Government contracting requires detailed knowledge of the procedures involved. In fact, it has been suggested that businesses with such procedural know-how win over those with better technical expertise. Fortunately, there are several opportunities for learning how to win and execute government contracts.
What are Government Contracts?
The government needs supplies and services for governance, defense of the country, huge programs like space research and provision of various services to citizens. The requirements range from simple janitorial services to complex space and military systems. The value of contracts given out each year can reach hundreds or even a thousand plus billions.
Government contracting is thus a market of its own. Large firms of contractors dominate the field. However, government policies dictate that a certain part of the contracts should go to small businesses. These small businesses typically act as sub-contractors to the prime contractors, and might even grow into prime contractors in due time.
By demonstrating your capability to provide specific supplies and services on competitive terms, you can tap into this market. Competition might not be that intense as entry into government contracting requires much more than technical competence and normal business know-how that most businesses possess.
Special Features of Government Contracts
In addition to meeting government's requirement of supplies and services, the contracts are also used to implement specific policies. As already mentioned, a certain part of government spending will reach small businesses, thus helping their development. Additionally, government can increase its spending in times of economic recession, or to develop economically backward regions, to make available jobs and income to the people.
How to Win Government Contracts?
Winning government contracts is not a simple matter of submitting your proposal in your business letterhead to the concerned government department and then waiting for the order to come in!
You will have to go through the details and fine print of the Invitation to Bid (IFB) or Request for Proposal (RFP) that the government puts out. Your response should meet all the special requirements in addition to demonstrating your capability to do the work. The capability itself might have to be presented in a specified format.
The agency to whom you submit the proposal will typically conduct pre-award surveys to determine your capabilities first hand. A visit to your business facilities might be involved during which the survey team will confirm the physical existence of your organization as well as its technical capability and human resources. The agency might also ask for additional details not provided in your original proposal.
Where required physical facilities or human resources are not already available, you should be able to demonstrate that these will be made available in required quality and time as needed. The queries for additional details can be pointers to any weaknesses the agency perceives. Use them as an opportunity to take any remedial actions necessary as well as to present in convincing detail how the concerned issues will be handled.
Another key requirement for winning government contracts relates to protection of intellectual property and national security. You will have to pass necessary scrutiny and comply with specific procedures to satisfy the government that you will be a dependable and trustworthy contractor.
One key evaluation criterion is past performance. If you are new to government contracting, you might not have any record to show. The best option in such a case is to gain experience by acting as a sub-contractor to prime contractors.
Because of the government insistence on the involvement of small business, major contractors will often have to farm out such sub-contracts even if they might otherwise do the work themselves. In these cases, it is the prime contractor who will be conducting the pre-award survey about your capabilities.
We mentioned about IFBs and RFPs above. In the case of an IFB, it is the lowest bidder who usually gets the contract, provided the bidder can demonstrate required technical and other competence and facilities. An RFP will typically involve a proposal outlining the full Scope of Work (SOW). RFPs will be required for new technology development and such other works with no precedents.
What it all means is that winning government contracts involves more than technical competence and the availability of a full set of physical facilities; you need detailed knowledge of the procedures involved.
Learning about Government Contracting
One excellent source to gain an understanding of the issues is the Small Business Federal Government Contracting blog that goes into great detail about each issue.
The US government small business support agency, SBA, also provides training to small businesses interested in government contracting. See their Web page on Contracting that points to the several free training courses that SBA provides.
The courses will also help you become aware of the several programs and regulations such as the Recovery Act and 8(a) Business Development Program that encourage award of government contracts to small and women-owned businesses.
The Federal government requires hundreds of billions of dollars worth of supplies and services each year and obtains them by awarding contracts. Small businesses can speed up their growth by learning about the procedures and issues involved in winning government contracts. Government policy dictates that a specified percentage of government contracts must go to small businesses. There are many resources that provide required training and support to small businesses for taking up government contracting.
Join the Conversation