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Rss Directory > News > Economy & Business > Government Contracting Best Practices


Articles and tips on how your business can win more government contracts.
 
  Sat, 28 Jun 2008 01:54:39 +0200
On June 9th, 2008 the Supreme Court unanimously ruled to increase the burden of proof on the government’s side when prosecuting subcontractor fraud under the False Claims Act.
On June 9th, 2008 President Bush amended Executive Order 12989, which has to do with federal contractors’ compliance with immigration laws. Under the new amendment, all federal contractors must electronically verify their employees’ immigration status in order to do business with the federal government. This can be done using E-Verify, a free internet-based system run by the Department of Homeland Security and the Social Security Administration; federal contractors can validate new employees’ Social Security numbers against the SSA’s databases to ensure their workers are eligible for employment in the U.S.
We’ve added a new feature to Government Contracting Best Practices! Moving forward, readers will be able to submit comments on Government Contracting Best Practices posts. We’ve also enabled comments on the over 200 pre-existing posts. If you have a question about a topic discussed in a particular post, or would like to [...]
Higher educational institutions such as colleges and universities are often a good source of contract opportunities, especially in industries such as construction and maintenance. However, many government subcontractors overlook the fact that university departments are often themselves pursuing government contracts. Increased competition in the public sector can make subcontracting opportunities scarce. Having a solid working relationship with relevant departments in your local higher learning institutions can be a hidden wellspring of subcontracting opportunities.
Many companies, especially small businesses, make the all-too-common mistake of surveying market data once and assuming it will stay the same. A surprise might be nice on your birthday, but when it comes to your business opportunities, a surprise is the last thing you want. With adequate market intelligence, it’s entirely possible to plan ahead so that your business is primed to rise to any upcoming challenge – or seize any upcoming opportunity.
  Fri, 25 Apr 2008 02:46:18 +0200
The GSA is always trying to streamline and simplify the procurement process, for agencies and contractors alike. Part of that ongoing effort is centered on making sure that GSA Schedule users know how to use the program, and use it well. To that end, the GSA created the Center for Acquisition Excellence.
  Thu, 10 Apr 2008 00:49:44 +0200
The National Contract Management Association (NCMA) has declared the week of April 13 – 19, 2008 to be Contract Management Week. The NCMA announced Contract Management Week in an effort to recognize the thousands of hard-working individuals working on both the contracting and procurement sides of contract management.
A small business owner recently wrote in to Fortune Small Business’ “Ask FSB” column asking for advice on penetrating the federal market. She was the owner of a software-as-a-service company that was looking for some best practices to start their government contracting efforts. Fortune Small Business tapped Onvia, along with Austin-based Strategic Partnerships, to share our federal marketing expertise.
  Sat, 29 Mar 2008 00:46:46 +0100
In 2005, the Office of Management and Budget released a mandate requiring all federal agencies to switch from Internet Protocol version 4 to version 6. As the June 2008 deadline for the switch approaches, the mandate provides an excellent example of how government technology mandates are a jumping-off point for contractors to find government IT jobs.
  Thu, 20 Mar 2008 00:52:20 +0100
A lot of businesses enter the government contracting arena with the expectation of the “$1000 mousetrap” – that is, the idea that government work is a cash cow that can be milked by exorbitant over-pricing. They are often given a rude awakening when they find that profit margins on government contracts are often quite slim, and may have a cap as low as 10%. In a slow economy or a competitive industry, bidding wars drive prices and profit margins to new lows. With this kind of bid environment it becomes more and more important to track your government bid efforts, your successes and your failures, in order to run the tightest ship possible.
  Thu, 13 Mar 2008 22:18:12 +0100
Privity of contract is something that affects every government subcontractor, even if it never really comes up. Knowing your rights under contract privity will be crucial if a subcontract dispute ever arises.
As the economy slows down, it seems like everyone’s battening down the hatches for a recession. There’s a lot of doom and gloom in the press right now about reduced spending in 2008. The recent economic downturn has spooked a lot of people, many of whom are wondering: is it possible to build a recession-proof business? There are many steps to be taken to protect your business from the difficult time ahead, but when the time comes to recession-proof your business, government spending research can be a big step in the right direction.
For a small business, starting to pursue federal contracts can seem like an impossible task. A lot of complicated rules govern federal contracts, and for a small business owner who’s been pursuing private-sector contracts, the prospect of facing the added paperwork and documentation requirements of the federal government is a daunting one. The biggest obstacle for many small business owners is simply to overcome that sinking “where do I even start?” feeling and make a solid beginning. After all, it’s hard to improve on a program you haven’t even built.
  Tue, 05 Feb 2008 21:08:45 +0100
In December 2007, new FAR regulations were enacted requiring businesses performing certain contracts to have a written business code of ethics. All federal contracts over $5 million must now contain a clause requiring the contractors to have concrete ethics policies in place, as well as internal controls to maintain them, within 90 days of the contract award. The only exceptions to this rule are contracts for commercial item acquisition and those that will be performed outside of the United States. The new regulation also applies to subcontracts that are for over $5 million and that have a performance period of 120 days or longer.
