Is To Low Bid To Win Government Contracts

By now, you are already probably aware that smaller businesses enjoy an exciting opportunity to work with the government

. And by now, you'll probably be playing with strategies on winning government contracts. After all, the government is definitely, your biggest possible customer.

The International Association of US Government Contractors reports that the regular federalspending is at $530 billion. A $787 billion budget is also reported being the federal stimulus spending. In total, you've more than $1.3 trillion worth of government spending to benefit from.

If ever the figures above are not enough to make you strive towards winning government contracts, then perhaps this truth will: the government allocates 39% of the overall spending for small businesses. Small enterprise owners like you should consider a target in winning government contracts. The federal government is enabling small-scale businesses to achieve the opportunities in winning government contracts through supporting and promoting their growth.

The Myth

If you're a small business owner, you almost certainly have doubts if the government will give time to you. There are also many big players around who have experiences and may offer the lowest bid. Now how will you win against them?

You really don't have to. You don't absolutely need to push yourself on offering the lowest bid in winning government contracts. The simple truth is being the low bid is not that essential in doing business with the government. Statistics show - and has proven - that 80% of the time, the low bid doesn't win with the government.

Best Value versus Low Cost

What exactly is then the technique in winning government contracts? If it's not about being the lowest bid, then what would make you win contracts with the biggest customer on the planet?

Just like any other businessman, the government would want value with regard to their money. But this does not mean they favor the provider who offers the cheapest. Rather, it is about the number of value and cost - the government is also looking for cost effective, instead of low cost.

Given that the government allocates 39% of their overall spending to smaller businesses, then there is certainly plenty of room for you to explore. And, competing the Big Boys and also the other Fortune 500 companies can be useless for there is another percentage in the pie that is allocated for them.

Therefore, in winning government contracts, you simply have to know your services and/or products and then present them in a very exciting way. You have to be competent to convince the government that you will be the best provider of this kind of product or a service. Moreover, you must manage to imply to them that you could offer the government with the cost effective for their money. This isn't just being the lowest bidder. You should concentrate on quality - in tandem with cost. That is the easiest way in winning government contracts.

Is To Low Bid To Win Government Contracts

By: Chip Ellis

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