OP-ED: Exploring OASIS – The “Myth of Transparency” & the working poor of federal contracting

On Thursday, May 23, 2013, Jim Ghiloni submitted a blog post titled “Exploring OASIS – The Myth of the Perfect Score [
https://interact.gsa.gov/blog/exploring-oasis-myth-perfect-score
].” In this post, Jim explains how in various hypothetical situations, firms that objectively score themselves as “average or below” using the criteria established in the initial draft RFP, should not fret and submit proposals anyway. Further, he goes on to say these firms are “encouraged” to not be concerned about their score, that the only real question that remain are, and I quote:

“Among the pool of potential bidders, is my score in the top 40, and is my pricing in line? I know we all like to get an “A” and you might be dismayed to see that your score is only 70% of the maximum, and thus potentially a “C.” Fear not. We’re grading on a curve here, folks.”

Well, Jim is a nice enough guy; but this is as akin to a Freudian slip as ever was one. Folks, let me qualify what I am about to say before I say it; if you play the lottery for any purpose other than sheer entertainment or believe in the Easter Bunny, please do not read any further.

Now that the room is cleared and only the sober remain > for your small business, this is not an academic exercise; this is business. The fact that – based upon the hype, the anemic number of solicitations out for bid right in the federal market, and the sheer potential of the opportunity; – the majority of professional services companies in the country are planning to submit proposals on OASIS gives it a lottery persona. That is, one in which the herd theory applies because Smalls are hungry.

When this happens, you get a large noise quotient in your market equation for success; and as a result everyone’s probability of winning is reduced significantly. And, who benefits for this type of mass hysteria you ask? The GSA does of course. The reason is, because this is a new contract instrument; the GSA does not have a legitimate government estimate – and they desperately need one. In short, whether you win or not; your pricing is going to help the GSA build its own price curve – and this curve is going to be used to negotiate down the prices on yet to be awarded task-orders.

What is the significance of this to you, you ask? Well, those of you who realistically know that you have average or sub-par quals are probably going to try to over-compensate this weakness with lower pricing than the market will bear. You’re so low on Maslow’s Hierarchy that you’ll do anything for a crumb. But guess what, you’re not going to win – the only thing you will do is insure that if you ever get on a team, the margins will be so low you and your partners will be eating sardines as a result. It will be the GSA Schedule wars all over again…

FLASH-BACK –> remember how the GSA in the 80′s incrementally beat everybody down to a 90% or lower price point the best price they gave their best private sector customer? Don’t be stupid.

So in sum; if you score yourself at anything less than the 85th percentile; don’t submit a proposal and contaminate the pool, team afterward instead. And, if you score in the 85th percentile or above, don’t low-ball your pricing. Many of you don’t realize how important this initial baseline is going to be in determining whether there is a middle-class for this contract vehicle or just the working poor. Hold the line and stay unified, as with all new vehicles; Smalls will never have this opportunity again.

Remember, Smalls are the middle-class of federal contracting, and don’t you ever forget it. One Voice…

Rudy Sutherland

the Secretary of Defense for Small Business

For GSA OASIS, in the land of the blind, the one-eyed man is King

http://lnkd.in/GcWHf6

———————————————-

When we were kids, our Mothers told us we could be whatever we wanted to be. Well, while this may be true, there are some things that are out of our control. When you went to your Dad, and said, “I want to be a Center in the NBA”, he may have said something akin to – “the average height in our family is 6’ so, unless you experience a tremendous growth spurt; you’d better reassess your career prospects.” This same rationale applies to those of you who aspired to be Mick Jagger growing up, and while you now find yourself successful in commerce, you’re most certainly not living the life of a 60 year old rock star. The same sobriety must be applied to pursuit of GSA OASIS.

Sure, there are GSA Proposal companies; Capture Management companies; and everything in between that is willing to say anything in order to get your business. “You can win if you only…”; “we’ve got a $$$$%%%% client win-rate…”; and “we did DNA enhancements for Bill Walton….” Here’s the sober truth: at some point, you gotta grow up and recognize who you are, and start there.

Now, taking on the practicality of many of our Fathers (and a few Old Spice commercials); look carefully at that GSA OASIS evaluation checklist in the RFI; now look at your company; now look back at the checklist… you either are what it says you need to be or you’re not. There is simply not enough time for you to morph. So you realize now that your trying out on American Idol, while exciting, is probably not going to change your career path. You have 3 choices now:

1. be a romantic and go after the impossible,
2. develop an alternative strategy to still be part of the game, or
3. quite. I am not much for quitters, so if chose option 3, you should stop reading now.

Now, this time; look carefully at that GSA OASIS RFI overall; now look at your company; now look back at the RFI… ahhh, yes, in the land of the blind, the one-eyed man is King. You noticed that there is an embedded value proposition that you possess which you missed the first time around. It is one that is unique to each and every federal contractor – Relationships. You see, Rock Stars don’t make money without a fan base – they just as well might still be playing in their parents’ garage. What you know for certain is this: the folks that buy from you now do so because they like you. And, that is your ticket to getting backstage at the concert. Right now, you should be completing a response to the RFI – not for the purpose of competing, but for the purpose pre-selling GSA OASIS to your current clients and subsequently to the eventual Rock Stars to become a glorified Rodi.

