Government contracting can be intimidating, particularly when it comes to determining financials. What if you could get the federal government to help you pay for your project? Fortunately, that option is available in the form of federal grants. However, you will need to do a little homework first.

I refer to the CCR, or Central Contractor Registration. This should be the first stop for anyone who would like to receive a federal grant. The CCR functions primarily as a database for government contractors, and it allows the government to view potential candidates. A CCR number is required for any grant. You need to update your CCR registration every year, since out of date registrants will be automatically rejected from CCR funding.

In the world of contracting, it is incredibly important to cross your t’s and dot your i’s.  While contracting absolutely requires excellent people skills, the barriers to entry will weed out anyone who is not paying attention. Don’t miss out on the opportunity for funding by neglecting to register with the CCR. Contracting for the federal government is highly competitive. You will want every advantage you can get.

Government contracting differs from traditional business ventures in many key ways, and one of those is the marketing of your product. As in any industry, differentiators will ultimately determine who wins the contract, yet it is important to realize that these differentiators are unique when dealing with government agencies. For one thing, you are not offering a good or service to a wide market; you are offering it to one particular agency. For that reason, specificity is much more important than in traditional marketing. You are only trying to capture the attention of one customer, so your marketing efforts should reflect their needs in detail.

You also must realize that these agencies can see right through buzzwords, marketing slogans, etc. because they are ultimately irrelevant to them. Using such words in your approach is not only useless, but potentially harmful, as they indicate that you do not know what they actually want. Offering to build “the highest quality airplane money can buy” will be less effective than saying “we can build you an airplane that meets your target specifications for $50,000 less than you thought it would cost,” for instance. These kinds of details will make a big difference when the time for proposal comes.

It is also important to acknowledge the human element of these interactions. Since the idea of a massive bureaucracy is so closely associated with government agencies, it is easy to forget that individual humans have a significant impact on where a contract is awarded. It is therefore very important to network with the agencies that you are interested in contracting for to get an inside view of requirements, and also to become a friendly resource for them. Successfully doing this can translate to a contract award since you will be remembered as a valuable asset when they are making final decisions. Don’t lose sight of whom you are trying to win over, and market to specific agencies, and you can significantly increase the odds that you will win the contract you want.

This Q&A was taken from our Journyx webinar series featuring Wes Fue entitled “Federal Government Contracting-It’s a Whole New World!” For more information, sign up for an upcoming webinar or check our archives for previously recorded webinars.

The short answer to this question is: no. Consider this, you wouldn’t want your pricing information out there either! However, that does not mean that there is no way to determine a fair pricing structure for your contract proposal. One of the most effective ways is to go to usaspending.gov. From there, you can find a wealth of pricing information. For instance, you can see how much government agencies have spent on projects similar to the one you are proposing, you can see the total amount spent on certain project categories, and you can see the types of projects your chosen agency has awarded. If you are still on the hunt for competitive intelligence, it is also possible to type in the name of a business to see the projects that they have been awarded in the past and the pricing of those contracts. All of this information is free and public. So, even though it is not possible to see a specific bid for an active solicitation, it is very possible to structure a reasonable estimate using the wealth of information available online.

This Q&A was taken from our Journyx webinar series featuring Laura Faulkner entitled “Holding Your Ground-3 Keys to Expanding Your Government Contracts Now” For more information, sign up for an upcoming webinar or check our archives for previously recorded webinars.

This can be tricky, because it is never wise to spread yourself too thin and dilute resources. However, considering the potential volatility of government contracting (due to budget costs, contract realignment, etc.) it is also wise to branch out into several different contract areas to be sure you always have a place. Thus, it is advisable to proceed into those other areas using a low-risk approach. That might mean subcontracting or taking on smaller contracts initially. That way, you do not expend too many resources on untested ventures, and should the need arise to reallocate resources it will be easier to maintain a less risky contract with less experienced personnel. 

