Small Business Owners Play a Large Part in Ensuring Success With Federal Customers
Federal government customers represent a large market and a lucrative source of work for small businesses. Current economic conditions make government contracts an even more attractive opportunity as uncertainty regarding the commercial sector seems to grow daily. As more and more companies vie for government contracts, however, the level of competition grows increasingly fierce. This can be particularly problematic for the company that is small, new to government contracting or both.
Teaming is becoming widespread because it offers small, relatively inexperienced companies a way to break into the government market. One way to make a small business more competitive is to bring government contracting experience to the table. In government contracting, subcontracting is one of the easiest points of entry and a realistic way to gain government experience and marketable past performance. Many companies, both large and small, use teaming as an essential part of their business development strategy. Large prime contractors gain a means of obtaining unique capabilities in a timely and cost-efficient way. Contractor team arrangements can be attractive to government as well because the increased flexibility a team approach provides can deliver the best-value solution for the customer.
In a presentation to AFCEA International’s Small Business Committee, Ludmilla Parnell, marketing director for Small Business Partnerships at General Dynamics Information Technology, advised small businesses interested in teaming with large prime contractors to understand their company’s market focus, the government customer and the prime contractor. A clear understanding of a company’s focus and core capabilities is essential when marketing to the prime as a teaming partner, she said. Parnell also recommended that small business owners candidly evaluate whether they have the necessary experienced personnel, resource availability and financial solvency to do the work. The prime undoubtedly will do this evaluation, and a small firm should be prepared to demonstrate the reasons it brings value to the team.
Understanding the potential government customer can be a powerful way to demonstrate value in a partnership. Although an existing relationship and first-hand knowledge of the customer is highly desirable, doing homework and market research is the next best activity, Parnell said. Some important items to consider include the customer’s purchasing history, price/cost sensitivity, the company’s budget for the product or service, problems, and motivation and resources available to solve the problems.
In pursuing federal government contracting opportunities, teaming is a practical approach for small businesses, Parnell said. Subcontracting to a large prime contractor can help build necessary experience for a small firm and also can result in delivering better value to the government customer.
Further information can be found by visiting the AFCEA Small Business Committee’s Web site. View Parnell’s full presentation online. Contact Tammy Goehring to sign up for the Small Business e-mail distribution list to receive advance notice of upcoming offerings.
