In previous articles we stressed the importance of knowing your prospective customer’s business and perceived challenges. We talked about the importance of listening. Remember, the prospect is not interested in you. He or she is only interested in how you can help solve a problem or improve their services or cut costs.
Now let’s discuss the sales cycle. There have been many articles written on the sales cycle. Some are 4 steps, some 5. I happen to prefer the seven step process: interest, educate, demonstrate, design, pretest, propose, close. Pretty straightforward! Think about all the sales you have made in your career and apply this model. I am sure you will agree that you went through each and every step. So, why do so many salespeople feel they can skip a step or two or three and go to close in a single meeting? Well, it’s not to say that it can’t be done, it’s just that the likelihood is quite low when you are selling complex solutions based on services and/or products.
A sales call is like meeting a date for the first time. You go through all seven stages (although you may elect to skip the “propose” stage in this case). That’s not to say there are not exceptions to the rule. But for the most part it takes several or many dates over weeks and months to feel comfortable with one another.
The protocols for selling successfully are equally well-known by professional sales people. However, do we stop and think about the discrete steps in the sales cycle and carefully hone each one? The IT sales environment is dynamic by definition. Ever changing market focus and technology demand up-to-date sales techniques and different methods of presentation. However, the elements that do not change are the same seven steps we learned as fledgling sales people. Let us up date them and apply them in our own market arenas.
Before going on your next call think about it as though you are going fishing. The end game is obvious; you want to catch fish for dinner. However, in the process you need to determine what bait to use, how deep your line should be, and where to cast the line. Generally, you must adhere to established protocols if you want to increases your chances for a successful outing.
Saturday, February 21, 2009
Thursday, February 5, 2009
Now that I have my GSA Schedule, What is the Next Step?
Selling to the government is a difficult task even with a GSA schedule contract in hand. In today’s competitive market, an enterprise must possess the market intelligence, the most workable tactics and strategies, and the knowledge of where a firm’s offerings stand the greatest probability of acceptance by the procuring Agency.
We often speak with companies that hold schedule contracts who state that their revenue expectations have not been realized from these contracts. The reasons are not necessarily simple but most often we have found that these same companies did not have a solid, well-thought out “plan of attack” for marketing off their schedule contracts.
A basic starting point is to develop a Road Map. To simplify matters, the Road Map consists of 4 basic elements:
Discovery – What are the products/solutions that most closely align with both historical, as well as current mandated requirements? Do any of your products/solutions have unique discriminators that would provide a more favorable competitive position for your company?
Target Customers – Who buys what you are selling, the Government, Prime Contractors or a combination of both? Which Government agencies have the largest budget and contract actions in place or in the planning stage?
Acquisition Method – How do your target customers buy what you are selling? Do they use schedule contracts or other methods?
Sales Strategy – Can your products/solutions be sold directly to the Government end-user or is the Prime Contractor your customer? These are two entirely different approaches. The former is on the “push” side of the equation while the latter is on the “pull” side of the equation. What are the major program actions that need to be targeted over the next 6, 9, 18 and 24 months to position your products/solutions in a pro-active sales mode?
Follow the old adage: proper planning makes for more predictable results and favorable expectations. A well thought-out plan will provide your company with a step-by-step roadmap, tailored to your company’s specific products/solutions that permit rapid “traction” in the Government markets.
We often speak with companies that hold schedule contracts who state that their revenue expectations have not been realized from these contracts. The reasons are not necessarily simple but most often we have found that these same companies did not have a solid, well-thought out “plan of attack” for marketing off their schedule contracts.
A basic starting point is to develop a Road Map. To simplify matters, the Road Map consists of 4 basic elements:
Discovery – What are the products/solutions that most closely align with both historical, as well as current mandated requirements? Do any of your products/solutions have unique discriminators that would provide a more favorable competitive position for your company?
Target Customers – Who buys what you are selling, the Government, Prime Contractors or a combination of both? Which Government agencies have the largest budget and contract actions in place or in the planning stage?
Acquisition Method – How do your target customers buy what you are selling? Do they use schedule contracts or other methods?
