Winning Government Contracts, Have to be the Low Bid?

This time, you already be aware that there are very exciting opportunities for small businesses to have with the federal government. And by now, you could be tinkering with strategies on winning government contracts. The federal government, thus far, stands out as the largest possible customer after all.

Based on the International Association of US Government Contractors, the government spends up to $530 on regular basis. This is in addition to the $787 billion budgeted for Federal stimulus spending. Overall, it sums up to a $1.3 trillion of government expense to consider advantage.

Should the figures above are not enough to keep you motivated on winning government contracts, then this reality perhaps will: there's a 39% allocation the federal government assigns to small company from the total expenses. Small company owners like you should consider a goal in winning government contracts. The government supports and promotes the expansion of smaller businesses and it has done this by getting small-scale businesses to have the possiblity to win government contracts.

The Big Scare

If you are a small business owner, you probably have doubts if the government will give time to you. There are also many big players around who've experiences and may offer the lowest bid. How will you contend with that?

You truly do not have to. In winning government contracts, it's not necessary to stress yourself over offering the lowest bid. The simple truth is being the low bid isn't that important in doing business with the government. Statistics show - and has proven - that 80% of times, the low bid does not win with the federal government.

Best Value versus Low Cost

So is there a strategy then in winning government contracts? What then would allow you to win contracts with the greatest customer on the planet if not being the lowest bid?

The same as any other businessman, the federal government wants value for their money. And this does not necessarily mean that they'll be choosing the provider that provides the cheapest cost. The government is in search for is for best value over low cost.

Since the government allocates 39% of the overall spending to small businesses, then there is plenty of room that you should explore. And, competing the Big Boys as well as the other Fortune 500 companies would be useless for there is another percentage in the pie that is allocated for them.


Therefore, in winning government contracts, you simply have to know your services and/or products and be able to present them in a very exciting way. You have to be competent to convince the government that you will be the most effective provider of such a product or a service. Moreover, remember that you need to manage to show them you could offer the federal government with the best worth of their money. This is not just being the lowest bidder. You should concentrate on quality - in tandem with cost. That's your best means by winning government contracts.