b2 g master for 8 11 10
DESCRIPTION
B2G Seminar Slides for Get in the Game. Sponsored by Whittaker-Cooper Financial Group. Presented by Jack Quinn Solutions, LLC and Space Coast EntrepreneursTRANSCRIPT
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
1
Our Sponsor
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Florida Business Bank
Joseph SofiaVice President
Commercial Lending
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Loans
• Revolving Line of Credit (LOC)• Term Loans
– Equipment Loans– Real Estate Acquisition– Permanent Working Capital– Business Acquisition
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Lines of Credit
• Monitored– Monthly Borrowing Base
• Listing of A/R Aging• Inventory• Cash balances• Loan Balance
– Advance Rate on A/R and Inventory• A/R ranges between 80% to 30% based on Receivables that are
less than 60 days past due.• Inventory can be advanced as high as 50%, but is often not
advanced
• Non-Monitored
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Term Loan• Equipment Loan
– 3-5 year loan– Equipment that can be financed by a vendor (i.e.. John Deere) is typically difficult for a bank to finance.– A company needs historical cash flow of at least two full years.
• Real Estate Acquisition– 20-30% down payment– 15-20 year amortization– 5 year term (balloon payment)
• Permanent Working Capital– 3-5 year loan (fully amortizing)– Need payment history– Very difficult to get approved
• Business Acquisition– 3-5 year loan– Need payment history– Difficult to get approved– SBA has some options, but that route has become difficult because it still requires adhering to a bank
approval process.
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Ideal Company/Situation• Liquidity
– $50,000-$300,000 in the bank– 20-200% of the loan amount requested
• History– Been around for 5-10 years– Paid back debt
• Ownership– Has been in the industry for 10-20 years– Strong personal credit– Liquidity of $50,000 +
• Solid contracts– Clients pay on time– A/R and A/P is well managed– Limited discrepancy between payments and bills
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
What if you are not IDEAL?
• Overcompensate in one area– Most likely you have strong liquidity or a strong
contract, but not both.• Review other options:
– Factoring– Equity– Loan from Client
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
What does a bank need?• From the Business
– Most recent three years federal tax returns and/or accountant prepared financial statements
– Year to date financial statements (along with prior year comparable period)• Balance Sheet• Income Statement• Statement of Cash Flow
– Aging Schedule of Receivables and Payables (dated concurrently with interim balance sheet)
– Schedule of Corporate Debt– Articles of Incorporation, operating or Partnership Agreement– For incorporated entities
• Copy of by-laws, minutes or other documentation identifying officers of the company
– For start-up Entities• Business Plan• Draft or signed purchase agreement
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
What does a bank need?
• Owners Information– Most recent three years federal tax returns for all
owners/guarantors– Personal Financial Statement for all
owners/guarantors• General
– Signed application– Any other information that may help us understand
your business (i.e. brochures, web site information, industry articles, etc)
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Next Steps
• Talk to an Accountant• Talk to a Lawyer• Then, talk to a Banker!
