The purpose of a sources sought notification is to determine if a small business can perform required contract work, while a Request for Information’s (“RFI”) purpose is to collect written information about the capabilities of various suppliers. Where a sources sought notification may seek to learn more about performance ability relative to a defined future requirement, an RFI seeks to obtain more specifics including commercial practices and pricing,
In this episode of FedBiz’5 we host Senior Contracting Specialist and former Federal Government Contracting Official, Frank Krebs, to discuss if your business should respond to a sources sought notification or RFI request.
What’s the difference between a Sources Sought Notification and RFI?
According to the Federal Acquisition Regulations (“FAR”), a sources sought notification is a government market research tool to determine if there are two or more capable businesses or small businesses that can perform the requirements of a planned contract.
Typically, when using a sources sought notification a federal agency has clear requirements and is attempting to make a determination if they should set aside the contract for small businesses or even further define it to a socio-economic category of small business, such as woman-owned or service disabled veteran-owned small business.
So, an agency trying to determine if a small business can handle a project of a defined size and scope would use a sources sought notification, especially if they want to use a set aside contract for a socio-economic category. Based on the response, the sources sought response can provide some level of assurance that small businesses can complete the project or contract.
Using an RFI, the agency is seeking assistance from the business community on defining the specific requirements of a contract. This typically involves the agency stating their needs and wanting to hear from industry vendors how they would propose achieving the end result. This information is then used to define the specific requirements for the statement of work or the performance work statement when the RFP is released.
Very often agencies confuse these two requests (sources sought and RFI) or combine parts of both into one request. So whether it is a sources sought or an RFI, it’s important to be prepared to review it thoroughly and respond accordingly.
Should a small business respond to either of these government requests?
The simple answer to that question is - YES… as long as it falls within your primary area of expertise.
The most important principle is to make sure the request falls within your primary or secondary core competency. Government contracting is a competitive environment. So while you may have several areas of expertise in your field, it’s crucial to stay focused. You can easily become distracted by trying to go after every request that may or may not fit your business.
Those requests that do not fall within your core competencies, do not waste your time as you will be fighting an uphill battle against companies that are more closely aligned with the requests. The only caveat may be when the request is from one of your primary targeted agencies.
The importance of staying focused is to save you time and resources. You want to be competitive and prepare a quality response.
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FedBiz'5 Podcast | Episode 42
Should My Small Business Respond to a Sources Sought or RFI?]
Jesse Sherr 00:02
My name is Jesse and I work with small businesses in the Government Marketplace. You’re listening to FedBiz'5, where you get informed, get connected, and get results on everything government contracting.
Jesse Sherr 00:16
Hello, and welcome to another episode of FedBiz'5! Today's topic, Should My Small Business Respond to a Sources Sought or RFI?
Jesse Sherr 00:26
Senior Contract Specialist Frank is on. Welcome Frank!
Frank Krebs 00:29
Well, thanks, Jesse. It's good to be back with you and our listeners.
Jesse Sherr 00:33
Absolutely! To begin on whether a small business should respond, would you explain the difference between a Sources Sought and an RFI?
Frank Krebs 00:42
Technically, according to the Federal Acquisition Regulations, a Sources Sought from a federal agency is where that agency has clear requirements. What they are attempting to do is determine if they should set-aside the contract for small businesses or further define it to a socio-economic category of small businesses such as, Woman-Owned, or Service-Disabled Veteran-Owned business. They are trying to determine if small businesses can manage a project of this defined size and scope.
Frank Krebs 01:09
Typically, they want to use a set-aside but want assurances from the industry during this process that small businesses can complete the project or contract. Whereas a Request for Information or RFI is where the government is seeking assistance from the business community on defining the specific requirements. These typically involve the government stating their need and wanting to hear from the industry on how the vendors would propose achieving the end-result.
Frank Krebs 01:45
This data is used to define the specific requirements for the Statement of Work or the Performance Work Statement when they release their RFP. Now, Jesse, in reality, the government very often either confuses these two items, or combine parts of both into one request. In my mind, whether it is a Sources Sought or a Request for Information (RFI), they are interchangeable and should be addressed the same.
