Federal Government Contracting with Jerry Martin

Introduction

• Jerry Martin, majority owner and president of AB Martin Services Inc.
• Company specializes in federal government contracting.
• Started business in 1997.
• Shares insights on sourcing for the federal government.

Business Overview

• AB Martin Services Inc. makes about $5 million annually.
• Holds 7 to 8 national contracts with the government.
• Contracts typically last 3-5 years.
• Majority of products are drop shipped (99%).

Sourcing vs. Selling

• Sourcing: Providing products as specified by the government (e.g., RFQs from sam.gov).
• Selling: Offering products to the market.
• Federal government specifies exact requirements; no selling involved.

Examples of Sourced Products

• Ophthalmic equipment, safe patient handling equipment, dental equipment, custom furniture.
• Special contracts with the Department of Veteran Affairs.
• No need for warehouses; mostly drop shipping model.

Business Model

• Prefers few or no employees, no inventory, and no receivables.
• Staff are commission-driven subcontractors.
• Business model developed from previous challenges (e.g., IRS audit).

Starting in Government Contracting

• Business Plan: Essential for any government business.
• Resources: Use available resources, including personal knowledge and networks.
• PTAC: Procurement Technical Assistance Centers are vital resources.
• Understanding Process: Learn the government process for sourcing.

Mistakes to Avoid

• Arguing with contracting officers.
• Not reading all solicitation details.
• Understanding who's responsible for shipping costs.
• Never break a contract as it affects future opportunities.

Philosophy & Key Points

• Business moves at the speed of trust.
• Be humble and learn from every experience.
• Everything that glitters is not gold.
• Add value to your sourcing process.

Financial Insights

• Gross sales have increased to $7 million over the past three years due to mandatory contracts.
• Importance of maintaining trust and good relationships with suppliers and customers.

Closing Advice

• Meet people in person; build relationships with clients and manufacturers.
• Stay informed and continue learning.
• Remember: Nothing happens until someone does something; be proactive in starting your business.

Final Thoughts

• Trust and humility are pivotal for long-term success.
• Make learning a continuous process.
• Like and engage with content that provides value.