Preparing for Government Contract Bidding
Getting Ready for That First Public Works Award
Government contracts are very specific and detailed. The rules, terms, and procedures are all set forth in advance. Understanding this is very important, but many businesses aren't used to such stringent requirements.
Full details will be included in the bid package, which comes from the agency that puts out the RFP. As the old expression goes, "the devil's in the details." Bidders should carefully read all of the documentation because once the government signs the contract, it becomes binding to the winning bidder.
Bidders who have any questions whatsoever need to obtain clarification in advance, and it must be in writing. Along with thoroughly understanding the bid notice, it's also crucial to read the entire contract itself and look for discrepancies with the RFP. Never assume the paperwork is perfect.
Government's Mandate with Private Enterprise
The key to success with government contracts is to be familiar with procedures, and to know exactly how to proceed. Agencies are usually willing to walk bidders through the process, provided they aren't being asked to do the bidder's "job" as well.
In fact, many agencies are required to help bidders...even to actively recruit their services. The government (federal and state, as well as a great many municipal agencies) actively seeks participation from small business when purchasing goods and services. It also spends money for outreach programs to find good, qualified suppliers, and often provides guidance to help bidders go forward with minimal risk.
Market Factors Still Matter
Another advantage to government contracts is that bidders can find out how much was purchased the last several times, who won the contracts, and how much they were for- insights not easily found in private contracting.
The same business basics apply to selling to the government as to private clients. Both are looking for quality at a fair price. And in both instances, bidders have to know their clients' needs, as well as how they buy and who makes the decisions. Getting to know the decision-makers is as important in government contracting as it is with private clients.
Preparing for RFP Opportunities
The best way to get ready for bidding on government contracts is to do some research. The government itself is a great source of no-cost information, and agencies are usually staffed with specialists whose job it is to work with, and promote, small businesses during the contracting process. The Internet is widely used by government agencies at every level to provide information and forms to businesses, with more agencies adding web pages every day. Finding information and support has never been easier.
The U.S. Small Business Administration (SBA) is an excellent resource. In 2003, SBA partnered with the U.S. Chamber of Commerce to create the Business Matchmaking Program. It's designed to provide economic stimulus to small businesses by improving access to federal, state, and local government contracting opportunities. Based on government statistics, federal agencies are still behind on meeting their goals for small business contracting. The Business Matchmaking Program intends to help bring in new vendors.
Another source of information is government-sponsored as well as private business counseling services. Seminars range from introductory sessions to in-depth training for contracting with specific agencies.
It's also important to not overlook other companies that have done business with the government. Many successful government contractors take advantage of networking opportunities provided by their local Chambers of Commerce.
The most expensive method- but arguably the most effective and profitable for landing government contracts- is through private consultants. Not only do they know the ropes, but they might be able to provide introductions to people who can assist in a successful bid.
It may seem to new bidders like they have to negotiate a maze just to land a job, but most of the challenges can be overcome on the first try. After successfully winning that first bid, future government contracts are not as difficult to obtain, and the relationships built between contractors and government agencies often result in many years of ongoing business- and profits- for those who take the time to learn the system.
Good Prep Leads to Government Contract Awards
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