Skip to content

DIVERSITY IN PROCUREMENT

The question is… how do we create procurement opportunity awareness and help small businesses become better small businesses?

Advertisements
Quote

life is short, …

life is short, just do it now. Ladies and gentlemen, lets pursue progress now. – nelson nigel

life is short, just do it now.  Ladies and gentlemen, lets pursue progress now.  Do not wait, do not wait, do not put it off.

Five Tips on How to Secure Government Contracts

Winning government contracts is not easy. In fact, it was never easy even for big corporations and large firms. And if you own a small business, don’t fret because the government is actually allowing small-scale entrepreneurs to join the bidding on any size contract. In fact, there are lots of contracting opportunities that are up for grabs. In the United States alone, there are at least 25,000 active federal contracts to seize.

If you are yearning to learn the secrets on how to get government contracts, here are some tips, do’s and don’ts and reminders in wooing the government:

Tip #1: Have a Good and Clean Track Record
Before attempting to get a contract, make sure your business has a good and clean business record. In most cases, governments will not grant your business with a contract if it doesn’t have a positive cash flow. Also, if your business has tax affairs, it is highly recommended to settle them first. Lastly, your business should be up and running in the industry for at least 24 months.

Tip #2: If You Know the Contracting Rules, Know Your Business Better
Considering that you are already familiar with the government’s contracting rules and regulations, the next thing you should do is to know your business even better. Given the number of contracting opportunities, you should be able to determine which contract to compete for. And if you are having a hard time specifying your search, take time to understand what your business can offer, its advantages, as well as weak points.

Tip #3: Get the Paperwork Done
Winning government contracts is not measured on how big or influential a company is. Usually, those businesses which are diligent in carrying out all the paperwork completely and on time have the upper hand in landing the contract. For instance, if you are to work with the federal government of United States, make sure your business is registered in the Central Contractor Registration database.

CCR would definitely increase your chance in seizing government contracts since most contracting officers were looking at their database to see which businesses could fulfill the requirements. On your part, CCR’s database could be a great tool since it will let you know the number of competitors in your industry who already got their contracts and doing business with the government.  Moreover, signing up with the government’s own database (Federal Business Opportunities or FedBizOpps) would also help your business to obtain notices about contract solicitations.

Tip #4: Expand Your Business Relations and Horizon
Another great way to get government contracts is to work as a subcontractor or partner for larger firms and companies. These companies have their own databases so you shouldn’t miss the opportunity to sign up your business in their web portals.

Apart from fulfilling all the requirements and paperwork, establishing human relationship with the decision-makers could also increase the chance of success. Attend to their events, meet other business people, and eventually, expand your business network.

Tip #5: Always Remember that Winning Government Contracts Isn’t Everything
Lastly, never let other business matters to slide as you focus on getting the contract. A lot of firms, especially starting/small ones, are getting thrilled once they win the contract and they forgot how to attend other business aspects. Always keep in mind that seizing government contracts isn’t everything to having a lucrative business.

You might also like my other blog on procurement as well

Established Ways to Get Government Contracts Quickly

The hype of getting government contracts can be very taxing for some business owners. Some have already viewed this venture as a very complicated and time-consuming endeavor. But if you’re really that hell-bent on getting government contracts, then you have to consider and accomplish everything to make sure that you do.

Getting government contracts may not be easy but it’s not impossible for any small business owner. To serve the federal government with YOUR services and products would be the best thing that could ever happen to your own company. You should think about the publicity and the earnings that you’re bound to get once you win that contract.

But in order to accomplish all that, it is essential to know what to do first.

The Established Ways

In getting government contracts, you have to keep in mind that there are founded steps that you have to secure in order for you to move forward:

  • Registration and certification:
    You have to register your small business first so that he government agencies could know who you are and what your company is all about. After registering you have to make sure that you have an SBA HUBZone certification.
  • Keep going
    You don’t have to wait for the SBA HUBZone certification before you start your preparations in getting government contracts. You have to keep going so that you won’t be a stagnant business.
  • SBA 8
    This is a program that aids the disadvantaged businesses (veteran-owned, women-owned, minority-owned, businesses owned by disabled people). If you are under the disadvantaged business owners, then you should secure SBA 8 certification immediately. Disadvantaged business owners should have equal opportunities in winning getting government contracts. It is good that the federal government has the SBA 8 program to assist small business owners in every state so that they could have the chance to exhibit what they have. The certification has a time limit so you have to accomplish all other requirements before you proceed with acquiring this certification.

