All About Government Contracts
Government contracts are agreements between the federal government or one of its agencies and a business, usually for the provision of goods, services, or both. These contracts govern the conduct of the government and the contractor and set out the terms of their agreements.
With billions of dollars spent each year by federal agencies on goods and services, the opportunities presented by government contracts are significant. Businesses can consider these to be opportunities to bring in work on an even more significant level than those found elsewhere in the private sector .
Because government agencies must publish their contracts, even those that are not publicly available, it is possible for businesses to browse existing opportunities and find new markets. Additionally, many states and municipalities publish their request for proposals, and manufacturers and distributors may be able to sell goods to local governments.
With information on available bids, bid dates, solicitations and contact information readily available, a business can effectively tap into another lucrative source of income. Winning government contracts means securing significant new work and the opportunity to take on large projects.
What You Need in a Government Contract Proposal
While every Request for Proposals (RFP) is different, most government contract proposals have five essential components. The federal government uses these components to determine whether the contractor passed technical and past performance requirements. So, the two most important components of a government contract proposal generally are the technical proposal and past performance. Only after passing these requirements, the government will evaluate price. Hence, you should put the most emphasis on a winning technical proposal and past performance.
Executive Summary – A persuasive executive summary is important for small businesses that lack the most recent experience performing the same or similar work. The executive summary is your chance to market your company’s solutions to the government. Keep everything in the executive summary short and to the point. Moreover, avoid repeating technical details elsewhere in the RFP. In addition, include information that establishes your credibility and capability to perform the contract.
Technical Proposal – The main component of the proposal is the technical section. It should include all legal and technical requirements set forth in the RFP. If the RFP instructs the offeror to use a mandatory format, then what you write should adhere to the format. The technical proposal also includes detailed personnel plans and budget information. Remember to link each section of your technical proposal to the evaluation factors listed in the RFP. Be sure that the readers can easily find and refer to those sections. And, be sure to write in a style that is easily readable by the evaluators.
Past Performance – Past performance provides a prime metric for the government to rate the performance of contractors. That is why small businesses should understand what exactly is past performance and how it is evaluated. In the past, the government generally used references to determine whether a contractor’s past performance was satisfactory or unsatisfactory. However, under the Federal Acquisition Regulation (FAR), the government replaced the experience rating system with a more integrated method.
Proposed Pricing – The government prefers that contractors use a commercial pricing structure in their bids. While government pricing may be beneficial for public safety or other unique government services, most contractors prefer the smart business option, which is the commercial option. Some government contracts require a Specific, Measurable, Attainable, Realistic, Time Bound (SMART) pricing proposal.
Writing an Effective Proposal
The first rule of writing a proposal for government work is to abide by its rules regarding page limits and fonts. For many contracts, the Government will specify the font, font size, spacing, and margins that you must use in your proposal. Follow these directions exactly, and do not try to sneak in extra pages with additional information that you feel is critical to your proposal. The Government reviewers will notice, and you will appear to be untrustworthy. Moreover, you will be undercutting the work of all of your competitors who took the time to follow the rules.
When it comes time to write your proposal, always start with an outline. Review all of the requirements in the solicitation, and make sure that your proposal addresses each and every one. If there are mandatory requirements that will be difficult for you to meet, note them, and indicate "alternate approaches" in your proposal. Do not, however, take it upon yourself to provide a significantly different type of contract than what is requested in the request for proposal.
As you are writing the proposal, refer back to the solicitation continually, and keep track of the specific sections of the solicitation that you are addressing. Finally, when you have completed your proposal, go back through and ensure that you have addressed every requirement. In particular, have you used the same language to describe your capabilities as the language of the solicitation? Have you provided clear and concise information regarding how you plan to address the requirements of the statement of work?
