Federal Contract Bids – How to win

If you’re an SME looking to expand your business, you may be interested in federal contract bids. Perhaps you’re intrigued about how they work and what is required. Luckily for you, this blog will contain useful advice and tips on how to succeed with federal contract bids.

How do federal contract bids work?

When the government is looking to procure a good or service they will often turn to procurement. Procurement is also referred to as solicitation. Both the private and public sectors use procurement. The U.S. government spends billions of dollars annually. It is a great route to consider if you’re looking to grow your business.

If you’re a small and medium-sized vendor, the government awards 23% of all contracts to small businesses. There are state, local government, and federal bid opportunities.

The Contracting Office (CO) sets the rule of engagement for the solicitation. If they decide to go for the route of open procurement, the CO will release a solicitation or Request for Proposal (RFP). The CO may issue a Request for Quote (RFQ) or Invitation for Bids (IFB) instead.

After this, as long as you meet the minimum eligibility criteria you can start your application. The minimum eligibility criteria will be stated within the specification. After you’ve submitted your bid, the CO will review all responses. The contract will then be awarded.

Before you begin, there’s a couple of things you need to do to prepare for federal bids:

Registering with SAM 

In order to submit federal bids, you must first register your business with the System for Award Management (SAM). You will not be eligible for federal contracts if you don’t register yourself as a vendor. 

SAM is a streamlining process, eliminating the need to enter the same information multiple times. Ultimately, the system increases efficiency when doing business with the federal, state, and local governments.

In order to create your SAM profile, you will need your company’s DUNS number. This can be found on the Dun and Bradstreet website. Additionally, to this, you will also need your North American Industry Classification System codes.

Your SAM profile will also provide the information to receive payments from the government for the contracts you win.

Once the registration is complete, you can start to strategize.

Strategizing your sourcing approach 

Submitting federal bids is the end game. First, you need to plan your approach to finding the government solicitations. Federal solicitations can be found on beta.SAM.gov, formally FBO.gov. You can register to the platform and receive notifications.

If your organization is also interested in state, county, or regional opportunities, this can be more time-consuming. In order to find opportunities, someone in your organization will need to be responsible for registering to numerous bidding portals. Each one will likely have its own registration process. There are thousands of RFPs, RFQs and IFBs published every day across the US. Therefore, this will likely be a full-time commitment for a member of your team.

Understanding PIID

With so many solicitations published each day, there needs to be a way for organizations to quickly find relevant opportunities. Enter the PIID!

Sometimes referred to as a solicitation number, PIID stands for Procurement Instrument Identifier. The format is governed by the Federal Acquisition Regulation (FAR) 4.1603.

The number consists of between 13 and 17 alphanumeric characters. These characters are combined into several groups;

• 1-6 – identifies the department or organization that has issued the solicitation. These digits can be referred to as Activity Address Codes (AAC). Every federal agency has a unique code. As a supplier, these codes will tell you which buyer is looking for your goods/services.
• 7-8 – specifies the last two digits of the fiscal year when the solicitation is awarded or when it was issued.
• Character 9 – contains a capital letter that determines the type of solicitation. Common forms include:
• B = Invitation for Bids (IFB)
• N = Request for Information (RFI)
• Q = Request for Quotation (RFQ)
• R = Request for Proposals (RFP)
• T = Standing Price Quote (SPQ)
• 10-17 helps the agency keep track of all the solicitations issued so far. Depending on the volume of solicitations, the agency will determine the number of digits used.

Making your bid or no-bid decisions efficiently

Now it’s time to delve into making decisions. It’s important to carefully evaluate the suitability of a contract before proceeding with your federal bid opportunities. Many organizations try and make their services fit the contract when, really, it should be the other way around.

Ask yourself if your organization is eligible

You won’t always be eligible for every contract you wish to bid for. Unless, of course, you’re already a multi-million-dollar corporation. The soliciting agency will often require certain criteria and stipulate thresholds. This could be turnover, experience, or required accreditations for example.