You should keep in mind that getting government contracts can indeed be challenging but very rewarding. The exposure that your company could have would be the highlight of your career as an entrepreneur. Some small businesses may get that contract immediately and some might wait a while. But what’s important is that everyone gets a chance to enter this venture with the biggest client in the world.

Always keep these three tips in mind before setting forth in getting government contracts. You need to be equipped with enough information before you engage with the biggest customer that you can possibly have business with, the federal government. Getting government contracts may seem improbable, especially for minority businesses. However, with the right mix of determination and patience, you have the edge in getting government contracts.

If you really want to start getting government contracts, be mindful of all the possibilities and the hindrances that you might encounter along the way. Stick to your plan and follow the tips mentioned above too.

Quick List of the Latest Federal Contract Opportunities

In almost every corner of the world, small businesses struggle to make their names known. In the US, federal contract opportunities are the best means to achieve the best form of publicity and promotion for a small company. When you have the US government as your client and succeed in satisfying the project’s standards, then you can be sure to have a firm hold to your status as a quality company. Surely, you will gain recognition and a good reputation in the field that you specialize in.

It is no secret that the US government has a set budget for small businesses. Federal business opportunities really provide a lucrative melting pot for small companies that decide to enter the trade. This is included in any business opportunity ebook that you could get your hands on. It can be said that federal contract opportunities could either make or break a small business. Everything starts in the bidding and screening process. If your company has what it takes to win one of the federal contract opportunities, then you can be sure of a continuous run of your business. Federal contract opportunities have always been known as very challenging and very difficult to enter. The primary reason for this is the amount of requirements and standards that your company has to meet to really provide for the government.

The Quick List

To give you a sneak peek at the vast collection of federal contract opportunities these days, here is an updated quick list of the needed products and services that government agencies in the US need:

  1. The Department of the Navy requires rebuilding, repair, and maintenance of their facilities and equipment as of March 6, 2012.
  2. The Department of the Air Force needs a supplier of diesel generators as of March 6, 2012.
  3. The Department of Veterans Affairs is in need of the certification and preventive maintenance of their equipment as of March 6, 2012.
  4. The Department of the Army needs to acquire laundry services as of March 6, 2012.
  5. The Department of the Army needs repair services and air craft parts as of march 6, 2012.
  6. The Department of the Air Force is in need of a supplier of hazardous material response trailers as of March 6, 2012.
  7. The Agency for International Development needs to acquire RFI for carbamate insecticides (indoor residual spraying) to be used in Ethiopia as of March 6, 2012.
  8. The Agency of international Development Overseas needs a senior press liaison as of March 6, 2012.
  9. The Department of the Air Force needs a supplier of console furniture as of March 6, 2012.
  10. The Department of Labor needs moving services as of March 5, 2012.

As you can see, many federal contract opportunities are waiting for any small business that matches the needs of the federal agency that posts. All that small business owners have to do is to make sure that they comply with the requirements and fit into the needs of the said agencies. These are only some of the federal contract opportunities that you may be interested in. Feel free to scope out more of them in very useful sites such as http://www.SBA.gov.

The Difficult but Worthwhile Procurement Process

The federal government and companies’ acquisition of products and services that goes through bidding best explains procurement process. On the other hand, bidding is where businesses, small or not, compete with each other to win procurement contracts. This involves a series of stages which sellers find difficult, but very fulfilling to work up.

Organizations, which include the federal government, implement the process of procurement to cost-cut their acquisitions and operations. They hire people to work as company buyers. For those businesses that operate worldwide, though, they appoint companies to provide global procurement services for them. This makes things a lot easier, quicker and comfortable for them.

In general, the procurement process begins with the sending of Request for Proposal (RFP) to the potential suppliers. Business owners, soon as they receive this letter, prepare and submit applications. However, any supplier is also given the chance to participate, due to this so-called Request for Tender (RFT). Some companies also accept quotes and the likes even without sending invitation.

Buyers make a thorough review after submitting applications. They first validate the appropriateness of the supplies being offered. Afterwards, they check on the quality, terms and conditions, logistics, schedule of delivery and others. They need to make sure that everything will turn out smoothly; hence, will not affect the business workflow. Of course, selection and awarding of bids come next.

Most entrepreneurs believe that pricing matters in the procurement process. This is somewhat true. If they offer prices for supplies that are a lot lower than the others, they will surely get the attention of buyers. But, this is not a guarantee of being awarded with contract. They also have to make sure that the costs they are presenting are not too low as to raise doubts.

Always remember that those people that work on the procurement department are well versed with their jobs. They can smell tricks such that they can easily detect “low cost, low quality” bids. Sellers must therefore realize that buyers aim for cost-reduction opportunities and cost efficiency instead of dubious or impractical price drops. Why, one may ask? It is primarily because their reputation is at stake.

