September 16, 2011
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If the idea of government contracting brings to mind defense systems and construction projects, think again. The government is the largest buyer of all sorts of products—not just products, but also services. If you're a professional service provider—such as consultant, Web designer, copywriter, events coordinator or marketing communications pro—even your services may be ones the government needs.
The U.S. Government spends $425 billion annually on all sorts of items—from paper plates to project management services. As a small business, you’ve got a good chance of having a slice of this pie: the government aims to spend 23 percent of its budget annually with small businesses like yours. (Read more on government contracting opportunities.)
A surprising client
Susan Davis, Chairman of Susan Davis International, never intended to get into government contracting. She’s been in marketing, PR and public affairs for 30 years, but only jumped in the game of contracting in the last 10.
“I thought government work would be complicated—it is! I also thought you'd have to compromise your standards; i.e., the government would go for the low bid and you couldn't make any money and everything would be dumbed down,” explains Davis, “But that turned out to be a misconception.”
Davis’ firm has produced and handled media relations and strategy for the Bicentennial of the Library of Congress, created public awareness for the Employer Support of the Guard and Reserve agency and produced the Secretary of Defense Freedom Award.
Most recently, Susan Davis International was hired to manage the Dedication of the Martin Luther King Jr. Memorial, drawing hundreds of thousands of spectators. (Technically, this project involved work for a foundation set up to raise money for the dedication, after which the memorial is turned over to the National Park Service.)
Doña Storey of Quality Technical Services also stumbled into government work after working with a group of nuclear engineers who encouraged her to look into government contracts: “I took a look around and said, where are the opportunities for me?"
Once she set up a Facilities Consulting division within her company, the government work started pouring in. Her first contract was for $1.2 million in consulting services, and QTS quickly ramped up to delivering on a $20 million project. Her staff went from a 1.5 person company to one that employs up to 20 people.
How to get on the government’s radar
The key to securing government contracts naturally starts with registering your business to be a government contractor and classifying your company correctly. But there’s a lot more to actually securing business than getting on a list.
Networking, stresses Davis, is key in building relationships with government agencies. There are many conferences, forums and workshops on government contracting that can not only provide you with valuable information, but also give you the chance to connect with people.
But keep in mind that employees of the government agencies you want to work with aren’t your only foot in the door.
“[The] quickest way to get involved is through subcontracting. All the big consulting firms—Deloitte, etc.—have huge contracts,” says Davis.
Working as a subcontractor, you can be a part of a larger project without going through the process of bidding.
The last quarter of the government’s fiscal year—which ends September 30—may be the best time for you to bid on contracts. Agencies are working to meet the 23 percent funding goal to small businesses, and are especially looking for 8(a), Hub-zone, women-owned and service-disabled-owned small firms to award projects to.
The future of government contracts
Naturally, we are all wondering what the future of government contracting looks like. Will it shrink due to the fluctuating economy?
“There is what I would call temporary shrinkage,” says Storey. She says that in Washington, government agencies are holding off on big spending as they’re waiting to see which programs will be grown and which will be cut.
Regardless of the ebb and flow of contracts, Storey says the key is knowing your niche. Her first boss, years ago, told her that strategic marketing was like diving into a bucket of water from the top of the Empire State Building.
“If you don’t understand and know your customer, and if you don’t know your true target market, you are not going to hit that bucket of water when you make the big dive.”
Both Davis and Storey agree: if a project is outside your scope of expertise, walk away. Don’t waste your time chasing money if you’re not qualified to take on the work.
For more information on government contracting, visit the OPEN Forum Government Contracting page.
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