Building Bridges in Government Contracting: The Power of Relationships

In the government contracting world, technical competence, superior products, and competitive pricing are all important factors. However, there’s one crucial aspect that often tips the scale towards success – relationship-building. Indeed, the old adage still holds true, “It’s not what you know, but who you know.”

“You must build relationships with potential federal customers, pursue federal prime contractors for subcontracts, and actively pursue prime contracts opportunities to grow your business.” – Small Business Administration (“SBA”)

Levels of Relationships in Government Contracting

I. Government Buyers

Direct connections with government buyers are instrumental in understanding their needs, priorities, and processes better. This knowledge enables contractors to tailor their value proposition more effectively and resonate with buyers on a deeper level.

Proactively marketing your business is a must. Regular interaction, proper follow-up, and meaningful engagements with government buyers help to facilitate a level of trust and familiarity, making you a go-to option when a relevant opportunity arises.

This is especially true for awards under the simplified acquisition threshold. If the contract value is more than $10,000, but less than $250,000, of which the majority of federal contracts fall within this range, then the government buyer utilizes the Simplified Acquisition Procedures (“SAP”). Under the SAP threshold, small businesses must be considered for all federal awards under $250,000 if there are two or more small business offerors expected to compete.

II. Prime Contractors

In the realm of government contracting, prime contractors are the behemoths that most often win the lion’s share of contracts. For small businesses, establishing relationships with these prime contractors can open doors to significant subcontracting opportunities.

Prime contractors are mandated to subcontract a certain portion of their work to smaller businesses, especially socio-economic certified small businesses. By forging a relationship with these companies, you can be better positioned to gain access to these subcontracting opportunities.

III. SBA Representatives

The SBA’s Mission is to empower small businesses in government contracting. It plays a critical role in advocating for small businesses within the federal government. Building relationships with SBA representatives can provide contractors with valuable insights, support, and access to resources.

The SBA works closely with federal agencies to find small businesses that can meet agencies’ contracting needs. Each agency has an Office of Small and Disadvantaged Business Utilization (“OSDBU”) to promote small business utilization and ensure that small businesses have a fair opportunity to compete for federal contracts.

Businesses that participate in SBA’s Small Business Certification Programs are more likely to win awards and remain engaged in federal contracting. The SBA collaborates with each agency to establish minimum reasonable goals for small business contracting.

Small business set-aside and sole source contracts are based on certain socio-economic criteria. These programs include small businesses certified in programs on the federal level such as:

• SBA Women-Owned Small Business (“WOSB”)
• SBA 8(a) Business Development (“8(a)”)
• SBA HUBZone (“HUBZone”)
• SBA Service-Disabled Veteran and Veteran-Owned Small Business (“SDVOSB/VOSB”)

SBA representatives are well-versed in the intricacies of government contracting and can help navigate its complexities. They can guide businesses to become better equipped, more competitive, and ultimately more successful in winning government contracts.

A Catalyst for Success

If government contractors are not proactively building relationships and nurturing these connections, they’re likely missing out on potential contract awards. Relationships are more than just networking – they’re about establishing credibility, showing capabilities, and demonstrating how your business can provide value to these critical stakeholders.

In addition, expiring contracts are recompeted, so relationships and research help give you the inside track by knowing who issued the award, who won the award, and for how much. In other words, a business was originally awarded the contract, the contract reaches the end of its contract term, and the contract will be opened again for rebidding.

This is particularly true for service contracts, which renew at a higher-than-average rate. For example, if you are a facility support company like a janitorial company where the services are typically ongoing, and contracts are recompeted based on the frequency specified within the contract.

How Can FedBiz Access Help?

Navigating the world of government contracting and relationship-building can be complex, but with the right support, it can be a lot easier. This is where FedBiz Access comes in.

With our new MatchMaker package, we provide a range of services designed to help government contractors thrive. We offer direct marketing to government buyers, ensuring that your business and its offerings are on their radar.

Our engagement coaching service is designed to help you build and maintain meaningful relationships. We guide you on the best practices for engaging with prime contractors, government buyers, and SBA representatives. You’ll learn directly from a former federal contracting official.

Additionally, our bid opportunity review service helps you zero in on the most suitable opportunities for your business. We help you identify where your time, effort, and resources are best spent.

The journey to winning government contracts is paved with the relationships you build along the way. It’s a challenging yet rewarding process that can lead to significant opportunities and business growth. Let FedBiz Access be your partner in this journey and help turn your networking efforts into tangible success.

FedBiz Access (“FedBiz”) has an experienced team that works with small businesses and takes the time to get to know your business and ask questions to ensure you have a solid contracting plan. FedBiz is a leading government contracting business development and marketing firm that provides engagement strategy coaching, SAM & DSBS registration, set-aside certification registrations, GSA Schedules, and targeted market research.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.

Your Government Registration Level (“GRL”) is your roadmap from registration to award.