Georgia Tech Procurement Assistance Center

White House mulls the option of posting contract documents online to improve transparency

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The Obama administration is weighing what could be the most ambitious federal contracting transparency effort yet. In May, the civilian and defense acquisition councils, which craft changes to the Federal Acquisition Regulation, caught the federal marketplace by surprise when they announced in an advance notice of proposed rule-making that agencies soon might be required to publish copies of their contracts online in a public database.

The councils are seeking public comment on how best to amend the FAR “to enable public posting of contract actions, should such posting become a requirement in the future, without compromising contractors’ proprietary and confidential commercial or financial information,” a May 13 Federal Register notice stated. The announcement referenced seven administration memos and directives issued during the past 18 months calling for increased transparency from federal agencies. But none of those documents mandated – or even suggested – the posting of government contracts online.

A sweeping mandate to post the text of about 30 million contractual actions online would have significant repercussions for both government and contractor officials. Most contracts include proprietary information about a company’s price, employee salaries and technical capabilities that could prove devastating if disclosed to competitors. Virtually every document would have to be redacted, a heavy lift for federal workers, even with an automated process.

“It will take some effort to go through these things and think about what is sensitive and too troublesome to be released,” says Allan Burman, president of the Jefferson Solutions consulting firm and former administrator of the Office of Management and Budget’s Office of Federal Procurement Policy. “You need a reasoned view from the government, because they can’t just accept what the contractor proposes.”

Industry officials say the initiative is not worth the effort, particularly given that citizens generally can obtain copies of government contracts through Freedom of Information Act requests. In addition, since December 2007, contract summaries – including the name of the vendor, cost of the award, place of performance and nature of the work – have been available on USASpending.gov.

Larry Allen, president of the Coalition for Government Procurement, a contractor trade association, says a very small percentage of citizens would understand the highly technical language buried in the text of federal contracts. “The public is not missing out on much,” he says. “You are not gaining a whole lot, but you are creating a heck of a lot of work for the government.”

But federal watchdogs argue taxpayers have a right to know how the government is spending their money. Scott Amey, general counsel for the Project on Government Oversight, a Washington-based group that has advocated posting contracts online, says the technology exists to protect proprietary data and provide a window into the often arcane federal procurement process. “The administration’s proposal is a refreshing shift after so many years of watching billions of dollars fly out the door and only coded summary data to justify that spending,” he says.

The idea of posting copies of contracts online is not new. During the 2008 presidential campaign, then-Sen. Barack Obama and Sen. Tom Coburn, R-Okla., introduced a follow-up to their 2006 Transparency and Accountability in Federal Spending Act, which created USASpending.gov. The 2008 legislation, co-sponsored by Obama’s Republican rival for the presidency, Arizona Sen. John McCain, would have required federal agencies to post online searchable copies of all contracts they awarded; details about the bidding process; assessments of work already performed; and information on civil, criminal or administrative proceedings against award recipients.

Despite the high-level support, the legislation never moved out of the Senate Homeland Security and Governmental Affairs Committee. An identical bill in the House also floundered. A Senate Democratic source familiar with the measure says some in the George W. Bush administration “questioned whether it was possible to do everything that the bill tried to do.” Among the concerns raised was the feasibility of going through every contract line by line searching for private information to redact.

“It’s certainly a worthy goal to provide people information about who is getting contracts,” Burman says. “I think on balance people would argue that sunshine and openness are good things. But, there is an element of cost associated with all of this.”

OMB spokeswoman Jean Weinberg says the administration is examining the operational challenges associated with publishing copies of contracts. Officials are looking forward “to reviewing the comments [to the Federal Register notice] and having further discussions with agencies and industry to ensure we are appropriately considering their concerns while continuing to promote open government and transparency,” she adds.

Some agencies have experimented with posting contracts online. The Treasury Department has published hundreds of contracts to companies receiving assistance through the Troubled Asset Relief Program. And the General Services Administration released a heavily redacted copy of its contract for the redesign of Recovery.gov, the administration’s central repository for Recovery Act data.

But those efforts have been scattershot and limited to high-profile circumstances. Amey says the administration should consolidate its efforts and create a one-stop shop on USASpending.gov for all federal spending – contracts, proposals, solicitations, audits, performance data, grants and leases.