But you have another problem… the Rock Stars don’t know who you are.

Well, we can help with that; the “Teaming Exchange” was incepted and formed for the practical purpose of meeting folks where they are, and helping as many Smalls to monetize this contract vehicle as possible – while mitigating risk for all involved. While we may not end up with every Rock Star on the planet; all we need is one U2, perhaps a Led Zepplin, and maybe a Foo Fighter; we won’t make all of the money – but we’ll certainly carve out a noticeable chunk.

To determine if our framework may work for you, forward your completed GSA OASIS RFI checklist for scoring; mailto: contracts@anvil-incus.com by May 10^th for urgent consideration – after that, no guarantees on review prior to the final RFP.

If you don’t stand a chance, we’ll tell you; if you’re a Rodi, but not Rock Star material, we’ll tell you that too. But whatever you are, we will meet you “where you are” and help find a way to get you a job at the concert – being a Rodi, and making money, beats the hell out of being a Groupie, and getting pimped, any day.

For more information on the GSA OASIS Teaming Exchange Business Case, visit:
http://bit.ly/gsa-oasis

Join OASIS Teaming Group on LinkedIn @
http://linkd.in/ZZMbk7

Let me tell you a story…

Now, this is a true story. Let me qualify what you are about to read by saying I personally have assisted many 8(a) firms in transition to full & open. However, there is one firm owned by a gentleman so unassuming that you could easily presume him inconsequential. But, when looked at from the lenses of true scalable operations, sound management, leadership – and did I say performance? This firm’s record can only be declared as phenomenal.

But why, you ask , do I wish to share this story? I share this story for those of you 8(a)’s who believe that if you are the best at what you do; if you do the right thing; if you bring value to the federal agency(s) that you work for while in the program, you will be able to leverage that performance on its merits. Although, it used to be that way in the not so distant past; its not anymore.

The 8(a) program, like SDVOSB, and HUBZone, has become a means negotiated proxy whose value is not measured by performance and value per tax-payer $$ spent; but by favor to firms’ ran by minorities committed to soon to be retired personnel. I write this, not to have you give up, or presume hopelessness – no, not by a long shot. I tell this story, so that those of you who are doing everything right and enjoying the results of your labor, nevertheless, don’t presume to relax and believe that a 50/50 portfolio upon graduation is a sufficient cushion to propel you into the full & open with sustained momentum – it’s not.

You now need to start competing for (and winning) small business set-asides (outside of 8(a)) in years 4 and 5… but back to the story. Once upon a time, an 8(a) started the program with a solid strategy, solid private-sector past performance, and strong agency relationships – or so they thought. As a result and expected, they hit the ground running. Built a portfolio of solid contract vehicles, set-aside and not; and enjoyed 9 years of 8(a) bliss. Management negotiated good faith contract transitions for program off-ramp in a fashion that would be on par with private sector risk management. Again, they did it right.

But, then the fears of post-career unknowns visited upon the relative contracting officer personnel office and Maslow’s Hierarchy was descended by these folks like it was Jacob’s Ladder and all bets were off. For you see, cloaked in the statement “gov’ts best interest” is many times some bureaucrat’s self-interest. Despite stellar past performance over 9 years, forged relationships, and commitments made between Men as men have done for decades in this space; we watched this “example of excellence” be thrown unapologetically under the bus asif it were a form of Cesar reincarnated.

So, I say to you -do not believe, despite past-performance is no longer prologue for positive leverage post graduation. Take all commitments, even those executed in writing, by bureaucrats as having a shelf-life not communicated. Establish a reserve beginning with the your 1st 8(a) win above the line of profit – and title it “fund for defense and claims on portfolio.” Soci-economic programs are now on par with Vegas; the house is not happy to see you leave with any winnings; you may have to fight if you plan on leaving of the front door…

Summary Take-away from OASIS Draft review: GSA, Inc. is looking for high probability sales reps to win back DoD business

As stated initially, it was never our intent to re-state the obvious where GSA OASIS is concerned; but to look at the “meta” picture for strategic advantage to our members on their submissions. Within this light, our meta-analysis justifies the following statement:

“The GSA (or should I say GSA Incorporated) is using the OASIS contract vehicle as an interview tool to create a virtual sales team for the vehicle. In essence, your firm is attempting to obtain one of 40 sales representative positions. When looked at from this perspective, it becomes much easier to anticipate and respond competitively to the RFP – as well as strategize on the context of the response.”

Remember, the GSA has a very unique business model within the federal gov’t, very akin to being a for-profit-organization. By virtue of the fees it collects and footprint of agency customers; the agency grades its success on revenue generation and profit just like a privately held firm. Thus, OASIS is essentially a means by which the GSA wishes to primarily win back market-share within DoD, which has eroded over the last 10 years or so.

Thus, if you think of the draft RFP in the context of a for-profit sales plan – it makes the utmost sense.

