The document provides an overview of opportunities for small businesses to win federal contracts. It discusses that the federal government aims to award 23% of contracts to small businesses. It outlines various SBA certification programs like 8(a), HUBZone, and Service-Disabled Veteran-Owned that provide preferences. It recommends businesses register in systems like SAM, identify their NAICS codes, and find contract opportunities on sites like FedBizOpps. It also gives guidance on requirements for proposals, performance, payment, and resources for assistance.

1. U.S. Small Business Administration
Selling to The
Federal
Government:
Winning
Federal Contracts
for the
IRS and NCMA
Greater New York Vendor
Outreach Workshop
April 16, 2009

2. Federal Contracting Facts
• The federal government is one of the
largest single sources of US contracting
opportunities for small businesses
• Contracts exist for every item imaginable,
from paper clips to armored tanks
• In 2006, small businesses won:
– $77 billion in direct prime contracts
– $65 billion in subcontracts
– over $142 billion in total federal contracts

3. Why a Small Business
Program?
It is the policy of the United States that small
business (SB) concerns shall have the maximum
practicable opportunity to participate in the
performance of contracts awarded by any Federal
agency.
•
The United States uses the procurement process to
advance socio-economic policies and objectives.
• Government Policy Over Several Decades
– Numerous Statutes, beginning with the Small
Business Act as amended
– Various Executive Orders
– Federal Acquisition Regulation (48 CFR, Part
19)
– SBA Regulations (13 CFR)
•

4. Basis for SBA Programs
• Small Business Act
– Implements Congressional Policy to
aid, counsel, assist & protect the
interests of small business concerns
– Goal of policy is to ensure that a fair
proportion of purchases, contracts &
subcontracts be placed with small
businesses

5. Get to Know SBA’s Website
• At www.sba.gov/businessop/index/html,
take online federal procurement training
modules to improve your company’s odds
to win federal prime and subcontracts
• Topics today include:
• Defining the Market
• How the Government Buys
• Contractor Responsibilities
• And many more

6. What is a Small Business?
According to regulation (FAR 19.001):
“Concern”: Any business entity organized for
profit with a place of business located in the
U.S.
“Small business concern” means a concern,
including its affiliates, that is independently
owned and operated, not dominant in the
field of operation in which it is bidding on
government contracts, and qualified as a
small business under the criteria and size
standards in 13 CFR Part 121.”

7. Prime Contracting
Government-wide Procurement
Goals
•
•
•
•
•
Small Business (SB) - 23%
Small Disadvantaged Business (SDB) - 5%
Women-Owned Small Business (WOSB) 5%
HUBZone Small Business - 3%
Service-Disabled Veteran-Owned SB
(SDVOSB) - 3%

8. How the Government
Buys
Order of Precedence
•
•
•
•
•
FAR 8.603 – FPI and AbilityOne
GSA or other Federal Supply Schedule
8(a) sole source/competitive & 8(a)-HUBZone firms**
HUBZone competition, HUBZone sole source**
Service Disabled Veteran Set-aside, Sole Source** (1st
priority for the VA (and VOSB 2nd)
• Small Business Set-aside
• Full and Open
SBA’s Position: Contracting Officers should use their best judgment as
to which vehicle ( 8(a), HUBZone, or Service Disabled Veteran Owned)
is most appropriate for their buy. Program Goal achievement is a factor
in this determination. Controversial

9. How the Government Buys – MAS/FSS
• MAS/FSS Contracts
:GSA establishes long-term
government-wide contracts for the entire government to
provide access to over 11 million commercial supplies
(products) and services
• Preferred method and widely used
• The General Services Administration (GSA) manages
– Multiple Award Schedules (MAS) contracts,
– aka Federal Supply Schedule (FSS) contracts
– Contact GSA for more information on how to obtain a
MAS/FSS contract at http://www.gsa.gov and select link to
GSA Contracts and Schedules

