In the past 7 days we’ve seen a surge of government solicitations issued for aviation headsets or communication headsets all coming from the DLA Land and Maritime, Active devices division. In fact over 3,200 headsets have been requested, with an average cost of over $400.00 each could mean close to 1.3 Million dollars of sales to the contract awardees who win them.
Many situations can cause an increase in number of solicitations you see such as the demand of a product has increased, a vendor has contract delivery issues, or a sole source item is no longer available. Products designated as “sole source” (one supplier) can be problematic especially when there is only one manufacturer. Savvy government contractors typically seek out sole source opportunities as they provide competition to government buyers and possibly better products for the end user. Many small businesses and start-up companies increase their sales by searching for sole source government contracting opportunities.
Between May 3rd and May 10th 2018 DLA posted nine (9) solicitations requesting over 3,200 headsets from 4 different manufacturers. These products are listed as “Commercial off-the-shelf items” and that any alternate offerors provide data packages for evaluation. So as it looks the government is actively searching for new manufacturers of headsets. The majority of the requested headsets are currently manufactured by the David Clark Company.
The top 3 headset manufacturers selling to the US Military are Roanwell headsets (CAGE code 82872), Plantronics headsets, (CAGE 22447), and David Clark headsets (CAGE 71483).
Procurement history data shows that theses headsets used by the Defense Department (DoD) are purchased on a regular basis and that many of them are sole source. These Government solicitations posted the requests under the title “Headset – Microphone” or “Headset, Electrical” as that’s the name of the NSNs associated to the items. Most of the NSNs for headsets are listed as throw away items, when they fail they’re not repaired and new ones are purchased. Noise canceling headsets, pilot headsets or general communication headsets are used everywhere from helicopters to aircraft by everyone.
These solicitations are currently open for bid and can be found at www.bidlink.net or directly on the government website which they were posted on.
Reverse engineering and source approval are ways to increase your government sales. Successful government contractors look at the word sole source as an opportunity.
BidLink is an industry leader in providing government solicitations and procurement data which has been used by DoD and Commercial industries for the past 18 years.
The NAICS (North American Industry Classification System) is the standard used by the Federal Government in classifying business establishments; it replaced the Standard Industrial Classification (SIC) system back in 1997. Various agencies use the NAICS as a basis for their procurement programs however the NAICS is an “Industry” classification system and not a product classification system. It is neither intended nor well suited for this purpose. When classifying products the FSC or Federal Supply Class is used.
The current NAICS version is 2017. The NAICS is comprised of a 6-digit code with the first two digits designating the economic sector with an additional 4 digits to represent and complete the code. For example: A NAICS beginning with 33 represents the manufacturing sector. The industry classification code for Machine Shops is 332710.
You will see the NAICS being used in Government contracts and in Government solicitations. Typically when a Government contract award is entered into a federal procurement system the NAICS code may be one of the 100’s of codes associated to that contract award. When searching for Government solicitations you may also see the NAICS code used as it relates to a small business set aside status. Basically it provides the rules on the size of company that can win the award based on the companies listed NAICS classification in either company size “number of employees” or “dollars of sales”. The SBA’s (Small Business Administration) business size program publishes these in the table of small business size standards. For example: The NAICS code for Machine Shops is 332710 and the size standards table lists the number of employees at 500.
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BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries.
Air Force ROTC cadets from the University of Southern Mississippi ride in a TH-1H helicopter as part of Pathways to Blue April 7, 2018, on Keesler Air Force Base (U.S. Air Force photo by Andre Askew)
The Vietnam-era UH-1H helicopters commonly known as the Huey were modified into a new configuration the TH-1H, back in December 2004 to be used as a new training helicopter for student pilots. Today the U.S. Air Force is looking for a company to provide helicopter maintenance for the TH-1H fleet over the next 5 years.
The Air Force Life Cycle Management Center (AFLCMC) – Special Operations Forces/Personnel Recovery Division at Robins Air Force Base in Georgia issued a sources sought solicitation FA8552-18-R-0004 for Depot Level Maintenance of this fleet. This division provides acquisition and sustainment for all helicopters in addition to depot maintenance, modification, repair, engineering services, and contracting support for all fielded systems.
