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Government Contractors' Newsletter |
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For the serious small government contractor |
December 2010 | |
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Greetings!
I wanted to get this issue out for those who may be taking off early for the holidays. Doesn't happen often for contractors! May your holiday be safe and filled with joy, regardless of what faith you hold to.
My personal thanks to all for your support this year through your readership, your insightful comments, becoming an online community supporting member, and especially your encouraging feedback. You make it possible to keep this service available and I Appreciate You.
As we come to the close of another year it must be remembered that there is no guarantee of what the new year will hold. This Day, This Hour, This Moment, are what matters. How we treat each other and how we deal with the issues of life at hand is key.
Here is a novel idea: Dare to be different! Why wait until New Years to make a resolution? You don't need a date to begin to make a change in your life. Why not today, next week, or anytime before the New Year. You can start now to exercise more, eat better, be kinder, stop chasing the dollar as an end all, spend more time with family, control temper, or set aside time for your Spiritual growth.
Don't be a crowd follower. Do things because they are right and good for you and those you love. If something is done because everyone else is doing it then chances are the behavior will not continue once the crowds focus changes. Be your own person.
Ever get tired of doing things because someone else says you should or should not? Following fashion for fashion sake. Measuring success as others measure success. Doing things you know or feel are not ethical because others are doing it, and seeming to get away with it. Keeping up with others that don't even care about or know you. It's time to begin to follow your heart and dreams? And you don't have to wait until 01/01/11!
I turned 58 this year and I have experienced a lot in my life as most have. Yet it still amazes me how people do things just because of others. Clients want to go out for a drink so they go and drink. Not because they want to but they feel they will be left out. People are afraid to not be like the crowd. The world has come to accept immorality as the norm, so others follow along.
One of the things I have learned is when you struggle to stay the course of what is right, regardless of the backlash, and believe me it is a struggle, eventually you will come out ahead. It never fails.
So consider a different resolution date than everyone else. Maybe we can call it the "New Day Resolution". After all, each day we are blessed with provides a new opportunity to "get it right". Just something to think about.
Let me close by saying I hope and pray for peace, goodwill, and joy to you, your family, your business, and your dreams. Not beginning next year, but This Day, Right Now.
Thank you. Your confidence through readership is appreciated.
Have a safe and blessed holiday.
Enjoy the issue!
Paul Sr. |
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Final Newsletter Posting
Women Owned Small Businesses
Final SBA ruling on WOSB set-asides
follow this link to SBA site to read full notice (bookmark it) |
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 Intra-company Transfers and Pyramiding of Cost and Profit
Under FAR, is it permissible for a wholly owned subsidiary to bill the parent company for work subcontracted on the parents contract with the government (including normal markup) and that the parent company contracted with the government is then able to submit a bill with their normal markup. Is this accurate?
Let's start with the second part of the inquiry.
The parent company can generally add a burden, usually G&A or a Handling Fee, to any subcontract or material cost or price included in its proposal. This burden typically reflects the added administrative effort required to administer and manage subcontract or material costs. A contractors' normal practice becomes an important factor in determining the reasonableness of the amount of burden added.
The first part of the inquiry requires more in-depth research of FAR guidance so let's start with the following basic premise:
Under certain circumstances, contractors may propose materials and supplies based on price rather than cost when they are sold or transferred between any division, subsidiary or affiliate of the contractor under common control. In these cases, ascertain whether the specific circumstances meet the criteria described in 6-313. If the audit discloses items that are improperly based on price rather than cost, appropriate adjustments should be made to eliminate the intra-company profit (plus any inapplicable indirect costs). [Source: DCAM 9-404.4]
Now let's look at the FAR Part 31 reference for more specific guidance......
follow this link for more |
Is it too late to bid on a solicitation?
INQUIRY: I'm looking at a potential opportunity to bid but I don't know if it is too late to try to bid on it. There are several amendments. What do you think?