“POGO envisions an electronic system that allows certain fields or protected data to be redacted from public disclosure,” Amey says. “The result will be a system that reduces paper shuffling and finally allows the public to see details, not scant coded summaries, about goods and services the government buys each year. This effort is a win-win for the government and taxpayers.”

— By Robert Brodsky – Government Executive magazine – August 1, 2010

Webinar scheduled on Oct. 18th to explain GSA’s mentor-protégé program

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The General Service Administration’s Office of Small Business Utilization is scheduled to conduct on-line training about GSA’s Mentor-Protégé Program on October 18, 2010, from 1:00 to 2:00 p.m. EDT.

This webinar is designed to provide both potential mentors and protégés with a general overview of the GSA Mentor-Protégé Program as well as a review of the policies and procedures for participation. You must pre-register for this webinar.

Registration may be accomplished by visiting https://www2.gotomeeting.com/register/734697507.

If you have questions regarding the webinar, please contact GSA’s Anthony “Tony” Eiland by email at anthony.eiland@gsa.gov or by telephone at (202) 208-0257.

Government contracting developments worth watching

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There are several new developments in the government contracting arena which will have an effect on how you do business with federal, state and local agencies in the future. 

New rules soon will affect woman-owned and small disadvantaged-owned businesses; more transparency is being called for in both monitoring functions and contract award decision-making; a sharper focus is being given to federal contract awards to small businesses;  federal contract spending is predicted to drop; and government acquisitions are “going green.” 

To help you track these developing trends, the Georgia Tech Procurement Assistance Center (GTPAC) presents this quick reference guide:

  • The National Association of Women Business Owners (NAWBO) recently submit comments on the U.S. Small Business Administration (SBA)’s proposed rule for the Women’s Procurement Program on behalf of its members.  You can find NAWBO’s views here, read the Small Business Administration’s summary of the Mar. 2, 2010 proposed rule here, and read the full text of the proposed rules here.  On July 28, 2010, the head of the SBA told the House Small Business Committee that the women’s small business contracting program will start before the end of 2010; details here.
  • There are new rules also being proposed for changes in the U.S. Department of Transportation’s disadvantaged business enterprise (DBE) program; an article containing details can be seen here. 
  • Increased calls for transparency, from both within and outside of government, are getting attention.   Pointing to the absence of a centralized federal database listing instances of contracting misconduct, the Project On Government Oversight (POGO) is now compiling and providing such data on its own.  You can find sortable details here.    In addition, the Sunlight Foundation combines data from the Federal Procurement Data System and the Federal Assistance Award Data System to create a free, searchable database of federal government contracting and spending, which you can access here.  Meanwhile,  the General Services Administration (GSA) and federal acquisition councils are seeking advice from the public on how best to publish contract information; details here.
  • In recent weeks, the volume has been turned up on the federal government’s contract spending with small businesses.  While it’s the government’s policy to award 23% of its contracts to small businesses, numerous reports show that not only has this goal been missed  but that large businesses — misclassified as small businesses — are receiving these set-asides.  A recent news article by the president of the American Small Business League summarizes this problem.  The Government Accountability Office (GAO) documents ineligible firms receiving government contracts designated for service disabled veteran owned small businesses here, and ineligible firms receiving contracts set-aside for small disadvantaged 8(a) firms here.  The White House, meanwhile, recently called for the establishment of a pair of interagency task forces to help federal agencies award more contracts to small businesses; details here.
  • The president’s proposed FY2011 budget includes $36 billion fewer federal contracting dollars.  This is about a 5% cut over the current year ending Sept. 30, 2010.  The new budget reflects a freeze on discretionary spending as well as an “insourcing” initiative, meaning fewer contractors and more government workers.  Read an article about an analysis of the proposed federal contracting budget here.  See details on how insourcing could hurt small businesses here.
  • More and more attention is being given to contractor performance as a factor in contract award decisions.  Click on the hyperlinks here to read articles about the Navy’s proposed “preferred contractor program” and the establishment of the Federal Awardee Performance and Integrity Information System (FAPIIS) which took effect on April 22, 2010.  You also can read about a bi-partisan effort in the Senate that could double the length of time contractors’ performance records remain active in government databases.
  • Energy efficiency and savings, green construction, green technology and smarter acquisition decisions — all continue to be emphasized in current government contracting.  Recent articles about each of these topics  here.

