Questions and Answers about Government Contracting and doing business with the
Government.
Do I have to become a registered vendor with the government to win a contract?
With a
few exceptions, a firm that wants to compete for federal government
contracts must meet at least three requirements:
1.
Obtain a Data Universal Numbering System (DUNS) number, which is a
unique nine-digit identification number for each physical location
of a business, available at[http://www.dnb.com/US/duns_update/
2.
Register with the government’s Central Contractor Registry (CCR)
database, available at
http://www.ccr.gov
3.
Complete an Online Representations and Certifications Application
(ORCA), available at
https://orca.bpn.gov.
What is a
DUNS Number?
A Data
Universal Numbering System (DUNS) number that to identify unique
business establishments. This nine-digit number is assigned and
maintained by Dun and Bradstreet.
What is
the Central Contractor Registry (CCR)?
The
Central Contractor Registry (CCR) registers organizations who want
to do business with the Federal Government. Organizations must have
a DUNS number to register with the CCR. Organizations provide
specific organizational information to enable government buyers to
locate them. CCR is sponsored by DOD and NASA. To register in CCR a
company must have a DUNS number.
What is a
CAGE code?
The
Commercial and Government Entity (CAGE) code is a five character ID
number used extensively within the Department of Defense (DOD) and
NASA.
What is
ORCA?
Online
Representations and Certifications Application (ORCA) replaces most
of the paper based Representations and Certifications (Reps and
Certs) in Section K of solicitations with an Internet application.
What is a
NAICS code?
The
North American Industry Classification System (NAICS) is an industry
classification system used by the statistical agencies of the United
States for classifying business establishments.
What resources are available to help me learn government contracting
processes?
Many
government agencies have in-house resources to provide contracting
assistance. The General Services Administration's Office of Business
Support assists businesses in determining who to market their
products and services to in the federal government, and how they can
get connected.
The SBA provides oversight of the certification
programs as well as business matchmaking programs.
The Procurement Technical Assistance Centers (PTAC) are non-profit
organizations created by Congress and partially funded by the
Department of Defense to expand the supplier base and increase
competition among government contractors, thus reducing the cost of
maintaining a strong national security, as well as generating
employment and enhancing the economy.
The PTACs' role is to work with businesses to help them obtain and
perform federal, state and local government contracts by educating
the companies on the processes necessary for securing government
contracts and by connecting businesses with government agencies
seeking competitively priced products and services.
Does the
government offer certifications?
The U.S.
Small Business Administration (SBA) handles two certifications for
federal government procurement programs:
Businesses can self-certify that they are any of the following:
Where and how do government agencies publicize
contracting opportunities and at what dollar threshold?
All federal agencies are required to publicize
bidding opportunities on
http://www.fedbizopps.gov; when the purchase is expected to
exceed $25,000, so anyone with Internet access can find out
about these opportunities.
How do I find out which agencies buy products and/or
services similar to mine?
The Federal Procurement Data Center at
https://www.fpds.gov reports statistics on procurement for more
than 70 federal agencies. Some federal, state and local government
agencies, military installations and prime contractors publish
procurement directories and procurement forecasts on their Web
sites.
What is
Best Value?
Best
value is the expected outcome of any acquisition that ensures the
customers needs are met in the most effective, economical, and
timely manner.
Best value is the goal of sealed bidding, simplified acquisition,
commercial item acquisition, negotiated acquisition, and any other
specialized acquisition method or combination of methods.
Negotiated acquisition techniques used to obtain best value may span
a "continuum" from low priced technically acceptable to tradeoffs
between price, past performance and the technical solution.
What is
the Federal Acquisition Regulation (FAR)?
The
primary source of federal procurement information and guidance
regulations. The FAR, which is published as Chapter 1 of Title 48 of
the Code of Federal Regulations, is prepared, issued, and maintained
under the joint auspices of the Secretary of Defense, the
Administrator of General Services Administration, and the
Administrator of the National Aeronautics and Space Administration.
