Locating Sales Opportunities Generally, solicitation mailing lists of suppliers of items or services are the basis for government purchases. The small business that wants to sell to the Government should make sure its name is on all appropriate lists. Before this can be done however, the firm must know which agencies normally buy the products manufactured or the services offered by its company. Here is where the U.S. Small Business Administration (SBA) can help. Government purchasing installations buying items or services offered by small firms work closely with SBA when seeking small business suppliers. If the firm supplies one item or just a few products or services, the SBA field office representative can tell the firm which agencies purchase those particular products or services. Names and addresses of prospective military and civilian customers are available through SBA's field offices. When requesting information on the location and names of possible customers, a firm must give SBA complete information on the line of products or services it can supply. If a business can supply a variety of products or services, it should check a number of sources of information on Government purchasing. This way, there will be less chance of overlooking potential opportunities.
Helpful sources are the: U.S. Government Purchasing and Sales Directory. This SBA publication is a comprehensive guide to the government's (both civilian and military) pur- chasing and sales activities. The directory lists products and services bought by the Federal govern- ment and indicates which agencies buy them and the proper purchasing offices to be contacted by poten- tial suppliers. The directory also lists the types of surplus property sold by the government and loca- tions of state offices as well as indicates SBA as- sistance available in obtaining surplus property. Copies may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402. Stock Number 378-8310-82-13. Business Service Centers of the General Services Administration. GSA acts as the purchasing agency for numerous items of equipment and supplies, as well as services used by Federal agencies.
A small business owner can learn of items bought by GSA by writing to or visiting the nearest GSA Business Service Center. These offices are located in Atlanta, GA; Boston, MA; Chicago, IL; Fort Worth, TX; Denver, CO; Kansas City, MO; Los Angeles and San Francisco, CA; Philadelphia, PA; New York, NY; and Washington, D.C. Commerce Business Daily. This publication is issued by the U.S. Department of Commerce, Mon- days through Fridays, except on Federal legal holidays. It lists proposed government pur- chases over $25,000, subcontracting leads, con- tract awards, sales of surplus property and foreign business opportunities.
Proposed pur- chases to be solicited exclusively from small firms are also identified. Copies of the Commerce Business Daily are available for reference purposes at SBA and Department of Commerce field offices. The pub- lication may be obtained through an annual sub- scription of $260, first class, or $208, second class service, from the Superintendent of Docu- ments, U.S. Government Printing Office, Washing- ton, D.C. 20402. How to Get on Solicitation Mailing Lists 10/95 After determining which agencies procure the items or services a small firm can supply, the small business owner or manager should ask the appropriate agencies for the necessary forms to place the company's name on their solicitation mailing lists for specific items or services. All published government specifications and standards for items or services purchased by military and civilian departments and agencies may be obtained from the following locations:
Federal Specifications and Standards and Commercial Item Descriptions - Nearest Business Service Center of the General Services Administration or the Federal Specifications Distribution Center, Federal Supply Service, GSA, 7th & "D" Streets, S.W., Washington, D.C. 20407
Military Specifications - Commanding Officer, Naval Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA 19120
Copies of specifications and standards needed by business concerns for government bidding and contracting purposes are available without charge. There will be a charge, however, for large quantities or complete libraries, and copies wanted by individuals or organizations not directly involved in government bidding or contracting. Business concerns who are not certain what specification or standard is needed should contact the specific government agency contracting office which is requesting offers or which awarded the contract referencing the documents. After the specifications have been studied and the firm believes it is capable of producing the item(s), it should request the buying agency to place its name on the appropriate list.
In answer to the firm's request, the purchasing office should send a "Solicitation Mailing List Application," "Form 129" to the requested firm. If the purchasing activity does not include a buying list, or if the buying list does not include the exact products or services the firm can supply, a separate sheet should be attached to the completed form showing: --The specific name of each product or service the firm offers. --Additional items or services the firm could provide the purchasing agency other than those already listed and; --Any item or service the firm has supplied in the past under government contracts. Each product or service listed in the attached sheet should be fully described, and, if pos- sible, should indicate the Government specifi- cation number for each item. When returning the completed form to the pur- chasing activity, a small firm should continue to seek other opportunities. The U.S. Government Purchasing and Sales Directory, and the Commerce Business Daily are both useful in this regard. Firms that receive invitations to bid or re- quests for proposals from a purchasing agency should submit offers or notify the purchasing office that they are unable to offer on the particular item or service, but wish to remain on the active list for future purchases of the specific product. Otherwise, they may be dropped from the list. Preparing Bids and Proposals 10/95 There are two types of offers: - bids and proposals. Bids are used in sealed bidding purchases, while proposals involve awards to be made following negotiation. Bids and proposals always should be prepared with utmost care. Contracts awarded on erroneous offers may result in serious financial loss or other difficulty for the bidder. Before preparing an offer, close study should be made of the specifications to be sure that all requirements can be met. Particular attention should be given to the instructions to offerors and to conditions of purchase, delivery and payment.
