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
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.
U.S. Navy Petty Officer 3rd Class Michael Rack; Dili, Timor-Leste, June 18, 2011. Photo by Petty Officer 3rd Class Christopher Farrington
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.
Solicitation #
Item name
Quantity
Stock Number (NSN)
Price Range (ea)
SPE4A013T0918
Cable Assembly
24
5995015219577
$2,888 – $4,631
SPE4A512T4824
Cable Assembly
7
5995015219577
$541 – $881
SPE4A512T5555
Cable, Adapter
2
5995013310791
$1,080 – $2,657
SPE4A013T0599
Cable Assembly
1
5995013622192
$3,292 – $16,336
SPE4A513Q2480
Cable Assembly
7
5995014551297
$12,566 – $16,332
SPE4A513T8337
Cable Assembly
19
5995015516163
$1,124 – $1,172
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.
WC-130J Hercules aircraft weather reconnaissance loadmaster. DoD photo by Staff Sgt. Manuel J. Martinez, U.S. Air Force. (Released)
By Tom Gerbe – Defense Information Analyst – BidLink.net
Small businesses have an uphill battle when trying to compete with big companies for defense contracts. Government officials know that small business participation not only helps local economies, but increases competition therefore reducing costs for the military. Undersecretary of Defense, Dr. Ashton Carter recently stated that, “Real competition is the single most powerful tool available to the department to drive productivity”. A number of initiatives are in place to promote “Real Competition”.
Twelve memoranda have been issued over the last three years from the president on down, outlining rules and methods for increasing competition in defense contracting. All of this is designed to deliver better value to the taxpayer and warfighter by improving the way the department does business. At a time when all departments are cutting expenses to reduce the deficit, program managers throughout DOD have a real motivation to act on these initiatives.
PROMOTE REAL COMPETITION
The following are recommendations from Dr. Ashton Carter on how to promote competition:
Present a competitive strategy at each program milestone
Remove obstacles to competition
Allow a reasonable time to bid
Require non-certified cost and pricing data on single offers
Require open system architectures and set rules for acquisition of technical data
Increase dynamic small business role in defense marketplace
Government buyers have a responsibility to promote competition wherever possible. If you know the rules, they can be convinced to un-bundle contracts, consider alternative suppliers and even set-aside contracts exclusively for small business. The key is understanding the Federal Acquisition Regulations (FAR) and how they can be used to benefit your company.
BUNDLED CONTRACTS
In some cases, your company may produce a part which is often included in larger, long-term contracts. The Small Business Reauthorization Act of 1997 defines contract bundling as “consolidating two or more procurement requirements for goods or services previously provided or performed under separate, smaller contracts into a solicitation of offers for a single contract that is unlikely to be suitable for award to a small business concern.”
The act requires that each federal agency, to the maximum extent practicable:
structure contracting requirements to facilitate competition by and among small business concerns, taking all reasonable steps to eliminate obstacles to their participation; and
avoid unnecessary and unjustified bundling of contract requirements that may preclude small business participation in procurements as prime contractors.
In some cases, requirements are bundled together for years even though buyers are supposed to re-evaluate the market on a periodic basis. At the time of the initial requirement by the Government there may have been only one supplier for a part, while years later a number of small business may be able to compete. As a potential bidder on a contract, it is your responsibility to advise the buyer that you would like to compete for this business. If you are successful, buyers may un-bundle a long-term contract for many items and solicit them separately in order to promote more small business competition. The Government is required to justify contract bundling and this justification can be challenged by a prospective bidder.
COMPETITION ADVOCATE
When all else fails, each program provides a competition advocate. According to FAR 6.502 Competition advocates are responsible for promoting the acquisition of commercial items, promoting full and open competition, challenging requirements that are not stated in terms of functions to be performed. They are also responsible for challenging barriers to the acquisition of commercial items and full and open competition such as unnecessarily restrictive statements of work, unnecessarily detailed specifications, and unnecessarily burdensome contract clauses. A memorandum from the Office of the Undersecretary of Defense states a commitment to, “Reinvigorate and expand the role of the competition advocate and reinforce the importance of competition to everyone involved in the acquisition process”.