In 2007, the Small Business Research Board conducted a study on how U.S. small businesses use the Internet and eCommerce. The SBRB/Business Today Small Business eCommerce Study surveyed over 550 small businesses nationwide on their current and projected Internet sales and eCommerce activities. Overall, 42.7% of study participants indicated that their companies had no web site at all, indicating a major opportunity for small businesses to add value to their marketing efforts by adding a web site.
Participating in a subcontracting job can be a positive work experience, building up your resume as well as new industry contacts. It can also be a nightmarish mess of roadblocks, misunderstandings, and disputes. A big part of what can make or break your subcontracting experience is put in place before the work even begins: in the subcontracting agreement.
  Sat, 26 Jan 2008 02:00:03 +0100
The American Institute of Architects recently released a 58-page report titled Local Leaders in Sustainability: A Study of Green Building Programs in Our Nation’s Communities. The report covers data collected by the AIA from 606 U.S. cities, all with populations over 50,000. Of those cities, ninety-two have active green building programs, while another 36 cities have green and sustainable building programs in the works. From the report:
It’s happened to every government contractor. The perfect contract opportunity arises, but by the time you hear about it, there’s barely enough time to complete the proposal, let alone build the relationships necessary to give the agency an idea of the value your business can provide. The fact is that most contractors are entirely dependent on referrals and repeat business to find work – without an existing relationship, it’s almost impossible to win a contract. Cold calling can help build relationships, but these things take time, and it’s difficult to know which agencies will be offering work in your field in the near future.
  Thu, 17 Jan 2008 23:44:48 +0100
Writing your government proposal may not feel much like writing a novel or newspaper article, but one adage remains true for just about every kind of writing imaginable: it’s almost impossible to properly edit your own writing. You’ve spent so much time on the project, it’s difficult to separate what you mean to say from what you’ve actually said, and spotting inconsistencies can be tough. This is just one of the motivations behind forming a proposal review team, commonly known as a “red team.”
  Wed, 16 Jan 2008 01:41:55 +0100
Many companies first look at public sector contracting while considering broadening their market. Whether you’re working in a highly competitive space or in a niche market, entering the public sector can open up a wealth of new client possibilities. However, contracting with the government involves a substantial investment of time and resources, from writing a government RFP response to performing the contract. Since many federal contracts are cost-reimbursement contracts, government contracting may also involve a substantial outlay of funds. These factors can make it difficult to convince a director or CEO that public sector contracting is the way to go. Here are some persuasive reasons to expand into the public sector:
  Thu, 10 Jan 2008 19:30:55 +0100
In recent years, the Government Accountability Office has increased focus on organizational conflicts of interest with government contractors. Government contractors should keep a close eye on potential conflicts of interest. If the agency discovers an organizational conflict of interest (COI) that the contractor hasn’t disclosed, it could delay the award while the COI is investigated – or worse, disqualify the contractor for the award altogether. It’s not enough to gloss over potential areas of COI in hopes the agency doesn’t notice; in this information age it’s easier than ever for your competitors to investigate possible conflicts of interest and protest the awarded contract should they find one.
Government sales can seem intimidating. When people think of “the government” they often view it as a gigantic, faceless bureaucracy. The government is more strictly regulated than the private sector, which can also be daunting if you are unfamiliar with the regulations in question. These perceptions can make it difficult to know where to start your government sales process.
  Mon, 31 Dec 2007 20:29:15 +0100
Breaking in to the government market can be difficult, especially for a smaller company. I've written before about partnering and teaming as a strategy for businesses without much government contract experience to expand their contracting resumes. Subcontracting with a prime on a government contract is another way to benefit from another company's experience while building your own. It's not always easy to find prime contractors, though, and subcontractors new to the game may have trouble building the contacts they need. I've compiled a list of websites that list prime contractor information. Researching these tried-and-tested primes is a jumping-off point for subcontractors to find more contract opportunities.
  Sat, 29 Dec 2007 01:31:39 +0100
Contractors who have focused their efforts mainly in the federal space may have trouble expanding into state and local markets, but with hundreds of billions of dollars spent on state and local government contracts each year, they are a revenue source that shouldn’t go untapped. One of the biggest hurdles a federal contractor must overcome is the adjustment from the consistence and predictability of federal regulations to the idiosyncrasies of various city, county and state policies. These policies can seriously affect the amount of risk associated with a contract. It’s important to be familiar with how contractor risk changes with various clauses. Here are some areas to keep an eye on:
  Wed, 26 Dec 2007 22:57:39 +0100
Working in a niche market has its advantages. Having fewer competitors means a niche business can spend less time protecting its market share and more time discovering new sales opportunities. On the other hand, niche companies are often frustrated when demand for their products or services doesn’t match their revenue goals. The government arena has an enormous amount of potential for new revenue sources. However, moving into the government arena requires a solid understanding of the government market – the best ways to maximize opportunities may not always be the same in the public sector as your private-sector strategy.
  Fri, 21 Dec 2007 23:02:39 +0100