Now, as you are aware; a sales representative’s role is to contact customers and prospects, explain product benefits and features negotiate prices, and close the sale. After the sale, sales representatives aim to build relationships with customers so that they have the opportunity to secure future sales. In a small business, credibility in sales discussion is established primarily by virtue of industry recognized certifications and licenses.

The above definition being our baseline, the GSA is quite savvy in how it intends to mitigate the inherent risks while incentivizing the end-state sales pool.  No cold-calling here; the GSA will use your past performance (and the agencies within which they were performed) as prologue for future sales. The key here is emphasis on Prime vs. Subcontractor performance. The GSA knows very well that it is the Prime that owns the relationship and most likely closed the business in the first place; and thus gives greater weight to it as opposed to the latter.

These are only a few expansions on the key variable measurements employed by GSA, but what should your interpretation of these signals be relative to your ultimate response to the end-state RFP? This shouldn’t be too difficult to discern:  Focus on demonstrating your ability to bring categorically defined business to the contract vehicle by virtue of past successes, while highlighting revenue volumes, and service levels that say these agencies want you back.

Also, you will want to informally demonstrate your ability to see the importance of your role as a sales rep for the vehicle on par with winning these contracts for your own firm. Being good at what you do from a technical perspective does not come close to correlating you and your firm’s’ ability as a Sales Representatives – and the GSA knows this all too well from its experience with first generation “GSA Schedules.”

Regardless of what noise may be loudest right now, these guys are looking to increase their customer base and by extension greater revenue to justify investment in standing up this vehicle in the first place. Sounds like a for profit strategy to me; and you know what they say… if it walks like a duck…

Share your thoughts at:
http://lnkd.in/9S6szA

One Voice…

Prognosis – what Small federal contractors are experiencing right now is the euphemism of a ‘BLACK-SWAN’ event

There’s a lot of symptoms being experienced right now by Smalls in federal contracting, but unfortunately the cause of what ‘REALLY’ ales is not part of the conversation; because the folks doing all of the talking aren’t organic to Smalls and thus can’t diagnose. BTW, wasn’t that the reason I created VSBA in the 1st place? Of course, but I digress… regarding that cough…

Here’s the x-ray – thanks to the impact of sequestration, continuing resolution, and the current debt ceiling issues > compounded by the glut of GWACs issued by every procurement agency exec looking to make a name; what Smalls are experiencing is ‘contract vehicle over-saturation with minuscule market demand support’ with a dose of regulatory imperative – a perfect storm or ‘Black-Swan’ event by any other name.

Black-Swans are, of course, those highly improbable but painfully consequential events that strike from the blue. These types of events can cripple, vulnerable Smalls that are caught off guard; destroy financial performance or kill the business outright. Because they are rare and almost impossible to predict, black-swan events normally fall outside the scope of most Small Business risk management programs (assuming a Small has such a program at all).

So, now that we have a prognosis – what’s next? Well unlike the common cold, or the flu, the ‘one shot antibiotic fits all’ mantra won’t work. The remedy for each Small is unique, taking into consideration such variables as industry, size, product/service type, diversity, prior preparation, etc. – you get the picture. And, that is why we are experiencing such a influx of noise from the kabuki theater crowd – the truth is, most of these folks don’t want you to know that they are just as clueless as you right now.

So, if this is familiar – I implore you to get back to the fundamentals of why you started your business in the first place. Time to re-validate; are you still relevant? Does the market still need what you offer? These are boardroom questions that need to be answered. And if you don’t have the stomach for it, then I guess you have your answer – don’t you?

Finally, I have heard some diagnose this time a ‘Black Death’ event as opposed to Black-Swan – but I don’t agree. If this were a Black Death event, all of your fates would be left to chance and determined by your immunity to a single pathogen; but that’s not the case here. You can survive, and indeed thrive, if you recognize or remember your firms’ identity, stay in your lane, and above all watch your 6 o’ clock – cause when some folks run out of food, animal instincts kick in and they/we start eating each other. And, then, my friends – stage 2 Black-Swan will become the Black Death. Stay Frosty.

Smalls gotta learn how to swim with the Sharks

Smalls gotta learn how to swim with the Sharks

For fiscal year 2013, this is the best graphical summation of the competitive federal procurement landscape that we could put together; no matter how you scratch it, Smalls will need to dive into the deep end to survive. Here’s why…

During FY 2012, civilian opportunities were valued at $12.8 billion and defense opportunities accounted for $5.6 billion. For FY 2013 these numbers have changed dramatically with defense opportunities valued at $9.5 billion and civilian opportunities totaling $2.5 billion.

Also, federal agencies are continuing to procure their requirements through small business set-asides more often than through other small business categories, such as 8(a) and Service Disabled Veteran-Owned Small Businesses (SDVOSBs).

SUMMARY TAKE-AWAY

• Small business prime contracting spending has been on the decline.
• Small businesses are being disproportionately affected by spending cuts.
• The majority of this year’s top Small business opportunities will be procured by defense agencies.

