SMALL BUSINESS FEDERAL GOVERNMENT CONTRACTING ("Smalltofeds")
A FREE WEB SITE HELPING SMALL BUSINESS SUCCEED IN THE FEDERAL GOVERNMENT MARKET. See Right Margin for table of contents and free book and document downloads via links and "Box" cubes. Free MicroMentor counseling for small business at: https://classic.micromentor.org/mentor/38640
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Monday, August 25, 2025
10 Common Traits Among Successful Small Business Government Contractors
Thursday, August 21, 2025
Seven Management Techniques To Achieve A Small Business Government Contract
One of the biggest challenges for a small business in government contracting is achieving that first major contract. A small business entering the field does not have a government contract past performance record to include in proposals to federal agencies. At the onset, the only qualifications that can be referenced are commercial successes and the individual expertise and qualifications of the owner (s), employees and management.
Past Performance Challenge
Here are seven small business management techniques to assist in achieving that first government contract:
A contingent hire agreement is one way to approach an experienced employee with the prospect of joining your firm at a later time when the business base is there to permit professional advancement. Under such an agreement the prospective employee agrees to contribute time and effort on a proposal for a new contract and is assured on paper by your company of a position on the project when it is awarded to your firm.
Such arrangements are generally recognized by the government as a credible way for new or start-up businesses to grow and agencies will accept resumes of experienced professionals in proposals from small business contractors with signed contingent hire agreements even though the personnel may not yet be on the company payroll.
Prospective employees of this type are often available from the retired or downsized ranks of prime contractors. Be aware that government procurement integrity regulations apply. Individuals should not be considered who have a potential conflict of interest in the project you are bidding due to a former association with the buying agency in a source selection authority role as specified in FAR Section 3.104.
You can download a recommended draft shell for a contingent hire agreement from the right margin of this site at the BOX "References" cube or at the following link: Contingent Hire Agreement
2. Seek government solicitations for taking over incumbent work forces. In some cases the government designates base operations contracts, system support contracts and other service contracts at military installations or federal agency locations as small business set-asides. In certain of these contracts the services may have been performed until now by a large corporation which is no longer eligible to compete due to the small business designation of the current procurement. The employees of this large company become available for recruitment since they will lose their jobs at the location if they do not join the winning company. These individuals have built-in technical expertise on the project and government contracting backgrounds. Acquiring an Incumbent Work Force
4. Team with large business contractors who have experience in the government contracting field. As part of such teaming arrangements they may be willing to trade-off their expertise and assistance for your particular technical skills and your small business participation as a subcontractor on new contracts. Remember large government contracting businesses are required to submit and perform to annual plans or buying from small business to the government. Failure to do so can jeopardize their current government contracts or place in danger the award of a project where a small business plan is required.
You have motivated large business prospective partners available to you in the government contracting community. Protect yourself with proprietary data agreements and insure that your company's work scope for a given project is well defined in a thorough written teaming agreement. Large businesses will respect you for your professionalism when you demand a formal business approach. Teaming in Government Contracting
If you are a small business with no other set-aside designations, seek teaming arrangements as a subcontractor with minority-owned, veteran-owned or women-owned businesses. 51% of a project (work scope, dollars and hours) must go to such designated businesses under such arrangements, but your part of the program is still significant and earns past performance credit. Your team members will not usually be your direct competitors but will be involved in lines of work that usually complement your business and enable the team to fulfill a scope that is larger than any single member could undertake alone. Teaming arrangements can result in winning larger jobs that can span a number of years in duration and mean good, solid cash flow for all participants.
