Business Issues: Change Your Perspective By Mary Ann Wangemann President Obama makes a compelling case for reducing the total spend on federal government contracts by 10%, resulting in a savings of up to “$40 billion a year by reducing government contracting, especially no-bid contracts.” With his efforts to bring back in-house certain government functions by requiring federal employees to do the work rather than government contractors, companies currently enjoying long-term contractual relationships are starting to wonder if the well is about to go dry. Let’s not kid ourselves. A large amount of federal dollars is still going to government contractors. According to www.usaspending.gov, the federal government spent $452.7B in contracts in 2008. But what will allow your company to be one of the companies getting a portion of these dollars? In these fiscally fit times, is your company positioned to stay in the federal contracting game? What is going to give you the edge over your competitors for the remaining federal dollars? Here’s the big hint: change your perspective and think like the government when positioning your company for government business. For example: Training. Are your people trained to think in the language and processes of federal government contracting? When I teach government contracting officers, they frequently complain that many companies “just don’t get it.” They say companies don’t understand the process; the requirements of the RFP; how the FAR influences buying decisions; the implications of types of contracts; or even how to price a deal. Companies that don’t understand these nuances of federal contracting will go at federal business with the same approaches they use in their commercial practices….and will come up short. The federal space is a different marketplace and requires a different way to go about it. Strategy. Is your company positioned strategically to go after the federal government space? Are you leveraging the tools available to you to learn about opportunities; let the government know you’re interested; construct a winning strategy; select strategic subcontractors; and develop a compelling winning strategy? Now is the time to hone these skills to give you a competitive advantage. The small business officers I meet with say that companies are “all over the map” when it comes to strategy. If your company doesn’t know what it wants to be when it grows up, how can you expect the government to figure it out for you? Proposals. Do your proposals represent your company in the best possible light? Are they compliant with the stated requirements and the implied requirements? Do you know how the government evaluates your proposals so that you are giving the source selection authority reasons to select your company? Do you seize the moment when conducting an oral presentation to the government evaluators? Are you aware of how the government evaluates your price proposal so that you can be seen as the ‘best value’ offeror? Your proposal is your only tool that gives the government reasons to select you. Unless you leverage it successfully, you don’t get the business. Contract Performance. Now that you’ve won a government contract, is your company positioned to manage the deal successfully so that it not only makes money for your company but also allows the government to give you positive past performance assessments for your future government business opportunities? Do you have the business processes in place to successfully run a government program of any size? Your objective is not to win a government contract. Your objective is to win a steady stream of government contracts. To do that, you need to demonstrate to the government that you can effectively and efficiently run contracts. Contract Transition. Are you positioning your company effectively to win your next government contract by carefully managing the close-out or transition of an existing contract? Many companies don’t realize that the government could terminate a contractor for default the day before a contract ends if it fails to meet its contractual obligations. By focusing on meeting all the requirements of the contract and the government’s unique process for shutting down a contract, you can position yourself well for your next government contracting opportunity. In summary, if you are selling to the government, think as the government thinks. Do what you can to help them help you. Dr. Mary Ann Wangemann has marketed, sold and managed federal government business in deals up to $13 billion. She teaches government contracting at the University of Virginia, teaches contracting officers through the Department of Interior, has written 16 textbooks on government business and is available for consulting engagements. She can be reached at at maryann.wangemann@ymail.com.