Am I ready to respond to government RFPs? Answered.
Winning a new government contract can dramatically boost revenue for many small businesses. In order to win those contracts, however, you often have to go through the government procurement process, which means responding to RFPs. If you are struggling to determine if you’re ready to start responding to government RFPs, below are a few key questions to ask to determine your next step.
Do I have related public sector experience?
This question may seem counterintuitive -- you want the government contract to get the experience, right? The unfortunate truth is that many buyers expect you to have similar experience in the space in order for you to be awarded the project.
There are two main ways you can handle this:
Only respond to RFPs where experience is a small portion of the evaluation (or not at all). Some RFPs are awarded to the lowest priced technically compliant bidder, and this can be a great way to start getting government experience. This means you will have to bid at a lower price to win, which may not be possible based on your business. There are also some RFPs that evaluate primarily on the specific team’s experience (not the company’s) or accept corporate references. If you spend time responding to only these in the beginning and win a few contracts, you’ll build up your government experience enough to go after the more competitive projects.
Subcontract with another company. To gain government experience, you can also start subcontracting with a company who currently holds government contracts. You can use this experience to learn more about how government contracts work without the overhead of managing them.
Do I have a minimum of three related references (preferably in the public sector)?
Similar to the above question, many RFPs will specifically request at least three references for similar projects, often within the same sector. If you don’t have the required references the RFP asks for, then it’s best not to respond until you do.
The approach for this is the same as the above by either finding RFPs where this isn’t required or performing work to gain the necessary references.
Do I know what other organizations are likely to bid?
This question is critical when responding to government RFPs. Before you start creating your proposal (and ideally before the RFP is even released), try to learn more about the potential competitors for the opportunity. For example, is the RFP for an existing contract? If so, who is the incumbent and do they have a good relationship with the customer? There are many cases where the customer is happy with the incumbent, but they have to go through the procurement process officially even though they hope to still award them the contract. This makes your job very difficult as a new company, and many times the incumbent will win anyway.
If there is no incumbent (or even if there is), it’s helpful to know who else might be responding to plan your proposal accordingly.
How do I plan to compete?
Once you’ve done the competitive research, you can form your strategy. This means, figuring out how you can beat those other competitors.
Some companies compete on price. Others do on the quality of their product or service. Some also compete based on their relationships with partners and resources the customer will have access to if awarded the contract.
When you create your competitive strategy, make sure that you first focus on the customer’s goals and how you achieve them. Once you have that figured out, you can refine your strategy to stand out from the competition.
Am I able to manage the contractual requirements, such as reporting and required certifications?
Many large government contracts require extensive management to remain compliant. Some require weekly, quarterly, or even daily reporting. Other contracts may require that you have specific licenses or certifications for the duration of the contract.
When you receive the RFP, read through the terms and conditions in detail to ensure you are aware of any administrative requirements that come with the contract, and form a plan for how you will meet those requirements.
Is my process documented?
This question will save you much time and many headaches when dealing with RFPs. Before you start responding to or seeking out RFPs, document your process for anything related to the type of work you will do for the RFP. Everything from customer support to implementation to product features (if applicable).
Do I have content I can use once the RFP is released?
In addition to your process, you will need to create content for common RFP questions that you can repurpose each time without having to start from scratch. There are a few different pieces of content we recommend everyone have on hand, but always start with your company overview and key bios.
Do I have the time to create the RFP response? If not, who will complete it?
This is an important question, especially when you’re working against a deadline. Depending on the complexity of the RFP, you should plan for anywhere from 20-80+ hours for creating your content, revising with your strategy, and finalizing for submission to the customer.
If you don’t have time for this, line up someone who can help early in the process.
Am I being invited to bid on opportunities or finding them online?
Your answer to this question will directly affect your win rate. If you’re responding to RFPs online without having any relationship with the customer before the release, your win rate will be lower. However, if you have an existing relationship or they seek you out to ask you to respond, you have a much better chance of winning the contract.
How do RFPs align with the rest of my sales process?
Tying into the last question, you should ensure that RFPs are lined up with your sales process as well as your marketing process. The companies with the highest win rates are those who spend more time developing relationships with potential customers before the RFPs are ever released. This gives you insight into their unique needs and allows you to develop a winning competitive strategy.
Does my organization hold any certifications that can help us compete?
This is different from the certifications mentioned above. Many government agencies have diversity requirements they are required to meet as part of purchasing, and they often will award extra points if your company is certified in those areas. This means that if you qualify as a small business or minority-, woman-, or veteran-owned business, then gaining your certification before you start responding to RFPs will give you bonus points.
Next Steps for Responding to RFPs
If you have a solid answer for all of the above, then it’s time to start responding! Winning government contracts takes a lot of work, but it will be worth it.
