Looking to bid for bigger? This guide has you covered. Here’s how to secure larger government contracts than you thought possible.
The United States government is the global leader in consumer purchased products and services. In 2015, nearly $439 million was spent on federal contracting.
As a potential bidder, this should be of grand news to you.
However, we all know securing a contract isn’t always rainbows and sunshine. Okay, it’s usually never rainbows and sunshine.
With such a large amount of contractors vying for a chunk of that change, it’s important to educate yourself as much as possible and to be on top of your game when it comes time to bid.
Read on to learn how to increase your chances of obtaining a larger procurement.
Determine Your Market
Business owners looking to procure a large contract should avoid taking a ‘shotgun’ approach when defining their target. In an ideal world, there would be an incessant need for your product/service and it would appeal to everyone. However, that rationale is not feasible and can become a costly mistake.
In an ideal world, there would be an incessant need for your product/service and it would appeal to everyone. However, that rationale is not feasible and can become a costly mistake.
Instead of targeting an abundance of buyers, hone in on your procurement search. By researching government contracts for bid, you will be able to devote more time in drafting proposals and ultimately landing better bids.
While teaming may not have been a favorable approach in past decades, it has begun to increase momentum as of late. Teaming with another contractor augments in-house capability, giving you a competitive advantage.
For small or new businesses, teaming with a more experienced contractor can assist in building your brand. You also receive mentorship from someone who is seasoned in this industry.
However, it is common for teaming to go south due to miscommunication, unclear roles and responsibilities, and lack of trust and respect. When teaming with an affiliate, you must be willing to have an open and trusting relationship with one another and adapt to each others’ strengths and weaknesses.
When teaming with an affiliate, you must be willing to have an open and trusting relationship with one another and adapt to each others’ strengths and weaknesses.
Embrace Your Uniqueness
Contracting with minority and women business owners is being heavily encouraged to promote unity and inclusivity within federal spending. If your business is run by either, owners should emphasize this in their paperwork to give your company a competitive advantage.
2016 was a record-breaking year for women business owners as the federal government awarded 5% or $17.8 million of its spending to female-owned companies. That number is predicted to increase.
Various organizations are offering support and networking opportunities exclusively for minority and women-ran businesses.
Minority owners can get involved with the National Minority Supplier Development Council which helps identify contract opportunities. The Small Business Administration offers the Women-Owned Small Business Program that provides counseling and exclusive networking opportunities to female business owners.
Expand Your Circle
Establishing an in-person network is imperative to finding success with contracting. Maintaining strong relationships with others will improve your chance of securing a larger bid because it opens lines of communication and allows you to gain more experience/knowledge in this field.
Do not be idle when visiting trade shows, expos, or bidding conferences. Talk to neighbors and other attendees for they may be a veteran contractor or even better, a procurer.
To conclude, knowledge is power when it comes to government contracting. If you are interested in being a part of the nearly 4 million businesses who receive federal dollars, make sure to do your research on who’s buying, what’s selling, and where your company can fit in within this operation.
Do you have any more tips for procuring larger bids? Share them with us in the comments!