Which agencies are buying what you sale?
How are agencies buying what you sale?
What websites have the information that Im looking for?
What contract history do I need to know?
Who are my Competitors/”Competimates”/ Teaming Partners/Primes?
How to leverage prime contractors as a sub-contractor?
Has the agency met thier prime contracting goals?
What do they plan to buy in the future?
What is “Agency Intimacy”?
Market research in federal contracting is a vital process in understanding and positioning a company within this unique, and highly regulated environment. It enhances competitive positioning, reduces risks, and ensures a clear path to meeting federal needs in a compliant, strategic manner.
Research and Understand the Federal Market
Identifying Your Buyers
Determine which federal agencies need the products or services your company provides. Agencies vary significantly in size, mission, and procurement needs.
Use Federal Databases Tools
Leverage public databases such as SAM.gov, FPDS (Federal Procurement Data System), and USAspending.gov to find contract opportunities, research spending trends, and analyze competitor activity. The DOD agency’s are generally more difficult to enter into as a prime at the begining of your government contracting journey. (This is a strategic opinion and its not to say that you cant target them and get a contract.) A good rule of thumb is to narrow your list down your top 3 non DOD/civilian agencies, but most of all its strategically better if you sub-contract with other small businesses first.
Bulls Eye! (Targeted Marketing)
Identify Relevant Opportunities
Knowing how much a specific federal agency buys the products or services you offer allows you to target your marketing efforts more effectively. You can focus on agencies that have a history of purchasing what you sell, increasing your chances of securing contracts.
Understanding Procurement Methods
Contract Vehicles and Schedules
Federal agencies use various procurement methods, such as open competitions, GSA Schedules, Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, blanket purchase agreements (BPAs), or small business set-asides. Knowing how an agency typically buys your product or service allows you to position yourself with the right contract vehicles and bid strategies. Some agencies may use simplified acquisition procedures for lower-value contracts, while others may rely on larger, more complex procurement processes. Understanding these procedures helps you better prepare your bids and proposals.
Budget Cycles and Spending Patterns
Align with the Government’s Procurement Cycle Understanding the governments fiscal year and the agency’s budgeting process helps you time your proposals and marketing efforts to align with periods of higher spending, such as the end of the fiscal year when agencies need to obligate funds. (You should be developing your business all year around).
Fiscal Year Spending Patterns
The federal government operates on a fiscal year (October 1 to September 30). Many agencies ramp up spending at the end of the fiscal year, often referred to as the “federal buying season” (July to September), to utilize remaining budgets. Contractors who know when agencies are likely to spend can time their marketing efforts and proposals to align with this period of increased procurement activity.
Investigate Your Competitors
Identify Key Competitors
By examining which companies have won previous contracts, you can gain insights into your competition. This helps you understand who your main rivals are and how you can differentiate your business when submitting future proposals.
Study your Competitors Strengths and Weaknesses
Understanding which companies are regularly winning contracts gives you a clearer picture of what they offer. By analyzing their performance or reading into any challenges they faced (if available in contract reports), you can craft a proposal that highlights your unique strengths. You can identify major competitors, their pricing strategies, and how they have successfully won contracts. This allows you to differentiate your offerings and position yourself more competitively.
Maximize Subcontracting Opportunities
If an agency has met its socio-economic goals but still has contracting needs, prime contractors may be looking for subcontractors to fulfill specific tasks. Knowing the agency’s status helps contractors position themselves for subcontracting opportunities.
Identify Partnering Opportunities
Contractors can explore partnerships with larger firms that are seeking to fulfill socio-economic goals, creating win-win scenarios where both parties benefit. Knowledge of the agency’s certification goals allows contractors to tailor their marketing strategies. For example, if an agency is trying to meet its WOSB or SDVOSB goals, a contractor with the relevant certification can highlight this in their marketing and proposals.Contractors can craft specific messaging that resonates with the agency’s goals and objectives, increasing the likelihood of being noticed and considered for contracts. If an agency has fulfilled its goals, contractors can research other vendors.
Leverage Prime Contractors
If an agency has met its socio-economic goals but still has contracting needs, prime contractors may be looking for subcontractors to fulfill specific tasks. Knowing the agency’s status helps contractors position themselves for subcontracting opportunities from Primes that have successfully secured contracts, learning from their strategies and positioning. Contractors can explore partnerships with larger firms that are seeking to fulfill socio-economic goals, creating win-win scenarios where both parties benefit. By knowing the agency’s socio-economic status, contractors can avoid investing time and resources into opportunities that are unlikely to yield results, thereby mitigating the risk of wasted efforts.
Past Contract History
This can show the price ranges that were accepted by the agency. This allows you to structure your pricing competitively, ensuring that your bid falls within a range that is likely to be considered.
Gauge Contract Size and Frequency
Knowing the typical contract size and how often the agency issues contracts in your field helps in planning your bidding strategy. For example, if an agency consistently awards contracts within a certain range, you can tailor your bid to meet that expectations. Reviewing contract history allows you to identify when existing contracts are set to expire. Many government contracts go up for rebid after their term ends, presenting an opportunity for new contractors to compete for the work. Forecast Future Solicitations: Analyzing trends in previous contracts (annual renewals or multi-year contracts) gives contractors an idea of when new solicitations may be issued, helping them stay ahead of the competition and prepare bids in advance.
What keywords do I need to know about my Agency/Customer?
The right Keywords Address Specific Needs
Keywords in the SOW reflect the agency’s priorities, technical requirements, and the problems they need to solve. By incorporating these terms into your proposal, you show that you understand the agency’s specific needs and are well-positioned to deliver the required solutions. Using the same keywords ensures that your proposal directly addresses the agency’s objectives, making it easier for the evaluators to see how your offering aligns with what they are seeking.
What do they plan to buy in the future?
Agency Forecast List (Not all Agency Forecast List are created equally)
Identifies Future Opportunities
Forecast lists provide early visibility into the types of contracts an agency plans to release in the future. This allows contractors to start preparing proposals, gathering resources, and developing relationships with key decision-makers before the official solicitation is posted.
Forecasts help contractors plan their bidding strategies, allowing them to allocate time, personnel, and resources toward specific upcoming opportunities. Contractors can focus on building teams, obtaining certifications, or gathering past performance data for contracts that align with their expertise.
