It was at an Eldon Chamber of Commerce luncheon that Tim Roe first
heard about the Missouri Procurement Technical Assistance Centers (MO
PTAC) and the help the staff could provide to businesses seeking government
contracts.
It was not long after that, at the initial interview with MO PTAC,
that it became apparent that Tim's firmDesigning Steel Fabrication
(DSF)had some good opportunities in the government contracting
arena.
Although Greg McMullin, MO PTAC procurement counselor, warned Tim that
only a few tool and die/welding and machine shops see true success with
government contracting due to the competitive nature of the industry,
Tim persevered and began receiving government bid leads directly to
his company's computer.
The bid leads were based on a personal profile that was designed specifically
to describe the capabilities of Designing Steel Fabrication. Tim had
indicated that he was willing to bid on opportunities anywhere in the
continental United States. So when he called Greg and told him he had
found a promising opportunity, the two went to work on the application.
During Tim's discussion with Greg, they contacted the Navy contracting
officer. Based on Tim's questions, the buyer provided detailed specifications
and drawings, extended the bid date to Aug. 30 and added another delivery
site. The Navy wanted 30 mesh cages of varying sizes in San Diego and
other locations.
Based on the new information, drawings and specifications, Tim verified
the cost of steel, supplies, labor and transportation for delivering
30 cages to each location. On Sept. 4, the buyer issued the first amendment
to the bid and asked for pricing on delivery of an additional 30 items
to Norfolk, VA. This put Tim's company right in the middle of the delivery
area. On Sept. 10, the buyer asked for a copy of the drawings that were
used for calculation of costs and pricing. That was the nibble Tim had
been waiting on.
Meanwhile, a discrepancy appeared between the DUNS Number (an indication
of a company's credit-worthiness and reliability calculated by Dun and
Bradstreet) and what Tim had entered on the Department of Defense web
registration system. MO PTAC remedied the discrepancy while Tim worked
on his bid. Tim had Greg look over the representations and certifications
and verify that all of the figures and costs made sense. With Tim satisfied
that he had his bid calculated, including profit, he sent his bid to
the contracting officer.
The bid due date was Aug. 30. When Tim checked with the buying officer
on Sept. 10, he was told that the officer was in the midst of calculating
25 bids. Shortly thereafter, the buyer emailed Tim to ask him a few
questions for clarification. Before long, Tim was notified that his
was the low bid, but he needed to re-verify his pricing and suppliers.
Following that verification, Tim was notified on Sept. 27 that he had
a contract. He worked with MO PTAC to find a banker for the assignment
of claims. In the meantime, Tim ordered supplies and started cutting,
welding, bending and making the steel cages for the Navy.
On Oct. 9, MO PTAC learned from Tim that of the four banks contacted,
none was able to assist with funding for even a few months. MO PTAC
contacted Resources for Missouri, Inc. (RMI), which invited Tim to submit
a business plan. After an examination of Tim's shop and some input from
MO PTAC, RMI agreed to fund the $30,000 to help Tim's firm with the
contract.
Tim and his employees continued working 12-14 hour days, six and seven
days a week to have the first delivery ready to go out on Nov. 15. Tim
had already pre-paid two trailer trucks for delivery to San Diego on
Nov. 21. The Eldon Chamber of Commerce and the local newspaper were
encouraged to get pictures and an interview to record this first half
of the success story.
On Nov. 22, the second chapter began with a verbal request from Indiana
to change the delivery site for the additional order from Norfolk, VA,
to Indiana. In addition, the delivery date and product configuration
changed as well.
MO PTAC made sure that Tim worked with his contracting officer to ensure
that he had these requests in writing, including a stop work order,
until this could be clarified. The delivery date was extended, the delivery
location was contractually changed to Indiana and the cages were requested
in an un-assembled configuration! In addition, the government added
some material for the cages that it wanted added to the second half
of the order.
While working on these deliveries, Tim continued to watch for other
opportunities and completed his Historically Underutilized Business
(HUB) zone application. This will give him an advantage in bidding on
federal government contracts.
So who benefited? The employees, subcontractors and suppliers who worked
with DSF and Tim all benefited. RMI, an SBA lender, helped another business
refinance some old debt and perform on a government contract. The Eldon
Chamber of Commerce helped bring MO PTAC into the region months before
MO PTAC was needed. And now another successful government contractor
attends procurement conferences and networking opportunities while looking
for that next elusive contract.
Learn more about MO PTAC by contacting the center
nearest you:
Central Region and State Office
University of MO-Columbia
1025 Univ. Avenue, Suite 300
Columbia, MO 65211
573-882-3597
mcmulling@missouri.edu
www.missouribusiness.net/ptac
Eastern Region
St. Louis Empowerment Zone
100 North Tucker, Suite 540
St. Louis, MO 63108
314-621-7280
tuckerlh@missouri.edu
Western Region
EGRC Univ. of MO-Kansas City
4747 Troost Bldg., Room 227
Kansas City, MO 64110
816-235-2891
leonardd@umkc.edu
Howell County Extension Center
217 South Aid Avenue
West Plains, MO 65775
417-256-2391
mushrushw@missouri.edu
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Authored by: Greg McMullin, Procurement Specialist,
Missouri Procurement Technical Assistance Centers
Source: Creating Quality Newsletter, Volume
12, Number 9, September 2003
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