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!
Micro-purchases (anywhere from $3,500 to $5,000, soon to be $10,000 for all Federal agencies later this year), and simplified acquisitions (right now, usually under $150,000 and changing to $250,000), might not drive a lot of profit for you, but Federal buyers are using these acquisition strategies more every year.
Above and beyond that, here are three reasons why it's important to have some of those little guys in your strategic growth plan.
- When a Federal buyer who awards a small contract to you -- especially a sole-sourced purchase -- that's a signal that they trust you. Furthermore, that's almost always work you've won on the strength of your relationship with the buyer as well as their trust. Be elated! If you build trust by performing well on the small stuff, odds are good that they'll be willing to talk to you about how you can help them with the bigger stuff.
- With that small contract under your belt, you've suddenly got past performance. That opens conversations with new prospects, whether you're breaking into an agency that's new to you, or expanding in one you already serve.
- Winning gives you the chance to show your best work, and the opportunity to build relationships as you check in with your client afterward. Oh, and winning FEELS GREAT! I don't know about you, but this work is hard, and the energy of a win gives a lot of us fresh momentum and inspiration.
To be fair, one cannot live on fruit forever. Data shows that the most successful Federal vendors have multiple, strategically-chosen Indefinite-Delivery, Indefinite Quantity (IDIQ) contract vehicles. Which ones are best for you?
Funny you should ask! In fact, I'll be talking about that on February 1st in Nashville, at the 8(a) conference. I created a new checklist, "3 Steps To Choose Your Perfect Federal Contract Vehicle" for people who come to the session.
Want to get it? Just message me, and I'll send it to you. Free!
Judy Bradt, CEO of Summit Insight, gives established federal teams the analysis, custom plans and support you need to grow your federal business. Call her at (703) 627 1074, and visit www.SummitInsight.com.