Keep watching www.gtpac.org to see reporting on the latest developments in all aspects of government contracting.

© 2010 Georgia Tech Procurement Assistance Center – All Rights Reserved.

Government contractors must report subcontractor and executive compensation information

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On July 8, 2010, an interim rule was published (75 Fed. Reg. 37414-20) that requires government contractors to report information about their first-tier subcontractors and to report executive compensation for themselves as well as their subcontractors. This information will then be made publicly available at USAspending.gov.

Under the interim rule, contractors are subject to these new reporting requirements:

  1. Information (name, address, etc.) relating to first-tier subcontractors and the amount of each subcontract must be reported. The only exceptions are for classified contracts, contracts to individuals or contracts to those with a gross income of less than $300,000 in the previous year. There are no exceptions for small companies, privately-held companies or companies producing commercial off-the-shelf items.To ease the burden of complying with this requirement, it will be phased in.  Through September 30, 2010, the subcontractor reporting will only be required on newly awarded subcontracts if the prime contract is expected to be worth $20 million or more. From October 1, 2010 through February 28, 2011, reporting will be applicable to newly awarded subcontracts under prime contracts expected to be worth over $550,000. After March 1, 2011, the rule will apply to all non-exempt contracts expected to be over $25,000.The subcontract reporting is to occur by the end of the month following an award, and annually thereafter, by the prime contractors submitting reports to the Federal Funding Accounting and Transparency Act Subaward Reporting System.
     
  2. The names and total compensation (not just limited to salary) from the previous fiscal year of contractors’ and first-tier subcontractors’ top five executives also must be reported. However, this compensation information is required only if the company (prime contractor or first-tier subcontractor): 1) received at least 80 percent of its annual gross revenue from federal contracts, grants and loans; 2) received $25 million from federal awards; and 3) doesn’t already report executives’ compensation publicly (e.g., filed with the SEC).The salary data is to be reported annually as a part of annual updates to the Central Contractor Registration (CCR).

This interim rule is the result of the Federal Funding Accountability and Transparency Act of 2006, co-sponsored by then Senator Barack Obama, which was later amended in 2008. Although some contractors are already required to report this information as a condition of receipt of American Reinvestment and Recovery Act (“ARRA”) funds, the new rule now applies to all federal contracts with the extremely limited exceptions noted above. To enforce these rules, all federal agencies are required to review reports quarterly and use remedies available under the contract to require contractors to comply.

Besides the effort to actually comply with these new reporting requirements, it becomes paramount for prime contractors to flow down provisions to all first-tier subcontractors, including vendor purchase orders, so they can obtain the information needed to satisfy their reporting obligations or to establish any exception to the reporting requirement.

Contractors must report the required information to the Federal Funding Accountability and Transparency Act Sub-award Reporting System (FSRS) at http://www.fsrs.gov/.  The subcontract award data will be posted on the Government’s U.S.A. Spending website. Contractors who fail to comply with the Interim Rule may be subject to contractual remedies, including contract termination.

Annual EEO and VETS forms submitals required of many employers and contractors

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Many private companies and federal contractors and subcontractors are subject to federal reporting requirements involving employment data.  The deadline to file federal EEO-1 and VETS-100/100A forms is September 30, 2010.  Here are the details on the requirements, including who is covered, and what must be done.

What is an EEO-1 Form?

The EEO-1 form is an annual report that categorizes employees based on ethnicity, race and gender, as well as by job category. The EEO-1 form uses data from any pay period in July, August or September of the filing year.

What is the VETS-100 Form?

The VETS-100 and VETS-100A forms are annual reports that track the employment and hiring of former military service members by job category and type of veteran, and use data from any pay period in July or August of the filing year. Additionally, the VETS-100 and VETS-100A forms contain a 12-month summary of information, dating back 12 months from the specific pay period selected.

Why are these forms important?

In addition to the legal requirement that they be completed, the forms are used by government agencies, such as the Office of Federal Contract Compliance Programs (“OFCCP”), to help select compliance evaluation targets and track employment patterns, and are used by plaintiffs in lawsuits. Thus, accuracy and timeliness in completing the forms is critical.

