Success in the world of government contracting isn’t just about having the right product or service. While those things matter, what truly sets apart successful contractors from the rest is a combination of qualities, strategies, and a deep understanding of the federal procurement process. It’s about being more than just “good” at what you do—it’s about positioning your company as a reliable, efficient, and competent partner to the U.S. government.

If you’re a small business looking to win more government contracts, understanding what makes some contractors more successful than others is essential. In this blog, we’ll dive into the characteristics that define top federal contractors and outline how you can model these traits to position your business for success.

1. Understanding Federal Procurement is Key

One thing that distinguishes successful government contractors is their thorough understanding of the federal procurement process. This includes understanding the various regulations, the Federal Acquisition Regulation (FAR), and how agencies prioritize their needs. These contractors also stay updated with changes in procurement policies and use this knowledge to craft bids that align with the specific requirements of each opportunity.

Knowing how the federal government buys products and services is not optional—it’s essential. Successful contractors are adept at navigating not just the procurement process, but also systems like SAM (System for Award Management) and CPARS (Contractor Performance Assessment Reporting System).

2. Exemplary Past Performance: The CPARS Advantage

Federal buyers place great emphasis on a contractor’s past performance. This is where CPARS comes into play. CPARS reports provide detailed evaluations of how well contractors have performed on previous contracts, evaluating them on quality, schedule, cost control, and management. According to research, companies with strong CPARS ratings are far more likely to win subsequent contracts.

Businesses with employee ownership, for example, tend to perform better across the board on CPARS ratings. Data shows that 79% of ESOP (Employee Stock Ownership Plan) companies receive excellent or very good ratings compared to just 57% of other companies. Why? Employees who own a stake in the business are often more motivated to ensure the success of a project. By making employee satisfaction and ownership part of your company culture, you may increase your chances of excelling in CPARS assessments.

The takeaway here is clear: strive for excellence in every contract you undertake. The better your performance, the stronger your CPARS rating, and the more likely you are to win future contracts.

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3. Build Strong Relationships with Government Agencies

Relationships matter, and this is especially true in the government contracting space. Successful contractors focus on building strong, long-term relationships with federal agencies. They don’t just see each contract as a one-off project but as an opportunity to establish trust and demonstrate reliability. This often results in repeat business and, in some cases, contracts being extended without the need for a competitive bidding process.

Take time to engage with contracting officers and government buyers. Attend industry events, networking functions, and webinars that government agencies host. If possible, get involved in government-wide acquisition contract (GWAC) programs, which allow agencies to order from pre-approved suppliers. The more visibility and credibility you build with government buyers, the easier it will be to secure contracts.

4. Offer Competitive and Compliant Pricing

Pricing is always a factor in the federal procurement process, but it’s not about being the lowest bidder. It’s about being competitive and compliant. Agencies are tasked with securing the best value for taxpayer dollars, so offering a price that reflects both quality and cost-effectiveness is crucial.

Pricing should be based on a deep understanding of the cost structure involved in the federal marketplace. Government contractors who are successful often use market research and data-driven insights to develop pricing models that work for both their business and the agencies they serve. A successful contractor understands how to balance competitiveness with compliance to government pricing requirements.

5. Have the Right Certifications

Certifications can be a powerful tool in the government marketplace, especially if you’re a small business. Many federal contracts are set aside specifically for businesses that a formally certified. These include 8(a), HUBZone, WOSB (Women-Owned Small Business), SDVOSB (Service-Disabled Veteran-Owned Small Business), and more.

If you’re a small business seeking to break into government contracting, obtaining these certifications can open up exclusive opportunities. Furthermore, these certifications give government agencies the confidence that you’re well-equipped to handle the contract and meet their specific requirements. Successful contractors leverage certifications to not only gain access to more opportunities but also differentiate themselves from competitors.

6. Employee Ownership as a Performance Booster

As seen from the CPARS analysis, employee-owned companies outperform their peers. Employees who have a financial stake in the success of the company tend to take greater pride in their work, leading to higher job satisfaction and, ultimately, better project outcomes. This is not unique to federal contracting, but the data shows that it has a particularly noticeable effect in this sector.

Implementing an ESOP can be an effective long-term strategy for improving company performance. With employees invested in the company’s success, there’s a greater sense of accountability and teamwork, which translates into better outcomes for government contracts. While setting up an ESOP may not be feasible for all businesses, focusing on employee satisfaction and engagement can still provide similar benefits.

7. Strong Project Management Skills

Government contracts are typically complex and come with strict deadlines, compliance requirements, and cost constraints. This is where exceptional project management skills come into play. Top contractors are experts in project management—they know how to meet deadlines, stay within budget, and ensure that all compliance requirements are met.

Successful government contractors typically invest in high-quality project management tools and personnel to ensure that projects are delivered on time and within scope. Additionally, they’re highly skilled at handling the inevitable challenges that arise during the execution of a contract, such as changes in scope or unforeseen technical difficulties.

8. Focus on Quality Over Quantity

Winning more contracts doesn’t always mean bidding on every available opportunity. Successful contractors are selective about the opportunities they pursue, focusing on those where they can offer the most value and are most likely to win. This strategy allows them to allocate resources effectively and avoid spreading themselves too thin.

Government agencies look for contractors who can demonstrate their ability to provide high-quality work, meet deadlines, and remain flexible when challenges arise. By focusing on delivering quality work for each contract, you’ll build a strong reputation that will increase your chances of winning future bids.

9. Master Proposal Writing

A well-written proposal can make or break your chances of winning a government contract. Successful contractors excel at writing proposals that are not only compliant but also compelling. They know how to clearly articulate their value proposition, demonstrate their past performance, and showcase their understanding of the agency’s needs.

Proposal writing is both an art and a science, and top contractors often invest in specialized staff or external consultants to help them craft winning proposals. Consider investing in professional proposal writing services to ensure your proposals stand out from the competition.

10. Stay Adaptable

The federal contracting landscape is constantly evolving, with changes in regulations, technology, and agency priorities. Top contractors know how to stay flexible and adapt to these changes. Whether it’s incorporating new technologies, adjusting to regulatory updates, or shifting business models to meet new demands, adaptability is a key trait for success.

By staying up to date on industry trends and government initiatives, successful contractors can anticipate changes and position themselves to take advantage of new opportunities as they arise.

How FedBiz Access Can Help You Win More Government Contracts

Navigating the federal contracting process can be complex, but you don’t have to do it alone. For over 23 years, FedBiz Access has been a leading government business development firm, helping businesses of all sizes secure over $35 billion in government contracts. From SAM registration and certifications, to market research and direct marketing solutions, we provide the tools and expertise needed to succeed in the federal marketplace.

Our comprehensive suite of services includes:

SAM & DSBS Registration: Ensuring your business is visible and compliant in the federal marketplace.
Capability Statements: Professionally developed to showcase your strengths and past performance.
MatchMaker Service: Connecting you with government buyers through strategic research and personalized email campaigns.
Certifications: Assistance with obtaining 8(a), HUBZone, WOSB, (SD)VOSB, and other certifications to access set-aside contracts.
GSA Schedule Support: Guiding you through the GSA Schedule process, from application to contract management.

If you need help positioning your business to win more government contracts, schedule a complimentary consultation with a FedBiz Specialist today. Our team of experts is ready to help you navigate the complexities of federal contracting and take your business to the next level.

By adopting the strategies and qualities outlined in this article, you can increase your chances of success in the federal marketplace. With the right knowledge, preparation, and support, your business can be like the top contractors who consistently win more government contracts.