We encourage you to study the Federal Acquisition Regulations and learn your rights as a contractor. Many initiatives have been put in place to help small contractors compete. Understanding the rules is the first step toward bringing Government business to your 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.
By Tom Gerbe – Defense Information Analyst – BidLink.net
Ahead of the sequester, the Defense Department has already implemented significant cuts in defense spending. Defense spending dropped $15.1 Billion from FY 2011 to 2012 and this is before the eight percent across the board cuts are implemented starting March 1. Unlike the sequester, the reduction of spending in 2012 was not evenly distributed through the top four major procurement agencies. Data from the procurement history database at BidLink.net shows that the departments of the Army and Navy saw a reduction of $ 18.5 billion and $ 9.9 Billion respectively, while the Air Force and Defense Logistics Agency saw increases of $4.1 Billion and $7 Billion.
US Defense spending 2009-2012
A significant increase in spending for airframe structural components (Federal Supply Class 1560) was noticed, rising $3.3 Billion, $4.8B and $5.5B for 2010, 2011 and 2012. Many large contracts were awarded to prime contractors including Boeing (NYSE: BA), Lockheed Martin (NYSE: LMT), EADS North America, McDonNell Douglass, Northrop Grumman (NYSE: NOC) and MD Helicopter. Boeing received the largest contract for this supply class in 2012, through a modification to contract number N0001909C0022 for the purchase of eleven P-8A Multi-Mission Maritime Aircraft. This modification for $1.9 Billion was issued in September of 2012 to be completed by May 2015. Eighty Six percent of this contract will be executed in the United States in areas including Seattle, Washington; Baltimore, Maryland; McKinney, Texas; Greenlawn and North Amityville, New York.
There was a surge of spending in the third quarter of 2012, followed by a twenty two percent drop in the fourth quarter according to the Bureau of Economic Analysis. Some of the quarterly decline is a cyclical drop due to the fiscal year ending in September, but much of the annual drop is a decrease in spending. This reduction in defense spending is primary cause of the almost 1.3% decline in GDP.
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 Information Analyst – BidLink.net
I have spent the last year sifting through about sixty million records of Government contract data from hundreds of different sources in an attempt to build a more comprehensive database of Defense Department buying activity. At BidLink, we consolidate information from many sources because often times a single source does not offer a complete picture. In some cases agencies will refuse to disclose pricing, some Government sources are missing huge swaths of data and some provide inaccurate information. By comparing data from many sources we are able to paint a more accurate picture of Government buying activity.
This data overhaul was finished just in time for the Top 10 Fastener Defense contractors of 2012. Looking at fastener buying activity by the Defense Department over the past four years we can clearly see a significant decline. This is due to the Government’s reduction in overall defense spending which started in 2009. According to the Bureau of Economic Analysis, the Pentagon cut defense spending by a staggering 22% in the fourth quarter of 2012. Some of the quarterly decline is a cyclical drop due to the fiscal year ending in September, but much of the annual drop is a decrease in spending. This reduction in defense spending is primary cause of the almost 1.3% decline in GDP.
DLA Purchases of Fasteners 2009-2012
An analysis of the competitive climate reveals that Herndon Products, Inc. is still the top fastener supplier to the Department of Defense (DOD) with a significant lead over the second place contender. Herndon Products based in O’Fallon Missouri generates $42 Million in revenue with approximately 85 employees. The Small Business Size Standard for Hardware Merchant Wholesalers, naics code 423710 is 100 employees. This is the threshold for small business designation which provides a competitive advantage over large companies.
Top 10 DLA fastener suppliers for 2013
The largest fastener contract won by Herndon Products is long term contract # SPM5AZ09D0004, which was awarded on 10/20/2008; It covers an array of bolts, screws, rings, nuts and washers. There were fourteen competitive bids for this contract. Not unexpectedly, many of the top companies are aerospace suppliers including Raytheon, a new addition to the top 10 list.
