This week on NVTC’s blog, Jim McCarthy of member company AOC Key Solutions shares how small businesses can gain a market foothold, offset vulnerabilities, obtain site knowledge, open doors to a larger key personnel pool, or spread risks and bid costs through teaming. McCarthy provides ten keys to developing contracting relationships.
Instances of the “lone wolf” pursuit of a government contract by a single prime contractor are vanishing. Today, multi-company teaming arrangements are more the rule than the exception. Companies now team to gain a market foothold, offset vulnerabilities, obtain site knowledge, open doors to a larger key personnel pool, or spread risks and bid costs.
For small businesses (SBs) especially, a teaming arrangement may be the most viable strategy for growth and prosperity. Too often, however, despite best efforts, SBs fail to land on a team. Or worse perhaps, lacking leverage as they cut deals with the prime that are just empty promises. What is a SB to do?
Try these 10 keys to small business teaming:
- Isolate on a primary need of the agency. This requires diligent research and early market intelligence.
- Establish a relationship with the customer with the need. Persistence and patience are paramount to gain face time.
- Get smarter about the need than anyone. Invest time and energy to do your homework.
- Devise and package a solution to meet the need. Solve the problem. Provide the features of your plan, but be sure to focus on customer benefits. Test-drive your plan with the customer.
- Hit the streets to spark interest. Contact every potential prime interested in the opportunity. For bait, tell the prime that you alone have the solution to the customer’s pain.
- Set the hook. Forecast how you can earn the prime N number of evaluation points by solving the customer’s problem. Be bold yet credible.
- Gain leverage. Hint at your solution — but give details only in exchange for a place on the team. But not just any place. Insist on precise terms in writing — a set scope of work (“swim lane”) with a guaranteed level of effort contingent upon contract award to your prime. Be prepared to walk. If one prime will not play ball, go to another.
- Offer something else value-added. Deliver a subject matter expert to help with the proposal. At no cost, prepare 100 percent compliant proposal text for your swim lane. Cover your own B&P costs. Participate for free on color review teams. Offer a candidate key person for bidding. Fund your transition costs if the team is successful.
- Sign your deal. Not just a handshake, but get the terms and conditions in writing. Execute non-disclosure agreements and non-competes.
- Deliver. Don’t forget to circle back to your original customer to inform him/her that you will be delivering your solution as part of [name of prime contractor]’s powerful team. Then meet your commitments just as you would expect the prime to meet its promises.
There is no free lunch. Give something of value to get something of value. Appeal to the best competitive instincts of the primes. Deliver what counts: as a team member present additional evaluation points that make the difference in winning. In so doing, not only do you meet a primary need of the government, but you earn (and deserve) a legitimate place at the team table.
Jim McCarthy is the founder and principal of AOC Key Solutions, a proposal consulting firm dedicated to helping companies win government contracts. Mr. McCarthy’s career spans over 30 years of proposal development, market strategy, and oral presentation coaching to federal contractors. Learn more at www.aockeysolutions.com
For more information on what NVTC has to offer for small businesses and entrepreneurs, check out the NVTC Small Business and Entrepreneur Committee. The committee hosts various programs, including a yearly teaming and contracting event for small companies interested in government contracting. At the event, small businesses can discuss partnering or subcontracting with large companies and meet with government agencies and their small business offices from the federal, state and local level about how to do business with them.