Friday, October 24, 2008

Myth: The Federal Government Market is only open to the big player.

The federal government is a lucrative market for all sized companies, larger or small. In fact, a significant portion of federal procurement dollars are statutorily mandated to achieve specific percentage goals based on the type of small and/or disadvantage business you qualify as. Small business procurement goals by type of business:
Goal: 23% of all prime contracts are set aside for small businesses.
Goal: 5% of all prime and subcontracts are set aside for women owned businesses.
Goal: 5% of all prime and subcontracts are set aside for small disadvantaged businesses.
Goal: 3% for HUBZone businesses.
Goal: 3% for Service disabled veteran owned businesses.
However, don’t expect business to be handed to you just because you fit into one or more of the categories above. Do your homework whether you plan to bid as a prime or subcontractor to one of the major systems integrators. If you are seeking subcontract opportunities and the procurement is in the pre-RFP stage, ask yourself how can my solution or offering solve a particular problem in the agency? Can my solution provide the prime contractor with a key discriminator to help them win the business?
If the contract is already awarded to a prime contractor, determine how your solution or offering can solve a specific problem the prime is facing. Does your solution bring value that can be translated into savings?
The bottom line is - know your customer. Solid past performance and knowledge and understanding of the agency and how your solution can solve a specific problem in the agency will put you on the road to success.

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