The key toward becoming successful in the process of procurement is submitting proposals that reflect cost effectiveness. Businesses, particularly the small ones, must be keen on to offer high quality goods and services for reasonable prices. But of course, the most important part of the “negotiation” is that they must be able to formulate cost that is lower than the competitions to be able to readily capture the interest of the procurement officers. Yes, cost reduction is still an important factor after the assessment on cost efficiency.

Some businesses are afraid to go through this procurement process. Even before they try a shot at it, they already find it difficult to do. Well, nobody can blame them, since a few even consider this as a grueling method. However, they have no idea that with this challenge comes profitable government or corporation contracts. With organizations spending billions of money just for acquisition of supplies, entrepreneurs must grab this opportunity to maximize their profitability.

Learning More about Global Procurement Services

Running a corporation that is operating globally is not an easy task. You do not only attend to the problems on your own office, but on other offices located in various countries as well. This is why forming a competitive team is a must. This includes the companies you outsource to do global procurement services.

Hiring a firm to provide you with global procurement services lessens your burden.

Sourcing suppliers from other countries will not be your problem anymore. The people you contracted will be the one to do this task. The same goes for the assessment of the manufacturers’ qualifications and capabilities. On your behalf, they can perform on-site inspection; hence, there is no need for you or your worker to travel just to do this. They can even design shipping schedules and arrangements for the company.

With the global procurement professionals doing their jobs, you have more time to pay attention to other important matters.

Working on the procurement process of your company should have been an easier task—if only you are not operating around the world. But because you are, you can imagine yourself running a business within a business if you do not hire experts for the global procurement services. But because you do, you can be sure that you can attend to other vital issues on your company. Remember, procurement may be an essential area in your venture, but it only makes up a fraction of your business. You have other important matters to attend to.

By utilizing the expertise of other people, you will have less work to do and enjoy the benefits of saving money.

It is true that you will pay the company you hired to provide global procurement services but if you compare that to the benefit of saving time and effort you get it will significantly compensate for the amount of money you pay. Rather than personally going to meetings and appointments to other countries, they will do the negotiation for you. They know various suppliers to whom they make offers and counter-offers thus making them the right fit for the job. These experts will deal with the purchasing and inventory of the supplies.

Professionals who work on the procurement services internationally will help you build your networks.

It is definitely not easy to build networks especially in foreign countries. If you let professionals do this in behalf of your company, you will gain the benefit of establishing the right network. In fact, these professionals know the importance of building a network in the procurement process because they too have build their specific connections in the industry.

Hiring professionals to provide global procurement services is definitely a smart choice. The reason for this is because they are qualified for the job and they have the right experience. Above all, they have already established their own network composing of suppliers and manufacturers with whom they do business with. In addition, they also know the current market price and they also know the proper way to go in order to perform global work for your business.

5 Surprising Truths about Government Procurement

Business all over the 50 states of America must understand one thing about government procurement: the business opportunities are endless! In these financially strained times, businesses must defy conventions and think out of the box in order to keep going. One wise economic move is to explore a business partnership with the federal government.

Federal government procurement need not be an intimidating opportunity for businesses. These five (5) surprising truths will help convince the business owner that the government is a great customer:

  1. Federal spending for goods and services is pegged at $300 billion per year. This incredibly huge amount is spent on virtually every need and every service acquired through federal procurement. Businesses big and small could surely benefit from such a vigorous cash flow.
  1. Most government procurement contracts are awarded to small-sized and medium-sized businesses.  A big percentage of federal contracts are valued between $2,500-100,000. This means that small companies, with a manpower pool of less than 500 people, are the usual providers of goods and services for the government. This amazing fact should erase the misconception that only mammoth companies could land government contracts.
  1. The United States government is the largest purchaser of goods and services in the country. The size and volume of purchases made by the government is quite huge, that it easily topples all other consumer or purchaser entities. With the increased needs of federal and state agencies, as well as the privatization of some sectors, there is a great demand for contractors and businesses to transact with the government.
  1. Small government procurement contracts do not require voluminous paperwork. While it’s true that the government has a prescribed and strict guideline in rewarding contracts, small value procurements are an exception. Huge, pricey contracts do require some paperwork, but when it comes to small business contracts, the requirements change. The whole contract could even entail only a two-step process!
  1. The government is a good payer. There’s this erroneous perception that government entities are bad payers. According to public perception, it takes forever for government to pay its contractors. The public could never be more wrong. Government entities are required to pay contracted individuals and companies within thirty (30) days, and if they fail to do, contractors are entitled to collect the corresponding interest.