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
11
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Federal Contracting:Plain & Simple
I. Wayne Cooper, CPARichard D. Sutter, CPA
Whittaker Cooper Financial GroupAugust 11, 2010
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Whittaker Cooper Financial GroupFederal Government Contracting Services
• Offering a variety of services – most common:– Accounting System Compliance– DCAA Audit Assistance
• Provides specialized expertise to help preserve your funding and livelihood
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Traditional vs. Federal Accounting
Traditional accounting• Serves commercial businesses• Serves a part of your business as a Federal
contractor
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Traditional vs. Federal Accounting
Federal accounting• Federal contractors subject to the Federal
Acquisition Regulation (FAR)– FAR dictates all the regulations/requirements of
the accounting system– IRS has the tax code; Federal contracting has the
FAR• Specific expertise needed to ensure
compliance with these rules/regulations
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Traditional vs. Federal Accounting
Dual market business• How to function when serving both
commercial and Federal clients• One accounting system to serve both• Government trumps commercial and will
dictate the accounting system
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Comparison of Federal and Commercial Contracting
Federal Contracting• Political influences• Socioeconomic concerns• Public accountability• Size and complexity of
contracts
Commercial Contracting• Less regulated• No set process• No requirement to solicit
multiple vendors• Longer relationships with
suppliers• Different elements in
selecting sources
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Federal Contracts
Fixed Price• Sealed Bid or Negotiated• Contractor bears the most responsibility/risks for
costs and profit
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Federal Contracts
Cost Reimbursement• Cost contract – contractor receives no fee
• Cost sharing – contractor received no fees and is reimbursed only for an agreed-upon portion of its allowable costs
• Cost Plus Incentive Fee (CPIF) – provides for a negotiated fee to be adjusted based on the relationship of total allowable costs to total target costs
• Cost Plus Award Fee (CPAF) – provides for a payment of a fee based on a judgmental evaluation by the government sufficient to provide motivation for excellence in performance
• Cost Plus Fixed Fee (CPFF) – provides for payment to the contractor of a fee based on pre-negotiated factors i.e. quality of performance
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Fixed-Price vs. Cost ReimbursementFixed Price• Minimum risk & burden on
government
• Defined requirements
• Risk of performance on contractor
• Contractor paid upon acceptance of tendered items/services
Cost Reimbursement• Maximum risk & burden on
government
• Unknown requirements
• Risk of performance on government
• Contractorpaid for bestefforts
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Factors to Consider in Selecting Contract Type
• Risk factors• Contact administration factors• Type and complexity of the requirement• Urgency of the requirement• Period of performance• Extent of subcontracting
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Categories of Contracts
• Products/supplies• Services• Major system acquisition• Research & development• Construction & architect-engineer• Information technology• Utility services
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Federal Contract Cost &Accounting Regulations
When do Federal Acquisition Regulations (FAR) cost regulations apply?
• Fixed-price contracts: – When pricing contracts, modifications or
subcontracts– There is cost analysis
• Cost-reimbursement contracts:– According to the cost-reimbursement contract
clauses
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Simplified Acquisition Procedures
Simplified Acquisition Procedures (SAP) applies to:• Purchases of supplies over $3,000 but less than $100,000
• Purchases of services over $2,500 but less than $100,000
• Construction over $2,000 but less than $100,000
• Commercial items purchases over $3,000 but less than $5,500,000
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Simplified Acquisition Procedures
The purpose of the Simplified Acquisition Procedures• Reduces administrative costs• Improves opportunities for small businesses• Promotes efficiency and economy• Avoids unnecessary administrative burdens
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Accounting System Compliance
• Often the first thing contractors need help with upon securing an award
• Basis for maintaining your contract and avoiding possible suspension, cancellation or pay back of your award dollars
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Accounting System Software
You have options ranging from the following:• A high end, industry specific package such as Deltek
which can do most everything at a price.• A more budget friendly system such as QuickBooks or
Peachtree Accounting– Exports into MS Excel to meet presentation and calculation
needs– Add-ons and other software packages are available to assist
with the preparation of the necessary reports and cost pools using data exported from QuickBooks and Peachtree Accounting
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Chart of Accounts
• Core of the company’s accounting system• Creates a formatted structure for the company• First step in segregating costs into proper cost
pools
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Cost Pools
• Direct costs• Indirect costs• Unallowable costs
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Cost Pools
Direct costs• Any cost that can be identified with a final cost
objective (i.e. a contract/grant/job/task)• Examples include labor, subcontractors,
consultants and materials
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Cost Pools
Indirect costs• Any cost that cannot be identified with one final
cost objective but benefits multiple cost objectives• Allows for recovery of operation costs not
associated with a specific job• Further segregated into these general categories
– Fringe benefits (health insurance)– Overhead (rent)– General & Administrative (professional fees)
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Types of Cost Pools
Unallowable costs• Any cost that cannot be included in prices, cost
reimbursements or settlements under a Federal contract to which it is allocable
• Any cost specifically stated to be unallowable• Contractors must properly segregate
unallowable costs from allowable costs in the accounting system
• Contractors may be subject to penalties
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Timekeeping
Timekeeping system that identifies labor by cost objective and allocates this time properly• Many contractor’s systems falter here• All employees’ time, whether direct or
indirect, must be accounted for daily by the work that is performed.
