Tag: IDV

Top 10 Industry NAICS codes for IDV Contracts in 2020

Posted on by Eric Coffie

For service contracts (and some products), the government has shifted almost entirely towards Indefinite Delivery Vehicles (IDVs).

IDVs separate large businesses from small, as small businesses in socio-economic categories are often prioritized. Although competition is intense, this is still an opportunity that you shouldn’t miss. 

The ultimate goal in bidding for IDV contracts, and in government contracting, in general, is to win. Having a small business certificate won’t be enough, you need to earn your spot on this bus. 

If you haven’t earned the right on the bus, you can’t even see the task and delivery orders. So how do you secure your spot? Start by knowing the industry and your competitors. 

IDV contract opportunities are found in all industries, but not all succeed. Some industries do better than others, here are 10 industries that have successfully made their way through winning IDV contracts in 2020.

1. 325412 

Pharmaceutical preparation manufacturing is the industry wherein establishments manufacture in-vivo diagnostic substances and pharmaceutical preparations (except biological). They are the makers of tablets, capsules, ointments, etc.

Federal IDV contracts under this code were actually worth about $2 billion in 2020, making it first on this list.

2. 325414 

Biological product (except diagnostic) manufacturing is the manufacturing of vaccines, toxoids, blood fractions, and culture media of plant or animal origin (except diagnostic). This comes second, with a government spending of $1.7 billion for IDV contracts.

3. 481212 

This code is for establishments in the nonscheduled chartered freight air transportation industry wherein they provide air transportation of cargo, without transporting passengers, with no regular routes and regular schedules.

When it comes to the government’s cumulative spending, specifically on IDV contracts, this industry is worth $1.6 billion.

4. 541712 

This code is all about research and development in the physical, engineering and life sciences engineering, and life sciences (except Biotechnology).

They conduct research and experimental developments in the field of science and mathematics. In 2020, the federal government has invested $1 billion in this industry for IDV contracts.

Note: The NAICS Code 541712, however, is no longer valid. The NAICS Code that should be used instead is 541715. Unless the requirement is dealing with nanotechnology, in that case, code 541713 should be used. 

5. 325411 

The medicinal and botanical manufacturing industry, worth $900 million in IDV contracts, manufactures uncompounded medicinal chemicals and their derivatives (i.e., generally for use by pharmaceutical preparation manufacturers). They are also responsible for grading, grinding, and milling uncompounded botanicals.

6. 541711 

Ever wondered why the NAICS code 541712 / 541715 excluded biotechnology? Here’s why. 

This code conducts biotechnology research and experimental development. They use micro-organisms and cellular and biomolecular processes to develop or alter living or non-living materials. 

They contribute to the development of new biotechnology processes used by various industries, which explains why the U.S. government has spent over $812 million in this industry, for IDV contracts alone.

7. 336414 

Guided missile and space vehicle manufacturing businesses manufacture complete guided missiles and space vehicles and/or develop and make prototypes of guided missiles or space vehicles. 

NASA is known to be the largest procurer of these services, followed by the Air Force and the Missile Defense Agency. More than $599 million was put into this industry, specifically for IDV contracts.

8. 541512 

Computer systems designs services plan and design computer systems that integrate computer hardware, software, and communication technologies.  Federal IDV contracts, in this industry, have a cumulative spending amount of $567 million.

9. 561210 

Facilities support services provide operating staff to perform a combination of support services within a client’s facilities. The staff, however, are not involved with or responsible for the core business of the client. The government invested $468 million worth of IDV contracts on this industry for 2020.

10. 541330 

This code is for establishments that offer engineering services which include civil engineering services, environmental engineering services, and mechanical engineering services. 

This industry is wide-ranging, as it pertains to any business that applies physical laws and principles of engineering in their design, development, and utilization of systems. The cumulative federal spending for these establishments is $410 million for IDV contracts.

RESOURCES

The list of industry NAICS codes from this article was taken from usaspending.gov, wherein federal awards for IDV contracts in 2020 were categorized by their NAICS codes and were listed from highest to lowest, according to their respective cumulative amount obligated by the government.

If you want to know the benefits of IDIQs and IDVs and how to prepare your company for these opportunities, then be sure to click the links below:

Are you ready to win a contract, prepare your corporation for success using IDV

https://www.youtube.com/watch?v=kqs1D_TKZIg

Multiple year contract award (IDIQ) explained in simple terms – Eric Coffie

https://www.youtube.com/watch?v=WgVtj-Iv7yI

To also learn more about all things NAICS, you can check out the website here.

