Is your business Procurement Ready?

What Value do you bring to the market? (Value Plotting)

Have you done this work before? (Past Performance)

GTM Stratagey (Whats your approach to the market?)

Are you “niched down” in what you do best? (Core-Copentency)

Becoming “procurement ready” as a federal government contractor involves several steps to ensure a company can successfully compete for and fulfill government contracts. This process requires a solid understanding of government procurement processes, compliance with regulations, and preparation of necessary certifications and resources.

A federal contractor’s past performance and core competencies play a crucial role in determining their value to  federal buyers.

Federal Government decision makers should be able to look at your company as if they are a nutritionist looking for the value of a product in a grocery store. They should be able to understand how much nutrition based on the servings of your company will add to the federal government.

They should be able to understand the servings of your service compared to the servings on a food product,  and be able to tell  how much value you bring as a company. your company should aim to deliver the most nutritional value for the government.

 Past Performance

Reputation and Reliability

The federal government weighs a contractor’s past performance when evaluating bids for new contracts. A strong track record demonstrates reliability, the ability to meet deadlines, adhere to budgets, and deliver quality work. This builds confidence in the contractor’s ability to fulfill future obligations. Many government solicitations use Past Performance Information (PPI) as part of the evaluation process, often as one of the key factors. A history of successfully completing federal contracts can give a company a competitive advantage in winning new contracts.

Lower Risk

Contractors with excellent past performance ratings are seen as lower-risk partners for the government. The government prioritizes minimizing risks (Risk Adverse) in project execution, and proven performance reassures procurement officers that a contractor is likely to deliver on promises.

In essence, past performance serves as a measure of reliability and competence in delivering results, while core competencies showcase the contractor’s ability to offer specialized services that meet the government’s needs. Both are vital in assessing the contractor’s overall value and potential for future federal business.

Core Competencies

Alignment with Government Needs: The company’s core competencies—areas in which it has specialized expertise—directly affect its value to the government. Contractors that specialize in fields highly relevant to government needs, such as cybersecurity, defense systems, health IT, or engineering, are more likely to win contracts in those domains.

 

What are your Core capabilities?

You will win more business faster in the federal market with a narrow niched focus on a product or service that you deliver or perform superbly well.

Describe what you do, and the outcome for your customers. Think about those clients for whom you solved a problem like the one you think your prospective government buyers will have.
Government buyers are extremely risk averse. They want to know that you’ve already solved their problem for a company that has similar problems, like them.

Your pass-performance needs to give government agencies the confidence that you will solve their problems with low risk.

Understanding The Federal Acqucition Regulations

Study the FAR Basics! 

The FAR is a comprehensive set of rules governing the acquisition process by which federal agencies procure goods and services. It applies to most federal government contracts.

Contractors should focus on understanding key FAR parts relevant to their contracts.

 

Contract Types: Learn about the different types of government contracts (e.g., fixed-price, cost-reimbursement, time-and-materials) and which one suits your company.

Contract Vehicles: Understand contract vehicles like GSA Schedules, BPA (Blanket Purchase Agreements), and IDIQ (Indefinite Delivery, Indefinite Quantity) and GWAC ( Government Wide Acq. Contract) contracts.Federal Acquisition Regulation (FAR): Familiarize yourself with the FAR, which governs federal procurement procedures. Understanding how contracts are structured and awarded is crucial.

 

Registering Your Business

DUNS Number: Obtain a Data Universal Numbering System (DUNS) number, which is a unique identifier for your business.

SAM Registration: Register your business in the System for Award Management (SAM), the primary database of vendors doing business with the federal government. Registration is mandatory for government contracts and allows you to be found by contracting officers.

NAICS Codes: Identify the correct North American Industry Classification System (NAICS) codes that describe your business’s products or services.

CAGE Code: After registering in SAM, you’ll be assigned a Commercial and Government Entity (CAGE) code, a unique identifier for federal contracting purposes.

Developing a Capability Statement

A capability statement is a concise document that outlines your company’s core competencies, differentiators, past performance, and contact information. It is a key marketing tool used to introduce your business to government agencies and contracting officers.

Ensure the document is tailored to the government market and highlights what makes your company a strong candidate for federal contracts.

Create a Strong Capability Statement

This is a one-page document that clearly outlines your company’s core competencies, past performance, and contact information. It’s a critical marketing tool in the federal market.

Include Key Information:

Core competencies

Differentiators

Past performance (list previous government or commercial contracts)

NAICS codes, DUNS/UEI, and CAGE code

Socioeconomic certifications, if applicable

Securing Financial Resources

Financial Stability: Government contracts often involve significant upfront costs for labor, materials, and equipment. Ensure your business has the financial capacity to handle contract performance before receiving payments.

Surety Bonds: Some contracts, especially in construction, require surety bonds as a guarantee of performance and payment.

