How SLED Vendors Can Get Out Ahead of the Bidding Process
Nonwarit / Shutterstock.com
Agency connections and procurement data are key to targeting projects earlier than the competition, according to a new white paper.
Successful vendors target upcoming state, local and education projects—about $504 billion worth available at any given time—before bidding begins by analyzing procurement data and forging relationships within SLED-related agencies, according to a new Onvia white paper.
Onvia, a Seattle-based government business intelligence provider, recommends building consultative relationships with both procurement officials and secondary influencers among the approximately 90,000 SLED agencies in the U.S.
Taking an interest in agencies’ futures by providing useful information and helping develop bid specifications for upcoming contracts is a winning vendor strategy.
Aside from using historical purchase data to identify top buyers of a product or service, according to the report, “[b]y studying prior awards at a targeted agency, the agency’s buying cycle can be better understood, helping to predict upcoming purchases and inform a vendor’s outreach.”
Keeping an eye out for expiring fixed-term contracts, set on a fixed time period averaging 2.5 years, is another good rule of thumb because they tend to be recurring and agencies may wish to change vendors to reduce costs or improve customer service.
By contrast, budgeted projects consist of a fixed scope of work requiring significant agency investment, and vendors should prioritize those that are approved over those that are proposed—providing advice where parameters are scarce, according to the white paper. Often subcontractors are necessary to handle the full workload and partnership is a must.
Only after creating a profile of a potential buyer—complete with purchasing history, competition level and pricing—should vendors reach out to the proper agency contacts, according to Onvia:
The goal is to build credibility and position the vendor as a viable supplier for the buyer’s future purchase, while raising awareness of that company’s brand and solutions. These should ideally be longer-term consultative business relationships based on trust where the vendor is positioned as a helpful, collaborative consultant willing to solve problems and provide input into upcoming bid specifications to emphasize their competitive strengths.
The full report can be read here.
Dave Nyczepir is News Editor for Government Executive’s Route Fifty.
NEXT STORY: Mich. Township’s 21-Year-Old Deputy Treasurer Is in Hot Water; Maine Shifts Gears to Weatherization