7. Self-market to federal agencies with your capabilities statement and ideas for government programs. If you are a Minority-owned 8(a) or a Hub Zone-located small business, a government agency can sole source a procurement to you without competition under the Federal Acquisition Regulation (FAR). Even if you are not an 8(a) or Hub Zone firm, self-marketing has tremendous potential. There are over 50 federal government agencies with facilities, bases, locations and offices housing contracting officers and buyers all over the United States. Find the nearest locations to you via the agency search filters at SAM Contract Opportunities and send them a capabilities statement with a request for a meeting with their small business liaison officer. Your Capability Statemenr
Federal agencies are required by statute to meet with you. Once you are there find out the names and contact information of their technical management authorities who define requirements for acquisitions. Determine what the agency needs through research with the technical decision makers and on the web. Most agencies forecast their long range plans at sites available to the public. Define a creative project in terms of meeting your client's needs and offer it to the agency points of contact as a prospective set-aside contract.
If the agency posts your self-marketed project for competition, you will still be in the driver's seat during the proposal stage, having developed the concept and positioned yourself well ahead of your prospective competitors in terms of a solution with your customer. You may well have convinced the agency to set the program aside for a small business category in which you qualify Small Business :Set-aside :Designations . That leg up cannot be achieved after a solicitation has been posted to SAM Contract Opportunities.
Try combining a well written business plan with an aggressive marketing campaign and the seven approaches outlined above. Your Government Contracting Business Plan .
Entering government contracting as a small businesses is indeed a challenging time, but there are many opportunities awaiting you. Capitalize on those opportunities and win your first federal government contract.
Tuesday, August 19, 2025
What Small Business Needs to Know About SAM Contract Opportunities
A PUBLIC DOMAIN ACQUISITIONS BULLETIN BOARD
Established as the public announcement vehicle for federal procurement, SAM Contract Opportunities is a web-based, "Public Announcement Bulletin Board" to satisfy fairness in government contracting laws mandated by US law. It is a terrific market research tool and an absolute necessity once a solicitation has gone formal to stay abreast of modifications, changes in proposal due dates, questions and answers and other necessary information that contracting officers are required to make public.
WHAT ANNOUNCEMENTS MEAN
SAM Contract Opportunities is the mandated posting point for contracting officers in all federal agencies. It is also the required notification point for GSA schedule solicitations, contract award announcements of all types and other information that is required by law for communication to the public in a fair and open manner regarding federal government procurement of supplies and services. The site contains "Sources Sought" and bidders conference notices, government requests for industry comment on draft RFP's and formally published solicitations with proposal due dates.
A solicitation posted at SAM Contract Opportunities generally means that a procurement has received funding and the contracting officer has been authorized to start the source selection process.
Often misunderstood, is that much has occurred in the way of marketing activities by companies in advance of notices formally published by the government on SAM Contract Opportunities. By the time the formal, solicitation is published it is too late to market for setting a procurement aside for a small business designation if it has not already been established as such. In addition, formal solicitation publication closes the window on self-marketing by HUB Zone and 8(a) firms for set asides to them individually without competition. In short, businesses have been marketing for the requirement long before it became formally announced at SAM Contract Opportunities.
Finding a solicitation that is ideal for your company for the first time on SAM Contract Opportunities is excellent market research insight into what the agency publishing the requirement is buying. However, a careful bid/no bid analysis should be conducted as to whether it is prudent to go through the expense of a proposal if the opportunity has not been a new business target for your firm earlier in the game. Please see the following article on completing a bid/no bid analysis:
Small Business Federal Government Contracting Proposal Preparation
NAVIGATING THE SITE
Start by registering at SAM. Many of the features available to users are not accessible without a registration. Begin some careful searches by key words into agency solicitations that could use your products and services.
The data base is huge and it is best to move from specific key word selections to the more general with experience to avoid being inundated with meaningless solicitations.
As you examine the solicitations, see who has indicated an interest in bidding them among your competitors and the primes you are pursuing and then target such projects for participation by your firm either as a prime yourself or as a subcontractor. Pay particular attention to "Sources Sought", Draft RFP "Request for Industry Comments" and similar announcements that indicate an early requirement taking shape.
For active solicitations that you wish to monitor, check receive updates and announcements by email. Once the solicitation reaches the formal RFP stage and a due data for a proposal has been established, if you have decided to bid the job the "Follow" feature is especially critical.