This Depot Level Maintenance (DLM) Government contract will require extensive knowledge on the Bell helicopter platforms. It will also require purchasing of spare parts, NSNs and finding manufacturers for obsolete parts for the program.
BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries.
A B-1B Lancer assigned to the 28th Bomb Squadron, Dyess Air Force Base, Texas, maneuvers over New Mexico during a training mission on Feb. 24, 2010. Dyess will celebrate the 25th anniversary of the first B-1B bomber arriving at the base with the Dyess Big Country Airfest and Open House on May 1, 2010. (U.S. Air Force photo/ Master Sgt. Kevin J. Gruenwald) released
The Department of Defense in the support of its many legacy systems requires a constant supply of spare parts. Items can be as simple as basic hardware such as nuts and bolts, electric generators or more complicated systems such as automated test equipment used in maintenance of an aircraft. Successful companies doing business with the Department of Defense (DoD) do more than simply search for bids relating to items they currently produce. They are constantly researching to see where they can expand their business. One simple way of doing this is to analyze an open solicitation of interest.
Below are some common questions and thought processes that result when reviewing a solicitation.
First we look at what is the solicitation asking for?
Government solicitation number SPRWA1-18-R-0029 is requesting a quantity of 10 (ten) Signal Generators NSN 6625-01-584-5846 manufactured by Anritsu CAGE code 1CPM8. These signal generators are used with the Radar/Electronic Warfare test stations in supporting the B1-B bomber aircraft at a depot repair location. It also notes that the item is sole source.
A few questions that come to mind
Sole source – some people look at this as opportunity, can I provide a better product, less cost.
The equipment is part of a test station, what other divisions use this kind of test station.
Who is the manufacture of this test station, can I sell to them.
Who’s buying the item and what are their buying habits?
The specific contracting location is the DLA Aviation, DLR Procurement operations – Aviation wing. This division of DLA is located at Robins Air Force base Georgia. They purchase Depot Level Repairables (DLRs) which are items repair depots use in maintenance, repair and overhaul operations.
1000’s of contracting offices exist within the U.S. Federal government what other offices perform the same function as this one, can I sell to them?
The better your knowledge of contracting locations buying habits the more successful you’ll be in government contracting; more about this in upcoming articles.
The solicitation says “Sole Source” what do I do now?
In many cases a solicitation will say “the Government intends to solicit and negotiate with only one source”, however they may also say “interested persons may identify to the contracting officer their interest and capability to satisfy the Government’s requirement with a commercial item” – This may be your opportunity to offer an equivalent item and possibly win a bid. The Government in most cases does not want only one source. If that one source goes out of business problems can arise.
Analyze past sales based on National Stock Numbers (NSNs) and part numbers.
This Solicitation listed an RFQ for 10 NSNs 6625-01-584-5846. In this case this NSN represents several part numbers that make up this NSN. An NSN is simply a 13 digit number that represents an item of supply. The NSN can represent something as simple as a ½ inch nickel-copper plated bolt or a complete system or specific configuration containing multiple items as it is with this NSN.
This NSN 6625-01-584-5846 shows a part number of MG3692-IATE. This part number actually represents a configuration of other items: MG3692C – Synthesizer, MG3690C/1A – Rack Mount, MG3690C/2A – Attenuator… according to the solicitation.
Further research on the first part number MG3692C shows a catalog price of $19,467.68 each, with the description of Signal Generator; 2-20 GHZ.
So the next time you look at a solicitation look beyond “Can I supply this item” and try doing a little research to find some new business opportunities.
In the process of helping out our clients over the past 18 years generate new government sales we’ve demonstrated various ways to search for government bids.
BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries.
A Commercial or Government Entity code (CAGE code) is a unique identifier used in various ways throughout U.S. Government and Department of Defense (DoD) procurement and cataloging operations. It’s a 5 (five) digit alphanumeric code associated to an individual, company, organization or government, similar to a TIN or SSN. It provides an easy way to represent the entity in government databases.
