The WHAT
The federal government buys everything from armored vehicles to shoes, pens, and pencils. In addition to the goods, they also purchase services ranging from IT to HVAC and construction. The key component of your bid is having a solution that suits the government’s needs and budget.
The WHO
There are typically multiple players involved in the purchase process. For example, the Program Manager and the Contracting Officer (those who register and authorize purchases).
The WHERE
While Washington, DC is the focal point of the federal government, transactions take place in various government locations around the country and around the world. Such sites may be military bases or field offices for the FBI or the Department of Agriculture. Such information is public, and therefore spending some time building relationships within the local government area will be helpful to your sales process.
The WHEN
The fiscal year of the Federal Government is from 1 October to 31 September. Each agency has publicly available budget data as well as historical purchasing records. Thanks to the use-it-or-loss-it cycle, the fourth quarter of the federal government sees significant purchasing spikes. The 1st quarter can be slow due to the approval of the budgets (“Continuing Resolution”).
The HOW
The state has been a slow purchaser, appearing to be risk-averse. Anything you can do to make it easier for them to shop will make them more likely to buy from you. The government may buy p-cards (procurement cards), most of which have a spending limit of $3k. They can purchase directly from you through the competitive bidding program, the sole procurement of your solution, and/or through contract vehicles such as the GSA Schedule, the VA Schedule, etc. These contract vehicles typically complete the verification process and set up the “best” price in advance, thereby reducing paperwork and time on the buyer’s side.
The WHY
The government appears to be reactive rather than proactive. Most of what they buy is in response to a disaster or a sudden need, and these are usually high-dollar transactions. For example, in reaction to 9/11, the government’s procurement of security systems–products and services–has increased exponentially. Many organizations have a website detailing their mission. Using the available data to perform research and understand your client would allow you to make your marketing pitch more effective and personalized to your needs.
In addition, the Small Business Administration has set targets for contracts. At the end of the fiscal year, they set rates and distribute grades to each organization on the basis of achieving (or not) those objectives. Such goals can vary from awarding contracts to female-owned companies, HUB-zone firms, veteran-owned, disabled, 8a, etc. You can use grades to assess which company received poor marks and, and if your company carries any of these formal designations, you will become more appealing to the buyer.
Resources Available
Different resources are available for purchase (from B2G-specialized commercial companies) and for free (government websites). Carroll Publishing, FedSources, Deltek, and Leadership Directories are examples of commercial companies. Information aggregators provide a sales list of government customers, as well as some value-added data on recruitment and department intel. FedBizOps and FPDS are examples of government websites containing information on applications and budgets, past and future. PTAC offices are also open and useful to those who are just starting up in the B2 G market.
This blog was written by Linda Rawson, who is the founder of DynaGrace Enterprises (dynagrace.com) and the inventor of WeatherEgg (weatheregg.com). She, along with her daughter, Jennifer Remund make up the mother-daughter duo of 2BizChicks (2Bizchicks.com). For further information, please connect with Linda on LinkedIn, or contact her at (800) 676-0058 ext 101.
Please reach out to us at GovCon-Biz should you have any questions.
