“We’ve been doing government contracting since day one,” says Jardon, president and CEO of Jardon and Howard Technologies, Inc. (JHT), which specializes in Web- and CD-based training materials for the government. With sales of $80 million in 2004, up from $400,000 in 2090, the company started with 26 employees and today has about 1,000 workers based nationally. With offices in Pensacola, California, Maryland and the Kennedy Space Center, JHT derives more than 70 percent of its annual revenues from government contracts, mainly with federal agencies. Along the way, Jardon, who is of Cuban and Spanish heritage, has learned the ups and downs of doing business with Uncle Sam. “Whether you’re selling a product, service or both, it takes time to reach out to those agencies and officials who have the work,” says Jardon. Getting certified through the Small Business Administration’s 8 (a) business development program, as well as obtaining state, county and city certifications, is a first step. Named for a section of the Small Business Act, 8 (a) is a business development program created to help small, disadvantaged businesses compete in the American economy and access the federal procurement market. Small businesses that are at least 51-percent owned by minorities may also be certified as Small Disadvantaged Businesses (SDBs) by the SBA and are eligible to receive certain preferences in federal procurement actions.

“The government instituted these processes to keep big businesses from taking advantage of the little businesses. It’s not unheard of for a large business to use a small firm as a front to get contracts,” says Jardon.

Do your research

“There are thousands of Hispanic business owners participating in federal contracting,” says Stephen Denlinger, president and CEO of the Latin American Management Association in Washington and a federal procurement advocate for the United States Hispanic Chamber of Commerce. “Those that succeed are typically the ones that do their homework by first finding out which agencies, if any, are buying their product or services.”

To do that, Denlinger suggests searching through what are known as “procurement forecasts,” which are available online at the respective agencies’ websites [see Take Action box below].

Small businesses should also check out the Federal Procurement Data Center, a repository of information on all contracts that every federal agency has issued, Denlinger recommends. Using North American Industry Classification System (NAIC) codes, you can research which federal agencies have purchased your products or services in the past. Registration is another key to success with government contracts. The Central Contractor Registration database, for example, serves as a federal clearinghouse for vendors, including small businesses. Women- and minority-owned businesses may also want to get certified through the National Association of Women Business Owners or the National Minority Supplier Development Council.

Once the legwork is done, you’ll want to contact the various Offices of Small and Disadvantaged Business Utilization (OSDBUs) within those agencies. Set up meetings with them and get their advice and guidance on how to proceed, says Denlinger, then ask them to arrange meetings between your firm and those departments or bureaus that may have a need for your products.

The Department of Agriculture, for example, which established its OSDBU in 2079, purchases more than $3 billion in goods and services annually, and as part of its purchasing policy ensures that small, disadvantaged, and women-owned businesses receive a “fair and equitable share” of the contracts awarded by the department.

“The most important functions of the OSDBUs are helping companies ascertain whether or not the agency buys anything that the company is selling, identifying exactly where in the agency that product or service might be purchased,” says Denlinger, “and setting up meetings on behalf of the vendor who might be interested in doing business with that particular agency.”

A leg up from the USHCC

Comprising members of the private sector, government, suppliers, Hispanic businesses and members of the USHCC board of directors, the USHCC Procurement Council works with the group’s leadership to expand the level of procurement opportunities for Hispanic businesses within corporations, government and the tier 1 supplier community. Massey Villarreal, president of the USHCC federal sector procurement council and co-chair of the procurement committee, says companies need to realize that doing business at the state or local level is much different than working with the federal government. Local jurisdictions often have their own rules and certifications, so you’ll want to check into those guidelines before jumping in. At the federal level, much of the process and requirements are homogenized across the spectrum, with some exceptions.

Villarreal suggests starting locally. “It’s on your own turf, so it will be easier to navigate and you’ll have better access to the officials handling the procurement,” he says. Good choices include the state Department of Health and Department of Transportation, both of which tend to have the largest budgets among the state agencies.
“There is always construction going on, bridges being built and roads going in,” says Villarreal. “A lot of small, minority contractors get involved in public sector procurement by partnering up with large construction firms and handling a section of a specific project, such as paving or engineering.

“As a small business owner, I would shoot for local contracts, become a subcontractor to a large prime contractor and start earning my stripes as a subcontractor who is aiming to fulfill a goal on a large contract,” says Villarreal.