When determining the amount of the offer, the small firm should be especially careful to include all costs of material, labor, overhead, packaging, and transportation. Also, it should be sure to comply with such important provisions of the solicitation as submitting the required number of copies, mailing the offer in sufficient time to reach the purchasing office before the closing date, and properly tagging, marking, and mailing any required samples well in advance of the opening date. If a firm wants to change or withdraw a bid, it may send a letter or telegram to this effect to the purchasing office. However, the notification must reach the office prior to the time set for the bid opening. When preparing a proposal on a negotiated pro- curement, the same care should be taken as with a sealed bid. However, because the negotiated purchase procedure is more flexible than the sealed bid procedure, there is greater oppor- tunity to seek modification of specifications, conditions of purchase, or delivery and payment. If the contracting officer decides to negotiate on a firm's proposal, a complete cost analysis may be required. Therefore, the firm should be prepared to support the quotation with facts and figures. Prime Contracting Assistance 10/95 Prime contracting concerns itself with the re- lationship between Federal buying agencies and companies directly responsible for providing the supplies or services needed by the govern- ment. In fiscal year 1994, Federal agencies collective- ly purchased a total of $170 billion worth of supplies and services, of which $ 42.3 billion was awarded to small business as prime contracts. Much of this small business prime contracting occurs without intervention by SBA because:
1. A small business wins the award in head-to-head competition resulting from responses to an "Invita- tion For Bids" (IFB) with other businesses both large and small; or
2. A small business is judged to have the best proposal in response to a "Request for Proposals" (RFP) and successfully negotiates a contract with the activity.
3. A buying activity, determining on its own that there will be adequate small business competition and award will be at a fair and reasonable price, can set-aside a procurement for exclusive small business participation.
SBA, however, continually tries to increase both the dollar value and percentage of total awards to small businesses principally through the work of its procurement center representatives (PCRs) stationed at selected military and civilian locations where there are major buying programs. There are two types of PCRs, traditional (TPCR) and breakout (BPCR), whose duties are different but complementary. TPCRs have many challenging tasks in support of SBA's procurement assistance mission, but most of their time is spent on the prime contracting program. TPCRs operate under provisions of the Federal Acquisition Regulation (FAR) and other directives, and are in the review cycle of the requirement packages (describing what the agency wants) as they are being processed by the contracting officer. The agencies are re- quired to submit to the TPCR, for independent review, all requirements that are valued at more than the simplified acquisition threshold and that are not to be processed as small business set-asides restricted to competition among small businesses only. In reviewing the requirement, the TPCR attempts to obtain a small business set-aside, i.e., restricts the acquisition to small business firms. The FAR states that small business set-asides are mandatory when a determination is reached that there is reasonable expectation that offers will be obtained from at least two responsible small business concerns so that awards will be made at fair market prices. When the TPCR recommends a small business set-aside which is then rejected by the contracting officer, the TPCR may appeal the decision. This appeal may go all the way to the head of the department involved. Many times, the TPCR is sustained on an appeal and the acquisition is set aside. If set-aside criteria cannot be met, then the TPCR attempts to provide competent small business sources to ensure the widest possible small busi- ness participation in the acquisition.