If there is a bidders conference and you intend to bid the job, make plans to attend. When questions are solicited you may ask them but remember that your question and its associated answer will be published by the government so be careful not to educate your competition to your win strategy in the process.
You do not have to indicate you are interested in bidding the job by registering as an "Interested Vendor" in order to bid a solicitation. Some companies prefer not to advertise their bid intentions, seeking to avoid competitors modeling their firm.
A MARKET RESEARCH SOURCE
If you are new to federal government contracting and wish to determine the best market for your supplies and services, observing what a given agency is buying on SAM Contract Opportunities is a key factor.
Keep in mind that the decision makers in government contracting are the technical managers and process people behind the scenes in an organization (either government agency or large company). They have the budget authority, program responsibility and accountability. These people pass their decisions on to buyers and contracting officers via signed requisitions. Buyers and contracting officers are really no more than gate keeping staff members, knowledgeable in legalities, terms and conditions and who sign on behalf of the agency or company AFTER an internal review by the executives who have technical and management responsibility.
Thus your real marketing targets are behind the gatekeepers and little is achieved by marketing to a contracting officer or buyer. This rule of thumb applies with prime contractor contracting specialists and administrators as well as government personnel. For further details on the roles of these personnel please see the following link:
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Federal Government Contracting Customer Relations
Once again, bidding an active solicitation after it has hit SAM Contract Opportunities may be too late. The idea is to use them for market research so you can target similar projects earlier in the process. Research the technologies and services in which your targeted agencies and primes are involved through trade magazines, Internet articles, web sites, employment hiring fairs and industry conferences.
Focus your marketing campaign on finding evolving projects you can use as vehicles to approach teaming partners and agencies directly with a marketing campaign geared to your capability statement. Develop a solution to the specific needs of the project and present it to gain their attention.
Your principal challenge as a small product and services provider is finding evolving programs and projects into which your capabilities fit. Once you have found such targets it is then a matter of marketing brusquely to get into the game with eye catching solutions and capabilities.
SUMMARY
When a procurement becomes public on SAM Contract Opportunities it stays public, but many invisible strings behind the scenes are likely already attached to it by aggressive and talented companies who may have sculpted the requirement with the agency, assisted in writing the statement of work or influenced the structure of the specifications to favor their products and services. All this is good, competitive marketing practice in the government contracting venue, just as it is in the commercial marketplace.
Use SAM Contract Opportunities as discussed here in consonance with the following teaming and marketing articles:
Small Business Teaming In Government Contracting
Multiple Front Marketing In Government Contracting
Marketing A Small Business In The Federal Government Contracting Environment
SAM Contract Opportunities is an absolute necessity once you make a bid decision. It is an extensive resource prior to such decisions and if utilized prudently it can enhance your small business government contract marketing plan dramatically.
Friday, August 15, 2025
New Federal Fiscal Year Ahead - Have You Managed Contract Funding Risk?
As the federal fiscal year draws to a close and the new year opens on 1 October, an astute contractor will have examined the funding status of all government contracts for risk.
Limitation of funds and funding exposure must be a vital topic for every government contractor.
THE FUNDING CHALLENGE
Many federal contracts are funded incrementally, usually based on the government fiscal year that runs from 1 October to 30 September. Although the government may negotiate dollar price ceilings for cost plus and time and materials contracts or firm, fixed total price arrangements, the contracts themselves may be incrementally funded, particularly if they extend over multiple government fiscal years. A contract may contain negotiated prices or a cost ceiling but also specify an incremental funding value.
The contractor is required to inform the government when actual costs incurred plus obligations to suppliers or payroll on a specific contract reach certain thresholds of the current incremental funding specified in the contract (usually 80%). The government is then obligated to further fund the contract.
In the event the contract is not funded further, the contractor has the right to stop work before he exceeds the incremental funding. Some contractors choose to operate on "risk," continuing to perform on a contract while exceeding the incremental funding in booked cost and obligations.
