In the previous installment we discussed making federal sales up to the point of transacting the deals (signing a contract). Transacting or closing the deals can be done in several ways.

The first option is for the work to be done under a subcontract with a prime contractor already working for the agency. This would be a quick way to close the deal but presents several problems. The contracting officer is required by law to direct the prime contractor to buy from subcontractors competitively, so your company might not get the work (but in most cases you do). The government has to pay the prime contractor's overhead, and the prime contractor will reduce your profits so it can take a profit on the subcontract.

In addition, the end user is theoretically supposed to work directly with the prime contractor rather than the subcontractor. Note, I said theoretically. But even if you work with the federal end user directly, you are still under the thumb of the prime contractor.

Alternatively, the end user and the contracting officer could decide that their only option is to publish the requirements for the project as a public bid. Your company will have to write an expensive proposal, you will be exposed to significant competition from others interested in the project, and it will take an average of two hundred days or more for an award decision to be made.

The best solution is to use a multi-vendor contract to close the deal. As mentioned previously, GSA Schedule buys can be accomplished in a matter of weeks, as opposed to months, and competition for the project is reduced significantly.

The moral of the story: Make it easy for the buyer to choose you. Contracts like the one outlined above usually take six months to a year or more to sell, and obtaining a GSA Schedule contract requires about the same amount of time. Start on your GSA Schedule application now and don't get caught without a closing mechanism when it is time to sign a contract.

Federal Sales 101: Winning Government Business

Participating in the federal sales game can be an extremely frustrating and overwhelming endeavor. Chasing down leads often turns into an exercise in trying to negotiate your way through a maze with many, many dead ends. Our seminar "Federal Sales 101: Winning Government Business" will put managers and sales people on the right path to establishing immediate relationships and closing government business. The seminar is led by Federal Sales Academy Director and "On the Sales Firing Line" columnist, Eileen Kent. Read more...

Sign-up today for the next "Federal Sales 101: Winning Government Business" class!

To learn more about this seminar, call 866-519-4482, Ext. 110 for assistance.

A GSA Proposal Solution Designed Specifically for Small Businesses

GSA Schedules eLab - Develop your GSA proposal in 3 days at our eLab. Fedmarket provides you with a Request for Information (RFI) prior to your arrival at our eLab. You are instructed to bring the requested corporate data with you to the course. Attendees should, with the assistance of our GSA staff, complete their GSA offer prior to the end of the eLab's third day. Many attendees complete the process and leave with a completed proposal within two working days. If you are unfamiliar with the proposal process, the GSA eLab is the solution for you. The GSA eLab is offered monthly at the Federal Sales Academy in Bethesda, Maryland. Read more...

Sign-up for our GSA Proposal Preparation eLab today!

To learn more about our GSA products and services, call 866-519-4482, Ext. 110 for assistance.

Call Fedmarket's sales staff at (888) 661-4094, Ext. 8 with questions concerning these or any other products or services Fedmarket offers. E-mail inquires may be sent to the following: sales@thefederalmarketplace.com.