How do I get the employee information to prepare the forms?

The government recommends that employers request that applicants/employees voluntarily self-identify as to their racial/ethnic status. Federal contractors are required to request applicants to self-identify voluntarily concerning their veteran status.

Who must file the EEO-1 report? 

  • All private employers subject to Title VII of the Civil Rights Act of 1964 (as amended) with 100 or more employees, excluding, among others, state governments, Indian tribes and institutions of higher education.
  • Private employers with fewer than 100 employees if, together with related entities, the entire “single” enterprise employs 100 or more employees.
  • All federal government contractors (unless otherwise exempt) who are prime or first-tier subcontractors, with a contract/subcontract of $50,000 or more, and who employ 50 or more employees.
  • Certain financial institutions, regardless of the dollar value of the federal contract.

Who must file the VETS-100/100A reports?

Certain federal government contractors and subcontractors are subject to the VETS-100/100A filing requirements.

  • Federal government contractors and subcontractors with a contract of $25,000 or more, entered into before December 1, 2003 must file the VETS-100. However, if this contract has been modified since December 1, 2003 in the amount of $100,000 or more, the VETS-100A must be filed instead.
  • Federal government contractors and subcontractors with a contract of $100,000 or more, entered into on or after December 1, 2003 must file the VETS-100A. Depending on when the contracts were signed and the amount of the contracts, an employer may need to file both t?he VETS-100 and the VETS-100A.

How Do the Reports Cover Multiple Facilities?

A single-establishment employer must submit one EEO-1 and one VETS-100/100A report. Multi-establishment employers must submit multiple reports, which can be accomplished in a few different ways depending on the number of employees at each separate facility.

Where Do I Obtain More Information?

For more information about EEO-1 reporting, visit the U.S. Equal Employment Opportunity Commission’s website at http://www.eeoc.gov/employers/eeo1survey/faq.cfm.

For more information about VETS-100 reporting, visit the U.S. Dept. of Labor wbsite at http://www.dol.gov/vets/programs/fcp/main.htm.

What do those symbols mean in my bid match “search profile”?

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Clients of the Georgia Tech Procurement Assistance Center (GTPAC) enjoy the benefit of being enrolled in a powerful electronic bid match service.  Each day, this service compares each client’s interests and capabilities against a huge database of government contract opportunities. Every time there’s a match between a client’s line of work and the purchasing needs of a government agency, GTPAC sends an email alerting the client to the potential opportunity.

[Note: If you are not registered with GTPAC, be sure to read http://gtpac.org/about to learn how you can qualify to become a client.]

For those Georgia businesses who are GTPAC clients, you probably know that the bid matches we send you are based on an electronic Search Profile we’ve created for you.  You should periodically examine your Search Profile to ensure that it contains search terms that describe your current business interests.  This review and editing process is known as fine-tuning.  You can request a copy of your Search Profile from your GTPAC Procurement Counselor.  Any changes you wish to make can be submitted to your Procurement Counselor for prompt processing.

When you review your Search Profile, you will notice that there are various symbols used in the coding.  The language and symbols used in your Search Profile are written in what’s known as “Boolean Logic.”  For example, < and > is known as a “proximity symbol.”  These greater than and less than symbols require the proximity of two words. Here’s an explanation of what that means:

If a search line says select fire<2u>hydrant, that coding is designed to look for any bid opportunity containing the words “fire” and “hydrant,” in any order, with no more than two words separating them. If  <3u> appears, then no more than three words could separate the two key words. If the coding line contains no number between the <>, like select fire<>hydrant, then only bids containing the exact phrase “fire hydrant” will be identified.

Here’s an explanation of some other coding:

* – The asterisk is a wildcard which substitutes for any additional number and combination of characters. So, select extinguish* will match on extinguish, extinguished, extinguishers, and extinguishing.

