How Business Partnering Can Help You Become A Government Contractor

“FEDERAL TIMES” By Melissa Rayworth

“For entrepreneurs, it’s part of the central mythology: You launch your own business because you want to be your own boss. To thrive as a business owner, it helps to have an independent streak and be comfortable going it alone.

But when small and mid-sized companies begin pursuing government contracts, it can help — immensely — if they strategically collaborate with other businesses.”

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“There are several ways to make this happen:

• Getting work as a subcontractor is one good possibility.
• You can also seek mentoring from more experienced companies already working with the government and use that knowledge as you pursue your first contract.
• Some companies break into the industry through a true partnership, pairing up with another applicant to submit a joint bid.

“One new entrant might complement a gap or a void that another existing business may have, and together they have a better opportunity moving forward,” says Antonio Doss, deputy associate administrator for government contracting and business development at the Small Business Administration.

What kind of matches can work?

If you’re considering working as a subcontractor, ask yourself: How might your product or service be used by a larger company to help fulfill a contract they’ve won or they’re pursuing?

Building a relationship with a prime contractor “can be a great place to start and learn,” says Lauren Weiner, co-founder of WWC Global. She has worked as a government contractor since 2006.

One key to landing a contract: really understanding the needs of a particular government department or agency, Weiner says. While working as a subcontractor, you can learn about a particular sector and really come to understand those needs – while getting paid.

Going in on a joint bid with another company can give you the same advantage. If you’re partnering with someone who has a bit of experience, it can help speed up your learning curve.

But whether you’re seeking to be an equal partner on a contract or looking to be a subcontractor, the key is building relationships.

Where does a company find potential partners?

Your local SBA office may be able to help you connect with potential partners or folks who would need you as a subcontractor.

SBA district offices do their own training and also do training in partnership with local chambers of commerce and economic development organizations “to help demystify the whole government contracting space,” says Antonio Doss, deputy associate administrator for government contracting and business development.

These training events can be opportunities for networking with other entrepreneurs who are curious about government contracting or already pursuing contracts.

The current administration is making it a priority to increase the number of American small businesses working as government contractors, Doss says, and supporting business owners in networking with others is part of their plan. “Not only can you be a part of that space,” Doss says, but “as a newer entrant into the environment, you can learn from the other people.”

Seek mentors, even among competitors

The SBA points businesses to mentorship through organizations like score.org. But Doss also recommends reaching out directly to companies that are more experienced and thriving in the government space.

You might be surprised how many people – even competitors – are willing to share their knowledge about breaking into contracting within a specific industry.

“Those persons are often a season or two or three further down the path of where you are right now,” Doss says. “Often they’re willing to share with you, because sometimes they’re also realizing that you might be a good teaming partner at some point.”

One way to avoid stepping on toes as you seek advice: Since companies usually choose a particular government agency to do business with, you might learn from a competitor and then target a different area of the government.

As you pursue subcontracting jobs, partnerships and mentorship, Weiner says, keep this in mind: There are as many ways of earning a government contract as there are businesses that do it.

“So don’t get discouraged if another business owner says, ‘it was impossible,’” she says. “It may not be impossible for you, given what you offer.”

How Business Partnering Can Help You Become A Government Contractor

For More on Federal Government Contact Teaming please see:

Small Business Teaming In Federal Government Contracting

#governmentContracting #GovernmentContractors #Teaming #TeamingAgreements

Protecting Intellectual Property And Proprietary Data In Federal Government Contracting

“SMALLTOFEDS” By Ken Larson

“Contractual relationships established directly with the US government or under subcontracts and purchase orders under government contracts with other companies must contain provisions for the protection of intellectual property and proprietary data.“

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“RIGHTS IN TECHNICAL DATA AND SOFTWARE

The Defense Federal Acquisition Regulation (DFAR) contains the most widely used provisions by a federal agency that allow a contractor, subcontractor or supplier under government contracts to assert ownership or protective rights for specific technical data and software. Keep in mind that the more a company has invested in a technology, a product or a system the higher the level of protection available under the DFAR. If the government has or will invest in the technical data and software then the level of protection that can be asserted diminishes and the government begins to assume ownership and attendant control of the related intellectual property.

