Classified: A Reference Book for Government Contractors

By Henry Vinson

Don't be the best in the world at what you do; be the only one in the world who does what you do.

--Jerry Garcia

Government Contracting Classified is a book of issues and problems concerning government contracting. Henry was raised in a small town (population about eighty) in Northern Middle Tennessee three miles from the Kentucky border. That area is now known as Land Between the Lakes National Recreation Area. That town was Model, Tennessee.

He retired after thirty-two years from the federal government as a federal contracting officer and division chief with an unlimited warrant. Then he ran the Center for Government Contracting at the Dallas County Community College Small Business Development Center (SBDC), where he taught seminars and counseled contractors about government contracting. After that for nine years, he owned his own business, where he wrote technical proposals for contractors.

His last position was on the staff of the University of Texas at Arlington Cross Timbers Procurement Technical Assistance Center, and he retired after more than fourteen years. He conducted government contracting webinars/seminars and did one-on-one counseling with potential and current government contractors (small, medium-sized, and large contractors). He worked with federal, state, and local governments.

Henry has conducted over seven hundred webinars/seminars, mostly in Texas, over the past twenty-five years. He counseled thousands of contractors and had thousands in his seminars. During his time as a Contracting Officer with an unlimited warrant and working for colleges and universities, he noticed several issues and problems kept coming up over and over. He has identified many of those issues and problems. He points them out in this book with commentary.

Although this book is not all-inclusive, it does identify many issues and problems that should be of interest to newcomers and the seasoned government contractor as well. Henry not only points out important issues and problems but provides his personal comments (with seriousness and humor).

I assure you before God that what I am writing you is no lie.

--Galatians 1:20

• Language: English
• Publisher: Christian Faith Publishing, Inc.
• Release date: May 8, 2023
• ISBN: 9798887514291

Book preview

Classified

A Reference Book for Government Contractors

Henry Vinson

Copyright © 2023 by Henry Vinson

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods without the prior written permission of the publisher. For permission requests, solicit the publisher via the address below.

Christian Faith Publishing

832 Park Avenue

Meadville, PA 16335

www.christianfaithpublishing.com

Printed in the United States of America

Table of Contents

Category 1

Category 2

Category 3

Category 4

Category 5

Category 6

Category 7

Category 8

Category 9

Category 10

Category 11

Category 12

Category 13

Category 14

Category 15

Category 16

Category 17

Category 18

Category 19

Category 20

Disclaimer

No books ever go into my laboratory. The thing I am to do and the way are revealed to me the moment I am inspired to create something new. Without God to draw aside the curtain, I would be helpless. Only alone can I draw close enough to God to discover His secrets.

—George Washington Carver

This book is presented by the author solely for educational and entertainment purposes. The author and publisher are not representing themselves as a legal service. Care has been taken to ensure there are no guarantees or warranties expressed or implied. Therefore, the author and publisher assume no liabilities of any kind especially to the accuracy or completeness of the book’s contents. Neither the author or publisher shall be held liable or responsible to any person or entity with respect to any loss or incidental or consequential damages caused, or alleged to have been caused, directly or indirectly by the contents of this publication.

Every company is different in so far as employee/owner ability, skills, and training. Further, company employees have different ability to read, understand, and follow instruction. All companies have different financial health and Satisfactory Past Performance. All these things are necessary to achieve the outcome you desire. Therefore, the contents of this book may not be suitable for your situation. You are responsible for your own choices, actions, and results. Start-Up companies and seasoned government contracting companies alike should seek the services of a government contracting professional and/or government contracting attorney to assist with their government contracting program.

I will ask the Father, and he will give you another advocate to help you and be with you forever.

—John 14:16

In my first book, each section starts with a quote from usually a famous person and ends that section with a quote from scripture. I see no need to ever stop this practice.

Heaven and Hell are eternal choices. If you wait until you die to choose your destination, you will have waited one second too long. Hell and Heaven are forever choices.

—Dr. Robert Jeffress 2016

I dedicate my second book (as I did my first) to the Lord God Almighty himself and his son Jesus Christ. Thank you, God, for sending your son and the Holy Spirit. We trust the Holy Spirit will be our counselor and guide but moreover live within us forever and ever. Amen.

For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.

