Saturday, June 9, 2007

PROCEDURE FOR BECOMING A CONTRACTOR OF THE FEDERAL GOVERNMENT

This is not the entire process. Please contact Alex Pronove, alexcooper1@gmail.com, if you are interested in contracting work from the Federal Government.

Your business must have a DUNS number (Data Universal Numbering System). Dun & Bradstreet, created DUNS in 1962 as a means of identifying business entities on a location-specific basis. The DUNS number is widely used by commercial and federal entities. In 1994, it was adopted as the standard business identifier for federal electronic commerce . In 1998, the Federal Government adopted DUNS as its contractor identification code for all procurement-related activities.

The DUNS number is a unique and permanent nine-digit identification
number that remains with the company location to which it has been assigned even if the company closes or goes out-of-business.

It must also know its NAICS ("nakes") code. The
North American Industry Classification System (NAICS). It was developed jointly by the U.S., Canada, and Mexico to standardize the collection and processing of statistical data about business activity across North America. It is an economic classification system based on the economic concept of similar processes. Entities that follow similar processes to produce goods or services are grouped together. You determine the NAICS code for your business. There are a number of tools and references available to help you to determine the most appropriate NAICS code for your business:
  1. You can use the search feature at www.census.gov/naics. In the 'NAICS Search' box on the left side of that page, enter a keyword that describes your kind of business. A list of primary business activities containing that keyword and the corresponding NAICS codes will appear. Choose the one that most closely corresponds to your primary business activity, or refine your search to obtain other choices.
  2. Rather than searching through a list of primary business activities you may also view the complete 2002 NAICS structure with codes and titles at www.census.gov/epcd/naics02/naicod02.htm. Click on the codes to see the corresponding definition, cross-reference, and index item. With the hypertext version, you can select the category that applies to your business, and drill down through the more detailed levels until you find the appropriate 6-digit code.
  3. If you know your old SIC code, you can use the 'NAICS Search' box to locate the corresponding NAICS code. Enter the SIC code in the form "SIC 1234" in the NAICS search box, and click on the 'NAICS Search' button. The corresponding NAICS code(s) will appear.
  4. If you know your old SIC code, you can also find the appropriate 2002 NAICS code by using table 4, 1987 SIC matched to 2002 NAICS at www.census.gov/epcd/naics02/S87TON02.HTM.
Armed with your NAICS code and DUNS number, you are almost ready to apply for a CAGE code when you register your company with the Central Contractor Registration (CCR) department. The CCR is the primary registrant database for the U.S. Federal Government. Anyone (sole proprietors, corporations, partnerships and governmental organizations) desiring to do business with the federal government must register in the CCR. CCR registrants are required to submit detailed information on their company in various categories. Additional, non-mandatory information is also requested. The CCR Handbook defines and details specific informational requirements. The handbook also provides guidelines on how to obtain the information, if unknown. Categories of required and requested information include:
  • General Information – Includes (but is not limited to) DUNS number, CAGE code, company name, Federal Tax Identification Number (TIN), location, receipts, and website address.
  • Corporate Information – Includes (but is not limited to) organization or business type and SBA-defined socioeconomic characteristics.
  • Goods and Services Information – Includes (but is not limited to) NAICS code, SIC code, Product Service (PS) code, and Federal Supply Classification (FSC) code.
  • Financial Information – Includes (but is not limited to) financial institution, American Banking Association (ABA) routing number, account number, remittance address, lock box number, automated clearing house (ACH) information, and credit card information.
  • Point of Contact (POC) Information – Includes (but is not limited to) the principal and alternate points of contact and the electronic business, past performance, and government points of contact.
  • Electronic Data Interchange (EDI) Information* – Includes (but is not limited to) the EDI point of contact and his or her telephone, e-mail, and physical address. (*Note: EDI Information is optional and may be provided only for businesses interested in conducting transactions through EDI.)

Users will be unable to submit their registration online unless all the mandatory information is provided.

In addition, you have to provide your TIN [31 U.S.C.7701(c)] and to include the TIN in vouchers submitted for payment [31 U.S.C. 3325(d)]. Having the correct TIN in CCR will improve data collection eliminating multiple requests for this data by agencies.

http://www.ccr.gov/faq.aspx#needtoknow


About the Federal Acquisition Regulation (FAR) Book

All procurement and acquisition activities of the Federal Government are governed by the Federal Acquisition Regulation (FAR) book. The book is maintained by the General Services Administration (GSA), Department of Defense (DOD), and the National Aeronautics & Space Administration (NASA). It has 53 sections and numbers about 16,000 pages. The FAR is the "bible" of Federal Government's procurement process. The table below shows how the book's contents are organized.


