Influencing The Scope
Influencing the Grading
Positioning Your Company with the RIGHT People – People That Buy.
This session examined the buyers, especially contracting officers that are so important this time of year. Understand their importance, how they make decisions, their buying motives and what they need from you so you can win. Look at your market and the resources you need to be able to effectively reach key decision makers so they remember you when the time comes to purchase products or services that you sell.
Last Friday, a storm blew through Maryland with 80 mile an hour winds and several inches of rain. Unlike any storm I have seen, the lighting was almost constant and the trees were being bent and twisted so much so that we lost several stout oak trees and branches were strewn all over the place. At about 11PM last Friday the power went down. The next day we saw the damage and it looked like a warzone. We have 5 poles down in different places so we can probably expect another several days of running on generator power just to keep the freezer cold.
Governor O’Malley has requested federal assistance for this event. This is a step short of Katrina where FEMA (Federal Emergency Management Administration) was called in to help with the emergency. Now, FEMA is an interesting agency. They spend money quickly with pre-registered companies that provide specific services.
Registering your company is important because FEMA responds to emergencies like hurricanes, tornadoes, floods and other natural and man-made disasters. If your company is known before the event happens, you will be in position to jump on an opportunity when the federal government is called on for disaster relief.
Pre-disaster registration is mandatory. Just as important is pre-marketing your product and service offerings to buyers. isiFederal can help you find and reach key decision makers before they start spending the money. Companies that are known before the opportunity is posted are 5 times more likely to win.
By the way…
FEMA is an agency just like other agencies. FEMA’s published opportunities can be found at “New and Existing” but don’t stop there. FEMA is a DHS agency so there are many opportunities within DHS for you as well. Visit for details on doing business with DHS where you will find a link to the DHS forecast for DHS and all the sub agencies.
No matter what the federal budgeteers are doing, a lot of money will be spent in the next 90 days. In fact, almost 20% of federal spendng will occur in 1 month – September. That is nearly $100 Billion – all in a single month.
Why does this happen?
The federal budget is allocated and implemented (theoretically) each October 1st. I say theoretically because it is often several months after October 1 when congress actually approves the budget for the current fiscal year. This causes continuing resolutions (CR) as they work through the politics of spending. That being said, the nearly $500 Billion dollar budget eventually is approved. All of that money must be spent within the federal fiscal year which ends on September 30th. Now, 3-4 months of the year the agencies are running on CR so they are generally spending on existing contractual obligations and even then the money slows because they are not sure when money will be allocated. Once the budget is approved, the agencies now know they can spend money again but it is often February or March before the money is allocated and new contracts are funded.
The next several months they are working at a relatively normal pace. In June they start planning for the next fiscal year and by July, they are working through the details of what major expenditures they will have for the next year. In August they are submitting their requests. At the same time, the agency CFO’s are reviewing existing spending and finding areas where they have not spent the allocated money for the current fiscal year.
Memos go out to all department heads and everyone begins to scramble to find money that has not been spent. Money may exist from a current obligation, or for a contract that was suspended, revoked or cancelled. Maybe there was an initiative that was funded but challenged politically and the funds were held in limbo. Whatever the case, the agency MUST find a way to spend that money this year or it will lose those funds. Moreover, those unspent funds will also automatically reduce the budgetary allocations for that agency for the following year- before any budget cuts are imposed.
Result: The agency loses the money twice.
This is compounded because power in Washington is tied to budget. The more budget you have, the more powerful you are.
Result: Nobody wants to lose power so they spend every dime.
This is why September is a frenzy. Everybody is trying to spend every dime. In order to get some of those dollars, you MUST be in front of decision makers before August 15th. Why? Because they start to become un-reachable as the deadline approaches. By September 15th, they are almost completely buried by the events of the day and procurement is working 60-80 hours per week.
Once you have an understanding of where the money is and who is spending it, you can go through the process of establishing your plan for gaining access to those opportunities. Here are the primary components of a working federal plan…
Dedicate the internal resources to deal exclusively with the government sector
In order for your federal strategy to work, you will need to apply resources to the effort. It usually doesn’t work to have someone on your team pulled between commercial and federal opportunities. Human nature is that people gravitate toward what they know. So, if your rep doesn’t know and appreciate government procurement, they will gravitate back to commercial work every time. Another reason why companies fail in the federal sector is they take an average (or below average) rep and apply them to their federal pursuit. This increases the likelihood of failure for obvious reasons. First, it never makes sense to take a good rep off making money for your company.