AGENCY PROCURMENT STRATEGY

By utilizing small business set-asides, agencies can not only get credit toward their small business goals, but it also gives them leeway to award contracts to any category of small business for maximum control over meeting goals.

SMALL BUSINESS COUNTER-MEASURE

The net-effect to Smalls is fewer but larger opportunities, with more varying capability needs. To aggressively adjust to this shift, Smalls must form solution focused joint ventures – maintaining membership in a multiple simultaneously.

Aljucar & Co. | http://www.aljucar.com

Help VSBA fight against Dun & Bradstreet for Small Business

The “Voice of Small Business in America (VSBA)” is raising funds in order to continue our fight to stop Dun & Bradstreet from forcing small businesses to purchase their products and services via predatory and misleading marketing practices. See Petition:
http://chn.ge/PCriaW
. This affects all of us; if you have not already, at some point you will be contacted by DNB with an ‘offer you can’t refuse’, see Nov. 2011 Blog post:
http://bit.ly/PCvKq5
.

At this point, it is critical that we press Congress and the relative policy offices to modify the Federal Acquisitions Regulations (FAR) with language to unequivocally prohibit DNB from holding small businesses success hostage by requiring us to purchase the right to manage our own business information. However, as you are aware; ‘Change’ on Capitol Hill takes time, persistence, and money. This effort requires us to consistently engage congressional committees and policy oversight offices including: The Financial Services Committee, Oversight and Investigations Subcommittee; Office of Federal Procurement Policy; and, the GSA Office of Government-wide Policy among others.

Donate $20 or more today and help us eliminate the Dun & Bradstreet monopoly. Corporate Sponsors, ALJUCAR & Co. |
http://www.aljucar.com/
and Anvil-Incus, LTD |
http://www.anvil-incus.com/
, will match all donations on a dollar-for-dollar basis.

For more information and to make your donation, goto:
http://fnd.us/c/bLtyb
 Thank you… One Voice…

-VSBA  Founder, Rudy Sutherland

About Us: Voice of Small Business in America (VSBA):
http://linkd.in/OneVoice

For 5-years now, VSBA has worked and communicated with commercial and government small business contractors – online via discussion threads and offline via phone and email – to successfully navigate the industries and federal programs they are part of. Effectively, we have filled the gaps in service that our tax dollars have already paid for form agencies like the SBA. In addition, we have assisted in the collection of debts owed by larger firms to Smalls when our members lacked the resources to obtain outside assistance. Finally, we advocate for our Small Business members to have large contract opportunities unbundled and for sole-source opportunities to be increased for the 8(a), 8(m), and SDVOSB socio-economic programs.

TAX DEDUCTIBILITY

This donation is not tax deductible either as a charitable contribution or as a business expense under section 162e of the Internal Revenue Code, due to lobbying and political activities engaged in by VSBA.

For Small Businesses in financial distress, Merger is a better alternative to filing for Chapter 11

Right now, there are many very nervous small business government contractors, that provide a primarily services footprint, who don’t know which particular programs are going to be cut within the federal agencies they currently contract, due to budget cuts and the potential sequestration, and thus can’t do much in terms of proactive decision making.

At the same time, due to the highly variable cost structures and declining task-order availability, many firms are considering the prospects of what used to be a viable means of restructuring, Chapter 11 bankruptcy. However, this may not be the viable option that it once was. The rules have changed significantly over the years. Today, if your firm goes into Chapter 11, the odds of you keeping the business are much lower.

The Supreme Court’s 1999 LaSalle decision has given unsecured creditors a huge advantage, and the result is the cost of bankruptcy has gotten so high that the ability to continue your firm under current ownership has reached almost zero. The key issue is the expansion of the ‘363 sale’. As many of you may be aware, the 363 sale was originally designed to allow companies to sell off spoilable product, like fruit. If you were in the grocery business and you filed bankruptcy, it allowed you to sell off assets. The Lionel case expanded that so you could sell major assets, virtually including the whole company. Thus, giving unsecured creditors a very logical reason to avoid a plan of reorganization.

These, and many other changes, say to the world that the chance of your small business surviving bankruptcy is much lower. And if it’s much lower, the banks aren’t going to give debtor-in-possession financing, and rightfully so. The D.I.P. financer gets a priority lien; last in, first out, but the contingency is that your business survives to have the money to pay that super-priority lien. In addition, in Chapter 11, you are required to pay for the attorneys, accountants and consultants of the creditors’ committee; including any investment bankers that may be involved. Essentially, you are paying your creditors to oppose you. In short, Chapter 11 is tilted to the unsecured creditor side of the equation.

Given these facts, Chapter 11 should be an absolute last-resort strategy. A better approach may be to merge your firm with another small business to create one survivable company.

http://www.aljucar.com/

WARNING: Aspiring Small Business Federal Contractors Beware

“Government contracting is not for everyone”

A small business should not consider federal contracting if it is looking for the government to save it financially. Contracting can be a long, complex, expensive proposition that can cause a financially struggling concern to go under. Some of the questions that small businesses should consider when contemplating contracting with the government are:

1. Do you have the financial resources?
2. Are you stable?
3. Are you financially healthy?
4. Can you make payroll and other payments while performing a contract?
5. Are you committed to investing and applying the resources needed to market to the government?