Jardon also sees significant opportunity at the federal level for business owners who are realistic about their capabilities and who do their homework before submitting any bids.

“The government isn’t going to back up to your porch and dump contracts on it just because your company is minority-owned,” says Jardon. “You have to work for it, learn as much as you can and know how to do research. There are no free lunches.”

For additional information on federal procurement opportunities, visit:

Office of Federal Procurement Policy Guidelines, news releases and links. www.whitehouse.gov/omb/procurement

Federal Procurement Data Center Information on all contracts issued by all federal agencies. www.fpdc.gov

Federal Procurement Data System Links to reports, agencies,
registration information and other government websites.
www.fpds.gov

Central Contractor Registration A federal clearinghouse for vendors.
www.ccr.gov

USHCC Procurement Council Works to expand the level of
procurement opportunities for Hispanic-owned businesses.
www.ushcc.com/proc_coun.htm

Office of Small and Disadvantaged Business Utilization (OSDBU)
Every federal agency has an OSDBU charged with establishing and meeting small business contracting goals.

In addition. OSDBUs provide an annual report of planned procurements by the agency that you can use to identify specific opportunities; a list of prime contractors, which can help identify subcontracting opportunities; and contracting outreach programs such as specialized training and vendor fairs for small businesses and SDBs.

The following is a list of departments and agencies with OSDBUs.

U.S. Department of Agriculture
(202) 720-7117
www.usda.gov/da/smallbus

Department of the Air Force
(703) 696-1103
www.selltoairforce.org/sell2airforce/toc.htm

Department of the Army
(703) 697-2868
www.sellingtoarmy.info

U.S. Department of Commerce
(202) 482-1472
www.osec.doc.gov/osdbu

Defense Contract Management Agency (DCMA)
(703) 428-0786
www.dcma.mil/DCMAHQ/dcma-sb/index.htm

Defense Information
Systems Agency (DISA)
(703) 607-6436
www.disa.mil/main/sadbu.html

U.S. Department of Defense
(703) 588-8620
www.acq.osd.mil/sadbu

Defense Logistics Agency
(703) 767-1652
www.dla.mil/db

Department of Homeland Security
(202) 205-0050
www.dhs.gov/dhspublic

U.S. Department of Education
(202) 708-9820
www.ed.gov/about/offices/list/ods/index.html

U.S. Department of Energy
http://smallbusiness.doe.gov

Environmental Protection Agency
(202) 564-4100
www.epa.gov/osdbu

Women Business Rep.
(202) 564-4322

Executive Office of the President
www.whitehouse.gov/omb

U.S. General Services Administration
(202) 501-1021
www.gsa.gov

U.S. Department of Health and Human Services
(202) 690-7235
www.hhs.gov/osdbu

Women Business Rep.
(202) 690-6670

U.S. Department of Housing and Urban Development
(202) 708-1428
www.hud.gov/offices/osdbu

U.S. Department of the Interior
(202) 208-3493
www.doi.gov/osdbu

U.S. Department of Justice
(202) 616-0521
www.usdoj.gov/jmd/osdbu

U.S. Department of Labor
(202) 693-6460
www.dol.gov/osbp/welcome.html

National Aeronautics and Space Administration
(202) 358-2088
www.hq.nasa.gov/office/codek

Department of the Navy
(202) 685-6485
www.hq.navy.mil/sadbu

National Science Foundation
www.nsf.gov

Nuclear Regulatory Commission
www.nrc.gov/who-we-are/small-business.html

Smithsonian Institution Office of Equal Employment and Minority Affairs, Supplier Diversity Program
(202) 275-0145
www.si.edu/oeema/sdbu.htm

Social Security Administration
www.socialsecurity.gov/oag/acq/oagacq_smallbusiness.htm

U.S. Department of State
(703) 875-6824
www.state.gov/m/a/sdbu

U.S. Department of Transportation
(202) 366-1930
osdbuweb.dot.gov

Transportation Security Administration
(571) 227-2070
osdbuweb.dot.gov

U.S. Department of the Treasury
(202) 622-0793
www.treas.gov/offices/management/dcfo/osdbu

U.S. Postal Service
(202) 268-4633
www.usps.com

U.S. Department of Veterans Affairs
(202) 565-8124
www.va.gov/OSDBU