The federal fiscal year started on Oct. 1. This means that the fourth-quarter (July-Sept) was a spending spree for federal buyers. If you’ve been following the trends on FedBizOpps you’ll notice that the number of new early stage solicitations (Pre-solicitation and Sources Sought) is starting to rise. The fourth-quarter saw mostly notifications of money that was being spent – e.g. Sole Source, Special Notice, and Re-awards of one type or another.
When the dust settles and the final numbers are reported for the 2009 federal fiscal year, spending will have topped $550 billion. Fiscal year 2010 is likely to look much the same. On top of that, the Obama Administration has set a goal of spending 70% of the stimulus money by this time next year. That’s $592 billion. So far, only 47% has been allocated for specific purposes; of that only 16% has been spent. That leaves over $314 billion of new money that has yet to be allocated.
This year is looking very stimulating.
Remember, the stimulus money is actually small compared to the everyday purchases that federal, state, and local governments make. What’s more important – the government buys everything. The question is whether you’re willing to do what it takes to win the business.
So, the money is out there – you just have to do your research, choose the correct opportunities to pursue, and start responding. Our suggestion – start with a simple process.
- Do your research – follow the deals on FedBizOpps, read about government spending, talk to potential partners. Get involved early – you have almost nothing to lose by responding to a Sources Sought solicitation – if nothing else, it will help you tailor your message to government buyers.
- Choose wisely – First, if you are small business, look first at small business set asides, your chances of winning these are higher. Second, stay centered – there isn’t a need to stretch in most cases, look for the deals that fit your company.
- Respond – read the RFP, follow the rules, and above all, respond on time. For RFPs, if you don’t have time to prepare a reasonable response (quote) you probably are better off moving on to the next deal. If you’re involved early (and you WILL be, right?) ask questions before you respond. There isn’t any need to guess – if it’s unclear, ask.