The point to these questions is that contracting with the government can be very lucrative, but it can also be a significant drain on both resources and finances. The government does not make payments up front, except in extremely rare circumstances, so a business must be able to maintain its day-to-day operations during contract performance. Therefore, government contracting is not for everyone.

In addition to size considerations, a firm must be willing to work within the bureaucratic process and have the patience to deal with the nuances of federal contracting. It must have the necessary technology in place as well as a documented quality control plan.

So, as long as you have answered the above questions honestly and your preparation is in order, go for it – eyes wide open. But, surround yourself with folks who know more than you.

- Rudy

One Voice…

The ‘all new’ Small Business Talk Show – Starts up again mid-April ’12

ALJUCAR & Co. is looking for Proposal Management & Support Professionals

ALJUCAR & Co. is looking for the following personnel to assist in supporting our PMO on several upcoming Proposal Requirements. We have an immediate need for the following:

1. Technical Writer(s) – Proposal responsibilities include: Corporate Description, Team project experience, staff resumes, and additional sections to be defined.
2. Subject Matter Expert – IMPORTANT: Must have extensive experience with the Department of Transportation (DoT) and or the agency’s Operating Administrations (OAs). | Proposal responsibilities include: Technical descriptions, Analysis, Management plan, and additional sections to be defined.
3. IT Solution Architect – Proposal responsibilities include: Innovative solution design, System architecture, Executive Summary, and additional sections to be defined. | Additional support is required for the following: Transition in/out plan; develop integrated plan for the following areas of focus: Program Management, Capital Planning, Integrated Communications, Application Software Management, Infrastructure Support, IT Security, and Customer Service.

If you are a professional, or know of professionals, with expertise in any of the above areas of discipline; please forward your resume/capability vitae and billable-rate requirement to emily.parcell@aljucar.com NLT April 6, 2012.

NOTE: this is a project based opportunity and IS NOT permanent employment. 1099 personnel and firms need only respond.

ABOUT US

ALJUCAR & Co. is a boutique globally-independent business service integration (BSI) firm. We provide contract management and performance reporting services –  and handle compliance responsibilities for populated and unpopulated government contractor Joint Ventures. www.aljucar.com

 

 

Transparency & Accountability: Consolidating the Business Development profession for Small Business Government Contractors | Certified Business Development Consult™

“To our VSBA membership: If they’re not CBDC™ certified, do business with them at your own risk.”

In Washington DC and around the country, hiring independent business development and marketing personnel has become an exercise in fear for small business owners. From exorbitant service pricing to promises made that cannot remotely be kept – small business owners, particularly those new to government procurement, are both confused and unsure about whom they can truly get assistance from. How do we know? – VSBA gets more complaints monthly from our members being duped by business development and marketing professionals than any other subject-matter.

To resolve this issue, VSBA has formed the certifying body for the Certified Business Development Consult™. Our CBDC™ certification process confirms your past performance success and commitment to the highest ethical standards. More importantly, it gives the Small Business gov’t contractor a single point of accountability and recourse for services promised and not rendered.

- OUR THREE APPLICATION STREAMS -

BASIC for consultants with a minimum of 3 up to 9 years of Business Development consulting experience as independent or internal consultants with five satisfactory clients’ evaluations.

EXPERIENCED for consultants with 10 or more years as independent or internal consultants and otherwise meeting the Basic requirements.

MANAGEMENT for high level managers with 20 or more years’ experience with at least 3 years of consulting with clients and accountability for successful completion of projects involving Business Development consultants and otherwise meeting requirements of the Basic track.

- THE PROCESS -

Submit a CBDC™ Application with supporting documentation to VSBA, including three written engagement summaries and provide contact information for five or six clients who will be contacted to verify performance.

- HOW LONG DOES IT TAKE? -

The process can take as little as one month, depending on how quickly your references are submitted and client evaluations conducted.

- WHAT DOES IT COST? -

Your certification fee is determined by your VSBA member status. VSBA awards the CBDC™ to members and non-members. There is no requirement for membership in any professional association or to attend any specific course to apply for the CBDC™. VSBA member rates will apply only if you are in good standing at the time you submit payment. If you join VSBA after being awarded the CBDC mark, member rates will be applicable in the next calendar year.

Initial Certification Application and Assessment

(non-refundable)

- Member $350.00

- Non-member $550.00

Annual CBDC™ charge (prorated first year)

- Member $395.00

- Non-member $550.00

Triennial Certification Renewal (an assessment of your continuing professional development)

- Member $150.00

- Non-member $250.00

WE’RE CERTIFIED NOW WHAT?

Once certified, you and your firm will be listed in our Certified Business Development Consult™ Sub-group where our group membership of more than 7000 small business gov’t contractors will have access to contact and contract with you. You and your firm will also be listed in our VSBA Preferred Vendor List, sent out annually and published for download on our website. Finally, you will be able to include the Certified Business Development Consult™ logo on your marketing collateral to provide externally validated credibility to your professionalism.