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Timekeeping
• Proper procedures must be maintained for time sheets or entering time
• Each employee is responsible for preparing and correcting their own time sheet
• Adequate management overview must be provided• A written policy must be maintained for employees and
management to follow• Traceability or an audit trail of changes must be
maintained• The system should be able to detect errors and required
changes
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Timekeeping
Properly completed time sheets must be:• Filled out daily and submitted weekly• Signed and dated by employee and reviewing
supervisor• Done in ink or government approved timekeeping
system• Every employee must comply• The work week is 40 hours• The work year consists of
2080 hours
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Sam
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ents ASSETS 2008 2007
CURRENT ASSETSCASH AND CASH EQUILVALENTS 1,300$ 477,889$ ACCOUNTS RECEIVABLES- TRADE 2,635,982 1,900,474LOANS RECEIVABLE- OFFICERS 50,000 0PREPAID EXPENSES 29,851 17,466
2,717,133 2,395,829
PROPERTY AND EQUIPMENT- Net of accumulated depreciation 2,337,272 2,326,733
OTHER ASSETS 43,794 46,991
5,098,199$ 4,769,553$
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIESCURRENT PORTION OF LONG-TERM DEBT 119,160$ 86,423$ NOTES PAYABLE 400,000 810,000ACCOUNTS PAYABLE- TRADE 193,475 19,848ACCRUED EXPENSES 604,103 472,743
1,316,738 1,389,014LONG-TERM DEBT 1,880,679 1,919,453
3,197,417 3,308,467
STOCKHOLDERS' EQUITYCOMMON STOCK, $1 par value, 1,000 shares authorized and outstanding 1,000 1,000RETAINED EARNINGS 1,899,782 1,460,086
1,900,782 1,461,086
5,098,199$ 4,769,553$
PROOF 0 0
See accountant's report and accompanying notesto the financial statements.
GOVERNMENT CONTRACTOR, INC.BALANCE SHEET
DECEMBER 31, 2007 AND 2008
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
INCREASE
2008 (DECREASE) 2007
CONTRACT BILLINGS 11,122,568$ 1,387,725 9,734,843$
EXPENSES (including provision for depreciation and amortization of $223,896 [2008] and $217,763 [2007])
DIRECT JOB COSTS 5,955,915 689,739 5,266,176OVERHEAD EXPENSES 2,985,056 253,920 2,731,136GENERAL AND ADMINISTRATIVE EXPENSES 1,411,996 211,417 1,200,579NON-ALLOCABLE ITEMS 51,660 (7,891) 59,551INTEREST EXPENSE 216,819 (12,749) 229,568
10,621,446 1,134,436 9,487,010
NET INCOME 501,122 253,289 247,833
RETAINED EARNINGS- BEGINNING 1,460,086 1,479,238
S DISTRIBUTIONS PAID (61,426) (266,985)
RETAINED EARNINGS- ENDING 1,899,782$ 1,460,086$
See accountant's report and accompanying notesto the financial statements.
GOVERNMENT CONTRACTOR, INC.
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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INCREASE
2008 (DECREASE) 2007
PAYROLL 4,949,503$ 478,002 4,471,501$ TRAVEL AND SUBSISTENCE 624,154 38,685 585,469HOLA/COLA 72,043 4,994 67,049OTHER DIRECT COSTS 310,215 168,058 142,157
5,955,915$ 689,739 5,266,176$
See accountant's report on supplementary information and accompanying notes to the financial statements.
