How to Begin Government Contracting
By Judy Bradt, Summit Insight LLC
The U.S. federal government will spend over $400 billion this year on goods and services. State and local government contract spending will hit $5 trillion. Those contracts will include commercial and consumer items and professional services as well as highly specialized niche technologies, and everything in between.
Yet a recent study shows that women-owned firms are under-represented in 87% of federal contracts (see RAND Corporation’s April 2007 report). Governments need women’s vision, ideas and innovation more than ever right now! If reliable new customers are important to you, a small investment in learning how the U.S. government buys can bring you new business.
Women should be naturals at government contracting:
- We do our homework before rushing in.
- We have practical solutions to everyday problems.
- We’re relationship-oriented with our clients and our networks.
- We’re patient and determined to reach our goals.
Pursuing those opportunities could bring your company long term growth...or waste valuable corporate resources. Five tips suggest whether you’re ready to take on the world’s biggest buyer.
1. Strong Performance Today and Determination for Tomorrow
Successful suppliers realize the investment they’ll need to make in order to pursue, win, and perform government business. You never hear them say, “Sure, we’d open an office and expand if we won a big contract." Government customers want reliable suppliers with established track records Some contracts explicitly require vendors to show a couple years’ commercial track record in order to be considered.
2. A Unique Value Proposition--for Government
Successful vendors have researched exactly which government buyers benefit most from what they offer, and craft their marketing campaign precisely to reach those buyers. They create online content and literature to focus on issues and challenges that government buyers face. They can articulate in the buyers’ language how their offering stands apart from the alternative options the buyers have.
3. Relationship Mastery
Successful vendors know that when you sell to government, you’re not selling to a process or an order machine. Government buyers do business with people they know and like and trust, people who understand their needs exquisitely well--even when they have to follow complicated rules to do that. Winners have genuine passion for helping their clients solve problems. They build their own formal networks, like creating a corporate board of advisers that includes former government employees. They are active contributors to industry networks. And they are alert to the casual perfect connection that a friend or neighbour can bring.
4. Focus on the Details
While relationships are essential to attract the business, governments operate under complex rules that vendors must know. Companies who hold government contracts--whether as a prime contractor or a subcontractor-- must be aware of and comply with dozens of precise requirements. Non-compliance can bring instant death to a proposal you spent thousands of dollars and weeks of time to prepare. Government contracts carry legal obligations that can include workplace regulations and contract administration as well as product specifications or service performance standards.
5. Get Some Know-Who, not Just Know-How!
Spend smart, but not skimpy. Winning women seek top insider connections and know the value of specialized help. Successful contractors engage experts and invest in market research to develop cost-effective government marketing strategies. They’re visiting the perfect prospects--and shaping requirements--long before contract notices are posted online. They know how they’re superior to their competitors in every way. They shop around and check references to hire the best insider experts they can: people who can help them target the best opportunities, connect them with the right partners and buyers, and plan for critical marketing activities and expenses.
Judy Bradt, Principal & CEO of Summit Insight LLC of Alexandria VA, has been quoted by Entrepreneur Magazine and Fortune Small Business. She has been interviewed by ABC Radio, Amtower on Success, and Rogers Business Television. Her articles have appeared in the SOHO Business Report, Champions Magazine, and FrontLine Security.
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