In today’s uncertain economic times, having a consistent, stable and secure source
of revenue could mean the difference between sink and swim.
But, it’s difficult to predict how the market will affect a company’s clients and customers. A customer that’s consistently
given you great business could be here
today, gone tomorrow. According to
Georgia Vasilion, director, public sector,
Technology Integration Group (TIG), one
way to establish secure, reliable returns is
through public sector contracts — selling
your goods and services to federal government, state and local agencies, and education institutions.
“Public sector contracts can provide your
business with a host of new client possibilities,” says Vasilion. “It should be noted, however, that these contracts require a substantial investment of time and resources, from
finding the contract and agency that’s right
for you, to drafting the request for proposal
(RFP) response, to actually following
through with the contract deliverables.”
Smart Business spoke with Vasilion about
public sector contracts, how to find them
and why they can be so valuable.
What is involved in public sector contracts?
Public sector contracts are generally
divided into three main categories: federal
government, state and local government,
and education. With any of these, the
agency will put out an RFP that your company can respond to. Most RFPs are long
and detailed, so they require a lot of time
and internal resources to digest. And, a public sector contract is not a quick fix, either.
Sometimes it can take months or years to
complete the process. If you want to get
into a public sector business, you have to
have buy-in from your entire organization,
from management to sales reps who may
have relationships with the agency you’re
pursuing. To that end, it’s always best to
focus on an agency that you do have some
knowledge of or experience with. Look at
the big picture and how your business will
be impacted from top to bottom if you do
win the contract. If you can’t fully perform
against the contract, don’t pursue it, no matter how good it looks.
How can companies find public sector contracts?
There is a multitude of ways. Perhaps the
best way is to visit FedBizOpps.gov
(www.fbo.gov). This Web site features a
host of open opportunities, and it’s easy to
search for one that will best align with your
company’s core competencies and business
strategies. Again, these RFPs tend to be
hundreds of pages long, so make sure
you’ve got plenty of time to wade through it
all. Other ways to find public sector contracts are relationship-driven. As stated,
your sales reps often have associations or
connections with different agencies. They
can be great resources to find out what
business opportunities may be on the horizon. Also, mine your manufacturers for possible opportunities. They may be working
on an RFP with the agencies’ end users, and
need a partner to submit the bid proposal.
What should companies look out for when
pursuing public sector contracts?
Even if you’re going after a federal contract, there are usually state and local considerations to keep in mind. While state and
local agencies have their own rules and regulations, such as needing a physical location or business license, these can be
worthwhile contracts to pursue as well.
One of the most overlooked requirements
in an RFP is the absolute necessity of following directions. RFPs will be very specific. There will be direction of what type of
paper and font to use, and how many
copies and how they want them bound. In
short, agencies receive hundreds of proposals — they are looking for any reason to
throw yours out. If you can’t follow simple
instructions, the agency’s evaluation team
will assume you will not be able to deliver
on the specifics of the contract.
Finally, you have to have a strong infrastructure. From putting the proposal
together and securing the contract to actually following through on it, you’d better be
able to deliver to expectations. Most contracts require that you set up some kind of
reporting system, and will require you to
meet delivery and customer service expectations. If you win a public sector contract
and don’t have the infrastructure to make it
work, not only will you lose that contract,
but it’ll be pretty doubtful you’ll win another one in the future.
If you’re confident your company can handle
the contract, what benefits and ROI can you
expect?
Bottom line, a public sector contract can
help get you into a constant revenue stream.
You’ll be able to hit your numbers and keep
your business moving forward, even in a
tough economy. Having these contracts
gives you peace of mind, knowing what will
be coming in and going out in the future.
Over time, these contracts will allow you to
increase margins, which is not an easy task
in today’s market. And, these contracts get
you more involved with the agency you’re
working with, so you’ll become more familiar with who that agency is and what it does,
and you’ll be a known entity, thus giving you
a better opportunity to shape and win future
contracts.
GEORGIA VASILION is the director, public sector, for Technology Integration Group (TIG). Reach her at (310) 320-4934 x4962 or
[email protected].
