It’s all about competing well! Can’t compete? Get help…get better…or don’t waste the time!
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
Competition has never been keener in public sector marketplaces. Large firms that never considered selling to government in the past have moved quickly to "learn the ropes"… and many are quick learners. Others are not…and can be found wondering what is wrong and why they are not winning.
Cities, school districts and state agencies with millions in stimulus money to spend are finding that hundreds of vendors are clamoring to get their attention. Proposals flooding into cities, state agencies and school districts are good, competitive and filled with extremely attractive benefits.
So, what is the takeaway to be learned? Competition matters! In fact, nothing matters more than competition. It is the difference between success and failure.
The most competitive government contractors will win the lion’s share of upcoming opportunities throughout the country. And, the contracts won will be multi-year engagements…so losing contenders will suffer for years to come.
Becoming more competitive involves more than cutting costs. It is not that easy. Being seriously competitive requires knowing more than other bidders, understanding government better, building solid relationships and offering value propositions that cannot be topped.
Some firms cannot, or will not, make the competitive changes that are required without outside assistance. Needs are too great and it may take too long to do it internally. Some of the most critical components for improving competitiveness include the following:
- An objective analysis of the competitiveness of the company as compared to likely competitors;
- Comprehensive research and data related to past bidding practices;
- A serious evaluation of how sales teams are presenting the services and/or products they offer to public sector decision-makers;
- Political guidance depending on the type of opportunities being pursued and the governmental jurisdiction of focus, and
- An exceptional go-to-market strategy.
A competitive enhancement plan must be developed. And, once that turnaround plan is developed and implemented, there is still one last thing left to do. Someone must take an objective look at what is happening internally in the company’s legal division. Many attorneys, unfamiliar with government contracting, are literally ensuring that their sales teams cannot compete.
Government contracting often causes corporate legal fear that becomes debilitating. When this happens, and it is common, attorneys insist on putting too many disqualifications in bid documents or proposals.
It is advisable for someone familiar with government contracting to brief corporate attorneys about terms and conditions (Ts and Cs) that can be expected in public bid documents.
Many proposals being submitted by large capable firms are designed to self-destruct as soon as government purchasing departments read them because attorneys have taken too many exceptions. Too much legal input at this stage can appear to be a "red flag" or at least it appears that the public entity would not be able to negotiate with the firm. When this happens, the proposal is simply eliminated from consideration. Many outstanding bid documents never reach the evaluation team because of something this simple.
Best advice:
- Take a serious look at contract Ts and Cs that competitors and other government contractors are accepting;
- Analyze how they have negotiated contract language;
- Understand that government is different and the contracting process is different and many public entities will never totally eliminate certain Ts and Cs;
- Solicit copies of existing similar contracts to determine what Ts and Cs the public entity will most likely want to impose and do NOT bid if there are too many deal-killers; and
- Understand that public entities will negotiate once a company has been chosen, but pointing out too many legal objections in the initial proposal will ensure that your sales team never makes it through the procurement process…i.e., there will never be an opportunity to negotiate.
Government contracts are large, multi-year engagements and most are renewed when the contract ends. Before walking away from this lucrative marketplace, it is advisable to seriously consider all the options. Government contracting is only going to be larger in the years to come…and the marketplace will exist forever.
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.