Sales Strategy – Can your products/solutions be sold directly to the Government end-user or is the Prime Contractor your customer? These are two entirely different approaches. The former is on the “push” side of the equation while the latter is on the “pull” side of the equation. What are the major program actions that need to be targeted over the next 6, 9, 18 and 24 months to position your products/solutions in a pro-active sales mode?
Follow the old adage: proper planning makes for more predictable results and favorable expectations. A well thought-out plan will provide your company with a step-by-step roadmap, tailored to your company’s specific products/solutions that permit rapid “traction” in the Government markets.
Thursday, January 22, 2009
Why Would We Want A GWAC?
Government Wide Acquisition Contracts (GWACs) have become commonplace vehicles for Federal Government clients purchasing a vast array of products and services. In fact, such vehicles account for more than 50% of the money spent on IT-related solutions.
GWACS most often possess several inherent advantages. Among them:
Vehicles are often mandatory for users in the sponsoring Agency. If you are not on the GWAC, you have no opportunity to bid on the requirement.
Competition is limited solely to prime contract awardees thereby reducing greatly the number of competitors when compared with Open Market RFPs.
Major terms and conditions are pre-negotiated as part of the prime contract awards.
Awards tend to be long term. Typically, 5 or more years before requirements are re-competed.
GWAC can serve as a convenient procurement means for your Government customers even when they are not part of the sponsoring Agency; hence the term “Government-Wide.”
As with any process, there is a down-side to such acquisition vehicles. An enterprise must be completely candid with itself to determine if a particular GWAC, or even GWACs in general, serve their mission well. Considerations to be weighed:
There is generally a long timeline from start to finish in planning, issuing, and awarding many of these types of contracts due to their size and complexity.
An enterprise must possess a niche solution so that they may be distinguished from the many other awardees and their teaming partners.
If not the Prime Contractor, a team member must have assurances in their Teaming Agreement that the Prime will make available all Delivery or Task orders that are generated under the GWAC.
The GWAC is the proverbial “hunting license.” You must go out and genuinely market and sell to the end user. There are few, if any, bluebirds in this arena. Virtually all Task orders will be pre-sold by the time they are actually released.
You will invariably be faced with price competition from among the other Prime Contractors pursing the same Task Order as you are.
GWACs, because of their dominance, cannot be ignored. However, as with any investment, you must determine realistically the possible return on investment for the effort required to pursue, bid, manage, market, and sell to eventuall capture sales revenue.
Questions such as; “do we have the required clearances to support the tasks”; will our past performance support our case when bidding Task orders”; “what is our geographical reach”. These and many other questions must be answered prior to making the final bid decision for the initial GWAC award.
GWACS most often possess several inherent advantages. Among them:
Vehicles are often mandatory for users in the sponsoring Agency. If you are not on the GWAC, you have no opportunity to bid on the requirement.
Competition is limited solely to prime contract awardees thereby reducing greatly the number of competitors when compared with Open Market RFPs.
Major terms and conditions are pre-negotiated as part of the prime contract awards.
Awards tend to be long term. Typically, 5 or more years before requirements are re-competed.
GWAC can serve as a convenient procurement means for your Government customers even when they are not part of the sponsoring Agency; hence the term “Government-Wide.”
As with any process, there is a down-side to such acquisition vehicles. An enterprise must be completely candid with itself to determine if a particular GWAC, or even GWACs in general, serve their mission well. Considerations to be weighed:
There is generally a long timeline from start to finish in planning, issuing, and awarding many of these types of contracts due to their size and complexity.
An enterprise must possess a niche solution so that they may be distinguished from the many other awardees and their teaming partners.
If not the Prime Contractor, a team member must have assurances in their Teaming Agreement that the Prime will make available all Delivery or Task orders that are generated under the GWAC.
The GWAC is the proverbial “hunting license.” You must go out and genuinely market and sell to the end user. There are few, if any, bluebirds in this arena. Virtually all Task orders will be pre-sold by the time they are actually released.
You will invariably be faced with price competition from among the other Prime Contractors pursing the same Task Order as you are.
