Government Consulting: A Guide for Contractors

Consultants from the public sector often work with government agencies to help them improve their current strategies and identify ways to function more effectively and better serve the public.

In This Article:

• What is Government Consulting?
• Government Organizations Seeking Consulting Help
• Top Industries for Government Opportunities
• Challenges Faced by Consultants
• Tips for Consulting with the Public Sector

Government consulting refers to the practice of the public sector providing expert advice and additional guidance to government entities, with the ultimate goal of improving their overall performance and effectiveness in providing services for their citizens. A government consultant is an entity or business that provides these services.

Governments often release a bid, proposal or quote to seek consulting services from private companies or individuals.

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There are a broad range of government entities seeking to do business with the public sector and engage with them on consulting activities, including but not limited to:

• U.S. Federal Government: With more than 15 executive branch agencies that all have unique responsibilities and countless contracting vehicles and opportunities, the U.S. federal government is an incredibly lucrative source of public sector sales revenue for businesses that know how to take advantage.
• State and Local Governments: States, cities, counties, education agencies and smaller special districts all require goods and services in order to serve their citizens. The landscape of state and local government contracting can be fragmented, but it offers many niches for specialized vendors to find business opportunities.
• Government Entities in Canada: The federal government, along with the various provinces, territories and municipalities, offers many services to the citizens it serves. Like the U.S. government, the Canadian government relies on the private sector to supply many of these goods and services.

Government entities purchase goods and services from a wide range of industry categories. These are some of the industries where there may be opportunities to offer advice to governments on how to do business with the private sector.

Information Technology Consulting

Governments of all sizes frequently seek outside consultants to help meet their information technology (IT) needs. For several years, the top priorities in government IT contracting and consulting have remained consistent, with an emphasis on IT modernization, cybersecurity and the implementation of AI technologies.

Transportation Consulting

Consulting on transportation with a government agency can be as broad as assistance in developing new roads and bridges, technology services used to power electric vehicles, risk management consulting on local infrastructure projects and everything in between. Connected and autonomous vehicles are steadily gaining ground and being considered by more governments in this specific industry.

Architecture, Engineering and Construction Consulting

Architecture, engineering and construction (AEC) consultants are commonly sought out by SLED and federal agencies. Some of the AEC-related items they are seeking input on are energy efficiency and sustainability, which have grown as priorities for design criteria. Qualifications-based selection (QBS) has also grown, with an emphasis on quality-based selection of contractors rather than a pricing-oriented approach.

Professional Services Consulting

Government leaders often turn to private companies when they are seeking a management consultant or another type of professional services expert to help with strategic planning. These consultants can help in areas like change management, defining roles and responsibilities, identifying bottlenecks or inefficiencies, project management and fostering a collaborative culture.

Operations and Maintenance Consulting

Not as common as some other industries, the operations and maintenance (O&M) segment can offer opportunities, particularly with state and local public sector organizations. This industry is attractive for small public sector consultants, as both teaming and subcontracting opportunities are plentiful.

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While opportunities are abundant for public sector organizations to work with the private sector, those business leaders face similar challenges in the market today. The Deltek Clarity Government Contracting Industry Study has highlighted four major obstacles these organizations face.

1. Competitive Talent Challenges: The market for talent is increasingly competitive across many key functions, with many companies attempting to alleviate their difficulties with technology solutions.
2. AI Implementation: While exciting new tech like AI is starting to gain traction beyond traditional uses to more practical and operational use cases that can impact companies' bottom line, companies still are challenged to find the best way to implement this new technology.
3. Continued Inflation Concerns: Inflation has eased somewhat, but it is still a top concern for companies and consultancies facing growing costs associated with their supply chains, talent and compliance.
4. Increasing Efficiency: Companies continue to reevaluate a variety of business processes to find efficiencies. Those who do not invest in the right solutions or plans can find themselves falling behind.

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Working with the government can be different from consulting for a normal business—federal agencies, after all, have very different needs than Fortune 500 companies.

When you are seeking opportunities to sell consulting services to the government, you need to create a solid proposal to win their business. After carefully considering the current and future state needs of your government client, you'll document in detail the features, benefits and timeline of the solution you plan to provide when you submit your proposal.

Make sure your solution description includes:

• Why your approach makes the most sense for the client.
• How you plan to manage the project and your staff.
• What resources you'll need to execute the project.
• The project schedule, deliverables, tools and cost.

The key to creating a good win strategy is knowing your potential client. Aim to understand your client's needs, such as the tangible technical, functional, budgetary and timeline requirements you must fulfill to win their business. But don't overlook their wants, such as the emotional or personal factors that will influence their decision.

Read the guide below for more information on the best steps you can take to create a successful proposal that can help you win more consulting business from the government.

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Now that you better understand the strategies and challenges behind public sector consulting, you are ready to make the most of the government contracting market.

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