? – The question mark wildcard substitutes for one additional character. So, select hose? will match with hose and hoses.

and – “and” between two search terms requires bid opportunities to contain both terms. Therefore, select fire and hydrant will match on any bid containing the word “fire” and the word “hydrant.”

or – “or” between two search terms requires bid opportunities to include at least one of the terms. Therefore, select hydrant or extinguisher will match on any bid containing one or both of these words.

not – “not” can be combined with the “and” operator to exclude bids that contain a particular word. So, select hydrant and not fire will identify any bid containing the word “hydrant” that does not also contain the word “fire.”

Another thing to keep in mind as you review your Search Profile is that it contains NAICS codes and PSC/FSC codes.  Known as “procurement codes,” NAICS and PSC/FSC codes are the sets of numbers government agencies assign to literally every product and service that they buy.  The words that your Search Profile contains are looked for inside the numerical categories set forth by NAICS and PSC/FSC codes.  For that reason, it pays to periodically update your NAICS and PSC/FSC codes.  You can look-up your codes by clicking on the links below:

NAICS code look-up table

PSC/FSC code look-up table

You don’t need to become an expert in actually putting together your Search Profile — we’ll take care of the special programming for you.  But it’s important for GTPAC clients to understand the basics of how your Search Profile is constructed so that you can review it and make sure — with your Procurement Counselor’s help — that it’s kept up-to-date.

© 2010 Georgia Tech Procurement Assistance Center – All Rights Reserved.

Is your contracting officer busy? This could explain why!

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Wonder why government contracting officials are so hard to get in touch with sometimes? 

Frustrated with leaving phone messages and sending emails to Contracting Officers (referred to as COs; or, on military bases, sometimes known as KOs), only to never have them answered? 

Trying to figure out the most effective way to communicate with a CO?

Every day, businesses trying to do business with the government are confronted with questions like these.  Clients of the Georgia Tech Procurement Assistance Center (GTPAC) tell our counselors they are perplexed and frustrated when a CO takes so long to get back with them … or fails to get back at all.  Understandably, this lack of responsiveness makes businesses wonder whether they have fallen into disfavor with the government or whether they are wrong to even try to communicate with government COs. 

Obviously, there are a lot of possible reasons why someone does not respond to a phone message or an email.  Without engaging in speculation, here are a couple of facts you should take into consideration: 

  • Communication Timing– There are periods of time when communication with a government contracting officer is appropriate, and other times when communication is inappropriate.  Generally, it is appropriate to communicate with a CO during both pre-solicitation and post-award periods.  However, it may be inappropriate to initiate contact with a CO after the comment period on a solicitation has closed or when bid proposals are under evaluation.  Individual solicitation documents usually spell-out the proper communications protocol, so look for guidance there.
  • Workload – The number of federal contracting officers has grown only slightly in the last 14 years, but the annual dollar value of contract awards has grown from about $200 billion to nearly $1 trillion.  To put it another way, ten years ago there was one contracting officer for every $300,000 in federal contracts.  Now, there is one contracting officer for every $50,000,000 in contract awards.  Because contracting  officers are busier than ever, vendors should be especially well-prepared and succinct in their communication efforts. 

Without making any excuses for anyone, you certainly should take these factors into consideration the next time you can’t get a government contacting officer to return a phone call.  Keep your contacts professional and to-the-point, be “appropriately aggressive,” and don’t take non-responsiveness personal.

© 2010 Georgia Tech Procurement Assistance Center – All Rights Reserved.

Government Contracting Made Easier

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Doing business with the government requires a learning curve, but can be rewarding.

You’ve probably seen the pitches on late-night television for books promising you an easy way to win big government contracts.  Maybe you’ve received telemarketing calls, emails or faxes promising you the same thing.  Buy our books, CDs, and subscription services and you’ll be rolling in free government dollars in no time – it’s easy, they say.

We hate to burst your bubble, but that’s not the way it works.  And government contracting is not easy.

Government contracting can be made easier, however, if you commit yourself to learning about it.  You must do market research, follow instructions meticulously, and take advantage of legitimate resources available to your business.    If you are tenacious and pay attention to detail, your business can be successful in transitioning from the commercial sector into the vast government marketplace.

Here are a few of the initial steps you should take to prepare yourself for landing government contracts.  These are “must do’s.”

1. Make sure you obtain a federal tax identification number, often referred to as a TIN or an EIN.  Because so many government databases are public information, it’s a big mistake to operate your business under your Social Security number — doing so will increase your risk of identity theft. 