GWACs, because of their dominance, cannot be ignored. However, as with any investment, you must determine realistically the possible return on investment for the effort required to pursue, bid, manage, market, and sell to eventuall capture sales revenue.
Questions such as; “do we have the required clearances to support the tasks”; will our past performance support our case when bidding Task orders”; “what is our geographical reach”. These and many other questions must be answered prior to making the final bid decision for the initial GWAC award.
Sunday, November 30, 2008
Are You Using the Most Efficient Procurement Path?
Once we have successfully worked with Government program and project managers to provide them with the IT-based solutions, do we provide them with the knowledge and the means to suggest to the contracting officials the preferable manner to use in acquiring the solution?
As we approach the end of the Federal Government’s fiscal year, there oftentimes is end-of-year money that is used to acquire needed contractor support services and/or products. Rarely do program people have in-depth knowledge of acquisition methods and procurement procedures. Why should they when they have a contracting shop that already possesses the essential knowledge for the execution of the contract?
Agency management and contracting officers have generally a keen awareness of the socio-economic goals that they are tasked with accomplishing. As the fiscal year closes, most oftentimes an agency must accelerate the money they spend and the contracts awarded to each of a series of set-aside categories. Hub Zone, Service-Disabled Veteran-Owned, Small Disadvantaged Business, and small business as well as a handful of additional set-aside categories need to be considered for awards in order to fulfill the Agency’s mission to meet the goals set forth in Public Law and Presidential Executive Orders.
The importance of informing your client of these set-aside categories can, at times, add greatly to the speed, simplicity, and effectiveness of the acquisition. For example, if your client requires a support service from you and there exists a mandate that this genre of service must go through the Agency’s Government Wide Acquisition Contract (GWAC). Generally, Agency sponsored GWAC’S are multi-award requiring competition among the GWAC prime contract holders. However, if you are part of, or aligned with, an 8(a) firm or a Service-Disabled Veteran-Owned Small Business, a speedy sole source acquisition may benefit all parties.
Agency management and contracting operations are always striving to meet their goals, so you invariably have “buy in” by some of the most important constituencies in the Agency – always a good thing, but of particular importance when you are attempting to greatly shorten the contracting cycle. Since this “buy in’ exists there should be little problem in exempting the “buy” from the mandated contracting vehicle, such as an Agency-sponsored GWAC.
Simultaneously serve the interests of your client, agency management and the contracting office by using one of the instruments described above. You can aid your client in obtaining quick, clean contracting methods while serving the goals of all parties to the transaction. All it takes is a little education by you for the client.
As we approach the end of the Federal Government’s fiscal year, there oftentimes is end-of-year money that is used to acquire needed contractor support services and/or products. Rarely do program people have in-depth knowledge of acquisition methods and procurement procedures. Why should they when they have a contracting shop that already possesses the essential knowledge for the execution of the contract?
Agency management and contracting officers have generally a keen awareness of the socio-economic goals that they are tasked with accomplishing. As the fiscal year closes, most oftentimes an agency must accelerate the money they spend and the contracts awarded to each of a series of set-aside categories. Hub Zone, Service-Disabled Veteran-Owned, Small Disadvantaged Business, and small business as well as a handful of additional set-aside categories need to be considered for awards in order to fulfill the Agency’s mission to meet the goals set forth in Public Law and Presidential Executive Orders.
The importance of informing your client of these set-aside categories can, at times, add greatly to the speed, simplicity, and effectiveness of the acquisition. For example, if your client requires a support service from you and there exists a mandate that this genre of service must go through the Agency’s Government Wide Acquisition Contract (GWAC). Generally, Agency sponsored GWAC’S are multi-award requiring competition among the GWAC prime contract holders. However, if you are part of, or aligned with, an 8(a) firm or a Service-Disabled Veteran-Owned Small Business, a speedy sole source acquisition may benefit all parties.
Agency management and contracting operations are always striving to meet their goals, so you invariably have “buy in” by some of the most important constituencies in the Agency – always a good thing, but of particular importance when you are attempting to greatly shorten the contracting cycle. Since this “buy in’ exists there should be little problem in exempting the “buy” from the mandated contracting vehicle, such as an Agency-sponsored GWAC.
