The Government Bid Management Guide

August 26, 2021

How to apply for government contracts up for bid

Have you been typing ‘gov bids’, ‘US gov bids’, or ‘government contracts for bid’ into your search engine? If you have, it’s likely that you’re wanting to learn more about government bids. This could be how to find one, how to respond, and how to win.

Luckily for you, you have come to the right place. This blog is your ultimate government bid management guide. Here, it will answer all your questions and give you some helpful information on government bids.

Why should I bid on government contracts?

If you’ve never bid for government solicitations before, you may be wondering what’s required and why bother. Well, there can be many advantages when applying and bidding for government contracts.

Guaranteed Prompt Payment

When applying for government contracts for bid, you can take relief in the fact that you are guaranteed payment. This is one of the biggest advantages when bidding on U.S government bids. This is because the government must act in accordance with the Prompt Payment Act.

When a vendor submits a valid and proper invoice to a federal agency, they must make the payment on time. ‘On time’ means payment is due on whichever of these four conditions applies:

  1. 30 days after the agency has received a proper invoice
  2. The date specified within the contract
  3. Under terms when the vendor has offered a discount and the agency has accepted those terms
  4. On an accelerated schedule when the conditions for accelerated payments apply.

If the agency does not comply, the payment is late. In this case, it will result in the agency paying an interest rate. This is no doubt reassuring for any small business when becoming a vendor for an agency.

Gain experience

The next advantage you get when applying for government bids is that you gain experience. This is crucial, as in order to progress onto larger contracts, you need to build up experience. Buyers expect 2 – 3 contract examples, typically within the last 3 – 5 years. They are expected to be similar in scope and complexity to the ones you are going for.

Securing contracts, such as set-aside contracts, if you’re a small business can build your experience. The more contracts you win and deliver, the more experience you have. The more experience you have, the bigger the contracts you can go for. The bigger the contracts you go for, the bigger your business will grow.

Secure a pipeline of work

The U.S federal government is one of the largest procurers of commodities in the world. They spend over $500 billion on goods and services via solicitations. Securing contracts can create a pipeline of work for your business.

Government solicitations are a viable stem that you should consider in order to grow your business. The government is also making more of an effort to secure more local supply chains. Therefore, they’re looking to award contracts to smaller businesses. There’s never been a better time to start going for government contracts for bid.

Before you begin…

So, now you know just some of the advantages of applying for government contracts for bid. If it’s something you’re interested in, you may be wondering what’s next. Well, to be able to apply for government bids, you need to do a few things to be eligible:

  • Know your DUNS number

You will need to have your organization’s DUNS number to hand to bid on government contracts. This can be found on the Dun and Bradstreet website. This nine-digit identification number is for the physical location of your business.

  • Have your NAICS code

In order to start bidding, you’ll need to match your services/products to a NAICS code. The NAICS code stands for North American Industry Classification System. A business will have a primary NAICS code or multiple depending on if they have multiple services or products. To find your NAICS code, view the list on the U.S Census Bureau.

  • Register with SAM

You must register with the government’s System of Award Management (SAM) to participate in government contracting. Becoming a registered vendor with SAM eliminates the need to enter the same information over and over. This streamlines the process and increases efficiency when doing business with the government. You will need both your DUNS number and NAICS code to register with SAM.

  • Register with the relevant e-procurement system

Depending on the government bid contract opportunities you’re going for, you’ll need to register with the relevant system. Local, state, and federal agencies likely have their own e-procurement system. You will need to register with these before you are able to respond. These will likely be called ‘vendor bid system’ or something similar. There may even be multiple systems for each state depending on the need or size of the contract. You’re able to find them on their website where they’ll tell you how to register and the details you need.

What to expect from government bids

There are many different forms of government solicitations. Each agency within the government across the country, including local, state, federal, and municipal, uses solicitations. There are four types of government solicitations most commonly used:

Request for Proposal (RFP)

An RFP is the most common form of solicitation you’ll come across when bidding for government bids. Here, a contracting authority is looking for high-quality responses to their questions. Quality matters here. The questions will usually ask for you to demonstrate your experience and have a tactical approach to the contract.

A lot of businesses will outsource their RFP response to an RFP Writer. They are experts in writing winning bids and know how to best convey your company to the contractor. An RFP Consultant can help optimize your success.

Typically, a government RFP is made up of 13 sections. U.S government bids are overseen by the Federal Acquisition Regulations (FAR). The FAR sets out standardized regulations that are used to procure commodities in the public sector. They work together with the U.S General Services Administration (GSA). Their aim is to ensure as much of a fair and transparent solicitation process as possible.

