If you’re looking into government contracting, you might think it’s as simple as finding a contract and making a bid. However, this is not the case, and you may be competing against any number of the 33.2 million small businesses across the US.
If you know how government contracts work, you could take advantage of some very lucrative business opportunities. One thing you need to do is make yourself known to government agencies. This way, when you submit a bid, the government buyers know your company and how you operate.
However, before you begin, there are five things you should know about government contracts before actively pursuing one. Keep reading to learn them now.
1. Identify Your Target Market
When applying for government contracts, you may think that applying for all of them will yield better results. However, you would be incorrect. Instead, focus on what the buyers are looking for. Once you know this, see how it can fit in with your company’s niche and what uniqueness you can bring to the table.
2. Learn the Lingo
If you’re new to government contracts but want to dip your toe in the water, it’s helpful to know all the industry’s jargon before you begin. If you’re unfamiliar with corporate formality, now would be a good time to brush up on it if you want to impress any government buyers. You also run less of a risk of missing out because you didn’t fully understand the brief given.
3. It Takes Time
One can become quite impatient or think they’ve been knocked out of the running while waiting for an answer on your government contract bid. However, it’s worthwhile to understand that these contracts take a long time to come through. Another thing to realize is that your payment may not come up front and can sometimes take a few months to come through.
4. Several Stages
When submitting bids for government contracts, you can get overwhelmed if you aren’t aware of the stages of the entire process. There are at least seven stages you need to be mindful of. These range from preparing the standard tender documents, opening bid meetings, several stages of assessment, the contract award, and a technical evaluation.
There will also be a stage where financing details are discussed, and you can submit a credit period in which the buyer can pay the fees associated with the bid. You can find out more on OTAs government contracting website here.
5. Never Underbid
Finally, the last thing you should be aware of is never to underbid a contract. It’s easy to think that if you cut your prices, you are more likely to be awarded the tender, but this would be incorrect. Several factors go into deciding who the winning company is, and by undercutting your prices, you’re doing more harm to your business than good.
Bid on Government Contracts Like a Pro
Knowing how the bidding process works when you’re competing for government contracts can go a long way to helping you win the tender. Remember to learn the language to talk the talk, and never undercut your prices when submitting your bid.
If you’ve found this article helpful, there are more like it in our Finance and Business categories. We also have categories on animals, families, babies, insurance, and more, so there’s something for everyone.
