Top Government Federal Contracting Myths

Posted by Fedvital on July 19th, 2022

Let's examine some widespread myths regarding working with the government to dispel some market-related apprehensions. A careful analysis of the aforementioned will give the necessary background to make informed decisions about working within the government structure. Some myths act as ardent promoters of working with the government, some talk more realistically, and some myths are built around quotes from the government.

The top government contracting myths are as follows:

1: The government does not pay, or it takes a very long time to receive payment.

Despite media attention on some governments and organizations that have not paid their "bills," when we specifically discuss federal marketing contracting, payment is done within 30 days, and in some circumstances 15 days, after receipt of an accurate invoice.

2: "No one will talk to me," "I can't even talk to anyone in the government," etc.

This was one of the points made by the federal marketing in their version of Mythbusters. As long as no corporation got preferential treatment, government representatives are free to speak with businesses one-on-one. Early information sharing with businesses is encouraged. The state of Iowa's procurement officials also promotes direct contact with businesses on a smaller scale.

3: Speaking with government representatives and/or marketing has no real significance or benefit.

Government agencies, both federal marketing and State, rely on businesses promoting their products/services to help with their market research and to be aware of what is available in the industry. This interaction also aids in the identification of small firms and gives more businesses the chance to obtain Requests for Quotes that may not otherwise be made public. They will approach someone they know if they don't know you.

4: All I need to do is "register" or be included in the government's "database."

Unfortunately, there isn't one place to go for anything related to government contracts, and there's no computer system or universal registration that will make sure you always hear about any opportunities to submit a bid. You will need to register for some things, but this is where learning about the procedure is important so you can make sure you're registered and looking in the "correct place."

5: Making money through government sales is simple.

While there is a big possibility for success if you put in the initial time investment, the market is not one to enter if you are seeking a quick way to generate sales. There is a lot of rivalry for government projects and sales. There are exceptions, but according to certain studies and articles, it typically takes a business 18 months to land its first contract. Although it is a marathon rather than a sprint, you will see the ROI if your expectations are reasonable.

6: Earning money will be impossible.

The Federal Government is one of the biggest buyers, and your state government also has a considerable budget for purchasing goods and services. This is just a positive spin on myth #5 from last week. You have the potential to greatly improve revenue if you make the effort to recognize your greatest potential clients and master the method. A company in Iowa saw a 25% rise in sales after adding federal marketing contracts.

7: Only big businesses succeed; my tiny business isn't competitive enough.

The socioeconomic objectives of federal marketing are one way in which it specifically varies from the private sector. They have objectives for their small business spending, including those owned by women, veterans, and others. They are permitted and even required by their regulations to "put aside" chances for small enterprises, which means that they will be the only ones placing a bid. There are also some programs for small enterprises in the state of Iowa. This does not imply that you should base your career on it, but it is another way to set yourself apart from the "big dogs" and a competitive edge.

8: To succeed in the government market, you must have a GSA schedule.

It's okay if some of you are asking, "GSA? Huh?" One way the federal marketing purchases goods is through the General Services Administration Schedules program, although it is neither REQUIRED nor the ONLY way to obtain contracts and orders. You don't need a timetable to conduct business with the government, but I have attended enough conferences to know that this isn't always the message. Perhaps you also need to attend conferences.

9: No matter what, the lowest bidder wins.

Because of the nature of some things acquired, you will undoubtedly never be able to avoid some procurements being granted to the lowest-priced bidder. However, state and federal marketing agencies each have the option to award contracts to the proposal that, beyond price, provides the agency with the most value. The government has understood that low price does not always equal "low price" if there are quality concerns, demands for adjustments, etc., even though it may be a little behind the curve in this regard. In this way, they are attempting to more closely resemble private businesses, and it is starting to happen more frequently than not.

Still, debating whether or not to submit a bid for government contracts? Feel free to reach out to us, our professionals will be always there to help you out.