U.S. Small Business Administration Office of Government Contracting & Business Development Government Contracting 101 PART 3 – How to Sell to the Government A Guide for Small Business – Supplemental Workbook January 2012 Government Contracting 101 PART 3 – How to Sell to the Government Office of Government Contracting & Business Development December 2011 Guide for Small Business Welcome to SBA’s training program, Government Contracting 101, Part 3. Office of Government Contracting and Business Development Jim O’Connor Dec 17, 2011 Notes: Page2 Introduction • Designed to help small businesses take advantage of government contracting opportunities • Part 3 (this module) – How to sell to the government • Parts 1 & 2 (not included in this module) – Prime & subcontracting programs, SBA certifications, and WOSB & veterans programs – How the government buys Guide for Small Business This training module is designed to help small businesses participate in, and take advantage of, government contracting opportunities. There are three parts to the GC 101 training series. This part, part three, specifically discusses how to sell goods and services to the government. Parts one and two provide clarity and training around government contracting and certifications programs and how the government buys goods and services. Notes: Page3 Learning Objectives 1.Understand government contracting programs 2.Know how to sell goods and services to the government 3.Know where to find additional contracting resources Guide for Small Business After reviewing this training program you should: 1. Have a better understanding about government contracting programs. 2. Know how to sell goods and services to the government. 3. Know where to find additional contracting resources Notes: Page4 HOW TO SELL TO THE GOVERNMENT Page5 Selling to the Federal Government Define products and services Register in the CCR Develop a winning CCR profile Prepare a quality capability statement Market directly to agencies Find contract opportunities Subscribe to bid matching services Use procurement vehicles Engage a mentor or partner Guide for Small Business A small business wanting to participate in federal government contract opportunities should engage in several foundational steps. These steps include: define products and services; register in the CCR; develop a winning CCR profile; prepare a quality capability statement; market directly to agencies; find contract opportunities; subscribe to bid matching services; use procurement vehicles; and, engage a mentor or partner. Each of these foundational steps is discussed in the following slides. Notes: Page6 Define Products and Services • Government uses the North American Industry Classification System (NAICS) to identify products and services • D-U-N-S numbers are used to identify prospective vendors • DOD uses Federal Supply Group and Class (FSG/FSC) Guide for Small Business Government agencies use the North American Industry Classification System, more commonly referred to as a NAICS code, to identify products and services by industry type. A NAICS code, or codes, identifies the products and services a company supplies. The NAICS code is a six digit number that describes a particular product or service a company supplies. A firm can have multiple NAICS codes. NAICS codes do not uniquely identify the business. The Federal government uses D-U-N-S numbers, provided by Dun & Bradstreet, to identify prospective vendors. You can find the NAICS codes for your products and services by clicking on the referenced hyperlink. It is also important to note that you can use your NAICS code or codes to conduct online searches at the Websites of numerous federal agencies to learn what they are buying. To participate in contract opportunities within the Department of Defense (DOD), a firm will also need to know its Federal Supply Group or Class code. The hyperlinks provided can be used by a firm to identify appropriate NAICS codes, obtain a D-U-N-S number, and identify its appropriate Federal Supply Group. It is important that a firm properly define its products and services. Notes: Page7 Register in the CCR • CCR is the primary source for agencies to learn about prospective vendors • Government maintained database • A firm must register in the CCR to participate as a seller in the Federal space Guide for Small Business The Central Contractor Registration, more commonly known as the CCR, is the primary source for agencies to learn about prospective vendors. The CCR is a government-maintained database of companies wanting to do business with the government. This database is a marketing tool for businesses and a searchable list of prospective vendors for the government. A firm must register in the CCR to participate as a seller in the federal space. Further, the firm’s profile in the CCR must be updated at least once every 12 months – for the profile to stay active. Notes: Page8 Develop a Winning CCR Profile • CCR profile is important. Small businesses should: – Review the CCR user’s guidebook – Access the CCR site and perform multiple searches as if it was hiring a firm similar to itself – Treat its profile as its business resume – Get feedback about its CCR profile and update accordingly – Updated profile annually or sooner if necessary FAR 4.11 Guide for Small Business Your CCR registration is an important marketing tool for your business. You should: 1. Download the free CCR user’s guidebook. You must be prepared before you get started; 2. Access the CCR site and perform multiple searches, as if you were looking to hire a firm like yourself. Review profiles of businesses in similar areas of expertise and use them as a guides when developing your own business profile. Learning from the wisdom of others is paramount; 3. You should treat your CCR profile as your business resume. As with any resume, it should be regularly reviewed, updated and strengthened. 4. And finally, get feedback. This is important. When you talk with contracting officers, mentors and other procurement professionals ask them for a candid appraisal of your CCR profile. This information should be used to make necessary adjustments. Notes: Page9 Prepare a Quality Capability Statement • Prepare a comprehensive Capability Statement outlining management, technical and business strengths • Statement should include: – Specific capabilities and skills – Past performance history, with specific projects – Awards and commendations – Resumes of key management • Seek feedback and refine accordingly • Should also be included in the Dynamic Small Business Search Database within the CCR Guide for Small Business A business should prepare and maintain a comprehensive Capability Statement that clearly outlines its management, technical and business strengths. This is important. Such a statement should include specific capabilities and skills, past performance history, awards and commendations, and resumes of key management personnel. As with your CCR profile, you should seek regular feedback on your capability statement and refine and update it accordingly. This is important. Notes: Page10