specifically, we are going to look at the trends in 8(a) contracting dollars over the last decade. We can see that SBA's contracting dollars have been decreasing. In fact, it is down by 48% from 2009. Furthermore, Participants in the program have been declining. Why is this happening? A bigger question is what is SBA doing to fix this issue?

Today, we are going to review the trends affecting small businesses in Government Contracting. We will review Federal Government contracting data for the last ten years and see what has happened. Federal spending has increased by 7.15% over the last ten years however small business contract spending in the last two years has declined. Small business contracting dollars is down over 19% the last two years.

SBA has made changes to the HUBZone program that went into effect on December 26, 2019. These changes will impact every HUBZone Certified Business. Find out more about the changes by listening now.

Hello and welcome to Federal Contracting Made Easy where we take the complex world of government contracting and break it into simple steps that anyone can follow. In episode number 110 I will be discussing my reasons for not becoming a government contractor. -intro- Over the last 35 years I have had thousands of companies approach me about becoming a government contractor. As a result, I feel that I have the experience necessary to tell you like it is. Government contracting is not for those that are not in it for the long haul. For example, it takes time to build relationships, learn the government language, learn how to capitalize on your proposals to win contracts, get through the numerous databases that the government uses and ultimately time and experience to become successful. Mistake #1 – Not Performing Market Research Market research is not just something you do when putting together your business and marketing plan. It is a necessary step to ensure that you spend your valuable time and resources appropriately. The number one resource that any business does not have enough of is time and money. Marketing your business to a government agency that does not use your product or service is a waste of not only your time (And the Governments) but also your money. If you had spent just a few hours performing market research this would not have happened. In addition, you could have already reached out to a Federal Agency that does use your products or services. This happens more than you realize and is very frustrating not only for you but also the government representative. Remember that you only have one chance to make a GREAT First Impression. What do you think that government representative’s impression of your business is going to be? Mistake #2 – Limited Bonding Capacity For general contractors the number one limiting factor for this business is bonding. Without bonding they cannot bid on a contract. Yes, bonding is not required on a lot of commercial contracts. Therefore, most new construction companies will not even know that they need bonding. But if you reviewed a few solicitations you would see that bonding is a common requirement on all contracts. Also reaching out to several free resources they would have informed you of the bonding requirement and provide a listing of bonding agents for you to contact. Mistake #3 - No Working Capital I cannot tell you the number of small businesses that want to get into government contracting and do not have access to a Cash, Line of Credit or loan to use as working capital. It may take the government 30 days at the earliest to 90 days worst case to pay you. Can you cover the operating expenses until you receive payment? What happens if you need to purchase inventory, equipment or materials? How are you going to continue to perform the statement of work without any cash? This happens more than you think. Plan ahead and save as much money as you can. That is what smart government contractors do. They get a line of credit before they need it if they don't have the cash reserves available. Don't wait until you get the contract to look for a loan. Mistake #4 – No Past Performance To be brutally honest, trying to get a government contract without any past performance is not feasible. Your chances of winning a contract is less than 1%. The biggest help you can do for your business is to get as a minimum a few commercial contracts prior to bidding on government contracts. For one thing, it is much easier to get a commercial contract than a government contract. Secondly, contracting officers are going to question any business that happens to win a contract without any past performance. Depending on how the solicitation is written they could pass over your bid. Even if you happen to win, they are going to request a Certificate of Competency (COC). Mistake #5 – Teaming with Another Business Now don’t get me wrong. Teaming with an experienced business has...