In the last several years, the federal government has been making a huge effort to improve the quality of small business contracts and subcontracts, and Department of Homeland Security jobs are no exception. Even though all large Department of Homeland Security jobs require the contractor to submit a subcontracting plan of their small business subcontracting efforts, the jobs subcontracted out don’t always offer small businesses a lot of growth opportunities. To foster small business growth, as well as create mutually beneficial relationships between prime and subcontractors, the Department created the DHS Mentor-Protégé program.
  Thu, 20 Dec 2007 01:59:55 +0100
I frequently get calls from contractors who are interested in contracting with the government, but don’t know where to start. Many contractors worry that their lack of experience with government RFPs could keep them from ever breaking into public-sector work. It’s true that performance on past government projects is often considered in a contract award, but a government RFP response from a company with no prior government experience won’t necessarily be disqualified as long as they can demonstrate relevant experience in the private sector.
If you’re pursuing government contracts at the federal level, you’ve most likely come across a Department of Defense (DoD) contract or two. Defense contracts count for billions of dollars of contractor revenue each year, so they are definitely worth pursuing. Working with the Department of Defense will usually involve dealing with the Defense Contract Management Agency (DCMA).
In October, I sat down with Fortune Small Business magazine to share my small business marketing and contracting expertise. FSB contacted me, along with two other contracting experts, to give advice to growing remote-communications company Nomad Technologies. 60% of Nomad’s clients are government agencies, but company founders were facing a great deal of frustration with the procurement process. I saw several ways that Nomad could increase the effectiveness of their small business marketing efforts; today, I’d like to share that same advice with you.
While subcontractors are not responsible for drafting or enacting subcontracting plans, it’s still important to be familiar with the rules governing them. Small business concerns should note the myriad ways that subcontracting plan regulations attempt to level the playing field.
Did you know that clean-up efforts from Hurricane Katrina continue to this day, over two years after the hurricane struck? With the massive property damage sustained during natural disasters such as storms, floods and wildfires, disaster-related contracts are made available long after the initial push for relief efforts has dissipated. In areas such as southern California, where wildfire risk is high each year, or the Gulf Coast, which is often battered by tropical storms, rebuilding may be an ongoing process. Competing for disaster relief contracts not only gives companies a chance to help out in their communities, but can also be a good source of government contract revenue.
  Fri, 30 Nov 2007 23:59:23 +0100
Government business intelligence can help contractors get the information they need to compete for contracts, but doing the work to win the contract is still up to the contractor. Opening up a business to government contract work is a large and sometimes overwhelming task. It can be hard to know whether you’re taking all the necessary steps, and with no feedback on whether they are doing it right, some contractors choose to give up on public-sector work altogether. This is a shame, since government agencies make up a large portion of the contract landscape and are reliable customers. Contractors who are just getting started in government contracting often find their local Procurement Technical Assistance Center to be a wonderful resource.
Companies that are considering becoming federal contractors should carefully weigh the toll a federal contract might take on their businesses before proceeding. If your company is looking for a way to find work that will quickly bring in cash, federal contracting may not be the right choice. Before beginning to actively pursue federal contracts, you should ask yourself: Can you afford government contract work?
  Tue, 20 Nov 2007 20:54:44 +0100
In the list of top ten blunders your government bid should avoid, the #1 blunder is using complex language. In any industry, there are certain terms that are used every day by those in the know, but may be incomprehensible to people on the outside. Even though a government RFP has probably had some research put in to it, chances are that the buyers won’t be nearly as familiar with your industry and products as you are, so it’s important to make sure your government RFP response will make sense to a layperson.
As state economies constantly adjust and re-adjust to the myriad factors that influence them, occasional spending cuts like the ones recently enacted in California are inevitable. That doesn’t make it any easier for a California contractor who may have been counting on state contracts as a source of 2008 income, though. In times of budget cuts, protecting your market share becomes more important than ever. So what is a California contractor to do?
  Fri, 09 Nov 2007 21:04:44 +0100
Government Contracting Best Practices regulars have probably noticed that things have been a little slow around here in the past few weeks. We’ve had our hands full here at Onvia, but starting next week, Government Contracting Best Practices will be back to its regular post schedule. In the meantime, you’re invited to explore:
  Thu, 01 Nov 2007 00:36:13 +0100
When managing a government contract, the personnel you’ll be dealing with are much more closely regulated than they are in the private sector. The Federal Acquisition Regulation is fairly strict on which contracting officials have what authority. Here’s a quick run-down of the different agency personnel commonly associated with a government contract.
  Tue, 23 Oct 2007 01:32:00 +0200
If you’ve read my post on broadening your market vs. deepening your market, you’re familiar with some of the pros and cons that come with expanding your client base or exploring new products and territories. Growing your business usually involves some risk, and it can be difficult to know where and how to expand. An important step in safely growing your business is to conduct thorough, regular market research. This research will also contribute to your overall broadening vs. deepening decision.
  Thu, 11 Oct 2007 00:29:29 +0200
I often recommend that my products and services staff complete the Government Contractor Certificate program as an overview of the procurement process. If you’re just getting started as a government contractor, getting your GCC certificate will give you a world of insight into the laws, policies and best practices of public sector contracting.
