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Doing Business with Governments in the U.S.A.

Doing Business with Governments in the U.S.A. Presented by Keith K. Glatz, CPPO Purchasing & Contracts Manager City of Tamarac, Florida. WHY Do Business with the Government?. Nearly 1/3 of U.S. Gross National Product purchased by government agencies Government needs are fairly constant

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Doing Business with Governments in the U.S.A.

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  1. Doing Business with Governments in the U.S.A. Presented by Keith K. Glatz, CPPO Purchasing & Contracts Manager City of Tamarac, Florida

  2. WHY Do Business with the Government? • Nearly 1/3 of U.S. Gross National Product purchased by government agencies • Government needs are fairly constant • Government doesn’t play favorites – it’s a LEVEL PLAYING FIELD • Government pays its BILLS!!!

  3. Through Bids and Requests for Proposal Through Small Purchase Quotations Through Procurement Cards Handled exclusively by Purchasing Delegated Individuals (Administered by Purchasing) How Does Government Buy?

  4. Construction – Roads, Infrastructure, Buildings, etc. Professional Services Engineers, Architects, Consultants Vehicles & Heavy Equipment Trucks, Autos Computers & Office Equipment Supplies Office Supplies, Food, Chemicals, etc. Utilities Items Maintenance Supplies Parts and Tools Services – all types Safety Equipment & Supplies . . . And Much More! What Do We Buy?

  5. Who is the Government in the United States? • Federal Government – U.S. Government • General Services Administration (GSA) • Primary Procurement Agency for non-Defense purchases • Department of Defense (DOD) • Other agencies

  6. State and Local Government • State Governments • 50 States • Local Governments • Counties • Cities, Towns & Villages • Special Districts • Educational Entities • Colleges & Universities • School Districts

  7. The Basic Requirements • Have a Product or a Service that We need! • Most documents will be in English! • Register if required • Find Opportunities

  8. Registration – Federal • Must be registered through the Central Contract Registration System https://www.ccr.gov/ • Must have a “Duns Number” assigned by Dun & Bradstreet http://fedgov.dnb.com/webform or call (866) 705-5711 • Must fill-out Online Representations & Certifications Application (ORCA) https://orca.bpn.gov • May be required to undergo a U.S. Department of Homeland Security Fingerprint Security Check & Personnel Security Investigation • All Details at http://www.gsa.gov/portal/content/104121

  9. Registration – State & Local • Each agency has its own requirements • May have to visit web-site, or contact agency by telephone • State of Florida: http://www.dms.myflorida.com/business_operations/state_purchasing/doing_business_with_the_state_of_florida • Miami-Dade County: http://www.miamidade.gov/procurement/ • City of Miami: http://www.miamigov.com/Procurement/pages/SupplierCorner/DoingBusiness/default.asp • Some web-sites allow you to register on-line. Some may require paper registration by fax or mail.

  10. Where Do I find Opportunities? • Federal Contracts • General Services Administration (GSA) • Department of Defense (DOD) • FedBizOpps.gov (https://www.fbo.gov/) • Opportunities over $25,000 (U.S. Dollars)

  11. State & Local Opportunities • State & Local Contracts • State and Local Web-sites • State of Florida: http://www.dms.myflorida.com/business_operations/state_purchasing/doing_business_with_the_state_of_florida • Miami-Dade County: http://www.miamidade.gov/procurement/ • City of Miami: http://www.miamigov.com/Procurement/pages/SupplierCorner/DoingBusiness/default.asp

  12. Subscription Services • Private Subscription Services • Onvia/Demandstar.com http://www.demandstar.com/ • Bidnet.com http://www.bidnet.com/ • These services do not represent every state and local government agency.

  13. Construction • Construction “Plan Room” Subscription Services – provides construction plans & bids • Datafax.net http://www.constructionjournal.com/ • McGraw Hill.com (Dodge Report) http://www.construction.com/ • ISqFt.com http://www.isqft.com/new/ • The Construction Journal http://www.constructionjournal.com/ • Reed Construction http://www.reedconstructiondata.com/

  14. Things I’ll Need Insurance – If you plan to do work on our property, you will be required to have appropriate insurance coverage before you can do business with the Agency.

  15. Typical Insurance Limits(May vary by agency and project) • General Liability -- $2,000,000 • Auto Liability -- $1,000,000 • Workers Comp. -- Statutory • Professional Liability -- $1,000,000 (used for consulting and professional services) • Agency must normally be named on Insurance Certificate as “Certificate Holder” and an “Additional Insured”

  16. Bonds & Licenses • If you are performing construction work, you will be REQUIRED to obtain a Performance and Payment Bond • As an example: Bonds required for all projects over $200,000 in Florida • Construction contractors must be properly licensed as a contractor by the locale

  17. Understanding the Marketplace • Competitive requirements – Know the bid threshold for each agency you deal with $10,000 - $100,000 typical formal bid threshold • Purchases above the threshold must be formally advertised and require governing body approval • Most have thresholds for informal quotations • Procurement card purchases usually established with single purchase limit

  18. Things to Remember When Working With Procurement Cards • Shipping charges, if applicable, MUST be included in any pricing quoted • Be sure to provide receipts to the user immediately. • If agency is ordering via Internet, e-mail receipt immediately upon confirmation of order.

