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Government Bidding Facts |
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Less than 5% of the businesses in the United States do business with the U.S.
Government.
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The U.S. Government is the largest company in the world. Approximately $1
billion in new opportunities in the services sector of Government Bidding were
available to bid on by private business each day.
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The federal government signs over 11 million Bids a year.
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Companies are winning and are awarded new Bids daily. About 95% of federal Bids
are awarded to small- and medium-sized business vendors.
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Government procure services range from Food Services and Janitorial projects to
complex space flight systems development.
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A Small Business Set-Aside Program (SBSA) was developed to help assure that
small businesses are awarded a fair proportion of government Bids by reserving
certain government purchases exclusively for participation by small business
concerns. Any contract that has an anticipated dollar value between $2,500 and
$100,000 in value is reserved for small, small disadvantaged, woman-owned, and
small veteran-owned businesses.
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How the Government Buys |
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The government purchases the products or services it needs by two
methods: sealed bidding and negotiation. The sealed bidding is formal
advertising which involves the issuance of an Invitation for Bid (IFB) by a
procuring agency. Following receipt and evaluation of the bids, a contract is
usually awarded to the lowest priced bidder, determined to be responsive and
responsible by the Bidding officer. The second method of competitive proposals
is buying by negotiation which involves the issuance of a Request for Proposal
(RFP) or Request for Quotations (RFQ), and the negotiation of each element in
the proposal. An award is made to the proposer who has the best proposal in
terms of both technical content and price.
Invitations for Bids (IFBs) usually include a copy of the specifications for
the particular proposed purchase, instructions for preparation of bids, and the
conditions of purchase, delivery and payment schedule. The IFB also designates
the date and time of bid opening. Each sealed bid is opened in public at the
purchasing office at the time designated in the invitation. Facts about each
bid are read aloud and recorded. A contract is then awarded to the low bidder
whose bid conforms with all requirements of the invitation and will be
advantageous to the government in terms of price, and price-related factors
included in the invitation.
When buying by negotiation, the government uses procedures that differ from
sealed bidding. Buying by negotiation is authorized in certain circumstances by
law under applicable Federal regulations (Federal Acquisition Regulation or
FAR). Negotiated contracts often cover advanced technology not widely supplied
by small businesses and may include very complex areas of research and
development, projects connected with highly sophisticated systems, missile
programs, and aircraft and weapons systems. Negotiation procedures, however,
may also be applied to more-or-less standard items, when negotiation authority
has been properly documented by the Bidding office. For example, items or
services may be purchased by negotiation when it is impossible to draft
adequate specifications or to describe fully the specific item, service, or
project.
Requests for Quotations (RFQs) may be used in negotiated procurements to
communicate government requirements to prospective contractors. A quotation
received in response to an RFQ is not an offer and cannot be accepted by the
government to create a binding contract. An RFQ may be used when the government
does not intend to award a contract on the basis of the solicitation but wishes
to obtain price, delivery, or other information for planning purposes. After
reviewing the various quotations received on the proposed purchase, the Bidding
officer may negotiate further with the firms that have submitted acceptable
proposals to assure the contract most advantageous to the government.
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Benefit from Government
Bidding |
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You get paid regularly from this client. Government Bidding allows businesses,
many small and mid-sized businesses, to have a bevy of profitable, long term
bids. For example, many Federal Government Bids have continuous contract terms
for three to five years. This provides a long term steady cash flow with decent
profit margins.
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Your client won't move away, run away and hide, and not pay their bills.
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The high profile your company achieves as a result of Government Bids is a good
advertising tool for your firm.
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Government Bidding can make your business grow fast. Companies currently
involved in government Bidding started out with smaller Bids and worked their
way into larger and larger contract awards. Begin to prepare your company today
for long term growth in the expanding Federal Government marketplace.
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The government is literally seeking vendors in all avenues of business.
Whatever service or product your company provides, the government is seeking
it.
