Sink your teeth into government pitch

Don't be daunted by the prospect of punching above your weight and tapping into some big government contracts.

vito interlandi

GOVERNMENT purse strings might be tightening, but there are still opportunities for the small end of town to tap into some big contracts.

While the demands might be challenging, winning a government contract will ensure your business has plenty of work for an extended period and you can punch well above your weight.

Dun & Bradstreet accounting firm chief executive officer Gareth Jones says having the government as a customer can be win-win situation.

"You benefit from the assurance that this is a customer who won't go broke or become insolvent," he says.

"That is something that can have an enormous impact on small operations."

Hayes Knight accounting firm director Vito Interlandi says some private sector firms have a preference for larger firms, while some governments actively seek equal access to small and medium businesses.

"Size is not really relevant. It is more about what you bring to the table," he says.

However, he warns if it is a really big project you have to understand what is being asked of you, whether you can deliver it and how much it will cost you.

Interlandi says once a business successfully delivers the results on a government tender, it has a great chance of repeat custom.

"It is a great thing for your CV if you are a small or medium business to say you have played a successful part in a big government project," he says.

Jones says small businesses shouldn't feel that their size excludes them from doing business with a government.

"It's not about the size of your business, but the expertise that it offers," he says.

"There are a large and diverse number of government departments, agencies, authorities and other bodies which have an equally large and diverse range of needs from advertising and design, through to equipment maintenance and office cleaning."

Jones says doing business with government will bring a certain level of recognition to any business.

"Like all aspects of your business, the key is to be prepared," he says.

"Make sure you understand how the tender process works and what will be evaluated, such as your skills and experience, ability to complete the work to a high standard, quality assurance requirements, and the potential risks or limitations of your business.

"While your costs will be an important consideration, it's not about being the cheapest option out there but representing the best value for the best outcome."

Interlandi says it is very important to do your homework so you fully understand all the issues surrounding the project.

"It is so important to put effort into relationships to ensure the project runs smoothly and could lead to more work," he says.

He says it also is important to mount a compelling case.

"Make the guy reading the tender document want to read your pitch," Interlandi says.

KEYS TO SUCCESS

- Understand tender evaluations

- Understand tender pricing

- Have a good track record

- Build relationships

- Address the evaluation criteria

- Your tender will be evaluated on cost and non-cost issues such as technical merit