Understanding PIID

August 19, 2021

What is PIID?

If you’re bidding for contracts, you may have come across PIID. You may be wondering what exactly it is. This blog will help you understand PIID and give you some helpful tips for your next bid.

So, let’s start off with the basics…

What is PIID?

PIID stands for Procurement Instrument Identifier.

It’s a unique identifier assigned to a solicitation. This could be a:

  • Federal contract
  • Purchase order
  • Basic ordering agreement
  • Blanket purchase agreement.

It’s used to track the contract and any modifications or transcriptions related to it. It is specific and unique to the specific award being reported on.

PIID is also used to identify contract actions in designated support and reporting systems such as the:

  • Federal Procurement Data System
  • System for Award Management.

They must be used in accordance with regulations, applicable authorities, agency policies, and procedures.

How long does a PIID last?

Each PIID is unique governmentwide. It will remain unique to that solicitation for at least 20 years from that date of the contract award.

What does a PIID look like?

The PIID will consist of 13 – 17 alpha-numeric characters sequenced to convey specific information.

Positions 1 – 6

The first six positions identify the department or agency and the office issuing the commodity. The 2017 PIID format consists of AAC in the beginning 6 positions.

Positions 7 – 8

These positions are the last two digits of the fiscal year when the procurement is issued or awarded. This is the date the action is signed, not the effective date if the effective date is different.

Position 9

Indicates the type of instrument by entering one of the following upper-case letters in position nine. Departments and independent agencies may assign these letters identified for the departments mentioned below in accordance with their agency policy. However, any use must be applied to the entire department or agency.

The Federal Acquisition Agency (FAR) has attempted to standardize PIIDs throughout the government.

  • A – Blanket purchase agreement
  • B – Invitations for Bids
  • C – Contracts of all types except indefinite-delivery contracts
  • D – Indefinite delivery contracts
  • E – Reserved for future federal government use
  • F – task orders/delivery orders or calls under black purchase agreements or basic ordering agreements
  • G – Basic ordering agreements
  • H – agreements including basic, and loan agreements
  • I – not used
  • J – Reserved for future federal government use
  • K – Reserved for departmental/agency use
  • L – Lease agreements
  • M – Reserved for departmental/agency use
  • N – Reserved for departmental/agency use
  • O – not used
  • P – Purchase orders
  • Q – Request for Quotations
  • R – Request for Proposals
  • S – Reserved for departmental/agency use
  • T – Reserved for departmental/agency use
  • U – Request for Quotations is Q is exhausted during a fiscal year
  • V – Purchase orders if P is exhausted during a fiscal year
  • W – Reserved for future federal government use
  • X – Reserved for future federal government use
  • Y – Imprest fund
  • Z – Reserved for future federal government use

So now you know what makes up a PIID. You may be wondering where to find these contract opportunities.

Who oversees PIID?

If you are bidding on government bids, then you must adhere to FAR. The FAR sets a standardized set of regulations that are used to procure commodities in the public sector.

Typically, the bid documents are made up of 13 sections and each one is overseen by FAR. They are labeled by letters and are as follows:

  • A – Information to Offerors/Quoters
  • B – Suppliers or Services and Price/Cost
  • C – Specification/Statement of Work (SOW)
  • D – Packages and Marking
  • E – Inspection and Acceptance
  • F – Performance or Deliveries
  • G – Contract Administrative Date
  • H – Special Contract Requirements
  • I – General Provisions/Contract Clauses
  • J – Attachments/Exhibits
  • K – Representations, Certifications, and Statements of Offerors
  • L – Proposal Preparation Instructions and Other
  • M – Evaluation Criteria

Before you begin…

Finding the right bid for your business can take time be it an RFP, RFI, or RFQ.

Both public and private businesses offer opportunities. One of the biggest procurers of commodities is the Government. There are a few things you need to do before you start registering your interest in government contracts:

  • Know your DUNS number

You will need to have your organization’s DUNS number to hand to bid on government contracts. This can be found on the Dun and Bradstreet website. This nine-digit identification number is for the physical location of your business.

  • Have your NAICS code

In order to start bidding, you’ll need to match your services/products to a NAICS code. The NAICS code stands for North American Industry Classification System. A business will have a primary NAICS code or multiple depending on if they have multiple services or products. To find your NAICS code, view the list on the U.S Census Bureau.

  • Register with SAM

You must register with the government’s System of Award Management (SAM) to participate in government contracting. Becoming a registered vendor with SAM eliminates the need to enter the same information over and over. This streamlines the process and increases efficiency when doing business with the government. You will need both your DUNS number and NAICS code to register with SAM.

Can I even bid for contracts as a small business?