—John 3:16 (NIV)

Foreword

The purchasing of goods and services by federal, state, and local government entities create the largest markets in the free world. Governments use laws and regulatory regimes to maintain its integrity and transparence for all involved. These regulatory regimes can create barriers for entry into these markets. However, the businesses that understand how government procurement works can create stable cash flows and steady growth.

This book contains the working knowledge needed to understand how federal government contracting works. Information includes registrations, certifications, marketing methods, contracting types, financial requirements, and much more. Contracting language can be simple to understand or complex with ambiguities. The information in this book reflects the sum total of the author’s experience and instincts. Words have meanings. Pay close attention to the section that talks about the words such as shall, will, quality, time, and price and many more.

It is a privilege to know and work with Henry Vinson. I have learned more about government contracting than I ever wanted to know. But has fate would have it, I am part of his coaching tree. Henry is devoted to his family and his faith. A true patriot.

Gregory M. James

Acknowledgments

Women’s natural role is to be a pillar of the family.

—Grace Kelly

First, I want to recognize my beautiful wife of fifty-seven years and pillar of our family, Millie. Why she stayed with me this long has been a mystery to me. She could have done better, but for some crazy reason, she stayed with me. If you know me, then you understand why it’s a mystery. She gave me a beautiful and talented daughter (Whitney), and that daughter gave us two wonderful grandkids (Maddie and Zach). I’m also proud to call my son-in-law (Steve) my buddy and my friend. Millie was my trusted counsel, my lover, my strength when it was needed…my very best friend. To know love as I have all these years is a gift from God.

Many women do noble things, but you surpass them all.

—Proverbs 31:29

I also want to recognize a few government contracting experts and friends that have helped me along the way.

Don’t lie to your doctor or you lawyer.

—Benjamin Franklin

Michael Immler is a retired Air Force colonel lawyer and was deputy director of a very large worldwide organization. This overachiever has been my friend and buddy for over thirty years. He is without a doubt the best counselor I’ve ever known. When I first went into government contracting, he was my teacher and mentor. We spent many hours going over a large claim that was filed against the government by a contractor on a project at Hill AFB, Utah. Michael was my coach, teacher, and advisor on that claim. I dare say, when it was time to testify, I was ready. Job well done, sir. His most recent noble adventure along with his wife, Janine, is serving as chairman of the board for Alive at Last. The ministry provides support and guidance for women victims transitioning to survivors. Truly God’s work (www.aliveatlast.org).

Plans fail for lack of counsel, but with many advisers they succeed.

—Proverbs 15:22

Where there is no vision, there is no hope.

—George Washington Carver

Gene Keel was a senior buyer at a regional headquarters in Southern Indiana when I became the acting chief of procurement. Without his advice and council, I would have had a long and painful tenure in that position. He is without a doubt one of the best procurement professionals on the planet. He and his wife, Jane, have become family friends, and we are grateful. Thanks, Gene, for not only the counseling and training in commodity purchasing, but thanks also for all the years of friendship. Your knowledge of government procurement does, however, take the back seat to your intelligence and sense of humor. Ponder that!

There was another as well in Southern Indiana that I want to recognize, Randy Clark. Randy steered me through days of confusion and turbulence. Thanks to Randy and his wife, Bonnie, for their friendship.

Let the one who is wise heed these things and ponder the loving deeds of the Lord.

—Psalms 107:43

The time is always right to do what is right.

—Martin Luther King Jr.

Phil Hawley, president and CEO of Ewing Engineered Solutions, is an entrepreneur extraordinaire and a remarkable businessman. Ewing Engineered Solutions (Native American—owned small business) is a well-known federal government contractor that has worked toward providing the warfighter mission critical communications equipment and software products for decades. I’m proud that he and his wife, Kathy, have become family friends (https://www.ewinges.com).

Tamiko Bailey, president and CEO at Baileys Premier Services (Service-Disabled Veteran-Owned Small Business), has proven her management skills by starting her company and building it to a multistate aerospace and logistics company with its core business in aircraft maintenance services, facilities, program management, and aircraft parts. Tamiko is a United States Air Force service-disabled veteran who has served in two hazardous duty tours in support of Operation Southern Watch with the Thirty-Third Fighter Wing Eglin Air Force Base, Florida. She participates in many organizations that promotes Women-Owned Small Businesses and Service-Disabled Veteran-Owned Small Businesses. I’m proud to call her and her husband friends (https://baileyspremierservices.com).

