Contract Command: Mastering Market Research for Government Success

Government contracting can be a profitable avenue for businesses looking to expand their operations. However, the process of bidding on contracts can be time-consuming and challenging.

One way to increase the chances of winning contracts is to conduct proper market research in the government marketplace. By using the right research tool, businesses can identify when and where contracts become available, what agencies are involved, who previously won similar contracts, and who is the right agency point of contact.

In this episode of FedBiz’5 we host Barry Nelson, an expert in government contracting market research with over 50 years of experience in the government marketplace. Barry explains the importance of market research and being proactive in identifying award opportunities.

As a business owner, to succeed you need to stay ahead of the competition. Market Research is the primary way to do so in government contracting by having the most up-to-date information in the marketplace.

Typically, most small businesses think selling to the government is simply going through the bid process. In fact, over the past 15 years approximately 3.3 million businesses have registered to do business with the federal government and less than 20% (approximately 600,000 businesses) have ever sold anything to the government.

Selling into the government marketplace is not just about passively bidding but more about being proactive in your research of award opportunities.

Utilizing a professional research tool allows you to find out where the right contracts are that fit your business. This includes – Who buys what you sell? How much are they spending? What types of contracts are being awarded?

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While not the only factor determining success, market research greatly improves a company’s chances of securing contracts and delivering high-quality products or services.

The Market Intel database provides specific information on who is buying what you sell? The right agency offices to contact, and when you should be reaching out to the buyer.

The Market Intel database search engine provides instant access to open solicitations and expiring contracts based on a combination of keywords, industry codes, and geography, among other relevant information. Opportunity alerts include federal, state, and local solicitations.

Conducting market research in government contracting involves several key factors. The first step is to conduct a keyword or industry code search of the specific services or products you are offering and then identify the contracting officers’ names who buy what you sell. Then researching when contracts will be up for renewal and contract value. This information is critical in determining whether a particular contract is worth pursuing.

Approximately $800 billion is spent on military and federal contracts and a similar number of dollars spent in the state and local market. Market Intel allows you to find out where these contracts come from in advance and the history behind the award.

Government contracting is not just a bidding world. The vast majority (estimated 90%+) of contracts are repetitive in nature. By using the Market Intel database, you can be proactive and know in advance when solicitations will be coming out for renewals, what types of contracts will be issued, who issued the contract, who previously won the contract, and how much was awarded.

One of the benefits of targeting expiring contracts is that they are repetitive in nature. The government typically doesn’t hire new employees or purchase new services but maintains and renews old contracts. As a result, contracts for services such as janitorial services, staffing, IT, and facilities management are very often renewed. Being proactive in identifying expiring contracts and preparing to bid on them can increase your chances of winning the award.

The Market Intel database is one of the most powerful databases in the government contracting world. It holds most of the information on contract award data going back to 1976 for parts/products and 2005 for services. This includes contact and solicitation information, part drawings, who issued the contract, contract value, expiration date, and detailed information on who won the contract.

By knowing who won similar contracts in the past, you can contact them for a teaming or subcontracting relationship if you’re not ready to be the prime contractor. It’s a great way to start in government contracting.

Teaming allows you to partner with a business established in government contracting that’s already built past performance and increases your chances of winning government contracts. Businesses can team up with award winners, which are companies that have experienced the contract awarding process and know how to get into a particular agency. Teaming with these companies can be beneficial as they provide valuable capabilities and knowledge that your business may not have.

Another advantage of teaming is to partner with a business certified in a socio-economic category. These include small businesses certified in programs on the federal and state level such as:

Women-Owned Small Business (“WOSB”)
8(a) Business Development (“8(a)”)
HUBZone (“HUBZone”)
Service-Disabled Veteran and Veteran-Owned Small Business (“SDVOSB/VOSB”)
Minority Business Enterprise (“MBE”)
Women Business Enterprise (“WBE”)
Disadvantaged Business Enterprise (“DBE”)

For example, if you are in the IT field you may want to team with service-disabled veteran or a small, disadvantaged business when you have identified an expiring contract in your area of expertise that is set-aside for this socio-economic category. Each party provides similar capabilities and can partner to increase their chances of winning the contract award.

By subcontracting, you are going to a prime contractor that has won these types of expiring contracts in the past when you may have little-to-no prior experience in government contracting. It’s not the same as teaming or partnering on the contract since you will be operating under the prime’s award.

Typically, you identify the business acting as a prime contractor, and you demonstrate your particular value to the contractor or maybe you can fulfill their small business requirement as part of the larger contract. Through market research, you may even bring these opportunities to the prime contractor and become part of their business development process.

In addition, Market Intel can provide all the information you need to file a Freedom of Information Act (“FOIA”) request. This is a deeper dive into the contract and award history and is especially useful to get additional information on the award winner or to file a bid protest.

Government contracting can be a lucrative opportunity for businesses looking to expand their operations. Conducting proper market research is essential in identifying potential contracts, their renewals, and the agencies involved.

Market research is key for winning government contracts as it helps to understand the market landscape, identify needs and requirements, comply with regulations, develop competitive strategies, mitigate risks, establish pricing strategies, and strengthen marketing efforts. By conducting thorough market research, you significantly improve your chances of securing contracts and achieving success in the government marketplace.

FedBiz Access (“FedBiz”) offers market research tools and engagement strategy sessions, as well as marketing packages to targeted buyers at the federal, state, and local government levels. An experienced fulfillment team takes the time to understand your business and ask questions to ensure you have a solid government contracting foundation.

FedBiz is a leading government contracting business development and marketing firm that offers research and engagement strategy coaching, SAM & DSBS registrations, set-aside certifications, and GSA Schedules.

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.

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