These sources can come from activity files, from other PCRs or from SBA's Procurement Automated Source System. Purchasing agencies will send copies of the solicitation to these additional sources upon request of the TPCR. While reviewing requirement packages, the TPCR is constantly on the lookout for provisions or procedures which may inhibit, restrict or discourage small business firms from submitting offers. These barriers could include restrictive specifications, unreasonably large bonding requirements, or unrealistic delivery schedules. In addition to these duties involving specific procurements, TPCRs are active ombudsmen for small businesses having problems with an agency. They participate in procurement conferences, seminars and business fairs, explain SBA's pro- curement assistance programs, and introduce small businesses to buying activities. Should you have a specific problem or general questions about contracting at an agency, the nearest SBA field office or regional office can put you in touch with the TPCR. Breakout Procurement Center Representatives (BPCRs) are located at major procurement centers of the Federal government. The BPCRs and their technical advisors are advocates for the break- out of items for procurement through full and open competition. All BPCRs are technically trained accredited engineers familiar with the supplies and services procured at their center. The BPCRs review the method by which the activity intends to procure goods and services to ensure that competition is not unnecessarily restricted. BPCRs recommend appropriate acquisition methods when competition can be expanded. Our experience is that the breakout program creates many oppor- tunities to offer on new items and services and small businesses generally win a majority of the items and services procured through full and open competition. Prime contracting also conducts surveillance reviews of Federal contracting offices. These reviews assess the effectiveness of an agency's small business utilization program in providing the small business community the maximum oppor- tunity to participate either as a prime contrac- tor or subcontractor in performance of contracts awarded by that office. Recommendations for any noted program weaknesses or omissions are sub- mitted to the department level authority. Subcontracting Assistance 10/95 The Federal government's role in subcontract- ing assistance to small business has been changed significantly by P.L. 95-507, which amended Section 8(d) of the Small Business Act. Prior to the enactment of the law, the emphasis was on voluntary best efforts by co- operating prime contractors. Once contractors had made their make-or-buy decisions, they attempted to subcontract many of the buy items to small business. Over the years the percent- age of small business subcontracts grew, but as Federal prime contracting became more com- plex and specialized, it was realized that more could and should be done for small busi- ness in subcontracting in the high-dollar, complex procurements. P.L. 95-507 changed the emphasis from voluntary to mandatory and from best efforts to maximum practicable opportunity.
The Act directs that Federal Government contracts greater than the simplified acquisition threshold shall contain a clause entitled, Utilization of Small Busi- ness Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Dis- advantaged Individuals. For larger contracts, i.e., those over $500,000 ($1,000,000 for construction), the law also re- quires a subcontracting plan setting forth per- centage goals for utilizing small business con- cerns, including separately identified goals for disadvantaged small business and women-owned small business. In addition, the prime contrac- tor must describe the efforts it will take to as- sure that such firms have an equitable opportun- ity to compete for subcontracts. For large negotiated contracts, the contracting officer may approve, cause to be modified, or reject the submitted subcontracting plan. Al- though the agency's contracting officer has the final decision, SBA may perform a preaward re- view and evaluation of the subcontracting plan. In most cases, if SBA has serious objections to a proposed plan, the contracting officer will require the large business submitting the plan to make changes to overcome SBA's objections. If the contracting officer determines that the plan provides "the maximum practicable opportunity" for small, small disadvantaged, and women-owned business concerns to participate as subcontrac- tors in the performance of the contract, the ap- proved plan is incorporated as part of the con- tract. Failure by the large prime contractor to carry it out can constitute a material breach of the contract and, unless remedied, could result in termination. For large sealed bid (as opposed to negotiated) contracts, the plan submitted by the successful bidder is incorporated into the contract and, if not carried out, can constitute a material breach. The plan is not negotiated ahead of time between the large business and the buying agency. If the agency's contracting officer believes that the subcontracting plan submitted does not reflect the best effort by the bidder to award subcontracts to small, small disadvantaged, and women-owned con- cerns to the fullest extent, the agency shall re- quest a review by SBA. Although this request does not delay award of the contract, prior compliance of the bidder with such subcontracting plans shall be considered by the Federal agency in determining the responsibility of the bidder for the award of the contract.
Requirements for subcontracting plans do not apply to: small business prime contractors; contracts under the prescribed amounts; prime contracts not offering subcontracting possibil- ities; or contracts which are to be performed entirely outside the United States. SBA has Commercial Market Representatives (CMRs) located throughout the country. Their basic responsibilities are to: 1. Assist small businesses in discovering and expanding subcontracting opportunities. 2. Work with large prime contractors to identify competent small business contractors, and assist them in interpreting Section 8(d) and its imple- menting regulations, including the formulation of subcontracting plans. 3. Conduct preaward evaluation of sub-contracting plans upon request. 4. Conduct postaward review and evaluation of contractually required subcontracting plans. 5. Conduct subcontract program reviews and com- pliance evaluations to make sure that prime con- tractors are implementing their subcontracting program requirements under Section 8(d). A "Small Business Subcontracting Directory" is available on this Bulletin Board. It provides a listing of large prime contractors by state and includes the name and telephone number of the Small Business Liaison officer at each company, along with a brief description of the company's product or service. Certificate of Competency 10/95 SBA's procurement assistance effort is greatly strengthened by the Certificate of Competency (COC) program. SBA is authorized by the Congress to certify as to a small company's "capability, competency, credit, integrity, perseverance and tenacity" to perform a specific government contract. If a contracting officer proposes to reject the offer of a small business firm which is a low offeror because he or she questions the firm's ability to perform the contract on any of the above grounds, the case is referred to SBA. SBA personnel then contact the company concerned to inform it of the impending decision, and to offer the firm an opportunity to apply to SBA for a COC, which, if granted, would require award of the contract to the firm in accordance with the Small Business Act. SBA may also, at its discre- tion, issue a COC in connection with the sale of Federal property if the responsibility (capacity, credit, integrity, tenacity and perseverance) of the purchaser is questioned, and for firms found ineligible by a contracting officer due to a provision of the Walsh-Healey Public Contracts Act which requires that a government contractor be either a manufacturer or a regular dealer. The COC program is carried out by a specialized SBA field staff of individuals with technical, engineering, and government procurement back- grounds in cooperation with financial special- ists, also of the field organization. Upon re- ceipt of a COC application, the SBA notifies the contracting officer of the purchasing agency that the prospective contractor has applied, and a team of financial and technical personnel is sent to the firm to survey its potential.
