Government Contracting Best Practices

BEST PRACTICES IN GOVERNMENT CONTRACTING

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KNOW YOUR MARKET

The public sector can seem daunting, with lots of hoops to jump through.

Each of the states, cities, counties, school districts, etc., has its own way of doing business.

Conversely, there’s more transparency there than in any other market.– Whom the agencies worked with– What they bought– How much they paid for it– All of this information is in the

public domain.

3

KNOW YOUR SALES CYCLE

Government agencies are some of the most reliable customers out there.

They’re not going to skip town and not pay their bills.

However, it can take longer to receive payment for government work — sometimes up to 30 to 45 days after the work is completed.

Make sure you have the cost structure and budget planning to allow you to pay your bills while you wait for them to pay theirs.

4

TYPICAL PROCUREMENT PROCESS

Where do I spend my time building relationships?

Agency Procurement Office

Conducts Competitiv

eBid/RFP Process

Public Works

Health

Dept

Police Dept

Procurement Request

Procurement R

equest

City Council

Seek Approval of Award

Procurement Request

Authorize Award

5

BUILD PRE-RFP RELATIONSHIPS

To be competitive, you need to establish relationships with state, local and federal agencies before projects are announced and RFPs are released.

They can’t buy from you if they don’t know you.

Focused messages get better results.

- In email marketing, it generally takes 4-6 emails before you get a response

If you can’t supply product across the country or cross-state, focus your message on the geography you can serve.

6

BUILD PRE-RFP RELATIONSHIPS

You need to consider EVERY public sector person as a viable contact for you.– Every purchasing agent on every public bid is a potential buyer that you

can work with.─ Who are the decision makers that influence the purchase of YOUR

products e.g., police chiefs, IT directors, school superintendents?

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BUILD PRE-RFP RELATIONSHIPS

PURCHASING OFFICERS

Procurement Offices– Differentiate government from the private sector– Can do all the buying for an agency– Procurement staff will have their names on a bid or RFP

• Typically the only person a vendor can contact while in the bid/RFP process• Often generalists, sometimes they specialize

DECISION MAKERS AND INFLUENCERS

Department Offices– Typically decide what to purchase, then pass along to procurement

8

FIND LEADS WITHIN ‘TRIGGER EVENTS’

Major projects seemingly unrelated to what you sell can contain lucrative opportunities for subcontracting and partnerships.

Look for RFPs that seek providers for a wide variety of products and services, such as those associated with the construction of a new school or police facility.

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FIND LEADS WITHIN ‘TRIGGER EVENTS’

Search the RFP documents for mentions of your product or service and find out how much has been budgeted for it.

10

USE SPENDING PLANS TO ‘GET IN EARLY’

With agencies’ capital improvement plans and annual budgets, you can…

Identify projects years in advance of bids and RFPs

Build a sales pipeline of future business

Research and target the agencies that will be buying the products or services you sell.

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SPENDING PLAN AND BUDGET REALITIESThey aren’t like bids and RFPs (i.e., they require interpretation).

They require more time to review and analyze.

They require action (i.e., you need to contact the agency).

They’re the only way to see what projects will be implemented in future years.

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VALIDATE UPCOMING PURCHASES

What’s being purchased?

When will the project occur?

How much will it cost?

How will it be funded?

Who at the agency is responsible for the purchase?

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NEXT STEPS TO TAKE

Research spending plans based on the agencies you want to do business with and the upcoming projects that may involve your product.

Download the plans and validate the opportunities using the details pages (example at right) for your product.

Contact the agencies to schedule calls or meetings.

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THANK YOU!

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