Author: Precision Solutions Editor

28June 2021

Precision Solutions – Benefits of Partnering with an SDVOSB

In the world of government contracting, it’s no secret that registering your business as a disadvantaged or minority owned business enterprise can be the thing that tips the scales of opportunity in your direction. But what if you don’t happen to meet the requirements for such a designation? Or maybe you’re a prime contractor who would love to break into the lucrative arena of doing business with the federal government. And when you consider that the federal government spends billions of dollars every year and buys more goods and services than any entity around the globe – why wouldn’t you?

The good news is that you can still take advantage of the government’s commitment to distributing federal contracts to minority owned or disadvantaged businesses. How? In a word – teamwork!

But before we talk about how, we should explore the way government contracting works in general.

Who is this SAM?

If you’re new to government contracting, you might be wondering who the heck SAM is. Well, SAM is not a person but a system. System for Award Management to be precise. All businesses who wish to do business with the federal government must first register their business in the government’s procurement database – SAM. SAM is the place where RFIs and RFPs for government contracts get posted for all the world to see. And to bid on. So, just sign up and start rolling in those federal contracts, right? Wrong. The government has a broader agenda than just procuring goods and services. And part of that agenda is to support the efforts of ALL business enterprises. Or more specifically, to encourage and support the growth of minority owned and/or disadvantaged businesses.

How does it work?

The federal government has established guidelines for distributing contracts to disadvantaged or minority businesses. Each year, all government agencies sourcing goods or services are required to meet certain mandatory minimums as it relates to awarding contracts to businesses with minority or disadvantaged designations. What are those designations you ask? Let’s break it down –

  • SBC (small business certification – 23% of federal contracts awarded to certified small businesses.)
  • WOSB (woman owned small business – 5% of federal contracts awarded to certified WOSBs.)
  • VOSB/SDVOSB (veteran/service-disabled veteran owned small business–3% of federal contracts)
  • 8(a) MOSB (minority owned small business – 5% of federal contracts) Hubzone.

The government takes things a step further by establishing set-a-side and sole sourcing contracts specifically for each designation. In these cases, bidding as the prime contractor is typically limited to businesses possessing that designation. There are also other set-aside requirements for small businesses that are intended to minimize competition. One such example is that any contract under $150K must be set aside exclusively for small businesses. Or if a contract exceeds the limit, it will go to a small business if there are two or more qualified, competing small businesses with similar market price, quality and delivery, which is known as the “Rule of Two.”

It’s pretty clear that having a designation that offers some preferential treatment can open the door to a lot more opportunities in the world of federal contracting. But back to the benefits of partnering with one particular type of business entity – the SDVOSB (or service-disabled veteran-owned small business.) It’s all about the team. If you’re bidding on a contract as a prime contractor, including a SDVOSB on your team could potentially increase your chances of successful award. After all, the agencies are required to meet the 3% quota for the year, so having an SDVOSB on your team could be the reason you are selected.

But that’s not all –

You can also imagine that there are certain government agencies who would just naturally prefer companies with SDVOSB status. For example – the Veteran’s Administration. In 2020, the VA awarded over $2.1 billion in government contracts. And while it may not always be possible for the VA to award the contract to an SDVOSB, for larger companies bidding as a prime – you could certainly be viewed more favorably if you’ve partnered with an SDVOSB.

There’s also the simple truth that the DoD tends to favor SDVOSB businesses because they have not only offered the ultimate sacrifice by serving their country, but they also understand the needs of the military far better than a non-veteran owned business.

Tax Incentives

If all of the above isn’t enough incentive to consider partnering with an SDVOSB on federal contract opportunities, there’s also a tax incentive to consider. The government offers corporate tax incentives to reduce tax liabilities for companies partnering with SDVOSBs on federal contracts.

No matter what products or services your business – is in the business of selling, competing in today’s hyper-competitive marketplace – is no joke. So, give yourself an edge over the competition and build your A-team with Precision Solutions. With a proven track record of success getting the right equipment into the right hands – at the right time, we’re committed to delivering innovative, cost-effective solutions to some of the government’s most challenging supply chain and procurement issues. Contact Us today to learn more.

1November 2020

Precision Solutions – Supply Chain Dynamics

If you’re among the many businesses relying on supply chain logistics to bring your product or products to the people, you’ve probably noticed the significant change to supply chain dynamics over the past year. Faced with unpredictable consumer behavior, political chaos and a life-changing pandemic, companies around the world have been forced to navigate an increasingly volatile supply chain in order to compete in today’s global market. Yes, it’s safe to say that the days of a predictable, rigid supply chain appear to be in our rearview mirror. And with the constant evolution of all of the above, it doesn’t seem likely to become less volatile in the near future. 