The government is under no obligation to reimburse the contractor for invoiced amounts exceeding incremental funding. Nearing the end of a government fiscal year, a contractor may find delays in funding reaching all the way to congress. This situation must be managed with the government contracting officer. Limitation of Funds and Funding Exposure
STOP WORK ORDER
Contractors may receive stop work orders from agencies unless their contracts were fully funded in the previous fiscal year. The government reserves the right to
de-obligate funding on contracts, which can effectively bring them to a halt.
Applicable charge numbers in the accounting system must be closed until the stop work order is lifted and any effected suppliers and subcontractors must be notified to do the same.
To the degree the government has not paid anything on the contract or delivery order they have no ownership rights to the physical product and you are free to complete it and sell it to another customer (commercial or government that has not stopped work). If the government recommences the order, quote a new price and delivery from ground zero.
At the bottom line a stop work is blunt and to the point. Treat it as if you will never hear from this customer again to manage the risk.
To the degree you do hear from the Contracting Officer again and he or she has the funding to recommence work, be prepared to submit a proposal for what it will take to start the effort and a realistic delivery schedule to complete it, but do not build any retroactive costs incurred during the stop work period into your logic and expect to bill them; they may not come to payment fruition.
Wednesday, August 13, 2025
10 Golden Rules For Small Business Success
2. Do not overextend your resources and get a reputation for poor performance.
3. Do not tell the customer what he or she wants to hear. Tell them what they need to know. They will respect you for it.
4. Network constantly on professional sites such as Linked In, Quora, Alignable and others. Use Groups and Q&A features to accumulate an "Expert" rating from peers in your field.
5. Blog like there is no tomorrow. A blog is quite different than a web site. Provide good, solid information free of charge and use blog searches for synergistic businesses to team with. Teaming is an absolute necessity these days.
6. Be prepared to provide information, samples and valuable service gratis as a marketing tool. Introduce yourself and then immediately engage the client with your presentation tools available to bring your expertise to whatever topic they are interested in. Let them take you where they want to go with their concerns and their needs. Apply your presentation tools and expertise dynamically on the fly in a sincere manner to those concerns and needs and you will be in demand for follow up business.
7. Quote and bill what the client can afford and grow with them (in content and resources).
8. Be dedicated to working yourself out of a job with a specific customer and having your client take over by training. They will remember you and recommend you to 10 others.
9. Remember growth is a function of persistence and foresight. Know where your market is headed and get their first - then write and speak about your success indirectly by helping others. Demonstrate humility and a satisfaction in helping others succeed. They will find ways to give you credit. There are ways of tooting your horn without making peoples' lights go out.
10. Word of mouth advertising from pleased clients is a sure ticket to success.
Monday, August 11, 2025
Utilizing The Freedom of Information Act (FOIA)
BACKGROUND
Extract: United States Department of Justice Web Site:
“Enacted on July 4, 1966, and taking effect one year later, the Freedom of Information Act (FOIA) provides that any person has a right, enforceable in court, to obtain access to federal agency records, except to the extent that such records (or portions of them) are protected from public disclosure by one of nine exemptions or by one of three special law enforcement record exclusions. A FOIA request can be made for any agency record. Before sending a request to a federal agency, you should determine which agency is likely to have the records you are seeking. Each agency’s website will contain information about the type of records that agency maintains.
The FOIA is a law that gives you the right to access federal government information. It is often described as the law that keeps citizens in the know about their government. Under the FOIA, agencies must disclose any information that is requested – unless that information is protected from public disclosure. The FOIA also requires that agencies automatically disclose certain information, including frequently requested records. As Congress, the President, and the Supreme Court have all recognized, the FOIA is a vital part of our democracy.”
