Any business doing work in the United States is likely to have a place working with the federal government if they uncover it. Determining the list of government contracts that is appropriate for that business is the challenge.
It is important to know that the federal government as well as state and local governments try there best to be inclusive for small business. This occurs by attempting to set-aside work that small business can perform and by allowing small businesses to partner with larger firms on more sizeable procurements.
The issue for most small businesses is winning that first contract and to do so you need to first create a list of government contracts in which to bid. We can help with this but there are also other ways to go about creating your list.
There are various web-based vendors that consolidate federal opportunities. These sites are generally viewed as expensive for small businesses that are on their initial attempt at breaking into the federal marketplace. Long-term these site can save time and have the added benefit that they will often find key opportunities your business might have missed because these sites can quickly generate a list of government contracts unique to your firms capabilities.
Some local governments, schools and utilities have vendor bid lists that will keep you abreast of their open bids. In the construction industry for example there are additional websites that work to consolidate these lists of contacts for you firm.
Ideally your list of upcoming government contracts had you dialed into the opportunity before the RFI (Request for Information) or the RFP (Request for Proposal) became public. This can give a well-organized firm an advantage because they can leverage their good relationship with the governmental contracting officers to shape the bid which will in turn provide your firm with an advantage.
Once the offer is out it is important to review all information as soon as possible. Pose your own questions as well as ask questions as these items can affect your bid.
For a first-time firm trying to get into the federal, state or local space it generally took between 6 to 18 months to win this first contract. Therefore, performing well on your first contract is key. This provides you with a resume that includes a list of government contracts you have completed, Cashe or reputation, as well as a past performance rating that will help you win future contracts.
Communication with the contracting officers and responding quickly to their inquiries or requests is critical as your business shifts to this new role.
Many successful small businesses in the federal space started off as subcontractors to larger firms. By gaining industry experience they have the “I can do that moment” where they make the realization that they now have the capability of going it alone.
Generally, firms with a special designation 8(a), HUBZone, WOSB, SDVOSB or in the State or local government sector an MBE or WBE utilized this advantage to create Joint Venture arrangements. Small businesses can also create these arrangements provided they are brining some unique capability to the table. Engaging in a Joint Venture can greatly increase the list of government contracts in which your firm has to bid.
The extremely large federal contractors have vendor registrations on their websites. This can be a great way of connecting with these firms as they generally look to these lists first before attempting to make calls to find vendors that have not taken the time to sign up with them.
For firms looking to Joint Venture the dynamic small business search or data.gov allows you to find other small businesses to join forces with. These joint ventures can take time to develop so we recommend that firms go through their existing rolodex first when seeking a Joint-Venture Partner as the knowledge and relationship the firms have to start with are the foundation for the trust needed to get the JV over the finish line.
Utilizing services like our own is not for everyone, as much as we like to provide low-cost government list building services many small businesses trying to break into federal contracting have very limited resources. You can be trained on how to take the actions required to build your own list of government contracts yourself by utilizing PTAC (Procurement Technical Assistance Centers). To locate the center nearest you go to www.aptac-us.org
Sam.gov - The System for Award Management site replaced fbo.gov and is the place to find current procurements. Only a percentage of federal procurement are placed on sam.gov so it is important to utilized additional sources.
FPDS.gov – FPDS shows the contracts that an agency has awarded in the past. This is important because often contracts are recurring, and this allows us to research who the federal procurement officer was that awarded the contract.
GSA Advantage – GSA Advantage is a website whereby GSA Schedule holders are able to list their products and services and buyers are able to make purchases directly from the website utilizing government purchasing cards. (In order to have your products listed on GSA Advantage your firm must be a GSA Contract Holder.)
GSA elibrary – This is the place that GSA Schedule Contract holders go to place their product and service catalogs. It is a place federal buyers go to do market research when they are inviting companies to bid on a non-GSA procurement.
GSA ebuy – This is a website where federal buyers can put out special bids, that only GSA Schedule Holders are permitted to bid. The procurements are generally more complex and require more feedback from vendors than a direct buy from GSA Advantage. However, the federal buyer is seeking to stay within the GSA system.
Fixed-Price Government Contracts – Are government contracts whereby the bidder puts a price together to complete a project and is awarded based upon total cost and the ability to complete the project.
Cost Reimbursement Contracts – This type of contract allows the bid winner to obtain federal contracts and get reimbursed for labor and materials + some level of profit. Because of this flexibility more regulation and scrutiny are placed as safeguards for these types of contracts. Reimbursement contracts work well for R&D type activities or one-off projects that a firm has the capability of completing but is providing a unique service.
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts – These contracts, when awarded, do not come with a monetary award. Instead, it works more like a catalog that the government buyer can purchase from at any point during the duration of the contract. The competition on these contracts is greatly reduced and therefore they can result in sizeable revenue for the participants.
Time and Materials Contracts – Is a contact where each part is bid out separately but it maybe unknown as to the full number of inputs required in the contract. These contracts are straightforward but require a great deal of administration in keeping track of the inputs for the services provided.
The easiest government contracts to win for your firm are dependent upon your industry, location, and capabilities of your firm.
Super Niche
If you are in a very tight niche and there is a certain agency that your product is a great match for then you need to approach that agency directly. We have seen this work from forest fire fighting tools to niche software to help attorneys react faster when at trial.
GSA Schedule Contract – the reason this is the easiest contract for a firm to obtain is because all you need is to qualify for the contract and you can obtain a place on the GSA Schedule. This does not give your firm a purchase order however it provides federal buyers with a FAR compliant way to purchase your goods or services. In many cases federal buyers will begin executing online orders with your firm using government issued purchase cards right away. For services it will be a place that federal buyers go to review your catalog to make a determination to award a purchase or to invite you to bid on a contract. Because the average number of firms invited to bid is generally around 7 and this yields around 3 bids submitted the overall competition is greatly reduced by holding a GSA Schedule Contract.
There are two major areas where the federal government engages in construction work. The first is office buildings which is around 20% of overall federal construction spending. The other 80% is with the DOD and Army Corps of Engineers. Many of our most successful construction firms engage in routine work with one or a few military bases. It is even better yet if the firm possesses some form of SBA Certification which gives the contacting officer the ability to direct award the money directly to your firm without it being under the micro purchase threshold of $10,000 while not having to place the contract out for bid.
There are many other ways that firms break into the federal marketplace however these are generally the easiest entry points for firms.
