Government Contacts are the Key to More Contract Awards

Posted by Administrator on September 12th, 2007

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 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.

The real take-away from the study was not that A/E contractors are using online lead sources, but rather how they are using them. Most of the firm leaders who were surveyed said that they used lead sources chiefly to track geographical and industry trends to help with their go or no-go bid decision, and that it was pretty rare that they would bid on and win a government contract they found in this manner. A common frustration voiced by the survey participants was that often by the time an opportunity is posted, another firm is already involved with the project to some level and will most likely win the contract award. The A/E leaders agreed that their main source of successful contract bids was through existing relationships with government contacts.

If you’ve been working as a contractor for a while, this should come as no surprise to you. 80% of government purchases are informal purchases, meaning they will be awarded having never been advertised at all. In order to really get a foot in the door for government opportunities, maintaining contacts with government decision makers is vital. This is why a large portion of your government research should be devoted to tracking down and building government contacts in your industry.

Research Tips for Building Government Contacts

Get a hold of contact information for government buyers. Up-to-date, targeted contact information makes it easier to build relationships with the right people.
When you begin your networking calls, make sure you ask a lot of questions about the agency’s goals and preferences; don’t just deliver a sales pitch. Let the contact person know you will be in tune with their needs during contract administration. Use our 7 Tips for Building Government Contacts to strengthen your existing government contracts.
Research city council meeting notes and other development plans to find out about government opportunities before they are announced. Since visibility into this kind of information is fairly low, this is one area where advance notice from a government business intelligence company can really help out. Getting this valuable information without having to spend hours searching for it will give you time to start marketing to people involved with the project; by the time the bid opportunity is announced, your company may already be attached!
Attend trade shows, conferences, and other industry events. Not only will they give you insight into the latest goings-on in your industry, they are also a great place to get some face-to-face time with government contacts. Remember to follow up with every contact you make; professional relationships need maintaining and you never know who will be your inside source for your next government opportunity.