GOVERNMENT CONTRACTOR, INC.SCHEDULE OF DIRECT JOB COSTS
FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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ents INCREASE
2008 (DECREASE) 2007
AMORTIZATION 24,787$ 7,306 17,481$ CAR EXPENSES 11,922 (11,078) 23,000DEPRECIATION 176,978 (9,208) 186,186DUES AND SUBCRIPTIONS 12,320 3,262 9,058EMPLOYEE ASSISTANCE PROGRAM 2,089 453 1,636FRINGE BENEFITS APPLIED TO OVERHEAD 1,251,477 71,994 1,179,483GOVERNMENT COMPLIANCE 2,340 124 2,216MAINTENANCE SERVICE 39,144 7,720 31,424OFFICE EXPENSES 37,538 37,538 0PAYROLL; ACCOUNTING 438 (23,833) 24,271 ADMINISTRATIVE 304,976 40,507 264,469 GOVERNMENT COMPLIANCE 3,298 (824) 4,122 MANAGEMENT 377,218 24,638 352,580 TRAINING 14,117 3,820 10,297 SECURITY 60,331 4,624 55,707 RELOCATION 0 (1,147) 1,147POSTAGE 10,137 (1,768) 11,905PROFESSIONAL FEES 5,808 3,578 2,230PROFESSIONAL TRAINING 31,994 15,663 16,331PROPERTY MANAGEMENT 99,629 (5,095) 104,724RECRUITING 5,551 2,782 2,769RELOCATION 8,666 (5,173) 13,839RENT; OFFICE 237,895 39,614 198,281 OTHER 24,679 523 24,156SERVICES- TEMPORARY 1,102 396 706SUPPLIES; COMPUTER 44,257 44,257 0 OFFICE 35,550 12,615 22,935 OTHER 25,181 (33,516) 58,697TELEPHONE 97,048 (988) 98,036TRAVEL; OVERHEAD 54,473 14,942 39,531 LOCAL 7,914 7,914 0UTILITIES 4,977 4,977 0OVERHEAD APPLIED TO BID & PROPOSAL COSTS (28,778) (2,697) (26,081)
2,985,056$ 253,920 2,731,136$
Overhead rate 60.31% 61.08%
See accountant's report on supplementary information and accompanying notes to the financial statements.
FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
GOVERNMENT CONTRACTOR, INC.SCHEDULE OVERHEAD EXPENSES
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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ents INCREASE
2008 (DECREASE) 2007
AMORTIZATION 2,206$ 1,214 992$ BANK CHARGES 3,343 (1,538) 4,881BID AND PROPSAL EXPENSES 82,111 11,337 70,774BUSINESS MEALS 2,619 1,367 1,252CAR EXPENSES 1,451 146 1,305DEPRECIATION 17,389 6,821 10,568EMPLOYEE MORALE 4,523 (4,734) 9,257FRINGE BENEFITS APPLIED TO G&A 616,399 110,906 505,493INSUARNCE- GENERAL 43,654 7,622 36,032MANAGEMENT BONUSES 65,000 11,875 53,125PAYROLL; ACCOUNTING 46,728 28,270 18,458 ADMINISTRATIVE 82,512 32,689 49,823 MANAGEMENT 196,261 14,157 182,104 DIRECT SELLING 45,130 (881) 46,011PAYROLL SERVICES 8,203 490 7,713PRINTING 6,332 1,632 4,700PROFESSIONAL FEES 17,976 2,220 15,756PROFESSIONAL TRAINING 1,818 891 927PROPERTY MANAGEMENT 12,124 6,180 5,944RENT; OFFICE 0 (11,254) 11,254 OTHER 1,931 560 1,371SALES BONUSES 37,601 2,106 35,495SUPPLIES; OFFICE 1,899 597 1,302 OTHER 1,565 (1,767) 3,332TAXES AND LICENSES 80,138 9,228 70,910TAXES- STATE INCOME (5,912) (17,231) 11,319TELEPHONE 6,526 962 5,564TRAVEL; DIRECT SELLING 10,600 (1,835) 12,435 GENERAL AND ADMINISTRATIVE 21,869 (613) 22,482
1,411,996$ 211,417 1,200,579$
G&A rate 23.71% 22.80%
See accountant's report on supplementary information and accompanying notes to the financial statements.
