There are not many federal government agencies that do not need to procure services or products of a private business. In order to make the process for government bids fair to all businesses, a Request for Proposal (RFP) is published to give each business an equal chance for a contract opportunity to provide specific products or services.
These bids can range in volume of work and dollar amount, depending on the type of contract. Private companies can benefit in many ways by having a government contract for their business. For instance, companies will receive a steady, monthly income that many companies do not have.
In an effort to reduce the federal government’s carbon footprint, a presidential executive order directs purchasing agencies to identify and give preference to government bids for buying products and services that pose fewer threats to the environment. There are several guiding principles which need to be considered to assess the environmental performance of products marketed to the federal purchasing agencies.
Pollution Prevention Preference is given to government bids that focus on ways to eliminate or reduce the potential risks that a product can have on human health and the environment.
Credit, No Checks Please Most government agencies pay their bills through merchant credit cards, so if you do not accept the plastic, you will not be able to do business with the government. Actually, this works to your advantage because credit card payment eliminates the need for detailed paperwork and waiting to receive the check in the mail.
If your business is minority owned or a small business, there are many government bids designed to target and award these contracts. This is true for both federal and state governments, which require that at least 25 percent of government contract be awarded to either minority owned or small businesses. Taking advantage of these opportunities will give your bottom line a big boost.
Magnitude of Impact Not only must companies know the impact its product and service has within the United States, but it must also consider the global impact to the environment when used.
What Happens When You Assume? Preconceived notions about the needs of government agencies are an easy way to be eliminated from consideration. You may be surprised to learn what the government is willing to purchase from your company.
Not only is the process slow, but the sales cycle is slower than the capital markets and requires dedicated time and effort. However, once you have secured the contract, your business will appreciate the fruits of the labor.
Susan Billad has dealt with government contracts for the total of her career. Looking for an RFP?