These five surprising truths about government procurement are big enough reasons to encourage both small-sized and medium-sized businesses to establish a business partnership with the government. It really is a win-win opportunity that no entrepreneur or business owner must ever forego.

Global Procurement Services for Your Success

Running a corporation that is operating globally is not an easy task. You do not only attend to the problems on your own office, but on other offices located in various countries as well. This is why forming a competitive team is a must. This includes the companies you outsource to do global procurement services.

Hiring a firm to provide you with global procurement services lessens your burden.
Sourcing suppliers from other countries will not be your problem anymore. The people you contracted will be the one to do this task. The same goes for the assessment of the manufacturers’ qualifications and capabilities. On your behalf, they can perform on-site inspection; hence, there is no need for you or your worker to travel just to do this. They can even design shipping schedules and arrangements for the company.

Allowing global procurement professionals complete the tasks for you mean you have more time to focus on other matters.
It is easier to work on the procurement process for your company if you were not operating internationally. However, it becomes really challenging if you operate internationally and you don’t hire experts to take care of this task. Thus, you will be able to focus on more vital aspects of your business. See procurement is just a small part of your business which means you need to attend to other matters for your business as well.

If you depend on other people, you are able to distribute the work into manageable chunks and in addition reduce the cost of operation.
Getting global procurement services may mean paying the company in exchange but the amount you will pay to them is nothing compared to the time and effort you save which will compensate for this. Rather than traveling to attend meetings and make appointments to other countries, the company you hire will do this for you. They will make reasonable offers and counter-offers to other companies on your behalf otherwise they would not be ideal for the job. The professionals you hired will be responsible for your supplies thus they do their purchasing and other things you require.

People you hire to do procurement services from other countries will help you build a good network.
It is quite challenging to build networks that are located all around the world no matter how advanced the internet is. Thus, the procurement firm you hire will do this on your behalf. These firms have usually built their companies if they are not members of a good network. In fact, firms offering this type of service are successful because they have established their companies among the right connections and know the prominent people in different industries.

It is a wise decision to hire professionals to perform the global procurement services for your company. This is because they are highly qualified to do the job and they are equipped with experience. But more importantly, they already have the network. They know the names of the suppliers or manufacturers to transact business with. They are aware of the market prices. They have the proper direction to do the global work for you and your company.

The Relationship that is Built upon Corporation Procurement

Corporation procurement builds a mutually beneficial business relationship between a company that requires goods or services and a seller that supplies those. They work in partnership to achieve their goals. The vendor aims to profit while the firm hopes to reduce its operational costs through this corporation procurement process.

When does the partnership begin?

The partnership begins right after the awarding of corporation contracts. This is also immediately after the negotiation on procurement contracts has been settled. What both parties now look forward to is an error-free business process. Vendors must not get too excited, though, to make sure of this.

After the receipt of the signed contracts, what is next for business owners?

To be able to make a name in the world of corporation procurement, business owners, particularly the small ones, must ensure that they will be able to deliver the goods and services in a timely manner so as not to affect the workflow of the companies they “work” for. In addition, they must guarantee quality in their products and services. On top of all these, they must make sure that everything that is stipulated in the agreement is met. This will help build integrity and who knows, may be the factors that will pave the way for a longer partnership.

After a successful participation in the corporation procurement process, what is the important aspect of the corporation procurement that must not be taken lightly by the entrepreneurs?

It is the contract monitoring. Yes, buyers of the companies do this. They do not spend a huge sum of money for nothing. They expect to receive everything that is mentioned in the agreement. No alibis are acceptable. Their everyday operation is critical to the survival of their own businesses; hence, they keep their eyes on the performance of the companies (vendors) they work with. Therefore, sellers must read and understand the contract thoroughly and must carry out everything that is expected of them by all means.

All things considered, who benefits the most from corporation procurement?

Both of them earn the benefits. The corporation gets the contract price that it targets to be able to lessen the operational costs to a reasonable percentage. It also obtains the goods or services it requires. The business owner, on the other hand, is able to win a procurement contract that it has dreamed of for a long time. Especially for small business owners, this is the deal that will give more income opportunities for them. This is also the bond that will ensure the stability of their company for years to come.

Corporation procurement is an important process not only to companies that require them, but also to vendors that need them. It may involve a complicated strategy, but receiving an invitation or reading an announcement to participate in this is what they always look forward to. It is because they see it as a great income opportunity. It is also because they view it as one essential factor to stay.