Becoming successful with government contracting is not an easy feat. There are a lot of small businesses that are trying to enter this vertical – and many of these businesses would likely profit from such a relationship. However, most do not have the resources or the time to go through with the process. This is where it would be useful to outsource your business to government sales (B2G) and marketing program to a company dedicated to that function.

At PublicSpend we specialize in an array of services for small businesses which include researching and identifying government contract opportunities, comprehensive proposal writing and online government qualification marketing to name a few. It is crucial to be highly organized from the beginning of this process which is why I recommend that any business that wants to be successful with government contracting develops a B2G marketing plan and hires a dedicated sales team. It is important to determine if the ROI will be there and if there is potential to develop this aspect of your business.

The first step in the process is to understand the context in which your product or service could be used and determine which government agency could use it. Next, you need to review information on being a vendor for that agency by reviewing information on their website. If you are a small business – I would start off by contacting the small business liaison for that agency and discuss your products and the requirements for selling to that agency and any small business incentives/programs that may exist.

Once you have completed this research, you will know what steps are required for your products. These will include some general steps you need to take, (such as having a DUNS number, registering in the CCR and so forth if you want to contract at the federal level). You also will want to become familiar with the typical procurement requirements/contract language for your products.

One of the best strategies for entering the federal sector is to partner with a larger company. All the primes have small business requirements they must meet. Select several that are in the target market that you are interested in and develop a relationship with them. Most large companies have a small business liaison – just like the government agencies do. That person is the best place to start. You should also try to connect with any contacts that you have within those companies to research the best way to establish a working relationship. Some primes have pre-qualification procedures in place – so you will want to find out what those procedures are – because they can be lengthy.

You also want to get in on the ground floor for opportunities. The best time is in the pre-solicitation or sources sought phase. When you join a team at this point – you will be able to influence the resulting RFP (if the agency has a comment period) – and will be able to develop depth to your relationship with the prime before the RFP hits the streets.

At the state and local (county) levels you will want to follow similar steps in the beginning although you will obviously need to register with the state or municipality that you want to conduct business with. Again, identifying the right contract opportunities and building meaningful relationships with government takes time and resourcefulness – which is why outsourcing may be a good idea.

At PublicSpend we provide a number of services to meet the needs and resources of small businesses looking to be successful with government contracting at any level of government. If you wish to learn more information, you can contact us at 305-600-4576 and one of our associates will be glad to assist you or answer any questions that you may have.

It’s interesting how much money the government spends contracting with businesses. In 2004, for example, the government spent about $300 billion. With the Recovery Act and stimulus programs this number will likely rise in the next few years.

Additionally, 23% of all federal procurement contracts are supposed to go to small businesses.

As you can see, there’s a lot of opportunity in government contracting today. But it is one thing to want one of these contracts and another to successfully land one.

Here are five steps to landing a government contract:

1. Be prepared: The federal procurement process is not an easy process to navigate. The first thing to understand is that federal procurement has its own unique set of rules and regulations which you must learn, called the Federal Acquisition Regulations (FAR). Under the FAR, selling to the government is not simply a matter of offering a fair price for good products to the right person. Instead, the government acquisition process is an animal unto itself, likely consisting of competitive (or sealed) bidding, among other buying procedures. So you need to learn about this process in considerable detail.

It is also a good idea to study the agency you may be targeting, and figure out how your product or service might fit into its needs. Realize that the agency will look critically at your business, especially your financial status, staffing, history and track record.

2. Select a niche: Government agencies are required to meet various small business procurement objectives. For instance, an agency may be looking to contract with a minority-owned business to help it meet its federally-mandated goals. Note, however, that any small business can bid on government contracts, but the ones below are given a special leg-up. They are:

* Women-owned businesses: A woman-owned business is one that is owned and controlled 51% or more by a woman or women.

* A small disadvantaged business: A small disadvantaged business is one that is 51% or more owned, controlled and operated by a person who is socially and economically disadvantaged. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to meet this standard. Other entrepreneurs can qualify by showing, via a “preponderance of the evidence,” that they are disadvantaged.

* A veteran-owned business: This is a business that is owned 51% by a veteran.

* A service-disabled veteran-owned business: This business is owned 51% by one or more service-disabled veterans. The Veterans Administration confirms the disability.

3. Set up a CCR profile: To bid on government contracts, you need to register with the Central Contractor Registry (CCR). To register, you prepare a profile of your business explaining what it is you offer and what makes you unique. This “elevator pitch” needs to sell you in a short amount of time, so make it concise (and be sure to mention your website).

4. Locate relevant contracting opportunities: For many small businesses, this is the hard part, but I have two great tips to make the search easier. First, contact the small-business liaison within each agency; each has one. If you meet with the agency’s small business specialist, understand that he or she is not the buyer but rather, a person who will point you in the right direction.

Second, consider attending a “Business Matchmaking” event. Business Matchmaking is a United States Small Business Administration program that is sort of like speed dating; it is a place where small business can have quick get-to-know-you meetings with government and corporate procurement officers.

Business Matchmaking is the brainstorm of Hector Barreto, the administrator of the SBA who recently resigned. According to Barreto, traditionally most of these government contracts went to small businesses “inside the beltway” (in and near Washington, D.C.) Barreto figured that other small business people around the country might like to earn some of these contracts, so he teamed up with Hewlett Packard and created Business Matchmaking, a sort of traveling road show of procurement opportunities.

5. Sell: In the end, it is still business we are talking about. The steps above will get you in front of the right government contact with a possible contract, but then it is up to you to create rapport, explain why your business is better and different, and get them excited about what you have to offer.

Beginning September, 14 2009 the General Services Administration (who administer gsa schedule contracts) will put into place the Mentor-Protégé program to broaden the number of small businesses that are awarded contracts. The goal of the program is to help small businesses gain a foothold in the federal marketplace and foster long-term relationships between small and large companies, which typically hold valuable contracts.

If you are a small business with little or no government contract experience I highly recommend looking into the Mentor-Protégé program. Under this program small businesses can become protégés and receive assistance in their development as federal contractors. “Mentors” are typically established large companies with considerable experience in government contracting that can offer business guidance. Small businesses may also have the opportunity to mentor other small businesses.

I truly believe similar to obtaining a government certification (e.g., DBE) the Mentor-Protégé program will provide the kind of leverage that small businesses need to successfully enter the federal marketplace. Government typically continues to do business with large companies that they know and trust. Small companies can network and partner with these companies and take advantage of opportunities that will help them get ahead.

GSA expects the program to increase the overall number of small businesses receiving GSA contracts and subcontracts. However, GSA won’t measure the program’s success on the basis of awards and dollars alone. Officials plan to consider success as an increase in the number and value of subcontracts awarded to protégé companies by mentors. They also want to see expanded expertise by the protégé firms by seeing them enter industries that have they have not traditionally worked in.

To encourage companies to become mentors, the program allows contracting officers to look more favorably at bids from mentor/protégés. They can consider prime contractors’ compliance with its subcontracting plans as a factor in evaluating the company’s past performance.

For more information on the Mentor Protégé program go to the official site.

Please feel free to provide comments below regarding how useful you think this program will be for small business.