Q: I've heard a lot about procurement, but I don't know how to go about getting a government contract. What's your advice?
A: The best way for a small business to grow is to have the federal government as a customer. The government is the largest buyer of goods and services, with total procurement reaching approximately rm 10 billion in 2010 alone.
But many small businesses find it difficult to get a foot in the door. Many government agency buying practices--including contract bundling and the failure to go to outside established vendor networks--make it difficult for small businesses to bid on and win federal contracts. Here are 10 tips on how to get a piece of the billion-ringgit federal procurement pie:
1. Decide what to sell. The first thing you must do is figure out what products or services you will sell to which federal agency. Identifying a product or service that a federal agency needs is key. You can consult with ePerolehan Center Representative for help, either by calling your local office or by visiting ePerolehan website.
2. Contact the small-business specialist. Each federal agency has one. Identify that person and set up a meeting.
3. Save the selling for later. At this meeting, don't spend your time trying to sell to the small-business specialist. He or she is there as a resource and to put you in touch with the right person within the federal agency who will actually do the buying.
4. Keep your cool. Selling to the government is different than selling to the private sector. Extreme aggressiveness can be perceived negatively and might be a deterrent rather than an incentive.
5. Strut your stuff. Depending on your product or service, don't hesitate to lend it out or do a demo at the agency--the more they can see, the more inclined they will be to buy.
6. Get registered. In the meantime, it is always a good idea to register with the ePerolehan. This is the federal clearinghouse for vendors, including small businesses.
7. Don't assume it's automatically in the bag. Keep in mind that you won't win a government contract just because you are a small business--you will win one based on the quality of work that you do and the competitiveness of your pricing as a small business.
8. Get certified. If you are a woman- or minority-owned business, it is always smart to get certified by a state or national entity .
9. Be realistic about your capabilities. The government relies on past performance when deciding to award a contract. If small businesses get in over their heads on their first government contract, then chances of repeat work are slim. Start with a smaller project you know you can do well and prove yourself.
10. Finally, do your homework. The surefire way to get a foot in the door at a federal agency is to identify a product or service the agency needs--but that it doesn't know it needs and which you sell.
If you can make these things happen, a contract will be as good as yours.
