By providing business support in accounting, finance, and HR for small and medium-sized businesses, CFO Leasing Inc. helped its clients secure over $500 million in government contracts in 2010 and scores more become SBA 8(a) designee certified minority businesses. The firm’s CEO and president, Kevin Grimes, shares vital information with entrepreneurs wanting to pursue lucrative federal contracts.
What organizations do you recommend to provide guidance in pursuing corporate and government contracts?
Unlike corporate, state and local contracts, with federal contracts, there is a standardized process, also called a “level playing field” to make sure that every one has equal opportunity and access to contracts.
The pursuit of federal contracts should start with a Procurement Technical Assistance Center [PTAC]. There are over 90 PTACs in operation and at least one an all 50 states. Their website is www.aptac.org. The sole purpose is to explain to commercial companies the benefit of doing business with the federal government and to offer training that helps a potential contractor be successful. Most of this guidance and training is completely free. For the few that do charge a fee, a training class is usually no more than $5 to 10, but there’s no membership fee.
For instance, in the state of Georgia, all of the classes are free and are offered through Georgia Tech. The Georgia Tech Procurement Assistance Center [GTPAC], specifically. They offer classes like How to Do Business With the Federal Government and Using Your Computer to Secure a Federal Contract. They have a federal search agent for all federal, Canadian and European databases using keywords. For instance, we are a “management consulting company” and we use that key phrase and associated words to search for solicitations throughout the world. The GTPAC website is www.gtpac.org.
Is it possible to be certified as a minority business without joining a WBENC, for instance?
It is possible to get a federal contract and not be certified as a minority-owned business. It’s important to make that distinction. But, it is beneficial to get those designations. You gain a greater access to resources and consideration.
Are you seeing more diversity in the area of race regarding who is pursuing these large-scale contracts?
The federal government has a rule: 23 percent of all federal contracts have to go to small businesses. Of that, 5 percent has to go to “economically disadvantaged business owners.” That includes blacks, Latino, Native Americans and Alaskan Americans. This segment of federal contractors is eligible to receive what’s called an SBA 8(a) designation — basically a certified minority-owned business. Of the 8(a) designees, it seems that Native Americans and Alaskan Americans are faring slightly better than the other groups because there are special provisions for these two particular groups — a “set aside for set asides,” of sorts.
There are four other groups that get this type of consideration: women, HBCUs, disabled veterans, and individuals incorporating in economically depressed areas. It’s important to remember that the federal government had a woman-owned goal in place but it was never official. Last year, the Women Owned Small Business [WOSB’ program became official through the current administration’s SBA.
Have new immigration verification stipulations been a hindrance industrywide as it recently was with the RFPs for Atlanta’s Hartsfield-Jackson International Airport?
I seriously doubt it. … The Davis-Bacon Act Walsh-Healey Act and the Service Contract Act outline the minimum wages that can be paid any to employee working on a federal contract. So, it is not legal to get a federal contract but then hire illegal or immigrant labor for wages less than what is outlined in the contract. The only real change that the federal government has seen is the new system called E-Verify. No more paper I-9’s, verification is done online and compared to Department of Homeland Security and Social Security Administration records. Most of what you see are issues happening on the state and local levels.
A new Mercer survey reveal that organizations worldwide lack a strategy for developing women leaders. What are your thoughts on this? https://diversity-executive.com/article.php?article=1084
I am not surprised. At CFO Leasing, we embrace diverse talent and that includes our female employees. For instance, we recently brought on board a young lady who has an MBA and is Six-Sigma certified. We are grooming her to be a vice president in three to five years.
Honestly, I don’t think the country has arrived at a point where women are valued as they should be in the workplace. Sure, we’ve made great strides, such as implementing the WOSB program and trying to level the economic playing field in 83 industries. But, as a country, we have a ways to go.