Send your request for payment instructions and a Certified Business Development Consult™ application to: BizEvangelist@VSBAonline.com

One Voice…

VSBA Editorial – Is History repeating itself?

By Rudy Sutherland

The current macro-economic environment and the way President Obamas’ administration is dealing with it is eerily like when Franklin Delano Roosevelt served as President from March 1933 to April 1945. What is quite striking is that the Republican Party is responding now just as it did (literally) during that timeframe (read the history) with claims and talking-points of ever expanding government, class warfare, etc., etc.

Here’s the rub – the country went into a 2^nd recession after the great depression and Roosevelt had to lie to the American public in order for the US to enter WWII against Hitler in order to create jobs. It is widely thought that without WWII, Roosevelt’s tenure would have been on the whole a failure. Moreover, President Roosevelt had three full terms to get the country out that debacle and racked up significant debt to do so – he also alienated the entire commercial class.

President Obama has none of these advantages, but all of the disadvantages ^ plus hyper-speed communication and 24 hour news-cycles to insure his administration can’t pull the wool over the American collective eye. Remember, President Bush took the war option off the table with Iraq; America is now as gun-shy about war as we were in the 30’s and 40’s. So, if you think the crap you’re hearing on cable-TV about the stock market expanding is going to help the unemployed; remember – corporations don’t create new jobs – small business does.

What does this all mean? In my view, the President and his administration are not doing anything bold or new – anyone with a library close by or an internet connection can see that their entire playbook has been lifted from FDR’s tenure in office. It’s sad to me – because, as valuable as the sheepskin is that they possess, it really demonstrates that there are no entrepreneur minded individuals in the current administration… and America at-large is suffering because of it. For the sake of our children, we need real Change – but not that proposed by either party right now – all of which is short-sighted and irresponsible; we need an ‘Entrepreneur in Residence’ with fresh ideation to bring us out of this abyss.

Only problem is, that type of individual would only be a fool to go into national politics. Yet I remain hopeful – I’ll be Winston Churchill to your Herbert Hoover any day. If any in our group has the gumption to be that person, please step-up; now more than ever, your Country needs you.

One Voice…

 

Small Business: Trickle-down Economics

By Rudy Sutherland

‘…you need to be smart, focused and critically selective about how you pursue opportunities, the structures you use to align with partners and generally how you spend your time pursuing and doing business.’

What is the net-effect of reduction in federal agency spend? A: subcontractors aren’t as necessary.

Since subcontracting is the life of Smalls, you need to become smarter and better at developing industry relationships with Prime Contractors and gleaning information about upcoming opportunities.

As I have stated time and again in previous posts; when the government tightens its belt, it applies more efficient acquisition methods and favors companies with existing contracts such as the GSA Schedule, BPAs or IDIQs. If you don’t have one or more of these, you need to venture with a firm(s) that do.

In short, you need to be smart, focused and critically selective about how you pursue opportunities, the structures you use to align with partners and generally how you spend your time pursuing and doing business.

COMPETITIVE SUBCONTRACTING

Obtaining a subcontract on a legacy contract or known solicitation with the “right” Prime contractor is a competitive process and can be quite daunting. Sending out a boiler-plate capability statement will only insure you land in your targets’ junk-mail folder. Candidate firms (Small & Micro) desiring to stand out and be competitive must provide the right information as a synopsis that is both targeted and compelling.

ALJUCAR & Co. has solid relationships with a volume of large & medium size Prime Contractors in various disciplines looking for the “right” subcontractor(s). Historically, to liaise our client base, we offer ‘Prep & Representation Services’ – we are now expanding this service offering to a select group of Small & Micro businesses.

We utilize either an hourly or retainer arrangement; attempting to bring a practical solution to the realities that sound small business face to remain competitive. To request a discrete consultation, please email your request along with your most recent capability statement to emily.parcell@aljucar.com and you will be contacted with next steps.

ALJUCAR & Co.

http://www.aljucar.com/

202.505.2182

Which of you entrepreneurs is the Jeremy Lin of Small Business?

It’s a great story and testament to what perseverance and hard work can do for you.

Last night (FEB 10, 2012), given the opportunity to shine with the New York Knicks, Jeremy Lin came out of nowhere (the NBA D-League) to out-play (out-perform) Kobe Bryant in the country’s biggest market by scoring 38 points.

This – after going undrafted, getting waived twice, going to the D-League four times, and being basically a 15th guy on every roster.

It’s a great story and testament to what perseverance and hard work can do for you.

So which of you is ready to play on the big stage when your opportunity comes to shine? …cause it most certainly will. Are you ready? Who of you believes enough in your firm, despite your current challenges getting or keeping a federal contract; despite the current anemic spend by gov’t agencies this fiscal year; and, despite the level of competition for so few contract opportunities?

Whoever you are, I want to work with you; because business like sports is a ‘contact’ activity that requires tenacity, persistence, and belief in yourself and what you do (the way you do it) when no one else does.

By the way, you ask what is it that Jeremy has that’s so special? It’s that to him, it’s not all about him. In fact, it’s not about him at all. He’s the anti-Kobe. He takes what he’s given and plays his role, and he does it magnificently.