GOVERNMENT CONTRACTOR, INC.SCHEDULE OF GENERAL AND ADMINISTRATIVE
FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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INCREASE
2008 (DECREASE) 2007
INSURANCE- OFFICERS' LIFE 38,119$ (10,614) 48,733$ SBA LOAN FEES 4,500 375 4,125MISCELLANEOUS 7,957 3,383 4,574DEPRECIATION 839 - 839 AMORTIZATION 1,697 - 1,697CONTRIBUTIONS 354 (54) 408INTEREST INCOME (1,338) (513) (825)GAIN ON DISPOSAL OF FIXED ASSETS (468) (468) 0
51,660$ (7,891) 59,551$
GOVERNMENT CONTRACTOR, INC.SCHEDULE OF NON-ALLOCABLE ITEMS
FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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INCREASE
2008 (DECREASE) 2007
EMPLOYEE BENEFITSDEFERRED SAVINGS PLAN 191,738$ 40,130 151,608$ BONUSES 83,024 6,549 76,475DEFERRED SAVINGS PLAN SERVICE COST 4,950 1,492 3,458INSURANCE- GROUP 279,849 13,388 266,461TAXES- PAYROLL 539,720 50,075 489,645ADMINISTRATIVE LEAVE 14,588 9,365 5,223VACATION, SICK & HOLIDAY PAY 754,007 61,901 692,106
1,867,876 182,900 1,684,976
FRINGE BENEFITS APPLIED TO:OVERHEAD (1,251,477) (71,994) (1,179,483)GENERAL AND ADMINISTRATIVE (616,399) (110,906) (505,493)
-$ - -$
FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
GOVERNMENT CONTRACTOR, INC.SCHEDULE OF FRINGE BENEFITS
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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INCREASE
2008 (DECREASE) 2007
DIRECT LABOR 38,676$ (543) 39,219$ OVERHEAD EXPENSES APPLIED TO BID AND PROPOSAL 28,778 2,697 26,081OTHER DIRECT COSTS 14,657 9,183 5,474
82,111 11,337 70,774
BID AND PROPOSAL EXPENSES TRANSFERRED TO G&A (82,111) (11,337) (70,774)
-$ - -$
GOVERNMENT CONTRACTOR, INC.SCHEDULE OF BID AND PROPOSAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2007 AND 2008
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Summary
• FAR dictates everything in the Federal contracting world
• Government Compliant Accounting System:– Critical– Key to maximizing cost recovery– Helps you bid competitively
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Summary
• Your investment in the properexpertise and accounting systemwill benefit your company for yearsto come
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Questions?
Whittaker Cooper Financial Group1692 West Hibiscus Boulevard
Melbourne, Florida 32901
(321) 723-3352
- and -
8085 Spyglass Hill Road
Viera, Florida 32940
www.whittaker-cooper.com
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Thank you!
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
Disclaimer:
U.S. Treasury Department Circular 230 Disclosure: This presentation is not intended or written to be used, and cannot be used, by the taxpayer for the purpose of avoiding penalties that the Internal Revenue Service may impose on the taxpayer.
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
50
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
51
Get in the Game
B2G Market for Small Business
Presented byDr. Randall M. Mauldin
USMC (ret), CPSM®, PMP®
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
52
Our Sponsor
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
53
Our TeamBusiness helping Business
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
54
Agenda
• Provide information about the B2G market• Tell you how to register your business for B2G
market• Discuss options for your business to learn
about and become successful in the B2G market
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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Presidential Memorandum April 26, 2010
Interagency Task Force on Federal Contracting Opportunities for Small Businesses
• Tasked to …– Develop Innovative Strategies– Remove Barriers– Expand Outreach– Establish policy… to help small business get in the game
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
56
Federal Government Purchases
• Over $500 billion worth of goods and services each year, from office supplies to aircraft carriers
• Government agencies fill at least 23% of all purchased with small businesses
• Over 30% are small business set-aside contracts– only small businesses are allowed to compete.
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
57
Federal Market
• Government spends every year– Good times and bad
• Government pays its bills within 30 days• Government purchasing process is transparent• Federal opportunities are available to all
businesses in the United States– Business can sell to federal agencies in any state
• Prime Contractors have small business goals
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
58
What is purchased?
Information from USASpending.gov
$0.00
$20,000,000,000.00
$40,000,000,000.00
$60,000,000,000.00
$80,000,000,000.00
$100,000,000,000.00
$120,000,000,000.00
$140,000,000,000.00
$160,000,000,000.00
$180,000,000,000.00
Chart Title
Total Dollars
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
59
Who Spends in the Federal Market?
