Category: Industry News

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

Comments? Contact Jim at jimnews@bidlink.net

www.bidlink.net – 866-226-4488

Government sponsored trade shows are B2G events that bring together buyers and sellers.  On the surface, it sounds like a great idea to increase competition for Government business. However, many companies are finding that the leads generated from these shows do not turn into business.

B2G shows are often packed with buyers, who process requisitions from managers and end users.  Their job is to solicit items and services, ensure competition where possible, and make sure the procurement adheres to the FAR.  Buyers can invite new companies into a procurement, but they do not decide what products and services are needed by the Government.

SPY PHONE BOX

At a recent trade show, the booth next to us at BidLink was a company selling a secret spy-phone signal blocking box, for top secret conference rooms.  It was basically a cone-of-silence for cell phones, with radio signal blocking, sound deadening and speakers that generate white noise.  Secret agents could put their phones in the box, close it, and have private conversation without the prying ears of spies. People in secret meetings can honestly say, “Honey, the phone never rang. I swear”.  It was a great idea, that will never gain traction at the typical B2G show.  This is because buyers, the most common attendees at B2G shows are not the folks who would make a decision that the Government needs a few secret spy-phone blocking boxes.  Program managers and other higher-ups have this authority, but it’s simply not the buyer’s job to decide what the Government needs.

A few booths down, there was a company selling industrial supplies. He had a catalog of over 10,000 items; everything from generators, to wash buckets, to paint, to industrial toilet paper.  B2G Shows are perfect for this type of company.  Drive around any military base and you will see hosing units, stores offices, and lots of people.  These people need every day things, and the Government buys lots of them.  A vendor selling commonly purchased items could forge a new relationship with many buyers at a B2G show.  Especially if they are 8a or small business.  Buyers love to bolster their set asides.

BETTER NETWORKING

We see lots of companies selling IT solutions at these shows.  They sell innovative solutions to Government problems, including staffing, supply chain, and even BidLink, who provides a tool for sourcing, pricing, and finding out almost anything about an NSN.  These services do not have a clearly defined market in the Military, but they provide efficiency that could save the Government money and time.

If you are trying to introduce something new to the Government, you may find it difficult to get any traction from a Government trade show.  This is because most of the attendees at these shows are either buyers, who only buy items that are requisitioned, or end users with no buying authority. We have met with very few program managers at these shows.  Program managers have the authority to decide if a new product or service could be of use to their group.

The idea of getting business and Government together make sense. Companies have difficulty reaching the right contacts in Government, so hosting meetups is a great idea. The disconnect is that sometimes these shows are filled with people who alone, cannot make the decision to buy your new product or service.

What might improve these trade shows would be for program managers as well as several of their personnel to attend the show together.  Often the program manager might not directly use the product or service, but has the authority to decide if it should be purchased. Program managers roaming a trade show with a couple of end users, who can evaluate the service would provide a powerful combination.  Combining the need to buy (end user) with the purchasing authority (program manager) allows companies with new ideas for the Government to showcase their wares to folks who may actually buy what they offer.

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 search and notification services, competition analysis as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.

For the news and tools to compete in the defense industry, go to www.bidlink.net.

By Tom Gerbe,  Defense Industry Analyst.

By Tom Gerbe – Defense Industry Analyst – BidLink.net

The U.S. Defense Department has over 57,000 open solicitations that have gone unanswered.  Among these items are cable assemblies that could be produced by informed manufacturers.  As a data analyst for BidLink.net I have been combing through opportunities for readers of “Wire and Cable Technology” and have located a number of big ticket items for which the Government cannot find suppliers.

Many defense contractors aggressively compete for the lowest price in order to win bids, fighting against anywhere from two to twenty companies on each solicitation.  There is an easier way — find bids for which there is no competition. One way to accomplish this is to find unanswered bids.  In some cases current suppliers no longer manufacture a part for which there is still a need.  In the examples below, there are several items which were designated as “small business” meaning that the defense department is required to purchase the part from a company under a certain size.  A large company may have supplied the item in the past, but now it must go to a small business. This can spell opportunity for contractors who are paying attention. 

Below are a list of solicitations from the Defense Department that are past the closing date but remain unanswered. Expired bids can be researched using the Quick Search at BidLink.net.

The prices above span a wide range, likely due to the lack of competition for these items.  If the part is a critical item and there is only one company that can supply it, the Government will pay any reasonable price to obtain the part.  This is reflected in the procurement history for the items above.

When a bid goes unanswered, it stays open even after the closing date.  Over time, thousands of these unanswered bids remain in the system waiting for someone to respond with a quote.  In some cases aircraft can remain grounded and equipment can go unused because the Government cannot find a qualified supplier.  If you have not made an item for the Government before you may have to submit a Source Approval Request (SAR) to the agency in order to receive approval to sell the part to the Government.

Due to the sequester, the defense budget is shrinking causing companies to find new ways to compete.  Locating solicitations for which there is no current supplier become a treasure trove for companies that know how to locate this business.

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 search and notification services, competition analysis as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.

For the news and tools to compete in the defense industry, go to www.bidlink.net.