RESPONSE:
Well colleague, one of the first things to do is contact the POC (Point of Contact) listed on the solicitation or on the latest amendments. I noticed there were amendments and maybe one of them extended the response date so check it out. If they did extend the response date don't forget to determine if you can prepare an adequate quote or response based on the deadline.
Now here is where many small firms overlook a strong marketing opportunity. If it is too late to respond then take this opportunity to ask to be placed on the agencies bidders list, if they have one, for future opportunities. Ask to meet with or teleconference with the program office and/or their small business representative to market your company and products.
Now follow-up with the point of contact if you do not hear back from them. Also, ask whoever you talk to what method of contact they prefer (email, telephone, mail). This is a very simple, important, but overlooked question.
You can turn a missed opportunity into potential future business.
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 Line of Credit - Payback in Full or Monthly Payments?
Should you keep your outstanding line of credit and pay down like a loan or should you pay it back in full once invoice funds come in?
RESPONSE: I recommend you pay most of the line back initially and for the first few times. It may be inconvenient initially to use it then pay it off repeatedly, but in my opinion it also shows that your goal is to use the line as intended and to pay it back quickly while managing the line as needed. What you don't want to happen early on is for your line to be used up and not paid back for a long period of time. Then you have to go back for a higher line amount without ever having paid back the original line.
Perception, perception, perception is important. Especially for a small business and in this volatile credit environment.
I believe that if you use the line for what its' intended purpose is, let's say for cash flow until invoice payment is received, then you should show you are paying back on the LINE and then using it again for the intended purpose.
I feel a line of credit is provided for different use then a loan. A loan is typically payed back over time while a line....
follow this link for more |
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 New Business Development Reference:
INPUT
Marketing and New Business Development! A function so necessary to a firms survival and growth yet such an illusive, confusing and oft-times expensive function. Without effective marketing/new business development, especially in government contracting, a firm cannot fairly compete in the marketplace.
I addressed new business development/marketing in Novembers newsletter. As promised, I am providing some contact information for those interested in another option for new business development and marketing support with government entities. The company is INPUT.
At least you should consider allowing INPUT to provide the online demo of their services and discuss how they can support you. I did, and it was very interesting and promising. The 1-hour demo is free. We also discussed a discount that would be offered across the board to our readers so please identify yourself as a Paul Gunn Newsletter Reader when contacting them. They also indicated a potential additional discount if changing from a competitor! So if you ever thought of doing business with INPUT or investing in your new business development function, now could be a great time to engage. You can reach them directly at the contact options listed below.
Don't forget to Ask Questions! As many questions as you need to. If you are not ready to sign on initially, please include a projected cost in your 2011 Budget, as an Indirect Cost, just in case you decide differently later on. It is an allowable cost. I suggest to initially include, as a guide, between $400-$700 per month for 1 year.
To hire an experienced New Business developer, on an employee or consulting basis, is costly. Yet you must move in one of those directions eventually. Until then, get access to the marketing tools the Big Boys and Girls use.
Plan to make the follow-up contact provided below for your Demo. Send Karen an email or give her a call. And keep us informed on your experience with them.
Company: INPUT - In business over 30 years.
Contact Name: Karen Buckley
Email: kbuckley@input.com Tel: 703-707-3610
What: Schedule personal online demo and Q&A (1-hour)
follow this link for more on INPUT Government Marketing Services
I hope this is a service that will be beneficial to your growth. My goal is to provide potential resources to our readers and online community members. Resources that you can use and are affordable. If you know of a resource that could benefit your colleagues please let us know.
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 Introduction of former DCAA Auditor Resource
I am pleased to introduce a former DCAA auditor who recently became an entrepreneur full-time. She has joined our side colleagues! Her name is JeFreda Brown and her firm is Brown Accounting Solutions (BAS) out of Birmingham, Alabama.
BAS provides accounting and business consulting services including: Government contract consulting, tax return preparation, real estate and self employment taxes, bookkeeping, budget preparation, business development, business plans, and Low Income Housing Tax Credit (LIHTC) application assistance.
