Government contracting www.techrepublic.
co
m
A quick primer on government contracting
The federal government is the largest contractor in the United States. This does not mean that getting
work from the government is an easy task. Landing a contract with the government is not quite the same
as contracting out your product or service privately. Doing business with the government is a process that
involves considerable work up front before a contract can be signed.
This report provides consultants and contractors with an overview of the steps involved in obtaining a
contract to work for the federal government. State and local agencies will have their own rules, of course,
but many of the steps will likely be the same.
Federal purchasing agencies
Three characteristics set government spending apart from private business spending. These are
important to know when attempting to land a government contract:
1. Government contracts are heavily regulated to curb misappropriation of funds and ensure uniform
policies and practices across agencies.
2. The contract terms are the product of careful drafting by teams of government attorneys and have
often received distinct meaning through past contract adjudications.
3. Government contracts follow a very different procedural path than those of private contracts.
(An Overview: Government Contracts Law Compliments of The Legal Information Institute)
The U.S General Service Administration (GSA) is the purchasing agent for the U.S. government. It is
one of three central management agencies in the federal government. The GSA purchases goods and
services around the world for federal and civilian agencies, the military, federal courts, and Congress. It
employs approximately 14,000 people and has an annual budget of nearly $16 billion. The GSA also
provides services to support the work of the government, negotiating contracts that account for $40 billion
in goods and services and include everything from toothpaste to stealth bombers. It is through the GSA
that consultants and contractors apply for contracts with the federal government.
The main business of the GSA is carried out by three services: the Federal Supply Service (FSS), the
Public Buildings Service (PBS), and the Federal Telecommunications Service (FTS). When bidding for a
government contract, contractors deal with the FSS.
The FSS handles the supply and procurement responsibilities for a variety of consumer goods. The
FSS uses a schedule program that is similar to regular commercial buying practices. It provides
commercial products and services at volume-discount prices. The government, however, does not utilize
“middle men”;— the orders are placed directly with vendors.
Getting started
Listed below are the steps that need to be taken when beginning the process of applying for a GSA
Federal Supply contract.
Review the FSS Contractor Guide, which can be found at
http://www.fss.gsa.gov/vendorguide/.
Identify the Federal Supply Schedule that covers your product or service.
©2001 TechRepublic, Inc. www.techrepublic.com. All rights reserved. 1
Government contracting www.techrepublic.co
m
Obtain a copy of the Federal Supply Schedule solicitation for the product or service on the
Internet at http://www.eps.gov/.
Obtain a Dun & Bradstreet reference check at http://www.dnb.com/.
Complete all information in the solicitation.
Be ready to negotiate your best offer.
FSS contracts and government solicitations
The FSS offers two types of contracts: Single Award Schedule and Multiple Award Schedule. Single
Award Schedule contracts are made with one supplier for a specific product, at a stated price for delivery
to a geographical area. Multiple Award Schedule contracts are given to multiple companies supplying
comparable products and services at fluctuating prices. The theory is that the variety of vendors allows
the government to select the lowest overall price for a valued item.
Government solicitations are distributed though the Electronic Posting System at http://www.eps.gov/.
You can reply to a solicitation using the Standard Form 1499. Some information required to complete the
form includes:
The basic solicitation.
A commercial price list and catalog containing the products.
A manufacturer’s price list.
Documentation to support the difference between the discount offered and the best discount
available.
A letter of supply from the manufacturer of the products being offered.
Price analysis
When deciding whether to grant a contract, the government performs a price analysis in order to reach a
fair price with a potential contractor. Some factors that affect the price analysis are the current price for
the good or service, the government’s estimate, and recent awards. Other pricing factors may include:
Past and projected value of the item or service, and the current dollar amount of the purchase.
Current market conditions.
The extent of the product’s competition.
The inventory of the product or service.
The difference in price offered to the government and other buyers.
The most favored customer’s estimate.
Special concessions, terms, and conditions.
Price adjustment provisions for the product or service.
Negotiations
During negotiations, the main purpose of the government’s contracting officer is to come to a consensual
agreement with the offering party. The government’s main objective in awarding a contract is to get the
offering party’s best price, so this becomes a key part of the negotiation process. If the contract is
awarded, a proposal revision is requested of the contractor. This document confirms the terms and
conditions agreed upon by the two parties. The contracting officer will also present to the contractor a
copy of the contract and a copy of the catalog/price list as accepted by the government.
