It takes a lot of work to get your company ready when you鈥檙e bidding on government contracts.
The paperwork that goes into a bid can be daunting.
Below, we will take a look at three of the most common pitfalls trade contractors face when competing for government work.
Table of Contents
Underestimating the Work That Goes Into the Bid
Public tenders such as requests for proposals (RFPs) are lengthy documents. A typical government construction project kicks off with 100-plus pages of documentation. Responding to all of the requirements laid out in such a document takes time and serious planning.
So, first, it鈥檚 important to have the basic requirements squared away. These include:
- Getting your North American Industry Classification System (NAICS) code. You can look this up on the website. Then, check to see whether your business meets the definition of 鈥渟mall business鈥� relative to that NAICS code. 鈥淭his standard will have relevance as you decide which contracts to bid on, as some contracts are only open to small businesses by the SBA/NAICS code definition,鈥� the points out.
- Registering at SAM.gov. This is where government procurement notices get published. To complete your registration, your business needs to include a capabilities statement, at Next Insurance writes. 鈥淭his is like a resume for your construction firm that government purchasers will use when deciding whether to hire you. When writing your capabilities statement, describe your construction company鈥檚 strengths memorably. Tout your previous projects, especially if you鈥檝e had prominent clients. List any relevant construction certifications you have.鈥�
Bidding on the Wrong Types of Projects
Not every government contract will be a fit for your business, even if the job falls squarely in line with your trade specialization. Be selective as you browse opportunities, and only bid on projects that make business sense for your company. If you鈥檙e especially busy now, don鈥檛 overextend your team by bidding on government contracts just to land a one.
鈥淚t can be tempting to work with various government agencies in the hopes of assisting your company鈥檚 growth,鈥� at ExecutiveBiz writes. 鈥淗owever, that is not the case. It鈥檚 critical to choose the correct federal business opportunities to bid on if you want to keep your business healthy.
鈥淵ou don鈥檛 want to bid on a project your business cannot meet the specifications and scope. It鈥檚 also not a good idea to win too many federal contracting opportunities that you and your team can鈥檛 manage adequately and end up failing to deliver.鈥�
And even when you find a good fit, you might be at a competitive disadvantage because someone else submitting a bid could have an existing relationship with the government agency in question.
at GovCon Wire suggests looking up individual competitors in the tool, which is managed by the U.S Small Business Administration. 鈥淭his information will help you gauge the quality of the business relationship between your competitor and their previously engaged government agency based on their performance.鈥�
Letting Yourself Get Overwhelmed by the Documentation
As mentioned earlier, government paperwork can be intimidating to navigate.
, whose YouTube channel GovKidMethod speaks directly to construction firms trying to secure government contracts, warns business owners not to get bogged down by a solicitation.
The first time you see one of these documents, it can seem unreadably dense. But as you see more and more solicitations, you鈥檒l learn how to navigate them. 鈥淵our brain is going to start to normalize these things as you start to understand this is a skill you鈥檙e building over time,鈥� James says.
Learn More About Bidding on Government Contracts
If you need help getting your construction project documentation in order so you can bid on government contracts, 678体育下载链接 can help. to see how.
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