While you likely have experience preparing proposals and setting work orders for potential private sector clients little can prepare you for the unique process for proposal of preparing a government contract. In fact, filling out a bid or bid for a government agency can be more like filing your corporate taxes or a stack of forms for the DMV.
Still, as long as you stay within the confines of agency formats and expectations, there are plenty of ways to share your unique value and make your business shine on the pages of your offering.
Understand nature of the appeal.
There are a few different avenues government agencies use to solicit suggestions from potential government contractors, and not surprisingly each comes with its own jargon, acronym, and summary of documents. But the type of application used for a given contract says a lot about what the agency expects from your offer, so it’s important to understand the difference.
The following are the three main types of requests you will most likely see on SAM.gov or any other list of government contracting opportunities:
- Request for Quotation (RFQ)
A Request for Quotation is the simplified procurement process typically used by government agencies for contracts under 150,000 $. Although this is considered streamlined by government standards, you may still find it more complicated than other work proposals your company has completed for private entities. Check the SAM.gov database for previous RFQs to better understand how to successfully complete an RFQ for a company in your industry.
- Request for Proposal (RFP)
Requests for Proposal apply to larger negotiated procurements, meaning they allow the government agency and the prospective supplier to set mutually agreed prices and terms.
The process begins when a government agency issues a RFP outlining the contract requirements, expected terms and conditions, and the information needed by applicants as part of the proposal. Complete and accurate information is key to responding to an RFP. So if you are unsure how to respond to specific provisions in an RFP, ask the contract officer for clarification before submitting your proposal.
- Invitation for Bid (IFB)
Invitation for Bid refer to closed solicitation procedures for public procurement, i.e. there are no negotiations between the authority and the supplier. Qualified bidders.
Due to the closed and final nature of the bidding process, responding to an IFB may be the case when you should be extra careful when filling out your paperwork and when setting your prices for the first time. There is no opportunity for discussion or changes. So if you overbid or omit important information, the agency will almost certainly reject your offer in favor of another candidate.
- Follow the right contract format
Regardless of the type, all bids share the expectation that potential contractors will follow a specific format. Success in getting government contracts has a lot to do with your ability to keep going directions in the submission process and format as it does with the content of your proposal. Therefore, please be sure to follow all schedules and forms within the application in the exact order and structure. , and desired term.
SBA’s free online “Government Contracting 101” course is an excellent resource for an in-depth understanding of the purpose, forms, and expectations of each of the 10 sections within the unified contract form.
- Set your bid appropriately
Federal contractors are expected to ensure that government agency supplies and services are purchased at fair and reasonable prices and to conduct a significant amount of market research to understand typical prices before submitting a request for quotation. At the same time, most applications will be met with a competitive number of offers, giving you, as an entrepreneur, the task of making a competitive offer while adequately maximizing your earning potential.
As you can imagine, getting the contract price right is critical to your ability to win profitable government contracts. You need to consider your costs in both quoting and contract fulfillment while leaving enough wiggle room for ongoing overheads.
When bidding, remember that buyers are not necessarily looking for the lowest price, they are looking for the best value, taking all factors into account. Look for ways to add value to your offering without increasing overhead to maximize your company’s desirability as the best value offering.
Related Questions
- How do I qualify as a small business for government procurement?
To be eligible for government contracts, the Dimensional Standards of Business Administration must be met. Typically, a small business (non-manufacturing) produces less than 7.5 million per year and has less than 500 employees.
- Where can I find government contracts for small businesses?
Good luck finding government contracts for small businesses on SAM.gov. You can also partner with price or market comparison services directly with agencies.
3. What types of companies get government contracts?
All types of businesses are eligible for government procurement, including small businesses.
4. How do I start a small government contracting business?
You must first incorporate and register your business, apply for a DUNS number, find your business’s NAICS code, register with the tender management system, and then search for government contracts to bid on.
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