The CAGE code is listed on awarded government contracts, and in government part number databases. It gives both individual and government the ability to search and relate multiple databases based on CAGE codes. It’s used to find suppliers or manufacturers of National Stock Numbers (NSNs). Companies who wish to sell to the DoD often use CAGE codes when searching for government solicitations.
Why do I need a CAGE code, and how do I get one?
A CAGE code is required for anyone interested in selling to the DoD or U.S. Federal Government, and is easy to get.
Getting a CAGE code only takes a few days (if all your information is correct) and is done by registering at the SAM government website https://www.sam.gov/. This is the official source for CAGE code assignment and there is absolutely no cost for it.
Whether locating part numbers, manufacturers or past governments contracts AKA procurement history, the use of CAGE codes can be extremely beneficial.
BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries for the past 18 years.
On Tuesday February 6, 2018 Space Exploration Technologies Corp (SpaceX) launched their Falcon Heavy rocket into space with a Tesla Roadster as their payload with “Starman” as the driver of the car.
“Silly fun things are important” Elon Musk said during a press conference following this historic launch. “Normally for a new rocket they’d launch like a block of concrete or something like that and that’s so boring, and I think that just the imagery of it is something that’s going to get people excited around the world”.
SpaceX began their business in March of 2002 and a short time later received their Government CAGE code 3BVL8 in September of 2002. Companies wishing to do business with the U.S. Federal Government, DoD or any of its agencies are required to get a CAGE code.
On September 26, 2003 SpaceX was awarded their first government contract for Basic space flight research with the Naval Research Laboratory. The contract number was N00173-03-C6021 for a total $500,000.
In 2014 SpaceX filed a Complaint in the United States Court of Federal Claims alleging, that the United States Air Force has entered into an unlawful contract with United Launch Systems, a joint venture between The Boeing Company and Lockheed Martin Corporation, to procure rocket launch vehicles on a sole source basis, pursuant to the Air Force’s Evolved Expendable Launch Vehicle (EELV) Program.
The above complaint probably occurred due to research as it related to past U.S. Government contracts, in this case U.S. Air Force contracts. Any company selling to the DoD, or U.S. Federal Government will benefit from this kind of research and is something that successful Government contractors do on a continuous basis. Data and research helps show the path to success answering questions such as who are my competitors? What price did they charge?
SpaceX is now one of the contractors in the Air Force EELV Program. On April 27, 2016 the US Air Force, Space Missile Systems Center division in El Segundo Calif. awarded SpaceX a contract for EELV Phase 1A GPS III Launch Services for an amount of $82,700,000.00, the contract number was FA8811-16-C0001.
Data gathered from multiple U.S. Government sources is one way to see the best picture. We also found some FAA data relating to launch vehicles for commercial uses showing two of Tesla’s competitors:
All three companies provide orbital vehicles for commercial purposes; they are ULA, LMCLS and SpaceX. Each operates at the same launch site at CCAFS VAFB. The rocket, payload and commercial estimated price per launch are as follows:
Atlas V – Mass to GTO (kg) 3,460 $110M
Delta IV Mass to GTO (kg) 3,060 $164M
Falcon 9 Mass to GTO (kg) 4,850 $61.2M
As you can see there is a drastic difference between the pricing so when competing against an open Government solicitation knowing this information can be valuable.
If your company large or small wishes contract with the U.S. Federal Government, the more data you review the better off you will be.
The majority of this articles content came from data contained within the BidLink database. BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries for the past 18 years.
P.S. Elon one suggestion, add some solar electric charging stations in space for “Starman” to recharge at. – Jim
Comments? Contact Jim at jimnews@bidlink.net
The military and commercial world spends countless hours seeking out competitors. Whether it’s looking for a lower price/alternative manufacturer, an obsolete part no longer available, or if you’re a parts supplier / parts manufacturer your needs may be different. We get questions like: How many does the US Military buy and for how much? Is the military buying my competitors product?