POINTS OF CONTACT (POC)
A typical POC page will look like this:
Send requests via fax to: (202) 401-0920
Send requests via mail to:
Office of Management
Office of the Chief Privacy Officer
400 Maryland Avenue, SW, LBJ 2E321
Washington, DC 20202-4536
ATTN: FOIA Public Liaison
(202) 401-8365
(202) 453-6362
Gregory Smith
(202) 205-0733
Robert Wehausen
(202) 401-8365
Elise Cook
Arthur Caliguiran
Christie Swafford
(202) 401-8365
Arthur Caliguiran
Although occasions may arise for use of the FOIA on legal matters, personnel issues, and records that relate to agency background and activities, the most common uses of the FOIA in government contracting are as follows:
- Market Research
- Copies of historical contracts issued by an agency as well as contractor proposals.
- Specific articles supporting a protest action.
The FOIA require a 30 day response time to your request, but actual response times vary by agency and backlog.
If the agency determines the request will exceed $25 in costs, you should indicate in your request that you will be willing to pays those costs to receive the data.
MAKE YOUR REQUEST AS SPECIFIC AS POSSIBLE
Identify the document or documents specifically by name and identifying number (s). When requesting contracts, RFP’s, change orders and similar data, always include the contract number and be specific with regard to references to all changes. If proposals are requested include a specific request for management, technical and cost volumes. The more detail you provide the more likely the response will supply what you wish to have.
BE PREPARED FOR GOVERNMENT REDACTING
When the government receives requests for copies of contracts, proposals and similar data that contain specific in formation pertinent to another company, they are required to contact that company and ask for identification of information the firm deems proprietary. To the extent the firm identifies such data, expect the response you receive to have the data redacted (blanked out and unreadable).
EXPEDITING
Among the larger agencies, especially DOD and Justice, it is rare to receive the information requested in a FOIA within 30 days. Be prepared to expedite, by email, registered letter and by visitation if necessary, depending on the importance of the request to your business.
REFUSALS
Refusals by the government can be appealed if you and your legal counsel make the judgment a given request falls outside of the following exemptions permitted the government or one of three special law enforcement record exclusions detailed at the FOIA web site:
"Exemption 1: Information that is classified to protect national security. The material must be properly classified under an Executive Order.
Exemption 2: Information related solely to the internal personnel rules and practices of an agency.
Exemption 3: Information that is prohibited from disclosure by another federal law. Additional resources on the use of Exemption 3 can be found on the Department of Justice FOIA Resources page.
Exemption 4: Information that concerns business trade secrets or other confidential commercial or financial information.
Exemption 5: Information that concerns communications within or between agencies which are protected by legal privileges, that include but are not limited to:
Attorney-Work Product Privilege
Attorney-Client Privilege
Deliberative Process Privilege
Presidential Communications Privilege
Exemption 6: Information that, if disclosed, would invade another individual's personal privacy.
Exemption 7: Information compiled for law enforcement purposes if one of the following harms would occur. Law enforcement information is exempt if it:
7(A). Could reasonably be expected to interfere with enforcement proceedings
7(B). Would deprive a person of a right to a fair trial or an impartial adjudication
7(C). Could reasonably be expected to constitute an unwarranted invasion of personal privacy "
7(D). Could reasonably be expected to disclose the identity of a confidential source
7(E). Would disclose techniques and procedures for law enforcement investigations or prosecutions
7(F). Could reasonably be expected to endanger the life or physical safety of any individual
Exemption 8: Information that concerns the supervision of financial institutions.
Congress has provided special protection in the FOIA for three narrow categories of law enforcement and national security records. The provisions protecting those records are known as “exclusions.” The first exclusion protects the existence of an ongoing criminal law enforcement investigation when the subject of the investigation is unaware that it is pending and disclosure could reasonably be expected to interfere with enforcement proceedings.
The second exclusion is limited to criminal law enforcement agencies and protects the existence of informant records when the informant’s status has not been officially confirmed.