Although SBA has access to the purchasing agency's preaward survey, which served as the basis of the contrac- ting officer's decision, SBA conducts a completely new review, which evaluates the characteristics of the applicant in terms of the needs of the speci- fic acquisition in question. Credit ratings, past performance, management capabilities, management schedules, and the prospects for obtaining needed financial help or equipment are considered. The team's findings are presented to a COC Review Committee composed of legal, technical and finan- cial representatives, which makes a detailed re- view of the case and recommends approval or dis- approval. If the decision is negative, the firm and the purchasing agency are so informed; if af- firmative, a letter certifying the responsibil- ity of the firm to perform the contract (the Cer- tificate of Competency) is sent to the purchasing agency. By terms of the Small Business Act, the COC is conclusive on questions of responsibility, and the contract is awarded. A COC is valid only for the specific contract for which it is issued.
A business concern which is capable of handling one contract may not be quali- fied to handle another. Each case is considered separately, and each case is considered only if and after the contracting officer has made a neg- ative determination of responsibility or eligibil- ity. Firms may not apply for a COC until a con- tracting officer makes a non-responsibility determination and refers the matter to the SBA. SBA'S Natural Resources Sales Assistance Program 10/98 Natural Resources Sales Assistance Program Manager: Richard J. Sadowski Internet: richard.sadowski@sba.gov The Federal government sells large quantities of many kinds of real and personal property - property surplus to Federal needs, and resources authorized for sale in accordance with public law. SBA cooperates with other Federal agencies to channel a fair share of this property and resources to small businesses. However, SBA does not sell real or personal property, except property held as collateral for SBA loans foreclosed because of default. SBA's Natural Resources Sales Assistance Program is intended to (a) ensure small business concerns obtain a fair share of government property sales/leases to include, where necessary, small business set-asides, and (b) provide counseling, and other assistance to small business concerns on all matters pertaining to Government sales/leases. The program is directed by SBA's Central Office staff and carried out by the Industrial Specialists listed below.
Industrial Specialists: Robert L. Davis Mail Code 0405 SBA - Timber Sales Program 1720 Peachtree Road, N.W., Room 503 Atlanta, GA 30309 Voice: (404) 347-4270 Fax: (404) 347-5215 Internet: robert.davis@sba.gov Thomas A. Clarke SBA - Timber Sales Program 721 19th Street, Ste. 447 Denver, CO 80202-3607 Voice: (303) 844-0510 Fax: (303) 844-0514 Internet: thomas.clarke@sba.gov Mary Ellen Casco (Clerk) SBA - Timber Sales Program 721 19th Street, Ste. 447 Denver, CO 80202-3607 Voice: (303) 844-0512 Fax: (303) 844-0514 Internet: mary.casco@sba.gov Linda L. Hagen Mail Code: 1086 SBA - Timber Sales Program 1515 S.W. Fifth Ave., Ste 1050 Portland, OR 97201-5494 Voice: (503) 326-7245 Fax: (503) 326-5103 Internet: linda.hagen@sba.gov Gerald J. Gruber Mail Code: 1086 SBA - Timber Sales Program 1515 S.W. Fifth Ave., Suite 1050 Portland, OR 97201-5494 Voice: (503) 326-5217 Fax: (503) 326-5103 Internet: gerald.gruber@sba.gov Kathleen L. Sylvester (Clerk) Mail Code: 1086 SBA - Timber Sales Program 1515 S.W. Fifth Ave., Suite 1050 Portland, OR 97201-5494 Voice: (503) 326-5215 Fax: (503) 326-5103 Internet: kathleen.sylvester@sba.gov Sally Larson (Clerk) Mail Code: 1000 SBA - Timber Sales Program 1200 Sixth Avenue, Suite 1805 Seattle, WA 98101-1128 Voice: (206) 553-8541 Fax: (206) 553-6263 Internet: sally.larson@sba.gov William J. Bramwell Mail Code: 1000 SBA - Timber Sales Program 1200 Sixth Avenue, Suite 1805 Seattle, WA 98101-1128 Voice: (206) 553-8544 Fax: (206) 553-6263 Internet: william.bramwell@sba.gov
The five categories of Federal resources covered by the program are:
