Government Markets

Government contracting encompasses the Federal, State and Subcontracting marketplaces.  Companies need to know the entry points, protocol and procedure for each market.

The Federal Civil and Department of Defense Marketplaces

The United States Government is unparalleled in its purchasing power.  As the world’s largest consumer of goods and services, the federal government awards contracts averaging $400,000 every twenty seconds.

The United States Government is ready to do business, on a competitive basis, with competent firms that can supply products and services as required by manufacturing and/or delivery specifications and schedules. Federal agencies are particularly interested in doing business with Small Business firms, Small Disadvantaged Business firms, Women-Owned Small Business firms, and firms in Labor Surplus areas.  In fact, by law, federal agencies are required to award a minimum of 25% of all procurements to small businesses.

When evaluating the federal marketplace, a business should consider the two primary market segments: defense entities and non-defense or civil entities.  Both segments publish bid opportunities with an estimated value of $25,000 or more at Fed Biz Opps (http://www.fedbizopps.gov/). 

Vendors interested in small purchase bid opportunities (valued at less than $25,000) should contact the individual federal agencies.

The following list includes the major federal agencies, individual categories and their web addresses. After review the web sites of interest, contact your local PTAC for assistance with marketing your product or service.

Department of Defense (DOD):

Navy – http://www.abm.rda.hq.navy.mil/ 
Air Force – http://www.safaq.hq.af.mil/
Army – https://acquisition.army.mil/asfi/
Defense Logistics Agency (DLA) – http://progate.daps.mil/home/

Non-Defense Civil Agencies:
Department of Energy (DOE) – https://simplified-acquisitions.doe.gov/edi.nsf?opendatabase&login=1 
National Aeronautics and Space Administration (NASA) - http://www.hq.nasa.gov/office/procurement/ 
General Services Administration (GSA) – www.gsa.gov/ 
Department of Health and Human Services (HHS) – http://www.hhs.gov/ogam/oam/procurement/hhsar.html 
Department of Treasury (DOT) – http://www.ustreas.gov/offices/management/dcfo/procurement/ 
Department of Veterans’ Affairs (VA) – http://www1.va.gov/oamm/
Department of Commerce (DOC) – http://oamweb.osec.doc.gov/default.htm

Additional federal links can be found in the “Contracting Toolbox/Helpful Links” section of this web page.


 

Federal Government Contractor Registration

To sell to a Federal agency, a business must register in the Central Contractor Registration (CCR) system.  After registration is complete, a Trading Partner Identification Number (TPIN) or individual vendor identification number will be assigned to the firm.  To register your firm in the CCR database, visit http://www.ccr.gov/.

Note: that a Dunn & Bradstreet number must be assigned to your firm before you can complete a CCR registration.  To obtain a D&B number, phone 800-333-0505.

If you require assistance with the registration process please call your local PTAC for technical assistance.

The Pennsylvania State Government Marketplace

The Commonwealth‘s many agencies purchase a wide variety of goods and services, with an annual procurement budget of over $4.5 billion dollars.  Generally contracting with the Commonwealth is a centralized process managed by the Department of General Services (DGS).  The Department oversees procurement of goods and services, manages non-highway capital projects and maintains numerous core operations of state government, including managing the vehicle fleet, the Capitol Police force, state buildings and facilities.  DGS also serves as the state’s real estate agent and insurance broker. To learn more about how the Commonwealth procures its goods and services, visit the DGS web site at: http://www.dgs.state.pa.us/ 

Commonwealth acquisition procedures require that all contract opportunities (with an estimated value over $10,000) for state agencies must be published on the Department of General Services web site. Businesses interested in doing business with the Commonwealth should visit the DGS web site at http://www.dgsapp.state.pa.us/comod/main.asp. 

Commonwealth Small Purchase bid opportunities (less than $10,000) can be found directly by contacting the agency’s Purchasing Agent.  Locate the appropriate Purchasing Agent at the DGS Purchasing Agent search web site: http://www.dgsapp.state.pa.us/comod/PurchAgt/search/searchPA.asp.  
The Commonwealth’s contracting thresholds and procedures are outline below:

PA State Government Contractor Registration

A firm interested in selling to a Commonwealth of PA agency must first register in the Imagine PA Database. After registration is complete, a vendor identification number will be assigned.  To register in the Imagine PA database, visit http://www.vendorregistration.state.pa.us/.  If you need assistance with the registration process, please contact your local PTAC.