  Sat, 06 Oct 2007 01:46:02 +0200
Just like an increasing number of private sector companies, many government agencies have e-commerce sites. For those government agencies that haven’t set up an e-commerce site, there is still a way to conduct online procurement: Electronic Data Interchange, or EDI.
  Wed, 03 Oct 2007 21:42:43 +0200
Effective proposal writing is rarely a one-person task. Your proposal writing team may include writers and researchers from different departments, all with their own areas of expertise. No matter how many people make up your proposal writing team, your government RFP response, in its finished state, will be one document and should be a smooth and consistent piece of work. Here are some tips for effective proposal writing on a team level:
  Wed, 26 Sep 2007 20:34:56 +0200
Building brand awareness is an important part of any marketing or PR strategy. It can be frustrating to do, since unlike a more direct lead-generation campaign, it’s difficult to measure return on investment. The real value of brand awareness comes from differentiating your business from the herd. Your RFP response will carry more weight if readers are already familiar with what you have to offer. In the end, your efforts to build brand awareness will help your marketing efforts in both the public and private sectors.
I’ve written before about procurement conferences and the benefits of attending them. Not only do conferences offer an opportunity to hear leading government contractors and contracting authorities give their expert advice, they are also a great way to network with other government contractors.
  Wed, 19 Sep 2007 21:13:41 +0200
To ensure that the contract adheres to federal procedures, a government agency may require certain clauses of the prime contract to apply to the subcontractor, too. In these cases, some parts of the subcontractor agreement may be taken from the original contract. This is known as a subcontract flow-down clause.
  Sat, 15 Sep 2007 02:02:45 +0200
Contracting can get very competitive, and it’s easy to fall in the habit of viewing all contractors in your field as the competition. When it comes to federal or nationwide contracts, this can be especially true: competitors for large-scale contracts such as these could be coming from anywhere in the country, and while it’s easy to identify the big players in a particular arena, there are still a lot of dark-horse competitors to contend with. One of the many advantages of local contracting is that the pool of competitors is often much smaller. This doesn’t always mean the competition is less fierce, though! Once you’ve gone through the RFP process a few times, chances are that you’ll know which contractors are consistently vying for the same contracts that you are. Protecting your market share can mean a lot of secrecy around bidding strategy and business plan. In all this competition, contractors sometimes lose sight of the fact that when they’re not striving for the same projects, other contractors are a gold mine of contractor information.
I recently came across a survey that uncovered some interesting data I’d like to share with you. The survey polled architecture and engineering professionals on their use of online lead sources such as FedBizOpps and Onvia. 74.1% of survey participants said that they regularly went to FedBizOpps to look for government business intelligence and sales opportunities. As FedBizOpps is a free site and directly affiliated with the federal government, most government contractors check the site as part of their contracting research efforts. However, a common complaint against FedBizOpps is that the leads are usually not published in enough time for contractors to realistically compete for the contract, and contracts below $25,000 or that are at the state or local level are not published on the site. For these reasons, many are turning to government business intelligence companies such as Onvia for additional government sales information. In fact, 51.9% of those surveyed said they use Onvia as a source for government opportunities.
In earlier posts I’ve talked about the fact that once you find federal contracts, a big part of selling to the government is knowing how to speak contracting officials’ language. Having firm knowledge of the ins and outs of your products and services will go a long way, but it’s equally important to be able to communicate them quickly and clearly to government agencies. I’ve already discussed CAGE Codes and NAICS codes in earlier posts, so today I’ll go over the Federal Supply Classification.
  Sat, 01 Sep 2007 01:52:07 +0200
The National Institute of Governmental Purchasing (NIGP) has compiled a list of 10 problems that tend to arise during contract administration. Having a contract plan for these common contingencies falls under the “better safe than sorry” category – but that’s what Government Contracting Best Practices are all about.
How are you handling marketing in the private sector? If you’ve been focusing your efforts on marketing of late, you’ve probably come up with some dynamite sales collateral – brochures, fact sheets, white papers – showing off your company’s value proposition. These tools can be used to market to government buyers as well; the hard work you’ve put into developing them can be used toward winning more government contracts as well as private ones. Before you toss your existing brochures into an envelope and send it off to your list of government contacts, take a moment to consider some changes.
  Fri, 24 Aug 2007 22:07:57 +0200
If you’ve been awarded a long-term contract, chances are that sooner or later the contract term will expire and the contract will be up for renewal. While government agencies do tend to stick with an incumbent contractor if no serious problems have come up, having a contract come up for re-bid is no time to get complacent. Managing a government contract well from the very beginning is the best way to make sure it doesn’t go to a competitor the next time around. Here are some tips for managing government contracts to make your company a renewal-worthy candidate:
On August 17th, the Small Business Administration announced the release of its new Small Business Procurement Scorecard. The scorecard rates agencies’ progress in providing small business opportunities and is part of a larger movement in new procurement regulations toward accurately tracking small business contract data.

