Doing Business with Doing Business with Governments in the U.S.A.Governments in the U.S.A.

Presented by Keith K. Glatz, CPPOPresented by Keith K. Glatz, CPPO

Purchasing & Contracts ManagerPurchasing & Contracts Manager

City of Tamarac, FloridaCity of Tamarac, Florida

WHY Do Business with the WHY Do Business with the Government?Government?

Nearly 1/3 of U.S. Gross National Nearly 1/3 of U.S. Gross National Product purchased by government Product purchased by government agenciesagencies

Government needs are fairly Government needs are fairly constantconstant

Government doesn’t play favorites – Government doesn’t play favorites – it’s a LEVEL PLAYING FIELDit’s a LEVEL PLAYING FIELD

Government pays its BILLS!!!Government pays its BILLS!!!

How Does Government Buy?How Does Government Buy?

Through Bids and Through Bids and Requests for ProposalRequests for Proposal

Through Small Through Small Purchase QuotationsPurchase Quotations

Through Procurement Through Procurement CardsCards

Handled exclusively Handled exclusively by Purchasingby Purchasing

DelegatedDelegated

Individuals Individuals (Administered by (Administered by Purchasing)Purchasing)

What Do We Buy?What Do We Buy?

Construction – Roads, Construction – Roads, Infrastructure, Buildings, Infrastructure, Buildings, etc.etc.

Professional Services Professional Services Engineers, Architects, Engineers, Architects,

ConsultantsConsultants Vehicles & Heavy Vehicles & Heavy

EquipmentEquipment Trucks, AutosTrucks, Autos

Computers & Office Computers & Office EquipmentEquipment

SuppliesSupplies Office Supplies, Food, Office Supplies, Food,

Chemicals, etc.Chemicals, etc.

Utilities ItemsUtilities Items Maintenance SuppliesMaintenance Supplies Parts and ToolsParts and Tools Services – all typesServices – all types Safety Equipment & Safety Equipment &

SuppliesSupplies . . . And Much More!. . . And Much More!

Who is the Government in Who is the Government in the United States?the United States?

Federal Government – U.S. Federal Government – U.S. GovernmentGovernment General Services Administration (GSA) General Services Administration (GSA)

Primary Procurement Agency for non-Primary Procurement Agency for non-Defense purchasesDefense purchases

Department of Defense (DOD)Department of Defense (DOD) Other agenciesOther agencies

State and Local GovernmentState and Local Government State Governments State Governments

50 States50 States Local Governments Local Governments

CountiesCounties Cities, Towns & VillagesCities, Towns & Villages Special DistrictsSpecial Districts

Educational EntitiesEducational Entities Colleges & UniversitiesColleges & Universities School DistrictsSchool Districts

The Basic RequirementsThe Basic Requirements Have a Product or a Service that We Have a Product or a Service that We

need!need! Most documents will be in English!Most documents will be in English! Register if requiredRegister if required Find OpportunitiesFind Opportunities

Registration – FederalRegistration – Federal Must be registered through the Central Must be registered through the Central

Contract Registration System Contract Registration System https://www.ccr.gov/ Must have a “Duns Number” assigned by Dun Must have a “Duns Number” assigned by Dun

& Bradstreet & Bradstreet http://fedgov.dnb.com/webform or call (866) or call (866) 705-5711705-5711

Must fill-out Online Representations & Must fill-out Online Representations & Certifications Application (ORCA) Certifications Application (ORCA) https://orca.bpn.gov

May be required to undergo a U.S. Department May be required to undergo a U.S. Department of Homeland Security Fingerprint Security of Homeland Security Fingerprint Security Check & Personnel Security InvestigationCheck & Personnel Security Investigation

All Details at All Details at http://www.gsa.gov/portal/content/104121

Registration – State & LocalRegistration – State & Local Each agency has its own requirementsEach agency has its own requirements May have to visit web-site, or contact agency May have to visit web-site, or contact agency

by telephoneby telephone State of Florida: State of Florida: http://

www.dms.myflorida.com/business_operations/state_purchasing/doing_business_with_the_state_of_florida

Miami-Dade County: Miami-Dade County: http://www.miamidade.gov/procurement/ City of Miami: City of Miami: http://

www.miamigov.com/Procurement/pages/SupplierCorner/DoingBusiness/default.asp

Some web-sites allow you to register on-line. Some web-sites allow you to register on-line. Some may require paper registration by fax or Some may require paper registration by fax or mail.mail.