2. If your business is less than two years old, be sure to take advantage of the business start-up services offered by the network of Small Business Development Centers across the state of Georgia.  Find the office nearest you at www.sbdc.uga.edu.

3. If you’re outside the Atlanta area, you’ll also want to get acquainted with the Georgia Entrepreneur & Small Business Program, a partnership between UGA and Georgia Tech, supported by the One Georgia Authority. You can find details and resources at http://onega.gamep.org.

4. Obtain a DUNS number.  Call 1-866-705-5711 to obtain one free of charge in 5-10 minutes.  Don’t let anybody talk you into paying for a DUNS number.

5. Understand that government agencies buy everything “by the number.” Literally every category of product and service has one or more numbers assigned to it.  And there’s no person more qualified than you to look up the numbers that apply to your business.  You need to look up NAICS codes, Federal Supply and Product Codes, and NIGP codes, the latter used by state and local governments when they purchase.  This can be done on-line; more information on that in just a moment.

6. Figure out whether your business is a small business.  Small businesses often have competitive advantages in government contracting, but you can’t just guess whether you meet the standards – you have to know for sure.  There’s a process for doing this, just as there is a process for determining whether your business falls into any socio-economic categories for which there may be government purchasing preferences.

7. Register in the granddaddy of all vendor databases – Central Contractor Registration.  Over 600,000 firms are registered there already, and if you want to be found by government contracting officials, you need to be there, too.  It’s free, and can be a great marketing tool … if you register correctly.  A large percentage of the business listings in CCR contain mistakes or are incomplete.  You don’t want to be one of them.  Government contracting officials are interested in doing business with companies that pay attention to detail.

8. Register in other government databases where you want to market your business.  The city and county where your business is located are great places to start, and don’t forget about registering as a vendor with the State of Georgia.   Once registered properly, many units of government actually will send you emails every time they are getting ready to buy something that you sell – but, remember, you’ll receive accurate emails only if you’ve looked up your codes correctly (remember step 5?).

9. Get help along the way.  There’s an award-winning, no-cost service available to you as a Georgia business.  It’s the Georgia Tech Procurement Assistance Center (GTPAC), and it’s operated by Georgia Tech’s Enterprise Innovation Institute.  GTPAC has offices in nine cities across the state, and at each location classes are taught on every aspect of government contracting.  In addition, Procurement Counselors are available at each GTPAC location.  They have decades of government contracting experience and, once you are signed-up as a client, they will provide you with one-on-one instruction. 

In calendar year 2009, GTPAC’s clients won almost $700 million in government contracts.  But none of these successful contractors will tell you it was easy.  They likely will tell you, though, that it was made easier with GTPAC’s help.

Want to take advantage of GTPAC’s services?  Click on the TRAINING tab at the top of this page and register for the “Introduction to Government Contracting” class in a location convenient to you. You’ll learn all about the steps outlined in this article … and much, much more!

© 2010 Georgia Tech Procurement Assistance Center – All Rights Reserved.

What’s an “elevator speech”? And why you need one!

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It takes planning to make a good first impression.  And first impressions are usually made on the basis of just a few words.

Sometimes, a few words are all you have a chance to say to a decision-maker — a government contracting official or a representative of a prime contractor, for instance.

Companies who work with the Georgia Tech Procurement Assistance Center (GTPAC) tell us that decision-makers always seem to be in a hurry and want vendors to get right to the point.  Similarly, government contracting people tell GTPAC that they are weary of dealing with ill-prepared vendors who just can’t seem to succinctly state what it is they’re an expert at doing.

These circumstances constitute a few of the reasons why vendors who want to make a good first impression with the contracting officials need to have what’s called an “elevator speech.”

Simply put, an elevator speech is what you are prepared to say, in 30 seconds or less, to describe your expertise.

The term “elevator speech” comes from a situation such as realizing you’re in an elevator with someone you’d like to impress … but you’ve got only a few floors to say anything before they get off the elevator.

What if you suddenly found yourself on an elevator with a contracting officer, an elected official, a prime contractor, or some other a potential customer?  Are you ready to quickly and professionally describe the solutions you represent and the expertise you can deliver?

