Ever wonder how those other small businesses get contracts with the heavy hitters? Well wonder no more, because we interviewed Ron Duncan, CPPB, Contracts Manager at DFW International Airport (As an airport larger than the isle of Manhattan, DFW is about as heavy as it gets!) to find out exactly what they look for when awarding contracts, especially to small businesses.
Didn’t have time to watch? Check out the TL;DW version below.
Why Does DFW Airport Like to Work with Small Businesses?
DFW airport has a goal of having 25% of the businesses they work with be small businesses. They literally spend hundreds of millions of dollars on small businesses and minority and women-owned businesses because these businesses deliver.
Not only that, but they’re nimble too. DFW doesn’t have to wade through a thousand layers of bureaucracy just to find the person who can talk to the assistant manager who can speak to the manager who MIGHT be able to make a decision. Ron likes that he’s usually sitting at the table with the decision maker of a small business. A nimble small business that can deliver a quality product or service is very attractive when DFW is awarding contracts.
What Range of Products And Services Is DFW Looking For From Small Businesses?
Mostly what you need to operate any business. From toilet paper and paper towels to light bulbs, uniforms, and janitorial services, DFW needs it all. They have over 550 contracts, so it is worth every small business’ time and effort to make a bid or proposal. The bottom line is they need to be responsive to the traveling public, and with 62 million customers going through the airport a year, they need everything AND the kitchen sink. If your company makes it or does it, they probably need it.
Check Out Current DFW Bids And Register Your Small Business
Go to dfwairport.com/business/solicitations to see active bids, and go to dfwairport.com/procurement to register with the airport. Registering is critical because that’s how they know where to buy your wedding present (or maybe how they know what kind of service you offer…) Once you’re registered, which takes about 15 minutes, they pull up your data and let you know that an RFB (Request for Bid) or RFP (Request for Proposal) is up on their website. They are large but they want to encourage small businesses to participate.
Be Prepared to Meet Insurance Requirements
Generally, DFW needs your small business to have commercial general liability, workers comp (for a business with employees), and auto liability at about half a million dollars, which is traditional for medium-to-large-sized organizations. Sometimes there are other types of insurance requirements, but DFW will tell you up front what type of insurance your company needs. Also, you don’t need to have the insurance currently to make a bid! You can work the price of the insurance into your bid. How’s that for a willingness to work with small businesses?
What Else Does Your Small Business Need Before You Begin The Bidding Process?
Read the Bid Document Carefully
The bid document itself will tell you a lot about what DFW needs, and each bid will have different requirements. Having a good description of what your business does and the team you’re going to use to perform your services or provide your product is critical. Make sure you focus on the amount of experience your team has as individuals (saying “We have almost a whole year of experience as a company!” just sounds sad).
Make Sure You Can Cover the Upfront Costs
You need to have the financial backing to perform the services because, by law, DFW cannot pay upfront. On the flip side, they are required by law to pay you within 30 days. Very nice!
See if You Can Offer A Discount if You Get Paid Faster
Another incentive DFW likes to see is when a small business can offer a percentage discount in return for paying a small business earlier than 30 days, so if you can swing that, you may have a more attractive bid.
Consider Subcontracting
Finally, companies should look at subcontracting opportunities, as they are a good way to build a reputation as a subcontractor, which may eventually lead to becoming a prime contractor. Subcontractors must be paid within 7 days of DFW paying the prime contractor, so the turn around for pay on a job is still competitive.
How Can Your Small Business Find a Larger Organization To Subcontract With?
Attend a pre-bid or pre-proposal conference. General contractors and subcontractors can attend and meet face-to-face, and often the general contractors are looking for someone to subcontract for them.
You can get info about who has received a bid by checking the bids online, and you can then contact those companies about subcontracting. Those prime contractors have a vested interest in getting a small business enterprise in their bid in order to meet the small business requirements of DFW airport (either that or complete a 13 step process and sign over their firstborn child as proof that they did all they could to find one).
How Does DFW Actually Select The Winner Of The Bid? What Criteria Does DFW Consider Other Than Price?
Of course DFW asks “Is the pricing what we budgeted for, and does it make sense?” But that is only a part of the story.
State law requires that DFW award to the, “lowest price, responsive and responsible bidder.” Responsive means you meet all the requirements without “qualifiers or conditions.” Price is important, but being responsive to requirements is just as crucial. It’s also easy to know what criteria you need to meet because DFW is required by law (they sure have a lot of laws governing them don’t they?) to tell you what evaluation criteria they use AND what weight they apply to each criterion.
The criteria are typically based on a 100-point scale, and typically diversity and inclusion makes up 20 of the 100 points while price is about 15 to 20 points. They also look at the following criteria:
- Are they responsive to the scope of the work?
- Are the team members qualified?
- Is there a management plan for products and services?
- Is there ongoing customer support?
- Is someone doing quality control?
- Do they have a snack machine in the office?
- Will they bring pizza on Fridays? (ok, maybe those last two are just my criteria for Blue Steele Solutions…)
And of course the criteria change depending on the bid. Basically, DFW wants to make sure you’re a good company who follows standard procedures so they can rest assured that they don’t need to oversee what you’re doing constantly.
Can Your Small Business Introduce a Product or Service that is New or Innovative When There is No RFP or RFB Out?
The short answer is yes. First, register online with the to receive emails about RFPs and RFBs.
If you have something amazing, send Ron an email, but don’t expect him to be able to offer you a contract on the spot just because he likes the product or service. He has to make sure there is funding for that service and that it fits in the budget, and this can sometimes take until the next fiscal year. They don’t put out RFPs or RFBs until they are sure they can back that up with funding, assuring you that you won’t waste your time sending them a proposal or bid.
Often, he cannot do a direct buy because public bidding laws do not allow it (Thanks Austin!) In some circumstances, with the right paperwork, he can do a direct buy. If you have a sole source situation, then they can do a sole source justification to purchase it, but that carries risks. As Ron says, “I call it the passing the channel 4, 5, 8, and 11 test. Nobody wants to be on TV trying to explain why you spent tens of thousands of dollars and didn’t compete it.”
Is There Any Other Information That You Want To Add That You Think Would Be Useful To Small Business Owners And Managers Out There?
Follow the Requirements
The key is to respond to what the bid asks for. Often alternatives don’t work, so try to meet the requirements.
Don’t Give Up
Also, don’t get discouraged if your first bid or proposal fails! You often don’t make the bid the first time, and it can take 2 to 3 tries to get your foot in the door, so keep at it. Look at how you can write better proposals or bids and how you can add value. Be persistent.
Deliver a Quality Product or Service
Bottom line: deliver on the product or service and a lot of that contract language doesn’t matter. It’s there to protect the airport and you, but the language doesn’t matter as long as everyone does their job. If you can’t get in as a prime contractor, try subcontracting.
Be Prepared for the Interview
If you are a finalist, be very prepared and bring the people who will be on site so that they can meet the people on the evaluation team, who you will work with directly if you get the contract.
Know That They Love Small Businesses
As Ron says, “We have an open process, no tricks. We do business with businesses we don’t know or haven’t work with all the time.”
“I love small businesses and I love how nimble they can be. It will give you opportunities to show off for all the business travelers who go through there; you can take that reference and build your business.”
How to Contact Ron Duncan or DFW
Email Ron at rduncan@dfwairport.com for the links and the steps to get registered at the airport.
Visit dfwairport.com/business/solicitations to see active bids.
Visit dfwairport.com/procurement to register with the airport