Below are the 13 sections you can expect from a federal government RFP:

  • A – Information to Offerors/Quoters

Here you’ll find basic information about the contract/project on one page. It details when and how to submit your bid and the point of contact.

  • B – Suppliers or Services and Price/Cost

All the pricing information for the RFP is in this section. There will be Contract Line Items (CLINs) and any Subcontract Line Items (SLINs). These are the typical billable items such as cost of supplies, labor, and travel expenses. This section will specify the pricing guidelines and structure such as fixed-price, cost-plus, or cost-reimbursement.

  • C – Specification/Statement of Work (SOW)

The SOW will detail the statement of work expected by the vendor from the buyer during the contract. This section will detail the specifics and important aspects of the buyer’s needs. Here, you will respond detailing how you will cater to their needs.

  • D – Packages and Marking

This will outline the method of deliverables for the government bids. This may include logistics depending on the bid you’re going for. For example, how materials will be labeled packaged, and shipped.

  • E – Inspection and Acceptance

The government needs to safeguard its solicitations from poor-quality work and materials. To combat this, this section will detail the conditions that must be met by a vendor. It will include how it will be inspected, accepted and what will happen if their quality-control criteria are not met.

  • F – Performance or Deliveries

Depending on the contract, here is how, when, and where line items will be delivered.  It’ll state exactly when the commodities need to be delivered. This will be regulated by the Government Contracting Officer.

  • G – Contract Administrative Date

This will describe how the contractor will interact with the vendor. They’ll detail the administration of the contract to ensure both Prompt Payment and performance.

  • H – Special Contract Requirements

You can look at the special contract requirements as any additional requirements for information. The requirements in this section fall outside of the actual service or goods you will deliver.

  • I – General Provisions/Contract Clauses

Any clauses that are required by law are noted here. Although you don’t need to formulate a response, all terms will be contractually binding and obligatory.

  • J – Attachments/Exhibits

Here will note a list of all additional attachments and appendices you need to include in your response. It’s often used in accordance with Section C (SOW) for additional information.

  • K – Representations, Certifications, and Statements of Offerors

A list of requirements will be detailed in this section. You must meet these in order to bid on the contract. This could include:

  • Tax information
  • Ownership of your business
  • The type of business organization
  • Employment practices
  • Certification that you adhere to procurement integrity regulations
  • If you qualify for set-aside contracts.

 

  • L – Proposal Preparation Instructions and Other

In this section, you can expect guidance on how to formulate your government bid response. Here, you’ll find essential information on formatting. It is crucial that you adhere to all requirements stated in this section. If you don’t, it will demonstrate that you are clearly ignoring instructions.

  • M – Evaluation Criteria

Here you will find the main factors your government bids will be evaluated on. It will state what will be considered when awarding the contract and how important each factor is. The highest-scoring proposal will be awarded the contract.

Invitation for Bid (IFB)

For an IFB, a commissioner knows how they want the contract to be delivered. Therefore, they only require suggestions, meaning vendors can’t negotiate. Often, in this case, the contract is awarded to the lowest-priced bidder that meets the minimum requirements.

Request for Quotation (RFQ)

This type of solicitation is focused primarily on pricing. An organization may require you to answer questions about your experience. Your pricing should be competitive.

Request for Information (RFI)

An RFI can be referred to as sources sought. It isn’t specifically a solicitation notice. It’s commonly used as a form of market research before issuing a solicitation.

What is involved with government bid management?

Deciding to respond to government contracts for bid can be a hard decision to make. Depending on the size of the bid, they can take weeks or even months to respond to. You want to ensure the effort you’re putting in is for a good cause.

A bid management consultancy agency can help you decide whether a contract is worth going for. They can also help you with your bid management if you’re low on time. They can help manage the whole bidding process from sourcing opportunities to writing and submitting the bid.

Consider your bid or no-bid strategy

When you’re considering whether or not to go for a contract, there are a few things to consider. Just because you’re eligible for a contract opportunity, doesn’t mean you should apply for it. This can result in a lot of wasted time and resources. For each government contract up for bid you’re eligible for, you should consider your bid or no-bid strategy. This includes asking yourself:

  • Am I eligible?
  • Do I have the necessary certifications/qualifications required?
  • Do I have the experience needed?
  • Can I actually deliver the work if I win?
  • Do I meet the financial thresholds?
  • Can I write a winning bid by the submission deadline?
  • Will I need to outsource any work?
  • Does this fit in with my long-term strategy?
  • Do I offer something unique in the market?
  • Do I have the time?
  • Is this financially viable?

Asking yourself these questions can help establish if an opportunity is right for your business. Once you’ve decided it is an opportunity you think is worth going for, you can begin planning.