Here’s an outline of what a good elevator speech should address:

  1. Who and what you are
  2. What you specialize in
  3. What you do
  4. Why you’re the best at what you do
  5. What you want (a call to action)

Write a paragraph that addresses each of these five elements.  Make it to-the-point and conversational in tone.  Practice saying it in front of a mirror or to a colleague until you can say it smoothly, from memory, in 30 seconds or less.  Once you have this mastered, you’ll have an elevator speech that you’re prepared to deliver — whenever you may need it.

Contact your GTPAC Procurement Counselor for further assistance in formulating your elevator speech.

© 2010, 2011, 2012, 2013 and 2014 –  Georgia Tech Procurement Assistance Center – All Rights Reserved.

Hurry up and register in CCR? Stop!

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You may have heard that it is essential to register your business in CCR — Central Contractor Registration — if you want to pursue a government contract.  That’s true.

But registering in CCR with incorrect or incomplete information can be worse than not registering at all.  That’s why it is very important to “get ready” for CCR registration by thoroughly preparing yourself.

The Georgia Tech Procurement Assistance Center (GTPAC) provides advice to Georgia businesses practically every day on the subject of proper CCR registration.  In the course of providing this assistance, our Procurement Counselors review many existing registrations.   Based on our reviews, GTPAC estimates than as many as 20 percent of the  600,000 firms presently registered in CCR have mistakes in their records.  The mistakes range from misspelled words to empty data fields, to incomplete entries, to selection of incorrect procurement codes, and more.  As a result, these vendors miss-out on government contract opportunities because they are screened-out for not exhibiting attention-to-detail or — because of incomplete data — they cannot be found in the first place.

CCR is the federal government’s primary source for identifying potential vendors.  Every federal agency, both civilian and miltary, utilize the CCR database.  Many federal contract officers initially determine whether a contract should be set-aside exclusively for 8(a), HUBZone, or service-disabled small businesses based on firms identifying themselves with these designations in CCR.  Prime contractors also use CCR to identify potential subcontractors and suppliers, with emphasis on the various small business socio-economic categories.  Even state and local governments consult CCR to find potential vendors who are interested in the government marketplace.  Businesses and non-profits must be registered in CCR in order to receive federal payments and disbursements against contracts and grants.

Are you beginning to see CCR as a tool to market yourself and not just as a task to quickly get out of the way?

There are several steps you should take before trying to register in CCR.  Among these steps are:

  1. Obtaining a TIN/EIN for your business from the IRS.  (Even if your business is a sole proprietorship, it’s important — because of identity-theft considerations —  that you do not operate your business using your Social Security number.)
  2. Obtaining a DUNS number for your business.  (Don’t pay anyone for this; a DUNS number can be obtained through a 10-minute phone call.)
  3. Researching and identifying the PSC/FSC and NAICS codes most appropriate to your business.  (Every product and service is classified by these federal numbering systems, and it’s essential that you identify the codes that are applicable to your business.)
  4. Determining whether your business meets the SBA’s small business size standard.   (Virtually every federal contract valued at less than $100,000 is awarded to small businesses, so you need to know if you qualify.)
  5. Writing a brief capabilities statement.  (You must have a grammatically-correct, short description of what your company does.)
  6. Identifying “key words” associated with the nature of your business.  (These words should be crafted from a government buyer’s perspective; in other words, think about what the government might “call” what it is you do or sell.)
  7. Making a list of business references.  (Be prepared to provide company name, contact person, dollar value, and date range of work.)

These are not all of the preparatory steps, but they are the most important ones.

If you have questions or need help with any aspect of CCR, please consider taking advantage of GTPAC’s services in a comprehensive way.  GTPAC provides assistance to help Georgia firms get ready as well as find and pursue contracting opportunities in federal, state, and local government markets.  This assistance is provided at no charge.  Complete details on how to access GTPAC’s services can be found on our ABOUT US page.

Oh, and one more thing … CCR is scheduled to disappear in late July 2012.  It will be replaced by SAM — System for Award Management.  Stay in touch with GTPAC, and we’ll keep you updated on how this transition takes place and what you need to do.

© 2010 Georgia Tech Procurement Assistance Center – All Rights Reserved.

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