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Government Bidding
Terminologies |
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Bid - a tender, proposal or quotation submitted in response to a solicitation
from a Bidding authority
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Bidders' Conference - a meeting to discuss with potential bidders, technical,
operational and performance specifications, and/or the full extend of
financial, security and other contractual obligations related to a bid
solicitation
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Closing Date - the deadline for all bid submissions
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Competitive Bidding - offers submitted by individuals or firms competing for a
contract, privilege or right to supply specified services or merchandise
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Contract - obligation between competent parties up a legal consideration, to do
or abstain from doing some act
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Contract Amendment - an agreed addition to, deletion from, correction or
modification of a contract
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Contractor - one who Bids to perform work or furnish materials in accordance
with a contract.
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Estimated Value - indicates the approximate value of the contract
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Procurement - the process of obtaining material and services which includes the
determination of requirements and acquisition from a supply system or by
purchase from the trade
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Proposal - an offer, submitted in response to a request from a Bidding
authority, that constitutes a solution to the problem, requirement or objective
in the request
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Invitation for Bid (IFB) – an IFB is also referred to as a “sealed bid”. It is
usually for requirements over $100,000, it is competitive and the lowest bid
will win
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Request for Proposal (RFP) - an RFP, while generally used for requirements of
$25,000 or more, is often employed for requirements where the selection of a
supplier cannot be made solely on the basis of the lowest price. An RFP is used
to procure the most cost-effective solution based upon evaluation criteria
identified in the RFP
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Request for Quotation (RFQ) - an RFQ is normally sent out when a requisition is
received for goods and services valued at less than $25,000. The bid documents
are kept simple so that the contract can be awarded quickly
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Common Goods and Services
Purchased and Solicited by the Government |
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Architectural: Civil Engineering, Engineering Design and Drafting
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Cleaning and Custodial: Janitorial Equipment and Supplies, Linen and Towel
Services, Parking Lot, Window washing
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Construction and Remodeling: General Contractor, Roads, Bridges,/ Sidewalk,
Roofing / Roof, Door, Window, Ceiling, Flooring / Floor, Fencing / Fence,
Painting, Carpentry, Cabinet, Mill Work, Plumbing, Pumps, Pipeline, Sanitation,
Drainage, Water-Proofing, Electrical / Electronic, Lighting, Elevators,
Escalators, Lifts, Playground
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Construction and Building Materials: Masonry, Stone, Brick, Tile, Drywall,
Plaster, Road Work, Concrete
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Consulting Services: Grants Writing, Lobbyist, Legal, Litigation, Mediation,
Arbitration
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Environment and Conservation: Surveying, Mapping, Aerial Photography,
Environmental Testing, Site Inspection, Asbestos, Hazardous Waste, Trash
Disposal,
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Recycling, Waste Water, Sewage Treatment, Air Purification, Tanks, Excavation,
Demolition, Salvage
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Financial and Accounting: Accounting, Bookkeeping, Auditing, Credit Card
Services, Credit Reports, Medicaid billing, Debt Collection, Financial
Consulting,
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Retirement Plan, Investment
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Food Services: Cafeteria, Catering, Drink, Vending Machines, Concession Stands
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Garden and Landscaping: Lawn Care, Mowers, Snow Removal, Sprinkler, Irrigation,
Insect, Pest and Bird Control, Herbicide
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HR Services: Personnel, Staffing, Recruiting, Executive Search, Training,
Office and Clerical, Secretarial, Proficiency Assessment, Relocation
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Computer Hardware: Computer Cabling, Hardware Rental, Repair and Maintenance
