The thought of “selling to the government” often makesmany business owners wince. Red Tapism and Cronyism are some common thoughts, besides the thought of it as being a market that is just not worth the perceived headache.
To help overcome such fearsabout the market, let uslook at some common myths around working with the government. Some myths act asardent promotersof working with the government, some talk more realistically, and some myths are built around words taken straight from the government’s mouth; a careful analysis of the above will provide the right backgroundto make informed decisions about working withinthe government structure.
Top myths on Government Contracting:
Myth #1- Government Functions Differently
The federal government procures everything from paper clips to aircraft carriers, which makes it necessary for them to set a long list of rules and regulations codified as Federal Acquisition Regulations, (approximately 2000 pages),envisioned to make the entire federal procurement process fair and transparent.Such a huge set of rules & regulations can scare anyone and may lead you to think thatthe federal sales process istoo complicated and cumbersome.
Now, what’s the good news?
“These rules relating to your IT products and services are entirelyclear, straightforward, transparent, and easy to accommodate.”
Myth #2- Success for Set asides is guaranteed
Let’s learn the truth, there are no guarantees for anyone in this market. Any set-aside status such as 8(a), service-disabled, veteran-owned small business, or woman-owned small business can only help get access to bidding on somecontracts, instead of guaranteeing you the award.
Myth #3- The lowest bid will winwhatsoever
In the good olden days, typically, the contractor with the lowest bid was awarded the contract. While costs are still critical today, however,the concept of “Best value tradeoff analysis” has become the new ruler that sets the contractors to sell their products &services to the potential clients. This is usually done through theproposal response/presentation.
Hear it from the horse’s mouth! _____
Never submit a typical, generic proposal. Each customer is different, with different set of priorities in awarding a contractor. You must introspect what went wrong;cost is not always the reason your proposal was not selected!
Myth #4- The Government doesn’t pay on time
Never go by any misleading news/media coverage on some states and organizations having not paid their “bills”.When it comes to federal contracting business, payment is made within 30 days, and in some cases 15 days, upon receipt of an accurate procurement invoice.
Still thinking whether to bid for the Government contracts or not?