A recent Victory in ProcurementSM 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/