I've got another popular question for you...
Q: What are the key entry points for small businesses in the Federal marketplace?
A: There are a lot of opinions throughout GovCon consultants on this topic. My personal advice is to build an entry strategy from multiple angles. I've listed two of several below.
✅️ Prime vs. Sub -- As a prime you are on the hook not only for the work but the relationship with the agency / customer, invoicing, recordkeeping (to the Government’s standards, not yours), compliance, and reporting. If you're ready for that because you're pivoting from private sector success, cool! But if not, consider subcontracting by performing a subset of requirements and a smaller set of responsibilities as you learn the Federal marketplace. Both are lucrative paths AND nothing says you can't try both in the marketplace at the same time.
Read more about what to consider when choosing a role at the FedSubK NOW! blog https://www.fedsubk.com/post/prime-or-subcontractor-what-to-know-about-each-role
✅️ Large Dollar vs. Small Dollar -- Everyone wants the $1M+ contract. But there are entry points that favor small businesses at lower dollar values and some don't require competition. Make yourself familiar with these terms and market to the Government at these different thresholds:
▶️ Micro-Purchases. These are buys with a total aggregate value at or below $10,000* (or higher limit overseas, during contingency or natural disaster events, or when buying training at some agencies). These buys are made with the Government Purchase Card (think credit card, but slightly different). Buys at or below this threshold do not require competition (yes, you read that right). When it comes to micro-purchases think not only about what you want to sell (a complete solution) but what you can sell (hourly subject matter expertise or training). Check out the MicroMarket.co platform for examples of how to sell micro-purchase offerings. And read my blog post at https://lnkd.in/gwj67-6q
▶️ Simplified Acquisitions. These are buys larger than a micro-purchase but with a total aggregate value at or below $250,000* (or higher in specific situations). These buys are automatically set-aside for small businesses unless otherwise justified in writing by the Government. These buys are made via formal written purchase order as a result of a Request for Quote (RFQ) and do require competition. While some think this threshold isn't lucrative long-term, there are often multi-year opportunities under this threshold in the form of Blanket Purchase Agreements (BPAs) under which calls (e.g., requests for work) are placed.
There are other entry points like Mentor-Protege or joint venture arrangements but those above are the most common and easiest to implement out of the gate.
Learn more on this topic and other contracting basics at my blog, FedSubK NOW! at https://www.fedsubk.com/fedsubk-now
While you're there, check out the other great available free resources.
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