How to Get Government Contracts Worth Millions Easily
If you have been a business owner for some time now, then you probably know by now that the minutest contract from the government of your country can translate to massive profit which by extension means wealth. However, the truth is that getting these contracts can pose a very great challenge, as some folks think you must have some sort of god father in the system to make headway.
Truth is that there are a myriad of bid opportunities available in all level of government. On the other hand, you might also want to agree with me that some folks just do not find it hard being favored by the governments. They clinch these contracts with ease and smile to the bank always. This article proposes to help you scale through this seemingly Herculean task.
For that reason, if you have always had the dream of dealing with the government of your country and just possibly can’t think up ways via which you can achieve this, then relief is here as this read would help you scale through.
How to Get Government Contracts Worth Millions Easily
1. Do Some Research
You just cannot fold your hands and expect that contracts would come pouring in just like that. You have got to do what must be done. So, what is that which must be done? You can take out time to search for various government contracts that are listed in various newspapers in your country. You can look through and begin to work at the ones that catch your fancy. There are also listings placed in some government department websites.
2. Decide On What to Sell
Wanting to be a client to the government of your country means that you must have carved a niche for yourself in the area of your business. This means that you must have decided what it is you want to sell to the government. This product has to be something the government would really want to catch in on. For you to really be sure of what they may be interested in procuring, you may consider making inquiries with the procurement government bodies in your country. This way you would work with facts and not hypothesis.
3. Decide Whether to Go into Partnership
This step concerns small and new business people. Here is what this means; it simply means that you have to consider partnering with a subcontractor so that the experience of the subcontractor may rub off on you and you can in turn garner the experience required. This is because some governments do not like dealing with a newbie, therefore you must be ready to ride on the back of experienced folks.
4. Register with the Right Contractor Body
Here you would need to figure out which body applies to your location and country. Therefore, you would need to register for example with; the central contractor registration board, as well as other similar bodies. Registering with some of these bodies might come with a fee and this fee varies from country to country. You must not be deterred by the fees being charged, as in the long run you are sure to make much more than you have spent peradventure you clinch the deal.
5. Search for Local and State Bids Online
Be sure to always look online for local and state bids that may be placed online. The government of some countries lists these contracts in the order of state and local governments so that you can make a choice. Therefore you must be vigilant so that such opportunity doesn’t pass you by.
6. Be Thorough
One of the qualities that help some businesses win government contracts is the quality at which they run their businesses. Therefore you must be willing to take a cue from this by being thorough with the quality of product you are proposing to the government.
7. Beware Of Over Pricing
Some folks make the mistake of over pricing their products because they think since it is the government they would definitely have the wherewithal to pay come what may. Truth is that this sometimes is a lie as the government is also looking to cut all costs that might make it appear too extravagant. Therefore you have got to take a cue by making your price competitive. Doing this means that you stand a chance to be considered compared to others whose price might be off the radar.
8. Get Certified
One other way through which you may be considered as qualified for a government’s contract is by getting endorsed by some relevant bodies that are recognized by the government. Such bodies include; association for business entrepreneurs, associations for minority operators and what have you.
9. Stay Calm
When dealing with individuals, being aggressive wouldn’t be an issue at all. However, dealing in the same vain with the government might not be a good deal as you might come across as a negative sign instead of positive. So, you must be sure to stay calm and positive after you must have placed your bid; hoping that all would go well in the long run.
Would all these steps help? Sure, these are time tested steps that those who have gone before you have adhered to and are enjoying. You too must be ready to stay in the same line so as to clinch several contracts in no time at all. However, you must be ready to also learn the ropes along the line so that you would be an expert at what you do and so you would stand a better chance to stay afloat the game than your competitors.
The Federal Government sublets contracts worth over 500 billion dollars annually to private companies both big and small; you can skyrocket your company’s revenue by getting contracts from the Federal Government, since we know that most Federal Government contracts are supplies needed in bulk quantities.
Though the process of securing a Federal Government can take a long time and can be stressful because of the many protocols involved; there are still some easier ways to go about it. In brief, this article will talk about how you can secure your first Federal Government contract; touching subtopics like things you need to bid for a Federal Government contract, how to bid for the contract and further tips to help you get future contracts with Uncle Sam.
3 Things You Need to Bid for a Federal Government Contract
It is important to state that getting a contract from the government does not come easy for obvious reasons. If you bid for contract from any of the government agencies, there are loads of other people (companies) you will be contending with, plus the bureaucracy that you must have to scale through. Before you make the move to bid a Federal Government contract, you have to put the following things in place;
- Have an Up and Running Business-: The Federal Government may not be willing to give out contracts to businesses or companies that are yet to be established; they always need the best hands to handle whatever contract that is assignment to them. So the first thing you need is a business or an already established company before you talk about biding for a Federal Government contract.
- Strong Financial Base-: The Federal Government contracts are assigned to companies that have the financial capacity to execute such contracts since most contracts awarded by the Federal Government do not come with an upfront payment. Aside having a strong financial base, you also have to upgrade your company to meet the government standards before you start bidding on contracts, because thorough investigations are done to make sure that companies that are to be awarded Federal Government contracts are up to date. In line with meeting up to the required standard, you have to put the following in place; an up to date account system for auditing by government officials, a workable business plan and a business insurance to protect your business in the course of executing the contract.
- Get All Required Licenses and Certifications-: There are some registrations and licenses you need to acquire before you start placing bids on Federal Government contracts. Some of them include: Data Universal Numbering System identification number (DUNS); this number is obtained for free and its very necessary you get it before you start placing your first bid, Tax ID number, Federal Supply Codes, Product Service Code and North America Industry Classification System Codes.