Someone producing or selling an item with similar salient characteristics can be defined as a competitor. Searching for a competitor may result in finding a better product/price and perhaps other benefits such as a newer version – longer lifetime or lower failure rate. So the deeper you look, trolling through more data the better your answer will be.
If your research begins with Federal government procurement websites such as FBO or USA Spending that’s a good start but not nearly complete. Countless federal acquisition systems exist and should also be reviewed for a more accurate answer. This article quickly touches the kind of data found in using acquisition methods such as GSA Schedules and Blanket Purchase Agreement or BPAs.
Government sales and detail purchase data may or may not be reported to the various public government websites so FOIA requests with all the government purchasing departments may be necessary to find your answers.
Here is one example showing a National Stock Number (NSN) item purchased by DoD and various government departments over the past 18 years. The NSN in question was 3540-00-344-8642 it’s an item used in shipping departments to carry and dispense steel strapping coil used for securing wood crates and similar items, it’s a simple hand truck. Several questions were answered.
Using the BidLink, we were able to quickly determine that this NSN 3540-00-344-8642 item name “Hand Truck, Strapping Coil” has been purchased every year with varying quantities to various government departments supplied by only a handful of companies. The most recent sales have been through GSA schedule and BPA contracts. Specifically GS-07F-DA222 and GS-02F-0125U found under GSA Schedule categories 51 V Hardware Superstore and 81 I B Shipping, Packaging and packing supplies. Most recent prices ranged from $188 to $225 each.
The two sellers of this NSN currently provide product from different manufacturers specifically Universal and USP.
Caprice electronics and Complete packaging & shipping supplies are the two most recent suppliers selling the majority of this item.
If you were to guess which company sells more of this NSN, a Hand truck an item used in the shipping department – Well if you guessed “Complete packaging & shipping supplies” you would have been wrong it’s Caprice Electronics and the data shows that. So when trying to find competitors look at much data as you can.
BidLink’s Market Research tool and exclusive data has been used by DoD and Commercial industries for the past 18 years. – Jim
The Mine Resistant Ambush Protected Expedient Armor Program
Imagine a military without fasteners, it would just fall apart.
Fasteners are an integral part of the U.S. Military; in fact every soldier’s daily life depends on the availability and reliability of them. Each time a military unit deploys they pack up a myriad of equipment and supplies for the purpose of not only supporting the mission at hand but to provide every imaginable item to support daily life. These supplies and equipment are completely consumed, maintained, repaired or reused and many of them would not exist without fasteners.
Lets look at the different ways the Defense Department consumes fasteners.
Repair and Maintenance
Every piece of equipment has a lifetime which may be extended with scheduled maintenance. This maintenance can be performed by the military or through an appointed government contractor. Billions of dollars worth of government equipment are in some state of repair or overhaul at any given time. Repair or maintenance can occur on site, at local depots, or be shipped to one of the 20 major DOD repair depots in the U.S.
TM Screws
Figure 1. This diagram (part of a much larger technical manual) is used to illustrate the parts breakdown for a very specific piece of equipment. Each labeled item has a very specific set of rules, such as which are to be repaired or replaced. There are 24 unique fasteners listed in this illustration which are used on other assemblies. The NSN 5305-00-725-2317 in this list is used on 15 other vehicles including the HMMWV model M1045A1. General guidance for maintenance and repair of military equipment are described in technical manuals.
When items are overhauled, parts are either refurbished or replaced. One way the military supplies parts is in kit form. For example the NSN 2590-01-305-2166 is a parts kit for a winch, it contains 9 different types of screws, 6 different nuts and washers and two different types of cotter pins. The kit sells for $7,350 each. Repairs at military depots may use these kits or pull from a much larger local stock of fasteners kept in their stock bins.
Department of Defense
The four major agencies operating under the Department of Defense have a constant need for hardware such as screws, nuts, bolts, washers and rivets. Agencies included are the Defense Logistics Agency, Air Force, Army and Navy (which includes the Marines). There are currently 1,438 contracting offices which issue solicitations through these 4 agencies.
