By Jason Roys
Whether a business is looking to win a government contract or grow revenues by winning more, a government contract consultant can help along the way.
How do government contracts work?
The federal government buys massive amounts of goods and services from the private sector. The process sounds simple, but in practice it is very complex. They start by creating a detailed description of exactly what they need. Then, the government asks contractors (businesses) to submit proposals with details of pricing, labor, and costs associated with their services. Among these proposals, the government picks the one that best fits their needs. Then, the government and contractor work to negotiate details and contract terms. The contractor provides the services or goods, and the government pays for them.
Doing business with the government
Thousands of businesses across the country have been winning government contracts for years. Last year, the federal government bought over $145 billion worth of goods and services from small businesses through prime contracting procurements, according to the Small Business Administration. Overall, the federal procurement of government contracts is valued at $682 billion.
That huge pool of money draws a lot of businesses to compete for work. Between the competition and the red tape, it's not easy to win or implement a federal contract. That is where a government contract consultant comes in.
Why do I need a government contract consultant?
Lots of businesses are looking to procure a contract in the federal marketplace. So, a good contract bid needs to be competitive, customized, and profitable for both parties.
A reliable government contracting consultant will help a company optimize financial performance through its understanding of the industry and the complicated processes for winning contracts. Contract consultants guide the process forward smoothly to maximize the profitability of the contract.
What does a government contracting consultant do?
Government contract consultants are experts in helping a company register and prepare contract proposals for their business to provide goods, services, research, or technical assistance to the government.
They can provide both the government and the private sector with consulting services through the entire process of creating, managing, and enforcing federal contracts. Here are some specific ways a government contracting consultant can help:
1. Help you become a registered government contractor
Before making the leap into the world of government contracting, a business needs to take several steps, including but not limited to:
Applying for federal and state tax ID numbers.
Registering as Systems for Awards Management (SAM) supplier.
Registering the business name with the Small Business Administration (and filling out a profile).
Applying for a Commercial and Government Entity Code.
Register with each prospective procuring agency.
Analyze prospective buyers by NAICS codes, buying patterns and stakeholders (this is critical before investing significant capital on the wrong targets).
Secure national security clearances.
Obtain industry certifications that may be required, such as ISO 9001:2015 or CMMI Level 3.
A government contract consultant can walk clients through the process.
2. Help businesses evaluate their services
A vendor should know and highlight the precise details of their services that will make them stand out as a business partner for the government. Government contract consultants help businesses determine just how much their products or services are worth and why. Consultants also help businesses determine the scope of their capabilities for fulfilling contracts.
3. Proposal preparation
Government contract consultants can assist in proposal details. This can include understanding requirements, developing cost accounting and pricing strategies, and preparing price and cost sections for a winning proposal.
They can also provide expertise in strategizing the best proposal approach, negotiating the contract, reviewing drafts and final proposals, and providing feedback for oral presentations. Mock audits of a proposal can help a contractor successfully pass an audit of their proposed pricing.
4. Help attain General Services Administration (GSA) contracts
The GSA Schedule covers about $45 billion in government contracts. Businesses, non-profit organizations, and educational institutions can acquire a GSA Schedule Contract to sell products and services to government customers.
Government contracting consultants can help clients and companies obtain these long-term contracts. They simplify the government sales process. However, it can take a couple of months or a couple of years to lock in one. They have pre-determined pricing, terms, and conditions that government buyers can use to purchase directly from a company.
GSA Advantage is an online government shopping and ordering service run by the General Services Administration for use by government agencies to buy commercial products and services from private vendors. A government contract consultant can help navigate this tool.
5. Search and analyze RFPs and RFQs
An RFP (request for proposal) is a business document from an organization (in this case, the government) that announces a project, describes it, and asks for bids from qualified contractors to complete it. The RFP details what the customer is looking for and exactly describes how a vendor's proposal will be assessed.
This is helpful for government agencies or organizations who are looking for the best possible candidates to provide them with a service or product at the best price.
A request for quote (RFQ) begins a process in which a company invites select suppliers and contractors to submit price quotes and bids for the chance to fulfill certain tasks or projects. Government contracting consultants can help develop RFPs, RFQs and similar solicitations.
6. Contract management
A government contracting consultant can assist with establishing and maintaining formal business relationships between government agencies and the private-sector contractors who supply services or goods to them. This relationship is filled with moving parts.
Contracts can involve numerous people from different functional areas on both the government and contractor teams. This can lead to miscommunication about requirements and administrative issues that don't surface until the contract is underway. A contract consultant can help prevent these mishaps or address them before too much damage is done.
The National Contract Management Association (NCMA) is a great resource to learn about managing government contracts.
Sometimes, a contract needs modifications. These changes may be related to contract cost, delivery schedule, schedule, fee, conditions, and employees. In addition, technology changes, funding, and mission requirements sometimes make it necessary to modify a contract. This can be very tricky, and consultants can help make it happen.
7. Help minimize contract compliance risk
Government contracting comes with a great many rules and regulations. The Federal Acquisition Regulation (FAR) spells out these regulations. The Cost Accounting Standards (CAS) add more regulations for larger companies. These complex and highly detailed regulations must be followed. The expertise of a consultant can help minimize the risk of failing regulatory compliance.
A government contract consulting firm might be able to provide this service. However, specialized Government Contract Compliance Consultants can also be a helpful resource in performing compliance reviews.
8. Audit support
The government regularly decides to audit contractors for lots of different things, both before and after awarding contracts.
This can include audits of accounting systems, cost proposals, billing systems, incurred cost submissions, and pricing rates. In case of this, it helps to have a highly knowledgeable consultant in your corner.
9. Assist in fraud and forensic investigations
Government contractors are held to a high standard and have to work hard to minimize the risk for fraud. Contractors need to be proactive in complying with regulations to avoid severe consequences. With a thorough understanding of government contracts, a consultant knows exactly where to look for fraudulent activities.
In the case of a breach, a consultant can help minimize the impact on your organization. Consultants provide independent corporate monitoring, general fraud investigations, and dispute resolution.
10. Review business systems
Business systems help companies run day-to-day operations. They're essential for government contractors hoping to win a contract. If any accounting, cost estimating, or material management systems are flawed, a business can lose money.
Not only that, the business can face frustrating obstacles when it comes to winning new contracts in the future. Consultants can review current systems and identify where there may be any gaps.
Making the decision
SDV International designs, develops, and delivers solutions for public and private sector organizations, including for example, the most well-known international technology companies, the world’s oldest healthcare organizations, novel medical device companies, aviation organizations, and organizations that offer unique solutions to support national security.
SDV International professional services and expertise can help both businesses and government agencies manage every aspect of a government contract.