It is important during the solicitation and proposal stage to assert rights in technical data and software so the business relationship is clearly understood by all parties and appropriate protective markings, licensing and related measures can be covered in the contractual documentation. The following information in the DFAR should be studied to ascertain how to appropriately assert rights during proposals to the government and to prime contactors:

SUBPART 227.71—TECHNICAL DATA AND ASSOCIATED RIGHTS

SUBPART 227.72—COMPUTER SOFTWARE, COMPUTER SOFTWARE DOCUMENTATION, AND ASSOCIATED RIGHTS

The government does not sign agreements to protect specific data, abiding instead by the DFAR-specified assertions regarding ownership and use of technical data and computer software as they are negotiated in contracts. The government will comply with specific marking and identification of proprietary data. Details on these markings are provided at the conclusion of this article.

NON-DISCLOSURE AGREEMENTS BETWEEN COMPANIES

When two companies begin an exchange of information that may lead to a mutually exclusive business arrangement under a government contract, a Non-Disclosure Agreement (NDA) is generally signed to protect proprietary data.

The first page of such an agreement is on the left in the illustration below. The entire document may be obtained free of charge by downloading it at the “Box Net” cubicle in the right margin of this site.

TEAMING AGREEMENTS BETWEEN COMPANIES

When two companies agree to form a mutually exclusive agreement to prepare a proposal as a team to a government agency a teaming agreement is generally executed. The first page of such an agreement is on the right in the illustration below . The entire document may be obtained free of charge by downloading it at the “Box Net” cubicle in the right margin of this site.

A teaming agreement remains in force until it is replaced by a subcontract from the lead company to the following company upon award of the prime contract. In the case of a joint venture, the prime contract award results in two contracts from the joint venture contract level to the respective participating company levels.

PLEASE CLICK ON ILLUSTRATION OR DOWNLOAD TO ENLARGE ( Complete texts of these documents are available at the BOX in the right margin of the site linked below}

PROTECTING RATE INFORMATION BETWEEN COMPANIES

It is generally recognized by all industries participating in federal government contracting that internal overhead and G&A rates and the data that support them are proprietary data. The reason for the proprietary nature of rate data between companies is that in government work firms are teaming with each other exclusively on one project and competing against each other on additional contracts or projects at the same time.

Assuming everyone pays a generally similar labor rate on the market to retain employees and that fringe costs about the same for everyone, then overhead and G&A are what wins and loses jobs and specific, company internal overhead rates are very closely held.

Companies do not disclose the details of their rates to other companies and they do not expect to see another company’s proprietary rate information. So companies view each other’s rate information on a fully loaded basis, meaning the total of the base cost, any proprietary indirect cost and an agreed upon profit percent.

If a prime contractor requests that subcontractor proprietary rate information be supplied with a proposal the detail should be double wrapped and the package stamped, ‘Government Eyes Only’. The prime will then hand the package off to DCAA without opening it and receive only the fully loaded result of the burdened rate pricing.

DCAA or federal agency pricing analysts perform detail audits of subcontractor rate information but prime contractors are not provided the result. An audit statement by the government that the subcontractor detail rate support is acceptable or not acceptable is all that is provided to the prime contractor.

Government auditors do not make value judgments or negotiate; they review the logic and support for rates, check the math and provide a report to the government contracting officer who will conduct the negotiations, if any.

PROTECTIVE MARKINGS FOR PROPRIETARY DATA SUBMITTED TO THE GOVERNMENT AND TO A PRIME CONTRACTOR

Your proposal data may contain rate information, proprietary data or strategic technical solutions that you would not want to fall into the hands of a competitor. The government does not sign Proprietary Data Agreements (PDA’s). Examples of the government’s obligation to protect your information are covered under the DFAR rights in technical data and software assertions discussed above and in the following FAR clause that requires protective markings by you on the title page of your document and on each subsequent page.FAR 15.509 Limited use of data:

(a) A proposal may include data that the offeror does not want disclosed for any purpose other than evaluation. If the offeror wishes to restrict the proposal, the title page must be marked with the following legend:

“The data in this proposal shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed in whole or in part for any purpose other than to evaluate the proposal; provided, that if a contract is awarded to this offeror as a result of or in connection with the submission of these data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the contract. This restriction does not limit the Government’s right to use information contained in the data if it is obtainable from another source without restriction.”

(b) The offeror shall also mark each restricted sheet with the following legend:

“Use or disclosure of proposal data is subject to the restriction on the title page of this Proposal.”

(c) The coordinating office shall return to the offeror any unsolicited proposal marked with a legend different from that provided in 15.509(a). The return letter will state that the proposal cannot be considered because it is impracticable for the Government to comply with the legend and that the agency will consider the proposal if it is resubmitted with the proper legend.”

Smalltofeds – Protecting Intellectual Property and Proprietary Data

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