The Defense Logistics Agency (DLA) is the top agency for purchasing fasteners, issuing the majority of the solicitations. Typically DLA buys are shipped to one of their 25 distribution sites located around the world or direct to the end user. Repair depots (the actual consumers of these items) can then replenish their stock by sending requisitions to the DLA pulling from these distribution centers. Sometimes the depot or base will create and post a solicitation for the item.
To find DLA solicitations, set up searches using standard classifications such as the Federal Supply Class (FSC) . Classes of interest for fasteners are 5305, 5306, 5307, 5310, 5325, which are screws, bolts, studs, nuts & washers and fastening devices respectively.
Prime Manufacturers
Although the Defense Department issues millions of solicitations direct to vendors for needed parts, for major systems they prefer to buy through prime manufacturers. These companies will subcontract to thousands of vendors, that supply the parts needed to make and support aircraft, engines, ships, tanks, vehicles and communications equipment. Familiar names like, Boeing, Lockheed, Motorola and Pratt & Whitney are all prime defense contractors.
These companies are prime targets for people who wish to sell to the defense department, but abhor the bureaucracy of government sales. Prudent contractors can search DOD procurement history to find systems that contain components which they can supply. Vendors can contact prime contractors directly and offer their products. Many fastener suppliers already possess skills and familiarity with specifications of hardware used in major military systems or equipment.
Some companies who sell through prime contractors may also sell spares directly to the military. A company may have produced a screw for Lockheed, who in turn used that screw in an end item sold to the military. When the Defense Department orders more of that screw, it may appear under a Lockheed part number, not the original manufacturer’s. This is useful information when searching for solicitations to sell directly to the DOD.
Direct Sales to End User
There are military bases everywhere, and sometimes demand for items arise, which must be purchased immediately. These are designated as a emergency buys. There are currently over three million government/military personnel who possess a government credit card which allow them the ability to purchase items without issuing a public solicitation under the right circumstances.
How They Buy
There are a number of ways parts can be purchased by the military.
Direct Procurement – The Defense Department issues a request for competitive quotes directly from manufacturers. This can be issued through the Defense Logistics Agency, or from the individual agency with the requirement. Contractors can search for these solicitations, determine if they can manufacture the parts competitively and submit a bid.
Prime Contracts – Parts are purchased through the prime contractors, which are often supplied by subcontractors.
Credit Card – For urgent purchases, agencies can use a credit card to buy parts directly from manufacturers or distributors.
Knowing who and how they buy is the first step toward selling to the Defense Department. Companies can register to sell directly to the DOD, or sell to companies who have already won defense contracts. Either way, the government can be a consistent source of business for U.S. companies.
Other Sales Opportunities
Foreign Military Sales (FMS) is a program where U.S. Defense systems and services are sold to ‘friendly’ countries. Brokers both foreign and domestic are constantly sourcing items (part numbers /NSN’s) for many of these older legacy systems. Seeking out these suppliers or advertising your capabilities can also help increase your fasteners sales.
BidLink.net is a provider of defense industry information for contractors worldwide. This data includes millions of defense contracts, procurement history, part numbers and vendor details. This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry. BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.
This article was written exclusively for Fastener Journal. http://www.fastenerjournal.com
Unmanned Aircraft Systems (UAS) are a hot topic for both the U.S. Military and the FAA. According to the FAA there are some 100 U.S. companies, academic institutions, and government organizations developing over 300 UAS designs. This unmanned aircraft industry is in its infancy; currently the majority of the users of these systems are military. Unmanned aircraft systems are part of the larger group of unmanned systems which include unmanned ground systems, unmanned maritime systems and their related technologies. The Department of Defense is aggressively developing unmanned systems and technologies and has slated plans out till the year 2034.
Unmanned aircraft systems have experienced an explosive growth within the DoD, providing highly capable intelligence, surveillance, and reconnaissance (ISR). While DoD is currently the primary user of these systems interest is growing within federal agencies, state and local governments. Potential uses such as law enforcement, firefighting and commercial real estate photography just to name a few. Sizes of current UAS’s range from only few inches to over 250 feet long, some can remain aloft for 30 hours or more.
