Monday Morning Contracting Tips
November 6, 2017
October 30, 2017
Large/Prime Contractors for Sub-Contracting Opportunities
Do you want to do business with the government but not sure which approach is the best approach, try Sub-Contracting opportunities with Large/Prime Contractors as your initial approach?
During their early stage many times small businesses face challenges with identifying the best approach to do business with the government. Small businesses encounter huge challenges attempting to be a prime contractor directly with the government. Many of these challenges results due to lack of past performance, technical capabilities, financial requirements, a clear understanding of how to do business with the government as a prime and a host of other reasons. Small businesses who meet certain requirements should consider identifying the suitable Large/Prime contractor to sub-contract with that’s currently doing business with the government. Identifying the best Large/Prime contractor can also be a challenging task.
Large/Prime Contractors are required to submit a Small Business Plan when presenting a proposal to the government for any contract that they pursue for good and service over $700K and construction valued over $1.5Mil. Marketing your company to Large/Prime Contractors who’s aware of your company’s capabilities and small business set-aside certifications can assist you in obtaining sub-contracts and put you in the driver’s seat to more business with the government.
Here are a few websites that can assist in your efforts to do more business with Large/Prime Contractors for sub-contracting opportunities.
- GSA Sub-Contracting Network
- Federal Acquisition Sub-Contract Plans Requirements
- DoD contracts valued at $7 million or more are announced each business day awarded to Large/Prime Contractors
- Small Business Administration Sub-Net
- DoD Sub-Contra ting the Basics
September 11th, 2017
Contract Management Key Process Areas, Buyer’s Perspective
August 28th, 2017
FedBizOpps (FBO) a great tool, if used properly.
The end of Federal Government fiscal year is upon us, we’ve got a little over 30 days before the government officially shut down its spending for 2017. What could be your next approach? Identify who were the 2017 contracts awardees; maybe there’s some sub-contracting opportunities going in to 2018 that you can support. You may be asking how do I find those companies who won prime contracts in 2017. Allow me to share with you a few ways of best utilizing FedBizOpps (FBO). There are three tips for researching contract awardees, probable bidders and marketing strategy by showing your interest in opportunities.
1. Go to FedBizOpps (FBO) and use the “Advanced Search” feature there to look for contract opportunities and contract awards in the NAICS category that describes what you sell (look up your NAICS codes here). Set whatever date parameters you’d like (FBO will allow you to search back many years). You also might want to set some geographic limits on your search. Be sure to select both active and archived documents as well as awards. After you hit the Search button, you can then sort through the resulting list (which is compiled by most recent contracts back to the oldest). Drill down into contract awards postings to see which agencies have bought what you sell and who’s won these contracts in the past.
2. Whenever you go to FedBizOpps and look at an active solicitation, you should get acquainted with using the two buttons labeled: “Add to Watchlist” and “Add Me To Interested Vendors.” The first one will ensure that you are sent updates on the solicitation. The second button will add you to a list of interested parties; it allows the contracting officer to assess potential interest in the solicitation, and when the “View Interested Vendors” module has been activated, it allows anyone to see the list of interested parties, along with all their contact information. Once you register, this is a good way to “see and be seen.”
3. If the “View Interested Vendors” module in FedBizOpps has not been activated for a particular solicitation, you may wish to email the points-of-contact listed in the posting and request that they activate it so that all may see the list. Let them know that you are interested and qualified to participate and wish to pursue a partnering arrangement. If you are a small business – particularly one in a socio-economic category the government gives preference to – be sure to point that out. Contracting officers will understand that your gaining access to the list could help facilitate small business participation in the contract.
August 14th 2017
Cost and Pricing
FAR 15.402 states that the contracting officers shall purchase supplies and services from responsible sources at fair and reasonable prices. In establishing the reasonableness of the offered prices, the contracting officer shall obtain certified cost or pricing data when required by 15.403-4, along with data other than certified cost or pricing data as necessary to establish a fair and reasonable price or when certified cost or pricing data are not required by 15.403-4. Cost and Pricing has always been a challenge when developing an awarding winning proposal. Many companies have challenges developing Cost and Pricing Model that supports their pricing.
What Cost are considered to ensure the best Cost and Pricing Proposal:
- Fixed Costs
- Variable Costs
- Direct Costs
- Indirect Costs
- Material Overhead
- Labor overhead
- General and Administrative (G&A) Costs (Can be considered as Indirect Cost)
- In the government world, profit is both good and necessary. FAR 15.404 states that it is in the government’s interest to offer contractors opportunities for reasonable profit. Profit stimulates efficient contract performance, attracts the best capabilities of qualified business concerns to government contracts, and maintains a viable industrial base. The main factors that influence profit are 1) competition 2) objectives of business 3) necessary investments and 4) risks involved. If profit is calculated too high, it could remove your Cost Proposal out of the competitive zone.