Preparing a Bid that Fits My Core Competency

Government contracting can be a lucrative avenue for businesses looking to expand their portfolio. However, understanding the intricate details and requirements is paramount. In this episode of FedBiz'5, Jesse Sherr sat down with Senior Contracting Specialist, Frank Krebs, to discuss the crucial steps a small business needs to take when deciding if they should bid on a government opportunity that aligns with their core competencies.

The Preliminaries

Frank emphasizes the importance of thoroughly reading the government's statement of work and any request for proposal (RFP) or quote before diving into the bidding process. There are stringent requirements potential vendors must meet, especially when dealing with the federal government.

1. Determine the Type of Contract: First, identify if the contract is a Set-Aside. If the solicitation appears on SAM.gov, it will outline any Set-Aside requirements. Understand if your firm qualifies for such bids.
2. Review the Full Document: Beyond the statement of work, one should be vigilant about any additional requirements or licensing that the government mandates. Does your company meet these prerequisites?
3. Pre-Bid Conference or Site Visit: Some contracts require mandatory pre-bid conferences or site visits. These sessions provide essential information and a chance to meet key players like the contracting officer. Make sure you can attend these or have someone representing your organization.

Key Sections of a Federal RFP

For those new to the RFP process, Jesse brought up the lettered sections seen in most RFPs. Frank elucidated on the most crucial sections:

1. Section B: Details the supplies, services, and the associated price/costs. Here, you'll find contract line item numbers (CLINs) covering all billable items. Understand if the contract is fixed-price, where fees are constant, or a cost-reimbursement, where contractors bear costs upfront and then bill for reimbursement.
2. Section C: A comprehensive breakdown of the description, specifications, and statement of work. It's essential to assess whether your company can deliver on these stipulations within the specified timeframe.
3. Section L: It highlights instructions, conditions, and notices for offerors. This section provides the contract type, performance period, and instructions for your bid's construction.
4. Section M: Discusses how proposals will be evaluated. Recognize the importance and weightage of each requirement to prepare a competitive bid.

Other Crucial Considerations

Even if there are no apparent impediments, Frank advises businesses to review other factors before preparing their bid:

• Time and Resources: Does your firm have adequate time and the necessary resources to prepare a comprehensive bid? Depending on the contract's complexity, it might require a larger team and a more extensive resource commitment.
• Subcontractor Needs: Evaluate if you'll need subcontractor support to meet specific requirements or to bolster your staff. A key question to ask is whether including a subcontractor will significantly enhance your proposal's chances.

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Transcript

 Preparing a Bid that Fits My Core Competency:

Frank Krebs 00:02

My name is Jesse and I work with small businesses and the Government Marketplace you're listening to FedBiz Five, where you get informed, get connected, and get results on everything government contracting. Hello and welcome to another episode of FedBiz vibe. Today we are going to discuss the steps that a small business must complete when determining if they should prepare a bid on a government opportunity that meets their core competencies. Senior contracting specialist Frank Krebs is here to discuss Hi, Frank. 

Frank Krebs 00:32

Hey, good afternoon, Jesse. 

Jesse Sherr 00:33

So, let's just jump right in here. What are the first steps in this process?

Frank Krebs 00:38

Okay, Jesse. First of all, let's make sure folks don't get ahead of themselves. So, by this I mean, do not start developing any documents, preparing pricing, or researching suppliers until you have thoroughly and completely read the government statement of work and the request for proposal or request for quote. The government places many restrictions and requirements on potential vendors when they are soliciting bids. This is especially true with the federal government. So here are a few items to pay attention to when you're doing your initial read/review:

Frank Krebs 01:14

First, is the contract being solicited as a Set-Aside contract? If the solicitation is published in SAM.gov, the government will identify any Set-Aside requirements as part of their overview information, and the Contracting Officer typically places the specific Set-Aside requirements in the contract description. Look for this and make an initial determination if your firm is qualified to bid the solicitation or not. 

Frank Krebs 01:43

Now, when reviewing the total document, the statement of work and all attachments, be on the lookout for any other special government requirements or licensing that is identified and determine if your firm meets those requirements. 

Frank Krebs 01:58

Also, ascertain if there is a pre-bid conference or site visit, and check to see if participation is mandatory prior to submitting a bid. If there is a pre-bid conference or site visit, can you attend or can you have someone from your organization attend? If not, you will most likely not want to bid, as important information is typically presented at these meetings and site visits. And it's also your final opportunity to meet the contracting officer and any other key government players that might be in attendance if you've not already been introduced to these folks.