Other State Government Marketplaces

When evaluating the state government marketplace, a firm must consider that each state is an independent market with its own procedures and entry points.  The following table provides web addresses for the 50 states’ primary procurement offices.

1.      Subcontracting to Government Prime Contractors

A primary contractor is the actual recipient named in a government contract.  A government subcontractor is second- or third-tier supplier of goods and services to the primary contractor.

Subcontracting or teaming with a prime contractor can be a profitable experience and a growth opportunity for a business. If, after assessing your business’s capabilities and capacities (see Getting Started/Is Government Contracting for You? on site), you are not ready to bid competitively for prime contracts, consider opportunities available through subcontracting.

The experience gained from performing as a subcontractor can assist you in responding to future solicitations as a prime contractor. Subcontracting, however, should not be viewed only as an opportunity for less experienced businesses, but also as a vehicle to enhance your qualifications to become more competitive in performing as a prime contractor.

Firms interested in subcontracting should review the following:

1. Research and know the company you are approaching. 

• Use a company’s web site to gather information.  This will not only help you understand a company better but will impress them that you took the time to learn about them.  It just makes your job easier!
• Determine the product or services you offer with the greatest impact for the potential buyer.
• Are there non-negotiable insurance or certifications required to do business with them? Can you comply with them? If you have them, let the company know.
• Find out if they realize their need for your product or service?  If not, be prepared to convince them that they need your product or service.

2.  Be specific about yourself.

• VERY IMPORTANT:  Don’t say “We do everything.”!
• What can you offer to make the company more cost effective? 
• Develop a plan.  Again, be specific.  What is your niche?  What separates you from the competition?
• Don’t capitalize on your HUB Zone, Woman-Owned, Disabled Veteran, etc., status. Although this is important and helpful, it doesn’t tell anything about your reputation, quality, or capabilities.  Instead, focus on what you do and how it will help their company.  Know your market.
• Keep them up to date on your capabilities and product lines.  Also, inform them of any awards or certificates your company has obtained.  Reference any successful contracts your company has completed!  This all builds credibility.

3. Look to form long-term relationships.

• Develop an alliance.
• Suggest teaming arrangements that benefit both parties long-term. 
• Enter only teaming agreements that better promote your company, as a viable and valuable partner that can make a company more cost competitive.  Remember they want to know how you can affect their bottom line.

4.  Request a visit.

• Meet with people who can assist you in accomplishing your goal, such as the administrative staff.
• Speak to the right people.  Don’t waste your time or theirs. 
• Be aware that owners or inventors are not always the best people to market the company or products.  Sometimes they’re too close and have a hard time with criticism.

5.  Make a presentation during your visit

• Request overviews containing active contracts or projects, proposed contracts or projects, and future markets.
• Prepare for EDI! Electronic Data Interface.  Keep your Pro-Net records current.  Make sure the person listed as the prime contact is knowledgeable about your business and reliable.
• If you are a service company, the basic rule of thumb for Power Point presentations is; 5 Minutes - 5 Slides – 5 Bullets per slide.  Focus on what you do and know your market. A 30-second speech can make or break you.
• Show financial stability.
• Be competitive and know your competition.
• Be active in the professional community.  Attend trade shows.
• Follow up.  Follow up.  Follow up.

The federal government publishes a list of Major Prime Contractors at: http://www.sba.gov?gopher?Government-Contracting/Subcontracting-Directory

The Small Business Administration manages a web site and database for Primes to announce needs and Subcontractors to announce capabilities at: http://web.sba.gov/subnet/  

Contacts

Bob Imhof
Procurement Outreach Director
651 Montmorenci Road
Ridgway, PA 15853

Phone: 
814-773-3162
Fax:     
814-772-7045
E-mail: 
bimhof@ncentral.com