News
Doing Business Down South: Government Contracting in Southern NM
by Elke Mosholder
Senior PTAP Advisor
Sometimes when I get asked about federal contracting the question comes from a new client who alludes that he or she is going after that $50 million contract. That’s great, but it does take awhile to get to that point, especially if you’re a small business owner doing it for the first time. There are so many facets to getting from point A (getting registered) to point Z (contract administration).
And although some businesses successfully get through the process without PTAP, doesn’t it make more sense to have someone who walks you pass the pitfalls and hurdles, takes the red tape out of the red tape, and keeps you informed of what the federal agency is looking for?
I’ve spent more than 25 years working for or with federal government, first starting with the Department of Justice in El Paso, and now with PTAP in Alamogordo and Las Cruces. My work includes personally knowing the agency directors of small business operations, including those at Holloman Air Force Base, U.S. Border Patrol and White Sands Missile Range. My job also involves knowing what the agencies want and what type of businesses they are looking for to do it.
At White Sands, often road repair or IT-related services are put out to bid. At Holloman, they’ll look for construction, janitorial, equipment repair, lockers, unmanned aircraft operation centers, tables, oxygen, petroleum products, copier repair and target cleanup — although it can vary. And the Border Patrol will often look for alfalfa suppliers, as well as horse shoeing or farrier services. Although this isn’t a comprehensive list, it gives you an idea what services or products the agencies need. In fact, the federal government is the largest buyer in the world, spending more the $600 billion annually going to private sector businesses on thousands of different products and services.
State governments also represent excellent opportunities for small businesses. The government buys almost every type of product and service, providing opportunities to large and small businesses –including yours!
I’ll also receive calls from the agencies or from a prime contractor who are looking for another company to partner with and offer goods or a service they do not provide. I’ve been very successful at pairing companies up and planting those seeds for those partnerships.
Best advice (particularly to doing federal contracting in Southern NM):
DO Let the Alamogordo and Las Cruces PTAP offices assist you with providing your products and or services to the government.
DON’T Go anywhere else!
Federal contracting can be a great way to grow your small business, especially in rural New Mexico. Let all of us at PTAP help you get started today.
News
5 Most Common Questions About Selling to Government
by Elaine Palin
PTAP Advisor
After more than 30 years of working in information technology, financial services, marketing, government, budgeting and consulting, I’ve asked a lot of questions and have gained a lot of knowledge to help small business. And in the time I’ve been with PTAP, I’ve continued helping small business and entrepreneurs through the government contracting process and answering countless questions about the kind of work that PTAP does. The most common question from a small business owner is, “How do I get a government contract?” And the second usually involves money.
Government contracting can be a good way to grow and, in some rare cases, start a business. But learning what it’s all about and doing lots of legwork will help those diligent entrepreneurs move ahead in the contracting world. Below are some of the most common questions PTAP advisors have encountered and their answers
1. How do I get government contracts?
Answer: Contracting with government entities includes the federal government, state governments, cities, counties, schools, prisons, etc. All of these entities have their own requirements for how to get started. See your PTAP advisor for information and assistance.
2. What can I expect to pay for government contracting assistance?
Answer: First, all NM PTAP services are free of charge. Government entities do not charge you for services either. Should you receive calls or emails from organizations saying they can register you in SAM, or get you government contracts BEWARE: these are for-profit entities that will charge you for the same services we provide at no cost. TIP: If you receive an email and the end of the email does not end with xxxx.gov, it is not a government entity.
3. I am registered in the System for Award Management (SAM); where are my contracts?
Answer: SAM is only the database to register on if you wish to do business with the federal government (including some quasi-government entities such as the national laboratories). SAM is only for registration purposes and to make you eligible for contracting. Registration in SAM, however, does not make your business “contract ready” as there are many more steps required.
Just as in private industry, obtaining government contracts requires marketing materials, market research and planning, and making connections. It is rare that a government agency or entity will contact an unknown business and give them a contract. Government contracting takes patience and persistence and PTAP is here to help.
4. What types of government certifications can I get and how do I obtain them?
Answer: There are several certifications available for businesses to help them “get a leg up in contracting.” PTAP can help you with all of them. Certifications include:
a. For New Mexico state government, your business can register as a preferred vendor and obtain a certification called the “In-State Vendor/Veteran Preference.” This is done through the NM Taxation and Revenue Department and can be found at this website: www.tax.newmexico.gov/Businesses/in-state-veteran-preference-certification.aspx. There is no cost to your business and the certificate gives you a 5-10% preference when bidding on any contract in the state.
b. HUBZone certification - This certification stands for Historically Underutilized Business Zone and mostly refers to rural areas and tribal lands. To qualify for this certification, you first need to check with the HUBZone maps to see if your business is located in a designated HUBZone. Second, a minimum of 35% of your employees must reside in a HUBZone (though it does not have to be the same HUBZone as the business).
c. 8(a) Certification - Refers to a business that is both socially and economically disadvantaged. To qualify, your business must be a minimum of 51% owned by one of the following minorities: Black, Hispanic, Asian Pacific Islander and subcontinent Asian American. American Indians, Native Alaskans and Native Hawaiians also qualify. If you do not fall into one of these categories, you will not qualify.
d. Woman-owned and Economically Disadvantages Woman-owned Small Business certification: This is a self-certification requiring a business to be a minimum of 51% woman owned and the woman-owner must be the highest paid employee, have decision making authority and be in charge of daily operations of the business.
e. Veteran and Service-Disabled Veteran Business certification.
