How to Win Government Contracts
The Government of Canada has over CDN $100 billion worth of contracts up for grabs annually, ranging from requirements for goods and services to construction work. Hundreds of small and medium sized businesses are awarded with lucrative government contracts, and yours could be one of them. The only thing standing in your way is a good understanding of the rules and regulations for selling to the government. While you may be an established company and have years of experience in your field, there is a big difference between marketing to the private sector and the government. If you've been successful in winning government contracts in the past, or already have a standing offer, then it is essential that you increase the existing business you have and possibly expand into other branches.
These days, it's nearly impossible to grow a company without having some sort of business relationship with the government. As the largest purchaser of goods and services in the country, they are always in need of a wide range of services and products, some of which they are likely to buy from your company. Even in times of recession, government spending can remain steady. Receiving a government contract demonstrates that your company is a growing viable entity, indicating that you can compete locally and are ready to grow your customer base internationally.
How to break into government contracting - lucrative and stable market
Bidding for government contracts can be difficult because of the complicated steps involved. Similar to the private sector, doing business with the government requires market research. It is essential to know which department is most suitable for the goods and services you have to offer, as well as the key decision-makers (those who make the purchasing decisions) in that department. No matter how good your products or services are, directing them to the wrong government department will most likely lead to rejection.
My Proposal Manager can provide a step-by-step framework for doing business with the government. Identifying the correct market within the government for your business is only one of many services our company offers.
Is there a demand for your product by the government?
An easy way to find out if your goods and services are needed by the government is to contact them directly. Get in touch with the department you wish to supply for or search their website for open RFPs (request for proposals) or bids which may require your services.
Is responding to a government RFP worth the time and effort?
Understanding the requirements for selling to the government is the next logical step after identifying the proper government sector for your goods and services. There are various prerequisites needed when dealing with government contracts, such as legal, technical and possibly financial requirements, that a company must meet when doing business with the federal government.
Some companies might decide prematurely that it's not worth it – it's too complicated and it is a waste of resources. Or, perhaps, they'll immediately respond to an RFP without considering your their qualifications as it pertains to the requirements. They spend time crafting their proposal, but find out later that they had no chance of winning.
It's true that selling to the government is far more complex than selling to the private sector. However, if you understand how to do the relevant research and preparations, you will be surprised at how easy doing business with the government can be. It is all about understanding what is required and exceeding expectations – wowing your customer, similar to what you do for your private sector customer. This is easily attained by knowing the rules of the game, playing a steady hand and gaining credibility in the government market.
Diagnostic Assessment - see if you qualify to win government contracts
A full diagnostic assessment ensures that you've conducted adequate due diligence in determining your organization's readiness in bidding for government contracts. Knowing your company's strengths and weaknesses in reference to government bid will be crucial in winning government contracts.
My Proposal Manager's full diagnostic assessment tells you whether you meet the basic requirement for selling to the government. Not only will the diagnostic assessment advise if there is a match between you and the government, it will also assess your own company's capacity to sell to the government given the stringent legal, financial, technical and other requirements.
Based on the SOS-R Framework™ ,the Diagnostic Assessment examines your company based on your strategy and plans, operations, technical capabilities, legal capacity, sales strategy and current financial results. This will provide a thorough evaluation of your company's ability to win government contracts and continue to sell to the government in the future. For example, the Diagnostic Assessment can inform you if your company can pass the government's financial due diligence audit. If you do not meet the requirements, the diagnostic can give advise which areas you need to improve.
The SOS-R Framework™ works on the following areas when analyzing your company:
Under Strategy, the diagnostic reviews your goals and objectives and determines how well these are aligned with the government's plans and priorities for the next 5 years. It also looks at your marketing strategy to see how your product, price, and so on fit with the needs of the government.
Under Operations, the diagnostic considers procedures and controls that are necessary for managing a government project such as financial controls, operational procedures, and so forth.
Under Sales, the diagnostic tool appraises your current sales strategy and how appropriate is it for selling to the government.
At the core of the diagnostic tool, are the technical and legal requirements that the government requires and documents in the RFP. A bidder is reviewed on how they can meet these requirements.
