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Federal Market Intelligence for Small Business |
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How to win your first US contractGloria Larkin offers advice on getting your foot in the doorWith hundreds of small businesses trying to get started in federal contracting each year, you might need an innovative strategy to stand out from the crowd. Gloria Larkin, president of TargetGov consulting firm in Baltimore, MD, recommends aiming for a small contract paid for on a government purchasing card, such as on a General Services Administration SmartPay card. The U.S. government spent $26.4 billion by using SmartPay cards in fiscal 2014, according to the GSA (see related story). Card purchases offer fast and flexible terms and must be less than $25,000. A SmartPay procurement of goods or services may be completed quickly, often in a day, unlike many other federal purchasing vehicles, Larkin said. “My advice is to ‘productize’ something that you offer for under $25,000 for a quick transaction,” Larkin said. “That will allow you to build a ‘past performance’ record and start a relationship (with the contracting agency).” Larkin offered other advice to aspiring federal contractors at a recent small business event sponsored by the Montgomery County (MD) Chamber of Commerce. Do your homework “Contracting officials always say ‘do your homework,’” she told the group. “What does that really mean?” It means that you need to plan, position yourself and pursue appropriate opportunities, Larkin said. That involves doing market research, having a business plan and financial plan, networking, communicating, keeping track of your past performance and continuously marketing to the government, she said. “This is a relationship-based market. If they don’t know you and trust you, your chances of winning are minimal, even on small buys,’ Larkin said. Overall, your focus should be on mitigating the risks that the government faces when hiring a small business. Financial plan: One of the risks the government faces is that a contractor might not have enough money at hand to make key hires or to buy supplies. Many small firms lack financial plans to show the government that they can handle the financial duties involved in the contract, Larkin said. Make sure that you address that issue, she said. Communication Many small firms’ profiles in the Small Business Administration’s Dynamic Small Business Search database are incomplete and do not have accurate and current information. “The contracting officers look at your profile. If yours hasn’t been updated in six months and your competitor’s was updated last week, that creates a bad impression. Of the profiles we examined, 75% would get a ‘D’ or an ‘F,” Larkin said. Procurement forecasts Most federal agencies produce annual procurement forecasts (see today's column), but many contractors fail to utilize the information to their advantage, Larkin said. “That is solid gold information,” she added. Continuous marketing Understanding the three layers of small business federal contracting is critical: office of small and disadvantaged business utilization (OSDBU) representatives in each agency, contracting officers and program managers. You should approach the small business office officials with a strong capability statement and at least three opportunities at their agency that you have researched in advance, Larkin said. The OSDBU aides can help you meet key officials at the other levels. Contracting officers execute a contract, checking your past performance and the contracting vehicles for which you are eligible, while program managers can recommend you based on your specialized expertise and technologies. Ideally, you have to build relationships with executives in all three levels, Larkin said. Capability statement Larkin recommends that contractors develop customized capability statements tailored to a specific opportunity or agency. The statements do not need to have lots of graphics and photographs. What is effective is if they are customized to pertain to the opportunity or agency at hand, she said. Preparing for a large networking event, you might want to prepare five or six such tailored statements as you meet and greet agency officials, she advised. It also helps to mention the agency in your statement, such as, “We assist X department in achieving its mission of X.” Social media Use social media to continuously market your company by distributing news releases about your awards and accomplishments and white papers showcasing your expertise, Larkin advised. “You can use social media effectively in 30 minutes per week,” she said.
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