The Real Scoop on Government Contracting

But, according to the same article, there appears to be some solutions on the horizon.  According to Richard Gunderson, deputy chief procurement officer at DHS, officials are pushing to provide additional training for employees, certifications and the funding necessary for this type of training.  Gunderson also said DHS is focusing on attracting acquisition staff members through internship programs and then working to retain those people. In fiscal 2004, the department's Office of Chief Procurement Officer had four employees while the entire department had 603 contracting officers. By the end of fiscal 2005, that office had 30 staff members handling policy and oversight, and DHS now has more than 1,000 contract specialists, he said (FederalComputer Week, 17 Sept 2008).  One of the most crucial positions is those of contracting officers – they are the explicit authority in dealing with contracts.  However, according to Gunderson, they are difficult to find.  “The great demand far exceeds the number of qualified midlevel and senior-level contracting professionals,” he said.  Although the department is hunting employees, James Taylor, deputy inspector general at DHS, said recent budget increases have allowed DHS to fill vacant acquisition jobs. In April, the Government Accountability Office reported that DHS has approximately 61 percent of the necessary acquisition staff members in place. That leaves more than a third of the jobs unfilled, he said (FederalComputerWeek, 17 Sept 2008).

The Future of Government Contracting

Also, with the economy the way it is now, people are looking for new ways to generate income.  What better place to start than the federal government?  The government is one source of business that never slows, no matter what the economy does.  It may pause for a minute or two, but will never completely go out of business.  If one area is temporarily shut down due to lack of funding, there will always be another door open elsewhere in the government.  Many people hold back from federal contracting because it can be a difficult process, with the endless paperwork, cumbersome rules and regulations and long waiting periods.  But, for the persistent few and the economy heading into what could be a prolonged recession, the federal government is a good place to start (JSOnline, 8 Oct 2008).

Conclusion

No procurement system is perfect – there is and always will be room for growth.  Still, the procurement system in place in the United States is the best overall in the world, despite its many shortcomings.  From a personal standpoint, I am a former federal government employee and, until recently, was a government contractor.  I have been on both sides of the coin and, if I had to choose a preference, I go with government contracting.  For those who love flexibility, independence and change, the world of contracting is a wonderful place. 

The premise of this article was to enlighten the readers with a heightened knowledge of government contracting, the ins and outs of the process as well as the pros and cons of doing business with the federal government.  Also, I hope to have given you a better understanding of what goes on behind the scenes, those things that people may have heard rumors about, but not having a real sense of what exactly is involved or how complicated the whole process can be, especially for those trying to get a foot in the door. 

One may ask why commit valuable resources to chase government opportunities whose profit margin is historically low?  The answer is how hungry you are for work and the project risk involved.  More important, commercialization and global marketing may make it worthwhile, as, for example, Raytheon found out by selling its U.S. air defense systems to countries in the Middle East (Giallourakis, p. xxviii).

No one is saying it’s a piece of cake to win a government contract, especially for a start-up without venture capital, but, as one saying goes, “Nothing beats a failure but a try.”  You have to start somewhere.  Why not the federal government?  That is our goal.  All we need is our first slice of the federal procurement pie.  Let’s get started! (Giallourakis, p. xxviii).

DiGiacomo, J. & Kleckner, J. (2005).  Win Government Contracts for Your Small Business.  Illinois:  CCH Tax and Accounting.

Giallourakis, B.C. (2008).  Contracting with Uncle Sam: The Essential Guide for Federal Buyers and Sellers.  Maryland: Naval Institute Press.

Johnson-Elie, T. “Government contracts help businesses in unstable economy.” JSOnline, 8 Oct 2008 , http://www.jsonline.com/business/32441779.html

Potter, M. “Federal Money Problems Piling Up & Will Affect Contracting.” BNET Government. Retrieved June 21, 2009, World Wide Web,http://industry.bnet.com/government/10002069/federal-money-problems-piling-up

Simchi-Levi, D., Kaminsky, P. & Simchi-Levi, E. (2004).  Managing the Supply Chain: The Definitive Guide for the Business Professional.  McGraw-Hill Companies.

Stanberry, S.A. (2009).  Federal Contracting Made Easy, 3^rd Edition.  Virginia: Management Concepts, Inc.

Weigelt, M. “Acquisition Workforce called underdeveloped.” FederalComputer Week, 17 Sept 2008 http://fcw.com/articles/2008/09/17/acquisition-workforce-called-underdeveloped.aspx