IDIQs and IDVs : MasterMinds Monday

Posted on by Eric Coffie

On this episode of MasterMinds Monday, Eric Coffie shares the benefits of IDIQs and IDVs and how to prepare your company in order to get these kinds of contracting opportunities.

BENEFITS OF IDIQs and IDVs

In the government contracting marketplace, there is a misconception that having a small business certificate would equate to a handful of contract opportunities. Although, this may slightly be true, you will not achieve much success from the programs if you are not ready yet. 

“I think everyone out here should get 8a program, it is a pathway to riches and fortunes and generational wealth (however) only if you get it when you’re ready. If you do not wait until you’re ready, it can be a pathway to destruction because you spend so much time consumed with trying to learn it and trying to figure it out.”

This is further proven by one of the recent guests of the GovCon Giants podcast who did research on the companies that are part of the 8a program. The conclusion of the research made clear that the successful companies are the ones getting indefinite delivery vehicle (IDV) contracts. They keep on rising in terms of sales and are extending the life of their multi-year contract vehicles. 

This is because IDVs are essentially a blanket purchase agreement that has hundreds and even thousands of smaller contract opportunities that only selected companies are eligible to compete. These types of vehicles also provide a definite time period that are usually 5 to 10 years but can be stretched up to more than that.

This is why if you’re doing your research for contract opportunities on beta.sam, you will find contracts that say ‘only vehicle holders are eligible to bid.’ In this case, regardless if you are part of the 8a or VOSB, you can’t still bid on these types of contracts. 

So now instead of going to beta.sam and bidding on contracts, spend more time and effort on pre-qualifying for a contract vehicle. 

PREPARE YOUR COMPANY FOR IDVs, IDIQs, AND OTHER CONTRACTING OPPORTUNITIES

In order to pre-qualify your company and take advantage of these indefinite delivery vehicles, you need to have a list of the IDV opportunities that are in your particular space first. Go to your nearest Procurement Technical Assistance Centers or small business organization. 

Then, check if there are active or recently closed IDV opportunities in your industry, pull down the requirements, and analyze if you are qualified or not. 

If you are not qualified, then make sure that you are ready and qualified for the next opportunities. 

“If I were to give you a contract and give you an opportunity, you’re not even ready to receive it. So, how about we start getting ourselves ready and in a position so that we can receive opportunities.”

1. Get Funds.

Don’t use your own money to fund your company in order to get these contract opportunities. Rather, get supplier credit, vendor credit, or business credit.

This is for the reason that before the government pays, they still need to approve the products or services that you offer first. It’s not even about being financially stable or not. Unless the government has already approved the products that you sell, then don’t use your own money as it may go to waste. 

2. No Ability 

There are many requirements for a specific contract and you need to check all of these boxes. Because of this, contractors might be intimidated to do a project and just say that they can’t bid on it. 

But rather than avoiding an opportunity, why not put all the stuff in place in order to get qualified? IDV is going to probably require the highest levels in terms of requirements so you need to make sure that you achieve this. And the best way to do this is to find people or a team to help you. 

3. No Experience

Many people say that they don’t have enough experience and past performance to qualify for contracts. However, you can achieve this by including your team’s experience in your capability statement.

For instance if you’re bidding for a landscaping project. If you haven’t done anything like it before, you should not lie about your experience. However, you can hire another person who has experience in doing landscaping projects in the past and include their experience in your capability statement. This way, you are using that person’s performance to qualify for that specific project. 

Remember that you do not build a building alone, you have a team who have various experiences depending on their qualifications. You can use that to qualify for contracts that require past performance. Besides, in the government marketplace, they allow you to bring on people that complement your strength. 

RESOURCES

If you want to watch the full video where we talk about the benefits of IDIQs and IDVs and how to prepare your company in order to get these kinds of contracting opportunities, then be sure to click the links below:

Are you ready to win a contract, prepare your corporation for success using IDV

https://www.youtube.com/watch?v=kqs1D_TKZIg

Multiple year contract award (IDIQ) explained in simple terms – Eric Coffie

https://www.youtube.com/watch?v=WgVtj-Iv7yI