What about you, can you think of the bigger picture for your firm? Can you be a transformational leader for your firm; ready to make bold decisions that may be tactically ridiculed but strategically brilliant? If you are, and are ready to prove it; call me – because you are the type of and ‘select few’ entrepreneurs that I created this Group to find.

Rudy Sutherland

http://www.aljucar.com/

One Voice…

Why minority Smalls have to supplement commodity offerings in IT and other saturated slow/no-growth sectors with true ‘value-added’ capabilities, and also step-up M&A

Even though the number of minority businesses has reached unparalleled heights, their proportion does not yet fully reflect the growing size and importance they represent to economic recovery in the United States.

Fueling the disparity is the fact that minority businesses are disproportionately represented in saturated, low-growth and no-growth sectors . They also tend to rely on personal debt, family financing and business loans over equity, and other tools that are otherwise commonly accepted in the capital markets.  As a result, minority businesses often lack the size, scale, and capabilities of their majority counterparts.

Specifically, to achieve greater size and scale and expand their capabilities, minority businesses must proactively close the gap by:

• Building capacity and capabilities of minority businesses to provide more value- added products and services; particularly in federal government procurement
• Expanding the use of mergers, acquisitions, and strategic partnerships
• Fully accessing and deploying the capabilities of the financial markets for minority business development
• Aggressively responding to major trends in global supply chain management

The minority Smalls that won’t or don’t make transformative changes to close the gap will ultimately fail.  The growth rate for these firms has already begun to slow, and as a result, limited number of jobs are being created by this small business demographic.

THE MANAGING COLLECTIVE

an essay by Mr. Hugh Aaron

I desperately needed ideas. The company’s progress was stalled due in large part to a slowing economy. But it was also due to a certain apathy (even within myself), and a hardening of our ways that had developed during the previous decade.

It would have been easy to pay a management consultant to tell us what to do. It would also have been defeatist. After all, I owed what success I had to applying my own resources. And I already had well-paid managers in place who knew the company better than anyone else. But I’d never asked them to look beyond their own bailiwicks or sought their opinion of what was wrong or encouraged their suggestions on what to do about it. Right under my nose were the most qualified consultants I would ever find.

We met every weekday morning in my office between eight and nine, before the phones starting ringing. Seven members of our small company (now with fewer than a hundred employees) were steady attendees: the vice president of production, the first-shift supervisor, the technical director, the office manager, the sales manager, a rotating production worker who participated for a week, and I. If a salesman or the visiting manager of our satellite plant happened to be in the office, he was also invited.

Our purpose was to develop new ideas and let them fly no matter how ridiculous they sounded. Everyone had a turn to speak and if what he or she had to say wasn’t completed within the hour, it was carried over to the next morning.

Though presiding, I maintained a low profile and let the other members of the group argue their thoughts freely. I might ask a question here and there or toss out a problem I’d been wrestling with. But it was not management by consensus; no vote was taken. I reserved the authority to decide which idea was worth trying. Everyone understood that I, as majority stockholder, had the most to gain or lose.

My first task was to break their habit of restricting their thinking to their own jobs — a natural and regrettable result imposed on us by the organizational structure. Traditionally, only the CEO sees the “big picture” and is the one who makes the big decisions. I wanted everyone to be a figurative CEO, to be in my shoes. Although each individual in the group had different and well-defined responsibilities, all had to put aside any claim to expertise or superiority and accept both criticism and ideas that concerned their departments. We were all equal during the meeting and every opinion was respected, but outside the meeting we reverted to operating within the clearly established lines of responsibility, which could not be crossed.

The unpredictable member of the group was the rotating worker. That person might be a young woman from the office staff or a tough old hand from production. Many workers, unaccustomed to membership in the inner sanctum and feeling intimidated sitting with the brass, initially only listened. But with encouragement, by their second or third turn the timidity disappeared.

From these people came the practical, down-to-earth solutions that startled us by their insight: re-using our plastics waste to clean machines between runs, and hiring two of our workers who had once been in the cleaning business to replace our unsatisfactory cleaning service. Their moonlighting added to their income, and their quality job pleased their coworkers.

Some workers begged off attending our meetings, saying they had nothing to contribute and had no wish to hear the problems. But they couldn’t avoid hearing them. Walking through the plant I’d overhear discussions on what went on at our meetings. Most worker members, proud of their participation, were quick to spread the word to all corners of the company.

The range of ideas that flowed from these meetings was enormous, from hiring and firing people to changing banks to devising compensation plans to seeking new markets to establishing long-range goals and ways to achieve them. The collective dealt with virtually every aspect of running the business, culminating in incentive plans for all levels of the company (except top management) that ultimately eliminated most of our structural problems.

After two years, the meetings degenerated into spurious discussions and boring recitals of petty complaints better dealt with at a lower level. Thus the group contained within itself the elements of its own demise. Owing to the collective, the company reached a new and prosperous stage of life. But an indicator of the collective’s effectiveness was that it eliminated itself. Problems had been its raison d’etre; without them, it had no reason to exist.