Examining total sales, Herndon Products (CAGE code: 3G1W3) is in the number one spot with almost $12 Million in contracts to the Defense Logistics Agency (DLA). Columbia Nut and Bolt has been displaced by Wesco Aircraft Hardware as the second place winner with just over $7 Million in sales.
Top 10 DLA fastener suppliers for 2013 by sales
Adept Fasteners moved up four spaces to the #6 position from last year. New to the list for 2012 are Goodrich Corporation, Dialogic Fasteners and Sikorsky Aircraft. In 2011, the top contractor sold $13.8 Million in fasteners to DOD while the #10 position earned $3.6 million, as compared to $11.8 Million and $2.7 Million in 2012.
Although the decline in defense spending is dramatic, some of this is in preparation for the upcoming sequester which was supposed to take effect in January 2013. This could mean stabilization in defense spending going forward. While discussing the Pentagon’s effect on GDP in an e-mail release, Paul Ashworth from Capital Economics called it “The best-looking contraction in US GDP you’ll ever see”, expecting that this may be a one-time blip due to the impending belt tightening.
Another reason according to Michael O’Hanlon at the Brookings Institution is that Congress was late in setting the defense budget for 2012. The budget was finally pieced together through continuing resolutions passed in the winter. For a significant part of the year, the Pentagon did not know exactly how much it could spend.
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, procurement history 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. Comments? Send them to news@bidlink.net.
Air Force Capt. Bachelor – a KC-10 Extender aircraft pilot
by Tom Gerbe – Defense Information Analyst – BidLink.net
With the fiscal cliff rapidly approaching, defense contractors will need to become more competitive as defense budgets shrink. BidLink recently analyzed defense spending by competition from 2003-2012 and discovered that almost half of the contracts awarded from the Defense Department were not competed.
Defense Spending by competition FY 2003-2012
This pattern varied by industry with makers of large systems including aircraft dominating markets, while manufacturers of clothing, refrigeration equipment and replacement parts experience a more competitive environment.
Competitive initiatives taking hold
The Defense Department is committed to increasing competition by delivering more contracts to small businesses.
Percentage of competition for defense contracts by year 2003-2012
Four BQM-74E target drones launch from the USS Cowpens
By Tom Gerbe – Defense Information Analyst, BidLink.net
Defense cuts are not bad for everybody. Recently, we analyzed sales statistics for a broad base of industries including aerospace, tubing and piping, fasteners, safety equipment and more, looking at companies who win the most business. Industry by industry there is a distinct pattern, where large companies are trouncing the little guy by winning the lions share of contracts. For example, in an analysis of the top 10 suppliers of Tubing and Piping to the defense department only two companies, Rudy & Associates and BB&G Enterprises are small businesses.
When a company registers to sell to the Government, they must declare the company size in number of employees and annual sales. The Government uses this number to classify companies as small or large business. According to the Small Business Administration, small businesses account for about 50% of GDP. As a result, they want to support small business as much as possible.
Cutting Defense Spending
Small business competition may help the Defense Department achieve their goal of $487 billion in cuts over the next 10 years. DOD is so dedicated to promoting small business development that many Government buying centers have their own SBA offices. The stated goal of the DOD small business representative is “To create maximum opportunities for small businesses within DoD acquisitions.” Many contracts are awarded to large corporations that are the sole suppliers of billions in parts and services to DOD. Competition from small businesses can help reduce the cost of acquisition.
To provide support for the small business community, the Defense Department sets aside a percentage of overall contracting opportunities to companies under certain size. These contracts are often called, “Small Business Set-Asides”, because they are reserved for companies under a certain size. The Department of Defense has a stated goal of awarding at least 22% of contracts to small businesses in 2012, with the intent to increase that number each subsequent year. Each solicitation will specify the small business size, often 500 or 1,000 employees, under which the company must qualify in order to win a small business set-aside contract.
Winning Small Business Contracts
If a solicitation is set-aside, small business are chosen over large businesses, even if the large business submits a lower bid. In the case where the solicitation does not explicitly state a small business requirement, contractors can request the solicitation be re-classified if they qualify. This can be accomplished by contacting the small business representative for the agency that offered the solicitation.