Using Business Intelligence to Find your Ideal Contract

Many subcontractors get the majority of their work from previously established relationships with prime contractors. Prime contractors usually have a network of subcontractors who provide products and services that the prime needs to subcontract out on a regular basis. Maintaining these professional relationships is crucial to a subcontractor’s business, so when it comes time to drive new business, subcontractors often look for new primes to align themselves with. However, there’s no need to wait for prime contractors to contact you about the contract of your dreams.
  Wed, 15 Aug 2007 01:46:20 +0200
Most government contracts will include a quality control inspection and acceptance clause. Basically, a government agency has the right to inspect the goods and/or services being delivered to them prior to the contract completion. A quality control inspection clause protects the agency by allowing time to spot and correct defects or flaws before completion; it also protects the contractor, as inspection standards are laid out in the contract and cannot be altered to a higher standard after the fact. If you’ve got your quality assurance procedures lined up, quality testing shouldn’t worry you.
  Sat, 11 Aug 2007 01:10:28 +0200
Let’s say you’re a government contractor with a few awarded government contracts under your belt. You’ve taken the time to build relationships with key decision-makers at government agencies, you’ve honed your RFP and proposal writing skills, and you’re confident that you can be the lowest bidder for the next RFP that comes out for your services. This doesn’t mean it’s time to rest on your laurels. The government marketplace is extremely competitive, and in addition to continuing to seek new contracting opportunities, you should ask yourself: are you getting the most out of your existing government contract opportunities?
  Wed, 08 Aug 2007 22:08:57 +0200
As a federal contractor, it’s important to know the laws that apply to you and your project. Not only could breaking these laws get you in serious trouble, demonstrating that you’re unfamiliar with federal contracting law will be a warning flag to any government agency you’re working with, and may keep you from winning federal contracts with that agency in the future.
I recently reviewed an article by Richard White, posted on fedmarket.com. He talks about how the State of California published the following list of proposal writing examples of statements that caused the state to reject the proposals. Here is the list of the statements you should exclude in your next proposal, along with mistakes you should avoid:
If the competition happened to slip past you and they won a contract you were pursuing, a contract termination rebid is possible if the winning contractor defaults and fails to perform the terms of the contract. A default termination is what usually results if the contractor fails to perform in the interest of the government.
One thing to keep in mind if you’re thinking about working with the government or you have a contract already is that the government has the power since it’s a sovereign entity. That means that the government can decide to change how many items are shipped or how they are packed – your contract can even be terminated. If you are facing a contract termination, here are a few things you should know:
  Thu, 26 Jul 2007 21:07:53 +0200
In order to be competitive when bidding on a subcontract, pricing is a major factor that will come into play. Nevertheless, be sure not to sell yourself short and make sure you have all the essential subcontract pricing considerations under your belt. Here are some requirements, costs and other subcontract pricing factors you should take into account before you sign a contract.
Inventory control involves keeping a good balance - you’ll need to get rid of the items that are obsolete or unwanted, and keep your in-demand items in stock. There are plenty of inventory management methods to make sure that you meet your clients’ needs, especially if you’re a small business.
  Tue, 17 Jul 2007 22:31:51 +0200
Many long-term DoD contracts specify surge quantities in order to help cover emergency situations. Surge requirements are excess quantities required (in addition to the basic order) that need to be readily delivered. Typically, a surge requirement is only utilized at times of war or when there is an unforeseen surge in demand. Note that if there is a surge requirement, you are also required to supply the normal quantities specified in your contract.

