Mastering Government Contract Bids: Your Tips for Success

The second Trump term is now getting settled and they hit the ground running in January. Federal contracting is bound to be a hot topic as the dust settles, especially in the defense sector where the Trump administration has made it well known that they anticipate growth. We don't know all of the ins and outs of it, but government bids will probably be opening up.

Government buyers are definitely getting their marching orders now and federal contracting opportunities are on the horizon, again, namely in the construction sector. It is almost Springtime, so military installations with money to spend will be looking for prime contractors to repair roads, replace roofs, repave runways and taxiways, and everything else.

Let's take a look at our top tips for capitalizing on this!

Understanding Government Contract Bids

First and foremost, you need to understand how government contracts work, and what relevant bids are. The Government awards billions of dollars across dozens of federal agencies annually, so there are lots of opportunities. With that said, here's a little more about government contracts.

A government bid is a formal offer to provide goods or services to a government agency in response to a solicitation or invitation to bid. The contracting officer will review the solicitations and forward those findings on to the end user in the contract, but that is another matter for later.

Government bids can be classified into different types, including fixed-price contracts, cost-reimbursement contracts, and indefinite delivery/indefinite quantity (IDIQ) contracts. Indefinite delivery/indefinite quantity (IDIQ) contracts are a flexible contracting option used by government agencies to procure goods and services when the exact quantities and delivery schedules are not predetermined. These contracts allow federal agencies to place orders for supplies or services as needed, up to a specified maximum quantity, over a set period.

This flexibility is particularly advantageous for projects with uncertain or fluctuating requirements, enabling government buyers to respond swiftly to changing needs. IDIQ contracts often involve a base period with options for extensions, providing long-term contracting opportunities for businesses. By utilizing IDIQ contracts, government agencies can ensure a steady supply of goods and services while maintaining cost-effectiveness and efficiency in their procurement processes.

Understanding the different types of government bids is crucial for businesses looking to participate in government contracting. Federal contracting opportunities are going to grow in some sectors and shrink in others, but this can have the effect of limiting competition.

Types of Government Bids

  • Fixed-price contracts: as the name suggests, the federal government agency or procuring office determines a predetermined fixed price. The contractor then provides the goods or services as defined by the contract. No matter whether prices of materials rise or other unforeseen conditions happen, the contractor must deliver the agreed-upon product or service within the budget they agreed to. The risk is definitely on the contractor in a fixed-price contract. 
  • Cost-reimbursement contracts involve the federal government reimbursing the contractor for allowable costs. These types of contracts can also induce additional payouts to the contractor to help with overhead. Cost-reimbursement contracts are usually used when the scope of the work or costs involved in the project are uncertain. This gives contractors a lot more security to accommodate changes throughout the process. 
  • Time and materials contracts: this is more of a hybrid style contract, using elements of the previous two. Time and materials contracts are usually used when the scope of work is not well-defined, or it will be too difficult to estimate a total contract cost. 
  • Indefinite delivery/indefinite quantity (IDIQ) contracts: IDIQ contracts are just as they sound: when the scope is ongoing and unpredictable, an IDIQ is often procured. There are maximum values specified, but the point is that this is a max. The government contracting officer may need less during this period, but there is a maximum. 

Finding Government Contract Opportunities

The first step to figuring out

  • Researching government agencies and contract opportunities is crucial for businesses looking to participate in government contracting. The first step is always to do your research. How successful you are or are not is largely a product of the effort you put in beforehand. First, you have to know whether or not you are eligible for gigs. Certain categories that you can apply to will give you preference over other applicants.
  • The Dynamic Small Business Search (DSBS) is a database used by government agencies to find small business contractors.
    When a small business registers in the System for Award Management, it can also fill out a small business profile. This profile is then used to populate the Dynamic Small Business Search (DSBS) database, a tool that helps contracting officers find potential small business contractors for upcoming projects. Small businesses can also use DSBS to find other potential partners for teaming and joint ventures.
  • GSA Schedules are a type of contract that allows businesses to provide goods or services to government agencies at a fixed price. The GSA Schedules, also known as Federal Supply Schedules (FSS) or Multiple Award Schedules (MAS), are long term government wide contracts that allow commercial companies to do business with the U.S. federal government. These contracts give access to millions of commercial products and services at fair and reasonable prices, making the buying process easier for both government buyers and contractors.
    The GSA Schedules program was created to establish long term government wide contracts with commercial firms, providing federal, state and local government buyers access to over 12 million products and services at discounted pricing. It simplifies the buying process by pre-negotiating terms and conditions, which are then agreed to during the GSA Schedule acquisition process. This makes the buying process easier for federal agencies and ensures vendors have clear expectations on pricing, delivery times and other requirements.
    GSA Schedules are indefinite delivery, indefinite quantity (IDIQ) contracts, meaning there is no limit on how much can be sold to the government or for how long. These contracts are awarded for 5 years and can be renewed for up to 3 consecutive 5 year terms, so they can be a 20 year contract. The GSA Schedules program is one of the most popular government contract vehicles with over $36 billion procured through it each year from over 12,000 contractors.
    Eligible GSA Schedule users are federal agencies, certain other organizations and state and local governments. GSA Schedule contractors can sell commercial off-the-shelf (COTS) products and services under the twelve Large Categories listed by GSA, which are further broken down into Subcategories and Special Item Numbers (SINs).
    To get a GSA Schedule contract, companies must submit a proposal that meets the GSA solicitation requirements. The process includes negotiation of terms and conditions and can take several months to a year or more depending on the complexity of the proposal and the category being pursued.

