If your business is trying to get a government contract, you’re in an interesting position. You will likely have to bid for the contract, and you will need to understand how you’re going to be paid and when.
The government has its own way of handling contracted work, which is why it’s essential that companies are aware of the ins and outs of working with a government agency. While a government contract can be a major opportunity for significant sales or income, this kind of contract can also be tricky to manage.
What’s a government contract?
At its core, a government contract is just a contract between your business and the local, state or federal government. Since the government is highly regulated, you will need to stay in strict compliance with the rules of the contract. If you don’t, you could end up being barred from bidding on government jobs in the future.
Usually, government contractors specialize to reduce costs. Depending on the kind of business you run, you may focus on working with the government and its favored subcontractors, so that you have a better opportunity for lucrative contracts in the future.
What’s the benefit of a government contract?
The main benefit of a government contract is that the government tends to open doors for those it uses for services and products. If you contract with the government, you may be able to meet new people and have options to grow your business.
How should you go about bidding on a government contract?
Usually, the best option is to identify the contracts that you would have the best chance of fulfilling. For example, if you are a design agency, you may want to bid on a website overhaul for the local government. You wouldn’t likely want to pursue a contract requiring something out of your scope of services, like design services as well as marketing outreach (if you don’t offer it).
When you’re ready to bid, you’ll want to build an excellent proposal that explains what your company is and why you’re better than the alternatives. This will help you be successful when you’re aiming to have the winning bid.