Ultimate Guide on How to Win Government Contracts
It is not new for businesses to bid on government contracts. The United States’ government is the largest buyer of goods and services globally, with total acquisition dollars reaching 235 million USD in 2002 alone.
However, it is not easy for small businesses to win government contracts. According to the U.S. Small Business Administration 2012 report, it is noticed that small businesses only get 22.5% of the federal contracts and only 4 percent of it is awarded to the businesses owned by women.
Though it is difficult to win government contracts, they can be lucrative for both small and large businesses to increase their revenue and expand business..
With a plethora of buying practices of government agencies, including contract bundling and the failure to go to vendor networks developed outside, it is difficult for businesses to even bid on, let alone win government contracts.
Here are four tips to help you navigate through the complex process of government agencies and win government contracts.
1. Decide your products and services:
The first and the foremost step that would help you compete for the government contracts is figuring what type of products or services you want to provide. It is key to understand the government agency’s need to win contracts successfully. It is always a good idea to consult an SBA Procurement Center Representative (PCR). Businesses that have secured government contracts include the following products or services:
- Information technology for pharmaceuticals and healthcare.
- Creation and fabrication of defense vehicles.
- Aircraft servicing, repair, and accessories.
- Technology and connectivity.
- Gas turbines and engines for jets.
- Missiles, explosives, and ammunition
- Fabrication of naval vessels.
- Aircraft Manufacture.
2. Create a network:
Some government agencies provide workshops and training. Attending these workshops will bring you one step closer to prepare your businesses to bid for government contracts. It is recommended to work with a mentor who can guide you with the government procurement processes and the best ways to construct your bid.
It is important to contact government agencies to understand their needs. Most federal agencies have small business specialists who can assist you better. Once you have established a relationship with the procurement officer, try connecting with other government officials or other government organizations.
For example, the Office of Small and Disadvantaged Business Utilization (OSDBU) can help you in the contract bidding process.
3. Prepare your contract bid:
The first step to prepare your contract bid is to create an outline of your business’ skill and capabilities, past performance, and background information on your key employees. It is crucial to pursue contract opportunities that align with your business capabilities.
Not all small businesses win government contracts since government agencies also rely on past experiences and projects. After the government’s bid package is released and you have understood the solicitation, ensure you demonstrate how your business aligns with the government’s needs.
Once your proposal is completed, submit your bid before the solicitation period ends in the manner indicated in the bid process
4. Don’t lose heart:
It may take a while to win your first government contract; but you must continue to seek government contracts and refine your bid proposals continually. Small businesses usually put on more than three prime contract bids to attain a government contract.
The Outline:
- Adapt your business services to the government contract needs
- Bid on smaller contracts at first; your performance record will help you secure bigger projects
- Keep trying, as it is highly unlikely you’ll get the contract in the first attempt.