By John Carnett
As the CEO and President of Marketing Maven, I have experienced firsthand the complexities and rewards of securing government contracts through certifications. Certifications such as the SBA 8(a) Business Development Program, the Women-Owned Small Business (WOSB) certification, and local certifications from entities like the California Department of General Services (DGS) and L.A. Metro can be both a barrier and a boon. These certifications, designed to ensure fair access to government contracts, open doors to exclusive opportunities and enhance business credibility. However, the process of obtaining and maintaining these certifications is often arduous and fraught with challenges.
The Struggles of Certification
1. Time-Consuming Applications:
The application processes for certifications like SBA 8(a) are notoriously detailed and time-consuming. They require businesses to provide extensive documentation to prove eligibility. For instance, the SBA 8(a) certification demands proof of economic and social disadvantage (with a new required social narrative), as well as a detailed business plan.
This can be overwhelming for small businesses that may already be stretched thin with daily operations. Many companies, including Marketing Maven, find it necessary to hire experts to assist with the application process, adding an extra layer of cost and complexity.
2. Logistical Challenges:
Location is a critical factor in securing government contracts. Many contracts can require on-site work. This necessitates having a physical presence or partnerships in key locations, which can be logistically and financially demanding. Additionally, certain contracts also require specified security clearances. Obtaining these clearances can be a lengthy and challenging process, requiring specialized personnel or partnerships with cleared entities.
3. Financial Considerations
Profit margins in government contracts can often be lower compared to private sector contracts. This can be a deterrent for some marketing agencies. However, the stability and volume of government work can offset these lower margins, providing a steady stream of revenue and opportunities for long-term growth. It’s a balancing act that requires careful financial planning and a strategic approach to contract bidding and management.
Strategic Considerations
- Research and Preparation:
For marketing agencies considering pursuing government contracts, thorough research is essential. Understanding where potential federal customers are procuring services is crucial. Many opportunities are released through the General Services Administration (GSA), which requires getting on the GSA schedule. This process, similar to obtaining certifications, is complex and often necessitates professional assistance.
Research goes beyond just knowing where your customers are procuring services; it involves identifying who your customers are. Which agencies are buying marketing services? A wealth of information is available on SAM gov, but other resources are equally valuable:
- Federal Procurement Data System (FPDS): Often referred to as the Google of government contracts, FPDS allows you to search for contracts by NAICS codes, revealing top contracting agencies and suppliers. This can help you identify trends and opportunities in government contracting.
- USA Spending: This platform shows where your tax dollars are spent, helping you notice trends in government spending by award type, agency, location, recipient, and more.
- GSA eLibrary: This resource allows you to search for competitors and discover their rates, providing a benchmark for your pricing strategy.
Additionally, there are paid platforms like GovWin, GovTribe, or Bidspeed that can help track and monitor opportunities, ensuring you don’t miss out on potential contracts.
- Value of Networking:
Networking within certification communities is invaluable. Attending relevant events, participating in supplier diversity programs, and actively engaging with other certified businesses can open up new opportunities and provide critical insights into the government contracting landscape.
For Marketing Maven, networking has been one of the most valuable activities. Through networking, we have identified partners to subcontract with, expanded our offered services, tackled large RFPs with the help of partners, and been included in bids for large projects. Building relationships with key stakeholders and potential partners can also help overcome some of the logistical challenges associated with on-site work and security clearances. Networking not only facilitates collaboration but also provides insights into best practices and emerging trends in government contracting.
The Benefits of Certification
Despite the hurdles, the benefits of these certifications are substantial.
1. Access to Set-Aside Contracts:
The primary benefit of obtaining these certifications is access to set-aside contracts. These contracts are reserved for certified businesses, reducing competition and increasing the likelihood of winning bids. Set-aside contracts can also simplify the contracting process for contracting officers, allowing them to sole source opportunities to certified businesses without going through a lengthy competitive bidding process. This not only saves time but also ensures that the contracts are awarded to businesses that meet specific federal standards, promoting diversity and inclusion within government procurement.
2. Enhanced Credibility and Visibility:
While certifications enhance a business’s credibility and visibility, it’s crucial to remember that having a certification alone does not guarantee contract awards. To truly benefit, agencies must deliver exceptional services. Certifications signal that a business meets stringent federal and state standards, but businesses must also demonstrate they are just as good or better than larger companies offering similar services.
For Marketing Maven, certifications like WOSB have opened doors to exclusive bidding opportunities, but our success in winning these bids hinges on consistently delivering high-quality work and proving our value in the competitive landscape of government contracting.
- Additional Resources and Support
Certifications often come with additional support and resources. Programs like the SBA 8(a) offer business development assistance, mentoring, and training. The SBA also has the Emerging Leaders program, which helps you think about your business strategically.
This program aids in creating a detailed business plan, setting important KPIs, and clearly articulating your differentiators. It also provides valuable networking opportunities. These resources have been invaluable in helping us understand the complexities of government contracting and in building the capacity to meet the stringent requirements of federal contracts.
- Broadening Business Horizons:
Local certifications, such as those offered by the DGS (including Small Business (SB) and Micro Business (MB) certifications) and the Disadvantaged Business Enterprise (DBE) and Small Business Enterprise (SBE) certification through Metro, are equally important. These certifications not only prioritize businesses in state and local contracting opportunities but are often recognized by other states with similar programs. This reciprocity broadens the scope of potential contracts, allowing businesses to pursue opportunities across state lines without undergoing multiple certification processes.
Conclusion
Certifications are powerful tools for marketing agencies aiming to secure government contracts. While the journey to obtaining these certifications is challenging, the rewards are substantial.
For Marketing Maven, certifications have been instrumental in our success in the government contracting sector, securing several sole source contracts. By leveraging these certifications, marketing agencies can unlock new growth avenues and build a robust presence in the competitive government market.