Create (and fund) your budget for marketing.
There are many companies, databases, marketing books and search engines that claim they drive sales through a listing – not usually. Most people prefer to buy a product or service from someone you have met and like and rarely choose a point and click source – even for commoditized products or services.
Create Government Centric Marketing Materials.
This is critical and important for many reasons, not the least of which is the fact that procurement folks use your marketing information to determine if you know how to do business with them. If your materials are full of “business terms” like “customers”, “profit”, “savings”, “bottom line” etc., you are likely to be rejected.
Develop Capabilities Statement.
A big part of your marketing will be a concise capabilities statement that clearly shows your contract vehicles, core competencies, past performance and reference projects. It is always good to have a working document that can be maintained and edited based on the audience.
Develop a One Page Slick
From the information on your capabilities statement, it is important to have a condensed one page version that provides an overview that is easy to read and understand.
Get Smart About Your Target Market
The federal government is huge. Before you take a step in any direction, take a look at each agency that you are interested in working with and segment that market for “best possible customer.” This will decrease your sales cycle time and increase your likelihood of success.
Create, assign or hire your Federal Sales manager/VP and assign resources
Someone has to manage your federal strategy. While your VP of sales/Sales Manager should be in the loop, he or she will be just like a sales rep and gravitate towards what they know and what is easy.
Doing business with the federal government requires a contract vehicle. There are many types of federal contracting vehicles for may purposes. For examples of different types of vehicles, visit our friends at SAIC.
GSA (General Services Administration) assists with procurement work for other government agencies. As part of this effort, it maintains the large GSA Schedule, which other agencies can use to buy goods and services. The GSA Schedule can be thought of as a collection of pre-negotiated contracts. Procurement managers from government agencies can view these agreements and make purchases from the GSA Schedule knowing that all legal obligations have been taken care of by GSA. This makes purchasing easier for contracting officers and is in line with the streamlining efforts put forth by the Whitehouse.
Schedule development is a time consuming task. Visit GSA for more information. The concept behind the GSA schedule is to find products and services, negotiate best pricing and provide the resource to “customers” (agencies) in the federal government.
isiFederal will assist you in developing your schedule and more importantly, negotiating with GSA to maximize your profitability. Click to download a list of GSA Schedules.
This process takes approximately 6 months to accomplish and we guarantee to work until you get on a schedule. Pricing for schedule development varies by product and service offerings. While the GSA schedule development is part of the isiFederal Turn-Key Business Development process, at the minimum we recommend that you perform a primary cometitive analysis before entering into the GSA process to get an understanding of which of your competitors is winning and why.
Contracting officers are busy people. One thing all procurement people look for is an easy way to fulfill the obligations of the contract. If you don’t have a contract vehicle, that means a ton of work for the contracting officer. There are exceptions to this rule like an emergency contract or sole source for a unique offering but most of the time contracting officers will make it difficult to move through procurement, even if you have a strong relationship with an advocate. Read more
The federal government provides us with a great opportunity to understand why we didn’t win a contract. It’s called a Formal Debrief. Not only will you receive valuable insight into what you might have missed, if you are willing to listen, you will also be provided with inside information regarding the internal processes of both the agency and the contracting office. This is a rare opportunity to have interaction with a contracting officer that you have never met – and this can be extremely valuable.
Next time you lose, you have a choice of debrief by meeting, phone or writing so if at all possible, ask for a formal debrief in person. Anyone who has ever seen the movie “Hitch” will appreciate the significance of effective communication and being face to face is by far the most valuable. 93% of all communication is non-verbal, that means tone, body language and phrasing makes up the vast majority of what we receive from people when we communicate.
Contracting officers are always braced for hot headed, argument ready poor loosers that would love to meet them in the parking lot. So, instead of going in to argue how stupid they are for choosing someone else, reframe your mindset and go in as if this is a sales call – for the next opportunity. Be respectful, open and have a significant desire to understand his or her point of view. Ask open ended questions that provide opportunities for the contracting officer to provide additional information and watch their eyes for the “read between the lines” clues that they give you.