Researching Government Agencies and Contract Opportunities

Alright, so how do you go about finding more government contracts and then how do you submit bids? Good question. The whole process is now handled online, so to get to the point of contract award, you need to know the ins and outs of finding the right place to look.

Use online resources such as the Federal Procurement Data System (FPDS) and the System for Award Management (SAM) to research government agencies and contract opportunities. Not only are these your first stops, these are your only stops.

Identify the types of goods or services that government agencies are looking for. Make sure that your product offerings align with the demands of the federal government It could be as complex as a new weapon system, or as benign as this:

Research the contracting officers and their contact information. This is the easy part; all of the solicitations have the contact info in them.

If you have any questions about the requirements or even the specifics of the process itself, reach out to the POCs. 

Assessing Business Readiness

Assessing business readiness is crucial for businesses looking to participate in government contracting. But again, this goes back to researching what trends exist in your niche. The best way to do this lies in research solicitations through the above-mentioned websites. Your business must be able to support the contract because it is legally binding once you are awarded the contract. There are specific deliverables and timetables that must be met, so you have to be equipped to meet those. 

Evaluating Business Capabilities and Experience

Evaluate your business capabilities and experience to determine your readiness for government contracting. You may need to bring in specialized or additional equipment to perform the criteria. Conversely, and only if it is expressly allowed in the solicitation, you can subcontract work out. Again, this only works if the solicitation allows a prime contractor and subcontractors. 

Identify your strengths and weaknesses and develop a plan to improve your business capabilities and experience. Of course, this might mean increasing your ability to produce items which are very expensive, so there is a certain level of risk. If you are banking on a contract to pay for new tooling, training, employees, etc., and the contract does not get awarded to you, you are left holding the bag on all that equipment and cost. 

Of course, this is an opportunity to put Greenwood’s experience to work for you. We proudly contract in both the prime and subcontractor roles, depending on the job. 

Preparing to Bid on Federal Government Contracts

Preparing to bid on federal government contracts requires careful planning and research. There is no margin for error in the contracting space, and one simple mistake is all it takes to tank the whole process. Here are a few questions to ask before bidding include: 

  • What is the scope of work? 
  • What are the evaluation criteria? 
  • What is the bid opening date?

Common mistakes in government contract bids include: failure to follow instructions, incomplete bids, and late bids. Also, the worst case scenario is failure to deliver the agreed upon goods or service. 

Common Mistakes in Government Contract Bids

Here are a lot of the common mistakes we see in government contract bids:

  • Failure to follow instructions.
  • Incomplete bids.
  • Late bids.
  • Failure to provide required documentation.

We are contracting experts and will make sure lucrative contracts don’t slip through the cracks anymore because of problems like these. Give us a call at (580) 762-2580 and we’ll talk you through our process. 

Submitting a Government Contract Bid

Submitting a government contract bid requires careful preparation and attention to detail. In fact, one of the main reasons for failing to secure a contract is a lack of attention paid to the process. 

The steps to bid on government contracts include: 

  1. researching the solicitation, 
  2. preparing the bid, 
  3. and submitting the bid.

Make absolutely sure that your bid is complete, accurate, and compliant with the solicitation requirements. That last sentence is key: compliant with the solicitation. 

Handling Protests and Appeals

Handling protests and appeals is an important part of government contracting. If you are in this business, you will deal with protests. 

One common type of protest is a size and status protests: a protest filed by a contractor challenging the size or status of another contractor. 

Size and status protests are formal complaints a contractor can file when a competitor is misrepresenting their size or status to get an unfair advantage in the bidding process. These protests must be filed within a certain time frame usually shortly after the contract is awarded.

 The SBA reviews these protests and makes a determination based on the evidence. A protest can disqualify the competitor from the process and ensure a fair and competitive environment for all contractors competing for federal government contracts. This is an important check in the government contracting system to ensure integrity and transparency.

Increasing Chances of Winning a Government Contract

Increasing chances of winning a government contract requires careful planning and research. It really is not all that difficult, though. You need to fill out all paperwork correctly, and the biggest issue is making sure that you did it all correctly.

Building relationships with government agencies and contracting officers is crucial. Meet them at trade shows. Reach out and say hi. Follow them on LinkedIn and comment on their stuff. 

Winning More Government Contracts

To win more government contracts does require real work. It takes careful planning and research. You need to know the specific characteristics of every single contract. This includes the salient characteristics of physical products required. If you offer GSE, does it meet the demands of the solicitation? 

Best practices for government contracting include: understanding the solicitation, preparing a complete and accurate bid, and following up with the contracting officer. As long as you play by the stated rules and FARs, there is nothing wrong with following up with the contracting officer. 

Best Practices for Government Contracting

In review, here are the best practices for winning contracts. After all, that is the whole point. 

  • Understanding the solicitation. If you don’t understand it, contact the contracting officer(s) and ask for clarification. 
  • Preparing a complete and accurate bid. Even simple mistakes can get your bid thrown in the trash. 
  • Following up with the contracting officer. Beware of any legal limitations on how to do so, but make sure to follow up with the contracting officer. Keep yourself on their radar. 
  • Building relationships with government agencies and contracting officers. Go to trade shows and events where they will be. 

Final Thoughts

Mastering government contract bids requires careful planning and research. There are lots of sticking points, most of which are procedural. But if you understand how to handle these and get your bid on the desk of the contracting officer, you can do well. 

If you are not familiar with the process or have a low success rate, you should partner with Greenwood Aerospace to secure these contracts. We have over forty years of experience in federal and state contracting and will land contracts as the prime or subcontracting role.