10. First Thing To Do – Get
Registered
• Obtain a “DUNS Number” that will identify your
business to the federal government by visiting
www.dnb.com
• In order to win federal contracts, your business
must be registered in the federal government’s
Central Contractor Registration (CCR) database
at
www.ccr.gov
• Online Representations and Certifications
Application (ORCA) https://orca.bpn.gov/

11. Identify Your Product or
Service
• 2 different coding systems:
– Federal Supply Classification Code (FSC)
http://www.drms.dla.mil/asset/fsclist
.html
– North American Industry Classification
System Code (NAICS)
http://www.census.gov/eos/www/nai
cs/

12. Know the Federal Contract
Certifications
 Self-Certifications
Small Business – NAICS Codes/Size
Standards
Women-owned Small Business (WOSB)
Veteran-owned Small Business (VOSB)
Service-Disabled Veteran-owned Small Business
(SDVOSB)
 SBA’s Formal Certification Programs:
8(a) Business Development
HUBZone Empowerment Contracting

13. Find Out If You Qualify for SBA
Certifications
•
Require formal certification (pre-approval) by the government
– 8(a) - Socially and economically disadvantaged firms
enrolled in a 9-year business development program eligible
to receive competitive and ‘sole source’ awards.
www.sba.gov/8abd
– HUBZone - Small businesses, owned and controlled by
only by US Citizens, community Development Corps, Indian
tribes with its principal office located in areas identified as
historically underutilized business zones, and with 35% of
employees coming from HUBZones, eligible to receive
competitive and ‘sole source’ awards.
www.sba.gov/hubzone

14. Eligibility for 8(a) & SDB
Programs
8(a)
• A small Business
• US Citizen
• 51% owned and controlled
controlled by socially &
economically disadvantaged
individuals
• Net worth below $250K
• In business at least 2 years
SDB
A small business
US Citizen
Same
Net worth below
750K

15. HUBZone Requirements
FOUR Requirements:
• Must be a small business by SBA standards
* Concern must be owned and controlled
only by US Citizens, Community
Development Corporation or Indian Tribes
* The principal office must be located in a
HUBZone
* At least 35% of the concerns employees
must reside in a HUBZone

16. HUBZone Program
•
•
•
•
•
•
•
•
•
•
Applies to purchases over $3000;
Must be certified by SBA - no term limits;
Annual self-certification required after initial approval;
Competitive and ‘sole source’ set-aside program
benefits;
Can’t consider actions for HUBZone SA if FSS,
UNICOR, NIB/NISH, or 8(a);
Sole source: Up to $5.5 M (mfg) and Up to $3.5M
(non-mfg)
10% price evaluation preference (on non set-asides)
Principal office must be in a HUBZone
35% of employees must live in a HUBZone
FAR 19.13

17. Service-Disabled Veteran-Owned
Small Businesses
•
Set-Aside
- Buys over
$3000
- “Rule of Two”
- No upward $
limit
- Can’t consider if
FSS, UNICOR,
NIB/NISH, or
8(a)
• Sole Source
–
–
–
–
–
–
–
Buys over
$100,000
Only 1 Source
Up to $5.5 M (mfg)
Up to $3.5 M (nonmfg)
Can’t consider if
FSS,
UNICOR,
NIB/NISH,
or 8(a)

18. Service-Disabled Veteran-Owned
Small Businesses
• Additional Points to Remember:
• VA determines Service Disability - SBA
determines size, if protested;
• No term limits – no need to apply or reapply;
• Competitive and sole-source program
benefits;
• Subcontracting and Prime Contracting goals;
• FAR 19.14

19. Identify Contract
Opportunities
• Federal Business Opportunities (FedBizOpps) (FBO) is the
exclusive official source to identify federal contracts over $25,000
www.fedbizopps.gov or www.fbo.gov
• Demonstration Videos - Training videos are now available to
familiarize users with the features and functionality of the
new FBO
•
Sources Sought Notices in the FBO – Become familiar with and
Respond to these notices.
•
Large contract awards and special notices (e.g., procurement
conferences) are also publicized in the FBO.
•
Contains Recovery and Reinvestment Act Actions