If a small business is competing against a large company, a little known regulation can be used to your advantage:
48 C.F.R. 19.502-2 Total small business set-asides. (a) Each acquisition of supplies or services that has an anticipated dollar value exceeding $3,000, but not over $100,000 is automatically reserved exclusively for small business concerns and shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery.
If the contracting officer receives only one acceptable offer from a responsible small business concern in response to a set-aside, the contracting officer should make an award to that firm. If the contracting officer receives no acceptable offers from responsible small business concerns, the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on an unrestricted basis.
Essentially any small business could take contracts from a large business as long as two or more small businesses compete. It might be worth while to notify one of your small business competitors about a contract just to take it from a big fish. At least two small companies may be on equal footing, whereas the large company can buy huge, discounted quantities or open factories overseas.
Small businesses have quite a bit of leverage against large companies when competing for Government business. By locating the right resources and knowing the rules, prudent contractors can find opportunities and win contracts. Small business is the backbone of the American economy. With the right tools and talent there are opportunities everywhere.
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, procurement history as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.
By Thomas Gerbe, Defense Information Analyst, BidLink.net
As we approach the one year anniversary of the 2011 Debt ceiling debate, the House of Representatives recently passed H.R. 4310: National Defense Authorization Act for Fiscal Year 2013. The total allotment for FY 2013 is $687 Billion, down $31.8 Billion from FY 2012. Part of this reduction was accomplished by streamlining procurement operations and cutting overhead. I.T. Resources are being consolidated, and the DOD’s reliance on outside contractors is being reduced.
One stated goal is to promote “real competition” whenever possible to drive productivity. Although the DOD issues millions of individual solicitations each year, a large amount of the defense budget goes to “prime contractors”. These are large companies including Lockheed Martin, Honeywell, Northrop Grumman, Pratt & Whitney, Raytheon and many others. They hold exclusive, long-term contracts for complex systems which last for years. Due to the nature of these systems, it is unlikely that any small business could compete for such contracts. However, DOD wants small business participation, which is accomplished by requiring large contractors to provide a “small business subcontracting plan” (FAR 19.7). This requires that large businesses subcontract a portion of the contract value to the small business community on contracts over $500,000 that have subcontracting possibilities.
According to HR 4310 section 1631, “The Governmentwide goal for participation by small business concerns shall be established at not less than 25 percent of the total value of all prime contract awards for each fiscal year and 40 percent of the total value of all subcontract awards for each fiscal year”. Small business concerns include companies owned and controlled by service-disabled veterans, socially and economically disadvantaged individuals and women, as well as businesses under a specified number of employees or annual income. Size limits vary depending on commodity class, but the threshold is usually less than 500 employees. The Government is committed to expanding participation by small businesses by increasing the percentage of contracts offered to small businesses each year. Each Government program has a small business representative who can assist companies with obtaining contracts.
Small businesses that want to compete against large companies have additional leverage. If a large company is regularly awarded contracts on a particular part and two or more small businesses submit offers on an upcoming solicitation, they can ask to have the solicitation “set-aside” exclusively for small business. According to a BidLink study in December 2011, 28% of defense contracts for fasteners are awarded as sole source, meaning that only one company submitted an offer. This is exactly what the Government is trying to avoid.
ONE BIG BOLT
For Fastener Journal readers, I always like to find a recent order for a part that might be interesting. This month we will cover a part sold to DLA Aviation by Columbia Nut and Bolt, LLC (CAGE code 51792). The company is a large business with a reported 700 employees earning $20,000,000 annually. Columbia nut and bolt, based in Moonachie, NJ has a number of long-term contracts that provide a regular flow of business from the military.
This one is a prevailing torque, double hexagon, self-locking nut made from cobalt alloy. It has a height of 0.675 inches and an outside diameter of 0.950″. It has a surface treatment in compliance with MIL-C-8837 TY 2 and a dry film lubricant. The bolt is used on the Apache AH-64, and AH-64-D Longbow helicopter, and sells to DOD for a whopping $52.24 ea. This part was ordered using long-term contract SPM5AZ-08-D-0022, which the company won on July 29, 2008 and extends through July 2013. There was only one competing bid. The most recent delivery order was on May 10, 2012 for 303 units totalling $15,828.72. The Defense Department projects that it will purchase 4,691 units in 2012 and almost the same amount in 2013.