Simultaneously serve the interests of your client, agency management and the contracting office by using one of the instruments described above. You can aid your client in obtaining quick, clean contracting methods while serving the goals of all parties to the transaction. All it takes is a little education by you for the client.
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.
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.
Friday, October 10, 2008
GSA Opens New Office
The JDS Marketing Group, an alliance partner specializing in GSA Schedule negotiation and administration services writes that GSA has opened a new office, The MAS Program Office, to oversee the Multiple Award Schedules (MAS) program. The MAS Program Offices' main responsibility will be developing and putting acquisition policy and guidance into practice regarding Multiple Award Schedules contracts. The office is intended to create, manage and implement ways in which to advance the Schedules program. According to GSA's deputy administrator, Barney Brasseux, "The new program office is a key accomplishment that will enhance our customers' ability to meet their mission critical requirements."
Establishment of the MAS Program Office will:
Provide a consistent, positive customer and industry experience
Provide uniform application of acquisition policy and guidelines
Develop strategic implementation guidance for key shared applications supporting the MAS Program
Serve as the single FAS focal point for MAS-wide critical issues and programs with key government stakeholders
Establishment of the MAS Program Office will:
Provide a consistent, positive customer and industry experience
Provide uniform application of acquisition policy and guidelines
Develop strategic implementation guidance for key shared applications supporting the MAS Program
Serve as the single FAS focal point for MAS-wide critical issues and programs with key government stakeholders
Thursday, October 2, 2008
Back to Basics: Teaming Agreement Considerations
Virtually all small to moderate size businesses in the Government contracting arena will need to team with a larger entity on a not infrequent basis in order to obtain a place on many Federal IT contracts. More and more Government contract actions cover a larger slice of tasks in the information technology sector. So, to be included, presence on a team is a “must.”
Once you have made the connection with a large prime contractor and have essential agreement that your firm brings a portion of the required solution to the Government’s stated needs, you then need to carefully craft a teaming agreement that protects you and the work you intend to perform under a contract award. Too often, smaller firms simply join a team, hoping for the best once an award has been made to the prime contractor with whom you have teamed.
Specifically you must have some form of a work-share agreement as one of the provisions in you teaming agreement or subcontract. This means when requested tasks encompass those areas on which you have bid with the prime become available those tasks will either be awarded to you or you will have the right of “first refusal.”
The absence of these provisions is your teaming agreement relegates your firm to a position, on some occasions, of bidding against your prime contractor or other team members. The entire reason for your participation in a joint effort is for you to have “ownership” of those tasks that you were specifically asked to respond to and price.
Failure to obtain these “rights” has the potential to render your award as valueless. Do not forfeit these rights in the rush to simply be on a team with a major prime. Enter only into those agreements where is truly a “win-win” situation whereby both you and the prime contractor benefit from a task or delivery order that encompasses the solution set that your firm has bid.
Once you have made the connection with a large prime contractor and have essential agreement that your firm brings a portion of the required solution to the Government’s stated needs, you then need to carefully craft a teaming agreement that protects you and the work you intend to perform under a contract award. Too often, smaller firms simply join a team, hoping for the best once an award has been made to the prime contractor with whom you have teamed.
Specifically you must have some form of a work-share agreement as one of the provisions in you teaming agreement or subcontract. This means when requested tasks encompass those areas on which you have bid with the prime become available those tasks will either be awarded to you or you will have the right of “first refusal.”
The absence of these provisions is your teaming agreement relegates your firm to a position, on some occasions, of bidding against your prime contractor or other team members. The entire reason for your participation in a joint effort is for you to have “ownership” of those tasks that you were specifically asked to respond to and price.
Failure to obtain these “rights” has the potential to render your award as valueless. Do not forfeit these rights in the rush to simply be on a team with a major prime. Enter only into those agreements where is truly a “win-win” situation whereby both you and the prime contractor benefit from a task or delivery order that encompasses the solution set that your firm has bid.
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