Rigid Supply Chain Management

The traditional approach to supply chain management (SCM) featured an on-premises approach, in which sellers/suppliers manufactured products they believed consumers would buy and distributed those products through channel partners, who then proceeded to sell the products to consumers. The consumer purchased the products through a single entity, such as a retail outlet or via a sales contact at the manufacturer. This integrated approach encompasses all the elements of the supply chain process – designing, sourcing, manufacturing and delivery. And although, it might seem as though rigid SCM would provide more control of the supply chain to a business. However, constantly changing consumer expectations, global logistics challenges, advances in technology and a number of other factors render a fixed SCM model somewhat obsolete. The need for a dynamic supply chain model that brings more flexibility and more importantly – adaptability, allows the company to react to changes quickly with multi-channel fulfillment, increased visibility, and the ability to meet fluctuations in demand. 

Dynamic Supply Chain

A dynamic supply chain model favors an approach that views a supply chain as an adaptable ecosystem of processes, people, capital assets, technology and data. Focusing on flexibility where it matters and driving an agile operational methodology enables the company to react to challenges and also take advantage of opportunities driven by evolving consumer trends. And in unpredictable markets, dynamic supply chains can meet the specific needs of each customer channel. For example: If a product is highly sensitive to media trends, creating a highly adaptable manufacturing and distribution network for the beginning of the product lifecycle and a more cost-effective method for the end of the lifecycle might make sense. Or if a customer segment is cost sensitive, the supply chain for that product must effectively root out every last bit of waste and reduce excess costs.

How to Get There

It starts by evaluating, defining and segmenting the supply chains within your organization based on product, customer and location. From there, you should ask yourself a series of questions – 

  1. Are your production and delivery processes and capabilities aligned with your product design and development processes? 
  2. Do you have a system that transforms key insights into actionable intelligence? Where does technology fit in to your supply chain equation? 
  3. How does your company respond to a rapid change in demand? What processes need to be put in place to meet those demands?
  4. What operational strategies need to be adjusted to allow adaptability? Identify impediments to the process and implement course corrections. 
  5. Develop a roadmap to a dynamic supply chain. Building a successful, dynamic supply chain isn’t going to happen overnight. Establishing one without risks to your business, means establishing a step by step plan that builds upon existing capabilities, evaluates costs and identifies tangible results. 

Ultimately, a dynamic supply chain model should allow a company to develop and sustain multiple supply chains with operational agility that enables a rapid response to market conditions, competitive threats, and opportunities. As a result, unpredictability will no longer be a hurdle to your business success. 

1October 2020

Precision Solutions – How government outsourcing improves the acquisition process

Keeping the wheels turning on the massive machine that is the federal government, is no easy task – in the best of times. Throw in a pandemic, an economic recession and a chaotic geo-political climate and the process of managing and acquiring the resources the government needs to function, can be even more challenging to overcome. To meet those challenges, outsourcing products and services has become more and more important to the government procurement process. But there are also some key questions to consider for any government outsourcing venture to be successful.

  • Is the service or product being outsourced intrinsic to a core level of government that would render outsourcing inappropriate?
  • Does a competitive market for the product or service exist that includes a number of high-quality suppliers?
  • Can the potential value of the product or service being offered by the supplier be easily measured and quantified?
  • Are there robust quality control standards and mutually established performance metrics?

Not that there aren’t hurdles to the process. Burdensome regulations, the tendency to award contracts based solely on price but with the expectation of the same level of quality, bid protests based on flawed solicitations – are all impediments that can create difficult challenges for both suppliers and contract managers. However, if the conditions of the proposed outsourcing venture effectively answer the above questions, the likelihood for success is much higher and can streamline the acquisition process for government agencies at the federal, state and local level. Not to mention the numerous tangible benefits associated with government outsourcing.

Benefits to Government Outsourcing

  • A competitive market of suppliers can offer significant cost savings.
  • Reduces the need for capital expenditures. For example – an agency in need of IT services can avoid the long-term expenses associated with hiring and training full time employees to perform core IT functions.
  • Infrastructure needs can be met more quickly. With a plethora of options for competing suppliers, critical projects and essential supplies can be procured faster and more efficiently.
  • Facilitates access to advanced technology, products and services that might otherwise be unavailable within the government itself.
  • Ability to create economic stimulus in minority sectors through set-aside contracts that favor disadvantaged businesses.
  • Reduces risk – outsourcing transfers the risk in large part to the provider, who are typically more capable of determining how to avoid pitfalls and risks in their area of expertise.

At the end of the day, government outsourcing makes it possible to get the right equipment, product or service into the right hands as efficiently as possible. If you’re looking for solutions to your procurement needs, contact the professionals at Precision Solutions. Our core mission is to deliver prompt, cost-effective solutions to some of the government’s most challenging supply chain issues. Contact us today for more information.