20. Learn Federal Contracting Procedures
•
In order to win federal contracts, you must become
familiar with federal regulations
.
Federal Acquisition Regulations (FAR)
www.acqnet.gov/far
 Subpart 8.4 – Federal Supply
Schedules
 Part 13 – Simplified Acquisitions
 Part 14 – Sealed Bidding
 Part 15 – Contracting by Negotiation
 Part 19 - Small Business Programs
•
Defense Federal Acquisition Regulation
Supplement (DFARS) www.acq.osd.mil/dpap/

21. Prepare your offer
 3 Rules for a solicitation:
-Read it…Read it…Read it!!!
 Request a Procurement History
 Attend Pre-Bid Meetings
& Walk-Throughs
 Get clarification of ambiguities
 Proofread your proposal
 Submit it on time!

22. Contract Performance







Contingency Plans
Have a back up plan if something goes wrong
Give yourself enough time to react
Anticipating Final Inspection
Make an appointment before shipping date
On-Time delivery
Establish a good track record

23. Getting Paid
 Know the paperwork process
 Keep good records
 Know your options
‒ Progress payments
‒ Prompt Payment Act
 EFT (electronic funds transfer)
 Accept government credit cards

24. Market Your Company
•
In order to effectively market your company’s product or service,
you must:
– Identify your customers
– Research their requirements
– Learn federal procurement regulations
 Present your capabilities directly to the federal activities and large
prime contractors that buy your products and services
 Attend procurement conferences and business expos
 Attend Business Matchmaking events
 Add details to DSBS your Dynamic Small Business Search
•
profile (e.g., GSA schedule number, commercial customers,
federal customers, special capabilities).
Show contracting officers that your company is a good match for
their needs and requirements

25. Market Your Company
• TARGET YOUR CUSTOMER: Who buys your
product or service? How do they buy? When
do they buy?
• KNOW THE RULES: Federal Acquisition
Regulations, Contract requirements and
specifications
• PERFORM AS PROMISED: On-time delivery,
Good Quality, at a Fair Price
• CHAMPION of EXCELLENCE
• PLEASANTLY PERSISTENT

26. Explore Subcontracting Opportunities
• Prime contract winners often require subcontracts to fulfill
their requirements
• The SBA/GC Subcontracting Opportunities Directory lists
by state the large business federal prime contractors with
the contact information for each Small Business Liaison
Officer (SBLO). View the directory at
http://www.sba.gov/aboutsba/sbaprograms/gc/contacts/gc_subco
ntracts_opportunities.html
• SBA’s SUB-Net: Federal agencies, state and local
governments, non-profit organizations, colleges and
universities, and small businesses can use SUB-Net to post
solicitations and notices. SUB-Net can be reached through
the SBA’s Home Page at http://web.sba.gov/subnet.

27. Seek Help From Resource Partners
• PTAC www.dla.mil/db/procurem.htm
• Small Business Development Centers - LIDC
• Women Business Centers
http://www.sba.gov/aboutsba/sbaprogra
ms/onlinewbc/index.html
• SCORE - Get Advice (online and inperson mentoring) from Successful
Business Advisors www.score.org

28. Seek Help From Resource Partners
Additional Help
• Commercial Market Representatives
– www.sba.gov/gc/indexcontacts.html
• Small Business Specialists
– www.defenselink.mil/
• Directors of Federal Agency Office of
Small and Disadvantaged Business
Utilization
– www.osdbu.gov

29. Learn About Other SBA
Programs
• Find other SBA programs at
http://www.sba.gov/index.html
- Financial Assistance
- Contract Opportunities
- Online Training - Free Online Courses
- Counseling & Assistance
- Laws and Regulations

30. U.S. Small Business Administration
Debra B. Libow
Procurement Center Representative
at
debra.libow@sba.gov
212-264-4395
U.S. Small Business Administration
OFFICE OF GOVERNMENT CONTRACTING
Area I (CT, ME, MA, NH, NJ, NY, RI, VT, PR and the USVI)