In this episode of FedBiz’5 we are discussing the importance of knowing your market and not chasing solicitations as your first step. You want to know who buys what you sell, and how they buy.
Of course, your initial step is to have your SAM and DSBS registrations complete, compliant, and optimized. It is also important to investigate what set-aside certifications or GSA Schedule categories you may qualify for.
However, to immediately thereafter start digging through SAM.gov for open solicitations as your first step is probably not your best recipe for success.
The vast majority of the federal spending does not go through solicitations. In fact, approximately 10% does go through solicitations. So, it is more important initially to do research and that research can encompass a lot of different things.
As in any successful business you need to know what your market is. You need to know who your market is. You must have a clearly defined plan going in. Who is spending? How are they spending? And in the federal market that is even more important because you want to be able to focus your energy.
Who is buying the most of what you sell? What offices, what people, who should you be reaching out to? This is about research and then creating relationships.
An important first step before entering any market is to learn more about the market opportunity, and who buys what you sell. The RADAR report (Real-Time Advanced Data Analysis Report) is a deep dive into the federal government marketplace based on a keyword search through award history associated with the products and/or services you sell.
The RADAR lets you know you the ‘who, what, when, where, and how’ of federal buying for your products and/or services, including the procurement offices that issue the most awards and how to contact them.
Under the Micro-Purchase Threshold purchases under $10,000 can be awarded without solicitation.
Under the Simplified Acquisition Procedures threshold, small businesses must be considered for all federal awards under $250,000 if there are two or more small business offerors expected to compete.
These markets are your best leaping off point to get started in government contracting and most of this business is awarded through relationships.
To establish these relationships, you need to know who is buying what you sell and how they buy it. In addition, subcontracting is another route where relationships become key. So, there are many ways to approach the federal market that are not necessarily just going after those formal solicitations.
If you plan to spend time and resources to engage in government contracting, let it be on research first so that you understand your path of least resistance and do not spend your efforts in the wrong place.
Just as in your commercial business, the key to success in government contracting is educating yourself on the market and building relationships with those who buy what your sell.
FedBiz Access offers research and engagement strategy sessions, as well as marketing packages to targeted buyers at the local, state, and federal government levels. FedBiz Access has over 21 years of experience working wi
Stay Connected:
Don’t Start with Solicitations - FedBiz5_Episode 13
Jesse Sherr 0:02
My name is Jesse, and I work with small businesses in the government marketplace.
Jesse Sherr 0:06
You are listening to FedBiz'5, where you get informed, get connected, and get results on everything government contracting.
Jesse Sherr 0:16
Today, we welcome back Anthony D'Attore, who I'm pretty sure has been with FedBiz access longer than the furniture.
Anthony D'Attore 0:23
Yes - HaHa!
Jesse Sherr 0:27
A government contracting research aficionado, he is always dropping useful knowledge for our listeners that they can use.
Jesse Sherr 0:35
Welcome back, Anthony.
Anthony D'Attore 0:36
Thank you very much.
Jesse Sherr 0:37
Absolutely. It is great to have you. It is my understanding, often when businesses get involved in government contracting, they are told that they need to register in SAM, check eligibility for set asides, and then immediately pursue sam.gov for bid opportunities, and start bidding.
Jesse Sherr 0:54
So, would you say that this is the best method?
Anthony D'Attore 0:56
I'd have to disagree with that as a method. I mean, yes, get your registrations. Yes, by all means, if you're eligible for any kind of set asides you should pursue those as well. However, jumping right into solicitations is probably not the best recipe for success.
Anthony D'Attore 1:11
The vast majority of the federal spending does not go through solicitations. In fact, only about 10% does go through solicitations. So, it is more important at that point, you want to be able to do research, and that research can encompass a lot of different things.
Jesse Sherr 1:27
Like actually the coined 'test before you invest' kind of thing, right?
Anthony D'Attore 1:31
Oh yeah, I do agree with that. And, in order for you to be successful in any kind of business, right, you need to know what your market is. You need to know who your market is. You have to have a clearly defined plan going in. Who's spending? How are they spending? And in the federal market, I think that's even more important because you want to be able to focus your energy.
Anthony D'Attore 1:51
You don't have enough time in the day for you to go after every government branch.
Jesse Sherr 1:56
Okay.
Anthony D'Attore 1:56
So, you need to focus. Who is buying the most of what you sell? What offices, what people, who should you be reaching out to?
Anthony D'Attore 2:03
The 90% that does not go through solicitations is about those buyers knowing who you are, right, so that you get these invites to bid. That is a lot stronger than with no past performance and no experience going to try to stand toe to toe and duke it out with companies that may have much deeper pockets, may have a team of people that all they do is read solicitations and respond to them. So, it is pretty competitive on that end, and the lion's share of the market is happening elsewhere.
Anthony D'Attore 2:36
Right.
Jesse Sherr 2:36
You need to know what that is.
Jesse Sherr 2:37
That definitely is information I believe that our listeners can appreciate. As far as like, I mean, that's why they call it a bid, right? You are working to accomplish and get the awards for these, correct? I mean, I'm just trying to get a better understanding of, mostly so our listeners can appreciate because I know like the lingo here, you know, we have what are they called?
Anthony D'Attore 2:57
RFQs, RFPs, right? Well again, those are going to be formal solicitations.
Anthony D'Attore 3:03
There is a whole market, and it is typically the $250,000 or less market, that is probably a better leaping off point, and the vast majority of that is being done through relationships. But you cannot establish those relationships if you do not know who is buying what you sell or where they are. And also, you know, subcontracting is another route where relationships become key. So, there's many ways to approach it that are not necessarily going after those formal solicitations.
Jesse Sherr 3:40
Excellent. That is very informative, and I know our listeners really appreciate it. I know I do!
Jesse Sherr 3:45
But I’ve got to say, at the end of the day, if you are not armed with that research and that knowledge moving forward, then you will lack direction and you won't be able to establish those relationships. You won't be able to find that information, you know.
Jesse Sherr 3:57
And get success if you don't have that kind of stuff. That's excellent.
Anthony D'Attore 4:00
That's right.
Jesse Sherr 4:01
I always ask one more final thing. Is there any little niche or detail that you could give our listeners before we end our call today?
Anthony D'Attore 4:09
I would invite people certainly to call. I'm available. I am more than happy to have a deeper discussion on the matter.
Jesse Sherr 4:16
Now we're giving them ammo and everything to really get out there and do what they need to do, and show them that you are available for our listeners. I think that's fantastic! I've learned something a little extra today as well.
Anthony D'Attore 4:27
Thank you. I appreciate that.
Jesse Sherr 4:29
This concludes this week's episode of FedBiz'5, where you get informed, get connected and get results.
Jesse Sherr 4:40
Today's podcast is sponsored by FedBiz Access. Government contracting made simple. Visit them at FedBizAccess.com or contact them at 888-299-4498