Government Publications you Should Know About

There are many government publications available to help your company find federal contracts and do business with the US government. Many of the government publications I am about to suggest can be ordered for a fee from the Government Printing Office. To avoid a fee, you can go to the government websites and read or print the publications.
When it comes to writing a RFP response, some clients have expressed that they don’t wish to share detailed proprietary information within their proposals. However, keep in mind that the agencies are looking to find the best solution to their problem – and providing the agency with proprietary information in the RFP response could give them the specific details they need to award you the contract instead of the competition.
A client recently brought up a good point regarding agency communication rules and agency communication restrictions – such as cone of silence restrictions. Considering how important it is to network with agencies to generate interest in your services, you should know about the communication rules and parameters set by agencies (if any) and how uncover the best way to communicate with them.
Tracking the development of a lead once it’s passed on to a sales representative or sales team can be a very difficult lead management task. Most businesses are so preoccupied with day-to-day business activities that accurately forecasting revenue becomes too much work. However, if you’re strategically planning business, you’ll need to be able to track each sales lead and know if it’s going to turn into a sale, along with your sales conversion rate. Unless the lead is pursued effectively and you’re able to track its progress, it’s likely that you’re not maximizing your revenue-generating efforts.
Finding the right prime to work with on a government project is a top priority if you’re a subcontractor. To find subcontract work with primes, you’ll need to know which primes currently hold government contracts and who their contact person is. Doing thorough research on your own will take up a lot of time – so how can you easily locate qualified primes and their contact details?
  Fri, 29 Jun 2007 01:32:24 +0200
When responding to RFP, have you ever wondered how strict the contract requirements are? A recent case in Lucas County, Ohio, proves that even if you’re awarded a contract, it can be taken away if you didn’t fully meet the original specification requirements.
  Mon, 25 Jun 2007 20:53:54 +0200
Checking up on your industry news should be a regular part of your week. You’re probably already receiving news on a regular basis from publications that focus on your industry, but are you staying on top of general procurement articles? If you think that general procurement news is not as relevant to you because the topics are too broad, you could be missing some valuable insight that can apply to any type of business – such as how agencies come to decide on particular vendors, how vendors approach the agency, and more. I’ll introduce you to a couple of different ways that you can effortlessly stay on top of procurement news.
Besides addressing all of the requirements that are described in the RFP or bid, the biggest tackle you’re going to have to figure out and write into your response is what motivates the agency’s government contract awards. In past articles, I’ve talked about the importance of building value. To add onto this idea, I’ll address some unexpected reasons why an agency might not go for the lowest bid by using an example:
  Wed, 13 Jun 2007 00:35:34 +0200
When trying to find federal contracts, you’ll need to build your knowledge of the government market so you can identify market changes, analyze annual federal spending and identify trends so you can pinpoint where you need to drive your sales efforts. The Federal Procurement Data System is one online stop where you can uncover federal government contract spending information.
Growing your business in a new direction usually means that you need to either expand your current client base or explore new products and territories. It can be a tough decision if you’re trying to decide on the best approach …should you try to expand your products / services into larger geographic markets or should you try to sell more to your current clients and work on referrals? There are pros and cons, either way you choose to market. Here’s what you need to know before you take action and set a new marketing plan into action.
I wrote a government marketing article last year about the many things that influence a government contract award – and how pricing isn’t everything. I’d like to bring this point up again because pricing tends to be a factor that many businesses focus on too much when time could be spent more wisely on building a case for company value.
  Fri, 01 Jun 2007 01:29:32 +0200
In many cases, a prime contractor may ask your subcontracting company to fulfill the quality requirements of the contract. The reason behind this is the prime contractor is responsible for the quality of the goods supplied by the subcontractors or suppliers. It’s in the best interest of the prime contractor to assure that the subcontractors can meet the quality requirements needed to fulfill the needs of the prime contract.
Many small businesses worry that, compared to government contracts for small business, the percentage of government contracts going to larger businesses is too high – and that the Small Business Administration isn’t doing much to prevent this from happening, or preserve government contracts for small business. The SBA recently released an article that clarifies a number of myths about small business government contracts. Here is a recap of some important points from the SBA article:
You’ve probably heard of vendor lists – it’s a great way to get toward the front of the pack when it comes to upcoming government agency needs. But, there’s another form of ‘vendor list’ that you can register for that will help you get your name in front of the agency: government qualification lists such as Qualified Bidders Lists, Qualified Manufacturers Lists, and Qualified Products Lists.
As I mentioned before, the hardest part about approaching the government market is uncovering government business intelligence. In particular, you’ll find that you won’t be able to locate winning proposals from vendors. If you want to write your way to more contract awards, getting a hold of vendors’ winning proposals can work as your roadmap. A Freedom of Information Act (FOIA) request is one way that you can access winning proposal information.
Most often referred to as the “FAR”, the Federal Acquisition Regulation is a resource guide for government rules and procedures. The FAR is like the Bible for federal government contracting rules, processes, plus contract forms and clauses. If you’re pursuing federal government contracts or looking into it, you should have a basic understanding of the Federal Acquisition Regulation.
In a previous posting on CAGE Codes and NAICS Codes, I went over the importance of knowing the government’s classification system. You’ll need to know and speak the government’s language if you’re planning on pursuing any of the contracts that are solicited. Knowing which NAICS codes and CAGE codes you fall under will help you identify the current needs for your services; however, it’s also important to know how to use NAICS codes and CAGE codes to promote your products and services.
  Wed, 09 May 2007 00:32:18 +0200
As a contract manager, you’re going to have to know the different types of contracts and how they are evaluated. I had someone ask about marketbaskets so I’ll go over them so you gain a better understanding of how to manage the contract.
  Mon, 07 May 2007 17:54:42 +0200
If your company works within the construction industry or you work with construction companies, it’s important to know their language and the processes involved with building different structures. By mastering building and construction terms, you’ll demonstrate your understanding of the industry and that you’re committed to knowing your business or your partners’ business.
Considering the power of larger companies competing in the government market, you may feel like you’re the underdog if you’re a small business, such as a veteran-owned small business. Once you’re qualified as a “Veteran-owned business,” you can even qualify for certain government contracts that are set aside only for businesses like yours so you can be competitive!
  Thu, 26 Apr 2007 00:26:07 +0200
Often referred to as “micro purchasing” (sums under $2,500), credit card purchasing presents another sales opportunity in addition to federal government contracts. Did you know that 70% of government procurement transactions are micro purchases through credit cards?
One of the quickest and easiest ways to bring awareness to your product or service is via email marketing. But thanks to CAN-SPAM and bad lists, getting a hold of the right email marketing lists of procurement decision makers and influencers can be tough. Email marketing lists are getting more precise and more customized within the last few years – which helps you reach more of the right people that will influence your sales cycle. There are two ways to go about targeted email marketing campaigns – you can either rent a list or buy one. I’ll give you a run-down on both options so you can decide on the best option for your company. Plus, I’ll go over additional email marketing tips.
  Wed, 18 Apr 2007 18:56:40 +0200
Knowing the laws surrounding government contracts is essential if you’re managing government contracts or working on government contracts. Before you make the wrong move, make sure you know all the key Acts that are involved with government contracting. Albo & Oblon, L.L.P. provides some helpful information on their website regarding government contract law, including the following summaries of major regulations that any government contractor or contract manager should know:
As a subcontractor, you’ve probably noticed that it’s hard to locate subcontractor contracts and other subcontracting information. While there are thousands of construction, architecture and engineering contracts announced, notifications of subcontractor contracts, on the other hand, are harder to find. In addition to networking and calling primes, the ideal way to find out about subcontracting opportunities is through direct notification and research. It’s important for you to know where to uncover subcontracting information so your pipeline has plenty of leads for the year!
  Wed, 11 Apr 2007 19:49:42 +0200

Government Contract Forecast: Planning, Marketing and Selling Ahead of Time

Planning your sales pipeline is essential for any business in order to plan effective government sales and marketing strategies. Do you know how to find out about government procurement and government contract forecasts for the year? Thanks to the government’s business development reform act of 1988, you can forecast part of your sales pipeline to see what projects may be up and coming. Government sales forecasting for potential opportunities is essential if you plan to grow your business’ annual revenue.
  Sat, 07 Apr 2007 00:21:46 +0200
Having a constant flow of sales leads will play a key part in planning and executing your sales revenue goals. It’s pretty easy to gain visibility into new RFPs and bids, but it’s harder to track renewing contracts, also known as term contracts. Although hard to uncover, term contract sales leads are a revenue opportunity not to be missed.
  Wed, 04 Apr 2007 01:33:42 +0200