This past week I was in DC for a formal debrief with a contracting officer and a client on the phone. During the first 30 minutes, it was all business, straight forward by the book. If I wasn’t there in person, we would have missed some of the most important hints in body language and leading. More importantly though is what happened after our client said goodbye. The next 45 minutes was spent talking and getting to know each other better and building a relationship.
It was important because I knew that we were likely going to protest the award and as a result, potentially really irritate the contracting officer. For isiFederal and our client, it was very valuable and I appreciate the opportunity every time I can get it. No matter what, we have an advantage next time because the contracting officer knows who we are and that we respect them for what they do.
Isn’t that what everyone wants? To be respected, valued and accepted? You bet it is and next time you have the opportunity, use it to your advantage to build a new relationship with someone who can definitely help you in the future.
Excerpted from Doing Business with the Government Handbook by Dave Lowe
A friend of mine was asking how we can get an idea of what is coming down the pike for opportunities with the federal government, so I decided to post these for everyone. While the best way to know what is coming is to have a relationship with contracting officers and program managers, the agencies do list forecasts and some of them can be very helpful. We update these regularly and links do change so be sure to check back from time to time.
Ever gotten an e-mail response back like this one?
“Thanks for the information. I wish that I had known about this company last month, I just awarded a ARRA GSA Delivery order for 2.15 Million documents.
It's good to see that there is another small business listed on the GSA schedule for this type of work. I will definitely keep you in mind, as I had limited response on the initial posting on FBO.
One question back to you. Does this company do any programming work, I have a requirement that will come out soon working with "Dashboards" to track our progress with meeting the SBA requirements. If the do I would be interested to see what they can provide.
Thank you much
U.S. Army Corps of Engineers”
The fact is, I only spoke to this person once over 10 months ago and I missed getting him on my ping list – I dropped the ball. Sometimes we feel like we can’t reach out because they won’t remember or they are too busy. The answer: Do it anyway. When I found his information earlier today, I shot him an e-mail with an introduction and this was the result. Ouch!
There is another story to this e-mail… Notice that there was “limited response to the listing in FBO.” This was in Alaska, so the competition was greatly reduced. Had I had him on my ping list, he would have remembered me and we would have had a great opportunity at a win. Ouch again!
Did I lose out? Sure we lost on one opportunity but remember, contracting officers buy EVERYTHING. Even though I missed, I have a new opportunity because I hit on two potential opportunity competencies of my client: 1) Records Management and 2) Custom Computer Programming. I will also be dialoguing on other opportunities that will undoubtedly lead to business for other clients who don’t mind doing work in Alaska. Interestingly enough, I spoke with an architectural firm this afternoon from Washington state that wouldn’t mind doing work in Alaska… Hmmmm.
Getting back on track – Remember, when talking to any prospect, ask “how often should I touch base?” because you want to be persistent right up to the line of being a pest (without crossing over). I shared this story because we all make mistakes and drop the ball. When we learn from our mistakes, we can improve and often learn something about ourselves or the situation that we might have missed.
In the process of this improvement, I just discovered Alaska has gold again…
Last week was no April fools. In the first 5 days of the month, 368 contracts were awarded in 47 states for a total of $414,815,821.60 – all under ONE construction NAICS classification 236220.
That is one amazing week.
It was lead by the release of Recovery Act Stimulus funds – but that isn’t the whole story…
$107M went to Tocci/Driscoll Joint Venture with design services provided by Klingstubbins. The project is the Peter W. Rodino Federal Building in Newark, NJ and was a GSA executed contract spending Recovery Act dollars. That same GSA contracting officer is responsible for 318 construction contracts since he started in 2004.
$55 M went to Grundley Construction out of Maryland for 12 different contracts ranging from $196k to $37M.
320 were less than $1M, 236 were less than $100k and eligible for Small Business Set Aside.
208 of these contracts never hit the street for public bidding opportunity.
More Recovery Act projects are scheduled to be released over the next two years in every region – on top of all the construction projects in the planning stages through 2015. There couldn’t be a better time to get in and expand your presence.
Earlier this month USDA announced a joint effort with the Navy to Encourage the Development and Use of Renewable Energy. This is in addition to the USDA announcement of their collaboration with GSA on a $500 Million Recovery Act Modernization Project over seven years that was awarded to SRA International via BPA (Blanket Purchase Agreement). That is $50 Million per year that SRA will be managing for technical improvements and that is the tip of the green iceberg.
