Finding & Understanding Contracts
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Finding & Understanding Contracts
Finding Government Contracts
There are many ways to find government contracts depending on what you’re trying to sell and to whom. Most businesses will register with the portal of the federal agency, state, or local government that they wish to work with, then apply for contracts in their industry through that entity’s bidding website or electronic procurement tool.
The three most used categories for businesses to find contracts are as follows:
Federal Bidding Sites
State/Local Procurement Portals
Private Contract Databases
Federal Bidding Sites
SAM (System for Award Managment)
SAM.gov is the main bidding website for the entire federal government’s contracts and purchases. Even though you would think that most federal opportunities would be posted here, only a small percentage are. The reasoning behind that is most contracts are pre-existing and fall under renewal or recompete status, or they’re brought to the public through different methods such as SAP for example – you will learn about these methods in a later module. But SAM does post everything from complex cybersecurity programs to simple janitorial contracts. Whether you’re a large business looking for a multi-million-dollar deal or a small business trying to land their first opportunity there is something here for everyone.
Using SAM.gov
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PIEE (Procurement Integrated Enterprise Environment)
The Procurement Integrated Enterprise Environment is the main source of spending for the Department of Defense (DoD) and their associated agencies. The goal of PIEE is to host and streamline federal contracts and opportunities for the DoD. Making it easier for the military, and other agencies, to quickly and efficiently purchase goods and services.
PIEE’s Full Training Guide
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DIBBS - DLA Internet Bid Board System
The DLA Internet Bid Board System (DIBBS) is the Defense Logistics Agency’s (DLA) website for streamlined product purchases. For machine shops, manufacturers, or anyone who sells products that the government regularly needs (electronics, medical devices, groceries, food items, and more) this is the site to use thanks to its simplified quoting system and constant demand for new items.
State & Local Procurement Portals
In the same way that the federal government has websites like SAM.gov, DIBBS, and PIEE to post upcoming contracts, the State and Local governments have also developed their own bidding websites. These agencies will publish all upcoming bids and projects they’re working on via their online registration systems, and without a registered account businesses can be barred from submitting proposals entirely.
State Contract Websites
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Private Contract Databases
Outside of the official federal and local websites there are many privately owned databases and tools that collect active contract opportunities from all over the US and gather them in one easy to search database. Some of them even allow users to input their company’s information to receive real time alerts whenever a new contract in their scope and area is posted.
Select GCR Pro (SGCRP)
As a Select GCR client you will have full access to Select GCR Pro; a powerful, proprietary program that pulls available contract and contact information from thousands of local, state and national Government websites and databases into one unique and easy to use platform.
Additional Databases Include the Following:
BidNet
DemandStar
HigherGOV
Federal VS SLED (State, Local, and Education)
When considering which contracts to pursue, it is vital that you know your audience. The priorities and requirements of request from a federal agency that oversees million-dollar transactions every day versus one from a small township that might only put out a handful of contracts every few months are going to be vastly different.
Federal Contracts
Federal contracts are the high value opportunities of the government world. Federal agencies spend the most money and release the most contracts across websites like SAM.gov, DIBBS, and PIEE. For any aspiring business, success in the federal marketspace can easily become one of their most lucrative revenue streams.
When to Use:
- When your business has enough money, people, and time to work on larger, potentially multi-year, projects.
- When you want to pursue higher paying contracts
Key Features :
- Uniform Bidding Policy: Federal contracts have strict procedures that allow you to navigate most bids with the same repeatable process
- Constant Opportunity: millions of dollars’ worth of contracts is posted daily through key websites like SAM.gov, UNICEF, DIBBS, PIEE.
- Often contains larger and more comprehensive opportunities.
- More Work = More Money
Limitations :
- A SAM Account/CAGE Code is required before you can apply and be paid for federal contracts.
- Must be Compliant. Reseach Government CMMC contract compliancy
- Strict rules and regulations: meaning anything in your proposal that does not exactly follow their request can get your bid disqualified.
Federal Contracts
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SLED Contracts
State, Local, and Education: these contracts cover government jobs from any entity outside of the federal sphere, like cities, states, or schools.
When to Use:
- When federal contracts within your industry have a high chance of being outside of the scope of your business.
Key Features :
- Less Rules: SLED contracts tend to be less strict than their federal counterparts with fewer formatting rules and documents to fill out.
- More Accessible: SLED jobs are usually smaller and easier for new businesses to handle.
Limitations :
- There is no central hosting or bidding website that covers every SLED contract.
- You will likely need individual registrations for each municipality, state government, township, etc. that you wish to work in.
What Are the Contract Levels – Based on Dollar Amount ?
