By Irv Alpert
Executive Vice President, Onvia, Inc.
Marketing your business to a government prime contractor is much like selling to any other entity: You have to find customers who can use your goods or services and convince them that your company is a capable vendor.
By Irv Alpert
Executive Vice President, Onvia, Inc.
Government contracts often combine a variety of products and services under a single bid or RFP. If your company can't provide all of what's required in a contract, you don't have to give up on participating in it. Instead, consider partnering or teaming with another company.
Every year, countless small businesses miss out on potential revenue from government contracts because they don't understand how to sell to local government. If you're confused by the procurement process, below are tips and resources that will help you understand how to pursue local government contracts:
If you want to subcontract for a prime contractor, you may be asked to submit a proposal. Prime contractors usually have specific information they want to see. You'll likely receive a request for qualifications (RFQ) or request for proposal (RFP) explaining these requirements. Below you'll find an explanation of the information you might be required to include:
When subcontractors are pursuing a subcontract, they may be required to prepare a proposal explaining what their company offers. Prime contractors may have specific rules about how subcontractors should present and write their proposals. These requirements should be explained to subcontractors in a document such as an RFQ or an RFP. If any confusion arises, contact the prime contractor. As the first step, the subcontractor agreement is very important to the subcontracting process.
As you bid on a subcontract, pricing is a major factor that will come into play. Nevertheless, be sure not to sell yourself short and have all the essential subcontract pricing considerations accounted for. Here are some requirements, costs and other subcontract pricing factors you should take into account before you sign a contract.
As the firm that will be legally responsible for executing a government contract, a prime contractor takes the lead in securing the contract and managing its performance. In cases where a prime lacks the expertise or capacity to implement certain components of a project, it will typically establish teaming agreements with subcontractors to handle this work. Generally, a prime will choose all of its subcontractors and form teaming agreements before it submits a bid or proposal — but not always.
Being a subcontractor on a government project can be a game-changer for your business — it provides invaluable experience that'll boost your chances for future agency work, and you can make dozens of new contacts within your industry. But subcontracting can also turn into a nightmarish mess of roadblocks and disputes. The key to avoiding all that? The subcontracting agreement. In a subcontracting agreement, the devil is in the details.
Government agencies are required to award a certain percentage of their contracting dollars to small businesses. In the current economic climate in which job creation is such a high priority, small business set-asides are under more scrutiny than ever.
By Irv Alpert
Executive Vice President, Onvia, Inc.
Government subcontracts typically have three basic components: the statement of work, the delivery schedule, and the invoicing schedule. Your company may need to attend one or more pre-work meetings so that your managers know what's expected of them and what technical, financial, and regulatory oversight will be required.
