Government contracting 101: help for small business owners reaching for that brass ring

Alaska Business Monthly, April, 2006 by Gary L. Martin

For a small business owner, trying to scale the slippery wall leading to a government contract, the task may seem insurmountable. While he or she may know there is a brass ring at the top, many give up unaware of the fact that there are experts along the way who are willing to extend a friendly hand and point to the footholds.

PTAC

While many people would like to give it shot, most new business owners do not have a clue on where or how to begin. A good starting point is PTAC, or the Procurement Technical Assistance Center.

PTAC's services are part of a nationwide program for small business with a primary mission of helping them to enter the world of government contracting.

According to Katherine Anderson, program manager, there are no fees for their help. While the Department of Defense funds the program, it is offered by the Small Business Development Center through the University of Alaska. They are located at the U.S. Small Business Association office in downtown Anchorage (see sidebar for contact info).

Anderson says since starting the program in Alaska in 1986, PTAC has helped more than 1,000 businesses in Anchorage and Fairbanks, resulting in $1.6 billion in contract awards. Their services include workshops, seminars and one-on-one counseling, which covers such topics as initial steps for contracting with federal, state and local governments.

They also offer "Electronic Bidmatch," a system that searches a couple of hundred databases nationwide for government bid opportunities. The offices in Anchorage and Fairbanks have a comprehensive library with up-to-date contracting publications, plus a free monthly newsletter that keeps business owners informed of the latest developments in government contracting.

"Our mission is to help businesses get government contracts; that's what we exist for," said Anderson. "The process can be very daunting.

"There are a lot of acronyms and red tape involved with government contracting, and of course there's also a ton of paperwork. If someone is very new to the process, we'll go through what we call our 10-step program. It takes them step-by-step through a list of things we think they need to accomplish in preparing to enter the contracting arena."

GETTING STARTED

One of the first things a newcomer must do is obtain a Data Universal Numbering System (DUNS) number. The DUNS number is a unique nine-digit number assigned by Dun & Bradstreet, used to identify business entities. Registering is simple and free; it can be done by calling their toll-free number (see sidebar for contact info).

The other must-have is a list of NAICS or North American Industry Classification System codes. These are six-digit codes that identify the skill, product or service areas in which a business owner feels competent to do business with the government. They can be obtained online (see sidebar for contact info), but attempting to identify and understand all of the codes can become frustrating. A government-contracting specialist can help with this matter.

A new company looking for government contracts must also register with the Central Contracting Registration (CCR) (see sidebar for contact info). Before doing that, a company must first have its NAICS codes. They are required as part of the registration process.

PTAC also will provide help for individuals who are interested in the Government Certification Programs. These programs are available only for small businesses and may be based on social and economic disadvantage or location. One program is 8(a). It is for small businesses with a net worth not exceeding $250,000 and unconditionally owned and controlled (at least 51 percent) by one or more socially and economically disadvantaged citizen/ citizens of the United States.

Another one is the HUBZone Empowerment Contracting Program, which is designed to stimulate economic development and create jobs in urban and rural communities.

There are also programs for service-disabled veterans and woman-owned businesses.

CONTRACT SPECIALISTS

There are people outside the PTAC arena who are also willing to help small businesses looking for government contracts. If your company is on the CCR, has its DUNS number and NAICS codes, the next step is to contact a small-business specialist.

Each government organization with a contracting department has a staff small-business specialist. For example, at Elmendorf Air Force Base in Anchorage, it is Della Simmons, and for the Army Corps of Engineers, it is Ivonne E. Drake. The Corps of Engineers, which is one of the largest government contractors in Alaska, is also located at Elmendorf Air Force Base.

Simmons works for the 3rd Contracting Squadron, which was last year's recipient of the Susan E. Roggencamp Award from The Alaska 8(a) Association; they also were recently named the top Air Force contracting squadron for the Pacific Region. Simmons serves as an intermediary between small-business owners and the Air Force contracting officers that prepare the contracts that go out for bidding.