Anna Urman, Senior Procurement Analyst at the U.S. Department of State Office of Small and Disadvantaged Business Utilization, will answer questions about how to procure business with the U.S. Department of State in this webinar hosted by our friends at Govology, on “Doing Business with the Department of State“.
The purpose is to help you understand the contracting process, opportunities, requirements, and market research practices to capture business at the U.S. Department of State–The Department of State and the United States Agency for International Development (USAID) are potentially going to be funded at $58.5 billion in FY 2022, which is 10% more than in FY 2021. As a result, there’s a lot of incentive to understand why small firms should get involved and acquire contracts from them.
Potential contractors should be aware that these entities have specific requirements related to their purchases including size and type of business, experience, and products and services offered.
The Department of State’s Office of Small and Disadvantaged Business Utilization (OSDBU) is committed to increasing the participation of small businesses in its procurement activities. The OSDBU provides program direction and policy guidance to the Department of State bureaus and offices on issues affecting small businesses and socially and economically disadvantaged individuals.
The Department of State’s Directorate of Acquisitions (DA) is responsible for the management of all contract actions above $25,000. The DA has over 1,600 contract employees supporting its mission in more than 270 locations worldwide.
Two examples of the types of government contracts used by the State Department include:
1. Service Contract: A contract for services where the contractor agrees to perform a specific task or tasks, usually including labor, at a fixed price.
2. Construction Contract: A contract for the construction, alteration, or repair of public buildings and facilities, or of works to be paid for in whole or in part with government funds.
To be successful with the Department of State
To be successful with your proposal, you should conduct market research and present a strong business case to the contracting officer that addresses the business’ relevant experience, small/minority status, past performance, financial wherewithal, and other areas that demonstrate the capability to perform. The Procurement Forecast, which offers a look at who, what, when, and how much is purchased throughout your region, is market research that can be started immediately. Agencies are required by the law to prepare and make available forecasts of small disadvantaged businesses’ potential contract opportunities. As tempting as it may be to wait, the sooner you get started, the better. So, go ahead and start working on that right now!
You’ll also want to understand the entire selling process, which includes developing a product or service that meets their needs and acquiring a contract under an individual set-aside, multiple award schedule (MAS), GSA schedule, SB/SE BD, etc.
The individual set-aside contracts have the following criteria:
• The proposed business must represent a responsible and reliable source, capable of performing the required service or delivering the required product in a satisfactory manner. • The proposed supplier must be an eligible entity (see below). • All components of the proposal must meet reasonable standards of commercial excellence.
And here’s what it takes to become an eligible entity:
To become a certified small business, you’ll need to complete the necessary paperwork and have it verified by the Small Business Administration (SBA). The process is relatively simple and can be done online. You can find more information on the SBA website.
Large businesses can partner with small businesses to become certified joint ventures, which also makes them eligible to compete for set-aside contracts.
There are also a few other ways to become eligible, such as through the 8(a) Business Development Program, the HUBZone program, or by being a Service-Disabled Veteran-Owned Small Business (SDVOSB).
Once you’ve become certified and registered with GSA, you’ll be able to submit proposals and bids for government contracts. And don’t forget to keep your registration up-to-date; you’ll need to renew it every five years.
The Department of State is one of the largest buyers of goods and services in the world, so it’s no surprise that doing business with them is both competitive and complex.
To ensure you’re able to keep up, here are some things that you’ll need to know about the department’s acquisition process:
Their mission is to advance American interests through international diplomacy; their mission is not to purchase goods and services. They do not award contracts on price alone. Technical merit and past performance are also considered. The Department of State has an extensive contracting infrastructure, with contracts available in a variety of areas, including information technology, engineering, construction, and more.
Many other agencies provide contract opportunities, such as USAID, Defense Logistics Agency (DLA), Defense Information Systems Agency (DISA), US Army Corps of Engineers (USACE), and many more.
As a potential contractor, it is important to be familiar with the agency’s mission and objectives so that you can tailor your proposals accordingly.
If you’re considering doing business with the Department of State, it is critical that you first understand their mission. The department’s procurement process may be competitive and complex, but if you know what to look for–like technical merit or past performance–you’ll have a better chance at winning bids on government contracts. Once your company becomes eligible through the Small Business Administration (SBA), there are many opportunities available in a variety of areas like information technology, engineering construction, and more. Also, the importance of market research cannot be understated. It is highly recommended that you research and become familiar with the agency’s mission and objectives, as well as stay abreast of any changes in their contracting process.