About the Author: A graduate of the University of Chicago, Mr. Arron has had 18 of his articles published by The Wall Street Journal. He was CEO of his own manufacturing business for 20 years before selling it to write full-time.

LET’S FACE SOME REALITIES….

Contributed by Mr. Hank Wilfong

First, let us realize that The Golden Era at NASA, is gone, not likely to return. But, then, the total “denial of government responsibility” is also gone. Government is responsible for equitable involvement of all Americans, including the socially and economically disadvantaged business owners. One of the realities is that we are a country of law abiders.

We are also a Capitalistic country, which abides by certain “rules of economics”. We have been approached several times, recently, with the issues of “keeping jobs in the United States by stopping “outsourcing of jobs overseas”. These folk have gotten enchanted with “needing more manufacturing jobs” over here. Many of these same folk argue for, keeping “government jobs” (In-sourcing) rather than “contracting out” to small businesses in the private sector. But, there are certain realities that they ought face.

“Division of duties” is a strong principle of Capitalism. If American workers will agree to work at the same rates that foreign workers will work, then, bring the work back to America. The simple truth is our workers seem to have simply priced themselves out of some jobs. They could follow the jobs, we suppose. But, they should not expect business owners to pay exorbitant prices that they can get much lower, somewhere else.

As for building government, or keeping it at the same size, rather than building up the private sector-that doesn’t sit well with us either. We want our privately owned businesses to grow and prosper. Having to “compete” with the U.S. government for work is not something that we enjoy or approve of. That does not comport well with free enterprise.

The simple matter for me is the National Association of Small Disadvantaged Businesses (NASDB) has not a single manufacturer, anymore. The kind of work some did many years ago, has gone overseas. However, NASDB has hundreds of “Service Companies” with hundreds of jobs whose clients are manufacturing companies. In addition, our IT firms “develop” some products which might be loosely classified as “manufacturing”.

The fact is that WE do the high-end jobs, with the profit-making capabilities, while the “low-end” manufacturing jobs are done overseas. So, let us not fall in love with these “names” of what we do. We try to use our “advanced technological” edge to make a profit, on high-paying jobs. The lower paying jobs, thus, go somewhere else.

That’s called “Capitalism”. And it has to do with “segregation of duties”- or something like that.

Long live Capitalism, and profit making…

##

Mr. Wilfong is the President of the National Association of Small Disadvantaged Businesses (NASDB) 

Are the benefits of contract award bias towards ‘Bigs’ worth more to our country than Job Creation by ‘Smalls’?

Are the known benefits of job creation by ‘Smalls’ more valuable to our country than the perceived savings achieved through contract award bias towards ‘Bigs’?

BACKGROUND

There has been tremendous fallout over the Bill introduced by Rep. Bill Owens (D-N.Y.) on Jan. 18 titled “the Small Business Growth and Federal Accountability Act” (H.R. 3779)
http://thomas.loc.gov/home/gpoxmlc112/h3779_ih.xml
because federal agencies have regularly ignored the government’s annual 23-percent small-business contracting goal.

However, as a result of the accountability “teeth” (heretofore nonexistent) that this bill establishes, federal agency management will now be forced to weigh the penalties for missing the small-business goal against awarding a contract to a large company that they feel could save money in execution efficiency and on the cost of contract management personnel.

As many of you know this pro/con argument has been in play for as long as there have been agency Small Business goals – at all levels of government. However, our team has done extensive research on the subject and there is no analysis available or empirical proof for record that any savings are enjoyed by federal agencies through the practice of bundling and bias towards Bigs.g

QUESTION

Do you buy the argument that a large firm can perform scaled functions better than a multiple of small firms, and that the efficiency and management savings (real or imaginary) that correlate to budget dollars justify agency bias towards Bigs? And, even if it does; do the known benefits of “job creation” by Smalls positively net-out any perceived benefit to the betterment of our country’s overall economic well-being?

One Voice…

http://linkd.in/OneVoice

ALJUCAR & Co. is vetting individual firms to joint venture for Department of State | Worldwide Design-Build Construction and Construction Projects

The U.S. Department of State (DOS), Office of Overseas Buildings Operations (OBO) is seeking to prequalify firms for Design-Build Construction and Construction projects at various Department of State Foreign Service Posts and other facilities worldwide.  The Department of State anticipates awarding 25 IDIQ contracts.

Depending on the availability of qualified offerors; set asides for specific categories of small business shall be as follows:

• six (6) set aside for 8(a) firms,
• three (3) set aside for HubZone businesses,
• four (4) set aside for service-disabled, veteran owned businesses,
• four (4) set aside for woman-owned businesses,
• four (4) set aside for small businesses, and
• four (4) set aside for full-and-open competition.

Winning firms will be sponsored for Top Secret Facility Clearance (FCL) and assisted with obtaining additional bonding capacity. If you are interested in this rare opportunity, please email your firms’ capability and past performance to our Middle-East Control Group @ middle-east@aljucar.com NLT February 1, 2012. You will be contacted with further instructions.

www.aljucar.com