Information, involvement critical for contractors seeking to win winning municipal business
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
The nation’s survival depends on reliable energy so the federal government is awarding large sums for cities to develop energy assurance plans. Cities are also receiving money for energy efficiency programs, public safety, broadband, health care, technology upgrades, public housing renovation and environmental initiatives. Sounds good…but few cities can handle that many projects at any one time.
At the same time that stimulus projects are expected to be launched, cities must also deal with problems and initiatives related to infrastructure, aging fleets, communications systems, water, waste, transportation, emergency services and the homeless…not to mention recruiting, training and retaining good employees. And, while it sounds like total overkill…mayors must deal with politics, constituency outreach and the media. It takes unique leadership skills to effectively manage large city governments.
Many private sector firms, especially small businesses, derive a large percentage of their revenues from contracting with cities. Cities purchase almost every type of product and/or service at some time during the year.
Most cities invest heavily in providing support and procurement assistance to small and minority local businesses. Jobs are critical to a vibrant economy and cities do their part to see that local firms get the attention they deserve. That not only makes good economic sense, it is politically sound.
Experienced contractors understand that one of the keys to winning municipal contracts is the ability to partner with well-connected and highly respected local firms. Once any large opportunity is announced, the race is on to see which prime contractor can execute exclusive contracts with the best local partners.
Cities have small and minority contracting goals so small companies are always attractive as local partners. And, it is usually the small local firms that can best provide the hard-to-come-by information that prime contractors so desperately need to be successful. Small firms know that to survive and to be attractive to prime contractors, they must be able to provide exceptional value, and many of them do that by staying close to city staff and decision-makers.
What is the most important information a prime contractor needs to win municipal business? Here’s a quick list of some "must have data."
- Why is the city contracting for this type of work?
- What is the history behind the opportunity?
- Who are the important stakeholders?
- Who will write the RFP?
- What is the funding source?
- How much funding has been allocated?
- Who will oppose the opportunity and why?
- What are the politics that will surface?
- How do taxpayers and the media regard the business opportunity?
- Who are the best-connected subcontracting firms? Why?
- What percent of the business does the city want allocated to small local firms?
- Who will be a part of the evaluation or decision-making team?
- What is the last step in the process…i.e., do elected officials get the last vote or not?
- Where are the land mines to avoid?
Good advice to all prime contractors seeking work with cities in 2010:
- Find the opportunity early by monitoring federal funding flows.
- Select great subcontractors as quickly as possible.
- Get involved with the local community immediately.
- Be visible. Be credible. Be involved.
- Understand that the mayor will not be the decision-maker but will most likely take advice from key staff members.
- Present proposals with outstanding value propositions by letting local subcontracting partners have lots of input into the final product.
Mary Scott Nabers is president and CEO of Strategic Partnerships, Inc., a 15-year-old procurement consulting and procurement research firm headquartered in Austin, Texas.