It should be easy to determine if your business is large or small. However, that is not the case, especially if you want a loan or become a government contractor. Remember, you cannot compete on small business set-asides unless you qualify as a small business. Furthermore, it will matter if you want to be eligible for SBA's loan programs. The last thing you want to have happened is to lose a government contract due to your business size. So before that happens, find out if your business is small or large. What Does the Government Use to Determine a Businesses Size? The North American Industry Classification System (NAIC codes) is a manual that includes definitions for each industry. NAICS codes assigned a six-digit code to twenty broad sectors. For example, if you are in general construction, your NAICS code would be 236220. NAICS code 236220 is defined as Commercial and Institutional Building Construction. If you are a government contractor, then you are already familiar with NAICS codes. The Census Bureau maintains the NAICS Code Manual, and you can go to it here. North American Industry Classification (NAICS) The creation of the North American Industry Classification System established industries based on similar production processes or supply based framework. This system is very comprehensive, covering all. Economic activities. Presently, there are 20 sectors with 1,057 industries. NAICS replaced the Standard Industry Classification System (SICS). Why mention NAICS codes? NAICS codes are used extensively in government contracting. Every government contract will be assigned a NAICS code. The NAICS code will also determine if your business is considered large or small. NAICS is vital because a large company cannot compete on a small business set-aside. Now that we have our necessary foundation, we can move on to size status calculations. Size Status Calculations The U.S. Small Business Administration (SBA) is responsible for determining the size of business on government contracts and SBA loan programs. NAICS code will determine the method that SBA will use to compute whether a company is large or small. First Method To Compute Size The first method used is annual receipts. SBA states that annual receipts are the total income (gross income) plus the cost of goods sold. To calculate your size, take your latest three complete fiscal years' annual receipts and remember to include the cost of goods sold. Add them together and divide by three. Don't forget to include all your affiliates. But what happens if my company has not been in business for three years? Well, SBA has a calculation available to assist you with that. Not In Business For Three Years For businesses that have not been in business for three years, you can still compute your size. You multiply your average weekly revenue by 52 to determine your average annual receipts. Which NAICS Codes Use Annual Receipts? If your business provides a service, then SBA will use annual receipts. If you are not sure, you can always go to SBA's website and download the Table of Small Business Size Standards. Also, SBA provides a tool that you can use to determine the size of your company. Now let's find out the second way SBA computes the size of business. The Code of Federal Regulations covers the calculations for annual receipts in detail. Please see 13CFR121.104 for more information. Second Method SBA Uses To Compute the Size of a Business The second method for determining the size of the business uses employees. SBA uses the average number of personnel employed for each pay period over the company's' latest 12 calendar months. Every individual on the payroll must be included regardless of the number of hours worked or the temporary status. Not In Business for a Full Year If your company has not been in business for a full year, you can still compute your average number of employees. You use the number of employees...

Small businesses are responsible for creating 8.7 Million jobs since 2005. They also are responsible for 46% of the GDP. As a result, the impact that small businesses have on our local and national economy is great. That is why all small business owners should pay attention to the economy. How is the small business economy? That is what we will be discussing today. SBA just released it's the latest bulletin on the strength and weaknesses in the economy. Let's find out more now.

We interviewed Raymond Christy with the SLC Airport Authority regarding the DBE Program. One of Raymond's jobs is to be the Disadvantaged Business Enterprise (DBE) Coordinator for SLC airports. He has also worked as the DBE Coordinator for the Utah Transit Authority (UTA) in Utah. He has a ton of experience with the DBE program and can provide valuable insight into the program. The DBE Program is part of the U.S. Department of Transportation. DOT uses this program to assist socially and economically disadvantaged businesses in obtaining experience on DOT contracts. Find out more... WATCH NOW!!

Today we will discuss DBE Program. DBE stands for Disadvantaged Business Enterprise. It is another contracting program available to socially and economically disadvantaged individuals. The program is administrated by the U.S. Department of Transportation.

Anytime you enter into a contract you may be faced with a dispute or need to file a claim. This is what today's topic is all about. In government contracting there are 4 levels that a claim maybe processed through. We are going to talk about these todays.

In today's episode we will discussing filing a GAO protest. Did you know that a GAO protest will cost you money? That's right. $350 to be exact. Did you also know that it takes 100 days for GAO to make the decision? That is a lifetime in government contracting. Find out more information just like this. LISTEN NOW Links: eCFR https://www.ecfr.gov/cgi-bin/text-idx?SID=91f93493acfe54883f7975f4653dfd96&mc=true&node=pt4.1.21&rgn=div5 FAR https://www.acquisition.gov/content/part-33-protests-disputes-and-appeals#i1080497 GAO Website: https://www.gao.gov/legal/bid-protests

