Since our firm started life in the federal contract business as a minority owned, U.S. Small Business Administration 8(a) designated firm, my commentary revolves around this basis. Yet, I believe the comments I make will have relevance to all small businesses wanting to succeed in the federal marketplace.
Here is my unscientific recollection of the shift in the way federal government contracts have been and are now being awarded. Dates are not exact but serve to segment the different contract approaches. Generally, the move from open, individual bidding on contracts has moved to closed, team bids on contracts. This shift changes the entire way a company must act in order to be a successful, competitive bidder on federal contracts. This shift demands the following from small businesses: 1) must network and build teaming relationships, 2) must develop skill/experience sets that make it a desireable teaming partner, 3) must become very skilled at writing proposals, and 4) must have very good people in key positions. Trying to graduate from a small business set-aside position to a full-fledged larger business has become exponentially more difficult. The new small businesses can no longer wait to build the needed infrastructure and expertise to compete well. It must be a deliberate effort early -- right from the start!
1990. 8(a) set asides were not always competed. Before we arrived in Washington, DC to start up our effort with federal clients, we knew that there were many contracts set aside for disadvantaged businesses. We also knew that, as long as you could do the work, many of the contracts were not competed. In other words, competition for contracts was not as stiff as it has become.
1998. 8(a) set asides were competed. When we finally set up in DC, all the contracts we were pursuing were being competed with at least three bidders. We wondered what happened to the easy 'wins' of prior years.
2004. Contract bundling becomes apparent. Around 2000 and more by 2004, the challenge was that agencies were beginning to group small contracts together to simplify their contract load. The number of small projects that small businesses could bid on were thus reduced. In order to win a contract now bundled, a small business had to team with a larger business that had the bandwidth and cashflow to bid and win.
2008. Government Wide Award Contracts (GWAC) and multiple-award Indefinite Delivery and Indefinite Quantity (IDIQ) contracts increase. Beyond the bundled contracts requiring a large company to manage, the feds moved to GWAC and IDIQ contracts as a means to minimize the need for the feds to continuously find contractors. Instead, they awarded these contracts to a select group of firms so in the future, the feds would already have available contractors. Since these pre-selected businesses would merely bid on the requirements when the opportunities were released, it reduced the fed's selection evaluation to cost and approach.
2011. Some agencies now expect all bidders to be on an IDIQ/GWAC vehicle to compete for awards. We know of an agency that has a multi-award contract for Information Technology work, one for Scientific and Technology requirements, and GSA Schedules for any other needs. In other words, if your firm is not on one of the vehicles, you are not allowed to bid, or you need to find a firm with the vehicle and team with them.
With a reduced number of contract specialists and with cut-backs in federal agency funding, it is understandable that the shift to simpler contracting means is cost-effective and desirable. The move to bundling a number of projects into a single contract, or pre-selecting a group of companies into a bidding pool has been the solution. Anything that helps reduce the number of contracts to review and manage is the goal. This is ideal for the government's need to do more with less.
After 12 years working exclusively with the federal government, we are still learning how to adjust to the new norms in federal contracting. Even with all the challenges, if we approach working with the government as a meaningful pursuit, then the struggles are worth the effort. Since we view our ultimate customer as the citizens of the United States, it's like an investment in our own future!
© Baldwin H. Tom CMC
www.tbgroupconsultants.com
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