One evening after I gave a presentation, someone asked me, "Where is the low-hanging fruit in Federal contracting?" Then, I told them confidently, "There's no such thing."
I was so wrong!
There is plenty of "low-hanging fruit" in the Federal market!
Are you at or below the minimum sales GSA requires for you to keep your GSA Schedule? You are not alone: Over 1,000 schedule holders on your contract vehicle failed to reach GSA’s minimum sales goal last year.
Did you reach that minimum sales goal in the first and second quarter of 2017? Good for you! You probably saved your GSA Schedule from being dropped. Unfortunately, about 30% of companies who missed that goal have lost their contracts since October 1st, 2016.
I recently surveyed 113 federal contractors about their success in federal contracting. 49% said their win rate is less than 10%. That didn’t surprise me. In 2010, when I was researching my book, I interviewed a business owner who was all excited about winning her first federal contract.
“Tell me something,” I asked. “How many bids did it take you to win that first one?”
“39,” she said triumphantly.
Despite federal budget woes and close scrutiny from the Administration, reverse auction – the ultimate Race To The Bottom – is actually becoming more popular among federal buyers.
Tough price competition isn’t a winning strategy for many vendors. So, how do you decide when reverse auctions can open big doors for your business?
Actually, there are ten clues.