FAR Section(s)

Content

1.xxxxx

6.xxxxx

General Contracting Information

7.xxxxx

12.xxxxx

Acquisition Planning

13.xxxxx

Simplified Acquisition Procedure (SAR)

14.xxxxx

17.xxxxx

Procurement procedures for contracts over $100,000

18.xxxxx

Reserved

19.xxxxx

26.xxxxx

Procedures and regulations affecting Small & Small Disadvantaged Businesses (SDBs)

27.xxxxx

53.xxxxx

Labor Laws, Contract Cost Principles, Contract Administration, Standard Clauses



The example below illustrates how to understand the sections of the FAR.

FAR 29.401-1(a)(1)
  • 29 refers to the Part. Part 29 concerns Taxes.
  • 4 refers to the Subpart. Subpart 29.4 refers to Contract Clauses.
  • 01 refers to the Section. 29.401 refers to Domestic Contracts.
  • -1 refers to the Subsection. 29.401-1 refers to Indefinite Delivery for Leased Equipment.
  • (a) refers to the Paragraph.
  • (1) refers to the Subparagraph.
Do not make the mistake of drilling down expecting a logical hierarchical flow. Take a look at these Subsections.
29.401-1 refers to Indefinite Delivery for Leased Equipment but
29.401-2 refers to Construction performed in North Carolina and
29.401-3 refers to Federal, State, and Local Taxes while
29.401-4 refers to New Mexico Gross Receipts and Compensating Tax.
As you can see, the subsections are not arranged by any kind of class.


About the
Federal Acquisition Circular (FAC)

FACs are amendments (i.e., updates) to the FAR. These amendments are published in the Federal Register. FACs are numbered sequentially.
FAC 01-17 amends the 2001 edition. This FAC is the 17th revision to the 2001 edition.
  • 01 is the Edition Year
  • 17 is the Revision number
The Federal Register is the official daily publication of the rules, proposed rules, and notices of Federal agencies and organizations. It also contains all executive orders and other presidential documents.

Every federal agency can issue FAR supplements. In 2007, more than 20 agencies issued supplements. Some of these agencies were:
  1. DOD (DFARS)
  2. GSA Acquisition Regulation (GSAR)
  3. VA (VAAR)
  4. Dept. of Agriculture (AGAR)
  5. Dept. of Energy (DEAR)
  6. Dept. of Transportation (TAR)
  7. Dept. of Commerce (CAR)
  8. Dept. of Health & Human Services (HHSAR)
  9. Agency for International Development (AIDR)
Every year, the complete list of supplements appears in Title 48 of the Code of Federal Regulations (CFR).

In 1994, the Federal Acquisition Streamlining Act (FASA) was passed. This law simplifies and streamlines the process of federal acquisition by maximizing the use of commercial sources before turning to government-specific buying practices. It requires contracts between $2.5 to $100k to be reserved for small business unless the Contracting Officer (CO) cannot obtain at least two offers from this sector (small businesses) at competitive market prices.

About the Defense Contract Audit Agency (DCAA)

This agency performs the contract audit functions required by the DOD and many civilian agencies. They typically do not audit smaller contracts (under $100k) or contracts awarded under sealed bidding procedures.

There are about 4,500 DCAA auditors throughout the U.S. and Europe spread among 300 field offices.


Guide to Codes

This chart may help you sort out some of the major codes used within CCR. Please also see below for specific questions often asked about some of the codes.


CODE Definition Description Where to find the right one for your company
DUNS Number Data Universal Numbering System Unique identifier assigned by D&B. Mandatory to begin CCR registration. 9-digit numeric code, no spaces Dun and Bradstreet
MPIN Marketing Partner Identification Number Password created by you in CCR. Allows you to access other government systems such as PPIRS, FedTeDS, etc. 9-character alphanumeric code; must include at least one alpha and one numeric character, no spaces.
TPIN Trading Partner Identification Number Confidential number assigned to you. Serves as your password to access your CCR registration. This number is only given to the CCR POC listed in your registration.
Confirmation Number N/A Temporary password that allows you to access a saved, but incomplete CCR registration. Once registration is complete, this number is deactivated and a TPIN is assigned.
CAGE Code Commercial and Government Entity Code Unique Identifier assigned by Department of Defense. 5-character alphanumeric value, no spaces. Must be in uppercase format. It is not necessary to have a CAGE code before registration. If you do not already have a CAGE code, one will be assigned to you upon activation of your CCR record.
NCAGE Code North Atlantic Treaty Organization (NATO) CAGE code Unique Identifier assigned by Department of Defense. 5-character alphanumeric value, no spaces. Must be in uppercase format. It is required for all foreign vendors working for a department under the Department of Defense umbrella. NCAGE Code Application form
NAICS Codes North American Industry Classification System Mandatory codes that classify the type of business an organization offers. Created to replace SIC codes. Census Bureau
SIC Codes Standard Industrial Classification Code Codes that classify the type of business an organization offers. Used for an EPA certification. Safety & Health Administration(OSHA)
FSC Codes Federal Supply Class Codes Optional, 4-character, numeric code used to describe the products your business sells. FSC Codes
PSC codes Product Service Codes Optional, 4 character, alpha-numeric code that describes the services your business offers, no spaces. PSC Codes
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