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Computer Software: Information Technology (IT) Consulting, Programming,
Computer Security, Firewall, Database, Data Storage, Backup & Recovery,
E-learning, Computer or Web-based Training, E-Procurement
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Insurance: Auto, Marine, Aviation, disability and life insurance, workers
compensation, Dental, Healthcare
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Machine Shop and Fabrication: Metal fabrication, Lathing, Welding, Machining,
Tools and Tooling, Hardware, Repair, Body Work, HVAC, Mechanical
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Mailing: Courier, Messenger Service, Labeling, Sorting, Postage Equipment,
Packing Supply
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Marketing and Communication: Advertising, Logos, Banners, Conference,
Convention, Event Management, Market Research, Survey, Call Center, Multimedia,
Promotional, Tradeshow Display, Graphic Design
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Medical and Laboratory: Lab Testing, Pharmacy, Medical Device, Medical and
Laboratory Equipment and Instrument, Dental, Veterinary, Medical Professionals,
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Personal Care, Rehabilitation, Psychotherapy, Drug Counseling, Medical
Facilities, Ambulance, Burial, Cremation
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Office Supplies: Copier, Printer, Cartridges, Toners, Fax Machines, Furniture,
Toiletries, Filing Systems, VCRs, Radio, Television, AV Equipment, Shredding
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Other Products: Battery, Museum, Musical Instruments and Accessories, Uniform,
Embroidery, Clothing, Individual Equipment, and Insignia, Athletic Equipment,
Firing Ranges, Signage, Way finding (wayfinding), Agricultural, Forestry,
Animals, Lumber Mills, Household Appliances and Equipment, Chemicals, Fuel,
Oils, Utilities, Elections, Voting Equipment and Supplies
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Other Services: Recreational Services, Private Investigator, Community
Services, Polygraph, Auctions, For Sale, Auctioneering, Re-Upholstery,
Equipment Lease or Rental
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Printing, Reproduction: Equipment, Bindery, Book Binding, Typeset, Duplicating,
Photocopying, Graphic Design, Layouts, Lettering, Calligraphy, Microfilming,
Microfiche, Photo Lab, Photo Finishing, Screen Printing
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Research: Energy, Healthcare, Science and Technology
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Security and Safety: Fire Fighting, Rescue, Fire Control Equipment, Fire
Alarms, Extinguishers, Fire Sprinkler, Lock Smith, Security Equipment, Mass
Notification, Warning Sirens, Security Access, Smart ID, Security Guard, Radio
Dispatch, Guard Dog, Law Enforcement, Surveillance, Camera
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Facility Rental and Management: Buildings, Warehouses, Parking Facilities,
Meeting Room, Offices, Hotel, Trailers, Portable Classrooms
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Telecommunication: Cables and Cabling, Fiber Optics, GIS, GPS, Network, VPN,
Telecom Systems, Radio and Computer Aided Dispatch, Vehicle Tracking System,
Voice Over IP, Voice mail, Wireless, Mobile Technology and Device
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Translation, Transcription: Interpreters, Translation (Foreign Language), Sign
Language, Medical Transcription
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Transporting and Warehousing: Bus, Van, Vehicles, Helicopter, Aircraft,
Aviation, Travel Service, Fleet Management, Hauling, Freight, Trucking, Towing,
Office Moves, Warehousing, Storage, Trucks, Utility Trailers, Marine, Docks,
Boats
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Weapons and Ammunitions: Explosive, Armored Vehicles
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Searching Government
Solicitation Opportunities |
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If you are a small businesses who is just getting started, you
might find doing business with the government can be confusing. It is important
that you do your research, and be prepared before you actually begin bidding
for Bids. By law, all federal procurements over $25,000 must be published.
Under-$25,000 opportunities may be published at the discretion of the buyer.
There are about 80,000 public purchasing authorities in the United States. Many
of these authorities post solicitation and bidding opportunities that are
spread over thousands of Web sites. It is impossible for a business to monitor
all the sales opportunities while keeping an eye on business operation.
Government Bids and Contracts Services is the source for companies wishing to
thrive in government Bidding. RFP Bids sends you current government bids and
government RFP via its daily notification emails. These emails will contain all
the newly published government procurement and solicitation opportunities that
match your business interests.
