Good work if you can get it

From vehicles to paper products, concrete to computers, the government is in the market to buy a seemingly endless list of products and services.

Yet merely having the product or service the government is in the market for doesn't land a company the contract. That's just the tip of the iceberg.

Procurement rules change from the local, state and federal levels of government. Different rules mean different applications, different eligibility requirements and different administrators.

These differences make the act of securing a government contract a time-intensive, often daunting task for companies of all sizes and experience levels. The good news is, it's not impossible for a company to increase its revenue by landing government work. It just takes persistence, a little guidance and that initial "break" into the market.

Process always different

"There is no commonality, except common sense. Otherwise, the process is always different," said Aina Vilumsons, executive director of the Wisconsin Procurement Institute, a Milwaukee-based nonprofit that connects Wisconsin companies with prime contractors and federal, state and local agencies in search of goods and services.

"Like anything, the more you know how to play the game, the better off you are. But that still doesn't mean you're going to get the contact every time."

Know the basics

For companies interested in winning government contracts, knowledge is power. Companies can't sell themselves if they don't know the market and their competitors.

What's being purchased? Who are my company's competitors? Is there a competitor my company won't be able to budge?

Once such questions are answered, Vilumsons said, a company has a better idea on how to target its efforts. Networking is the logical next step.

"Become a player," Vilumsons added. "Don't rely only on the Internet. Business is still largely about personal contacts. Get out there and get to know people."

Internet is valuable

The Internet cannot, however, be ruled out of the picture. These days, it is the main avenue used by governments to post job opportunities.

That said, there isn't one universal Web site that lists available contracts. Similarly, there is not one universal registration form that pre-qualifies a company for all types of government work.

Companies must be proactive in locating each site and qualifying themselves as registered bidders for each level of government contracting.

As Dane County Controller Chuck Hicklin explained, becoming a registered vendor will put a company in the database of potential hires, but it doesn't mean the company will be contacted for work. Roughly 10,000 companies currently are registered with Dane County, so competition can be fierce.

"Registering doesn't guarantee we'll do a bid in your line of business or that your company will necessarily be notified if a job becomes available in your field," Hicklin said.

Submit responsible bid

If and when a company is notified, the key to closing the deal is submitting a cost-effective, responsible bid.

Because Wisconsin is a low-bid state, cost is a crucial determining factor. However, being the lowest bidder doesn't guarantee a contract, said Steve Martinelli, with the Wisconsin Department of Transportation's Purchasing, Fleet and Distribution Department.

"We like to use the phrase, 'responsive and responsible,'" Martinelli said. "Even if a company submits the lowest price, if they're not responsive and responsible, they won't get the job."

Other factors, including a company's size, organizational capabilities and prior work experience, play into the final decision, Martinelli said. All this information is processed on bids or requests for proposals, or RFPs.

Vilumsons said companies need to be careful they accurately represent their capabilities and don't overextend themselves.

"Read what you have to do," Vilumsons said. "If it (the RFP) says you have to pay freight charges, include that cost in your price. If it says you have to travel ten times to the job site, make sure you can do that, too. You have to be able to do what is being asked."

The big players

Some 100 years ago, Mead & Hunt Inc., a national engineering and architectural consulting firm based in Madison, began building dams for the Army Corps of Engineers.

Fifty years ago, the company began another long-standing business relationship with the Dane County Regional Airport.

Along the way, the company fine-tuned its process for securing jobs in the public sector by maintaining its existing relationships and developing a reputation as a company that could repeatedly be relied on to deliver on its contracts.

"It is part of our corporate culture to share a laugh with our clients and build a trust and rapport that allows them to come to us with any concern or issue," said Kary Beck, with the company's corporate communications office.

"I would hope that after they worked with Mead & Hunt that they felt so good about not only the deliverable at the end but the whole process that they would come back. However, we are not so complacent that we would ever assume that."

Today, 80 percent of the firm's business is with the public sector.

The company's Madison office has, at times, included a 10-person staff solely dedicated to pursuing government work and completing RFP's, which, when completed, can be six inches thick and take weeks to complete.

Although the time-intensive application process could be seen as a drawback, there are plenty of advantages to landing government contracts.

Government has money

"They have money and make prompt payments," said Jeff Niesen, Boldt Construction's vice president for construction management, central operations in Madison.

"They also have larger, more elaborate projects than what you often see in the private sector. The work can be more challenging, which I see as a benefit to doing the jobs."

He referred to most government buildings as "100-year" buildings, meaning they are built with higher quality materials and are meant to last.

"Look at fast food or retail buildings," Niesen said. "They have a short-term image. They know they'll be getting a makeover in 10 or 15 years."

Examples of the company's work around Madison include the Kohl Center and the UW Foundation building.

In addition, the company is providing construction management services for the Interdisciplinary Research Center and other campus improvements, including a new dormitory, administration building and parking structure on Park Street.

With these bigger jobs come bigger demands.

"They (the government) are demanding," Vilumsons said. "You need to treat them like your best customer. Know the rules of obligation because there are going to be more. It's not just a handshake with the guy down the street."

Niesen agreed.

"It can be a blessing and a curse," he said. "There are usually hundreds of people involved, and you have to build consensus and make sure everyone is satisfied."

There are several ways for smaller, less-experienced companies to build up their reputations and experiences in the world of government contracting.

"If you're a small drywall company, get in with the general contractor," Hicklin said. "If you're a small construction company, keep an eye on large, upcoming projects. You have to establish relationships with the general contractors to get in on the work."

Less expensive projects

Also, compared to the state or federal governments, local municipalities typically award less-expensive contracts.

"Instead of buying $100 million worth of something, the local government will buy $10,000 of the same product," Vilumsons said. "Small companies find this less daunting."

That doesn't mean less-expensive projects can't be found at all government levels. For example, during the last fiscal year that ended in June, the Wisconsin Department of Transportation let 377 projects valued at $770 million (the amount doesn't include Milwaukee's Marquette Interchange or maintenance contracts).

According to William McNary, Wisconsin DOT's chief proposal management engineer, projects range from bridge work for a couple thousand dollars, to hundreds of projects ranging from $5 million on up to $20 million.

"One of our goals is to partner newer, smaller companies with the larger, more experienced contractors," he said. "But in the end, it's up to the companies. It is a business decision that has to make sense for them."

Frustrating process

Still, smaller companies, particularly woman-or minority-owned businesses, can feel frustrated with the process.

"Some of them will tell me they were too busy to apply, or the main contractors aren't really interested in hiring them (as subcontractors)," said Norman Davis, manager of the city of Madison's affirmative action division. "They believe the primary contractors are just going through the motions and trying to fill out and complete the forms."

By year's end, Davis hopes to introduce a new program that aims to streamline the registration process for these companies, putting more in line for more work.

"I think this program will create more firms that are ready, willing and able to do the work that is being contracted," Davis said.

Jessica VanEgeren is a Madison freelance reporter.