First you must present your factors in a concise and logical format so that the contracting agency can review for protest. If you fail to present your facts in this matter the agency may elect to dismiss the protest. And we don’t want that. Your protest should include the following information: Now remember that protests based on alleged improprieties in a solicitation must be file before bid opening or the closing date for receipt of proposals. All other protests must be filed no later than 10 days after the basis of protest is known or should have been know, whichever is earlier. In addition, the agency can determine that a protest was raised from issues significant to their acquisition system may consider the merits of this protest which was not filed within the specified time frames. What Happens After the Government Receives my Protest? The Government cannot award the contract once they receive your protest. That is of course, unless the contract award if justified. In order to justify the contract award, the Government needs to put into writing its urgent and compelling reasons or its determination that it is in the Governments best interest to do so. This determination or justification needs to be approved at a level above the contracting officer or by another official depending on the agency procedures. The contracting officer will inform those contractors who submitted bids that they might become eligible for contract award pending the outcome of the protest. In order to avoid the need for re-solicitation, the contracting officer will reach out to the bidders to extend the acceptance time. The Government can depending on the urgent need of the supplies or services made a determination that it is in the best interest of the government to award the contract without waiting for the resolution of the protest. Otherwise, the government will suspend all contracting actions until the protest has been resolved. The agency protest does not extend the time for obtaining a stay at GAO. Agencies may include as part of the agency protest process a voluntary suspension period when the agency protests are denied and the protester files with GAO. No one wants to see a protest on a contract award including the contracting activity. The contracting activity will do their best to resolve agency protests within 35 days after the protest is filed. That is to the ext3nt permitted by law and regulations. During this time the parties may exchange relevant information. Once the agency has reached a decision on the protest, they need to explain their position to the protester. This explanation needs to be logical and will also provide a method of acknowledgement of receipt by the protester. But wait, what if I want to file my protest with GAO. That is what we will be discussing next.

Can you protest a 8(a) sole source contract? Can you protest a competitive 8(a) requirement or contract? Can you protest the NAICS code assigned to an 8(a) requirement? The answers to these questions and more will be answered in this week's episode plus a giveaway. GiveAway is through KingSumo. http://bit.ly/FCMEGiveAway

Remember the government’s goal is to ensure effective and efficient expenditure of public funds. They also want fair and expeditious resolution of protests to a solicitation or award on government contracts. As a result of these goals the government wants to reduce the number of cases that go outside the agency. Therefore, the government regulation was written to direct that prior to submission of a protest the contracting agency, and all parties use their best efforts to resolve the concerns with the agency contracting officers through open and frank discussions. What happens when you cannot resolve the problems at this level? Well, you the contractor, can submit a protest to the agency. As a result of the protest, the agency must provide for inexpensive, informal, procedurally simple, and expeditious resolution of protest and to use, where appropriate, alternative dispute resolution techniques, third-party neutrals, or even another agency’s personnel.

