Company Assessment/Value Plotting
What value does your business bring to the Federal Market?
What can your business do for the government?
Can you financially handle a contract?
Are you financially ready to do business with the Government?
Can you staff a project if you win a contract?
Entering the federal government marketplace can be a significant growth opportunity for companies, but it also requires thorough preparation and assessment.
“The Basics”
SAM Registration: Confirm you can register in the System for Award Management (SAM), a requirement for federal contracting.
NAICS Codes: Determine your company’s NAICS (North American Industry Classification System) codes to align your services with federal needs.
Certifications: Check if your company qualifies for small business certifications (e.g., 8(a), WOSB, HUBZone, SDVOSB) and assess whether certifications could give you a competitive edge. (This is just to check, this does not mean to go out and get a certification…yet).
Financial Capacity and Stability
Funding Resilience: Federal contracts often require upfront costs. Ensure you have the cash flow or financial reserves to handle potential delays in payment.
Insurance Requirements: Some federal contracts require specific types and levels of insurance. Review these to ensure compliance.
Customer Relationship Management Systems (CRM)
In the federal contracting market, long-term relationships with government clients, contracting officers, and procurement managers are critical. CRMs allow contractors to manage and track all communication, contract histories, and interactions across various agencies. This ensures that companies can better nurture relationships, follow up on opportunities, and maintain compliance with federal requirements.
Operational Capabilities
Technical Competency: Assess if your team has the skills and experience to fulfill federal contracts. Some contracts, especially in areas like cybersecurity or IT, require specific competencies.
Scalability: Consider whether your company can scale production or services to meet the demands of federal contracts.
Compliance Infrastructure: Ensure your business can comply with federal regulations (FAR/DFARS, cybersecurity standards, quality standards like ISO).
Identify Target Agencies and Needs
Agency Research: Identify which federal agencies most align with your products or services. Study their procurement history and pain points.
Contract Vehicles and Schedules: Assess the relevance of specific contract vehicles (e.g., GSA Schedule, IDIQ contracts) and determine if obtaining these is feasible and strategic.
Competitive Positioning and Value Proposition
Unique Selling Points (USPs)
Define what differentiates your business from others in the same field, focusing on your value to government agencies.
Past Performance: Federal contracting values past performance highly. Review your track record, including private-sector projects, to identify relevant experience.
Value Plotting: Strategically capturing and analyzing performance data, for the purpose of putting into quantifiable, qualifiable, metrics and percentages.
Networking and Strategic Partnerships
Subcontracting Opportunities: For new contactors, subcontracting with established federal contractors can be a strategic entry point.
Building Government Relationships: Engage with small business offices, industry days, and federal business outreach programs to build connections.
Engage in Strategic Partnerships
If your bandwidth is stretched but you don’t want to forgo certain contracts, consider teaming with other contractors through partnerships, joint ventures, or subcontracting, which can alleviate the burden of resources while allowing you to engage in larger contracts.
Work Load (Bandwidth)
For a federal government contractor, assessing bandwidth to take on new business involves evaluating current operational capacity across multiple areas to ensure compliance, manage risks, and deliver on contracts effectively. Here’s a strategic approach to measuring and ensuring bandwidth:
Evaluate Resource Availability and Allocation
Personnel
(FRONT/BACK OFFICE) Assess if you have sufficient staff with the right clearances, expertise, and availability to take on new projects. This includes contract managers, project managers, compliance officers, and technical staff.
Financial Resources: Confirm that your organization has the working capital to manage potential contract payment delays and cover upfront costs (staffing, equipment, or software purchases).
Physical Infrastructure and Technology: Ensure you have the necessary facilities, software, and tools that meet federal standards (secure data centers, encrypted communication tools) to manage new contracts.