Get Information…Win U.S. Government Contracts

Posted by Irv on March 2nd, 2006

Understandably, many contractors can be frustrated by the Request for Proposal (RFP) process to bid on U.S. government contracts. It’s not surprising since government RFPs are often complicated and difficult to read. Here’s an example: “Section 1.2.3.4: The proponent must demonstrate how … with reference to the issues provided in addendum C … in detail in section 1.3 and 1.4 in this document, provided that 75% of the design of your solution has already been complete prior to … Any omissions to this response will result in non-compliance.” After reading language like this in government contracts, some qualified and successful contractors will simply abandon any thought of even trying to find government contracts, let alone aggressively pursuing or bidding on them.

Finding U.S. Government Contracts: A Targeted Approach

The traditional RFP process represents a challenging approach to new business development. By its nature, it is a complicated method that makes winning government contracts very time-consuming. In fact, companies that bid on government contracts, RFPs and other bid opportunities are often going about it in a costly and inefficient way. Much of that effort can be avoided by engaging in a targeted approach for finding government contracts that considers:

Owner/agency intelligence
Competitive intelligence
A well-thought out government bid strategy.

The result is more work that fits the company’s expertise and growth plans. Knowledge of the owner/agency, combined with knowledge of the competition can produce the best strategy for bidding on government contracts. It’s not rocket science. This approach simply brings in more quality projects, using less labor and other company resources. In the long term, the cost of acquiring new business goes down, and profit is likely to increase.

Government Contracts: Owner/Agency Intelligence

The first step in the business development process after finding government projects to consider is to gather background on the owner/agency itself. Before contractors pursue a bid or RFP, they need to find out as much as possible about the owner of the government contract. To assist with the finding and gathering of owner/agency intelligence, ask and answer the following questions:

Do you know anyone at the government agency?
What types of projects can you find that the agency published in the past?
How does the government agency view your company?
Who is responsible, at the agency, for approving procurement projects?
Do you know of any major issues concerning the owner/agency, such as problems, trends, needs, sensitivities, internal pressures, external pressures, preferences, etc.?
What procedures does the government agency follow? What are their ordering/acquisition practices? Are they innovative or conservative?
What is the ranking of the evaluation considerations in order of importance to the owner/agency? (Do they favor value or price? Do they have any preferences?)
Who would likely participate in the evaluation and decision-making?
What government agency-related documents do you have access to, such as organization charts, contact lists, past procurement history/relationships, policy guidelines, procedures, budgets, forecasts, plans, etc.?
What is the scope of the work? What is the size of the government contract? For example, what is included/excluded; how many locations need to be supplied; requirements for equipment, technology, resources, staffing and other requirements?
What is the owner/agency’s budget for this government contract? Is funding available? Learn more about How to Find Funding for your Contracting Business.
When is the government RFP going to be released? Is there a government bidder’s conference or site visit? What is the schedule for award of the government contract? Project start date? Is there any history available indicating pattern of RFP solicitation?
What are the terms of the government contract?

The answers to these questions provide insight into how to approach government business, or contractors may find that specific U.S. government contracts with this agency are simply not worth pursuing.

Researching Government Contracts: Competitive Intelligence

If the contractor decides to continue on, the second area of essential information is background on the government agency’s previous government contractors. Find out what the common denominator is. Determine how your company’s strengths align with those of the competition. And most importantly, know what the competition is offering in their bid. Specifically consider the following:

Who is currently doing work for the owner/agency and who has done work in the past?
The strengths and weaknesses of potential competitors
How the government agency views your potential competitors
What contractual items will be attractive to the buyer
Access to insight and/or information into the competition’s pricing
The feasibility and impact of partnering with other companies on a specific government project.

Through this government contract information gathering process, you will have a good profile of the type of contractor that is likely to obtain this work. But it won’t show whether your company has the wherewithal to obtain this government contract. That’s the next step.

Winning U.S. Government Contracts: Bid Strategies

Knowing your company’s strengths and having a portfolio of reference are key components in the development of a government bid strategy. The business must be right for your company, based on your background and expertise.

If there is a substantial portion of the U.S. government contract that depends on other skills (such as those of a landscape architecture firm) partnering or subcontracting should also be part of the bid strategy for the government contract. Questions to consider include:

What is your company’s technical experience performing the same or similar work?
How do the company’s strengths align with owner/agency evaluation criteria? How will a government agency benefit from your strengths?
How will a government agency benefit from any teaming arrangements ? Will teaming improve your evaluation ranking?
What are the aspects of your company’s offering that are unique and differentiate you from the rest of the competition?
What are the chances of not being able to deliver within budget? What are the chances of the work not being profitable?
What can your company do to influence the government RFP or solicitation? How can you get in early to influence the scope of work?
How will you demonstrate that your offering is the best value to the owner/agency?

By following this information gathering process when pursuing government contracts, you will have more key intelligence to make a more strategic response to government bids and RFPs. An easy way to make this long information gathering process quick and easy is to access Onvia’s government business intelligence database. If you’d like me to walk you through a personal demo, send me an email to AskIrv@onvia.com.

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