Check for public sector funding before allocating time and resources!
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
Public sector funding is currently very tight in some areas, but it is abundant in other areas. Sometimes, contractors are asked by one department of government to readjust their pricing for services because of budget constraints while another department in the same public entity announces attractive new contracting opportunities. It can be baffling!
The reality is that government funding is segmented. One program area may have no funds while another division has more funding than it needs. Successful government contractors learn quickly to spend time and resources offering solutions only to decision-makers in areas where funding is readily available.
For instance, there is currently an abundance of money for new construction. IT product and service providers should focus there rather than spend time with officials in other areas whose budgets have been reduced. Additionally, there is ample funding for network security, broadband, energy conservation, public safety, emergency services, training and infrastructure. Most service offerings will fit into one of those categories.
Federal programs and/or mandates will always have funding at the local levels in all states. Emergency services, health care and education will continually be funded. And legitimate, tested, low-risk, cost-saving solutions will be funded in almost any public jurisdiction at any time.
As contractors plan public sector go-to-market strategies, the first consideration should be what areas of government to target. Not only is it important to choose certain jurisdictions, but it is also critical to understand as much as possible about budgets and when fiscal years end and begin. Contractors with products or services related to disaster cleanup, citizen outreach, health services or public safety should have already contacted emergency directors in border states vulnerable to hurricanes. This is hurricane season and funds will be available on short notice when there are needs.
Good information is of utmost importance when allocating time and resources. Public sector data is readily available. All one has to do is ask.
Once a jurisdiction is targeted, the following questions must be answered:
- How much funding is available?
- How can it be used?
- When? What is the timeline?
- Who has spending authority?
- What problem and/or needs have been identified?
- How does the public entity prefer to make purchases?
- What is the historical background?
- What is the political environment?
- Who are the stakeholders and influencers in the spending process?
- How does one get an appointment to discuss offerings?
Government decision-makers expect prospective contracting partners to be knowledgeable. Information gathering, which includes an understanding of public sector funding, is a key component to success in capturing government business.
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.
