Think Like the Government

April 13, 2006

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You are now ready to get started. You might imagine that the first thing you should do is get out there out and look for all those government buyers and bid opportunities, right?

Not so fast. Before you take any action at all, there is one thing you need to do that will greatly increase your rate of success in finding opportunities and winning contracts: Learn to think the same way the government does when it does business.

A commercial company and a government buyer may need the same item, but their approach is very different. For example, when a commercial company looks to buy an item, the buyer is very familiar with the item being bought and knows exactly what type of process--be it welding or stamping or extrusion or metal finishing--is used in making the particular item. Therefore, when it is looking for a supplier of that item, it thinks in terms of the process and looks for a welding company or a stamping house or metal finisher, as the case may be.

On the other hand, when the government buys, it knows the item it needs (e.g., a gear, a resistor, a coffee cup, a spring, a bolt, a pencil), but it does not know the process or type of company that makes the item. The buyer is merely given a requirement (one or more items of some kind) and the technical data package and puts them out for bidding. Therefore, when the government is looking for a supplier, it thinks in terms of the item and looks for companies that have indicated that they can produce that item.

Think about it this way: In the commercial world, a buyer usually has a good idea of what they are buying, what the processes are, what machines are used, etc. On the other hand, government buyers, while very good at getting the job done - on time, in budget and when needed - are acquisition specialists first and not engineers. In other words, they buy the product, not the process.

At a recent congressionally sponsored government procurement conference, the owners of a company that made various items for the railroad industry were disappointed in the event because there were no government offices at the conference that bought railroad items.

Eventually they began to realize that they could use their same equipment and skills to make items for the military, such as tanks and off-road vehicles. They went over to the Army booth and found there were indeed some opportunities for them to support the Army's needs for heavy equipment. It turned out to be a good conference after all!

As you look for contracting opportunities, it is crucial that you think the same way. Think of your business in terms of your output; the products or items that you make and, perhaps more importantly, the items that you are capable of making. Think of how you can use your same equipment and process to make things that the government needs and wants; perhaps things you never even considered before.

If you think in terms of your process, for example, if you think of your company as a screw machine shop, you will be facing a much bigger challenge in trying to find government opportunities. Why? Because the government does not purchase items described as "screw machine products," it buys nuts, bolts and screws.

How you think of your business can affect your success more than you imagine! What are your company's capabilities?

Work Smart

Before you can address what the government is looking for, identify what you really want to offer. We have counseled more companies than we would care to admit that come in and want to know what the government wants because they can provide it. That is not a good business plan. Target what you can do best and go for it.