Market Position and Differentiators

Certifications and Clearances: Special certifications like CMMC (Cybersecurity Maturity Model Certification) or security clearances (e.g., Secret, Top Secret) are valuable and enhance competitiveness.

Differentiating Capabilities: Specialized technical expertise (e.g., cybersecurity, IT, engineering) makes a contractor more competitive and enhances valuation.

 

Human Capital

Key Personnel: Employees with specialized knowledge, government relationships, or security clearances add significant value. Retention and transition plans for key employees post-sale are critical.

Labor Force: The ability to recruit and retain qualified employees with relevant skills (e.g., cleared positions) is essential, as labor costs and availability can greatly affect performance.

Inconsistencies Across Your company will…..

–Make prospects question what you tell them

-Make the prospect question your ability to solve their problems

-Create a perception that your company lacks business maturity

– Make your company look risky ( The govt is Risk averse)

 

Your company must…..

• Believe that what you sell provides Value

• Ability to communicate and differentiate the value of your solutions

• Always Be honest

• Maintain company integrity

• Focus On Customers needs.. Not yours

• Solve problems. 

• Don’t push your products, services, awards and definitely not you Certifications. When you push more of your socio-economic certifications than the value of your company; the decision makers dislike that. Push Value!!!!!!!!!

• Dont initiate the sale until you understand your customers problem and requirements

• Understand the customers lingo/acronyms/language. That goes with studying and understanding the mission of the agency.

 

The Customer is looking for

Trust

Ethical honest dealings 

Belief that your solution will solve their problem

Customer Service

 

What’s your digital/Non digital presence online

LinkedIn

DSBS Profile 

Your Website 

Sam profile

Social media

Corporate materials (Cape statement white papers case studies etc.)

 

 

 Business Plan/Goals/GTM Strategy

How much government business do you think you want to win this year?

How much can you perform?

Are you financially ready to do work?

What do you need to step up, to perform on the Federal level?

 

What’s your company vision?

What’s your “Go to Market Strategey”?

Is your back office set up? (Sales, Marketing, Finance, Production)

How are your finances? (Debts, Taxes, access to capitol etc.)

Current capacity (How much product of service can you deliver to the government today?) 

 

 

Questions to Consider:

What is your company great at? (The answer should not be “Everything!!”.) It should start off with, “ we specialize in…” This describes what you do as a company.

What do you do better than anyone else?

How much can you actually perform?

What do you provide so well that customers consistently pay you to do the job and refer their friends?

What problems do you currently solve for your customers and how does it benefit them?

What resources do you have access now? 

Have you establish and maintain a good banking relationship?

Successful companies get the inside scoop on both the resources they need and where to get good help from other companies in similar industries that are already selling to the government.

 

 

 

Obtain Necessary Registrations

DUNS/UEI Number: Obtain a Unique Entity Identifier (UEI), which replaced the DUNS (Data Universal Numbering System) as of April 2022. It’s essential for registering in government systems.

System for Award Management (SAM) Registration: Register in SAM (sam.gov). This is the official government system for federal contracting. Ensure your SAM profile is complete, including NAICS codes (industry classification) and business certifications.

CAGE Code: After registering in SAM, you will receive a CAGE (Commercial and Government Entity) Code, a unique identifier for federal contracts.

Industry-Specific Certifications: Some contracts require certifications such as ISO, CMMI, or cybersecurity credentials like CMMC (Cybersecurity Maturity Model Certification).

Develop Past Performance

 Start by subcontracting with prime contractors to build a track record of past performance. Many federal agencies require proven experience in similar projects.

Teaming Agreements & Joint Ventures: Partner with other firms to gain experience in larger contracts.

Market Research and Targeting

Identify Opportunities: Use platforms like SAM.gov to search for contract opportunities and request for proposals (RFPs).

Focus on Specific Agencies: Research the agencies most likely to need your products or services. Tailor your approach to meet their specific requirements.

Attend Industry Days & Networking Events: These events help businesses connect with federal buyers and primes.

Financial Preparedness

Pricing and Cost Models: Understand how to price contracts competitively while adhering to government pricing standards.

Cash Flow: Federal contracts often require a strong financial position to handle delays in payment or cover the initial costs of contract performance.

Compliance with Accounting Standards: Federal contracts may require DCAA (Defense Contract Audit Agency)-compliant accounting systems to track costs properly.

Comply with Cybersecurity Requirements

CMMC (Cybersecurity Maturity Model Certification): If your business handles Controlled Unclassified/sensitive Information you must meet certain cybersecurity standards. Be prepared to get certified to an appropriate CMMC level.

Build and Develop Relationships

Develop Relationships with Contracting Officers (COs): They play a key role in procurement decisions. Building a rapport can help you stay informed about opportunities.

Utilize Procurement Technical Assistance Centers (PTACs/APEX Accelerator/OSDBU/SBL): These are free resources that offer guidance on entering the federal market and navigating the procurement process.