Certifications required for businesses to sell to the federal government

In the government contracting world, the term "certification" has several meanings. A firm may get certified as a Minority Business Enterprise (MBE) or Woman Business Enterprise (WBE) at the state or local level; or under the 8(a) Business Development Program with the federal government.

Such certifications as MBE, WBE or 8(a) may be an effective part of a marketing strategy for selling to government, but they are not mandatory.

However, any business seeking to do business with the federal government must "represent and certify" that it complies with various laws and regulations that apply to government contractors and to their subcontractors. This is called "rep's and cert's."

For example, effective Sept. 8, 2009, federal contractors and many subcontractors will need to register in the E-Verify system. This Internet-based system, maintained by U.S. Citizenship and Immigration Services (USCIS), is used to verify the legal status of newly hired employees, as well as those already employed by the firm who are performing functions related to a federal contract. (The state of Missouri already requires use of E-Verify for its contractors, as of Jan. 1, 2009.)

The E-Verify system is found online at: www.uscis.gov/e-verify.

To register your company on E-Verify, you must complete a memorandum of understanding (MOU) online. Then you will be issued login information. If your contract with a federal agency or prime contractor includes a contract clause referencing E-Verify, you must register.

Federal contractors must verify the employment eligibility of all new hires no more than three days after the employee's start date.

Existing employees' eligibility also must be verified, if they perform work directly related to the contract, and if they were hired after Nov. 6, 1986 — the first date that I-9 forms were required for all new hires by the predecessor to USCIS, the former Immigration and Naturalization Service.

Besides E-Verify, most representations and certifications for federal contracts are included within the bid document itself, or in a system called Online Representations and Certifications Application. ORCA is found online at: orca.bpn.gov.

The ORCA system includes many obscure contract clauses and provisions found in the Federal Acquisition Regulation, often called the bible of federal contracting. Most bid documents or solicitation packages issued by federal agencies include dozens if not hundreds of references to FAR clauses. Some of the more common FAR clauses are included in the ORCA system.

While ORCA is not yet mandatory for all federal contractors, it is a good idea to set up a profile in ORCA when you first begin bidding federal work. Reviewing the byzantine legalese in ORCA will prepare you for the kinds of language you will see in any federal solicitation. Here is an example of a question you will find on ORCA:

18. Does FRANK, JOSEPH G (Doing Business As:JOE FRANK) deliver any end products (from the corresponding country of origin) that are listed on the List of Products Requiring Federal Contractor Certification as to Forced or Indentured Child Labor under Executive Order No. 13126 (link provided to current list)? (FAR 52.222-18), (FAR 52.212-3)

This question may be puzzling to you. If you are a service contractor, you may think: I don't provide "end products" at all. I provide services.

However, nearly every federal contractor must answer this question. It is found on most solicitation packages issued by federal agencies. This is required by federal law.

This particular question is really limited to a handful of products, however. While the list may be revised in the future, the last change was made by the Department of Labor in 2001.

The "List of Products Requiring Federal Contractor Certification as to Forced or Indentured Child Labor" includes 10 agricultural commodities (chilies, corn, rice, rubber, etc.) made in Burma, and hand-made bricks made either in Burma or Pakistan. Few firms are likely to be trading in these products. But all are asked.

Contracting with the federal government requires persistence and patience. Just completing the registrations with the E-Verify and ORCA systems may take several hours of your time, and by themselves neither system will guarantee you a federal contract.

But these certifications, among many others, may be required in order for your firm to be awarded a federal contract, assuming you are the vendor selected by an agency to provide the products or services it needs.

For more information on bonding, consult your local Missouri Procurement Technical Assistance Center. A list of centers may be found at www.missouribusiness.net/ptac/centers.asp. MO PTAC training seminars are listed at www.missouribusiness.net/ptac/events.asp.

- Joseph G. Frank, MO PTAC counselor, St. Louis Region

This story was featured in the Apr. 2010 newsletter