CONTRACT BUNDLING
It is a common practice for the Government to bundle lists of items into a single contract. Although bundling can potentially reduce costs or improve performance for federal agencies, it can also limit opportunities for small businesses to receive federal prime contracts. As a result, there have been a number of initiatives to limit contract bundling including the Small Business Act (P.L. 111-240) as well as a number of bills from the 112th congress. These initiatives include expanding the power of SBA to work with contracting agencies to restructure bundled requirements.
Even if your shop cannot produce a 1″ diameter double hex bolt, you may find other opportunities that are part of a bundled requirement. If you do, try contacting the buyer and locating the small business representative for that particular agency, and ask them if the part can be ordered separately. The SBA has increasing power and can be surprisingly helpful in changing requirements to support small 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 consolidation, searching and notification services, as well as part number (NSN) lookup to many military activities and thousands of private companies around the world. Try our new full-text Government document search engine.
If you would like to see a video demonstrating how we found this part, and how you might find other parts of interest, scan the code below using your cell phone or tablet. Already reading this on a tablet? Then click here.
Comments? Send them to news@bidlink.net.
This article was written exclusively for “Fastener Journal” magazine.
One of our readers responded to an article commenting, “I know much more, but if I could just win some of these contracts we would be golden”. The fastener industry is competitive. Recently, we added a tally of number of competitors to our contract award display at BidLink, which is yielding some interesting results. An analysis of defense contracts awarded to the fastener industry over the last few years reveals a high number of competitors, even for some relatively small contracts.
Stud, shouldered and stepped
The highest number of competitors for a fastener contract in 2011 was for contract no. SPM5A211M2084, where forty one (41) companies submitted bids. The contract was only valued at $10,270 and was awarded to Quality Socket Screw Corporation (cage code: 5N116) for 2,600 steel studs. The winning price was $3.95ea. Quality Socket Screw Corporation in Englewood, FL has 22 registered NSNs with the Defense Department and have received over 9,000 contracts and delivery orders.
LONG TERM CONTRACTS
There were twenty two (22) competitors for SPM5AY10D0113, a long-term contract awarded to Columbia Nut and Bolt (cage code: 51792) on 9/30/2010. The contract covers 29 stock numbers for studs, close tolerance screws, self-locking nuts and quick release pins. Several delivery orders against this contract are for large quantities of self-locking nuts, NSN 5310-01-011-3085. The Defense Department has ordered over 185,000 of these against this contract for $1.13ea. That’s over $200,000 in sales on this one part. Columbia Nut and Bolt has $20 million in annual sales with 700 employees.
The key to winning these contracts is knowing the competition by using online resources to research before you bid. Start by exploring existing contracts to see who is winning and at what price. The Government is moving away from small orders and toward the use of long-term contracts to streamline the process of procurement. In stead of issuing an RFQ for each order, they are consolidating many requirements into a single contract, then issuing delivery orders against that contract. The window of opportunity for competitors is when these contracts expire. The contract above expires on 9/29/2012.
Knowing when these contracts expire, the winning price, and how many competitors are participating can put you in a good position to compete for the next award. Also, the Defense Department is required to award a certain percentage of contracts to small businesses. The target for 2011 was 23%, or $12 Billion in small business awards. Each contract is designated as small business or large business.
If a contract is for small business, companies below a certain size (usually < 500 employees) will get certain advantages. If a small business and large business are competing and offer the same price, the small business will likely win the contract. Solicitations can be re-classified as small business by contacting the the buyer who issued the contract, and proving that you can supply the parts. To learn more about small business set-asides, check out sba.gov. Of course, you can always search BidLink for contracts that are small-business set-aside.
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.
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This article was written exclusively for “Fastener Journal” magazine .
