Growth in Challenging Times

A recent Victory in Procurement^SM study by American Express OPEN* found that seeking Federal contracts is a proactive growth strategy for successful business owners –both those who are currently active as well as those who are still seeking greater success.

The study states that “…When asked why they entered into the federal procurement marketplace, the plurality of active contractors…all say that entering into the Federal marketplace is a conscious growth strategy for their business. (39% of active contractors, 37% currently inactive and 39% non-contractors all say this is their main motivation). “

“Coming in a close second is the conviction that they have a product or service that will fill a need for a particular agency (34%, 29%, 27%, respectively). Few are entering into federal procurement as a buffer against the ebb and flow of other business. Just 16% of active contractors, 21% of currently inactive and 21% of non-contractors give this as their main reason for seeking Federal contracts…”

Bid to Win

While many business owners focus on socio-economic certifications as door-openers (small business, veteran-owned, Minority-owned, women-owned, etc.) the real secret to success is selecting the right bids to pursue. The study further states that “..Successful contractors have bid on an average of 19.5 prime contracting opportunities over the past three years…[and] …Successful contractors have won an average of 8 times during that time.”

Subcontracting Benchmarks

Contractors are also active in seeking subcontracting opportunities, participating an average of 7.9 times over the past three years as a subcontractor on a proposal submitted by another bidder.

Many contractors get distracted by certifications, paperwork or other hurdles and fail to identify appropriate opportunities, plan, position and then subsequently fail to bid frequently. The study takeaway is that “…Successful small business contractors are thus significantly more active bidders, for both prime and subcontract procurement opportunities…”

*For the full study and eye-opening statistics visit: https://www.openforum.com/governmentcontracting/