Where to find government contracts for bid

Finding the right opportunity for your business can take time. Although there will be high reward for your efforts in the form of winning a contract, finding one is challenging. There are hundreds of websites posting US government bids. However, you may want to consider the following options:

SAM.gov

Federal government contracts for bid that are available to vendors are listed on the beta.SAM.gov site. Government agencies are required to use SAM to advertise all contracts over $25,000. This is a good place to start when you’re looking for contract opportunities. This site also allows you to view previously awarded contracts which can be useful when preparing your RFP response.

Local, state, federal government agency solicitation websites

You may be wanting to start off contracting for local and state governments. In this case, you should be checking their local websites. Here, they should outline how they procure commodities and where you can find contract notices. Additionally, they’ll likely have sites where they post their bids, a guide stating how to register and use the platform.

The Dynamic Small Business Search

The Dynamic Small Business Search (DSBS) is a database that government agencies use to find small business vendors. It’s a website that’s maintained by the SBA. The information you provide when you register your business with SAM is uploaded to the DSBS. So, it’s important to create a company profile as it could lead to your business being contacted. The DSBS can also be used by small businesses to find other small businesses to work with.

GSA Schedules

If you’re wanting to find U.S government bids, looking at the GSA schedules can help. The U.S. General Services Administration (GSA) is a government agency that connects vendors with government buyers. If you secure a solicitation with the GSA, it’s known as getting onto the GSA Schedule. This means you’re approved to do business with the government.

To get in on the GSA Schedule, you may want to report for a Past Performance Evaluation from Open Ratings. This assesses your performance relative to other businesses in the same industry. It’s often required as part of the bidding process as a vendor. You must register and provide the names and emails of 6 – 20 of your clients to do this.

3 tips to help you see increased success when applying for government bids

  1. Plan your time accordingly

Winning bids will always have planned accordingly. Managing your time efficiently can help ensure you have everything together in a timely manner. Working your way back from the submission date can help. Setting internal deadlines for you and your team can help ease the pressure.

  1. Be clear, concise, and persuasive

Your written response should be clear concise and persuasive. At the end of the day, you are persuading the buyer that you are the best business for the job. Why is that? What do you do that your competitors don’t?

Responding in a clear and concise manner can also benefit you. Use subheadings and break the question down. Avoid submitting blocks of text and use bullet points. Hit as close to the word/page/character count as possible.

  1. Present added value

One way to get an edge over your competitors is by demonstrating added value. This can really strengthen your government bid response. The contracting office will always want to get the most bang for their buck. You can play this to your strengths by considering how you can present added value.

Do you give back to the local community? Is your business paper-free? Do you offset your carbon emissions? Considering the environmental, economic, and social aspects of the contract can help. Buyers will likely have certain objectives or targets they need to meet in these areas. If you already meet some, it’s a bonus, so do your research.

In conclusion

You should now have a better idea of what’s required from government contracts for bid. Now, you don’t need to be typing in ‘gov bids’ and ‘US gov bids’ into your search engine. That is unless you’re searching for them. Hopefully, you have a better idea of what to expect and what’s required.

Looking for support with your next bid?

If you’re still stuck on writing your government bid response, we can help. Sometimes you just don’t have the time, resources, or experience to formulate a winning response. Luckily for you, we provide three bid and RFP writing support services. We can help you see success with your next bid. Our Bid Writing Consultants have over 60 years of bid writing experience.

Our services

RFP Writing

Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our writers will break down the solicitation documents, allowing you to see what the bid and the contract involves. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority.

Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.

RFP Mentor

Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents.

Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.

Proposal Ready

Do you need help with preparing a bid proposal? Proposal Ready can help businesses that are new to bidding for contracts or those in need of rejuvenating their content. Our Bid Consultants will create:

  • 3 designed and company branded case studies
  • 5 company branded and professionally designed resumes for key personnel
  • 1 company branded bid proposal credentials document that can be used to respond to future RFPs.

Find more helpful tips and advice in our blogs. We cover topics including:

 

All information and data on this blog site are for informational purposes only. Hudson Outsourcing LLC makes no representations as to accuracy, completeness, suitability, or validity, of any information. Hudson Outsourcing LLC will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS IS with no warranties and confers no rights.

Hudson Outsourcing LLC will not be responsible for any material that is found at the end of the links that may be posted on this blog site. 

Because the information on this blog is based on Hudson Outsourcing LLC’s own opinion and experience, it should not be considered professional financial investment advice. The ideas and bidding strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Hudson Outsourcing LLC’s thoughts and opinions will also change from time to time as the market changes and as Hudson Outsourcing LLC develops.

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