LURING THE BIG GUYS

Spread the word that it's all about the mission, and if small businesses want to climb on boad, they can't lose sight of this mission for a moment.

The mission is the work done at Tobyhanna Army Depot in Monroe County, where more than 4,000 people support American armed forces in various theaters of operation around the world via equipment repair.

In past years, the depot has annually purchased $40 million to $50 million worth of goods and services that are not available through the Department of Defense's (DoD) vast supply chain.

In recent years, these totals have swelled considerably.

During 2005, Tobyhanna's purchases grew to $123 million.

Support for the War on Terror accounted for a big part of this increase. From a regional standpoint, $1 in $5 spent by the depot is kept in northeastern Pennsylvania via local purchases.

Tom Garubba, Jobyhanna's director of contracting and small and disadvantaged business specialist, has been employed at the depot for 30 years. His purchasing department features 31 employees, with 24 involved in handson buying or administration.

Garubba explains that this group procures supplies and services that are typically mission-related or involve the depot's infrastructure.

"Tobyhanna is well sourced for purchasing," says Garubba."We occasionally are presented with a tough buy, but we don't need more sources. We need better sources. It's also important to realize that our purchasing landscape is changing, with lots of specialization taking place."

Fundamental changes

To become involved as a Tobyhanna vendor, it must be understood that fundamental changes have occurred in the government's buying system. The old system used contracts created from lists and a bidder's form. This form of purchasing has been abolished, with the understanding that it was very time-consuming for vendors.

Since 1994, Tobyhanna's system has revolved around use of the Central Contractor Registration list (CCR).

This is a massive bidder's list that had its origins in the national electronic funds transfer system.

All prospective vendors must register with the CCR to be eligible and visible to Tobyhanna's buying staff Other governmental buyers besides those at the depot also use the same list.

CCR registration can be completed via the Internet at www.ccr.gov. Garubba says the process has been simplified, and an online workbook is available.

The Internet site asks many questions of perspective buyers, including socioeconomic data, and offers government code and business information.

Typically, Tobyhanna's inquiries for products and services to be purchased are made from this list. Garubba also fields calls from vendors about the list, and he notes that other DOD commands may utilize services not purchased by Tobyhanna.

Variety of purchases

Tobyhanna makes ongoing buys of many products, from raw stocks to electronics. Specific product categories include steel, aluminum, industrial gases, electronic components, industrial supplies and office products.

Garubba's staff also purchases a variety of services that may range from interpretive services for the deaf to environmental testing and sampling.

To be chosen as a Tobyhanna vendor, Garubba emphasizes that the depot's needs must be satisfied. Select socioeconomic goals must also be reached by the buying staff.

After CCR registration, meetings between product sales representatives and Tobyhanna's buying staff are allowed. However, there are restrictions.

"We don't like a company's sales force walking the shops," says Garubba. "Therefore, access is restricted to situations where the reps are providing good technical information."

Garubba proclaims that, via their experience, Tobyhanna's buyers know the "good and bad vendors personally," and that this knowledge plays a large part in buying decisions.

Dollar thresholds also come into play, with limited buys for small production runs becoming the norm.

Vendor quality is a big issue at Tobyhanna, and feedback from Garubba's internal customers is entered into a database.

Problems with quality result in the generation of deficiency reports, instigating communication with a vendor that a situation needs correction.

"We must get what we paid for," Garubba says firmly."We also understand that there are always two sides to a story We give them a chance to say what needs to be said. But, it's a fact that we know the performers and the nonperformers."

On the issue of quality versus price, Garubba says the buyers know a firm, fixed price and minimum quality level and delivery before beginning each purchase.They then look at pricing advantages, but understand that price is not the only factor.

"Responsiveness by the vendors is a big thing," says Garubba."They must call us back on time and provide accurate information."

VISA is the top payment system used by Tobyhanna's buyers via government purchase cards. Shipment invoices are forwarded to the depot's finance department for electronic funds transfer.

Fundamental difference

Garubba explains a vital concept must be understood by perspective Tobyhanna vendors.

"Concerning government versus the private sector, industrial sellers 'sell' to a customer," says Garubba."Tobyhanna buys from a company. This is a fundamentally different approach."

Concerning old-style salesmanship with personal gifts and kickbacks, Garubba states that Tobyhanna has integrity standards in place, and these tactics are simply not allowed.

"My message to vendors is that if you want to impress me, delight me with your performance and responsiveness," declares Garubba.

Even in this age of instant commerce, Garubba identifies a typical mistake made by vendors wishing to join the Tobyhanna supply chain. He says too many vendors put Tobyhanna's requests for product information on the "back burner," and do not call back promptly with product quotations.

"Too many vendors may feel the government is slow to react," says Garubba. "Or, they may try traditional wine and dine attempts."

No special software or computer connections are necessary to become a Tobyhanna vendor. Garubba says the federal government understands society is rapidly converting to a Web-based economic system, and therefore a personal computer and Internet connection is all that's needed.

Additional solicitations

Garubba adds that governmental buying sources other than those at Tobyhanna feature posted solicitations. one of these can be found on the Internet at www.fedbizopps.gov, where buys over $100,000 are fisted.

Select U.S.Army purchases under $100,000 are listed at https://Acquisition.Army.mil. This buying system is based at Fort Monmouth in New Jersey.

Megan Pore, vice president of business development at MegaPhase in Stroudsburg, a manufacturer of coaxial cables assemblies, is a supplier for both the Army and Tobyhanna. She says CCR registration is not difficult, and that vendors must only follow the instructions on the Internet site.

"Once we were registered, we sold to the Army, and then used this experience to also open doors at Tobyhanna," says Pote. "We had to knock pretty hard and it can be tough to get the government's attention. Quite a few doors must be opened. Tobyhanna is a selfcontained business unit, like a city, and a vendor must be persistent and dedicated."

Pote believes the real key to vendor success with Tobyhanna starts with the understanding that all vendors must help Tobyhanna fulfill its mission.

"We're a country at war, and everyone up there is busy on task," says Pote. "You must keep this in mind to become a vendor."