So you will walk in the way of the good and keep to the paths of the righteous.

—Proverbs 2:20

My best friend is the one who brings out the best in me.

—Henry Ford

I can’t imagine life these past fifty years without Pete and Marsha Sercy. Thanks, guys, for a life time of fun, travel, and laughter.

Because, if you confess with your mouth that Jesus is Lord and believe in your heart that God raised him from the dead, you will be saved.

—Romans 10:9

Goodness is about character—integrity, honesty, kindness, generosity, moral courage, and the like. More than anything else, it is about how we treat other people.

—Dennis Prager

I would be remiss if I did not mention my boss for the past several years, Gregory James. Gregory served as the director of Cross Timbers Procurement Technical Assistance (CTPTAC) located at the University of Texas at Arlington. He served as the project director of the Dallas/Fort Worth Minority Business Development Agency and investor and former president/chief operating officer of PAZ Energy LLC, to name a few. He is a graduate of Southern Methodist University (SMU) Cox School of Business and has served on the SMU Alumni Board of Directors. I’m a better human being just for knowing Gregory these past several years and pleased that I can call him my friend. He, too, is an author and has published The James Guide to Developing a Federal Marketing Plan. Available on Amazon.com. You can see why I ask him to write the foreword to this book.

And David shepherded them with integrity of heart; with skillful hands he led them.

—Psalms 78:72

Introduction

There are four ways, and only four ways, in which we have contact with the world. We are evaluated and classified by these four contacts: what we do, how we look, what we say, and how we say it.

—Dale Carnegie

Classified: designating the part or parts of a publication that contain lists arranged by category.

Important: there is nothing confidential, secret, or top secret about this book. Classified is simply a play on words.

I was raised in a small town (population about eighty) in Northern Middle Tennessee three miles from the Kentucky border. That area is now known as Land Between the Lakes National Recreation Area. That town was Model, Tennessee. Thus, the name a Model Contracting Officer. Frankly, I’m not a Model Contracting Officer at all, far from it. Simply another play on words.

I retired from the federal government as a federal contracting officer and division chief with an unlimited warrant. Then I ran the Center for Government Contracting at the Dallas County Community College (now Dallas College), where I taught seminars and counseled contractors on government contracting. After that, for nine years I owned my own business, where I wrote technical proposals for contractors. Three top winners were over $40 million each.

After that, I was on the staff at the University of Texas at Arlington for over fourteen years, where I conducted seminars/webinars for contractors and did one-on-one counseling.

I have conducted over seven hundred seminars/webinars in Texas over the past twenty-five years. I have counseled thousands of contractors and had thousands in my seminars. During this time working for colleges and universities as well as when I was a Contracting Officer in the federal government, I noticed several key issues/problems kept coming up over and over. The purpose of this book is to identify many of those issues/problems and point them out with commentary and humor (after all, government contracting is the most boring subject on the planet).

Although this book is not all-inclusive, it does identify many topics and issues that should be of interest to newcomers and the seasoned government contractor as well. I not only point out important issues/problems but also provided my personal comments. Hopefully this will become a reference book that lasts for many years to come.

I am always amazed by people that want to start in government contracting already knowing everything. The people I’ve seen over the past twenty-five years that do the best when starting in government contracting are those that know nothing about that subject.

As an example, one of my clients, when I owned my business, once told me he did not need a performance or payment bond on a contract that I helped him obtain. I said the requirements state if you do not provide the bond(s) within ten days of a contract award, contract termination for default is imminent. He said, I have a friend that had a contract to mow grass on the side of state highways in California. He told me bonds were in his contract as well, but he did not have to have them. Therefore, I’m not paying for those bonds.

So I said, Fine, then let me explain to you the termination for default clause.

When I was a teenager, I took flying lessons but didn’t finish. Later as an adult, I went back and did finish. My flight instructor at LeMay Aero Club at Offutt AFB, Nebraska, told me after I received my private pilot license that I was a great pilot. In fact, he went on to say, You were the best presolo crosswind landing student in my forty years as an instructor. But he went on, Untraining you in the beginning was very difficult. Apparently, I had formulated some things in my mind from my teenage flying days that was not quite right. Well, apparently, there were several.

