Steel Fabrication Firm Wins Navy Contract

It was at an Eldon Chamber of Commerce luncheon in 2002 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 firm — Designing 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 with the Navy, the two went to work.

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 to 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.

For help exploring selling your product or service to the government, contact a procurement specialist at the Missouri Procurement Technical Assistance Center near you.

- Original article by Greg McMullin for University of Missouri Extension's Creating Quality newsletter Sept. 03. Reviewed/updated by Rich Fyke, procurement specialist, MO PTAC 1/7/08.