1. Timber and related forest products Timber is regularly sold from the Federal forests managed by the U.S. Department of Agriculture's, Forest Service http://www.fs.fed.us/ and the U.S. Department of the Interior's, Bureau of Land Management. http://www.blm.gov On occasion, timber is sold from Federal forests which are under the supervision of the Department of Defense, Department of Energy, Fish and Wildlife Service and the Tennessee Valley Authority. SBA and these agencies work together to ensure opportunities for small business concerns to bid on Federal timber sales. In addition, SBA and the sales agencies jointly set aside timber sales for bidding by small concerns when it appears that under open sales, small business would not obtain its fair share.
2. Strategic materials from the National Stockpile The General Services Administration http://www.gsa.gov regulates the procurement and disposal of strategic materials in accordance with statutory requirements. Whenever a stockpile requirement is lowered, excess material may be sold. In those instances where small business may find it difficult to purchase its fair share because of large quantities, the agencies may agree to divide materials into small parcels, and/or set aside a reasonable amount for exclusive bidding by small business.
3. Royalty Oil Royalties due the government under leases of Federal oil rights for the exploration of oil may be accepted by the Secretary of the Interior in the form of oil or money. If the Secretary elects to accept oil in lieu of money, the oil is identified as "royalty oil." When the Secretary of the Interior determines that sufficient supplies of crude oil are not available in the open market to small business refineries, preference will be granted to these refineries for processing royalty oil. SBA refers qualified small business refineries to the U.S. Department of the Interior's, Minerals Management Service http://www.mms.gov to assist small concerns in obtaining royalty oil.
4. Leases involving rights to minerals, coal, oil and gas The Federal Government is the extensive owner of mineral, oil, coal and gas rights. Leases to recover these natural resources are normally competitively sold by the government. SBA and the sales agency may jointly set aside a reasonable amount of leases for bidding by small concerns when it appears that under open bidding small business would not obtain its fair share.
5. Surplus real and personal property The Federal government disposes of property for which it has no foreseeable need. Such property is first made available for donation to recipients authorized by law, such as educational and public health facilities, state and local governments, etc. The remainder is sold. The two agencies of the government principally concerned with surplus personal property sales are the Department of Defense http://www.dtic.mil and the General Services Administration http://www.mms.gov. Scheduled sales are widely publicized and are normally competitive bid sales. Send Suggestions or Comments to: oliver.snyder@sba.gov Last modified on Mon Oct 19, 1998 Determination of a Small Business 1/97 SBA is responsible for making determinations as to whether a particular business qualifies as a small business under the existing size standards set forth in the Code of Federal Regulations (13 CFR Part 121).
In general, these standards vary across industries, with industries dominated by large firms (such as steel mills) having higher size standards than those dominated by small firms (such as barber- shops). Currently, the same set of standards applies for both the procurement and financial assistance programs. A few SBA programs, such as Small Business Investment Companies and Surety Bonds, have unique size standards de- signed to accommodate their own specialized needs. With regard to procurement or sales of govern- ment property, offerors self-certify that they are small. Another firm will occasionally question the size status of the low offeror; the contracting officer, an SBA official or some other interested party may also protest. The contracting officer refers the protest to the SBA Government Contracting Area Office in whose territory the principal office of the protested concern is located. The SBA Government Contracting Area Office makes initial size determinations within very tight time constraints (usually within 10 days of receiving a protest). A procuring (or selling) agency must accept, as conclusive, SBA's deter- mination as to which firms are "small business concerns." Determinations of the Area Office may be appealed to the Office of Hearings and Appeals at SBA headquarters in Washington, D.C., by any of the interested parties. If you have questions on the procedures or the standards themselves, your closest SBA office can answer your questions or get the answers for you.