Welcome to the wonderful world of Federal Contracting Made Easy. It is our job to take the complex world of government contracting and break it into simple steps that anyone can master. We are on episode number 99 and today’s topic is on “All About Protests?” But before we get started in today’s topic let’s roll that intro. Welcome Back Before we get started today, I wanted to talk about a new opportunity for my viewers. Federal Contracting Made Easy is now on Patreon. Patreon allows viewers of our blog, podcast and YouTube channel the opportunity to join our community. This means that you will have access to Patreon only videos and our blog. I will be posting topics information such as Agency’s Open Houses, Changes affecting contracting, Regulatory Changes, and much more. Depending on the level of membership you may have your name mentioned on our videos and an opportunity to meet with me as a group and ask those pressing questions. Don’t wait. Stop this video now and go to http://bit.ly/FCMEPatreon now. If you prefer to support our channel, we accept one-time donations at http://bit.ly/2lYw4ZI. Alright, let’s get into today’s topic. What if you do not agree with the decision that the buying agency or contracting officer made? Or what if you believe that their decision is not correct? The Federal Acquisition Regulation (FAR) does provide contractors with several options. The first option is filing a protest. The second option is a dispute. The third option is taking the government to court. First let’s define some terminology. Under government contract law, you have the right to “protest” and also a right to “dispute”. While these terms appear to be similar and are often used interchangeably to everyday language, the government regulations treat them differently. These rules generally give you a right to “protest” a defective bid or the award of a contract to another bidder. These rules also give you the right to “dispute” an issue or disagreement with the contracting officer that arises after you won, and the contract has been awarded. In addition, you may have other options. Three Federal Bid Protest Levels In case you did not know there are three bid protest levels. I have listed them from the highest level to the lowest level. They are: 1. Judicial action brought at the U.S. Court of Federal Claims (COFC). 2. Protest filled with the Government Accountability Office (GAO). 3. Agency-level protest filed with the agency conduction the procurement. Remember that you have only ten days to file a protest after the basis for the protest is known or should have been known. If you fail to file a protest within this timeframe you will not win the protest. The only option available to you is to go to a higher level of Protest which is usually with the US Court of Federal Claims. Protesting a Bid or Award. Not just anyone can file a protest. In order to file a protest, you must be an “interested party”. This means an actual or prospective bidder whose direct economic interest would be affected by the award of the contract or by the failure to award a contract. When challenging the government’s evaluation of proposals and the award of contract, this means a bidder that would potentially be in line for award if the protest was sustained. Most contractors that file a protest do so under one or more of the following situations. Up next, we will discuss some examples of defective solicitations or bids. Bid Defects Most of the protest filed by contractors challenge the acceptance or rejection of a bid or proposal, and the award or proposed award of a contract. However, defective solicitations or bids may also be used as a basis for a protest. A contractor can protest bids based on the following: What does all this mean? Well it means that you the contractor, has the right to protest a bid or an award before and after the award of a contract. You have the right to protest a bid, you can protest an award and you...

FCME uploads new episodes every Friday morning at 6:00 a.m. MST. Topics include proposal writing, bonds, types of contracts, why do business with the federal government, 8(a), business services for veterans and women, where federal opportunities are listed, and more. You can listen to the podcast here or with your favorite podcast provider (iTunes, Google Play, Spotify, or Stitcher). FCME is also active on social media and launched the Federal Contracting Made Easy YouTube channel on January 1, 2019. Website Facebook Twitter Instagram YouTube October 4, 2019 Episode #098 Support our channel: Continued support: http://bit.ly/FCMEPatreon One-Time support: http://bit.ly/2lYw4ZIBreach of Contract We would be remiss if we did not mention Breach of Contract during our articles on contract terminations. In a Breach of Contract by the government recoverable costs (damages) may include monetary costs such as forecasted profits, overhead, and damages for time lost or otherwise needed to perform the work required by the contract. You cannot recover these cost types under a Termination for Convenience. It is advisable to first review your contract to ensure that you are correct in your assumption. If you do not understand a contract clause go to the FAR for further assistance or contact your contracting officer. Breach of Contract - Demonstrate 4 Facts Contractors that want to pursue a breach of contract with the federal government must demonstrate four facts. First the contractor must how a valid contract between the government and themselves. Secondly the contractor must show an obligation or duty. Third the contractor must show a breach of that duty. Lastly, the contractor much show damages caused by the breach. It is not easy to recover your losses when the government has breached its contract. After all, filing a claim does not result in payment from the government. Why? Well government contracts contain clauses that protect the it from legal ramifications or limit any remedies that can be provided. In many cases if you fulfill your obligations as stated in the contract the government will honor the specific terms therein. This can happen even if the government has altered the contract. Breach of Contract is Based on Actual Losses. Breach of Contract requires remedies based on actual losses. But government contracts usually contain two special clauses that may limit or specify the amount of damages owed. This limits your ability to obtain compensation from the government. What are those two clauses? The first "change clause" which allows the government to modify the contract. The second is termination for convenience. We have discussed this clause in our earlier episodes. Does this mean that you cannot file a claim against the government for the breach of contract? No, it does not. However, the monetary recovery you receive depends on your representation and the nature of the claim. Successful claims are usually rewarded immediately unless there are terms added into a settlement that you agree upon after your claim was awarded. Summary If you elect to file a breach of contract your best bet is to hire a competent legal team that has experience both with the government and breach of contract. Under no circumstances, would I suggest that a business travel down this path without legal representation. Enjoying our articles? Click here for more.