One of the fundamental concerns facing small businesses seeking to do business with the government is obtaining past performance on government contracts. In most cases relevant past performance refers to contracts/services performed on projects of similar size, scope and complexity that have been completed within the last three years. As clients often ask me, how are you supposed to get past performance if no one will let you in? Here are some things are working for me and my clients right now:
- Identify first-tier suppliers and prime contractors that are presently doing business with the government. Most likely, a first tier supplier that is already doing business may have a need to identify small, minority, women and veteran owned firms to meet their small business goals.
- Avoid dealing with direct competitors; I’ve found that approaching competitors for teaming/sub-contracting opportunities yielded minimal results. Instead, I created unlikely partnerships where each firm could focus on their own expertise.
- Find ways to add value to first tier suppliers by providing a resource that they don’t already have. For example, a first tier supplier may benefit from your expertise, staffing resources, office locations, technology, and services that you provide. The conversation should not be about you “asking” for work, it’s about what you bring to the table.
- Be clear on your financial capacity and expectations; you should confidently be able discuss your financial situation from a position of strength. Avoid the common mistake of thinking that prime contractors will finance doing business with you. Come up with creative solutions to address financing. Be direct, be upfront and take charge of the discussion.
- If you identify a first tier supplier, don’t wait until a bid opportunity presents itself to start doing business. Procurement officials tend to look favorably on teaming/sub-contracting relationships that have a proven track record of success.
- Use micro-purchasing and small purchases to gain experience.
- Use the Small Business Administration, NYC Small Business Solutions, PTAC Centers and other professional organizations to seek out potential teaming partners. Ask for referrals.
- Get Out of the Office – relationships are not built while you sit at your desk. Attend networking functions, training, workshops and pre-bid functions in your market.
- Consider a Mentor-Protégé relationship with a successful prime contractor. A well-established Mentor-Protégé relationship can provide many opportunities for smaller firms to increase exposure and benefit from the prime contractor’s past performance.
- Dedicate resources to building your past performance documenting your current successes and case studies. Ask your clients, business associates, former employers, etc., to provide you with a letter of reference or a testimonial.
In the event you are successful in finding a partner, take your time to get to know them. A good business relationship whether teaming, sub-contracting, JV, Mentor-Protégé or otherwise should be in the form an agreement that outlines the terms and conditions of the relationship and that sets measurable, quantifiable goals for both parties.
