Understanding Government Contract Awards: Key Insights and Trends

Government contract awards can be a highly lucrative business model to pursue, especially for small businesses across the nation. It is also one of the toughest things to get into for those who have not yet been approved or are inexperienced in the process. There is a lot of red tape involved, and it is daunting. But that should not dissuade you; once you understand the process, you can do exceptionally well with government contract awards. 

Greenwood Aerospace has perfected the art of winning government contracts, and today we are going to show how the process does not have to be scary, but is instead just a series of regulatory hurdles to get through. 

Overview of Government Contract Awards

We’ve talked about this a few times in our blog, but it is a question that continues to come up. So, here is a broad overview of the government contract awards process. 

Government contract awards are a critical component of federal spending, with billions of dollars allocated annually. The total number is almost impossible to calculate accurately, but every year millions of contracts are released and billions upon billions of dollars are allocated to it.  

The award process involves a formal evaluation of proposals, with the goal of selecting the best value for the government. This is somewhat of a nuanced explanation, though. It is not just about the best value for the government, though. 

The process begins by identifying a need or demand for goods, services, or projects which can be construction projects, aircraft and equipment maintenance, and the list goes on forever. The agency making the request generally requires a Statement of Work (SOW) or a Performance Work Statement (PWS) or something similar. But they are also bound to some other rules. There are guardrails in place to make sure that small businesses, and businesses owned and operated by women and minorities have a better chance at the process. 

Contractors must understand the award process to increase their chances of success. 

But before the contractors are ever solicited, the agency in question is tasked with market research to understand industry capabilities, availability, and pricing. These factors are what drives the overall process and informs the agency of whether they will use a competitive process for the procurement, or if they can move forward with a sole-source bid. 

Federal Spending and Contract Awards

The Department of Defense will be spending somewhere in the ballpark of $850 Billion this year, with a significant portion allocated to contracts and grants. This is up a fair amount from FY2022 which saw just shy of $700 Billion in DoD spending. This data indicates that any given agency in the DoD is likely to have a wealth of available contracts. 

Of course, that does not mean that you will be eligible for every single one or that you can realistically compete for all of them. This is where it is important to understand not only the process in general, but when there are preferred vendors and if you can be a preferred vendor. 

Here are a few of the best source of information about government contracts:

  • USAspending is the official open data source of federal spending information, providing insights into federal awards.
  • Contractors can search and explore federal spending data by recipient, agency, community, time, and industry at SAM.gov. All small businesses that want to become HUBZone certified need to be registered on SAM.gov first. This is the federal government’s primary database for vendors and is a prerequisite for all federal contracts. 
  • Financial Assistance
  • Contracting Assistance
    • Government Contracting Programs
    • 8(a) Business Development Program
    • HUBZone Program
    • Women-Owned Small Business (WOSB) Program
    • Service-Disabled Veteran-Owned Small Business (SDVOSB) Program
  • Counseling and Training

This is not an exhaustive list of resources, but it does represent a great place to start in the process, and where we have found most resources lie. 

The Role of the Contracting Officer

The contracting officer can either be your closest friend or your greatest roadblock in the process. They play a crucial role in the award process, and are responsible for evaluating proposals and determining the best value for the government.

At the end of the day, the selection is made based on checking the necessary boxes for preferred vendors but also the most cost effective and efficient contractor available. 

Contractors can provide feedback to the contracting officer during the award process to clarify any questions or concerns. Usually, there will be some back and forth to iron out the exact specifications on the job. Some jobs are simple and the SOW lays it all out very clearly. But if the SOW is poorly written or there is a lot of ambiguity in the contract, there will be an opportunity to ask for clarification. 

The contracting officer will notify contractors of the award decision and provide official confirmation of the contract details.

The Award Process

The award process involves several stages, including the formal award process and informal source selection procedure. There is a fine line here for all parties because there needs to be a certain level of transparency throughout the process. The contracting officer is seldom if ever the end user of the contract. In fact, they might not have any clue at all what the end-user really needs. 

The end user must provide a very thorough and clear representation of what they need and make sure to read through it all thoroughly before the proposal goes live. At that point, it can be too late to go back and make the changes necessary. 

Contractors may be eliminated from consideration at any point in the award process, with written notice provided. A debriefing can help contractors understand why their business was not selected and improve their marketing and bidding strategy. This is a great time to not take anything personally, but instead to hone your proposal for the next one. 

National Interest Action and Contract Awards

The National Interest Action is a process that doesn’t get talked about all that often, but it is a special tag used within the federal government to track contract awards which have been related to specific events and efforts serving the national interest. 

  • The National Interest Action (NIA) data element has been decommissioned and will not be collected on new Contract Action Reports (CAR) on or after January 27, 2024.
  • Contractors should be aware of the changes to the NIA data element and its impact on contract awards.

Strategies for Contractors

Contractors should develop a comprehensive understanding of the award process and the role of the contracting officer. This can be a very lucrative venture, or you could be kept out by certain gatekeepers. 

A solid strategy is required for winning contracts, and one such solid strategy is partnering with Greenwood Aerospace. We have over forty years of experience in the field and know how to win the contracts you need. 

Providing feedback to the contracting officer during the award process can help clarify any questions or concerns. It will also show you how to improve if you decide to proceed on your own with seeking contracts. 

Contractors should stay up-to-date with changes to federal spending and contract awards, including the use of Unique Entity ID (SAM).

Transparency and Accountability

Transparency and accountability are extremely important from the perspective of the government. Nothing will land a CRO and their leadership in legal trouble faster than even a hint that contracts were awarded unfairly. 

It is also a two-way street: government contract awards require transparency and accountability, with contractors needing to provide accurate and timely data. Once you have been awarded a contract, it is up to you to follow all guidelines that were agreed upon from the outset. 

  • The use of data analytics and reporting tools can help contractors stay on top of their contract awards and identify areas for improvement.
  • Contractors should be aware of the importance of transparency and accountability in government contract awards.

The Government Procurement Advantage

Greenwood Aerospace is your trusted partner in procuring and securing government contracts. The process is complex and you only get one shot to get it right, so when the process matters, Greenwood Aerospace is here to set you up for success.  

If you’d like to learn more about HUBZone, make sure to check out our article on it! Also, check out our article on the Small Business Administration and how to navigate the SBA.