The contract consulting includes Incurred Cost Proposals, Accounting System set up, DCAA audits, Pricing Proposals, Disclosure Statements, and other assistance as needed. BAS will also be offering payroll services sometime in 2011. Services are for individuals, businesses, and independent contractors.
JeFreda Brown (BAS) out of Birmingham joins Brenda Ramsue out of Atlanta, also a former DCAA auditor introduced earlier, as additional resources to you. JeFreda Brown can be contacted via email at myaccountant33@gmail.com (205-687-0176) and Brenda Ramsue at bramsue@comcast.net (678)458-6119. As always, your feedback on their services is welcome. Tell them Paul Gunn sent you! |
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 Do you have your Cost & Pricing DVD yet?
Larger Firms and Serious Small Firms are obtaining these tools. Are you one of them?
Since we added the Guide Pack DVD option, many have opted to obtain it for their tool chest due to the lower price than the Compass and Navigator Packs. It is really affordable! Now they own the training tool on Government Contract Cost and Pricing that has become a standard and must have for the serious small government contractor.
Although I developed this with the "truly small" contractor in mind, even larger firms have obtained it for their staffs current and ongoing training and reference.
If you have not yet obtained your copy of this popular DVD with Companion Workbooks, please take a closer look at doing so while they are available. This training tool, designed with the lay-person in mind, is a must have in the small contractors tool chest. When you least expect it, can't find anyone on short notice, and you need it, all you have to do is reach into your tool chest. The price is great, especially with the discount offered to online community members! You are an online community member right?
I continue to be asked if these DVD's can be obtained through government agencies tasked with assisting and supporting small business. Unfortunately no. Yes it would be nice if the SBA, VA, or DOC, provided access to this critical training tool, especially to the "Truly Small" firms. But as we know, things often happen more politically than practically for the "truly small" business.
I am a Realist. Optimistic, oh yes, but still a Realist. Let's face it, most small firms are accustomed to having to fend for themselves when it comes to the tools that can truly benefit them in their day-to-day functions. This Cost and Pricing DVD is one of them. Another area is in new business development (That's why I provided a resource reference above on this function also).
Take advantage of the special, unique tools available to you as a small business. And to the many of you who have obtained the DVD tool for your tool chest, go through the DVD and companion workbook at your convenience, but as soon as possible. Even if you feel you don't need it right now. Why? If you go through the materials now, you will have a better idea of where to go when the time comes.
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 Inspirational Corner:
I continue to address issues of life that are not always easy to handle and preferred not to be discussed. Daily life issues important even to the business-person.
Sometimes people get the idea that seeking prosperity or to build a better life is wrong. Business people get the "Bad Rep". That is so wrong! It is the "PRIORITIES" that determine the value of our efforts. Not just the efforts themselves. Simply put. "Seek Ye First, the Kingdom of Heaven". It does not say, not to seek the other things of life. Did you get it? Priorities, Priorities, Priorities! Be the best you can be, based on the right priority.
With concern for my colleagues and fellow human-beings, I seek to uplift and encourage, with nothing to gain except to provide hope for those who seek it. I am a willing servant of the Most High. I exist to do His Will, not mine.
Did you know that each of my contracts, consulting assignments, articles, and responses to inquiries come only after laying all issues before Him? I seek the Highest Wisdom and Counsel on everything. It's not me. I'm not that wise. He directs me as to how to respond, what to search for, how to interpret, and what to say. I just ask Him and try to listen and obey.
The success of clients, customers, and members is due to a Higher Wisdom outside of me. I learned long ago to tap into that source. God is my best and closest friend. I seek to draw constantly from His power source. I don't trust in myself, because I know who I really am. Just as you know who you really are! So I latch on to Him who does know who I really am, and yet Still Loves Me. Now you try to find someone or something to top that! Can't be done.
For the Generous Shall Prosper, But the Greedy Shall Decline. This is part of the business persons motto that can be viewed by following the link below. They are not just words. I live by them.
There is hope, joy, peace, and yes success waiting for you the business-person, the entrepreneur, the top manager, the level 3 assistant. It's as simple as asking.
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