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Working
With
Uncle
Sam WASHINGTON (By Bridget McCrea) August 19, 2005 - There was never any doubt in Jim Jardon’s mind that the U.S. government would be a good client for his small, Orlando-based startup. In fact, soon after opening the doors to the firm 15 years ago, he and his team were already going after lucrative contracts and watching their sales and employee numbers grow as a result. “We’ve been doing government contracting since day one,” says Jardon, president and CEO of Jardon and Howard Technologies, Inc. (JHT), which specializes in Web- and CD-based training materials for the government. With sales of $80 million in 2004, up from $400,000 in 1990, the company started with 26 employees and today has about 1,000 workers based nationally. With offices in Pensacola, California, Maryland and the Kennedy Space Center, JHT derives more than 70 percent of its annual revenues from government contracts, mainly with federal agencies. Along the way, Jardon, who is of Cuban and Spanish heritage, has learned the ups and downs of doing business with Uncle Sam. “Whether you’re selling a product, service or both, it takes time to reach out to those agencies and officials who have the work,” says Jardon. Getting certified through the Small Business Administration’s 8 (a) business development program, as well as obtaining state, county and city certifications, is a first step. Named for a section of the Small Business Act, 8 (a) is a business development program created to help small, disadvantaged businesses compete in the American economy and access the federal procurement market. Small businesses that are at least 51-percent owned by minorities may also be certified as Small Disadvantaged Businesses (SDBs) by the SBA and are eligible to receive certain preferences in federal procurement actions. “The government instituted these processes to keep big businesses from taking advantage of the little businesses. It’s not unheard of for a large business to use a small firm as a front to get contracts,” says Jardon. Do your research “There are thousands of Hispanic business owners participating in federal contracting,” says Stephen Denlinger, president and CEO of the Latin American Management Association in Washington and a federal procurement advocate for the United States Hispanic Chamber of Commerce. “Those that succeed are typically the ones that do their homework by first finding out which agencies, if any, are buying their product or services.” To do that, Denlinger suggests searching through what are known as “procurement forecasts,” which are available online at the respective agencies’ websites [see Take Action box below]. Small businesses should also check out the Federal Procurement Data Center, a repository of information on all contracts that every federal agency has issued, Denlinger recommends. Using North American Industry Classification System (NAIC) codes, you can research which federal agencies have purchased your products or services in the past. Registration is another key to success with government contracts. The Central Contractor Registration database, for example, serves as a federal clearinghouse for vendors, including small businesses. Women- and minority-owned businesses may also want to get certified through the National Association of Women Business Owners or the National Minority Supplier Development Council. Once the legwork is done, you’ll want to contact the various Offices of Small and Disadvantaged Business Utilization (OSDBUs) within those agencies. Set up meetings with them and get their advice and guidance on how to proceed, says Denlinger, then ask them to arrange meetings between your firm and those departments or bureaus that may have a need for your products. The Department of Agriculture, for example, which established its OSDBU in 1979, purchases more than $3 billion in goods and services annually, and as part of its purchasing policy ensures that small, disadvantaged, and women-owned businesses receive a “fair and equitable share” of the contracts awarded by the department.
“The
most
important
functions
of the
OSDBUs
are
helping
companies
ascertain
whether
or not
the
agency
buys
anything
that the
company
is
selling,
identifying
exactly
where in
the
agency
that
product
or
service
might be
purchased,”
says
Denlinger,
“and
setting
up
meetings
on
behalf
of the
vendor
who
might be
interested
in doing
business
with
that
particular
agency.” Comprising members of the private sector, government, suppliers, Hispanic businesses and members of the USHCC board of directors, the USHCC Procurement Council works with the group’s leadership to expand the level of procurement opportunities for Hispanic businesses within corporations, government and the tier 1 supplier community. Massey Villarreal, president of the USHCC federal sector procurement council and co-chair of the procurement committee, says companies need to realize that doing business at the state or local level is much different than working with the federal government. Local jurisdictions often have their own rules and certifications, so you’ll want to check into those guidelines before jumping in. At the federal level, much of the process and requirements are homogenized across the spectrum, with some exceptions.
Villarreal
suggests
starting
locally.
“It’s on
your own
turf, so
it will
be
easier
to
navigate
and
you’ll
have
better
access
to the
officials
handling
the
procurement,”
he says.
Good
choices
include
the
state
Department
of
Health
and
Department
of
Transportation,
both of
which
tend to
have the
largest
budgets
among
the
state
agencies.
“As a small business owner, I would shoot for local contracts, become a subcontractor to a large prime contractor and start earning my stripes as a subcontractor who is aiming to fulfill a goal on a large contract,” says Villarreal. Jardon also sees significant opportunity at the federal level for business owners who are realistic about their capabilities and who do their homework before submitting any bids. “The government isn’t going to back up to your porch and dump contracts on it just because your company is minority-owned,” says Jardon. “You have to work for it, learn as much as you can and know how to do research. There are no free lunches.” For additional information on federal procurement opportunities, visit: Office of Federal Procurement Policy Guidelines, news releases and links. www.whitehouse.gov/omb/procurement Federal Procurement Data Center Information on all contracts issued by all federal agencies. www.fpdc.gov
Federal
Procurement
Data
System
Links to
reports,
agencies,
Central
Contractor
Registration
A
federal
clearinghouse
for
vendors.
USHCC
Procurement
Council
Works to
expand
the
level of
Office
of Small
and
Disadvantaged
Business
Utilization
(OSDBU) In addition. OSDBUs provide an annual report of planned procurements by the agency that you can use to identify specific opportunities; a list of prime contractors, which can help identify subcontracting opportunities; and contracting outreach programs such as specialized training and vendor fairs for small businesses and SDBs. The following is a list of departments and agencies with OSDBUs.
U.S.
Department
of
Agriculture
Department
of the
Air
Force
Department
of the
Army
U.S.
Department
of
Commerce
Defense
Contract
Management
Agency
(DCMA)
Defense
Information
U.S.
Department
of
Defense
Defense
Logistics
Agency
Department
of
Homeland
Security
U.S.
Department
of
Education
U.S.
Department
of
Energy
Environmental
Protection
Agency
Executive
Office
of the
President
U.S.
General
Services
Administration
U.S.
Department
of
Health
and
Human
Services
Women
Business
Rep.
U.S.
Department
of
Housing
and
Urban
Development
U.S.
Department
of the
Interior
U.S.
Department
of
Justice
U.S.
Department
of Labor
National
Aeronautics
and
Space
Administration
Department
of the
Navy
National
Science
Foundation
Nuclear
Regulatory
Commission
Smithsonian
Institution
Office
of Equal
Employment
and
Minority
Affairs,
Supplier
Diversity
Program
Social
Security
Administration
U.S.
Department
of State
U.S.
Department
of
Transportation
Transportation
Security
Administration
U.S.
Department
of the
Treasury
U.S.
Postal
Service
U.S.
Department
of
Veterans
Affairs
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