Who in the federal government should a small business reach out to so that they can build a relationship? It takes targeted market research to identify the federal agencies whose needs most closely align with your core competencies. Then, it takes grit and patience to build win-win relationships.
In this episode of FedBiz’5 we host Senior Contracting Specialist and former Federal Government Contracting Official, Frank Krebs, to discuss the importance of building relationships with government buyers and contracting officers.
Once targeted agencies are identified, it's important to reach out directly to these buyers and contracting officials within the federal agencies that you want to work with. It is also important to connect with the agency’s Office of Small and Disadvantaged Businesses Utilization (“OSDBU”).
The role of the OSDBU is to assist and advise small businesses and ensure equal treatment and the opportunity to compete and win a fair amount of the agency's contract dollars.
Target market research can help you identify who buys what you sell, how they buy, and how much they paid for it. There are detailed databases in the market such as Market Intel and FedBiz Findthat can help you quickly identify your market opportunity. This can save you valuable time and resources.
It’s important to remember, no matter what type of business you are in, not every agency is a good fit for you. Every small business must determine on their own where they best fit and focus on those few agencies. This may only be one or two agencies to start. Therefore, your outreach must be targeted to those specific few agencies. Otherwise you're spreading yourself too thin, which will not result in success, only frustration.
Once a business determines the agencies they want to focus on, how should they best prepare for the initial call with the buyer or contracting official?
1. Identify the reason for the call.
It can be about a specific open procurement opportunity. It can be about a prior procurement. It can be about future acquisition planning. It really doesn't matter, as long as you have a reasonable purpose for making the call and opening the conversation.
2. Have a compelling opening statement.
A good opening statement should last about 25-30 seconds, as any longer you run the risk of losing the attention of the buyer. You also must rehearse this statement prior to calling. You should first introduce yourself and the name of the business, the reason for the call, the fact that you are reaching out, why you want to do business with his or her agency, and you want to let them know why they should want to do business with you and your company.
Here's an example of a good opening statement. "Hi, my name is Frank Krebs, and I'm with XYZ Inc. I'm calling regarding a contract you recently awarded. I've identified your agency as an agency that aligns very closely with my company's core competencies. We're a certified veteran-owned small business that specializes in landscaping services, tree trimming, and removal services. And I'd like to understand how my firm can help you meet your agency's mission and assist the people that you are tasked with serving."
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Transcript - Episode 40: Engaging Government Buyers
Jesse Sherr 00:03
My name is Jesse, and I work with small businesses in the government marketplace.
Jesse Sherr 00:06
You're listening to FedBiz'5, where you get informed, get connected, and get results on everything government contracting.
Jesse Sherr 00:16
Hello, and welcome to another episode of FedBiz'5. In this episode, we will be discussing the benefits of reaching out to government buyers, and how best to accomplish cold calling to the government .
Jesse Sherr 00:27
Today, Frank Krebs, senior contracting specialist. Welcome back, Frank.
Frank Krebs 00:32
Hey, thanks Jesse. It's good to be back, as we're going to look today to help small businesses understand the importance of building relationships with government buyers and contracting officers.
Jesse Sherr 00:44
Wonderful. All right. So, let's first discuss who in the government a small business should be reaching out to so that they can build a relationship.
Frank Krebs 00:53
Okay, yes. It's very important for small businesses to reach out to government buyers within the federal agencies that they want to do work in. That would be the agencies that you are targeting. No matter what type of business you are, not every agency is a good fit for you. You need to do some research. Research those agencies and identify the ones whose needs most closely meet your core competencies.
Frank Krebs 01:21
So for example, if you're a tree service company that also does landscaping, well any agency that has a building may need landscaping services. But, which agencies actually have a need for more of your services? The National Park Service or USDA Forest Service come to mind for any tree service company.
Jesse Sherr 01:40
Yeah, those definitely sound like good ones.
Frank Krebs 01:43
Yeah, they would be two great federal agencies that have business in that line of work should target, and as for state or local government, I would include any department or divisions of parks and recreations or any local agriculture agencies.
Frank Krebs 01:58
Excellent. So, it sounds like every small business must determine on their own where they fit the best and focus on that agency or agencies. Right?
Frank Krebs 02:07
Right, that's absolutely correct. Every small business needs to focus their attention on one or two agencies max, at least until they have won a few contracts and feel more comfortable moving into other agencies. Therefore, your outreach must be targeted to those specific few agencies. Otherwise, you're spreading yourself too thin, which will not result in success, only frustration.