Common Pitfalls in Government Proposals
At a high level, many businesses don’t have a clear and concise business strategy for responding to government solicitations. They may not have an established protocol for deciding whether a particular opportunity is a good fit for them, what their strengths are at the time, or whether they have the bandwidth to respond to yet another proposal request. Businesses also sometimes rush through the evaluation process without clearly thinking about potential conflicts of interest that may be presented by a solicitation. For example, some businesses submit proposal bids for contracts with their current clients, not always realizing that there are likely already contractual terms in place regarding confidentiality and the protection of a client’s intellectual property that need to be viewed in advance of submitting a proposal bid. Other times, businesses assume that even if they haven’t captured the details of their work in a proposal bid, that if they have a long history and a good relationship with a government customer, then they will be awarded a contract. This is a common misconception and unfortunately, it’s not always possible to overcome a poorly prepared proposal bid. Other common mistakes businesses can make when preparing a government proposal include: In addition to these mistakes, many businesses are unaware of the length of time it takes to plan, write, edit and review a government contract proposal. There is a tendency to think that if the proposal is to an existing client or a loyal customer, that the proposal can be rushed and shorter in terms of its length. However, many times, when government clients publish requests for proposals they are getting bids from multiple companies and they cannot assume that the same clients are looking at the same work from a similar perspective. Even if you don’t think so, your government client may not be familiar with all of the details of your prior projects.
Using a Proposal Sample PDF
Proposal samples in the form of PDF documents are an important resource in crafting a winning government contract proposal. Unfortunately, it’s all too easy for a proposal to fall short of government standards. Proposals meet with potential rejection for multiple reasons, not the least of which is sloppy writing. When you turn to sample proposals, you will find that some are tailored to specific projects, while others provide a basic structural framework for a proposal. In either case, your use of these documents is as a guide, so that you are not drafting content in a vacuum. Use a proposal sample PDF with special attention to formatting issues, language, and strategic placement of content. A proposal sample can be a valuable tool to ensure that an RFP requirements, including page and word count demands, are met. The basic structure of your proposal should adhere to the requirements of the RFP, but a sample proposal can show you how to structure content, as well as where to introduce certain points. For example , your proposal needs to demonstrate that your business has the capacity to perform contract requirements. You may decide that you want to demonstrate your proficiency in the early pages of the proposal to show reviewers that you have the foundation at the outset. A proposal sample can also show you how to introduce the business solutions you are offering. Remember that the requirements of the RFP are going to dictate your content, but you never want to simply regurgitate requirements back to the reviewer. Use a proposal sample as a reference point to also provide your perspective on the challenges of the RFP you are addressing. A proposal sample PDF can be an invaluable tool for referencing how to use visuals, like charts and graphs, to cover complex ideas in your proposal. Many of the requirements in a government RFP may be better addressed in a graphical form than with a lengthy description. You can use a proposal sample to see how to use visuals or, conversely, how not to use them.
Legal Aspects of Government Contracting
Government contracts are governed by a web of federal regulations, some of which are very stringent, and the compliance with which can make or break your government contract proposal. These include rules that deal with the size of the business, the cost of the project, labor laws, and many other considerations. In order to have any chance at winning a government contract, your proposal must be 100% in compliance with all applicable federal regulations. Any misrepresentation or omission could easily cost you the contract.
It is very important, prior to even beginning work on your government contract proposal, to look yourself in the mirror and ask whether there are any ethical issues that you should be concerned with. The government takes its ethics very seriously and has many times sought civil and criminal repercussions for government procurement fraud. Some things to consider include whether there are any conflicts of interest with any government employees, whether they can socially interact with your business, and whether you have any financial or material relationships with government officials.
On top of all regulations and ethics, you have a host of obligations during the proposal preparation and submission process. These can include keeping your proposal secret, non-disclosure agreements, export control regulations that mandate how to handle export-controlled data, privacy rules, and Document Retention Standards.
Government Contract Finding Resources
Several resources are available for businesses seeking government contract opportunities. The primary resource for federal contract solicitations is SAM.gov (the System for Award Management). There, contractors can find opportunities on a rolling basis, including for both federal acquisitions and grants. This is also where contractors register for a D-U-N-S Number and a Central Contractor Registration (CCR). A number previously required by the government, a D-U-N-S number is a nine-digit identification number for businesses. Obtaining a D-U-N-S number and registering with the CCR is a prerequisite for contracting with the federal government. When the SAM went online in July 2012, it replaced the CCR, Online Representation and Certification Application, and Excluded Parties List System (EPLS) .
State governments post contract opportunities on their own websites. Some states use the same web-based tools for state government contracts that the federal government uses for federal government procurements. The Texas Site Selection Center, for example, uses the same ConvergePoint software for its Texan Supplier Portal that the federal government uses for the SAM. Many others, however, have their own proprietary software for maintaining contract information and facilitating procurement. Several of these websites are linked below. Solicitation for Texas government contracts can be found here. Contracts for New York, Pennsylvania, and Michigan can be found here, here, and here, respectively. For California contracts, there are bid opportunities here.