This doesn’t mean that you should give up though. In fact, 23% of all government contracts are awarded to small businesses. The Small Business Administration (SBA) works with federal agencies ensuring smaller vendors can have a swing at federal bid opportunities.

Each federal agency sets its own specific set-aside goals in accordance with the SBA annually. Within the broader term of small businesses, there are subsets included, for example:

• Women-owned small businesses
• Service-disabled veteran-owned businesses
• Small disadvantaged businesses
• Businesses in HUBZones (Historically Underutilized Business Zone)

10 tips for succeeding at federal contract bids

1. Research and plan well in advance

Before applying for a federal bid, you may want to do your research first. You should first question if you’re eligible to apply for the opportunity.

Do you have:

• The resources to provide the contract if you’re successful?
• Enough time to put together a winning RFP response?
• The necessary requirements and experience desired?

When planning your response, it’s a good idea to work backward from the submission date. You should try and submit your bid a couple of days before the deadline if possible. This will help alleviate the stress come submission day. It will also give plenty of time for temperamental portals or technical difficulties.

Bid submission deadlines are final and buyers don’t consider late submissions. You don’t want to be submitting 15 minutes before the deadline, only to realize the portal is playing up. They’re notorious for being temperamental, so it’s best to submit ahead of time to avoid this stress.

Make a note of the additional documents you need to submit. If you need to write a cover letter, you can download our RFP cover letter template for free. You can edit it to suit your brand and business, making a lasting first impression.

2. Read the statement of work thoroughly

The statement of work (SOW) will contain all the information you need to submit the bid. Although we can’t give you specific successful bid proposal examples, we can give you a rough idea of what’s expected.

The federal government must adhere to the Federal Acquisition Regulation (FAR). The FAR is a standardized set of regulations used by all federal agencies when procuring goods or services.  A federal contract bid is made up of 13 sections. Each one is overseen by the FAR. They are identified by lettered labeled sections:

• A – Information to Offerors or Quoters
• B – Supplies or Services and Price/Cost
• C – Statement of Work (SOW)/Specification
• D – Packages and Marking
• E – Inspection and Acceptance
• F – Deliveries or Performance
• G – Contract Administrative Date
• H – Special Contract Requirements
• I – Contract Clauses/General Provisions
• J – Attachments/Exhibits
• K – Representations, Certifications, and Statements of Offerors
• L – Proposal Preparation Instructions and Other
• M- Evaluation Criteria

What may be required for a construction RFP, won’t be the same needed for a healthcare RFP. Each buyer is different and requires different things. Therefore, you must read all of the bid documents in full (even if it’s 80 pages). This is because they will also state any pre-requisites such as industry-specific qualifications or accreditations. If you don’t have them and still apply, you may be ineligible, and your application rejected. You don’t want to waste your resources on an application just for it to be rejected over an avoidable misjudgment.

3. Good communication is key

You should know what your key messages are and how to best communicate them in your RFP response. Make sure that your key messages align with the contracting authority. This will demonstrate to them that you have done your research and are well matched for the contract.

4. Hit as close to the word/page count as possible

Write clearly and hit as close to the word count as possible on the questions. A buyer has given them for a reason. If they’re expecting an 800-word response, two sentences just won’t suffice.

The same goes for using unnecessary words. Don’t use “At our company, we firmly believe…” when you could simply use “we believe” instead. Additionally, instead of “in order to” you can simply put “to”. If there is a limited word count, you don’t want to waste it on filler words.

Format your response clearly with subheadings and bullet points. Break the questions down and include them in subheadings. This will allow the reviewer to see you have answered every aspect of the question. Put yourself in their shoes. Would you rather be faced with a page of text, or one that’s broken up into subheadings and bullet points? Even if the content is there, subconsciously they will favor the one that’s easier to read. This is an easy way to get in their good books.

