Land Government Contracts

Government contracts could expand your portfolio, add new streams of revenue and build valuable business contacts in your community. If you’re like many small business owners, however, you find the process of landing them a bit daunting. Follow these first steps on the road to landing government contracts. (Hint: It’s not as complicated as you might think.)

Network, Network, Network
When it comes to electrical work, the government typically buys in two ways, either from general contractors who subcontract work to electricians, or directly from electricians for maintenance and alternation work, says Bob Murphy, area director for government contracting for the U.S. Small Business Administration (SBA).

The first step in approaching either of these avenues is putting your face in front of the right people. If you want to get into government work by subcontracting with a general contractor, research the type of work you’re interested in and find out who in your community typically lands those types of contracts.

If, on the other hand, you want to bid contracts yourself, you need to make contacts in the agencies most likely to buy your services.

Marsha Lindquist, CEO of Cave Creek, Ariz.-based The Management Link Inc., helps businesses prepare proposals for government contracts. She stresses the importance of building relationships before you even consider submitting a proposal. “You can’t just do one presentation and expect to get business,” she says. “You’ve got to repeatedly follow up with them. Just responding to the query is deadly.”

Research Opportunities
Next, you need to research upcoming projects. Both Murphy and Lindquist recommend www.fedbizopps.gov, a site that lists all government contracts totaling more than $25,000.

“Every agency has its own Web site,” Lindquist says, “but then you’ve got to go and search each and every single one of them. In recent years they’ve really centralized it, so the process is easier; you can go to one place and browse products and services and find out what’s out there.”

Michael Balsam, vice president of products and services for Onvia, a Seattle-based company that supplies intelligence to businesses looking to secure government contracts, suggests starting your search locally. “Local government isn’t that daunting if you’ve done your homework,” he says. “Identify the people who buy what you sell and go see them. Register as a qualified vendor with that agency and then marry that piece of the puzzle with keeping tabs on what the local government is buying. Anytime there’s a maintenance contract you need to know about it.”

Once you’ve researched an upcoming project you’d like to bid on, call the project contact. Talk about the requirements so you have a hope of meeting them, Lindquist says. There is often much more to winning a bid than what is listed on the Web site.

Seek Help Writing
Balsam says each agency has its own set of procedures and requirements. Each project will have different expectations attached to it, and there’s no way for you to know what they are without seeking guidance. When it comes to actually writing the proposal, there are a lot of resources available to help you hone your bid. Private consultants like Lindquist offer a range of fee-based services and can tailor their advice to your business.

Murphy also recommends looking into government-funded Procurement Technical Assistance centers. Located at community colleges, each state has several programs. “They’re there to assist small businesses in getting contracts on the federal level,” he says. “You can call and become a client free of charge and a counselor will work with you in putting plans together.” To find assistance in your area, visit www.dla.mil/db/procurem.htm.

Follow-up
“Don’t get discouraged if it doesn’t happen on day one,” Balsam says. “You have to take the time in building your business.”

Even if you don’t land the job, follow up with the agency. Ask them to keep you in mind for future projects, and have the tenacity to follow through with another proposal when it comes time.

“Get a quick debrief with the person who bought someone else’s service,” Balsam says. “Find out why—was it just my price or something else you can fill me in on that it takes to work with you. Post-mortems are an important part of the government contracting business.”