Many businesses find success with one or two large clients. Although it can be difficult for a smaller business to land a large, federal contracting client, it is possible. Most important contracts are landed with complex and thorough business proposals. The point of the business proposal is to inform the contract customer what you are going to do for them, how much you are going to charge them, and when the entire project will be completed. The best contract includes detailed information and data. Too often, proposers miss important aspects of the proposal.
This is one of the most important parts of the proposal. It may even be the deciding factor after qualifications and job tasks are weeded out. Although the lowest price does not always win, it does make a business proposal more appealing. Either way, once you come to your quoted price of services, stick with it and point out why it is that price. If you can prove the services are worth the price quoted, you will have a better chance at gaining the contract.
Proposal software can be extremely beneficial when coming up with a realistic price. You do not want your price so high that the government company never even looks at the rest of your proposal. You also do not want to low ball it so much that you miss out on necessary funds. It can be expensive to create a thorough business proposal, making the first attempt and its accuracy important. The cost to prepare a complex proposal requiring a significant system and product design to be submitted for a program valued in the tens of millions of dollars or more, is frequently in the range of 1 to 2% of contract value.
Too many companies lay out the tasks they will complete for the quoted price, however, not enough back them up with experience. If you promise to do a job, but have little experience in it, the job is not as valuable. As of December 2016, the federal government had awarded $97.8 billion out of a total $405 billion to small businesses in Fiscal Year 2016, exceeding the 23% goal for the year. Many of these successfully landed contracts used proposal software that provided accurate contract pricing and a basis of estimate software, specifically laying out the experience of the business.
Know your client
Before submitting any government contract or business proposal, ensure that you know what they are looking for. It can also be helpful to know which companies have successfully received contracts in the past. Your proposal software program can help with acquiring this important information.
In Fiscal Year 2015, the government agencies that awarded the most contracts to small businesses were the Department of Defense ($52.7 billion), the Department of Veterans Affairs ($6.3 billion), and the Department of Health and Human Services ($5 billion). It can also be helpful to know what their contract budget is. If your pricing software comes up with a quote price above their entire budget, you are not likely to land the government contract.
Information about your business and employees
Government departments are prevented from working with businesses that are not legitimate. If poor business or hiring practices are found, for example, your contract is often voided. You can improve your chances of landing a contract with the federal government by including information about your businesses goals and founders. You can also include relevant information about the employees that will be working on the project, if acquired.
Landing a government contract can be a great way to quickly grow your business. However, these contracts are extremely competitive and require expensive and lengthy business proposals. Even a minor mistake inside of your proposal can prevent you from obtaining the contract, and millions of dollars in sales. Although using a proposal software program for your proposal can be expensive, it will usually save you money by reducing your mistakes and increasing your chances of landing the contract.