Understanding The Marketplace
It might at first feel like working for the government is very unpredictable. Contractors can be affected by various factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules.
However, all marketplaces can be volatile and change rapidly according to the whims of consumers. Therefore, a company needs to make sure that they understand the end buyer deeply and why they want to use their products and services.
This is also true for the United States Government. Therefore, you will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee the federal government as a solid client that can assure your business of a bright future.
Keeping Pace
Many people think that governments are slow to change. However, as the world becomes more complex, a contractor needs to keep pace with the changing federal marketplace.
For example, the government often goes for a “best value” procurement in times of plenty. This means that they are looking to award the contract to the company that can prove they can best handle a project because of past performance, subject matter expertise, and management capabilities.
When funding is more restrained, government contracts are often given out on a “lowest price, technically acceptable” (LPTA) principle. This means that the decision will be much more driven by the bottom line of price, even in complex projects. A company needs to understand what type of methodology a government agency uses to structure its bids correctly for a higher chance of winning the contract.
Accounting
The standard is higher for government accounting when compared to private commercial markets. As a result, contractors will face challenges in making sure that the federal government’s stringent accounting standards are met precisely.
Remember, the government has to prove how efficient they are with money because they spend taxpayer dollars. This means that federal contractors must be meticulous in their accounting methodology in case of an audit.
At first, these stringent rules of accounting can seem very daunting. However, today many cutting-edge technologies can take the pressure off by making even the most complex accounting procedures quite simple. Also, having a solid accounting system in place will only make your company better in the long run.
The United States Government Is A Very Powerful Client With Deep Pockets
The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government a lovely client. There are few other organizations with this type of spending power and clout.
The government also tends to buy goods and services in bulk. So if your business has the infrastructure to handle large orders, the government can help you grow substantially at an accelerated pace.
Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, they can help you grow substantially and rapidly. However, you also should be aware that working for such a large and powerful client is not without challenges.
Do Your Research
Once you have selected some agencies that require your goods and services, it is essential to research your customers. Luckily, nowadays, you can find out a lot about an organization online.
The United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy where the customer’s needs always come first. Identify the government agency’s pain points and then offer them your innovative solutions to their problems. This type of discipline always wins significant issues with the government. Here are a couple of examples of how you can find the information you need to win lucrative government contracts:
Inquire about the vendor Outreach Sessions and when will they be held
Inquire how your company’s products/services could help with the agency’s missions
Request meetings with Agency Program managers leading the contract requirements you’re pursuing
If you want to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, which describes how government money is spent, what agency is issuing awards, and who the federal government is buying from.
The Federal Government Has Government Personnel That Are Strictly Utilized to Help Small Businesses Be More Competitive In Securing Government Contracts
Here are some examples:
SBA Procurement Center Representative (PCR): Procurement Center Representatives are often located at a significant government buying office, even though they technically work for the Small Business Administration. They will identify items and services that small businesses could produce or provide and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.
Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the significant buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can be burdensome. They also try to expand competition for items by offering challenges to requirements that are not necessary for the performance or essential physical characteristics.
Small Business Specialists (SBS): The law requires that every government buying location have a Small Business Specialist. These specialists work specifically with small businesses to help them do business with that office. Larger government offices might have entire staff, while smaller offices might only have one part-time employee assigned to this role. Central government buying offices have full-time staff, while smaller offices have a part-time person assigned to that task.
SBA Commercial Marketing Representative (CMR): Commercial Marketing Representatives keep track of large companies working for their departments. These representatives are often the go-to person for fantastic subcontracting opportunities for small businesses.
It is wise to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to obtain government contracts.
Sam Directory Can Help
Again, the first step to obtaining lucrative government contracts is to register your business with SAM. Let us take this complicated process off your hands so you can focus on winning some of these valuable proposals. We can make your life easier and get you in the door to a very profitable new revenue stream with the government. As a savvy entrepreneur, you understand how using our site to register in the SAM directory is the first step