The Obama Administration on Monday announced its plan to cut federal spending by $3 trillion over the next decade. These spending cuts are expected to decrease the funds available for government contract awards and drive up competition for federal dollars. In order to succeed in federal contracting, many vendors will need to find new ways to stay competitive.
Although the Federal Acquisition Regulations emphasize technical capabilities and past performance over price, offering a lower bid can help an otherwise qualified vendor stay competitive. It’s imperative that vendors evaluate their price structure in order to offer government buyers the best discount possible. In addition, despite the spending cuts, the federal government must still strive to award at least 23% of its allotted contracting budget to small businesses, making it more important than ever that small businesses register and bid for federal contracts. Large prime contractors are also still required to subcontract work out to small businesses when the estimated award value exceeds the simplified acquisition threshold.
Vendors are also urged to identify their target market and build relationships with the government agencies most likely to buy within their industry. US Federal Contractor Registration recommends vendors use all the tools available to them to determine where the federal government is spending its money, which agencies buy the most in their industry and who their competitors are for federal contracts. Using tools such as US Federal Contractor Registration’s Free Government Market Assessment will allow vendors to target their marketing efforts where they will be most effective.
Contractors in some industries may actually see a boost in revenue due to a reduction in federal spending. Increased competition for government contracts is expected to also increase the number of protests raised by losing bidders. More frequent and aggressive bid protests will create opportunities for law firms specializing in government contracts, from both government and private sector clients. Unlike other industries which normally thrive as the government spends more, government contracts practices are rejoicing as more spending cuts are announced. In order to take advantage of these opportunities, interested firms should ensure their CCR and ORCA registration are up to date and should keep informed on which agencies in their area are awarding government contracts through websites like FedBizOpps.
US Federal Contractor Registration also advises businesses to be prepared for FEMA contracts when they become available. Since FEMA purchases products and services from a wide range of industries and may need to award contracts quickly at any time, completing the required FEMA Vendor Profile and CCR registration ahead of time will allow business owners to respond quickly when opportunities become available.
By giving businesses the right tools and information, US Federal Contractor Registration believes they can help many contractors succeed during this dry spell in federal spending. Just as many businesses withstood reduced consumer spending by being flexible and focusing on their target market, so too can vendors withstand reduced spending by our federal government.