OMB (the Whitehouse Office of Management and Budget) has stepped up its support of initiatives established in 2007 for building “sustainability” and enhanced its directives for recycling and energy consumption. This means the government knows it is OK to spend “extra” money to meet these directives. In fact, it is the cover that you need to charge a premium to help agencies meet ‘Green Initiatives”. It doesn’t matter what you produce or sell, make sure that you get “Green” and you are elevating your product or service to a level that makes your contracting officer and the Contracting Officer Technical Representative (COTR) look really good.
On a Business Dev front… How does SRA, a large, non-minority, non veteran owned, no set-aside business win contracts like the one above? They know how to make their contacts in the federal government look good and make it easy for them to choose SRA. Read more about how the big boys operate here but for a quick summary – they have a fully funded business development strategy and a bunch of people building and maintaining relationships with federal decision makers. Most small and medium size businesses cannot deliver on a contract of this size. That means the scope of this project was baked for someone like SRA from the outset and it would take significant teaming arrangement work to even get close to the technical requirements of an RFP like this one. Developing a team to compete on this level is challenging and expensive.
If you want to compete, especially in your “sweet spot” you need to do the same thing. The key is developing relationships and picking the right size opportunities where your involvement can benefit the procurement process. Help your contacts understand what they need to look for in a procurement, this helps them minimize responses (less work for them- less competition for you) and maximizes their ability to have a quality job done (less bad mouthing around the water cooler for them – more profitable work for you).
The first step though is thoroughly understanding where the money is and who is spending it. Contracting officers and their counterparts (Program Managers, Project Managers of COTR’s) are spending money like sailors who haven’t seen a port in years. The best part is they need you to help them get what they want and they do want to know about you (even if they say they don’t). If you don’t have the contacts, we would like to help. If you do have the contacts but don’t have the time, let us help. If you don’t have any idea what to do next, we will get you smart about where the money is and who is spending it.
Holy smokes! If your business is in Maryland and you think you missed the BRAC (Base Realignment and Closure) boat- think again. A friend of mine forwarded the presentation from the GOVCON presentation last week and the numbers are staggering through 2011 and if you read on, you will see why it doesn’t stop there. You can download the presentation here, and here are some highlights…
Total BRAC MILCON Funding for Maryland $1.8B
Aberdeen Proving Ground $579.5M
Andrews Air Force Base $52.0M
National Naval Medical Center $641.4M
Fort Meade $529.5M
This was all planned and funded before the Stimulus. Stimulus funding isn’t hurting the efforts in the region either with over $600 million being awarded to in April alone.
Is this any of this going into your bank account?
It is not too late. Don’t look back at what you should have done two or five years ago, stop watching the action and get in the game NOW. Sure, construction companies that are in the game are reaping a windfall in projects, revenue and profit for Phase I. They will win even more if you stay out as stimulus funds will be flowing through 2013 and regular government spending will continue after that. Remember THIS IS PHASE ONE, there will be MORE.
Message for the Trades…
They will need to maintain, staff, secure and clean these buildings. Contracts are coming over the next two years for all the support trades including landscapers, painters, electricians, plumbers, window washers, security guards and maintenance. Not to mention there are thousands more contracts coming up this year with weak incumbents that your company has a great shot at winning – if you know how to play. Don’t forget about MAC work either, it’s fast pay and if you service it right- recurring business. Many of these jobs never show up on public bid notices so you need to get to know the contracting officers responsible for your services and get in front of them as soon as possible. Read more about knowing your target customer here.
Message to IT & Staffing Companies…
The briefing says “As many as 50 percent of jobs moving to Maryland will be filled by Marylanders” – can you say contractor staffed personnel? Interfaces need to be built, networks need to run, software needs to be bought, installed and maintained, help desks need to be staffed and managed. Billions are spent on bodies all over the world and this is an area where you can grow your regional footprint without leaving the area. How, many decisions for projects originate in DC, you are here and so are a ton of decision makers. There isn’t a better time to get in the game. Check out how SAIC is doing it here.