With all these in place, I will talk about how to place bid on Federal Government contracts.
How to Successfully Bid on Government Contracts
a. Register on Central Contractor Registration Database-: This is the first step you need to take when bidding for a Federal Government contract especially if this is your first time of doing so. You need to go to Central Contractors Registration (CCR) and create a profile for your business. Try to be as thorough as you can while creating your business profile including services your company handle and its capacity. Having a business profile at CCR makes it easier for the procurement officers to get to your company if there is an available contract that suits the services your company offer.
b. Research for Available Opportunities-: The next is for you to search for available contracts and business opportunities that match the services your company offer; the best place to get such information is via www.fbo.gov. Federal business opportunities are always listed on the site, including requirements for bidding on the contracts.
c. Submit your Tender-: After you have found a federal business opportunity that fits the services your company offer, the next step is to submit your tender. Your tender should contain details about your company, services you offer, how you entail to carry out the contract if it is awarded to your company and finally your prize quote. If you get confused on the issue of preparing your tender, you can view tenders submitted by companies offering services similar with yours and note how they detailed their tenders. Finally, remember to follow the require process outline in the contract to submit your tender.
Tips to Help You Get Future Government Contracts
No doubt winning contracts from the government requires more than your competence, you would need other soft skills to become successful in bidding for contracts from the government of your country. If you have done your home work and you know you have the capacity to execute any government contract awarded to you, then below are 10 tips for successfully bidding for government contracts:
- Start Small
Don’t ever back out because you think that there is no place for small businesses to bid for Federal Government contracts, you can start by bidding for small contracts, even for less than $10,000. After you have executed few contracts or you have a better capital base, you can go for bigger contracts.
2. Study Government Policy on Awarding Contract to Contractors
Now that you have chosen to become a government contractor, then you need to sit back to study all you could possibly lay your hands on as regards government’s policy when it comes to awarding contracts to contractors. You would be amazed that the reason most people fail to secure contracts from the government could be linked to their ignorance on government’s policy on awarding contracts to contractors.
3. Incorporate Your Company
Of course you should be aware that all government deals with a company are registered under the corporate affairs commission. As a matter of fact if your company / business are not registered, you might not even have access any grant or loan from the government of your country. So, if you know that your aim of starting a business is to bid for contracts from the government of your country, then you should ensure that you incorporate your company.
4. Acquire Every Relevant Certification, License and Permit in Your Industry
It is very important to acquire every relevant certification, license and permits that is required in your industry before bidding for any contracts from the government. Your certificate, license and permits gives you advantage over your competitors who don’t have. For example; if you are bidding to supply drugs to government hospitals, part of what they might look out for before awarding you the contract is your pharmacy certificate, your practicing license and other permits required to function in that field.
5. Pay Your Tax as at When Due
If you don’t have a good tax record, then you need not bother yourself to bid for any contract from the government of your country. As a matter of fact, part of the screening process for a contractor bidding for government contracts is their tax record. For this reason, ensure that you have paid your tax up to date before submitting your bid or else you won’t get the contract.
6. Be Competent at What You Do
You just have to exhibit high level of competence in your field when given the opportunity to do so. When bidding for contracts, make it a point of duty to always refer the committee in charge of screening bids to your past jobs (that is if you have done a brilliant job in time past) it will always be to your advantage to do so.
7. Build Your Capital Base
Despite the fact that you will be mobilized when a government contract is awarded to you, in some cases you might have to use your money to complete the job before you will be paid. As a matter of fact, before contracts can be awarded to any company, the government will ensure that they do a background check to be sure the company can successfully execute the project and part of what the look at for are your years of experience and your capital base.
8. Perfect Your Presentation Skills
In case you don’t know this, lack of good presentation skills have deprived loads of contractors from securing juicy contracts from the government despite the fact that they are highly competent. No matter what you know and what you can do, if you can’t sell it to people, you will have a challenge winning them over as your client. So ensure that you perfect your presentation skills before bidding for contracts from the government.
9. Never Make Negative Comments about the Government in Power
In this era of social media revolution where loads of people make negative comments about the government without caution, you just have to be careful about the comments you make. The truth is that it is not only HR that investigates people’s online records before employing them; government official does same before awarding contracts. So if you know you would be bidding for contracts from the government, then you should watch what you say about the government.
10. Strive to Be the First to Submit a Bid
Once you see an advert requesting for people to bid for any government’s job, ensure that you are prompt in preparing and submitting your bid. You never can tell the first set of people to submit their bids might just be the people that will be considered for the next phase.
11. Build Synergy-: You can join with another company that offer similar services with business to bid for Federal contracts. This provides you the power of synergy and increases your chances of securing the contract.
12. Ensure Timely Delivery-: Make sure that you deliver the contract as meticulous as possible if the contract is awarded to your company at the end of the bidding period. Executing contract awards in a half hazard manner will diminish your chances of getting other contracts in the future.
13. Network with Procurement Officers-: Most times, these Federal Government contracts are being awarded by procurement officers on behalf of the federal government. You can increase you chances of getting better contracts in the future by developing relationships with procurement officers; and they will sure notify you when a federal business opportunity that matches your services is available.
Your interpersonal skills and networking skills will often come to bare when bidding for a contract from the government. The truth is that competence alone can’t secure you a contract from the government — but the people you know in government will always work to favor you. For instance; if two people that have same level of qualifications and competence bid for a job, and one of them has a relationship with someone in the government agency they are bidding for contract from, definitely he stands a greater chance of getting the contract.