©2001 TechRepublic, Inc. www.techrepublic.com. All rights reserved. 2
Government contracting www.techrepublic.co
m
Commerce Business Daily
Another source for information about government contracts is the Commerce Business Daily (CBD). The
CBD is issued by the U.S. Government Printing Office and published daily on the Web by the Community
of Science at http://cbdnet.gpo.gov/. The publication provides information about government
procurement actions, contract awards, and sales of government property. The CBD also features an Alert
Service that allows users to create custom searches. The CBD is updated every day, and the user is
notified of new announcements by e-mail.
In addition to these features, the CBD also offers:
Full-field search capability.
Browse capability for current and back issues.
Direct links to full-text articles.
Customized CBD Alert Service.
GSA’s Small Business Centers
District of Columbia
Business Service Center (WCA4)
Program Support Division
7th & D Streets, SW, Room 1050
Washington, DC 20407
Tel: (202) 708-5804
Fax: (202) 205-2872
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont
Business Service Center (1AB)
T.P. O’Neill, Jr. Federal Building
10 Causeway Street, Room 290
Boston, MA 02222
Tel: (617) 565-8100
Fax: (617) 565-8101
New Jersey, New York, Puerto Rico, U.S. Virgin Islands
Program Support Division (2AR)
Business Services, Room 18-130
26 Federal Plaza
New York, NY 10278
Tel: (212) 264-1234
Fax: (212) 264-2760
Delaware, Maryland, Pennsylvania, Virginia, West Virginia
Program Services Division (3ADS)
Wanamaker Building
100 Penn Square East, Room 829
Philadelphia, PA 19107
Tel: (215) 656-5525
Fax: (215) 656-6404
©2001 TechRepublic, Inc. www.techrepublic.com. All rights reserved. 3
Government contracting www.techrepublic.co
m
Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina
Office of Enterprise Development (4E)
401 West Peachtree Street, Room 302
Atlanta, GA 30365-2550
Tel: (404) 331-5103
Fax: (404) 331-1813
Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin
Business Service Center (5ADB)
230 South Dearborn Street, Room 3714
Chicago, IL 60604
Tel: (312) 353-5383
Fax: (312) 353-5385
Iowa, Kansas, Missouri, Nebraska
Office of Enterprise Development (6ADB)
1500 East Bannister Road, Room 1160
Kansas City, MO 64131
Tel: (816) 926-7203
Fax: (816) 823-1167
Arkansas, Louisiana, Texas, New Mexico, Oklahoma
Office of Enterprise Development (7CPP)
819 Taylor Street, Room 9A00
Fort Worth, TX 76102
Tel: (817) 978-3284
Fax: (817) 978-4126
Colorado, Montana, Utah, North Dakota, South Dakota, Wyoming
Business Service Center (8PB-B)
Denver Federal Center
Building 41, Room 145
P.O. Box 25006
Denver, CO 80225
Tel: (303) 236-7408
Fax: (303) 236-74503
Arizona, California, Hawaii, Nevada
Office of Enterprise Development (9ADB)
450 Golden Gate Avenue, 5th Floor, Room 6514
San Francisco, CA 94102
Tel: (415) 522-2700
Fax: (415) 522-2705
Alaska, Idaho, Oregon, Washington
Office of Enterprise Development (10AB)
400 15th Street, SW
Auburn, WA 98001-6599
Tel: (206) 931-6599
Fax: (206) 804-74887
©2001 TechRepublic, Inc. www.techrepublic.com. All rights reserved. 4
Government contracting www.techrepublic.co
m
Satellite Office
Business Service Center (9ADB-L)
300 N. Los Angeles Street, Room 3259
Los Angeles, CA 90012
Tel: (213) 894-3210
Fax: (213) 894-3473
Federal Supply Service Information Center
1941 Jefferson Davis Highway
Crystal Mall Building 4
Room 104
Arlington, VA
Tel: (703) 305-6477
DSN: 327-1022
©2001 TechRepublic, Inc. www.techrepublic.com. All rights reserved. 5
