Library - How Teaming Can Help Your Company Win Government Contracts
How Teaming Can Increase Your Company's Ability to Win Government Contracts
There is an ongoing trend with the growth of federal government contract consolidation. Contract consolidation involves combining two or more requirements into a single new solicitation. “Multi-agency contracts, government-wide acquisition contracts, and the Multiple Award Schedule Program often result in contract consolidation.” Although contract consolidation has helped “the government cope with the reduction in the acquisition workforce through fewer contracts,” it has occasionally generated requirements (bundled contracts) that are out of the reach of small businesses to fulfill.
In light of the government contract award consolidation trend, there are a number of ways a small business (or any business for that matter) can increase its probability for winning a government contract. One of these strategies includes teaming with other contractors who have the experience, specialized equipment, proprietary processes, or skilled employees needed to augment your company’s capabilities. Doing this allows companies to strengthen their proposal and offset weaknesses or limitations.
For most small businesses, it is impossible to successfully compete for consolidated government contract awards. As such, the government encourages the formation of small business teams. Awarding contracts to large businesses “with deep pockets” reduces the government’s risk stemming from bankruptcy of the contractor. However, when small businesses compete as teams, the risk of bankruptcy is reduced, since the financial risks are spread across all team members. For this reason, the government looks favorably upon small business teaming arrangements.
Benefits of Teaming for a Small Business
Through teaming arrangements, small businesses can achieve tangible benefits and expand their prime contracting (and subcontracting) procurement opportunities with the government. By forming teams, small businesses can do the following:
- Take advantage of relaxed SBA affiliation rules
- Maximize complementary skills, resources, and capabilities
- Reduce contract performance and financial risks
- Develop a direct relationship with DoD agencies
- Fill gaps in past performance
- Eliminate contracting award barriers
- Increase competitiveness
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