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Register with the
Government Agency as Vendors |
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Government agencies will typically require that your company be
registered with them before they can do business with you. If you wish to do
business with the Federal government you must register with the Central
Contractor Registration (CCR). Government agencies and private industry are
only required to register in the database once with subsequent requirements for
annual updates. Registering with CCR automatically registers you with every
Defense agency.
Registering with local governments varies from one government agency to
another. Different government agencies tend to do things differently. So be
prepared to discover that selling to one government buyer is much different
from selling to another. You may be required to fill out multiple pages of
paperwork to mail in, or it can be as simple as a 10 minute online form.
Sometimes, if you’re selling to a state, or especially local government, there
may be no registration requirement, particularly for lower-priced products.
Registering to do business with government agencies can be cumbersome. Focus
first on only those with whom you will actually conduct business in the short
term. Don’t spend too much time until you’ve determined there’s a reasonable
probability the agency is going to become a customer.
Another reason for registering wit the government agency is being able to be
included in the bidders list. The bidders list is the tool most widely used by
federal procurement offices to identify potential contractors. A bidders list
contains names of suppliers of materials and services which are possible
sources from whom bids may be solicited. The bidders list is made up of
business firms that have advised the buying office of a federal Agency or
department that they want to bid on a particular item and have supplied data
showing their ability to fulfill Bids for the item, service or project.
The following are some of the factors government agencies use in evaluating
prospective suppliers for their bidders:
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Size of firm
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Past experience
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Financial status
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Management staff capabilities
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The company's record with regard to labor relations
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Work capacity
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Bonding capacity
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Product service record
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Facilities
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Professional credentials
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Reputation
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Reference checks
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Respond to Solicitation:
Preparing Bids and Proposals |
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Once you’ve identified a bid or contract to respond to, the next
step is acquiring the bid package. Most of the time, this information is
downloadable as a Word or Adobe document. Depending on government agencies,
sometimes you will need to contact the purchasing office at the government
agency for the solicitation document.
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. Bids 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 bidders and to conditions of
purchase, delivery and payment.
When preparing a proposal on a negotiated procurement, 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 opportunity to
seek modification of specifications, conditions of purchase, or delivery and
payment.
If the Bidding 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.
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Elements of a Proposal |
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An Executive Summary which tells the evaluators why they should choose your
company for the contract.
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Explain to the Government how your company is going to accomplish the requested
work.
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Complete and signed all paperwork correctly. Errors could result in your
proposal being rejected by the government Bidding office.
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A list of resume and qualifications and responsibilities of the key personnel
and subcontractors named in the proposal.
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Address the major topics in the request for proposal (RFP) in the same sequence
as requested.
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Ensure that the charts and graphs included in the proposal are relevant and
should be used as exhibits whenever possible.
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Provide a safety plan if you are preparing a proposal that requires the use of
machinery, chemicals, or equipment that could conceivably cause injury.
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Track Proposal or Bid |
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It is important to track your bid after it has been submitted. Once
the agency has collected all the bids they begin evaluating each one and will
ultimately decide on one particular business for which to award the contract.
Sometimes the government may want to do a pre-award survey. This means you must
be able to present to them that your company is able to successfully accomplish
everything you’ve submitted in your proposal. Once the award is finally made,
the name of the successful bidder and the contract price become public
information. This information can be critical to your company whether you win
the bid or not. Do not be quick to dismiss this! After the bid is awarded the
winning bid is opened and information is recorded onto what is called the “bid
abstract”. Information supplied in the bid abstract can include items such as;
the winning company, the winning price, and any other information the bidding
officer deems important. You should document this information as it could prove
to be vital information in the future.
And finally Quality Assurance is a critical part of doing business with the
government. How can you prove that your product/service will be up to the
quality the buyer requests, assuming you are being considered for the bid, or
after you have already been awarded the bid? You need to have a Quality
Assurance (QA) program already in place, and it must also be well documented to
show your buyer. Your assurance program must be organized to properly evaluate
the product. This may include recorded/written tests, inspections, or other
necessary assessments to be able to verify the quality of your product. |
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