Micro-purchases:
The lowest monetary value of government contracting. The government can buy these goods or services automatically without any bidding.
Dollar Limits: $2,000 for construction, $2,500 for services, $10,000 for goods.
Simplified Acquisitions:
Used for bids under $350,000 that have been set aside for small businesses. These contracts are streamlined and do not require formal evaluations by the government.
Simplified Acquisitions
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Leveraging Simplified Acquisitions
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Regular Purchases:
All other contracts are considered regular purchases. They must be advertised openly and can be competed for by any qualified vendor.
What Are the Key Contract Types ?
Request for Quote (RFQ)
When a contract’s total dollar value is expected to be below $150,000 the government will typically create an RFQ as a way of simplifying the bidding process.
When to Use:
- When a contract is expected to be below $150,000.
- When the government wants to simplify the bidding process.
Key Features :
- Simplified Bidding: RFQ’s use simple steps so businesses can apply faster and easier.
Limitations :
- These contracts tend to be more price focused. So high quality complex technical proposals can be brushed aside if someone else bids a lower price.
Request for Proposal (RFP)
RFPs are largely used for contracts that require complex technical proposals and are valued at or above $150,000. An RFP will at minimum describe the following: The job’s scope of work, terms and conditions, instructions to submit your proposal, and evaluation factors to decide who will win the contract.
When to Use:
- When the government needs to negotiate a contract that requires more complex explanations than solely pricing.
Key Features :
- Technical Proposal: You must clearly explain step-by-step how your company will do the job.
- This will include things like schedules, resumes, manufacturer specifications/drawings, and implementation strategies.
- Quality Assurance Plan: It is highly recommended to include a quality assurance plan with every proposal.
- The government wants to know that you have a plan to ensure smooth steady operations, and that if things do end up going wrong, you can swiftly correct it.
Limitations :
- These contracts are often the most complex and time-consuming of all.
- Newer companies that don’t have either years of experience or a truly competitive product, service, or pricing can struggle to win these contracts without extensive research or professional assistance.
Requests for Proposals (RFP)
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Request for Information – Sources Sought (RFI)
This is a request from the government for potential vendors to come and explain why the government should work with them. Think of it essentially as a networking opportunity where you get to shape future solicitations to fit your company.
When to Use:
- To advertise your business directly to the government.
- To argue for the government to use your business’s Set-Aside/Status.
Key Features :
- Business Overview: define your capabilities and experience.
- Limited Pricing: rarely, if ever, will the government ask about your pricing during an RFI.
Limitations :
- RFIs are not full solicitations, and so there is a chance they will never turn into full contracts.
- RFIs can take a long time to turn into full contracts.
Requests for Information (RFI)
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Sole-Source Contracts
This is a request from the government for potential vendors to come and explain why the government should work with them. Think of it essentially as a networking opportunity where you get to shape future solicitations to fit your company.
Sole-Source Contracts
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When to Use:
- When the government has determined that only one business can fulfill the contract.
Key Features :
- Non-Competitive: Only one vendor is considered for the award
- Justification Required: The government agency must justify why standard competitive bidding is impossible.
Limitations :
- Your business will need an “in” to be awarded this type of contract.
- Either through the government knowing your business already from a past job, or because you submitted a Sources Sought (RFI)
- Due to the nature of sole source contracts, you can’t search for these or apply yourself. The government picks you.
The Full Contract Types Guide and Expanded Breakdown
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How to Respond to Proposals
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What is a Set-Aside
Every single year the government reserves a portion of their yearly contracts for small businesses under qualified programs. These programs allow you to become certified based on your socio-economic status. Certifications qualify you for set-aside contracts that are guaranteed to be given to a small, certified business.
Types of Certifications:
WOSB – Women Owned Small Business
(SD)VOSB – (Service Disabled) Veteran Owned Small Business
8(A) Business Development Program – Socially and Economically Disadvantaged
HUBZone Certification – Historically Underutilized Business Zones
State Certifications & Set-Asides
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Why Are Set-Asides Important
Set-Aside opportunities give small businesses a better chance at winning contracts without competing with major companies. They also provide the opportunity to team with bigger contractors that already have jobs and need subcontractors to complete them. Many Prime contractors are required to utilize small, certified businesses to carry out portions of their contracts. Without small businesses to partner with they would become ineligible for these opportunities.
Without the correct certification, your business will not qualify to bid on Set-Aside opportunities.
What Can Select GCR Do for You
The first step is to check which Set-Asides your business does qualify for. Once we have determined you are eligible for one or more of the listed Set-Asides our team of experts can work to certify your business with the federal government.
What’s the Homework?
Before we begin the next module, work with your team to complete the following items.