“WASHINGTON TECHNOLOGY” By Larry Allen
“Experienced government contractors know that this is the time of year when many make or break their federal business goals. Fiscal 2024 is no exception, especially given the lateness of congressional appropriations.”
_______________________________________________________________________________
“This final quarter is packed with business opportunities.
No business, though, is assured. Each company needs to have a solid plan to pursue it, regardless of the time of year. Flying by the seat of your federal business pants more often leads to frustration and disappointment than success.
To avoid this pitfall, contractors can learn from others. There is no need to reinvent the successful business wheel. Here are some common traits of successful fourth quarter government contractors that can be used by any company to ensure not only a successful quarter, but sustainable government business.
Stay focused
Each company should have a pipeline of prospective business and, with a few exceptions, stay focused on pursuing and closing those. There are always temptations that can distract a company and, while no one should totally close their eyes to “blue birds”, too much sky gazing means taking your eye off the ball.
Don’t assume that your customer knows how to buy from you
Although many customers may have an acquisition plan, a surprising number don’t. Further, substantial evidence suggests that buyers have 1-2 preferred ways of doing business and if your solution doesn’t fit with those, they may need some help in executing an acquisition. Be prepared to help with one or two suggested acquisition approaches but remember to not make your customer play “52 contract pick up”.
Choose teammates and subcontractors wisely
The 4th quarter is when companies no one has ever heard of invariably emerge. More than one contractor has heard the line “We can get this business right now if you agree to partner with me.” It’s important, though, for contractors to conduct due diligence on any prospective partner. Make sure that agreements are also in writing. Bottom line: Your company made a substantial investment in developing a reputation as a trusted and reliable business partner. Don’t throw that away on an impulse.
Never assume that the project on which you are working is as important to the customer as it is to you
While priorities may match for large or high-profile acquisitions, companies may find that the contract on which they’re counting is not the most important thing on the mind of their customer. It may take extra work to keep attention on that project so that it does happen this year.
Keep your standing contracts updated
The end of the year is the single most popular time for government buyers to use Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, such as the GSA Schedules or NASA SEWP. Bloomberg Government estimated that 66% of all Q4 business was conducted via IDIQ contracts in FY’23. The busy season, though, is a tough time to play catch up by trying to add new services and products to these vehicles. There are simply not enough people or enough time to address every last-minute “must have”. Ideally, contractors should ensure that their IDIQ contracts are updated and ready by the end of Q3. If your contracts aren’t already tuned up, you could miss out on business.
Follow these tips and you, too, will have not only a successful fourth quarter but a foundation on which to build lasting federal business.”
Larry Allen is the president of Allen Federal Business Partners, a firm that helps companies with their growth strategies and planning. He can reached at lallen@allenfederal.com.
Comments