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As a small business owner, you may be wondering how to win government contracts for small businesses. Becoming part of the supply chain to the government is a viable way to grow your business. Not only that, but it has multiple advantages, too.
A lot of small businesses still believe that only big conglomerates are able to win government contracts. However, this simply is not the case. In fact, the government sets aside 23% of all government contracts for small businesses.
Almost every federal government purchase between $10,000 and $250,000 is set aside for small businesses. The General Services Administration (GSA) works with the Small Businesses Association (SBA) to create equal opportunities for small businesses.
The GSA advertises federal government solicitations both locally and nationally. The GSA reserves a percentage of all federal contracting dollars, and is an advocate for businesses that are:
When applying for government contracts for small businesses, you can take relief in the fact that you are guaranteed payment. This is one of the biggest advantages when bidding on U.S government bids. This is because the government must act in accordance with the Prompt Payment Act.
When a vendor submits a valid and proper invoice to a federal agency, they must make the payment on time. ‘On time’ means payment is due on whichever of these four conditions applies:
If the agency does not comply, the payment is late. In this case, it will result in the agency paying an interest rate. This is no doubt reassuring for any small business when becoming a vendor for an agency.
The U.S federal government is one of the largest procurers of commodities in the world. They spend over $500 billion on goods and services via solicitations. Securing contracts can create a pipeline of work for your business.
Government solicitations are a viable stem that you should consider to grow your business. The government is also making more of an effort to secure more local supply chains. Therefore, they’re looking to award contracts to smaller businesses. There’s never been a better time to start going for government contracts for bid.
The final advantage you get when applying for government contracts for small businesses is that you gain experience. This is crucial, as, in order to progress onto larger contracts, you need to build up experience. Buyers expect 2 – 3 contract examples, often within the last 3 – 5 years. The examples are expected to be similar in scope and complexity to the ones you are going for.
Securing contracts, such as set-aside contracts, if you’re a small business can build your experience. The more contracts you win and deliver, the more experience you have. The more experience you have, the bigger the contracts you can go for. The bigger the contracts you go for, the bigger your business will grow.
Before applying for government contracts for small businesses, you may want to do your research first. You should first question if you’re eligible to apply for the opportunity.
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 that always act up at crucial times.
Bid submission deadlines are final and buyers don’t ever consider late submissions, no matter your excuse. 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.
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. 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.
Format your response for government contracts for small businesses 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.
You will need to be able to prove that you have fulfilled other contracts similar in scope and complexity. A buyer wants to be reassured that you know what you’re doing when you bid on government contracts. They can ask for up to three past case studies within the last 3 – 5 years. You should demonstrate how you overcame any challenges as this will show your flexibility and problem-solving skills. The more in-depth, the better (although stay in keeping with the word count).
Keep them relevant and demonstrate the skills that you will be using in the contract you’re going for. This will enable you to showcase that you’re experienced with government contracts for small businesses. Including past contracts where you finished on time and in budget is a bonus.
A positive testimonial from past clients can really excel your case. Only do this if the word count permits, or if you’re asked. If you do this, be prepared to be asked for their contact information. This is so buyers can check if you’re telling the truth. It may sound paranoid, but they need to be sure. It is the government you will be working for, after all.
Now you know some of the advantages when bidding for government contracts for small businesses. Hopefully, these tips will help you secure your next government contract. Don’t be disheartened the first time around. There are options out there to help optimize your chances of success. You may want to consider outsourcing to bid writing specialists to help you win government contracts.
If you’re still stuck on writing your bid response, we can help. Sometimes you just don’t have the time, resources, or experience to formulate a winning response. Luckily for you, we provide three bid and RFP writing support services. We can help you see success with your next bid. Our Bid Writing Consultants have over 60 years of bid writing experience.
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 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 a bid proposal? Proposal Ready can help businesses that are new to bidding or those in need of rejuvenating their content. Our Bid Consultants will create:
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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.