The most obvious question many people ask when they decide to pursue a government contract is almost always, “where do I start?” Unfortunately, they will often hear many different things from various advisors, and while the advice can be quite solid, it always overlooks the fundamental first step of the process. I am not talking about receiving your DUNS number or even checking the available RFP’s. In fact, you shouldn’t be directly involving yourself with any government agency at this earliest and most crucial stage. No, your first step is incredibly obvious, yet so many aspiring contractors overlook it – a critical mistake.

The first step when pursuing a contract is to create a business plan.

Again, this seems incredibly apparent, but a major factor in contract failure is the inability to meet the terms of the contract due to poor initial planning. It is impossible to make a realistic plan without knowing the resources you have available and what the realistic costs of the pursuit will be. That means going through your existing business plan (you did create one initially, didn’t you?) and revamping it with this new business goal in mind. Contracts require some flexibility, so it is always best to err on the side of caution when adding this important endeavor to your future plans. However, the pay off for going through this innocuous logistical task means that you will be better prepared for the rigors of contracting.

In order to create a plan with a potential contract in mind, it is absolutely essential to know your business data, best achieved by keeping and maintaining a backlog of information from past projects. This will allow you to make accurate forecasts about future allocations of resources. You will also be able to make more precise proposals that promise the maximum ROI for your company while still being competitive. Without an accurate estimate it is very possible to either over or underbid on the proposal, resulting in needless frustration for you and the agency, and even a possible loss of the contract. So, right now, go and fix your business plan. It’s an easy step that will save immense headaches later.

This Q&A was taken from our Journyx webinar series featuring Wes Fue entitled “Federal Government Contracting-It’s a Whole New World!” For more information, sign up for an upcoming webinar or check our archives for previously recorded webinars.

This is an excellent question. Unfortunately, the answer is that they do not have to. While agencies do release the final competitor standings they do not necessarily advise across the board. For a business that is waiting for a decision to proceed on certain other business operations, this information can be crucial. Therefore, it is a good idea to stay on top of the contracting agency and ask for a debrief if you have submitted a contract and know that submissions close on a set date. You can also wait a couple of weeks to see if a decision has been made if you are uncertain of the close date. Finally, it is a good idea to find out where you stood in relation to the other competitors if you do not win the contract because most agencies will base their decision on a relatively fair scoring system.

When Thomas Hobbes wrote The Leviathan, his philosophical political treatise, he put forth that a government should be heavily centralized and have near absolute power in order to essentially save people from themselves. Thankfully, western society affords us much more freedom than this theory would allow, and somehow we survive without bludgeoning each other over the heads with dull stones. That being said, much like the government in Hobbes’ philosophy, the United States government does have some “sovereign” powers that ordinary consumers do not have. When working on a government contract, it is important to realize this, as well as how those privileges can affect you.

One of the most important of these additional rights is the ability to unilaterally alter a contract, so long as it remains within the parameters of the contract. In practical terms, that means that the government contractor might be required to ship or package the product in a certain way, or even to supply more product. Of course, this does not mean that the contractor is without rights. Equitable cost adjustments may be instituted to scale compensation. In any case, the contractor must comply with these new contract components. 

Perhaps the most concerning possibility for a government contractor is the fact that, should the government decide that the need for the contracted product or service no longer exists, the government might cancel the contract. The contractor will be compensated for the project in this case, but it can be unexpected. When dealing with the government, it pays to be prepared.

So what does this mean, and what should the aspiring contractor do? First, it is absolutely essential to keep your house in working order, and to be sure that you have the necessary resources to take on a project. Second, it always pays to have a pivot strategy in place. The possibility for alteration or cancellation of a project is remote, yet if you can prepare for multiple possibilities it can save you from financial distress and in some cases can improve your relationship. Raising a big stink over shipping specifications, for example, will only make you seem uncooperative. It’s far better to maintain some level of flexibility in your operations so that no situation is ever too far outside of your control. The best way to do this is to consistently track resources and time to projects, that way you know exactly how much additional funding, time, or materials can be diverted while still remaining profitable.

