How the Government Begins Its Procurement Lifecycle | Episode 41

24-03-2023 • 7分

All government procurement begins with either an idea or need by a government agency. The procurement lifecycle starts with market research and determining whether the size of the contract meets the simplified acquisition threshold for a small business set-aside award. It’s important for businesses to get involved in this process early and the best way to do that is by creating relationships with government buyers.

In this episode of FedBiz’5 we host Senior Contracting Specialist and former Federal Government Contracting Official, Frank Krebs, to discuss how the government begins its contracting lifecycle.

The procurement ‘idea’ can come in the form of an internal government requirement or from the marketplace in the form of a white paper or new product or business model.

Most frequently it comes from a ‘need’, which can stem from a new project or government program having been introduced or the need to add on to an existing service or project.

Beginning Steps in the Procurement Lifecycle?

Market Research - The government starts with their market research phase. Government buyers first determine an expected contract value and a category for the contract. The expected contract value plays a large role in the type of contract to be awarded.

For example, if the award value is expected to be less than $10,000, the federal government utilizes a micro purchase and simply procures the product or services without a solicitation by using their government credit card.

If the contract value is more than $10,000, but less than $250,000, of which the majority of federal contracts fall within this range, then the government buyer utilizes the Simplified Acquisition Procedures (“SAP”). Under the Simplified Acquisition Procedures threshold, small businesses must be considered for all federal awards under $250,000 if there are two or more small business offerors expected to compete.

It is important you research all contracting opportunities in your specific industry, not just open solicitations, but expiring contracts and awards not publicly posted.

In fact, the vast majority of awards do not go through the open solicitation process. This is why you need to know your market. You must have a clearly defined plan going in. Who is spending? How are they spending? And in the federal market that is even more important because you want to be able to focus your energy and resources.

A database such as the Market Intel can provide you information on who is buying what you sell? What offices and who should you be reaching out to. This is about research and then creating relationships.

The Federal Connections Package and the Local Connections Package can help you get in front of these government buyers with your Capability Statement. This marketing gets you to the right contact within the agencies that buy what you sell.

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