I believe that’s the situation with people that don’t know anything about government contracting. In my opinion, they have a better chance. Why? Because they don’t have to be untrained.

I have had countless potential contractors come to me and tell me how they were going to do it. Great, what the heck do you need me for? If you get your information from a relative who has never had a contract, your common sense that has never had a contract, the news media who has never had a contract, or a politician who has never had a contract, your government contracting program is probably going to fail. Now this is tragic because you probably have a lot to offer in the field of government contracting and could most likely be very successful.

The point I want to make is that no one knows everything about government contracting. However, the longer you are involved in the government contracting business, the more confident you become. That may be because you become an expert in finding the answers. Knowing where to find the answers in government contracting is powerful. I want this publication to be one of the books in your library where you can find some of the answers.

Therefore, go forward with the knowledge that I admit I don’t know everything there is to know about government contracting. Further, go forward with the knowledge that you probably don’t either, no matter how long you have been doing it.

Disclaimer, I quote and show the Federal Acquisition Regulation (FAR) throughout this book. Please remember, there are approximately thirty agencies that supplement the FAR, and they may or may not be in conflict. I think it’s safe to say the supplements, in most cases, make the process more stringent or more binding and do not relax the FAR regulation. Also, remember, there are changes to the FAR. But the last major change I’m aware of was the FAR part 15 rewrite in January 1998.

There are two other places that will need to be examined when finding the rule, regulation, or law. They are as follows:

Number one: The FAR and supplements goes through changes all the time. You can see the most current FAR and the most current supplements by going to https://www.acquisition.gov/browsefar. More on the FAR in other categories.

You can find the FAR hard copy for sale as well as The Government Contracts Reference Book at: www.barnesandnobel.com. Search "Government Contracts Reference Book Fifth Edition (about $100) and Federal Acquisition Regulation" (about $150). Note: you can also find them both on eBay. Yes, they may be slightly outdated but will cost less than $20. Remember, you can read the FAR online free.

Note: they football the prices on both these publications. You might want to search around for the best price.

Number two: Although you will find state and local government contracting similar to the federal government, there are differences. In some cases, I’ve found it the same, but they change the names. As an example, the federal government calls the procurement opportunity that is a public opening and not negotiable, an invitation for bid or IFB. They also call a procurement opportunity that is "not a public opening and is negotiable," a request for proposal or RFP (this is discussed in detail in another category). At least one of the local governments in North Texas calls an RFP a bid proposal. This drives the folks coming out of the federal government contracting offices crazy, but if you read the solicitation carefully, you can figure out what they are trying to do, which brings up a great point. Read, understand, and follow the solicitation, like it is the only one that has ever hit the street. Chances are, it is the only one like it to ever hit the street. Can’t overemphasize my concern that you have to read (if you can’t read, you are going to have a problem with government contracting), understand (if you can’t understand or comprehend what you have read, the problem just got bigger), and follow instruction (if you can’t follow the instructions of the solicitation, your government contracting program just failed).

My wish is for you to use my book to build wealth because I can think of no other reason to be involved in this crazy business of selling products, services, or construction to the government. It ain’t easy, and it ain’t cheap. More on that later.

Good luck.

Teach me knowledge and good judgment, for I trust your commands.

—Psalm 119:66

And the priest shall make atonement before the Lord for the person who makes a mistake, when he sins unintentionally, to make atonement for him, and he shall be forgiven.

—Numbers 15:28

www.henryvinsonbooks.com

Category 1

Brief History of Federal Government Contracting

The universe never did make sense; I suspect it was built on government contract.

—Robert A. Heinlein

Change is the law of life. Those who look only to the past or present are certain to miss the future.

—John F. Kennedy

While talking about the federal government’s need for adequate revenue¹, The Federalist Papers states, One of two evils will ensue from a deficiency of money, either the people will be continually plundered, as a substitute for a legitimate method of supplying the public wants, or the government will sink into a fatal atrophy and, in short time, perish.

I think we can all agree that the federal government spends our money like crazy, but it’s not the $640 toilet seats for its airplanes that’s the problem; it’s entitlements. Entitlement spending totaled 56 percent of total federal expenditures in fiscal year 2019. In July 2017, the GAO reported the Centers of Medicare and Medicaid