What are the Easiest Government Contracts to Win?

If you work for a business seeking to expand its public sector sales, or one that is simply setting out to try and win a contract from a government entity for the first time, you are probably wondering about the easiest government contracts to win – and how your business can get started.

This guide will explain the different types of government contracts in the market, the easiest government contracts to win depending on your type of business and other tips you need to know to win more government contracts.

What exactly qualifies as a government contract? A government contract is an agreement between an agency and an individual or company to procure the use of goods or services. Governments of all types and sizes typically use these to work with private sector entities or groups to help provide the goods and services their constituents require.

The road to gaining a government contract is challenging, complex and highly competitive. This step-by-step guide outlines best practices that will help you build a winning public sector sales pipeline and more easily win government contracts.

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Different levels of government can have different levels of difficulty when you are trying to find and win government contracts. Whether it is the U.S. federal government, a U.S. state or local government, or a Canadian government entity, it is worth understanding the ins and outs of how the governments you are selling to procure their goods and services.

U.S. Federal Government Contracts

The U.S. federal government is made up of 15 different executive departments and hundreds of federal agencies and commissions – meaning there is no shortage of government contracting opportunities.

The easiest federal government contracts to win are often larger contract vehicles, such as GSA Schedule contracts. The GSA Advantage program is effectively an online marketplace, offering the federal government and other registered buyers access to millions of products and services from GSA-registered contractors.

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U.S. State and Local Government Contracts

Companies doing business with state, local and education governments (sometimes referred to as SLED in government contracting) know that they can offer huge amounts of public sector sales opportunity as well, despite a broader and more fragmented market.

The easiest state and local contracts to win are typically those that align best with a company’s core capabilities and geography. Having history working with one government entity and fulfilling your contract obligations properly, makes it easier to win the next contract down the road.

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Canadian Government Contracts

Governments in Canada need to provide what their citizens need, no matter whether they are federal, municipal, provincial or territorial governments. The process to win Canadian government contracts differs depending on the type of contract or the government entity involved.

As with state and local contracts, the easiest Canadian government contracts to win are the ones where your business aligns well with the needs and characteristics of the government you are trying to work with. If you are just setting out in Canada public sector sales, the below guide shares the details of what you need to know to get your foot in the door.

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Some types of government contracts are easier to win than others. These are the four most common types of government contracts that you will encounter when doing business in the public sector.

Fixed-Price Government Contracts

These types of government contracts provide for a firm price or, in appropriate cases, an adjustable price. This adjustable price may include a ceiling price, a target price (including target cost), or both. There are several different types of fixed-price contracts, such as Firm-Fixed-Price (FFP) or Fixed-Price Incentive contracts.

Cost Reimbursement Contracts

Cost reimbursement contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. While not necessarily easier to win, these can be less expensive than a fixed-price contract, although more regulation is required.

Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

IDIQ contracts provide for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The government places orders for individual requirements which can help streamline the ordering process.

Time and Materials Contracts

Also known as T&M contracts, this type provides for acquiring supplies or services on the basis of direct labor hours and actual cost for materials. Time and materials contracts can be more straightforward – but accounting of all time and materials used is necessary.

Guide to Government Contract Types

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Earning a place for your business on an approved vendor list can be your ticket to winning more government contract work. Nearly all prime contractors maintain lists of preferred vendors and subcontractors based on the quality and timeliness of their work and other attributes. Many businesses work diligently to get on these lists because they put these businesses one step closer to participating in a government procurement. Getting on these lists can be one of the easiest ways to win government contracts.

Succeeding at selling to the government is not an easy task, but the rewards can be hugely valuable. Businesses that master these steps can diversify their sources of income when they develop a winning public sector sales strategy.

Investing in a tool like Deltek’s GovWin IQ can help vendors to more easily identify initial contract requirements, historical information, funding data and potential competitors — all of which is critical intelligence when preparing to bid and attempt to win a government contract. GovWin IQ also provides businesses with visibility into early-stage opportunities, deep planning intelligence, potential teaming partnerships and strategic insight to get ahead of the competition.

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