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Summer
2008
Vol 4, Issue 3 |
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As we begin the Summer, the opportunities for government contracts from every sector are plentiful. I receive “special notices” each morning and the list seems to be getting longer. I did receive a very special notice this week addressing the need for demolition, refurbishment and new construction when the flood waters out west recede. As with every act of nature, there is much to be done following such a disaster. If you think that you would be interested in going to these ravaged areas, please contact your PTAC counselor for guidance. DON’T pack up and head West before speaking to your counselor. There are certain policies that need to be followed. With the help of two PTAC counselors, I have completed and submitted our proposal for funding for next year. As directed by our Program Office in DoD, we will be required to submit awards data quarterly. In the past, you have received two contract awards surveys per year. Now, it will be four and, again, your successes will be very important to us. I know that this will be a slight nuisance, but please assist us with these surveys. I hope everyone has a relaxing and rewarding summer. Tom Elam |
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New Size Standards for Small Businesses
The Small Business Administration (SBA) is performing a comprehensive review of its size standards for small businesses. Current size standards include the 2007 modifications to the North American Industry Classification System (NAICS) codes. What defines a Small Business? Read more...
Are you Compliant with the Trade Agreements Act?
You may remember in 2006 when GSA auditors discovered that OfficeMax, Staples, and Office Depot listed products that were manufactured in prohibited countries on their GSA contract. The net result was a fine of $22 million for all three vendors. When contracting with the Federal Government you must ensure your products are compliant with the Trade Agreements Act (TAA). GSA has appointed Industrial Operations Analysts (IOAs) to stop these TAA violations even for small business vendors.
So how would you respond to an auditor if asked these questions: Do you know where your products are manufactured? Are any of your products composed of pieces from different countries? Do your products have parts made in non-compliant countries that are assembled in a compliant country?
The answers will be based on where the product was “substantially transformed into a new and different article of commerce with a name, a character or a use different from that of the article or articles from which it was transformed.” Read on to learn more...
Buy American Act (BAA) and Berry Amendment – Don’t Get Confused
Two issues you have to deal with when doing business with the Department of Defense (DoD) are “Buy American Act” and “Berry Amendment”.
The Buy American Act (BAA) and Berry Amendment are often confused, and the terms are sometimes used interchangeably. The BAA, enacted in 1933 is the principal domestic preference statute governing most procurement by the federal government, while the Berry Amendment, enacted on the eve of World War II, governs DoD procurement only. The BAA seeks to protect domestic labor by giving preference to domestically produced, manufactured, or home-grown products in government purchases, with certain exceptions. The Berry Amendment overrides many of these exceptions, primarily for food, clothing and specialty metals.
The two major differences between the BAA and Berry Amendment are: (1) The BAA applies only to federal government contracts to be carried out within the U.S., while the Berry Amendment, which is for defense contracts only, is not limited to contracts within the United States; and (2) The BAA requires that “Substantially all” of the costs of foreign components not exceed 50% of the cost of all components (thus, an item can be of 51% domestic content and still be in compliance with the BAA) while the Berry Amendment requires that items be 100% domestic in origin.
For additional information reference CRS Report for Congress, “The Berry Amendment: Requiring Defense Procurement to Come from Domestic Sources” updated January 31, 2008 by Valerie Bailey Grasso, Specialists in Defense Acquisition Policy Foreign Affairs, Defense, and Trade Division.
Success Story: Gladiator, Inc.
Gladiator, Inc. is a woman-owned small business located in Kenly with 85 employees, and is one of the last remaining domestic producers of textile goods in the country. Their specialty is Personal Protective Equipment (PPE), but they also produce Battle Vests, Ballistic Vests, M-16 Parachute Cases, and Bomb Blankets. Gladiator was incorporated in February 2007 and purchased assets from Federal Covers & Textiles, Inc. in March 2007.
The owners, Kathryn and Joseph Tomlinson, contacted the local PTAC counselor for assistance with preparation of their first proposals. The contract required specific information for which they felt they needed assistance to ensure the application was completed correctly. While they had received contracts in the past, this would be their first real “proposal” that they had to prepare. Learn more...
Success Story: U.S. ISS Agency, LLC
Mr. Nathan Brooks, General Counsel/Chief Privacy Officer for U.S. ISS Agency, LLC contacted the local PTAC counselor looking for guidance on how to do business with local, state, and federal governments. The PTAC counselor met with Nathan and educated him on the basics of doing business with the federal government, including discussions about the North American Industrial Classification System (NAICS), Central Contractor Registration (CCR) and Federal Business Opportunities. The PTAC counselor also spent time with Mr. Brooks explaining the General Services Administration (GSA) process, including review of the specific schedules and the Special Item Numbers (SINs). In addition, the PTAC counselor showed Nathan how to review sales figures of businesses already on schedule.
Mr. Brooks jumped at the GSA opportunity, and worked through the process of getting on schedule with the assistance of the local PTAC counselor. Within six months of getting on schedule, U.S. ISS Agency, LLC was awarded a contract from the Federal Air Marshal Service. Nathan said, “For a small business like ours, this is a huge contract that will not only help our bottom line, but also open many more doors for us in the future.” Nathan went on to say what a great service the PTAC provided, and he recommends that any business contact their local PTAC counselor.
For additional information about U.S. ISS Agency, LLC please visit the company’s Web site at www.isecureus.com.
Success Story: Auroros
“The dedication and prioritization needed to run a small business is exactly what the military teaches you,” states Kathleen Volandt, President/CEO of Auroros Inc., a Raleigh, NC based staffing and recruiting company. In celebrating Auroros Inc’s fifth anniversary this year, Volandt, a U.S. Army veteran, calls her military experience a crucial element to being a successful business owner. Auroros Inc. is a service-disabled veteran and woman-owned small business providing personnel services such as recruiting and on-site staffing. Specialties include finding highly skilled personnel with government experience, highly technical personnel, and senior subject matter experts. Placement rates are highly competitive at a 40% reduction in rates compared to other staffing agencies.
Since it’s inception in 2003, Auroros has stayed the course in business by using the right resources and outsourcing its weaknesses. Volandt began a relationship with her local SBTDC counselors -- the Procurement Technical Assistance Counselor (PTAC) and General Business Counselor who provided a wealth of guidance for Auroros to focus on federal clients, and to enroll in the NxLevel Business Plan Course. “That made a huge difference in our strategic thinking and business planning.” Volandt said, “and I still recommend the NxLevel course to new small business owners.” Read on...
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