Shareholder Question: U.S. Government

QUESTION

  • When the U.S. Government purchases from a company, does one group purchase for the Navy? Or does one group purchase for all government entities? How long does it take from where Winning Brands is now to know when the U.S. Government will make an order? Also the three products that the government is interested in 1000+, Kind and Clean 1, have they tested the products?

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ANSWER

In general, government agencies each purchase items that they need for their own use, individually.  The procurement system is designed to to make it easy to buy suitable approved products from approved vendors, and hard to buy things outside of the system.  There are various ways for government agencies to go about the purchase.  In some cases it can be done online from the government purchasing portal simply by an authorized  indivual using a government issued credit card.  In others, the vendor is contacted directly.  To be awarded a contract by the GSA is to become acknowledged by the U.S. Government as an officially recognized and permitted supplier of approved products, at pre-negotiated prices, to the agencies that would like to buy them.

We are currently engaged in price negotiation.  This is the final step before receiving the approval.   It is not clear how much time this will take, however there are no apparent obstacles or major differences of opinion.   Pricing negotiation includes issues beyond the actual price, to include shipping, minimum order, delivery time, return policy, to name a few others.  Prior to this stage, the government examined the company and its offering.  We are not currently aware of any factor that will impede a successful outcome.

We have provided samples of all products that we have requested approval for.  The exact fate of these samples is not reported back to the vendor.

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