The level of financial results that you achieve in terms of getting a loan, a grant, venture capital funding or organic customers such as individuals, companies or winning a government contract is taken into consideration. These things are a direct result of how well your organization is structured to please the customer and meet or exceed their expectations. Reliable financial information is critical for the issuer to determine if the bidder is likely to continue as a viable entity for the proposed life span of the procurement project and has the financial resources to complete the project.
The above outlined components are important elements for developing your business to sell to the government market. The Diagnostic Assessment can assist you with figuring out the needs of government clients and how your current skills, experiences and services can meet these needs.
Not ready to do business with the government?
Upon completion of the diagnostic, you may find that your company is not prepared to answer government bids. Sometimes, past performance is a critical component of wining government contracts, so you may want to establish your reputation before you engage with the government. In most cases, there may be procedures that need to be put in place before you can respond to an RFP. You may need to work on improving your internal controls, project management procedures, restructure your entity, review or revamp your sales scripts and so forth. Winning an RFP is about how your company stacks up against others providing the same or similar goods and services.
Therefore, you must prepare your business for working on government contracts. Based on the results of the Diagnostic Assessment, improve on weak areas. Do additional research and gather market intelligence on your target. This can be accomplished by reviewing their relevant published documents. These tell you the types of good and services they purchase, while preparing for any changes in regulation and standards governing your industry.
If you're ready to do business with the government
If the completed diagnostic concludes that meet all the requirements to work with the government, then you can begin the bidding process. First, identify current and future opportunities by reviewing relevant RFPs, RFQ, or RFIs issued for your industry. Eventually, the goal will be to get your company on a standing offer arrangement with the government. Being on a standing offer signals that you meet the basic requirements to sell to the government in your industry, as well as most of the technical and legal requirements needed by the government client. This demands as much effort as an RFP, but this will save you the trouble of going through the hoops for each individual RFP. Furthermore, the rewards can be great.
The government contacts companies on standing offer so they can compete to win a contract. In the case of bids requested through a standing offer, the most important criteria is lowest price. This is because by being on a standing offer, you have already proven that you meet most of the technical and legal requirements needed by the government client. Competing on cost is the reason your organization must be streamlined so that it can provide a more efficient and cost effective solution to the government client.
For individual RFPs, they differ from standing offers because they are evaluated on merit. The criteria for winning government contracts are based on best value. This means there is a greater emphasis on meeting the technical requirements. The cost proposal is weighted, but this is assessed by the contracting authority only after the technical proposal has been chosen by the evaluation team.
Whether you are competing based on a RFP bid or standing offer with the government, My Proposal Manager's Bid Blueprint System™ provides assistance to guide you through the entire process and boosts your chances of winning government contracts.
Proposal Management with The Bid Blueprint System™
An innovative, full-service proposal management system, the Bid Blueprint System™ will guide you through the intricacies of government bidding, from beginning to end. It searches through a database of open government contracts to find those that suit your company.
It analyzes various RFPs, allowing you to make a decision on which ones your company will have a highest chances of winning, making it easy to allocate your resources wisely. By reviewing the chosen RFPs, it can help you design your compliance matrix and assist in developing your proposal, whether as a supplement to your current team or by creating the most effective proposal for your company. The Bid Blueprint SystemTM can give you a chance to contact the RFP issuer directly and ask any pertinent questions. After reviewing your final proposal, it can even deliver your completed proposal and guarantee on-time delivery.
Get that government contract today
Bidding on a government contract can be rewarding and provides your business with a steady income even in the toughest times. Winning a bid and receiving a contract is not an easy feat, due to the various prerequisites the government stipulates. After locating the appropriate RFPs and contracts and deciding which ones to bid on, you must create the actual proposal to answer the RFP. Finally, after being awarded the contract, it is essential to manage the project well, so you can complete it and continue your relationship with your government client.
With the My Proposal Manager and the Bid Blueprint System™ you'll accomplish all these easily, with little or no trouble. From start to finish, you'll have a guide for the RFP process, allowing you to allot your resources efficiently. The system can easily match you with the most relevant open RFPs and aid you in developing the best proposal to win you that government contract.