Where Do I find Where Do I find Opportunities?Opportunities?

Federal ContractsFederal Contracts General Services Administration (GSA) General Services Administration (GSA) Department of Defense (DOD) Department of Defense (DOD) FedBizOpps.gov FedBizOpps.gov ((https://www.fbo.gov/) )

Opportunities over $25,000 (U.S. Dollars)Opportunities over $25,000 (U.S. Dollars)

State & Local OpportunitiesState & Local Opportunities State & Local ContractsState & Local Contracts

State and Local Web-sites State and Local Web-sites State of Florida: State of Florida: http://

www.dms.myflorida.com/business_operations/state_purchwww.dms.myflorida.com/business_operations/state_purchasing/doing_business_with_the_state_of_florida asing/doing_business_with_the_state_of_florida

Miami-Dade County: Miami-Dade County: http://www.miamidade.gov/procurement/ http://www.miamidade.gov/procurement/

City of Miami: City of Miami: http://www.miamigov.com/Procurement/pages/SupplierCorhttp://www.miamigov.com/Procurement/pages/SupplierCorner/DoingBusiness/default.asp ner/DoingBusiness/default.asp

Subscription ServicesSubscription Services

Private Subscription Services Private Subscription Services Onvia/Demandstar.com Onvia/Demandstar.com

http://www.demandstar.com/ http://www.demandstar.com/ Bidnet.com http://www.bidnet.com/ Bidnet.com http://www.bidnet.com/

These services do not represent These services do not represent every state and local government every state and local government agency. agency.

ConstructionConstruction Construction “Plan Room” Subscription Construction “Plan Room” Subscription

Services – provides construction plans & Services – provides construction plans & bidsbids Datafax.net Datafax.net http://www.constructionjournal.com/http://www.constructionjournal.com/

McGraw Hill.com (Dodge Report) McGraw Hill.com (Dodge Report) http://www.construction.com/ http://www.construction.com/

ISqFt.com ISqFt.com http://www.isqft.com/new/ http://www.isqft.com/new/

The Construction Journal The Construction Journal http://www.constructionjournal.com/ http://www.constructionjournal.com/

Reed Construction Reed Construction http://www.reedconstructiondata.com/ http://www.reedconstructiondata.com/

Things I’ll NeedThings I’ll Need

Insurance – If you plan to do work on Insurance – If you plan to do work on our property, you will be required to our property, you will be required to have appropriate insurance coverage have appropriate insurance coverage before you can do business with the before you can do business with the Agency.Agency.

Typical Insurance LimitsTypical Insurance Limits(May vary by agency and project)(May vary by agency and project)

General Liability -- $2,000,000General Liability -- $2,000,000 Auto Liability -- $1,000,000Auto Liability -- $1,000,000 Workers Comp. -- StatutoryWorkers Comp. -- Statutory Professional Liability -- $1,000,000 (used for Professional Liability -- $1,000,000 (used for

consulting and professional services)consulting and professional services) Agency must normally be named on Agency must normally be named on

Insurance Certificate as “Certificate Holder” Insurance Certificate as “Certificate Holder” and an “Additional Insured”and an “Additional Insured”

Bonds & LicensesBonds & Licenses

If you are performing construction If you are performing construction work, you will be work, you will be REQUIREDREQUIRED to obtain to obtain a Performance and Payment Bonda Performance and Payment Bond As an example: Bonds required for all As an example: Bonds required for all

projects over $200,000 in Floridaprojects over $200,000 in Florida Construction contractors must be Construction contractors must be

properly licensed as a contractor by properly licensed as a contractor by the localethe locale

Understanding the Understanding the MarketplaceMarketplace

Competitive requirements – Know the bid Competitive requirements – Know the bid threshold for each agency you deal with threshold for each agency you deal with $10,000 - $100,000 typical formal bid threshold $10,000 - $100,000 typical formal bid threshold

Purchases above the threshold must be formally Purchases above the threshold must be formally advertised and require governing body approvaladvertised and require governing body approval

Most have thresholds for informal quotationsMost have thresholds for informal quotations Procurement card purchases usually established Procurement card purchases usually established

with single purchase limitwith single purchase limit

Things to Remember When Things to Remember When Working With Procurement CardsWorking With Procurement Cards

Shipping charges, if applicable, MUST be Shipping charges, if applicable, MUST be included in any pricing quotedincluded in any pricing quoted

Be sure to provide receipts to the user Be sure to provide receipts to the user immediately.immediately.