  19. Marketplace Issues • Competitive sealed bids are awarded to the lowest priced bid, meeting our requirements. • Requests for Proposal are awarded to firms who best meet the requirements of the proposal’s written criteria. Usually the “Highest Score” • Departments may have some discretion on small purchases under the entity’s formal bid threshold, but may have to provide back-up to validate that competition was sought.

  20. Small Orders • Majority of items ordered by Purchase Order • Department required to supply back-up, such as quotation, insurance certificate, etc., so please provide this information to the department. • Normally, small orders are your BEST opportunity • You need to establish relationships with individual agencies to know when we have small orders

  21. What We Expect • Your BEST pricing at the outset! (You must be competitive to earn our business) • A Quality Product or Service • Accountability -- Fair and Honest Dealings -- We subscribe to a stringent code of ethics. • Transparency – All business conducted under public scrutiny.

  22. What We Expect – Continued • Product in stock • Timely Delivery • No issues with imports • Everything is easy to understand • No problems with the “paperwork” • “Service after the sale”

  23. Bids Vs. Proposals • Bid • Used when clear specifications are available. • Usually adequate competition exists in the market. • The main goal is the lowest price. • Bidders must be responsive & responsible!! • Responsive – follows the directions on the bid. • Responsible – capable of performing the work.

  24. Bids Vs. Proposals • Proposal • Used when the buyer is looking for the best approach to an issue. • Buyer usually has a goal, and wants to explore the best possible solution. • Criteria OTHER than price may be considered, such as past experience and qualifications of personnel, how well the work plan achieves the goal, creativity, and schedule. • Criteria may be weighted, and is evaluated by a team.

  25. Preparing A Bid – Fundamental Requirements • Read the Bid/Proposal Instructions • Check to see what YOU need to provide with your response • Check for certifications, affidavits, and pages that need to be signed • Be sure the PROPER person, authorized to sign bids, has signed the document. • Proofread, proofread, proofread! • Read the Bid / Proposal Instructions AGAIN!! • Calculate and Submit prices in U.S. Dollars

  26. When Preparing Bids • Fill-out the Bid Form • Read the Instructions! Fill-out EVERYTHING on the bid document • Fill-out pricing, certifications, requests for Information about your firm or your product • PRICING MUST BE IN U.S. DOLLARS!!! • Check and re-check the unit prices. • Extend the unit prices based on quantities. • Add-up your group totals and check the math!!!

  27. Preparing Bids - Continued • Fill-out the manufacturer name/model numbers. • Provide delivery time • Specification cut-sheets – be sure that you include specification sheets, or something that verifies your product’s characteristics and capabilities

  28. Items to Be Included • If we ASK for proof of insurance, WE MEAN IT! Include your proof of insurance when requested • Bid or Proposal Bond – If we ask for a bid or proposal bond, include it WITH the bid. (Performance and Payments Bonds will not normally be requested until the award stage.) • Cashier’s Check – If Cashier’s Check is requested in place of a Bid Bond, include a cashier’s check WITH your bid, not a company check – a company check will deem your proposal non-responsive. • References – We need to see your references, and may even ask for a complete client list.

  29. Additional Items to Submit with Proposals • Your WORK PLAN, address OUR situation! • Provide RESUMES of the personnel who will be WORKING ON OUR PROJECT if you win the proposal. • Break down the HOURS you plan to devote to our project, and a breakdown of who will be working during those hours. (We want to see how your organize your work.)

  30. Proposals – Continued • Provide your SCHEDULE, including significant project MILESTONES and your anticipated COMPLETION TIME. • Let us know the PROJECT ROLES of your staff, and provide us with your PROJECT LEADER. • We’ll expect to see your project leader at the presentation, along with other decision makers on the project.)

  31. Submitting Your Bid • For Mailed/Delivered Bids • Clearly identify that the container contains a response. Identify the bid/proposal number, the title, and the due date and time. • Make sure your solicitation is delivered to the address indicated in the bid ON TIME! Most entities do NOT accept late bids. • Expect the unexpected! Even overnight couriers cannot perform miracles. YOU need to be sure that you have plenty of time for shipping bids. If you deliver them, be sure to account for traffic and weather hazards in advance. There is NO excuse for a late bid or proposal.

  32. Questions Or Comments?

  33. THANK YOU!!

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