{"id":880,"date":"2011-12-09T20:01:31","date_gmt":"2011-12-09T20:01:31","guid":{"rendered":"http:\/\/www.bidlink.net\/news\/?p=880"},"modified":"2011-12-22T17:47:57","modified_gmt":"2011-12-22T17:47:57","slug":"competition-defense-contracting-2","status":"publish","type":"post","link":"https:\/\/www.bidlink.net\/news\/2011\/12\/competition-defense-contracting-2\/","title":{"rendered":"Forty one companies compete for one defense contract"},"content":{"rendered":"

One of our readers responded to an article commenting, “I know much more, but if \u00a0I could just win some of these contracts we would be golden”. \u00a0The fastener industry is competitive. \u00a0Recently, 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.<\/p>\n

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Stud, shouldered and stepped<\/figcaption><\/figure>\n

The highest number of competitors for a fastener contract in 2011 was for contract no. SPM5A211M2084, where\u00a0forty one (41) companies submitted bids. The contract was only valued at $10,270 and was awarded to Quality Socket Screw Corporation (cage \u00a0code: 5N116) for 2,600 steel studs. \u00a0The winning price was $3.95ea. \u00a0Quality Socket Screw Corporation in Englewood, FL has 22 registered NSNs with the Defense Department and have received over 9,000 contracts and delivery orders.<\/p>\n

LONG TERM CONTRACTS<\/strong><\/div>\n

There were twenty two (22) competitors for \u00a0SPM5AY10D0113, a long-term contract awarded to Columbia Nut and Bolt\u00a0(cage code: 51792)\u00a0on 9\/30\/2010. The contract covers 29 stock numbers for studs, close tolerance screws, self-locking nuts and quick release pins. \u00a0Several delivery orders against this contract are for large quantities of self-locking nuts, NSN\u00a05310-01-011-3085. \u00a0The 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. \u00a0Columbia Nut and Bolt has $20 million in annual sales with 700 employees.<\/p>\n

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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. \u00a0In stead of issuing an RFQ for each order, they are consolidating many requirements into a single contract, then issuing delivery orders against that contract. \u00a0The window of opportunity for competitors is when these contracts expire. \u00a0The contract above expires on 9\/29\/2012.<\/p>\n

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. \u00a0Also, the Defense Department is required to award a certain percentage of contracts to small businesses. \u00a0The target for 2011 was 23%, or $12 Billion in small business awards. \u00a0Each contract is designated as small business or large business.<\/p>\n

If \u00a0a contract is for small business, companies below a certain size (usually < 500 employees) will get certain advantages. \u00a0If a small business and large business are competing and offer the same price, the small business will likely win the contract. \u00a0Solicitations can be re-classified as small business by contacting the the buyer who issued the contract, and proving that you can supply the parts. \u00a0To learn more about small business set-asides, check out sba.gov. \u00a0Of course, you can always search BidLink for contracts that are small-business set-aside.<\/p>\n

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<\/a>, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup<\/a> to many military activities and thousands of private companies around the world.<\/p>\n

Comments? Send them to news@bidlink.net.<\/p>\n

This article was written exclusively for \u201cFastener Journal\u201d magazine .<\/p>\n

http:\/\/fastenerjournal.com\/<\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

One of our readers responded to an article commenting, “I know much more, but if \u00a0I could just win some of these contracts we would be golden”. \u00a0The fastener industry is competitive. \u00a0Recently, we added a tally of number of competitors to our contract award display at BidLink, which is yielding some interesting results. An … <\/p>\n

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