Total Dollars Small Business Dollars$0.00
$50,000,000,000.00
$100,000,000,000.00
$150,000,000,000.00
$200,000,000,000.00
$250,000,000,000.00
$300,000,000,000.00
$350,000,000,000.00
$400,000,000,000.00
DEPARTMENT OF DEFENSE
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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Who Spends in the Federal Market?
ENERGY HEALTH AND HUMAN SERVICES
NASA GENERAL SERVICES ADMINISTRATION
VETERANS AFFAIRS$0.00
$5,000,000,000.00
$10,000,000,000.00
$15,000,000,000.00
$20,000,000,000.00
$25,000,000,000.00
$30,000,000,000.00
$35,000,000,000.00 Total Dollars
Small Business Dollars
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Where do we Spend?
CALIFORNIA
VIRGINIATE
XAS
MARYLAND
DISTRICT O
F COLU
MBIA
PENNSY
LVANIA
FLORIDA
MASSACHUSE
TTS
ARIZONA
MISSOURI
$0.00
$10,000,000,000.00
$20,000,000,000.00
$30,000,000,000.00
$40,000,000,000.00
$50,000,000,000.00
$60,000,000,000.00 Total Dollars Small Business Dollars
1692 West Hibiscus BoulevardMelbourne, Florida 32901
Phone: 321.723.3352Copyright © 2010 Whittaker-Cooper
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Top Vendors in the Federal Market?
Information from Federal Procurement Data System
$0.00
$5,000,000,000.00
$10,000,000,000.00
$15,000,000,000.00
$20,000,000,000.00
$25,000,000,000.00
$30,000,000,000.00
Total Dollars% Total Dollars
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Small Business Spending
UNITED STATES (US)$0.00
$20,000,000,000.00
$40,000,000,000.00
$60,000,000,000.00
$80,000,000,000.00
$100,000,000,000.00
$120,000,000,000.00
Chart Title
Small Business
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Small Business in the Federal Market
Small
Business
Small
Disadva
ntaged
Business
Women
Owned
Small
Business
Hub Zone S
mall Busin
ess
Veteran
Owned
Small
Business
Servi
ce Disa
bled Vete
ran O
wned Sm
all Busin
ess
8(a) Fi
rm
$0.00
$20,000,000,000.00
$40,000,000,000.00
$60,000,000,000.00
$80,000,000,000.00
$100,000,000,000.00
$120,000,000,000.00
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Small Business Contracting Goals
• Small business contracting goals established by law for Federal executive agencies: – 23 % of prime contracts for small businesses; – 5 % of prime and subcontracts for women-owned
small businesses; – 3 % of prime contracts for HUB Zone small
businesses; – 3 % of prime and subcontracts for service-disabled
veteran-owned small businesses.
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SMALL
BUSINES
S SET
ASIDE -
TOTA
L
8(A) S
OLE SO
URCE
8A COMPETED
HUBZONE S
ET-A
SIDE
SMALL
BUSINES
S SET
ASIDE -
PARTIAL
SERVICE D
ISABLED
VETER
AN OW
NED SM
ALL BUSIN
ESS S
ET-A
SIDE
SDVOSB
SOLE
SOURCE
RESER
VED FO
R SMALL
BUSINES
S$0.00
$5,000,000,000.00
$10,000,000,000.00
$15,000,000,000.00
$20,000,000,000.00
$25,000,000,000.00
Small Business Set Asides
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When does the government spend?
Information from Federal Procurement Data System
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Why Small Business Should Sell to the Federal Market
Need for small business$3,000 to $100,000 must be
reserved for certified small businesses
(Small Business MUST RESPOND)
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Where is the opportunity in the Federal Market?
Procurement Methods
• Micro-purchases - < $3000• Simplified Acquisition Process
– $3000 to $100,000– By law should be set aside for
small business, if small business responds
• Sealed Bidding – compete on price
• Contract Negotiations – > $100,000
• Consolidated Purchasing – GSA Schedule
Small Business Strategy
1. Educate small business community about B2G market
2. Ensure all businesses are registered in Central Contractor Registry
3. Provide strategic guidance about how small business can leverage the rules to participate in the B2G Market
4. Encourage large businesses to support small business with mentorship, supply chain access, financial support
5. Develop network for teaming arrangements
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How Do I Get Involved?
