Secure Local Government Contracts for your Small Business

Posted by Irv on June 13th, 2006

Perhaps the toughest obstacle a small business may face when going after local government contracts is understanding both the government procurement process and the ins and outs of selling to local government. Small businesses pass up thousands of dollars a year in local government contracts because they don’t know or fully understand all the components of selling to local government.

Once you gain a solid understanding of marketing and selling to local government agencies, working in the public sector can be quite profitable for your small business. Here are some key steps to help your small business land more local government contracts:

Find Out Exactly what the Local Government Agency is Looking for.

This will give you a good idea of whether there is a need for your services. Keep in mind that not all local government agencies have a need for what your small business is offering.

To tap into a local government agency’s procurement needs, you may want to visit agency websites. A less time-consuming option would be to consider an electronic notification service that will alert you to local government contracts as soon as they are available; this also works as a safety net to ensure that your small business captures all relevant local contracts that are specific to your business.

Aggressively Market your Company when Selling to Local Government.

It’s not enough to know about a local government contract and submit a bid; making your company and its capabilities known to local government buyers and other decision makers is critical when selling to local government. Be sure to contact your local agencies, to ensure your company meets all of their internal bidders list requirements and fill out any important documentation.

Many government agencies also hold procurement conferences and seminars throughout the year. At these conferences, you can find valuable first-hand information on selling to local government and begin networking and developing relationships with important local government contacts.

Explore Small Business Options.

If you think your company is too small or too inexperienced to win local government contracts, consider:

Subcontracting – Opportunities for small businesses will arise as prime contractors come across more pressure to provide larger projects and extended services. Contact your local agencies to get a list of prime contractors. Send the most successful contractors some information about your company, your willingness to work together, and details about your qualifications and competitiveness.
Contracting — Many local government offices, such as parking bureaus and boards of education, regularly do business with smaller local businesses. Also, consider contacting politicians who have an interest in aiding local businesses. They may be more likely to help your company land a local government contract, particularly around election time.

Get Connected to Small Business Resources.

The Small Business Administration (SBA) offers a wealth of information on how your business can get ahead in local government contracting. The Central Contracting Registry(CCR) is another resource worth checking out. It is a central location where companies can submit their business information if they do business with more than one DoD site. The information is added to a vendor database of contractors working with the government.

If you are a woman-owned or minority-owned small business, visit the SBA 8(a) minority-owned and woman-owned business website. If you’re learning the ropes, from local contracting to federal contracting, it’s a comprehensive source for current information on federally certified minority- and women-owned businesses. By obtaining an 8(a) certification, your company will have a more solid disadvantaged business standing. The government aims to award 20 percent of contracts to small businesses, with one quarter designated for women-owned businesses and the other quarter going to small disadvantaged businesses or SDBs. If your company has any of these qualifications, be sure to market those qualities to your local government agencies–let them know that your company fills their set-aside needs.

The General Services Administration (GSA) has an office called The Office of Small Business Utilization(SBU), which is the GSA’s advocate for small, minority and women business owners. The mission of this office is to “promote increased access to GSA’s nationwide procurement opportunities.”

If you need assistance with the technical aspect of the procurement process, procurement technical assistance centers (PTAC) are a great resource for small businesses. These centers provide help to small businesses who seek assistance in bidding, managing and performing on local government contracts and even state and federal contracts.