If agency is ordering via Internet, e-mail If agency is ordering via Internet, e-mail receipt immediately upon confirmation of receipt immediately upon confirmation of order.order.

Marketplace IssuesMarketplace Issues

Competitive Competitive sealed bidssealed bids are awarded to the are awarded to the lowest priced bid, meeting our requirements.lowest priced bid, meeting our requirements.

Requests for ProposalRequests for Proposal are awarded to firms who are awarded to firms who best meet the requirements of the proposal’s best meet the requirements of the proposal’s written criteria. Usually the “Highest Score”written criteria. Usually the “Highest Score”

Departments may have some discretion on small Departments may have some discretion on small purchases under the entity’s formal bid threshold, purchases under the entity’s formal bid threshold, but may have to provide back-up to validate that but may have to provide back-up to validate that competition was sought.competition was sought.

Small OrdersSmall Orders Majority of items ordered by Purchase OrderMajority of items ordered by Purchase Order

Department required to supply back-up, such as Department required to supply back-up, such as quotation, insurance certificate, etc., so please quotation, insurance certificate, etc., so please provide this information to the department.provide this information to the department.

Normally, small orders are your BEST Normally, small orders are your BEST opportunityopportunity

You need to establish relationships with You need to establish relationships with individual agencies to know when we have individual agencies to know when we have small orders small orders

What We ExpectWhat We Expect

Your BEST pricing at the outset! (You must Your BEST pricing at the outset! (You must be competitive to earn our business)be competitive to earn our business)

A Quality Product or ServiceA Quality Product or Service

Accountability -- Fair and Honest Dealings -- Accountability -- Fair and Honest Dealings -- We subscribe to a stringent code of ethics.We subscribe to a stringent code of ethics.

Transparency – All business conducted Transparency – All business conducted under public scrutiny.under public scrutiny.

What We Expect – What We Expect – ContinuedContinued

Product in stockProduct in stock Timely DeliveryTimely Delivery No issues with importsNo issues with imports Everything is easy to understandEverything is easy to understand No problems with the “paperwork”No problems with the “paperwork” ““Service after the sale”Service after the sale”

Bids Vs. ProposalsBids Vs. Proposals

BidBid Used when clear specifications are available.Used when clear specifications are available. Usually adequate competition exists in the Usually adequate competition exists in the

market.market. The main goal is the lowest price. The main goal is the lowest price. Bidders must be responsive & responsible!!Bidders must be responsive & responsible!!

Responsive – follows the directions on the bid.Responsive – follows the directions on the bid. Responsible – capable of performing the work.Responsible – capable of performing the work.

Bids Vs. ProposalsBids Vs. Proposals

ProposalProposal Used when the buyer is looking for the best Used when the buyer is looking for the best

approach to an issue. approach to an issue. Buyer usually has a goal, and wants to explore Buyer usually has a goal, and wants to explore

the best possible solution.the best possible solution. Criteria OTHER than price may be considered, Criteria OTHER than price may be considered,

such as past experience and qualifications of such as past experience and qualifications of personnel, how well the work plan achieves the personnel, how well the work plan achieves the goal, creativity, and schedule.goal, creativity, and schedule.

Criteria may be weighted, and is evaluated by a Criteria may be weighted, and is evaluated by a team.team.

Preparing A Bid – Preparing A Bid – Fundamental RequirementsFundamental Requirements

Read the Bid/Proposal InstructionsRead the Bid/Proposal Instructions Check to see what YOU need to provide with your responseCheck to see what YOU need to provide with your response Check for certifications, affidavits, and pages that need to Check for certifications, affidavits, and pages that need to

be signedbe signed Be sure the PROPER person, authorized to sign bids, has Be sure the PROPER person, authorized to sign bids, has

signed the document.signed the document. Proofread, proofread, proofread!Proofread, proofread, proofread! Read the Bid / Proposal Instructions AGAIN!!Read the Bid / Proposal Instructions AGAIN!!