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Develop/Update Business for Government Opportunities
• Evaluate your business– Products and services– Marketing and operational plans– Competition– SWOT Analysis
• B2G goals• Available resources
– Financing– Materials
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Get a D-U-N-S Number
• Required• Business identification number• FREE
– Contact Dun & Bradstreet at 866-705-5711– http://fedgov.dnb.com/webform.
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Classify your product or service
• North American Industry Classification System(NAICS)
– Used to categorize products and services. – Find your NAICS code:
http://www.census.gov/eos/www/naics/
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Identify National Stock Numbers (NSNs) for all items you sell
• Make sure all your products and services are identified with an NSN designation
• Contact the Defense Logistics Information Service at 877-352-2255 to obtain NSNs.
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Register in the Centralized Contractor Registration (CCR) system
• Primary source for government agencies to learn about prospective vendors
• Search based on each vendor’s abilities, size, ownership and other parameters
• Must be registered in CCR to compete for a contract from any federal civilian or military agency
• THE source of information
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Information needed for CCR Registration
1. Taxpayer Identification Number2. D-U-N-S Number3. NAICS Code4. Bank account5. Capability narrative (Elevator Pitch)6. Key words that apply to your goods and services (250-word
limit)7. Past performance summary
– Individual experience can be used as past performance– Unknown Confidence vs. No Confidence
8. Web site URL - Have a simple website for government marketing
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Obtain a CAGE Code
• Identifies companies wishing to do business with the federal government
• CAGE Code automatically assigned once you complete the CCR process
• To request a Commercial and Government Entity (CAGE) Code, download the form at http://www.forms.gov/bgfPortal/docDetails.do?dId=11327.
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Online Representations and Certifications Application(ORCA)
• ORCA is a FAR mandated web-based system • Government by collecting vendor representations and
certifications of business information that is required by law for contract award.
• Streamlines the process• Provides the Contracting Officer with Section K of the
Proposal…• ORCA use by vendors is mandated by FAR 52.204-8
– “The offeror has completed the annual representations and certifications electronically via the …
Online Representations and Certifications Application (ORCA) website at https://orca.bpn.gov”
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Determine if your business qualifies for Small Business Certification
• The federal government sometimes gives preference to certain businesses: – Socially and economically disadvantaged– Businesses located in a HUB Zone or those with at least
35 percent of employees in a historically underutilized business zone.
– Must apply with SBA for 8a category and HUB zone designation (sole-source and 10% price advantage)
• Visit http://www.sba.gov/gcbd• Opportunity, not entitlement
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HUB Zones
Sole-Source Set Asides and 10% price advantage on competitive bids
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Familiarize Legal Procedures
• Federal Acquisition Regulations (FAR) at http://www.arnet.gov/far/.
• Primary regulation that all federal agencies follow when purchasing goods and services.
• Must read part 19 (about small businesses programs)
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Check out the procurement forecasts
• Annual Procurement Forecast• Maintained by its Office of Small and
Disadvantaged Business Utilization (OSDBU) • Agencies required to post actualized forecasts
on their web site by October 1. • Contact each agency OSDBU at
http://www.firstgov.gov
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Explore subcontracting opportunities
• Market to prime contractors as a subcontractor• The Small Business Administration’s site SUB-
Net (http://web.sba.gov/subnet/search/)• Prime contractors and government, commercial
and educational entities post solicitations or notices there.
• Find Department of Defense subcontracting opportunities and prime contractor contacts at http://www.acq.osd.mil/sadbu/.
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Market your firm to the right contacts
• Select Prospective government customers• Research their requirements • Solve unique challenges• Identify the agency personnel• Provide “leave-behind” materials• Attend small business fairs and networking• Register in prospect’s databases
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Find Opportunities
• Fed Biz Ops (www.fbo.gov)• Register as a vendor• Search using key words for your business• Search using North American Industry
Classification System (NAICS) Codeshttp://www.census.gov/eos/www/naics/
• Set up email alerts for “Sources Sought” or “Presolicitation” RESPOND!!!