The Go or No-Go Decision

When pursuing government projects, you need to weigh your options closely before you begin writing a response for an RFP. If part of the contract doesn’t match your company’s best interests or you can’t deliver on part of the contract, the smartest move may be to concentrate your resources elsewhere. So what types of questions should you ask yourself when deciding on writing a response for an RFP?
Probably the most frustrating part of pursuing federal government contracts is trying to track down specific government information—especially details on past contracts. For example, what do you do when you want to know about the end dates of specific federal government contract jobs that you didn’t capture? How do you find out competitive pricing for term contracts? How are you tracking specific information on an expiring federal government contract that will be up for renewal?
When it comes to marketing leads, the ones that are easiest to identify are bids, RFPs and quotes. It’s becoming easier to spot these opportunities thanks to email notifications and sales leads lists from a government business intelligence company. Most likely, your competitors will see these leads when they are published since they are “direct leads”. So what other forms of marketing leads can you identify in advance of a solicitation process? And how can you increase leads and sales by taking advantage of these new sales opportunities?
What combination of skills and competence is demanded of a contract manager? Simply looking at a resume of work experience will only take you so far. A successful contract manager will develop contract management skills in more than one area, such as administration, contract law, accounting, management, and planning. Specifically, the skills in the following areas are most valuable: technical, conceptual and human relations.
One type of subcontracting opportunity that may be overlooked by subcontractors is term contracts. Scouting out term contract opportunities can be hard since there are no reminders sent out by the purchasing office when the contract is up for renewal. The important thing is to identify your market opportunities by pin-pointing which company holds the current contract so you can identify prime contractors—uncovering this information could be your ticket to winning more subcontracting jobs.
In addition to soliciting bids, quotes and RFPs for goods or services, the government also gives out money in the form of government grants. Usually, government grants are very specific in how the money is to be used. However, there is another form of funding provided by the Department of Defense (DoD) that can help you fund your creative juices if you’re a small technology company. If your company is looking to innovate new technology that can support the Department of Defense (DoD), there are some government research funding and government development funding programs available.
Wouldn’t it be nice if you could find government business intelligence on a handful of government personnel whose job it was to help you secure government contracts? If you need help nailing down the procurement process specifics of certain projects, you’ll be happy to know that there are other resources for you. A multitude of government personnel are available to help you do business with the government. Here are some key procurement contacts that can help you:
  Fri, 09 Mar 2007 23:02:48 +0100
When it comes to the government proposal writing process, you have to be very detailed. In fact, if you aren’t as detailed or thorough on some sections or the government RFP, it could cost you a contract. This is why learning how to write a government proposal and nailing down your government proposal writing process is critical. If you want to either fine-tune your proposal or need guidance on how to proceed with the government proposal writing process, seeking government RFP writing help by attending a proposal writing workshop can help you gain knowledge on the government parameters surrounding proposals and learn how to write more concise proposals.

How to Prepare for the 2007 Tornado Season

In the U.S, the general shift to tornado season is from late winter through mid-summer. The 2007 tornado season is already here, and the federal government will need to prepare for heavy storms and tornados by releasing more federal disaster prevention and disaster recovery contracts and RFPs for additional services to help prepare for the tornado season. From architecture, engineering and construction projects to debris removal, the 2007 tornado season will offer your business plenty of opportunities to pursue federal government contracts.
  Sat, 03 Mar 2007 00:03:12 +0100
One of my associates is an email programs manager and there’s one HUGE benefit to email marketing: your cost per lead is very inexpensive. And, with email marketing, you can get a lot of traction! I’ve picked his brain a bit about some quick government marketing tips that anyone could use to target government agencies via email to boost sales leads.
  Thu, 01 Mar 2007 21:13:33 +0100
Many government contracts are fixed-price; the price that the contractor quotes in the proposal is final and should include all expenses. In some cases, however, it’s difficult or impossible to know exactly how much certain items or services are going to cost. In these situations, the government will usually use a cost-reimbursement format for the contract. Cost-reimbursement contracts are desirable because in most cases the government assumes the cost risk.
One of the toughest parts of seeking new business opportunities is uncovering the ones that aren’t as obvious. Sure, it’s easy to spot a new RFP coming out, but knowing where to find information on subcontracting term contracts, for example, is another story. If you’re planning on staying ahead of the competition and planning your sales pipeline in advance, digging up these term subcontracting opportunities will be an important part of your company’s business development plan.
Due to the aftermaths of hurricanes, such as Katrina and Wilma, disaster recovery contracts and government disaster spending have been in the spotlight. Many small businesses want to get involved but feel frustrated with the idea of competing for federal government disaster recovery contracts and would rather help with smaller, local disaster recovery contracts and disaster relief contracts instead. The SBA announced this February that now there’s a way you can help agencies at the state and local levels –in the near future, state and local agencies will be able to order products and services from federal contracts to support recent recovery from large-scale disasters and acts of terrorism.
  Wed, 14 Feb 2007 20:12:38 +0100