Now you have a better understanding of PIID. You may think that bidding for contracts for the government is only for the big dogs. That simply isn’t true. In fact, the government sets aside specific contracts purely for small businesses. These are known as set-aside contracts.

The General Services Administration (GSA) handles federal government contracts. They work with the Small Business Administration (SBA) to ensure that smaller vendors have a chance at securing government contracts. This is because the government wants to encourage small businesses and secure a local supply chain. Small business set-asides are used to help level the playing field.

The GSA and SBA work together and set a target of the government setting aside 23% of all government solicitations. Each federal agency sets its own specific set-aside goals with the SBA annually. For example, the Department of Defence will have a different percentage than the Department for Education.

When are they used?

Almost every federal government purchase between $10,000 and $250,000 is set aside for small businesses. The GSA reserves a percentage of all contracts specifically for businesses that are:

  • Women-owned – 5%
  • Small disadvantaged – 5%
  • HUBZone (Historically Underutilized Business Zone) – 3%
  • Service-disabled, veteran-owned – 3%

You can find a PIID for a government contract, be it local, state or federal. Bidding for public sector contracts can take a lot of time. If you’re new to it, you may be wondering what’s required. Here are our top tips you should consider when bidding for work.

3 tips for bidding on public sector contracts

  1. Make sure you’re eligible to apply

You must read the specification document carefully (even if it’s 80 pages). There may be important qualifications or accreditations you need in order to qualify. If you don’t have them and still apply, you may not be eligible. That would be a great waste of everyone’s time and resources. This can easily be avoided by reading the documents properly.

Once you’ve decided that it’s a worthy bid to go for, you can begin planning. Planning is essential to winning any bid. Buyers can tell if you have put thought and planning into a response.

  1. Experience is key

You will need to be able to prove that you have fulfilled other contracts similar in scope and complexity. A buyer wants to be reassured that you know what you’re doing. They can ask for up to three past case studies within the last 3 – 5 years. You should demonstrate how you overcame any challenges as this will show your flexibility and problem-solving skills. The more in-depth the better (although stick to the word count).

Keep them relevant and demonstrate the skills that you will be using in the contract you’re going for. This will enable you to showcase that you’re experienced. Including past contracts where you finished on time and in budget is a bonus.

A positive testimonial from past clients can really excel your case. Only do this if the word count permits, or if you’re asked. If you do this, be prepared to be asked for their contact information. This is so buyers can check if you’re telling the truth. It may sound paranoid, but they need to be sure. It is the government you will be working for, after all.

  1. Demonstrate added value

The state government will always be looking for bid responses that present added value. They want to get the most value for money from a vendor and will award the bids that demonstrate this.

Do you have any innovative solutions? Do your research and see if there are any stated that you can or do meet? Will hiring you enable them to achieve any targets/objectives/aims they have? This will give you a boost when it comes to reviewing your proposal. This can help you get one step ahead of your competitors.

In conclusion

So, now you know what a PIID is and why it’s used. A PIID allows for both buyers and suppliers to keep track of which bid is which. It gives a lot more information than you might have expected.

Hopefully, our advice will prove useful when you apply for your next bid. You should register with SAM before you begin. Then if you follow our above advice, you’ll see improved success when bidding on your next RFP.

Looking for support with your next bid?

If you’re still stuck on writing your bid response, we can help. Sometimes you just don’t have the time, resources, or experience to formulate a winning response. Luckily for you, we provide three bid and RFP writing support services. We can help you see success with your next bid. Our Bid Writing Consultants have over 60 years of bid writing experience.

Our services

RFP Writing

Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our writers will break down the solicitation documents, allowing you to see what the bid and the contract involves. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority.

Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.

RFP Mentor

Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents.

Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.

Proposal Ready

Do you need help with preparing a bid proposal? Proposal Ready can help businesses that are new to bidding for contracts or those in need of rejuvenating their content. Our Bid Consultants will create:

  • 3 designed and company branded case studies
  • 5 company branded and professionally designed resumes for key personnel
  • 1 company branded bid proposal credentials document that can be used to respond to future RFPs.

Find more helpful tips and advice in our blogs. We cover topics including:

 

All information and data on this blog site are for informational purposes only. Hudson Outsourcing LLC makes no representations as to accuracy, completeness, suitability, or validity, of any information. Hudson Outsourcing LLC will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS IS with no warranties and confers no rights.

Hudson Outsourcing LLC will not be responsible for any material that is found at the end of the links that may be posted on this blog site. 

Because the information on this blog is based on Hudson Outsourcing LLC’s own opinion and experience, it should not be considered professional financial investment advice. The ideas and bidding strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Hudson Outsourcing LLC’s thoughts and opinions will also change from time to time as the market changes and as Hudson Outsourcing LLC develops.

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