Last year wasn’t the best for government contracting. Sequestration hit our industry pretty hard and caused us to have to get creative to find new projects. However, it seems lately that things might be trending up. I’m starting to see movement in pre-solicitation notices hitting the street, which means contracts might be awarded at the beginning of the next fiscal year, October 1. It’s important as we go into this new chapter that we do it with a good head on our shoulders, taking knowledgeable steps for our companies that lead to profitable futures.

I’ve said many times that I’m a collaboration type of guy. I’m seeing a slew of new jobs that I have the capability to perform, but the challenge here is to prioritize; identify what projects I can complete on my own and have the best chance of winning. But I also have to keep my eyes open for projects that may require some teammates. I can use my relationships with other companies and leverage their experience to target and pursue projects together. It’s crucial to my business that I be able to do this, as it opens up the playing field for us significantly.

Now, if you’ve only been in business for a year, this may be the first time you are seeing this kind of movement in federal contracting. It can be extremely exciting. The truth is-anybody can compete. It doesn’t matter if you’ve been in it for years or are just starting out. But I’ve learned a few things along the way that have helped me focus and shape my process when it comes to bidding on these jobs.

One of the things I try to avoid these days is the shot gunning approach; thinking the more bids I put in, the more opportunity I will have. I’ve come to find out that it’s not the best route, at least for me. You may wind up with nothing at the end of the process OR you might find that you were a little too aggressive and now you’ve got all these contracts that you have to execute. Let me say, however, that every company is different. It really depends on the level of experience of the founder or whoever is leading the company. They may be experts in a certain area that puts them in a position of power, a position to win. But if you get too many of them, it can be really detrimental to you because it will affect cash flow.

Projects I tend to chase are based in multiple year options; the contract can be extended for more than one term. They are more expensive to pursue, for sure. You’re going to spending several thousand dollars just for proposal prep and submission. But if you win one of them, it’s definitely going to pay for the other three or four bids you didn’t win. So, it’s not unheard of for me to drop five to ten thousand bucks on a proposal; money for travel, site visits, hotels and all the factors that revolve around winning a job that’s going to be multiple years and mean multi-million dollars to my company.

Now, if you’re doing something that’s local, there’s not that much travel and it’s a smaller dollar figure payout; fifty thousand to a hundred thousand dollars. Those kinds of jobs are only going to cost you five to seven hundred dollar to submit. But you’ve got to track your win and loss ratio. Try to understand what is working for you. Does it make sense for you to spend so much time chasing these smaller jobs or do you have the time and resources to go after the bigger ones?

Every company is different. The key is to link up with someone, a mentor, who has gone before you and achieved what you are trying to achieve. At the end of the day, though, it’s your company. Figure out what works for you and prioritize the jobs based on your own numbers. If you have any questions about the procurement cycle or contract proposals, contact me, Joe “VetBizMan†Perez, directly. Stay hungry.

The post Submitting for Federal Contracts: Approach with a Plan appeared first on Frontline Support Solutions.