There is a lot of hubbub about using third party solutions for successfully integrating software products into your business, and you can’t open a software provider’s page without hearing how well they will improve your current system, filling in the gaps and taking over the clumsy, clunky controls that you are stuck with. Whether you are using QuickBooks accounting systems or Microsoft Dynamics for projects, there will always be someone saying that they can take over and optimize or even replace the system entirely. In many cases this is true, because those businesses focus on very specific problems, whereas the software they attack is configurable to a wide range of needs. So, if your issues match with their specific skill sets they can count money in the bank. However, in many cases they are counting on one factor that is almost certainly the cause of the other issues: user error.

If you, or whomever you hire to consult, fails to optimize the installation of core business software, or fails to appropriately update it over time, then it can appear as though the problem lies with the software itself. In fact, most of the larger software packages are made to adapt to nearly any business problem, and those that can’t generally require only minor tweaks, not a major overhaul or replacement. Consider the claim that QuickBooks can’t be used for maintaining compliance with the Defense Contract Auditing Agency (DCAA). The reality is that you need only configure the appropriate settings and link it to a timekeeping system that meets the requirements of the federal government. Choosing an entirely new accounting system and implementing it across your company is time-consuming, expensive, and inefficient. However, there are companies just waiting for you to get frustrated with your products, throw your hands in the air and say, “I give up!” That, as they say, is when they’ve got you.

So, if you take away nothing else from this post, take away this: always look to see if your software has the answer built-in before abandoning it for something shiny with big promises to deliver. The odds are that it has flexibility that you were unaware of. If you had it installed by someone else, ask for assistance, or call the vendor. In many cases they will be happy to help. There is no reason to clutter your business with extraneous new systems that provide only a bandage to a broken arm. The most effective fixes come from an understanding of, and willingness to correct, the primary system itself.

Who is ultimately responsible for the data of your company? In every case, the answer is you. Sure, you might outsource your data storage to a third-party, but guess what? Anybody who needs access to that data is going to expect it from you, and any issues such as loss, theft, or corruption of that data will be your responsibility as well. It is not enough to select a data storage provider and then wash your hands. It requires a relationship of constant communication. It also requires quite a bit of homework, as the best data vendor is selected

The importance of keeping data secure is particularly important when dealing with the US government, as they require secure records that can be easily retrieved and reproduced with all the accuracy of traditional “paper” records. Proof that your company can secure their records in this way can help win the trust of government agencies or businesses looking to subcontract. Of course, it will also help you if you already have a contract. If the DCAA ever needs to look into your records, you will want to provide them with well-kept data that could not have been compromised.

So what are the best ways to ascertain if a data storage provider, or a SaaS provider that stores data on their servers is legitimate? For starters, you should make sure that you will have access to your data at all times, and whether or not they have backup systems in place should there be some sort of power outage at their facility. This could mean that they have data stored at more than one geographic location, or that they have reserve power or some other contingency in place. If they don’t you might be without data at a crucial time. You will also want to inquire about the speed of data uploads and restoration, particularly if it is important that your company have fast access to its data. Finally, it’s not a bad idea to inquire about their other paying customers, and how many there are, to get an idea of whether or not they currently provide necessary support for businesses such as yours.

Data storage need not be a stressful factor of your business, but it does require some forethought. Grant it that, and you will have a secure solution that works well for your business. Fail to do so, and you might find that you are without key information during those crucial times when you really, really need it.

Guess what? Gaining a contract with the defense industry is indeed a lucrative process. At least, it is when the business who wins the contract understands all of its terms. One of the most important terms to determine, especially at the outset, is what it means to have a fixed price contract. Sometimes, a business will overestimate its ability to deliver on a project, possibly because they are used to acting as “yes men” for their standard customers, promising they will deliver just about anything the customer wants and opting to iron out the details later. However, the federal government is not a standard customer, and if you say yes to them, you should be able to deliver.

The truth is, the contracting agency will adhere rigidly to the terms of the contract. If they allocate a certain amount of money for the completion of a project on a fixed price contract, that is all the money that the agency will spend. If a business takes on a project that’s out of its league, it’s quite possible to lose money. Therefore, an understanding of all your businesses processes, particularly related to available resources and time to completion, is absolutely necessary before attempting to win the contract.