Message for Suppliers…
The government buys EVERYTHING including pencils and pens, furniture, exercise equipment, phones, calculators, and water hoses. They need wall art, paper, cell phones, filing cabinets, automobiles, logo hats and toilet paper (lots of it). They have green initiatives mandated by the White House OMB (Office of Management and Budget) for light bulbs, power supplies, cleaning supplies and hand towels. Come on, are you going to give out of town competitors free run in Maryland? To see what is happening with Green Initiatives click here.
Shameless plug for No More Excuses…
isiFederal can help you get in the game, know where the money is, who is responsible for spending it and build relationships to get your company positioned for contracts.
It is out there but it won’t just come to you. You have to get in the game and go get it.
Anticipated move in for Aberdeen Phase I is July – December of this year. It takes 6 months to get a GSA schedule so if you don’t have one GET MOVING. If you do, you need us NOW because 80% of GSA schedule holders fail to reach minimum required revenues and lose their contract within two years. Let us help you get smart and strategize to get you positioned for the work. Other companies charge $50,000 a year, you get our intel for a fraction of the cost and for a few dollars more than they charge for intelligence, you get the entire package with feet on the street representation in DC.
We can show you – help you – or do it for you so there are no acceptable excuses for you to stay on the bench. Use us or do it yourself but for the love of keeping the dollars here in Maryland – Stop wishing for yesterday, lace ‘em up and GET IN THE GAME.
What do a Blood Pressure Kiosk, a Lobster Tank and Coca-Cola have in common? They, along with thousands of other purchases, were all executed by the same federal contracting officer.
How do we know this?
It also happens that this same contractor bought Public Relations Services four times in the past year. This is especially important to ConnectUs.net.
Over the past 10 years there were 6,678 contracts for PR services totaling over $1B, is there a market there?
You better believe it.
One contracting officer bought PR services 32 times for over $9.7M and, guess what, 15 went to the same contractor with Time and Materials pricing. The other contracts were split between FOUR other contractors. Only 3 of these contracts were fixed price and all were executed on a task order which means NONE were publicly bid after the initial competition. The largest contract was $2.12M and did not require Small Business, or any other set aside participation.
Does ConnectUs.net want a piece of that work? You better believe they do.
Can you make money in the federal government? You better believe you can. It is incredible what can happen when you have a strategy that works. The beginning of the strategy is by far the most important component and can make or break your efforts.
In the private sector, we call it marketing segmentation: knowing who your best customer is. In the government, you can do the same thing – the magic is in the targeting. There are 80,000 plus contracting officers with purchasing authority to spend hundreds of thousands of dollars. In the case above 1369 bought PR services of some kind or another, 299 bought them more than once in the last year,74 more than four times. Those are the ones you want. They are the gold nuggets. 74 is a quantifiable, manageable number that represent the top 10%. Because they have multiple applications for this service, the likelihood is much greater with these 74 that they will remember who ConnectUs.net is when they make the next purchase of PR services. That, my friend, is the name of the game.
Do you ignore the other 1200 plus contracting officers that, on any given day, may buy what you sell?
No way. But you place them in a different category otherwise you might as Stephen Covey would say “mistake activity for productivity”. We manage many different companies’ federal strategies and we can only do it by properly prioritizing our targets. First we find out know who they are and how they buy.
Imagine isiFederal doing this for you… in two weeks, you will know exactly what your priorities should be.
I was looking through a recent construction association magazine about how bidding competition is off the charts in just about every construction field. Construction companies that were up against 4 or 5 bidders two years ago are now bidding against 25, 30 even 50 competitors today. Some of the construction folks I met with last week are seeing larger competitors try to make up for lost revenues by competing in new or smaller markets.
85% of federal opportunities have less than 4 competitors…
We recently compiled a federal intelligence report for our utility construction client located on the east coast… Over the past two years $3.9 Billion was spent with contractors on various forms of utility construction for the federal government and ¼ of the opportunities had only ONE response. 85% of the 11657 of the contracts awarded had less than 4 responses. That’s $2.7 B in awards that had less than 4 competitors.
Big successes for Small Businesses…
The largest “Small Business” contract discovered through intelligence was awarded in November of 2009 for a water and sewer project in New Orleans. The contract was won by Pennsylvania’s DV & Associates $31,186,659.20 and – get this – they are being paid in progress payments for percentage of completion. This helps offset bonding requirements and keep cash flow high. Even in this opportunity – only 9 offers were received.
