So you’ve done your homework: completed a thorough market research and identified the key government departments and agencies that need your product or service… Congratulations -- you’re well on your way to securing a foreign government contract. To help you finish the job, here are some tips that will help you turn the “opportunity” of a lifetime in a winning deal.
Know what is expected.
When receiving a bid document, you should set aside the time necessary to carefully read and review all the documents provided, including all amendments and appendices. These supplementary documents contain the rules, regulations and guidelines that must be met for your submission to even be considered.. There is nothing more devastating than devoting hours of company time, resources and money to have your bid rejected because of something that seems like a “mere formality.”
Take care of the basics.
When selling to foreign governments, it is critical to assess whether you have met their most basic guidelines. You may be required to register your company with the relevant government agency or its affiliates – check back regularly to make sure the information is up-to-date. Foreign governments may require their suppliers to access secure sites or review sensitive information – something that is guaranteed to stop the bid process – dead in its tracks – if your company does not have the proper level of security clearance. Finally, make sure that you can sell your product – do you have the proper vending licenses, product certifications and export permits? Without those, your product, no matter how great, can end up stuck in limbo between the borders. Things like security clearances and quality assurances often take several months - don’t wait until you have an opportunity to get the process started or you’ll be sure to miss it!
Smaller can sometimes be better.
For some entrepreneurs, any business is good business. But if the company does not have the experience, capacity and resources to handle the project, this opportunity of a lifetime could quickly turn into the firm’s biggest nightmare. Look for opportunities where you know you can perform well. A succession of successful small contracts can lead to larger awards and more business, giving you the opportunity to grow your company. Large contracts are rarely awarded to businesses with no track record, but even if you did win a large initial contract, failing to perform well could become a barrier to future government contracts.
Give them what they want.
In their eagerness to win the deal, firms will often offer a Cadillac, and the price that goes with it, when all the buyer needed was a Volkswagen. Government procurement officers are very sensitive to price differences between the various bids and they always look to pay the least amount of money for what they need. So even if you can offer a product better than what your buyer is asking, it is in your best interest to offer the more common product at the better price. Your initial proposal should comply with the minimum requirements of the bid at the lowest possible cost – you can always submit a detailed attachment that shows them what you can really do!
Early to bid…!!
For any government procurement officers, the rules on timing of bid or proposal submissions are the easiest to respect- usually without exceptions. When preparing a proposal, allocate sufficient time for the mailing or the faxing. As a general rule, you should aim for the department or agency to receive the bid at least one day before the deadline to allow for any unforeseen problems. Also remember that the closer to the deadline you email or fax your document, the more chance of getting a busy line or malfunctioning email system due to the numerous competitors sending their documents at the same time. If in the process of putting your bid together you realize that you won’t have enough time, you can officially ask for an extension of the submission time that will be granted and advertised to all potential bidders if the request is accepted.
When in doubt, ask questions!
If you have questions or are unsure about certain aspects of the agency’s request for bid or proposal documents when reviewing them, contact the procurement officer in charge of the process to get clarifications. Also make sure to keep track on the buying agency’s website of the questions other bidders asked and the responses provided. The Canadian Commercial Corporation offers a Bid/Proposal Preparation service to Canadian companies wishing to get some assistance in that domain. CCC’s Bid/Proposal Preparation experts structure the sale and your proposal to make it attractive to the buyer and to enhance your competitiveness.
There are many other common sense things you can do to secure a contract with a foreign government. The key is to be patient. Getting a sale within the international public sector market is a labor of love. The successful players on that scene had to submit numerous bids and encounter many rejections before getting that first contract. If you have decided to pursue international public sector markets do not hesitate to ask around for advice from companies already established in the market or from Canadian government organizations involved in selling to foreign governments such as the Canadian Commercial Corporation.
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