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What do I do now???
• At a minimum Register– Free and sets up your business for opportunities
• Research the B2G Market– www.fbo.gov– Set up Alerts based on your NAICS codes
• Use our team to pursue the B2G Market
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Get in the Game – Options
• Get in the Game - B2G Basics – You know the B2G market is right for your business,
but you need help getting started with the basics. – We will do the work for you!!!– Regularly $997 – Until Friday - $647
• Get In The Game - B2G Workshop– 15-17 October 2010– Hilton Cocoa Beach Oceanfront– Regularly $2499 – Early Bird - $1999
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ResourcesBusiness.gov http://www.business.gov/ The official business link to the U.S. Government.
Central Contractor Registration (CCR)http://www.ccr.govThe primary registrant database for the U.S. Government, CCR collects, validates and
disseminates data in support of acquisition missions.
Department of Defense Office of Small Business Programs http://www.acq.osd.mil/sadbu/This organization is committed to maximizing the Department of Defense (DoD) purchases
through small businesses. The site includes the basics of doing business with and marketing to the DoD, as well as details about various small business programs.
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ResourcesD&B D-U-N-S Numberhttp://www.dnb.com/US/duns_update/AD&B® D-U-N-S® Number is a unique nine-digit sequence used to identify and keep track of more than
100 million businesses worldwide. You must have a D-U-N-S Number to do business with the government.
Federal Agency Procurementhttp://acquisition.gov/comp/procurement_forecasts/index.htmlA list of forecasts for agency procurement.
North American Industry Classification System (NAICS)http://www.census.gov/eos/www/naics/NAICS is the standard used by federal statistical agencies in classifying business establishments for the
purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy.
Procurement Technical Assistance Centershttp://www.dla.mil/db/procurem.htmFree assistance for vendors planning to do business in the federal civilian and/or DoD marketplace.
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ResourcesOffice of Federal Procurement Policyhttp://www.whitehouse.gov/omb/procurement_default/This office plays a central role in shaping the policies and practices federal agencies use to acquire the goods
and services they need to carry out their missions.
OPEN Forumhttp://www.OPENForum.com This site offers a wealth of business resources including videos, articles and expert blogs on growing your
business; success stories and advice from business owners; and networking opportunities to publicize your business.
Small Business Administration Office of Government Contracting and Business Developmenthttp://www.sba.gov/aboutsba/sbaprograms/gcbd/index.htmlSBA contracting experts can be an invaluable resource, whether you’re new to government contracting or are
currently doing business with the government and need advice on a particular issue.
Women Impacting Public Policyhttp://www.wipp.org/A bipartisan public policy group that
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Future Events
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MEETING MANAGEMENT: The Art of Making Meetings Work
Location: Melbourne Regional Chamber, 1005 E. Strawbridge Avenue, Melbourne, FL Register Online: www.melbourneregionalchamber.com
Session 1: Thurs., Aug. 19, 20108:00 am - 11:00 am * Effective meeting basics* The Best & Worst of meetings * Holding productive meetings * Meeting preparation * Agendas
Session 2: Thurs., Aug. 26, 201011:00 am-2:00pm * Setting the place* Leading a meeting * Process & Content * Process Tool: (DeBono'Thinking Hats -
Rules of Work - Facilitation Skills) * How to control a meeting
Cost : Pre-paid & SCE Members: (to attend both sessions): 99.00 Non-Member Cost: $119.00 (Price includes materials/handouts and refreshments)
Participate in the Live Webinar: http://dld.bz/artmtg Both Sessions for $69 ($49 for SCE members)
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Table Top Sponsor
•2 Tickets to the Best Business Entrepreneurs Summit•1 Business Table Top Display at the Entrepreneurs Summit•30 day trial membership to Space Coast Entrepreneurs
$100.00 ($211 Value)
www.BestBusinessSummit.com
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Provide your business card to get a copy of this presentationor
Questions???
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Conclusion
• Provide your card for B2G Resources• Beware of Businesses that try to offer easy
solutions– Highly competitive market with fantastic rewards
• Opportunity, not entitlement• Work for and earn government business
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Visit www.b2gsolutions.us
for more information and registration
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