Road and Roof Construction from Virginia landed over $25M in bite size chunks averaging $46k per job. TP Enterprises, Inc from Oklahoma won $14.5M, Sabre Communications Corp out of Iowa banked over $4.2M and has seven more zero dollar contracts that will help them minimize their competition over the next several years. This is great work at a great time and with minimal competition, is absolutely winnable.
More information from this Construction Intelligence:
Federal spending spikes 350% in September
Average contract size for utility work $413k
395 contracts for $321M were solicited to Small Businesses and No Responses were received
1569 contracts for $228M were solicited to Disadvantaged Businesses and No responses
1308 contracts for $556M were not solicited to Small Disadvantaged Business because the contracting officer didn’t know of one.
Dispelling the Federal Myth…
True, the federal space is confusing and time consuming. That is no different than when you got into business in the first place. There are three things you need to make your federal strategy successful:
1) If you rethink your timetable for return on investment. Turn your 1 year goal into a 3 year goal.
2) Find out what works. If other companies in your space are doing it, you can too. Learn how they are doing it and do what they do.
3) Build relationships with the right people. People buy from people, even in the government, and relationships trump check boxes every single time. That is how the big boys win and how the small businesses explode. Triple Canopy started in 2003 and have since sold over $1B to the government.
4) Understand the procurement process. Every agency is different, every sub agency has its nuances, and every person has their own buying motives.
5) Dedicate resources. You need to be face to face with decision makers.
Want to get smart about your federal market?
“Last year I was looking for ways to find high probability targets. isiFederal provided exactly what we needed and now we are gaining access to opportunities that we would never have seen. The fact that they are in DC every day make all the difference in building relationships at the right level.”
Brendan Skelly, President LINQ Services, Fort Lauderdale, FL.
Initial Intelligence $299
This is our most introductory report. It will answer the underlying question of most business owners… Is there my kind of work out there? We can tell you for sure if there is enough activity for your offerings before you spend thousands trying to find it.
Find out where the federal market is for your services
Competition and Award report for your product or service offering
Identify Top Purchasing Agencies that are spending money now
Contact and Competitive Intelligence $3,000.00 Click here for Sample Excel.
This is our most popular report because it gives you competitive information and contact information –including e-mails – for who is responsible for spending the money. If you want to be considered for business in September, you need to be in front of federal decision makers by the end of July.
Identify Purchasing Agencies currently using your products and services
Identify and Verify Contracting Officers (with contact information)
Complete list of all competitors, who bought from them and how much they got paid
Identify Top Purchasing Agencies
Identify Top Contracting Offices
Identify Top NAICS
Breakdown by PSC
Action plan for pursuit
*This report takes 12 business days to complete.
Get your Federal Strategy started. Call 888-9-GET-isi.
And it is indeed a happy new year for federal contractors who were positioned to pounce on “Use it or Lose it” spending. While weexecuted a last minute proposal for $525k that was chump change in the grand scheme of things.
In fact, 49,199 contracts were awarded in the last 10 days for $6,452,379,288.03 and we still have until 11:59pm. With an average of $131,148.59 per contract, there more than are a few party poppers going off right now. The best part is many of these contracts are only partially funded, that means even more funds coming on these fine wins over the next few months.
FY2011 is looking like another banner year for federal contracting with significant opportunity in construction, facilities management, Information Technology, cloud computing and security. Other areas that will be gaining steam are telecom, furniture and supply.
Hot Initiatives for 2011
Green- LEEDs certification, energy savings and alternative energy sources will be huge in 2011. Read GSA announcement here. If you haven’t embraced green technologies, you had better get on board. Make sure your GSA schedule is up to date with new technologies.
Emergency Response- With the 10 year anniversary of 9/11 approaching, hurricanes, blizzards and earthquakes, emergency response and preparation will be a key focus of expenditures in 2011. Make sure you have registered with FEMA’s contracting registry, click here https://www.fema.gov/doing-business-fema.
In-sourcing- The pendulum has swung firmly into government labor growth. That means anything to do with people in buildings is growing. Staffing agencies, furniture, phones, computers, software, security and office supplies are going to increase significantly in 2011.