Business Development

Home » Business » Business Development

Under the Radar Contracts

in Business Development by Aisha H.

According to Federal Procurement Data Systems (FPDS) from April 1, 2017 to April 1, 2018, 4,245,488 contracts were executed for $432,910,499,036.17. Only 81,783 solicitations hit FBO – that is 1.9% of all actions and GSA at around $30B represents 7.1% – Where are the rest?

Yes, many contract actions are part of IDIQs and BPAs (which only contract holders can see) but that isn’t all…

Did you know…

  • Most federal contracts (around 80%) have less than 5 competitors?
  • Federal buyers have ways to “choose” the company “they” want?
  • The RFP process is intentionally exclusionary?
  • Incumbents get preferential treatment?
  • Most RFP’s have your competitor’s language “baked” in?


The fact is
:

Federal decision-makers already have resources that are selling them the same products or services that you want to sell them.  Just because you show up doesn’t mean that you should win. Just because you’re an 8(a) Woman owned HUBZone certified service disabled veteran that shows up on their doorstep… Doesn’t mean you’re going to be let into the inner circle of short-listed, preferred vendors.

Your 2018 federal strategy needs to revolve around answering why they should let you in. And it can’t be your set-aside status – there are THOUSANDS of companies just like you.

Marketing that Wins Federal Contracts

in Business, Business Development, Federal Contracting, Reaching Your Buyers by David Lowe

Marketing that Wins Federal Contracts
BuildExpo Los Angeles

The federal government spends over $500 billion per year and is spending that money with your competition. Do you think you can compete? If you expect to win federal contracts, you’re going to need to differentiate yourself from your competition, market to key decision-makers and get them to stop buying from your competition and start buying from you. Dave Lowe, CEO of isiFederal, provided three presentations for the build expo at the Los Angeles Convention Center March 14 – 15 2018.

Wednesday 11AM – Marketing that Wins Federal Contracts

BuildExpo – Marketing that Wins Federal Contracts – Presentation
BuildExpo – Marketing that Wins Federal Contracts – Worksheet
isiFederal Capabilities 2018

Other Build Expo Presentations

Wednesday 9AM – Doing Business with FEMA (Federal Emergency Management Agency)
Thursday 9AM – Winning Federal Contracts

Other isiFederal Presentations

https://www.youtube.com/user/isiFederal

For additional information please contact Dave Lowe at 888-943-8474.

Doing Business with FEMA – Emergency & Disaster Recovery

in Agency Focus, Business, Business Development, Federal Contracting, Managing Your Proposal, Reaching Your Buyers by David Lowe

Doing Business with FEMA (Federal Emergency Management Agency)
BuildExpo Los Angeles

Due to natural disasters, over $80 billion has been added to the fiscal year 2018 and 2019 federal budget. Registering and marketing to FEMA is essential to establishing your company as a FEMA resource. Dave Lowe, CEO of isiFederal, provided three presentations for the build expo at the Los Angeles Convention Center March 14 – 15 2018.

Wednesday 9AM – Doing Business With FEMA

BuildExpo – Doing Business with FEMA – Presentation
BuildExpo – Doing Business with FEMA – Worksheet
isiFederal Capabilities 2018

Reference Docs

INDUSTRY LIASION PROGRAM VENDOR PROFILE – vendor_profile_form_
DoingBusinessAfterDisaster
FY2017 Budget Brief
March2018DisasterReliefFundReport
GSA eLibrary Schedule Summary

FEMA Recovery Services

March2018DisasterReliefFundReport
RSF_NaturalandCultural_0623_508
RSF_Infrastructure_Systems_0623_508
RSF_Housing_0623_508
RSF_HealthandSocialServices_0623_508
RSF_CPCB_41416

Other Build Expo Presentations

Wednesday 11AM – Marketing that Wins Federal Contracts
Thursday 9AM – Winning Federal Contracts

Other isiFederal Presentations

https://www.youtube.com/user/isiFederal

For additional information please contact Dave Lowe at 888-943-8474.

Chinese-made Products and GSA

in Business Development, Federal Contracting, Getting (and Keeping) GSA Schedules by Aisha H.

Trade with ChinaGo to any Walmart, Costco, Best Buy or any major retail seller and you are going to find products made in China. Low manufacturing and labor costs: it’s simply cheaper to have goods produced there and then shipped all over the world. Many companies have gone to China as the best way to maintain their profitability, or in some cases even just survive against their competitors.

I spoke with a business owner providing finished steel products and who did the transition to China a few years ago. He said he didn’t want to shutdown his U.S. factory but he had to because of labor costs to keep his company in business. He said despite the costs of loading huge heavy steel cargo onto oceangoing ships and shipping it all the way USA, it was still far cheaper than running his factory in the States and it was what he had to do.

So it’s the way of the modern world market to use China as a major supply source.

How does this affect companies who want to sell their products made in China in to the federal government through GSA’s acquisition path?

Here’s the scoop: China is not a TAA compliant country so if you make a finished product that comes from China, like a flashlight or a hand tool, and want to sell it to the government through GSA…you can’t do that. Another thing you can’t do is take a finished product made in China, ship it to USA, put it in a new package or box of some sort, and sell it to the government. GSA simply doesn’t allow that.

So what’s the work around to get past this trip wire?

There are two solutions:

1You can take a series of parts made in China that on their own are not the final product, assemble those parts here in the United States or in a TAA compliant country and then the magic happens: Substantial Transformation.

Substantial transformation is the key to be able to sell China made products to the federal government through GSA and be completely compliant. A good example of this is Dell Computers. They take a series of parts that don’t function on their own and assemble those parts in the U.S. into a finished, working computer. At that point the computer they have created is classified as a US-made end product and can be sold to the federal government through GSA with no problem.

Dell_wiki

Dell: Manufactured in China, Made in USA

There are many other examples of substantial transformation and those companies enjoy sales through GSA while maintaining good margin and still be in compliance. To get those products on your GSA Schedule, we still have to prove the elements of substantial transformation to the Procurement Officer (PCO) at GSA.  That is usually pretty easy to do as long as substantial transformation is really happening. The companies we have had trouble with are the ones who want to take a finished product, put it in a new box, slap on instructions or warnings about use, and try to call that substantial transformation.

Many companies have slightly shifted “how” they build their products to be able to get them on their GSA Schedules. For example, still want to sell those flashlights I mentioned earlier? Have the core components made in China but shipped to the U.S. for assembly and packaging, and in doing so you can achieve a genuinely substantial transformation: from batteries, diodes and what have you into a real, working, light-emitting device. Getting a little creative and adjusting your production methods can be a good way to get your products that started in China onto your GSA Schedule and be sold in compliance with good profit margins.

2Or, you can have lower production and assembly costs and still be able to sell your products on GSA buy looking to and embracing Taiwan. In August of 2009 Taiwan became TAA compliant. That was huge news in the industry and, as opposed to China, many companies prefer to have their products made and assembled in Taiwan. Taiwan has similar costs for production and assembly labor like China–but TAA compliance means the need to prove substantial transformation doesn’t exist and Taiwan made products can be easily sold on GSA.

Taiwan becoming TAA compliant has been a huge plus in lower cost manufacturing and a great alternate path rather than use China.

Which other countries are TAA compliant?

To check out that list, head to this page and click the TAA button to see a world map of who else you can work with for lower manufacturing and assembly costs.

facebook like buttonYouTube Icontwitter follow buttonVisit Our Blog