Big Mistakes to Avoid in Government Contracting

Doing business with the government through renewable and recurring term contracting has long been proven to be a viable approach in finding a stable and long-term means of generating income. But selecting, competing, and winning these term contracts is easier said than done—as the world of government contracting is a big paradox that needs to be carefully examined and understood.

While the government-contracting business can be a lucrative career for contractors on the hunt for that stable long-term income in the today's fickle economy, it can be a confusing labyrinth of rules and regulations coupled with prospects who may not even bother to reply to emails or voice messages. When done incorrectly, it can be a costly loss and cause a lot of frustration. But when done right, they can definitely provide a steady and long-term stream of profit.

State, local, and federal agencies are all moving toward the steady use of term contracts to ensure the efficiency of purchasing in order to minimize costs while at the same time establish stable and secure expenses. But many contractors often make critical decisions in haste for their lack of knowledge and information on the idiosyncrasies of the business. Steer away from ruining your set goals in the government-contracting business by avoiding the following common mistakes:

• Inability to perform proper market research. It should go without saying that conducting research is one of the first vital steps vendors should take if they want to get to know the agencies and other critical players in the market. This is an important strategy to understand their practices, regulations, preferences, and other relevant purchasing aspects that they can work on to ensure propositions are prepared and submitted accordingly.
• Inability to examine the competition closely. Conducting a competitive analysis is another critical aspect of the government-contracting business that should never be overlooked. The competitive analysis is a must-have instrument for vendors as it offers not only a good look into the agency’s pricing, delivery requirements, and other relevant regulations but also of the current serving contractor’s winning proposition and their potential to retain the contract when it is back up for renewal.

• Inability to create unique and top-notch propositions. Getting awarded for a contract does not always mean having the lowest price. Increasing your chances of winning an award means having a comprehensive understanding of the agency’s needs, presenting excellent credentials, including add-on services, and establishing trust and rapport with your client.
• Inability to establish different strategies and approaches. Vendors need to be flexible enough to plan, create, and implement various strategies and approaches that will help improve their probability of winning more contracts. They will also need to be well informed about an agency’s contracting specifications including their receptiveness to the competitors’ products, services, and marketing approaches.
• Inability to determine the right contract opportunity to pursue. While vendors should not be putting all their efforts and resources on a single project from one agency or shop around from a large number of government contracts and spread their chances thin, they should nonetheless be able to determine which opportunities and projects are not suitable for their business needs and which one are. Putting your business at a high risk by working hard on winning a project whose specifications aren’t compatible with your business credentials and qualifications can cost the company more and leave it with a big loss and a negative impact on its revenue in the end. 

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