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How To Get A Government Contract (Part 01)

 

Does your business qualify for a government contract? Many business owners avoid government contracting for a number of reasons including, but not limited to, excessive documentation, stringent financial reviews and the general complexities associated with federal and state contracts. As a result, many business owners (about 80% of the nations small businesses) do not participate in this trillion dollar industry.

Anybody who has ever attempted to investigate government contracting at the federal level is keenly aware of the myriad details and bureaucratic nightmare and the volume of information that must be absorbed before an individual can even begin to make sense of how the system works. Frankly, it is bizarre. The people who work for the governments (local, state and federal) simply have too much time on their hands to develop rules, regulations, policies and procedures and a document for everything. Who has the time or inclination to muddle through all this complexity to bid on a highly competitive contracting process, which you will probably not win anyway? That’s a good question and here are some answers.

Getting a government contract, while highly competitive, will probably not create a windfall stream of revenue for your business but it will produce a steady stream which you can be assured of timely payment and, this revenue can be directly applied to cover your overhead. This will allow you to achieve economies of scale that will enable you to win more profitable commercial contracts in the private sector. It also adds market credibility with your customers when they know you are substantial enough to service a government contract whether it is a local, state or federal contract.

Most people think of the fed when they think of government contracting. But there are many purchases made by local and state governments, which your small business may be very well qualified to compete. Your local government purchases many things not normally considered: everything from bathroom supplies to car leases, audiovisual equipment and janitorial services. The local government should be your first target for winning a contract less than $25,000.00

And that is the key to success: One thing the various levels of government look for is a track record with commercial customers. They want to know that they are contracting with a business that can indeed deliver the contracted goods and services. And the best way you can gain credibility with the government is to start small and build a track record. How? Sell to townships and small cities or county governments within your state and be successful at servicing your customers well with emphasis on customer service. Their testimonials will carry a lot of weight with each successive small government you bid to contract with. You build this reputation layer by layer from the ground up. You can’t get the big things done until you get the little things done first right? So start small and contact your county to find out how the bidding process works in your area.

If you would like more information on this topic, visit our site and check out the Government Link section for high quality links related to government contracting. Our links are highly qualified targets that will show you where to go within the federal and state governments.

This article is one of a three (3) part mini series of articles related to government contracting and part 2 and 3 should be read for complete understanding of the material.

Thanks For Reading!

Copyright © 2006 James W. Hart, IV All Rights reserved

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