Advantages of Analyzing Government Purchasing Trends

Learning about a government agency’s trends and analyzing their purchasing habits will pay dividends. Because the government market is so competitive, you will need to know as much about your customer as possible. The only way to analyze a government agency’s purchasing trends is to be able to review all announced bids, RFPs, quotes, awards, amendments, etc. that the agency has released. This government business intelligence gives you a foundation for your trending analysis so you can gain a better understanding of the market and plan your government sales more effectively.
One common misunderstanding government contractors have with IFB proposals is underestimating the process involved with submitting them. Although you don’t have to put together all of your own documents for your IFB submission, you will still need to approach it carefully, much like an RFP.
When employing contractors or other individuals to work with your company on federal government contracts, you’ll need to be familiar with Federal Contract Compliance programs. The U.S. Department of Labor supports the Office of Federal Contract Compliance Programs (OFCCP), which is responsible for ensuring that if an employer is working on federal government contracts, they are in compliance with the government regulations and laws that require nondiscrimination and affirmative action.
Pairing a marketing plan with your sales plan is a recipe for success – especially if that marketing plan involves building more face-to-face exposure to procurement officials from the public and private sector or joining an online procurement network. Business Matchmaking is supported in part by the Small Business Administration and can help your business get private and public sector business exposure more quickly than if you tried to get appointments with potential clients on your own.
  Wed, 31 Jan 2007 20:05:13 +0100
A client recently wrote in, asking to clarify what a blanket purchase agreement is, and how to prepare a blanket purchase order. I’ll backtrack a bit by going over what a blanket purchase agreement (BPA) is, how it differs from other agreements and how to be considered for a Blanket Purchase Agreement (BPA) program. I’ll wrap things up by addressing blanket purchase orders.
There are many benefits associated with doing business with the government (yes, even beyond the billion-dollar government budget allocated toward acquiring goods). In particular, there is a strong list of subcontracting benefits.
For a government contractor, whether you're trying to stay on top of industry issues, gain access to contract documents or review safety and risk management tips associated with your contracting work, there is a wealth of contracting websites and other resources available to you online.
  Thu, 18 Jan 2007 21:07:05 +0100

Uncover More Government Sales Leads

Project specs and other bid documents are a goldmine for many of the clients I speak with. They express frustration when trying to find the right government contracts, since the legal ads are not very descriptive. The key to finding out if your service or product is a part of a government contract is to go through the government bid documents, which describe the project’s scope of work. Locating your product or service within these bid documents is very time-consuming and tedious—and getting a hold of the agency documents is difficult since they are only available on agency websites for a limited time.
A client recently brought up some points about responding to government RFPs and the purpose of routine RFPs. He asked, “Why do agencies put out an RFP for products and services if they have been working with a competitor of mine for years?” Here are a few reasons why an agency may release an RFP:
When searching for federal business opportunities, you’ve probably run across FedBizOpps, a resource for federal government contracts over $25,000. Accessing their website allows you to search for federal government contracts from government agencies. Federal government agencies can even post their opportunities directly to the website.
When working with government agencies, you will still need a calculated method of marketing just like when selling to the private sector. If you want to grow your government business, it isn’t enough to wait for the perfect project to come out and then plan on a contract renewal. The government market is competitive, and you’ll need to be able to pinpoint how effectively you’re communicating your marketing campaigns.
  Sat, 06 Jan 2007 02:00:02 +0100
Organizing government leads probably isn’t at the top of your list of to-dos at work, especially considering that there are over 3,500 new government business opportunities published every day across the U.S. But, even if you go after a small number of government contract jobs, you will still need to keep track of those government contracts and keep tracking new leads for government contract jobs. When calling up agencies, prospecting, and reviewing award data, you need to be able to pull up the facts quickly and save time. With deadlines around the corner and sales to be closed, businesses can’t afford to spend additional time digging up government contracts and paperwork. Here are some questions to help you figure out how you are currently organizing your government leads and contracts and if there’s room for improvement:
Before you consider subcontracting for a long-term contract, you should know all the rules of engagement specific to long-term contracts and work out the details with your prime contractor. Here are some elements that are specific to long-term contracts:
If you are just starting to look into government contract work, you may need local contract funding or government contract loan options to help you work the contract. Before you start looking for financial institutions to help you fund your end of the job, here are some tips to help you make the best funding decisions for your contracting company.

What You Need to Know about ORCA

As of January 2005, the FAR (Federal Acquisition Regulation) requires that as part of the proposal submission process for federal government contracts, you need to submit an online representations and certifications application—also known as ORCA. Instead of submitting a lot of paperwork, ORCA is the e-initiative that replaces the old paper-based submission process for federal government contracts.
If you started out researching government contracts for your business before you started working with a government business intelligence company, you know how much time and effort is required in order to find the right government contracts. When you’re trying to get ahead of the government market competition, you will need to think proactively. This means trying to identify and find out about government contracts ahead of time. It also means knowing who you can talk to about upcoming government contracts and sales leads.
  Tue, 19 Dec 2006 23:27:54 +0100
Preparing to write a government proposal can be very time-consuming and intimidating if you don’t know what’s involved or how to best prepare for the government proposal writing process. Before you even dig out a pencil or start typing out a draft of your government proposal, it’s important to get organized in order to get things done right in the first place. Consider the following to help you prepare for your government proposal writing process:
While searching for government RFPs or RFQs, have you run across brand name specifications? If you have, it may leave your company feeling helpless to compete. However, don’t discount the project completely. There are a few things you can do to try to work around the brand name specification and possibly win the contract, even if you don’t offer or sell the specified service or product.
One thing you can count on as a small business is payment from the government after you complete your end of the contracting job. Thanks to the Prompt Payment Act, the government is required to pay contracted small businesses within 30 days after a government invoice is received. However, there is a catch. In order to receive your payment within the 30-day period, you need to make sure that your government invoice is deemed “proper”.
The federal government has increased the number of opportunities for government subcontractors by bundling contracts: releasing large contracts with multiple different requirements and activities, instead of numerous smaller contracts. Federal agencies favor contract bundling options because they increase purchasing power and reduce overhead costs. Prime contracting opportunities are decreased, however, and many smaller businesses feel like their federal opportunities have been lost, thanks to contract bundling.

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