Acquisition Regulation, which consists of Parts 1-53 of Title 48 of
the Code of Federal Regulations. Available at, the FAR covers, for
example,contractor qualifications, types of contracts, small
business programs, and federal supply
schedule contracting. The FAR also includes, in Part 2, definitions
of procurement words and terms, and, in Part 52, solicitation
provisions and contract clauses.2
Actual
responsibility for maintenance and revision of the FAR is vested
jointly in the Defense Acquisition Regulatory Council (DARC) and the
Civilian Agency Acquisition Council (CAAC). Federal
Acquisition Regulation (FAR)
http://www.acquisition.gov/far
What is
the Federal Business Opportunities Site?
Federal
Business Opportunities or www.FedBizOpps.gov is the single
government point-of-entry (GPE) for Federal government procurement
opportunities over $25,000. Government buyers are able to publicize
their business opportunities by posting information directly to
FedBizOpps via the Internet. Through one portal - FedBizOpps (FBO) -
commercial vendors seeking Federal markets for their products and
services can search, monitor and retrieve opportunities solicited by
the entire Federal contracting community.
What is a
GSA Contract?
A GSA
contract, also known as a GSA Schedule, Federal Supply Schedule
contracts, or multiple award schedules, is an indefinite delivery,
indefinite quantity (IDIQ) contract negotiated between the US
General Services Administration (GSA) and commercial companies and
available for use by federal agencies worldwide. GSA contracts make
it easy for the government to purchase state-of-the-art,
high-quality commercial products and services. To maintain continued
sources of supplies and services, schedule contract periods are as
long as five years with three five-year option periods.
What Is
The General Services Administration (GSA)?
GSA is a
centralized, federal procurement, property management, policy
development and information provision agency, created by Congress to
improve government efficiency and help federal agencies better serve
the public. The US General Services Administration (GSA) is a
management agency of the federal government that provides federal
agencies with the tools necessary to perform their day-to-day
operations. The GSA is best likened to the landlord or housekeeper
of the federal government because it provides such supplies and
services as furniture; equipment and supplies (power tools; phones,
computers, etc.), workspaces; security; travel and transportation
services; federal motor vehicle fleet management; historic building
preservation; fine art program management; and on and on and on.
What is
the Federal Supply Service (FSS)?
The
Federal Supply Service (FSS) is one of three divisions managed by
the GSA and charged with managing and operating the Federal Supply
Schedule program. The primary responsibility of the FSS is to
negotiate indefinite-delivery/indefinite-quantity,
no-guarantee-of-sale contracts with commercial business to provide
goods and services at fixed prices for specific periods of time.
These contracts are called GSA contracts, GSA Schedules, Federal
Supply Schedule contracts, or multiple award schedules.
Currently, FSS negotiates schedule contracts for more than 50
different product groups, ranging from hardware to power tools, to
office supplies and furniture, to information technology equipment
and services, to environmental consulting services, to professional
engineering services. FSS awards these contracts under negotiated
procurement procedures, which permit offerors the opportunity to
revise offers before the contract is awarded.
What are
Set Asides?
Under
the Small Business Act, federal agencies conduct a variety of
procurements that are reserved exclusively for small business
participation. These transactions are called "small business
set-asides" and include the Small Business Reserve, Set-Asides above
the simplified acquisition threshold, the Small Business
Competitiveness Demonstration Program, the HUBZone Empowerment
Contracting Program, and the Service Disabled Veteran Owned Small
Business Program.
What is a
Small Business?
A
business smaller than a given size as measured by its employment,
business receipts, or business assets.
What is
an Emerging Small Business?
A small
business concern whose size is no greater than 50 percent of the
numerical size standard applicable to the Standard Industrial
Classification code assigned to a contracting opportunity.
What is a
Small Disadvantaged Business Concern?
A small
business concern that is at least 51 percent owned by one or more
individuals who are both socially and economically disadvantaged.
This can include a publicly owned business that has at least 51
percent of its stock unconditionally owned by one or more socially
and economically disadvantaged individuals and whose management and
daily business is controlled by one or more such individuals.
What is a
Certified Small Disadvantaged Business?
