04/ 21/ 2004
by Charles R. McConnell
As many in small business are aware, the Fiscal 2004 Omnibus Spending Bill included a provision enabling small businesses to finally compete fairly with Federal Prison Industries (FPI). No longer -- at least until Sep. 30, 2004 -- are federal agencies required to give FPI first crack at all contracts, leaving only what FPI chooses to bypass for others to bid on. And because September 30 is less than six months away, NFIB and other interested parties are hard at work trying to get this long overdue change made permanent.
Although temporary, the recently passed measure takes small business one important step closer to free market competition. Although a significant barrier has been lifted and the field is now more open than ever before, success at securing contracts is not a given. It's still critical to know about the agencies you want to deal with, how to give them what they want and how to be thorough and meticulous in preparing and submitting your bids.
You can learn what opportunities are out there -- which agencies want to contract for what -- by requesting an Information for Bid (IFB). You can learn about upcoming IFBs through the FedBizOpps System (www.fedbizopps.gov). Or perhaps you are already on someone's list of potential bidders and find yourself in receipt of a Request for Proposal (RFP). Either the IFB or the RFP will describe opportunities available and instruct you on how to proceed in responding.
If you've done little or no business with government agencies, a good place to begin is by studying the Federal Acquisition Regulations (FAR) available from www.arnet.gov/. The FAR is the principal regulation that most federal agencies follow when buying products and services.
Before you consider bidding, however, do some careful soul-searching and define your company's expertise. Don't attempt to react to everything or anything somehow related to your activities. Rather, specialize in what you do best and stick with it. Keep in mind also that quality may have a strong role in any given opportunity; the agencies that are buying are seeking the best value for their money, not necessarily the lowest cost.
Before bidding, study the solicitation carefully and make certain you can fill the requirements. Don't proceed if there are doubts. A bid can't be approached casually -- as unfortunately, more than just a few have been -- by someone whose attitude is, "If I get the contract, then I'll figure out how to do it." Rather, be absolutely certain you can deliver before offering yourself as a supplier. If you fail to deliver completely as agreed on a contract, chances are you won't get a second shot at the same agency.
To give yourself the best chance of connecting with an agency for a contract:
- Review the IFB or RFP carefully. Plan on complying fully with all detailed requirements. Ensure accuracy throughout; a fair number of proposals are automatically rejected for being incomplete or unsigned.
- Give yourself enough time to be thorough in preparing your proposal. The creation of a detailed proposal can't be rushed.
- Make certain you understand everything the IFB or RFP is asking for. If you have questions, address them with the agency's contact person (who is usually identified in the request document).
- Acquire all specifications and standards that are cited in the requesting document and make certain you understand them.
- Develop a realistic work plan and delivery schedule. Try for efficiency, but don't commit to a timetable that leaves no room for contingencies.
- Develop your cost estimates, being realistic but also keeping in mind that the contracting agency will be looking for "reasonable" costs. Review these estimates carefully.
- Supply other information about the company and its personnel as requested.
If you have had little or no experience with government contracts, keep in mind that you might replicate this process several times over in the future. To generate future proposals easier and faster, use your first few times preparing a proposal to aid in developing future proposals.
You could, for example:
- Establish a format for a work plan and delivery schedule.
- Likewise develop a format for creating a cost estimate, a kind of fill-in-the-blanks process that ensures all the right elements are addressed.
- Create a section of "boilerplate" text to convey information about the company and its personnel, likely to be identical or at least similar from one proposal to the next.
- And commit to writing a step-by-step procedure for moving the entire process from receipt of the IFB or RFP to submission of the finished proposal.
