The US government is one of the worlds’ largest buyers. In 2020, US Federal contract spending reached $681 billion, the highest amount on record. Spending on medical, research and development, professional services and information technology increased the most. Ignoring the contracting opportunities the US government offers is like ignoring the golden goose!
The Challenge
Many may find the process of seeking government contracts to be daunting. The process can be intimidating and there are multiple barriers to entry.
More on challenges businesses face in government contracting and how to bypass them.
Once you overcome the barriers to entry you can focus on the next step.
Sourcing Government Contracts
To become an expert at sourcing government contracts you should use the following advice:
1. Navigate SAM.gov Like A Pro
You need to become comfortable with SAM.gov. The website lists procurement notices from federal contracting offices. It has a search function that you can use to find pre-solicitation notices, solicitation notices, award notices, and sole source notices.
If you’re a beginner, they have a video tutorial on how to navigate search which can be your starting point. After you become familiar with the basics, you should learn how to follow contract opportunities, a feature that can be used to get updates on opportunities that interest you.
Understanding and navigating SAM.gov is a time consuming process as the site is not user friendly. If business owners are looking for a more accessible search function, they can turn to BidFortune. Its universal search function enables bidders of varying technical sophistication to search bids. BidFortune also has an instant alert feature that gives businesses an update on new bids within one hour of the government’s announcement. Take advantage of these features to save time while searching for government contracts.
2.Become A Subcontractor
Apart from SAM.gov, businesses can negotiate with current government contractors, called prime contractors, to form a partnership with them. Instead of directly working with the government, you can become a subcontractor that works for prime contractors, and get the opportunity to gain experience before you make an independent bid.
Advantages Of Being A Subcontractor:
● Vendors save on costs and gain access to the resources needed to manage a large government contract.
● New businesses gain valuable experience and an opportunity to build a network with the relevant agencies.
● Subcontracting can become a springboard to future direct contracts with the government. This helps businesses understand the needs of the government procurement officer and learn from industry veterans.
Disadvantages Of Being A Subcontractor:
● Non-compete clauses can prevent subcontractors from bidding on similar contracts.
● Subcontractors don’t have proprietary rights to their work.
● Ample scope for miscommunication, as the subcontractor may not be part of discussions with the government. This might lead to subcontractors encountering difficulties and bearing responsibility for things outside their control.
● Finding a partner can be very tough as the competition is stiff.
How To Find A Prime Contractor?
You can find a prime contractor by approaching the key leaders in your industry. Attend industry events and showcase your expertise in the field to gain the confidence of key leaders.
Apart from the above, BidFortune’s Similar Award Search feature can help you understand the competition and leverage the same to put across a stronger proposal. In their evaluation process, the prime contractor evaluates each proposal on the basis of the company’s ability to perform all of the requirements of the contract, its past performance record, whether the company can deliver, its pricing and its quality assurances. If you have insights on the companies that won the government bid in the past, you’ll have a significant advantage in the evaluation process. This feature can also help you find potential partners.
3. Take Advantage Of Diversity Programs
Many contracts require that a percentage of the contract be carried out by certain diverse businesses to meet funding goals. If you are a:
● Small Business
● Woman Owned Business
● Veteran Owned Business
● Minority Owned Business
You may gain a competitive edge if you have the necessary certification. Do get certified by the relevant third party agencies before bidding on the contract.
In FY19 the federal government not only exceeded its small business contracting goal, it awarded a historic $132.9 billion or 26.50 percent in prime contract dollars to small businesses.
4. Take Advantage Of Mentorship Programs
The U.S. General Services Administration(GSA) has a mentorship program to encourage and motivate prime contractors to assist small businesses in obtaining contracts as well as get subcontracting opportunities. The GSA Mentor Protege Program helps enhance the capability of small businesses to perform successfully on future GSA contracts and subcontracts. Under this program, eligible small businesses can act as suppliers or provide services to any prime contractor with an approved plan negotiated with GSA. Small businesses interested in being a part of this program are encouraged to read FAR Subpart 19.7.
Take advantage of mentorship programs like this and leverage the same to win government contracts.
You can find more information on the GSA Mentor Protege Program here.
5. Documentation Can Help Make Or Break Your Bid For A Contract
Government agencies are especially vulnerable to liability. That is why they focus on working with businesses that present all the relevant documentation. Ensure that all the necessary documentation is done before bidding on a contract.
Meet each and every specification they require even if it seems redundant at first glance. The government stresses on this point and doesn’t award contracts if a business doesn’t dot the i’s and cross the t’s.
In Conclusion
Sourcing government contracts is not rocket science but it is important to conduct the necessary research to find the right contracts, understand your target agency and the key players in your field. Bid-matching services like BidFortune that have features like deep search, market insights, similar award search and instant alerts can help simplify the contract sourcing process to a large extent.
You can start a 15 day FREE TRIAL of BidFortune today. No credit card required.