5. Be clear and concise avoiding any overly technical jargon

Try and make your federal bid proposal as clear and concise as possible. You don’t want to use overly technical jargon as the commissioner may not be an expert in that area. This could be the reason why they are looking to outsource to another business. So, make sure you explain every abbreviation you use and keep it simple.

Don’t assume that the solicitor knows anything about your business or industry for that matter. If you leave room for them to make assumptions, the wrong assumptions can be made. This may result in you losing marks in your bid if they don’t understand a certain aspect.

6. Have strong management

The most successful applicants for federal contract bids will have a strong management approach. You should consider how you are going to ensure an efficient and effective operation. How do you ensure best practice? Demonstrating this will strengthen your response and further reiterate your capabilities to the buyer.

7. Past performance

Are you able to provide contract examples of your past performance? The CO for your federal contract bids will likely ask for 2 – 3 contract examples. These will be contracts you have carried out that are similar in scope and scale. The specification will state the time period they should be (typically within the last 3 – 5 years). You should note your previous experience in accommodating needs similar to those the contracting agency requires. You should detail how you overcame any challenges will show your problem-solving skills and adaptability.

8. Consider transition planning

Prove your success rate in delivering a seamless transition, from proposing to actually providing. Supplying a detailed:

• Schedule
• Staffing plan
• Statement showing your understanding and mitigation of risks.

A buyer wants to be reassured that the transition will go smoothly. This is especially the case if you are taking over a contract from a previous supplier.

9. Present added value

Federal contract bids will be seeking the vendors that present the best value for money and added value. The CO wants to get the most for the taxpayer’s money. Consider the social, economic, and environmental aspects of the contract. Is your business paper-free? Do you give back to your local community? Do you use more environmentally conscious products or chemicals?

During your research, you could see if there are any objectives the buyer is working towards. This could be net-zero ambitions or greener vehicles. Are you able to provide this? Better yet, are you providing this and your competitors aren’t?

10. Price yourself right

Pricing your services right is an important aspect when compiling any federal contract bid. You want to ensure that you are priced competitively. However, you don’t want to undercut your competitors by too much. This will lead the buyers to question your legitimacy. The federal government wants to be assured that they are getting the most value for the taxpayer’s money.

What’s more, what you put in the bid is often contractually binding. This means if you put a price and then go completely over budget, a buyer won’t be best pleased. It may even result in you being taken to court.

Further support

Do you need help with completing and submitting federal bids? Our team of Bid Writers and RFP Consultants are here to assist. Simply upload the solicitation documents to receive a free quote or request a call back for more information.

Our services

RFP Writing

Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our RFP Writers will break down the solicitation documents, allowing you to see what the bid and the contract involves. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority. Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.

RFP Mentor

Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents. Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.

Proposal Ready

Do you need help with preparing  federal contract bids? Proposal Ready can help businesses that are new to tendering or those in need of rejuvenating their content. Our Bid Consultants can offer you proposal writing services, creating:

• 3 designed and company-branded case studies
• 5 company branded and professionally designed resumes for key personnel
• 1 company-branded bid proposal credentials document that can be used to respond to future RFPs.

Find more helpful tips and advice in our blogs. We cover topics including:

• Working with RFP Writers
• Government bids
• Federal contract bids
• RFP cover letters
• Government RFPs
• Bid proposals
• Federal government RFPs
• RFP Consultants
• How technical Bid Writers can help your business
• State bids
• And many more.

 

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Hudson Outsourcing LLC will not be responsible for any material that is found at the end of the links that may be posted on this blog site. 

Because the information on this blog is based on Hudson Outsourcing LLC’s own opinion and experience, it should not be considered professional financial investment advice.  The ideas and bidding strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  Hudson Outsourcing LLC’s thoughts and opinions will also change from time to time as the market changes and as Hudson Outsourcing LLC develops.