One of the best ways to boost revenues in the construction industry is through government contracting. There are local, state, and federal opportunities that can help transform a company from a small business into a large enterprise.
With $1.2 trillion in annual discretionary spending, there are unlimited ways for companies to be successful when bidding on government contracts. But, unless your company understands the best strategies to win, you may waste valuable time chasing hopeless leads.
Make sure you make the most of your government bidding process with these tips:
1. Understand Your Strengths
The first rule of thumb for any business development endeavor should be a critical analysis of your company's internal strengths and weaknesses. This can be a stumbling block for winning government construction contracts.
Unless your company has an accurate picture of where you are today, it will be impossible to know how to qualify leads and target the right opportunities. All this means a lot of missed time and a loss of sales dollars and resources.
There are thousands of contracting opportunities. These range from small laboratory construction jobs to indefinite quantity contracts.
If you look at your commercial track record, you should know the regions and types of work you want to target for government contracts.
2. Safety as a Priority
Everyone in the construction industry knows that safety must be the first priority. You need to protect your own employees and your customers every day of the year on the job.
In order to bid on government contracts and win, your safety program has to be first rate. If you have issues with a high EMR, you may find yourself disqualified early in the bidding process.
Talk to your insurance company for additional information on your EMR. Also, make sure your training program and processes are in full compliance with OSHA. Your proposal will likely require information on your safety program to be successful.
3. SAM, DUNS and NAICS
Before starting your search for the right opportunities, there are administrative items your company should start to perform to prepare for government contracting.
Your company will have to register for SAM in order to begin contracting on the federal level. The System for Award Management (SAM) helps government agencies track your performance and acts as a repository of information on contractors.
If you don't have one already, you will also need a DUNS code and a NAICS code to start government work. You can find NAICS code or codes here.
The additional benefit of NAICS codes is they will help you narrow your search for open solicitations. That way, you can focus on opportunities ideally suited to the strengths of your company.
4. Getting Experience
The blessing and the curse of government contracting is experience. Even if you have significant experience in the commercial marketplace, it is sometimes not enough to secure government work.
Many government agencies require a track record of successful performance on government contracts before making an award. This is not true for all projects.
Gathering your experience also means understanding the track record of the key players in your company. The right experience in government construction projects will often be a major evaluation factor in the award process.
5. Teaming
The question for companies who do not have experience in the government contracting arena is knowing how to start the process. You may want to look for another construction firm to team up with in order to begin securing more work.
Many companies shy away from learning agreements and fail to break into government contracts. But, as long as your teaming agreement is well planned out, it can be a win-win scenario for 2 or more firms.
You may be bringing special expertise or experience to the table for another company. In these cases, many awards will allow you to use their existing experience as part of your past performance section.
6. Be in Compliance
The time for creative proposal formatting and unique submissions is not when you are submitting a government proposal. The contents of your proposed solution can offer interesting strategies to help the government.
Make sure your proposal is in full compliance with the requirements of the government RFP. If not, you may be disqualified before anyone even reads your proposal.
7. Ask for a Debrief
In any contracting award that your company participates in, you should ask for a debrief. If you request this formally, the government agency will review the criteria for the award and explain how your company scored.
This process is often invaluable in helping a company hone their proposals and get closer to that coveted first award. Unfortunately, many companies miss this opportunity and end up making the same mistakes over and over again.
Make sure you request a meeting with the awarding office after the contract is awarded. Make any changes and fill in any gaps in your proposal and you will be achieving better results.
Bidding on Government Contracts Requires the Right Tools
There is no question that securing the right government contracts can mean more than a spike in revenues for your business. Bidding on government contracts can mean a solid foundation for investing in the overhead structure and long term business growth of your company.
But, you can only capitalize on government contracts if you have good information and a solid strategy to win. That's where DataBid excels. DataBid informs you of virtually 100% of all Public opportunities going on in your area.
GC's, Subs and Suppliers rely on DataBid to help find public and private bidding opportunities. And DataBid helps turn those results into qualified leads.
Over 2400 subscribers choose DataBid to cut time looking for opportunities!
Contact DataBid today to find out more about how we can help your business grow.
