The U.S. Department of Energy has established cleanup sites for nuclear waste, and the Savannah River Site is one. In addition to the environmental clean up mission, SRS also has significant national security missions as well. One of the Procurement Directors for Savannah River Nuclear Solutions (SRNS), the managing and operations contractor at the Savannah River Site, recommends that suppliers pursuing business with SRNS and other federal and state agencies carefully choose NAICS segmentation codes, and also learn how to engage the right people to find opportunities.-By Betty Armstrong
The Office of Environmental Management within the U.S. Department of Energy has established 107 sites to clean up the byproducts of the manufacturing of nuclear weapons from the early 1950s after WWII. The Savannah River Site produced primarily tritium and plutonium-239 materials which were used for weapons production. The cleanup of the 310 square mile site in Aiken, South Carolina, is a significant effort focused on protecting human health and the environment. In addition, the National Nuclear Security Administration (NNSA) missions have expanded significantly at the Site as well with both on-going Tritium operations and three capitol projects. SRNS has many opportunities for diverse suppliers and small businesses to provide services and products and has a strong track record awarding over 60% of subcontracted spend to small businesses. The most successful suppliers at the site use a multi-faceted approach to winning business.
First, known suppliers provide timely responses for Request for Quotes (RFQs) and Request for Proposals (RFPs) meeting all government flow down requirements. The other is to “get found” through the North American Industry Classification System (NAICS) when their qualifications meet SRNS needs. DiversityPlus Magazine was fortunate to interview David Dietz, Supply Chain Procurement Senior Director for Savannah River Nuclear Solutions at the Carolinas-Virginia Minority Supplier Development Council (CVMSDC). He offered suppliers valuable advice on creating a business profile that leverages the NAICS coding, as well as other tips to gain government business.
David Dietz is part of a procurement leadership team guiding over 175 procurement staff supporting operations for SRNS in Aiken, South Carolina. He supported a workshop held by the CVMSDC, where he discussed the importance of suppliers selecting the proper NAICS codes. The reason for this is that government agencies such as Savannah River Site use the codes to identify suppliers potentially eligible to provide needed products or services.
To do business with any federal government entity, a supplier must maintain a specific profile, and the NAICS coding is a critical element of the profile.
The NAICS codes are segmented, meaning there are generic category codes that are further divided into more detailed categories. For example, 23 is Construction, 236 is Construction of Buildings, 2361 is Residential Building Construction, and 2362 is Nonresidential Building Construction. The subsegments are further divided, i.e., 23621 is Industrial Building Construction.
Suppliers register in the relevant segments and can also register as a certified small or minority-owned business. Dietz explained that suppliers need to think through their segmentation strategy carefully, so they are more likely to be considered for opportunities. He said, “Suppliers don’t want to use only generic codes. They need to target the right or more detailed NAICS codes because that is the driver for procurement sourcing when searching for suppliers who can provide what is needed. If only the generic code is used, too much guesswork is involved in identifying qualifying suppliers.”
A good example is generic IT vs. specialization in IT architecture or IT development or specialization in software development or licensing. Nearly all federal agency and prime contractors purchasing departments begin sourcing by looking up NAICS codes for the relevant industry, and they then search the secondary codes to find eligible suppliers. The exception is when procurement has already built relationships with certain suppliers and knows their capabilities and delivery history. In that case, procurement may send RFPs and RFQs to familiar registered suppliers most likely to meet requirements.
Register With SAM and
Maintain NAICS Codes
Either way, procurement finds suppliers based on their profile and NAICS codes indicated in the business profile. Registration is done through the US Federal Contractor Registration website, where suppliers complete SAM Registration (System for Award Management). The supplier’s registered NAICS codes are also required to register for different events held by companies and federal and state government institutions. It is crucial for diverse suppliers to maintain current NAICS codes. “We do a cross-check before sending a bid opportunity out or selecting a supplier,” says Dietz, “If the NAICS code is incorrect, the supplier will not be awarded business without correction. The only exception is when the supplier can prove that the government is still processing their registration. Then we might make a waiver for the initial award, but that is a temporary process.”
Suppliers must maintain their registration with the federal government annually. Submitting the renewal before it expires is much less arduous than letting it expire. Once expired, the registration process begins again from scratch, taking 3-5 weeks. In the meantime, the suppliers cannot get government work awarded. Dietz has found that approximately 30% of suppliers do not stay current and notes that the point-of-contact listed on the supplier’s profile is the best person to track the renewal requirement.
Gaining a Competitive Advantage
To gain a competitive advantage in doing business with the federal government, Dietz advises suppliers to be thoughtful about their outreach, the definition of products and services, and the targeted industry. Suppliers can proactively research where they think their services could be used and how to differentiate their business. “Like the NAICS segmentation strategy, do not be generic about products and services, says Dietz, “Build a roadmap of products and services that will help your company expand into different segments.”
One of the challenges that small and diverse businesses face when registering with private and government organizations is the time it takes to complete the process. However, the time is well spent. Dietz advises companies to contact organizations and the right decision-makers regularly; complete anything procurement requires, such as a supplier platform; and set a hard, weekly contact number as a goal. This applies to registering on a supplier profile or attending supplier conferences or events where contacts with buying organizations can be made. He says, “Make contact with three or four decision-makers in targeted industries per week, but realize responses could be delayed. Eventually, if you're persistent, things will work out.”
Once a supplier is awarded work, delivering superior service and maintaining ongoing communication with internal decision-makers is critical. There are situations in which the supplier is awarded a contract, and the only time the purchasing department gets involved is when there is a sudden issue, like a delivery problem. “We do a lot of purchasing for engineers and other technical staff. If there is a shipping problem, my team gets involved. That is why we maintain good constant communication with project sponsors, like the end user engineer and IT person, so they are always kept informed. Industry and internal buyers become influencers who refer suppliers based on their delivery performance or for product or service quality.” Suppliers can promote the references as they work to grow their business.
Being Shy Leads to Missed
Opportunities
Some suppliers want to take the leap from commercial to government contracts. Transitioning to doing business with the government requires significant pre-planning. Dietz advises suppliers to fine tune their product offering pitch and develop two slides or less that position the company. The supplier should establish the company in the registration portal and select NAICS codes. Also, building a marketing strategy that focuses on reaching the right decision-makers is crucial.
Asking people who the right decision-makers are will ensure the supplier talks to the people the business should be talking to. Dietz elaborated, “I do a lot of navigating for people to help them get in front of others. If it doesn’t work out because of timing or qualifications issues, I feel like I did my job helping the supplier align with the opportunity that may come in the future.” When the supplier does meet with someone representing the buyer, it is important not to be shy. Ask the person if he or she is the right person. If not, ask who it is, what material the supplier can leave, and whether he or she will pass it on and facilitate a meeting.
Dietz’s final advice is to collaborate with trailblazers and not be intimidated by the procurement process. Be thoughtful about product or service positioning and adjust the approach depending on who the meeting is with by tailoring the message. Also, take advantage of opportunities to get advice from people experienced in areas of interest. At conferences like the Carolinas Minority Supplier Diversity Council, he advises pulling people aside with experience selling in an area the supplier believes the company is positioned to work in. Building a competitive business requires attention to all the details and a willingness to market the business proactively at every opportunity.
* https://usfcr.com/sam-registration/