A Small
Disadvantaged Business Concern that is certified by the SBA. SBA
certifies SDBs to make them eligible for special bidding benefits.
What is a
Service Disabled Veteran Owned Small Business?
A
business which qualifies as a small business and is 51%
unconditionally owned and controlled by one or more person(s) who
served in the Active Military , Naval, or Air Service, and who was
discharged or released under conditions other than dishonorable, and
whose disability was incurred or aggravated in line of duty in the
active military, Naval, or Air Service, or in the case of permanent
or severe disability, the spouse or permanent care giver of such
veteran. Click here for more information.
What is
the HUB-Zone Business Program?
The
program encourages economic development in historically
underutilized business zones - "HUBZones" - through the
establishment of preferences. Firms must be certified by the SBA in
order to participate. For more information:
https://eweb1.sba.gov/hubzone/internet/general/whoweare.cfm#2
What is a
HUB-Zone Business?
To be
certified as a HUBZone Business, the firm must be a small business
and it must be located in a "historically underutilized business
zone" or HUBZone. it must be owned and controlled by one or more US
Citizens, and at least 35% of its employees must reside in a HUBZone.
For more
information:
http://app1.sba.gov/faqs/faqindex.cfm?areaID=4
What is
8(a)?
The
SBA's 8(a) 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. To participate in the 8(a) Program,
a firm must be certified by the SBA.
For more
information:
http://www.sba.gov/8abd/indexfaqs.html
What is
an 8(a) Business?
To
participate in the 8(a) Program, a firm must be certified by the
SBA. To qualify, the firm:
must be a small business, must be unconditionally owned and
controlled by one or more socially and economically disadvantaged
individuals who are of good character and citizens of the United
States, and must demonstrate potential for success.
For more information:
http://www.sba.gov/8abd/indexfaqs.html
What is a
Certified 8(a) Firm?
A firm
owned and operated by socially and economically disadvantaged
individuals and eligible to receive federal contracts under the
Small Business Administration’s 8(a) Business Development Program.
Click here for more information. Click here to apply
What is a
Product Service Code (PSC)?
PSC's
are categorizations of what the U.S. Government buys. They consist
of Federal Supply Classification Codes (FSC) for commodities, which
are numbered 10-99, and Research and Development codes cover all
aspects of research, development, and evaluation including
management and support, which are lettered a-z.
To pick
the correct product or service code:
http://fpdcapp.gsa.gov/pls/fpdsweb/PscWiz
What is
an Acquisition?
The
acquiring of supplies or services by the federal government with
appropriated funds through purchase or lease.
What is a
Best and Final Offer?
For
negotiated procurements, a contractor's final offer following the
conclusion of discussions.
What is a
Contracting Officer?
A person
with the authority to enter into, administer, and/or terminate
contracts and make related determinations and findings.
What is
Contractor Team Arrangement?
An
arrangement in which (a) two or more companies form a partnership or
joint venture to act as potential prime contractor; or (b) an
agreement by a potential prime contractor with one or more other
companies to have them act as its subcontractors under a specified
government contract or acquisition program.
What is a
Negotiation?
Contracting through the use of either competitive or
other-than-competitive proposals and discussions. Any contract
awarded without using sealed bidding procedures is a negotiated
contract.
What is a
Prime Contract?
A
contract awarded directly by the Federal government.
What is a
Request for Proposal (RFP)?
A
document outlining a government agency’s requirements and the
criteria for the evaluation of offers.
What is a
Subcontract?
A
contract between a prime contractor and a subcontractor to furnish
supplies or services for the performance of a prime contract or
subcontract.
Does the
Government only buy not using contracts?
Examples
of procurement methods that do not involve establishing a new
contract include:
Using a government purchase card (that is, a credit card)placing
a task order (or a delivery order) against an existing contract.
The
government wide commercial purchase card is, in effect, a
government credit card government employees may use to make
certain types of purchases. It is known for being used to make
micro-purchases, which are items that do not exceed the
micro-purchase threshold of $3,000.
Ordering from a GSA schedule
For
additional information, see FAR 2.101 and FAR Subpart 13.2.
.