Jesse Sherr 02:35

Excellent advice, Frank. Appreciate that. So, when I have looked at RFPs in the past, it seems that most of them have sections identified by letters. Are any of these sections more important or do any require special attention? 

Frank Krebs 02:48

Well, yes. The most critical sections of a federal government RFP that you want to initially focus your attention on are sections B, C, L & M. Section-B is the Supplies or Services and Price/Cost section. This provides information on the required deliverables of the contract and how the government intends to compensate you for your work. It also includes a comprehensive list of all billable items or contract line item numbers. This is known in government contracting as CLINs. Now, the CLINs include all supplies, labor, and other billable items. This section will stipulate the pricing structure for the award, as there are many contract pricing structures that you must understand, such as Fixed-Price contract and Cost-Reimbursement contract. A Fixed-Price contract is the pricing structure where the stated expensive fees included in your proposal are fixed and not subject to change. Whereas, a Cost-Reimbursement contract is where the contractor bears all costs first, and then bills these costs plus any applicable fees for reimbursement. 

Frank Krebs 04:05

Now, Section-C is the Description, Specifications and Statement of Work section. This must be reviewed thoroughly to determine if your firm can provide the services or product as required within the necessary timeframe. Can you meet all of these requirements?

Frank Krebs 04:24

Section-L is the Instructions, Conditions, and Notices to Offerors. This is where the government dictates the contract type, the period of performance and there's specific instructions on how they want you to construct your bid - from the document's formatting to the organization of all required materials. Additionally, this section will also include other applicable conditions, licensing and federal policies that must be followed and adhered to. 

Frank Krebs 04:53

Finally, Section-M discusses Evaluation Factors for Award. This section identifies how the government will evaluate proposals received. The weight that each section or proposal requirement will receive, and items that can make a proposal be deemed unacceptable. Reviewing this section is critical while you're preparing your response.

Jesse Sherr 05:18

So, if a potential bidder does not find any roadblocks at this point, should they prepare a bid or are there other considerations to be reviewed?

Frank Krebs 05:26

Good question. There definitely are other considerations. First, does your firm have the time and the necessary resources to prepare a bid? So, if you believe there's enough time to develop the required information for the bid, you must then determine if your firm has the resources. By that I mean the staffing and the expertise to complete the bid and address everything that is required. Now, some simpler proposals can be handled by one or two competent individuals, while other proposals will require a team of 8 - 10, or even more to develop designs, to secure facilities, to identify key personnel, to build staffing plans, while simultaneously developing a pricing model. 

Frank Krebs 06:13

Additionally, you must decide if your firm will need subcontractor support in order to address specific contract requirements or to supplement your firm's personnel. When determining if a subcontractor should be utilized, always answer the following question before making the decision to proceed to bid. Will adding a subcontractor significantly strengthen our proposal and therefore our chances of winning, and if so, who is that subcontractor?

Jesse Sherr 06:44

Excellent, I'm sure that your insight will prove extremely helpful to any small business looking to bid on a government contract. Before we get out of here, do you have any final thoughts or recommendations for our audience?

Frank Krebs 06:55

Yes, Jesse. I do. The final piece of the process needs to be addressed is one that ownership or the company's executive staff must complete. The Marketing and Business Development team(s) can make early determinations, for the most part, but now, it comes to decisions that fall solely on ownership's lap. Will winning this contract jeopardize any of our existing contracts or customers by having to pull staff for this new award or redirect equipment or other resources? If so, can we develop a plan that minimizes any impact and secures the financial well-being and corporate integrity or reputation of the firm? You never want to spread your company too thin, because when you do quality and timeliness will suffer and you cannot afford that these days. Remember, you do not have to bid on every solicitation that you review. Be selective, start small, and work your way to larger, more complex options. Never put your reputation or corporate financial well-being in peril to secure a single contract award.

Jesse Sherr 08:07

Frank, I couldn't agree with you more! That's going to have to wrap it up for this episode. I'm sure there is a lot of information that our audience can take from this, so we appreciate it.

Frank Krebs 08:14

Okay, Jess. 

Jesse Sherr 08:15

All right. 

Frank Krebs 08:16

Have a good day, sir. 

Jesse Sherr 08:17

You too. Take care. Bye bye. This concludes this week's episode of FedBiz'5. Where you Get Informed, Get Connected & 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.