Jesse Sherr 02:12
Okay, good to know! Should a small business respond to either of these government requests?
Frank Krebs 02:18
Well, the simple answer to that question is yes. However, I'm going to preface that answer to a degree and give you reasons why in most cases, the answer is yes.
Frank Krebs 02:29
First, you always want to respond if the RFI or Sources Sought falls within your primary or secondary core competency. Now, we all have more than one core competency, and many firms have anywhere from 6 - 12. However, we all have a primary competency and a competency that is a close second. So, if the request does not fall within one of these two competencies, you really do not want to waste your time as you will be fighting an uphill battle against companies that are more closely aligned with the requests. The only caveat is when the request is from your one primary targeted agency.
Frank Krebs 03:10
You may recall in an earlier podcast; I informed small businesses to focus on one but never more than two targeted agencies that you are a good fit and that you want to work in. Well, if there is an opportunity in one of your targeted agencies prepare a reply, if that work is in an area that you can perform. If it is not in one of your targeted agencies, make sure the work is in one of your top two core competencies. The primary reason that I say in one of your top two is that to prepare a quality response you need time, and one way you can save time is to reuse sections from prior responses.
Frank Krebs 03:53
For those in your primary competencies, this should equate to 75% or more of this response since the response should focus primarily on your performance in that competency. Why write a response from scratch whenever you have a prior response that you can pull sections from to make it easier and quicker to respond? In fact, I recommend developing a set of standard paragraphs around your primary competencies as these can be used over and over in responses. Not just the RFIs and Sources Sought but the actual RFPs and when reaching out to new prospective clients, whether government or commercial. So, before I get into the reasons why you want to respond, I want to be clear, only respond to those requests in your top one or two competencies or a request from a targeted agency.
Jesse Sherr 04:49
That makes sense! As a small business MUST watch their resources... getting spread too thin on potential opportunities will likely dilute performance on other contracts. All right, so, provided it is in your primary competencies, what are the reasons to respond?
Frank Krebs 05:06
First off, responding helps you get noticed and build relationships. If you are relatively new to government contracting, responding helps you by introducing your company to government buyers and program officials who need your services or products, and it helps to foster relationships.
Frank Krebs 05:26
Second, it helps the government decide upon set-asides and if you write an impressive response, you could potentially be awarded a sole source contract. At a minimum, you are hoping to structure the Final Statement of Work and reduce competition for the award by limiting the bidders through a set-aside.
Frank Krebs 05:45
Third, this is your opportunity to market your firm directly to an interested customer. As a result, you will demonstrate that you are a Subject Matter Expert or SME to that agency and someone that they can reach out to for further advice or discussion. Remember, you are not just a small business you are and should strive to be a Trusted Adviser.
Frank Krebs 06:10
Fourth, any accompanying draft requirements can provide you with early insight into the government's needs and can help you to understand the full picture of what the agency is looking for, providing you with valuable insight to plan accordingly.
Frank Krebs 06:24
Finally, write your responses as though it is a competition and one that you want to win! By this, I mean, treat your response as a Sales Document, it is your opportunity to sell yourself, while providing information to the government. Stress in your reply (whether directly asked by the government or not), any social-economic category that you qualify for. Demonstrate that you are a subject matter expert by focusing on your primary competencies, and remember, this is not an RFP, so don't worry or even respond to anything you may not be particularly good at, as you do not have to respond during this process to everything listed in the RFI or Sources Sought.
Jesse Sherr 07:10
Great information! Before we go, any final thoughts you would like to leave with our listeners?
Frank Krebs 07:16
Yes, by responding to RFIs and Sources Sought in your primary competencies, you are increasing your visibility to the Federal Client and keeping your company name on the minds of both contracting and program staff, as these responses are typically viewed by not just the government buyers, but by their program level counterparts and Directors.
Jesse Sherr 07:41
Excellent! That is going to wrap up today's episode. Frank, thanks again and we will see you next time.
Jesse Sherr 07:57
This concludes this week’s episode of FedBiz’5 where you get informed, get connected, and get results. Today’s podcast is sponsored by FedBiz Access. Government contracting made simple. Visit them at Fedbizaccess.com or contact them at 888-299-4498.