Why Don’t More Companies Deal With Government Contracts?
It’s true that there are some government contracts that are more lucrative than others. But it’s also true that these contracts provide a steady source of work and regular payments. If a company is going to be successful at procuring government contracts, though, it will have to have a good understanding about how the process works.
The first thing a company should do is start of small. There are a lot of little towns or municipalities that offer work, and it is easier to get involved with these jobs than it is the larger state or federal jobs. These contracts will probably pay less than twenty five thousand dollars, but these kinds of contracts are crucial to building a reputation as a reliable and capable contractor.
CPOs (Contracting Procurement Officers) and PAs (Purchasing Agents) take the responsibility of defining the parameters of the RFP (Request for Proposal) that will be put out for bids. These specialists become very well acquainted with the market value of the goods and services that are up for bid and are quite capable of ensuring that the government contracts eventually awarded deliver quality at a fair market cost.
The CPOs and PAs are also responsible for studying and examining any warranties that are offered and researching the service history and reputation of the bidders. This is a precaution that will save the agency a lot of time and headaches down the road.
Only about twenty percent of small businesses in the United States participate in bidding for government contracts. This is a stunning statistic when balanced against the fact that government contracts are, literally, a trillion dollar segment of the economy. The most common reason that businesses do not attempt to bid on contracts is extremely simple – business people are terrified by the overwhelming amount of paperwork and regulations involved.
Another reason why many companies fail to get involved is that they simply don’t know how to get started with the bidding and acquisition process. It doesn’t have to be difficult, though. In fact, the Government Services Administration (GSA) website provides a lot of answers and tips.
For federal bids, the Government Services Administration office maintains a web site that offers short courses that are designed to educate and assist bidders. Continuing education credits are available to those who complete the courses, and there are certificates of completion that can be displayed.
Once a company has established a reputation of quality work and service as described above, that company is more likely to become a successful government contracts bidder. It is also vital that a bidding company take extreme care in meeting all time deadlines and specifications.
When applying for government contracts it is essential to have a well written request for proposal. Evelyn has some writing experience with construction contracts, government bids and other similar topics. For more information, see her other articles.