Jesse Sherr 02:30
Oh, yes. So once a company determines the agencies they want to focus on, what do they need to know when reaching out to the buyers and contracting officers of said agencies?
Frank Krebs 02:41
Good question, Jesse. The first thing I always tell folks is they need to identify a reason for the call. It can be about an open procurement. It can be about a prior procurement. It can be about future acquisition planning. It really doesn't matter as long as it's simply the opening to begin a conversation.
Frank Krebs 03:02
Now, second, you must have a compelling opening statement, you also must rehearse this statement prior to calling. A good opening statement should last about 25 to 30 seconds, as any longer you run the risk of losing the attention of the buyer. You should first introduce yourself and the name of the business, the reason for the call, the fact that you are reaching out to this buyer as you want to do business with his or her agency, and you want to let them know why they want to do business with you and your company.
Frank Krebs 03:33
Here's an example of a good opening statement. "Hi, my name is Frank Krebs, and I'm with XYZ Inc. I'm calling regarding a contract you recently awarded. I've identified your agency as an agency that aligns very closely with my company's core competencies. We're a certified veteran owned small business that specializes in landscaping services, tree trimming and removal services. And I'd like to understand how my firm can help you meet your agency's mission and serve the people that you are tasked with serving."
Jesse Sherr 04:05
That's a great one man. Definitely is something that would gather the attention of the government buyer, but wouldn't it be better to ask if they have any contracts that meet your core competencies?
Frank Krebs 04:16
Jesse, that's exactly what most people would expect and what the vast majority actually do. But remember, you're reaching out to a buyer who works for an agency that you've targeted as a good fit for your firm. As such, you want much more than a single contract. You're wanting to build a relationship with this buyer.
Frank Krebs 04:35
You want to become a trusted resource that the buyer can turn to if they have a question within your line of work. As with most contracts in the government, they do stem from existing relationships, same as with the commercial world.
Frank Krebs 04:52
Additionally, you will want to highlight to the buyer any socio-economic categories that your firm qualifies under, as these can serve to be a great initial entry point into an agency. I use veteran owned in my example, but include any and all that qualify, including women-owned, minority-owned, 8(a), or HUBZone, in addition to veteran-owned small business.
Jesse Sherr 05:17
Yes, definitely a good point too. Great way to get in the door. So, when building a relationship, what are some key points to remember?
Frank Krebs 05:25
Well first, ask questions of the buyer, you know ask how they buy services or the products that you offer. This will tell you very important data that you will need before obtaining your first contract with a targeted agency.
Frank Krebs 05:39
Now as for referrals, ask can they provide you with the names of other buyers in thier agency, anyone else that handles similar types of contracts? Ask when they plan on any future procurements in your field. And most importantly, let them know that you are very interested and point out the value that your company brings to the table.
Frank Krebs 06:01
For a good relationship to thrive, it must be a win-win for both parties, you will win with contract awards. They win because of the value you bring to their agency. Maybe it's your firm's experience, your attention to customer service, the use of innovative technology, or specialized equipment. No matter what your value proposition is, make sure this gets across to the buyer.
Jesse Sherr 06:26
Very true. Wonderful information, as usually. Appreciate it. Is there anything else when reaching out to an agency you'd like to mention?
Frank Krebs 06:34
Yes, just make sure to thank them for any information that they have provided you. This goes a long way to ensuring a long standing, good relationship. Thank them both on the phone and follow up with the thank you email. This email should also be a reminder of any tasks that you discussed, any action items, and it is the opportunity to provide the buyer with a copy of your Capability Statement.
Frank Krebs 07:00
We've discussed the value of the high quality Capability Statement in prior podcast. But remember, this is your corporate resume and is an item that government buyers like to retain for future reference.
Jesse Sherr 07:14
Well as usual, always the greatest information. And yes, high quality capability statement and it's just another opportunity to hand it out as you said.
Jesse Sherr 07:24
All right. Well, I think that wraps up today's episode. I appreciate you coming on. I am sure our listeners do as well. Thank you so much Frank.
Frank Krebs 07:32
Appreciate it Jesse. Take care.
Jesse Sherr 07:33
You got it.
Jesse Sherr 07:34
This concludes this week's episode of FedBiz'5, where you get informed, get connected, and get results.
Jesse Sherr 07:45
Today's podcast is sponsored by FedBiz Access. Government contracting made simple.
Jesse Sherr 07:50
Visit them at FedBizAccess.com or contact them at 888-299-4498.