Finalizing a U.S. Government Contract Deal

Posted by Irv on July 10th, 2006

Let’s assume you’ve taken the necessary steps to help prepare your company to be a prime contractor for U.S. government contracts, such as:

Investigate the U.S. government contracts you want to pursue
Find the right U.S. government contracts for your company
Research prime contractors
Scope out the competition
Anticipate partnering opportunities
Consider making operational changes to your company

The last thing you need to do is close a deal. To help you finalize the signing of a U.S. government contract, we advise the following:

Bid selectively and sharply
Focus on providing the best overall value
Improve your odds as a subcontractor
Showcase your company’s best qualities

Bid Selectively and Sharply on U.S. Government Contracts

If you aren’t winning most of the U.S. government contracts you bid on, ask yourself: are you going after the right contracts? Think about the quality of your product, your level of service and your performance on other U.S. government contracts. Is your product of high quality or a well-known service? Is your service dependable? Can you deliver on a tight schedule?

Next, contemplate whether your service capabilities are a match for the prime contractor’s needs for the U.S. government contract in question and do some research. Unless your company is a clear match, consider moving on to the next opportunity.

Provide the “Best Value”

What is considered the “best value” varies from contractor to contractor, depending on their needs and requirements for the particular U.S. government contract. Although pricing is considered, the best value isn’t necessarily the lowest price. The best way to deliver value to the prime contractor is to focus on what they will need to fulfill the U.S. government contract. For example, if the prime contractor is looking to improve their operations efficiencies, they may favor a competent company that can assist in improving operations efficiencies over a company that is merely capable. Highlight any additional skills, services or products your company can offer to add value to a contract.

Improve your Odds as a Subcontractor

Although prime contractors are looking for reasonably-priced, quality services, they also need subcontractors who can help ensure that the U.S. government contract runs smoothly.

To increase your chances of subcontracting with a prime on U.S. government contracts, think about how you can show that you are willing and able to help satisfy their specific needs. Show that you’re aware of what may be necessary to complete the U.S. government contract in a timely, accurate manner. As a subcontractor, timing and communication are crucial, so let them know that you are keeping this in mind.

Display your Company’s Best Qualities

The following tips will help you narrow down your list of prime contractors, and help your company make a good first impression.

Identify your company’s strengths and weaknesses. Beyond company services, think about what you do best - your competitive edge.
Research your target prime contractors and select the ones that fit your company best. Consider if you can deliver all products, components or services that the prime contractor specifies for their U.S. government contract needs.
Gather as much information about the target prime contractor as possible, including research from newspapers, magazines, and the Wall Street Journal, so you are well prepared and appear professional at your first meeting.
Kick off your marketing campaigns by calling your target prime contractors’ representatives or their small business liaisons. Even direct mail can be a backup way to attract their attention.
When you are contacting target “primes” for the first time, ask questions that will help you decide if working with that particular contractor will be the right opportunity. Think about the necessary paperwork and documents that may be required - will you need to fill out and submit an approved vendor list form? Also, inquire about the size of a typical order, special requirements or needs, and what the prime contractor is looking for in a subcontractor.
Scope the competition and their relationship with certain prime contractors. If you’re on the phone with a prime contractor, see if you can figure out the competition’s scope of work and any other U.S. government contract work they’ve gotten.
Once you’ve contacted all your target prime contractors, narrow down your list to the contractors that fit your services best. Document the prime contractors that seem most promising.
Start perfecting a simple presentation that highlights your company’s strengths and your competitive advantage for the U.S. government contract at hand.
After you complete a presentation, meet with the prime contractor’s representative or small business liaison. It doesn’t hurt to mention your enthusiasm and your company’s strengths again.
Within 7-10 days, contact the prime contractor again. Even if the presentation ended without a clear understanding of where the U.S. government contract stands, now is the time to find out.
Network continually. Establish rapport with people from different departments in the prime contractor’s company, other than vendors. You should even consider networking with the competition; they could augment your company’s offerings for future U.S. government contracts.
If nothing works, move on to other U.S. government contract opportunities.