The third exclusion is limited to the Federal Bureau of Investigation and protects the existence of foreign intelligence or counterintelligence, or international terrorism records when the existence of such records is classified. Records falling within an exclusion are not subject to the requirements of the FOIA. So, when an office or agency responds to your request, it will limit its response to those records that are subject to the FOIA."
When notified by a contacting officer that copies of your company contract(s) and/or proposal(s) have been requested by another firm, identify to the officer the pricing data, proprietary data and sensitive information you do not wish to have disclosed and formally indicate by letter the sections of the documents you wish redacted prior to release to another firm. The officer may or may not provide to you the name of the firm requesting the information. If you are involved in a re-compete effort for which you are the incumbent it is wise to inform the FOIA Officer of the agency involved that you expect to be notified when requests are made for copies of your information.
SUMMARY
We suggest you study the FOIA site and the agency(s) you target for information. Be specific in your requests and be prepared to expedite them. The FOIA can be a valuable tool for your business, but it usually takes patience and practice to use it effectively.
Wednesday, August 6, 2025
Striking the Right Balance In Company Training Programs
Some training will be global, such as policy, corporate ethics and human relations. Other training will be specialized, such as changes in law, company policy or technology by functional areas.
Only those firms that recognize this human weakness and take steps to minimize its impact continue to foster innovation and lean operation.
Functional interface points are the most sensitive. These are the critical areas where one functional organization meets another in the company.
Examples:
Engineering Design meets Manufacturing
Finance meets Estimating
Marketing meets Project Management
Accounting meets Cost Control
Human Resources meets the Hiring Manager
If management fails to understand the risk in these interfacing areas and drives the procedural and process detail too low the organizations will strangle each other with interface control issues and efficiency will suffer.
Make sure the company vision, mission and capability statement are common knowledge:
If ISO 9000, TQM, Six Sigma and other major quality and process programs apply, or are in your future, use your training program and processes to build certification preparedness.
Friday, August 1, 2025
Is The Term"Talent Pool" Obsolete?
Talent is fluid today. It is also being re-defined. Thus, what used to be considered a 'Pool' (either captive or available) is now a technologically-equipped, high speed resource of communicators with motivated skill sets seeking opportunity. Economic hardship has also put a hard, cynical edge on many. Employment selling must occur both ways (employer and employee). To an extraordinary degree the age in which we live is requiring us to redefine trust and the degree to which communication and expectation contribute to it. Loyalty has taken a back seat to the above. Recruiters, companies and entrepreneurs must recognize these hard facts of life. Values As long as values for the organization are base-lined and maintained in the enterprise mission statement and clearly promulgated in objectives to the employees, then it becomes a management maintenance challenge with regard to employee acquisition and retention. The fact that individual value systems may or may not align with the organization values or changes in them is a communications issue. If the conflict is too stark - people will not join a company or will not perform if they join. They will leave or be fired as usual results. In a free society organizations and individuals have choices. "At Will Employment Contracts" are taken literally. In not so free societies other conditions exist that impact values. Conditions there are dictated by governments or stark economic conditions. With the global competition for resources and employment these days, business and governments must view the value issue in its simplest terms and not make a complex science out of it. People, companies, jobs, resources and success will be achieved through supply and demand. All will change to acquire the balance necessary for success and fulfillment of personal values. Managing Talent The most successful organizations pair experienced personnel on a staff basis with junior ones as models. Each has individual assignments and reports to the boss but the senior party is the example in the process/experience-driven aspects of the job and is available to answer questions. The younger individual infuses the older one with energy and new ideas much like osmosis. The result is a hybrid of old and new that works and has been put together by a team. The above approach works extremely well, imposes on no one, results in the young and old learning by observation, satisfaction and recognition for collective efforts and reduction in the boss’s work load; a win-win all around. Know how much leadership to offer and how much to let the individual grow on his or her own. Strike the right balance between specific and generic guidance so the unique individual traits of the workers come through in the business model. Let the employee have a role in solutions to problems, system design and success of the firm. When you do so, your talent will remain stable and grow with you. |