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GOVERNMENT
PROCUREMENT
Questions?
What does
the government buy?
Federal, state and local government agencies buy everything
from toothpicks and cleaning services to spaceships and cancer
research. The key is to determine which government agencies
buy the products and/or services you sell and to develop a focused
marketing strategy targeting those agencies. PTAC can help you
identify potential government customers and learn how to approach
them. PTAC is a specialty center of the SBDC Network and provides
free consulting and low cost technical assistance to help businesses
in 45 counties between and around the major Southeast Texas
cities of Houston and Austin sell to the government.
Does the government always award
the contract to the low bidder?
No. In many instances the government awards the contract
to the company that provides the best value, and this does not
necessarily mean the company offering the lowest price. Other
factors such as technical capability, past performance and quality
may also be considered. PTAC can help you interpret a request
for bid or proposal so that you understand which evaluation
factors will be used in determining who gets the contract.
Does the government
pay on time?
Provided your shipping and invoicing documentation
is correct and complete, you can expect a timely payment. In
fact, federal agencies offer a prompt payment in return for
a discounted price, and prefer to pay by Electronic Funds Transfer
(EFT) to speed up the payment process. Federal agencies also
pay interest on the amount they owe you if they delay payment
past the stated terms of the contract. PTAC can help you with
your paperwork and also help you register to be paid electronically.
Do I need to be on
a GSA schedule in order to do business with the government?
No, although it may be beneficial to you in the long run. Think
of the General Services Administration (GSA) as a buying activity
for other federal government agencies. GSA awards “schedules”
or long-term contracts to vendors who provide certain goods
and services required by those agencies. Then, when the agencies
have a need for a particular product or service, they can buy
it from one of the vendors on the schedule for the pre-determined
price. A vendor might get lots of business by being on a GSA
schedule, but there are no guarantees. PTAC can help you determine
if your company is a good candidate to apply for a GSA schedule
as well as help you through the application process.
Do I need to be certified
in order to bid on government contracts?
No. Except for certain “set aside” contracts, the
government does not require any type of certification for a
company to be eligible to bid on contracts. However, being certified
as a woman-owned, minority or otherwise disadvantaged business
can level the playing field and provide more opportunities for
you to bid. Since federal, state and local government agencies
have different certification programs with different eligibility
factors and application processes, you should first determine
which agencies you want to do business with, and then look into
the applicable certification programs. PTAC can help you determine
if you are eligible for certification and help you apply.
What are the SBA’s
small business programs and where can I find additional information
concerning these programs?
Currently there are five social-economic programs managed by
the SBA. They are:
| 1. |
8(a) – The SBA's
8(a) Business Development Program -) named for a section
of the Small Business Act, is a business development program
created to help small disadvantaged businesses compete
in the American economy and access the federal procurement
market. Visit SBA's
8(a) Business Development Program website. |
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| 2. |
Small Disadvantaged Business (SDB)
– While the 8(a) Program offers a broad scope of
assistance to socially and economically disadvantaged
firms, SDB certification strictly pertains to benefits
in federal procurement. 8(a) firms automatically qualify
for SDB certification. Visit the Small
Disadvantaged Business Certification Program website. |
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| 3. |
HUBZone - The HUBZone Empowerment
Contracting Program was adopted to stimulate economic
development and create jobs in urban and rural communities
by providing federal contracting preferences to small
businesses. These preferences go to small businesses that
obtain HUBZone (Historically Underutilized Business Zone)
certification in part by employing staff that live in
a HUBZone and maintain a "principal office"
in one of these specially designated areas. [A principal
office can be different from a company headquarters].
The program resulted from provisions contained in the
Small Business Reauthorization Act of 1997. Visit the
HubZone
website. |
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| 4. |
Woman Owned Business - America's
9.1 million women-owned businesses employ 27.5 million
people and contribute $3.6 trillion to the economy, yet
women continue to face unique obstacles in the world of
business. The SBA is doing more than ever to help level
the playing field for women entrepreneurs. Visit the Online
Women's
Business Center website. |
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| 5. |
Veteran and Service Disabled Veteran
– Veterans and service-disabled veterans may qualify
for certain preferences by providing proof of service
and/or service disability classification. Visit the Service-Disabled
Veteran-Owned Small Business Program website. |
The 8(a), SDB and HUBZone programs require companies to be
certified by the Small Business Administration (SBA).
PTAC offers a free monthly workshop on the SBA’s 8(a)
and SDB programs.
What is CCR?
CCR stands for Central
Contractor Registration, which is an online database created
by the Department of Defense to collect information about
its vendors. Currently, the Department of Defense, Department
of Transportation, NASA and the Department of the Treasury
all require that vendors register in CCR before they can be
awarded a contract. Most other federal agencies also use CCR,
but have not made its use mandatory. The information collected
in the CCR database is used in the procurement process and
to facilitate electronic payment to vendors.
How do I register in CCR?
The recommended method is online at www.ccr.gov.
You will need to have certain company information on hand,
such as your DUNS number and your CAGE code, before you begin
the registration process. If you do not have the required
numbers and codes, PTAC can help you obtain them.
Does registering
in the CCR market my company to the government?
Since the government has integrated PRO-Net, the SBA’s
Procurement Marketing and Access Network database, into the
CCR database, registering your company in CCR will now also
serve to market your company to government buyers. This change
was effective on January 1, 2004. Previously, you had to register
your company in PRO-Net for the marketing function, while
the main purpose of registering in CCR was to make sure the
government would be able to process an electronic payment
to your company if you were awarded a contract. The integration
of the two databases makes it easier for small businesses
to do business with the government and makes it easier for
government buyers to find qualified small business vendors.
PTAC can help you with the CCR registration process.
Are there web sites
where I can see what the government is buying?
Yes, the federal government posts many of its contracting
opportunities online. The primary site is www.fedbizopps.gov,
where all federal agencies are required to post contracting
opportunities that are estimated to be valued over $25,000.
Most agencies also post acquisition forecasts, which are lists
of the purchases the agencies expect to make in the coming
months, on their home pages. The Federal
Acquisition Jumpstation provides links to most federal
agency home pages. State of Texas bid opportunities can be
found through the Electronic
State Business Daily program.
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