There’s Always Government Work
Monday, July 27th, 2009(As in past years, I will only be posting once a week in July and August.)
During good times many professional service firms shun government work. They don’t like the procedures required to go after the work, nor those required for compliance if they get it. Most of all they dislike the lower profit margins and billing rate limitations of some government work when compared to work for the private sector.
But when times are tough and private sector work dries up, that government work looks mighty attractive. Firms that spurned it in bygone years flood the market, resulting in dramatic increases in the number of bidders on requests for proposals.
The outcome, I think, remains much the same: those firms which always won government work continue to do so and those which didn’t come away empty handed. That’s because the firms which specialize in government work know the procedures and the players and have the right qualifications and the newcomers don’t. To win you have to know the market. If you don’t, that government RFP is more chimera than real opportunity.
That’s what usually happens. But not always. I recently learned of a firm with only limited government work experience winning a stunningly attractive project. If they handled this opportunity correctly, it could be the foundation on which they build a whole government practice.
So, when is a piece of government work worth pursuing if you don’t have a history in that sector? Before taking the expensive leap of responding to a government RFP, answer the following questions:
1) Do you really want this work? If the money is all you are after, it will show, and you will lose.
2) Are there any reasons why you are especially well suited for the work? The winner will have some special qualification either with the matter at hand or in the form of a special relationship with the buyers.
3) Do you have either early warning of the client’s need or better access to information about it than most competitors? These allow you to build your case more effectively than others do.
If your answer to any of these questions is no, think twice before proceeding. If you answer no to two of them, drop that pursuit like a bad habit.
