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Thursday, February 20, 2014

The Contract Application Process: Everything You Need to Know

Awarding of government contracts is influenced by an extensive list of factors. It is more than just submitting the lowest bid and getting awarded for the project. Selling to government organizations entails the use of the same strategies and principles as when selling products or services to the average commercial consumer. Regardless, both customers are making sure they are guaranteed to receive top-quality products and services on time and at a reasonable price.


The Background Check

While a large percentage of government agencies do not require an extensive background investigation about the business, many will request information to be provided under oath including the business profile, owners, employees, finances, etc. Defense contractors and other agencies working with classified materials do need in-depth background check. For this, the company’s criminal, administrative, and taxpaying history will be carefully looked into before they can be allowed to get into a contract with the government.

The Registration

Prospective suppliers for all levels of government agencies are required to register prior to be their participation in the contract bidding. The registration process is critical as it provides the avenue with which the business’s basic information is gathered as it will be needed to determine and evaluate their qualifications. More often than not, the process is renewed on a yearly basis so businesses make sure that all information is not only accurate and concise but also updated. To know more about registering with the System for Award Management (SAM), please read here.


The Research

It should go without saying that before submitting any contract proposals, businesses should always conduct their own research so they will familiarize themselves with the government agency that they are planning to conduct business with. While price may be one of the most important requirements in these transactions, there are other variables that must likewise be carefully examined prior to submitting proposals.

In the planning phase of getting a contract, the business must also be able to accurately determine the decision makers as this may vary from one transaction to another. While some government agencies may be the ones funding the contracts, they may not be the same ones making the procurement decisions. In some cases, procurements are jointly conducted among many agencies or some elected authorities from various affiliations will have an influence on the decision-making process.

Identifying decision makers such as procurement offices, purchasing agents, and small business representatives and letting them know about your business and your specialty can be very important and play a role when the next bid comes up. Hence, successful government contractors make sure that they are kept abreast of current political issues as well as government prerequisites and establish strong business relations with opinion authorities and leaders who can share insights that may give them a competitive edge in the market.

The Proposal

Among the primary factors considered in the process of picking a company to award a contract with is the quality and comprehensiveness of their proposal. In fact, a prospective vendor’s ability to follow procurement instructions is one major determinant of the company’s ability to comply with the contract procedures. It is therefore important that the company reviews the RFP prior to submission to ensure that all requirements have been met. It is also not wise to include information not requested in the RFP to gain an advantage.  This information is seldom reviewed, and procurement officers do not waste time looking at miscellaneous company information.   Also, regardless of its quality, a proposal submitted beyond the given deadline is almost always never considered.


StateAndFederalBids highlights the world’s most extensive collection of state, local, and federal bids covering an expansive selection of categories for products and services. Whether you offer food catering services or provide construction and design materials or operate a minority-owned farming business, StateAndFederalBids is your one-stop shop for opportunities that will help you establish solid business relationships with the government.

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