5. When can I apply for these certifications?
Answer: Each certification has its own qualification requirements. Please talk with your PTAP consultant for details.
News
Getting Your Feet Wet in Government Contracting: Look to Your Local Governments
by Karen Medina
PTAP Advisor
When small business owners often think about selling their goods and services in the government arena, federal government often comes to mind. But some business owners may not be aware that their local city, county, college, university and school districts need area small businesses to supply them with maintenance, tires, construction, food supplies and other goods and services, especially if they are located in rural areas.
Obtaining that first contract with your local government is also a good way to get your feet wet before going after that big federal contract, which will require more paperwork, more stringent rules and regulations, and more accountability, whether you’re the prime contractor or subcontractor.
If you’re looking at tapping that first toe into government contracting or at least looking at the possibilities, here are some tips to get you started:
Do Your Homework
If you have an established business and you’re looking to win your first contract with a local or state government, do some research to see what good and services each organization is seeking. The City of Las Cruces Purchasing Section, for example, has a pamphlet on how to do business with the city and a website with a lot of great information. You can also contact each organization’s purchasing office and ask questions.
Resources Are Available to Help You Set Your Cost
One of the biggest questions that arise when submitting a proposal is: How much do I charge? You want to be competitive with your competition but you also want to make enough money to cover your costs and not lose money. If you’re unsure what to charge, contact your tax person or accountant to help give you insights on overall costs. Our sister organization, the New Mexico Small Business Development Center, a free resource for New Mexico entrepreneurs across the state, also can help you in finding those numbers. PTAP was created to help businesses become contract ready but we don’t give advice on determining what cost or price to charge for goods or services.
It’s OK to Knock on Doors
It’s OK to make appointments with purchasing departments in government organizations to introduce yourself and your company. Be aware that if the organization has open solicitations currently advertised and ‘on the street’ for which you have questions, you are not allowed to contact any other employees of the organization outside the purchasing department. You can also inquire about previous bids or requests for proposals (RFP) that have already been awarded because once an award is made, the documents become public information. Remember, too, that bid openings are open to the public. RFP closings, on the other hand, are not.
Don’t Be Afraid to Take that First Step
If you’ve never considered government contracting, you might be missing out on some great opportunities. There could be multi-year contracts available for the goods or services you provide.
PTAP is also available to look over your proposal and walk you through the process. Submitting a responsive proposal does not have to be overwhelming. It can be done.
Don’t forget: sometimes it’s easier to do business locally. So remember when looking to grow your business, don’t overlook your state and local governments.
News
Interim Program Manager Richard Asenap Becomes Program Manager; PTAP Kicks Off Online Marketing Campaign
When we opened our doors nearly six years ago, the New Mexico Procurement Technical Assistance Program (PTAP) had two counselors and an office in Santa Fe and Albuquerque. Now that PTAP has grown to seven offices and covers the entire state, PTAP remains the only no-cost government contracting assistance program across the Land of Enchantment.
Our success in delivering this service depends on our clients’ success, and as your new program manager, we plan on strengthening our delivery of that one-on-one expertise. In 2014, we saw a number of small businesses with an average of five to 10 employees and $5 million to $10 million in annual sales procure some sizable federal contracts. We also helped our 1,100th client last year, a record since we began in 2009.
So far in 2015, we filled a position in Las Cruces with Karen Medina, a Certified Public Procurement Officer and a local and state government contracting expert with 17 years of experience. Karen’s expertise includes city and state government as the City of Las Cruces’ senior buyer and purchasing manager, where she oversaw seven positions, the city’s contracts, goods and services, and a $70 million budget. Prior to the city, Medina spent 13 years at New Mexico State University, with seven years as a buyer in the Purchasing Department. We also moved Elaine Palin, our Santa Fe-based Northern New Mexico advisor, from PTAP’s headquarters at the Santa Fe Community College to SFCC’s new Higher Education Center to better support our clients.
And this month we will officially kick off our three-month Tap Into PTAP online campaign, which will involve greater involvement in social media and online advertising on some of the state’s news websites. The campaign goal is to gain new clients and inform the general public about what we do, reminding folks that government contracting help is just a click away. Tap Into PTAP will be branded with a hash tag and also include tips from our seven advisors and success stories from our clientele.
We invite you to look for this information under the “Latest News” section on our website and share your tips, photos, videos, testimonials and stories on our and your personal Facebook, Twitter and LinkedIn accounts using #TapIntoPTAP. PTAP would not exist without the success—and challenges—of our clients.