Of course, even if you don’t have the ability to tackle a project due to resource requirements that are a bit out of reach, the story doesn’t end there. It is still possible to team with other aspiring contractors, or even to act as a subcontractor. The point is, without a firm grasp on the logistics and assets of your business, you might either undersell or oversell yourself, and thus miss out on the optimum profit potential of your government contract.

While it’s not a cakewalk for small businesses to win a government contract, there is good news: it is getting easier. The U. S Government, as of November 2, 2011, has modified its FAR (Federal Acquisition Regulation) rules and now requires contracting agencies to consider setting aside a portion of their task and delivery order specifically for small and disadvantaged businesses. Now, now, I know what you’re thinking: “It requires them to consider placing a portion of their orders aside? What kind of weak ruling is that?” Well, fortunately, trends in contracting show that more and more contracts actually are being awarded to small businesses.

For example, in 2009 the U.S. Government awarded 21.9% of contracts to small businesses, whereas in 2010 that number rose to 22.7%. The difference resulted in a 1.1 billion dollar increase in the funds given to small business contractors. Further, the government exceeded its goal of allocating 5% of its contracting dollars, settling around an actual allocation of approximately 8%. In short, the trend toward awarding contracts to small businesses is steadily rising.

So what does this mean for your business? Well, if you have been on the fence about going for a contract, or if you think you have a product or service that the government regularly needs, then there has never been a better time than now. Not that you need to rush into this, but if you can determine that your company has the capability to pursue one of these opportunities, it could result in massive profits.

If you are intrigued by the possibility of acting as a government contractor and want to learn more, check out our webinar, “How to Win and Successfully Execute on Defense Contracts”, for in-depth information on entering the field of government contracting. Good luck!

In my last post, I described the necessity of a D-U-N-S number in government contracting.  After you acquire a D-U-N-S number, you’re ready to register in the Central Contractor’s Registry (CCR).  Registering your business in the CCR not only makes your company visible to the government, but it’s also a requirement according to the Federal Acquisition Regulation (FAR).  So what do you need besides a D-U-N-S number to register?  You need:

• CAGE Code
• Company and Corporate information
• Federal Tax Identification Number
• SBA-defined socioeconomic characteristics
• NAICS code
• Product Service code
• Federal Supply Classification code
• Financial information
• Point of Contact (POC) information
• Electronic Data Interchange (EDI) information

Registering in the CCR is an essential first step into government contracting.  Below is a video from SBA, which will encourage your decision into seeking business with the government and help you brainstorm how to make yourself attractive to the government after you register.

Have you already registered for the CCR?  We’d love to hear your experience!

If you are a small business looking to work with the federal government, you hopefully are finding this blog incredibly helpful these days.  Recently, I found this great Howcast on the subject of government contracting:

Howcast is a very useful how-to video service with a wide range of videos, including business advice.  The videos are engaging and informative and a great way to start research on a new subject.

Do you find learning through videos easier than text?

Our Director of Marketing, James Brawner, recently attended the American Express OPEN Government Contracts VIP Forum in Dallas last month.  Here are some of his take-aways from the conference:

• Of all the government agencies, the DOD (Department of Defense) receives the largest amount of government contracts
• There are so many websites with information about government contracting, DCAA compliance, etc. that it’s overwhelming
• The best sites I found for learning more about this industry are…
  • Federal Business Opportunities
  • Defense Contractor Management Agency (DCMA)
  • Defense Contract Audit Agency (DCAA)
• American Express spared no expense for this conference and they brought in speakers from all over the country
• My favorite speakers were…
  • Mark Oliver, Department of the Interior OSDBU:  “Doing Business with the Federal Government”
  • Joe Jordan, Small Business Administration:  “Small Business Contracting: A Year in Review & Future Outlook”
• Central Contractors Registry (CCR) is an excellent resource to find partnership opportunities with companies who have registered as a government contractor

Sounds like a great conference for learning about government contracting!  Are there any other attendees out there?  If so, what were your impressions of the event?