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MQ-9 Reaper – Unmanned Aircraft System
The U.S. Air Force has procurement requests planned for 48 units per year over the next 5 years until 2015. The total budget request for UAS in fiscal year 2011 is $1,079,595,000 dollars. This procurement cost includes all components of the MQ-9 weapon system.
The MQ-9 Reaper is a fully operational UAS consisting of the aircraft, sensors, ground control station, (GCS) satellite link, spare equipment along with operations and maintenance crews for deployed locations. A typical crew consists of a rated pilot to control the aircraft and command the mission and an enlisted aircrew member to operate sensors and weapons plus a mission coordinator, when required.
MQ9 Reaper Control Room
The MQ-9 baseline system carries a robust suite of sensors for targeting including infrared sensor, laser-guided munitions, and synthetic aperture radar; color/ monochrome camera, laser designator and a laser illuminator. Each MQ-9 aircraft system can be disassembled and loaded into a single container, transported in the C-130 Hercules or larger aircraft, for deployment worldwide.
This past May (May 27, 2010) the Army recognized a milestone of 1 million hours of flight for unmanned aerial systems.
Based on the numbers and reports it looks like unmanned aircraft systems are here to stay, providing opportunities to companies both large and small.
* Writers are free to paraphrase or re-publish this article as long as they credit bidlink.net and link back to the original.
Photo credit: MQ-9 Reaper_081103-F-8477M-991|Capt. Sam Allen operates the controls of a battlespace simulator in the Unmanned Aircraft Systems Fundamentals Course’s laboratory. Captain Allen is an instructor with the 563rd Flying Training Squadron and the UASFC director at Randolph Air Force Base, Texas. (U.S. Air Force photo/Rich McFadden)
The U.S. Air Force requests for over 100 new aircraft with 13 different models in their Fiscal Year 2011 Budget.
On the top of the list by volume is the MQ-9 Reaper an unmanned aircraft system (UAS) with a total request of 48 units. The basic MQ-9 system consists of the aircraft, sensors, a control station, communications equipment, weapon kits, support equipment, simulator and training devices, initial spares and training. The total cost for all 48 units is just over one billion dollars. The prime contractor is General Atomics-Aeronautical Systems Inc.
The Joint Strike Fighter (JSF) F-35 is second with a requested quantity of 23 aircraft at a total cost of 4.5 billion dollars. The F-35 is the much talked about next generation strike fighter with Lockheed Martin as prime contractor, while Northrop Grumman and BAE Systems are principal partners in the project.
Air Force FY2011 Aircraft orders (top 6 by quantity)
The Light Mobility Aircraft program is third with a requested quantity of 15 and a total program cost of 65 million dollars. This program plans to acquire Commercial-Off-The-Shelf (COTS) aircraft to satisfy the USAF light mobility mission requirement. The new program has no chosen manufacturer as of yet. According to Government data there are currently 22 interested vendors.
The USAFA Powered Flight Program is requesting a quantity of 12 Commercial-Off-The-Shelf (COTS) aircraft for the United States Air Force Academy (USAFA) in Colorado Springs, CO. with a program cost of about 4 million dollars.
The RQ-4 Global Hawk is an unmanned aircraft system with a total procurement cost of just over 1 billion dollars for 4 units. This aircraft is fully autonomous with a range of over 9000 nautical miles.
The CV-22 Osprey also on the list for a quantity and a cost of just over 500 million dollars for 5 complete systems. The CV-22 is a Special Operations Forces (SOF) variant of the V-22 vertical lift, multi-mission aircraft.
In the past 7 days we’ve seen a surge of government solicitations issued for aviation headsets or communication headsets all coming from the DLA Land and Maritime, Active devices division. In fact over 3,200 headsets have been requested, with an average cost of over $400.00 each could mean close to 1.3 Million dollars of sales to the contract awardees who win them.