Calculate and Submit prices in U.S. DollarsCalculate and Submit prices in U.S. Dollars

When Preparing BidsWhen Preparing Bids Fill-out the Bid FormFill-out the Bid Form

Read the Instructions! Fill-out EVERYTHING Read the Instructions! Fill-out EVERYTHING on the bid documenton the bid document

Fill-out pricing, certifications, requests for Fill-out pricing, certifications, requests for Information about your firm or your productInformation about your firm or your product

PRICING MUST BE IN U.S. DOLLARS!!!PRICING MUST BE IN U.S. DOLLARS!!! Check and re-check the unit prices.Check and re-check the unit prices. Extend the unit prices based on quantities.Extend the unit prices based on quantities.

Add-up your group totals and check the Add-up your group totals and check the math!!!math!!!

Preparing Bids - ContinuedPreparing Bids - Continued

Fill-out the manufacturer Fill-out the manufacturer name/model numbers.name/model numbers.

Provide delivery timeProvide delivery time Specification cut-sheets – be sure Specification cut-sheets – be sure

that you include specification sheets, that you include specification sheets, or something that verifies your or something that verifies your product’s characteristics and product’s characteristics and capabilitiescapabilities

Items to Be IncludedItems to Be Included If we ASK for proof of insurance, WE MEAN IT! If we ASK for proof of insurance, WE MEAN IT!

Include your proof of insurance when requestedInclude your proof of insurance when requested Bid or Proposal Bond – If we ask for a bid or Bid or Proposal Bond – If we ask for a bid or

proposal bond, include it WITH the bid. proposal bond, include it WITH the bid. (Performance and Payments Bonds will not (Performance and Payments Bonds will not normally be requested until the award stage.)normally be requested until the award stage.)

Cashier’s Check – If Cashier’s Check is requested Cashier’s Check – If Cashier’s Check is requested in place of a Bid Bond, include a cashier’s check in place of a Bid Bond, include a cashier’s check WITH your bid, not a company check – a WITH your bid, not a company check – a company check will deem your proposal non-company check will deem your proposal non-responsive.responsive.

References – We need to see your references, References – We need to see your references, and may even ask for a complete client list. and may even ask for a complete client list.

Additional Items to Submit Additional Items to Submit with Proposalswith Proposals

Your Your WORK PLANWORK PLAN, address OUR situation! , address OUR situation! Provide Provide RESUMESRESUMES of the personnel who of the personnel who

will be WORKING ON OUR PROJECT if you will be WORKING ON OUR PROJECT if you win the proposal.win the proposal.

Break down the Break down the HOURSHOURS you plan to devote you plan to devote to our project, and a breakdown of who to our project, and a breakdown of who will be working during those hours. (We will be working during those hours. (We want to see how your organize your work.)want to see how your organize your work.)

Proposals – Continued Proposals – Continued

Provide your Provide your SCHEDULESCHEDULE, including , including significant project significant project MILESTONESMILESTONES and your and your anticipated anticipated COMPLETION TIMECOMPLETION TIME..

Let us know the Let us know the PROJECT ROLESPROJECT ROLES of your of your staff, and provide us with your staff, and provide us with your PROJECT PROJECT LEADERLEADER. . We’ll expect to see your project leader at the We’ll expect to see your project leader at the

presentation, along with other decision makers presentation, along with other decision makers on the project.)on the project.)

Submitting Your BidSubmitting Your Bid For Mailed/Delivered BidsFor Mailed/Delivered Bids

Clearly identify that the container contains a Clearly identify that the container contains a response. Identify the bid/proposal number, the response. Identify the bid/proposal number, the title, and the due date and time.title, and the due date and time.

Make sure your solicitation is delivered to the Make sure your solicitation is delivered to the address indicated in the bid ON TIME! Most address indicated in the bid ON TIME! Most entities do NOT accept late bids.entities do NOT accept late bids.

Expect the unexpected! Expect the unexpected! Even overnight couriers Even overnight couriers cannot perform miracles. YOU need to be sure that cannot perform miracles. YOU need to be sure that you have plenty of time for shipping bids. If you you have plenty of time for shipping bids. If you deliver them, be sure to account for traffic and deliver them, be sure to account for traffic and weather hazards in advance. weather hazards in advance. There is NO excuse for There is NO excuse for a late bid or proposala late bid or proposal..

Questions Or Comments?Questions Or Comments?

THANK YOU!!THANK YOU!!