How to Get Federal Contracts
Sunday, May 31st, 2009
By: Theodore Watson,
Government Contract Attorney & Consultant
I have seen many articles suggesting that getting government contracts is easy. See for example “how to get government contracts the easy way.” The truth is that government contract award takes some work and is probable.
Make no mistake about it; nothing is easy about federal contracting.
Large contractors are seeing a slight decline in federal contracts. However, they are currently wondering why.
The answer is two- fold:
- Most large contractors can afford to pay a staff of Request for Proposals (RFP) writers to crank out canned responses from RFP writing programs. The government is getting smarter and is looking for better value and more competitive response. Do large contractors understand how to accomplish this?
- Large businesses do not create genuine relationships with small businesses. Many times, a contractor will normally wait until an opportunity is posted, then scramble to find a small teaming partner or subcontractor. Again, agencies are becoming smarter at this and tend to shy away from large businesses that try to ‘pull a fast one.’
Getting Federal Contracts; How to Start on the Right Path
Government Contracting is a special ‘animal’ that requires study and dedication. The only legal requirement in getting government contracts is to be registered in the Central Contractor registration website (CCR). So many companies automatically start the road to the government in the same fashion as they would market in the commercial sector. This not only incurs unnecessary costs but at the end of the day, the probability of award does not increase.
- Just like any business venture, you must know the market before you start on a wild goose chase
- You have to know what agency has bought, and will be buying, your service or product
- Only after acquiring the above information has your path to success began
Federal Small Business Goals
Federal small business goals do not mandate an award to your company. As compared to state and county contracts, the Congress has tasked DOD to reach certain small business goals when awarding government contracts. For example, agencies have a 23% goal for contract awards to just small businesses. The following categories also have goals:
- Service Disabled Veteran-Owned Small Businesses (SDVOSB)
- Small Disadvantage Business (SDB)
- HUBZOne ( Historically Underutilized Business Zone
- Veteran-Owned
- Woman Owned
However, depending on who is speaking, there is a big misunderstanding of goals versus law. The government very seldom meets certain goal categories (namely HUBZOne and Service Disabled Veteran Companies.) Does this mean that the government has broken the law? Of course not!
The point here is that never want to assume that simply because your business has a certain status that you will get government contracts. As mentioned before, the key to getting government contracts is:
- Knowing the market and who are your targeted customers
- Building relationships within the agency
Positioning Yourself to Get Government Contracts
You must align yourself with the right companies and be able to solve the government’s problem. So many contractors (large and small) simply think that if they have the end user ‘in their pocket,’ that contracts will just flow to them. Realistically, this sort of thing does in fact happen.
However, the successful contractors follow a different road map. After market research is accomplished, you should accomplish the following things:
- If you are small business, then find a reputable teaming partner for any potential contracts
- You must identify any potential problem the agency has
- Develop your marketing materials to communicate a solution
- If you are selling a product, develop you marketing materials or presentations in a way that distinguishes your product AND how it will benefit the agency
The government wants to know two main things:
- Can you solve its problem
- Can you solve the problem with minimal risk and at a fair and reasonable price
As government contract consultants, we frequently get calls from businesses that expect to acquire a federal contract in 30 days. This is not only unrealistic but it tells me that contractors (large and small) really need more training on how to get government contracts. There are no get-rich-quick schemes in federal contracting.
You Must Know How to Write Effective Responses to RFPs
As a government contractor, you will more than likely have to bid for a federal contract. Opportunities are posted on www.fbo.gov. The agency will post its requirements and solicit responses. You must get up to speed on how to write effective and competitive proposals. Remember, the government wants to know whether or not you can solve its problem, and can you solve it with minimal risks and at a fair and reasonable price.
Learn How to Communicate Your Past Performance
Learning how to get government contracts means telling the agency who you are and what you’ve done. That’s all that matters. The government is not moved by high-branded names as may be the case in the commercial sector.
Many contractors incorrectly believe that if they have performed no government contracts, then their chances of getting an award in minimal. This is far from the truth. The problem is that you must learn how to communicate your past commercial experience and why it is relevant to a particular solicitation. Keep in the mind the following factors:
- The law requires the agency to give you at least a neutral rating if you have absolutely NO past performance
- Past performance must within the past 3 years AND relevant
- Remember that the government purchases commercial services and products
Our government contract consultants find common mistakes when a business bids on a federal contract. They include:
- Companies cannot write a proposal that separates them from the competition
- They cannot effectively tell the government about its problem and how the contractors knowledge and experience can solve the problem
- Many responses to solicitations attempt to capture unreasonable profits. Thus, the contractor looses the bid
Although the government is the largest customer for commercial supplies and services, you should not look at the agency as a “cash cow.” Agency’s typically already have a government estimate in place before the solicitation hits the street. With that said, the government often tends to have unrealistic estimates. This is a result on terrible market research habits.
Burden is up to you to communicate in your proposal that you have done your homework and that your prices are fair and reasonable when compared to the commercial market.
Getting Government Contracts on GSA Schedules
GSA is a quasi -government agency that creates a simple procurement mechanism for the agency to buy commercial services and products. However, getting on a GSA schedule is only but one way to position you to get government contracts.
Successful government contractors also scout the market to see whether the agency does in fact use the GSA schedule to purchase their particular service or product. Anything else is guess work! If approached correctly, you can get additional revenues by applying to get on schedule.
Look for Subcontracting Opportunities
Another way to get government contract dollars is to seek out subcontracting opportunities. The Federal Acquisition Regulation (FAR) requires that large businesses that are awarded government projects over $500,000 develop and solicit subcontracting opportunities to small businesses. This includes, HUBZOne, Service Disabled Veteran-Owned, Woman owned and Small Disadvantaged Business entities.
However, unless approached correctly, you may run into some problems such as:
- Large businesses giving the canned approach – “we don’t have any opportunities
- Your are told that “we have our own preferred subcontractors
- Your are told “there are no subcontracting opportunities
There ways to deal with these approaches. It is well know across the country that the government does not aggressively oversee large business subcontracting plans. As federal contracting consultants and former government contracting executives, we know this to be a reality.
Large Business Success
As a large federal contractor, there are always ways to improve your current strategy in getting government contracts. If you are a new contractor, you can invest in a well-versed and experienced government contract consultant on your team. Your focus should include:
- How to develop relationships with small businesses
- Learn how to better market your company
- Learn the best approach to events to get the best bang for your buck
- How to write more competitive responses to RFP’s
Small Business Success
As a small business, you must develop a plan of action that sets you on the right path to success. You should set aside a budget to get professional help on your team. If you are new to government contracting, getting the help you need can bring returns and improve your bottom line – more revenue. You must focus on:
- Market Research
- Developing Relationships with agencies
- Knowing the federal procurement rules
Summary
The government is the largest customer of commercial services and products. You learn how to effectively pursue the government market by getting experienced help. If you retain a consultant, ensure that they understand both the federal procurement rules and act on solid market data. Anything else is guesswork. Both large and small contractors are experiencing difficulty in getting government contractors. There is a reason why.
For more information or additional help, call Theodore Watson at 720.941.7200



How To avoid Mistakes When Bidding for Government Contracts



