By: Jacquie Spearman, Charlotte GCAP
As we begin the new year, 2021 brings new challenges and opportunities for government contractors. We leave behind a tumultuous year where companies have had to pivot to stay in business. The government has also had to establish new or modified processes for doing business. These updates included SBA consolidating their Mentor-Protégé program, 1 year extension of the 8(a) program, the extension of Section 3610 into 1st Quarter 2021, to the accelerated use of OTA (Other Transaction Authority) for Covid-19 response. The year 2020 saw a constant state of change.
Prior to the end of 2020, many companies likely worked on strategic plans/work plans that will guide their efforts for the following year and beyond. In these plans they have included their sales goals in both the commercial and government markets. Developing and executing an effective capture plan to increase a company’s win rate is critical to successfully securing government awards.
Capture planning is the process of identifying opportunities and implementing winning strategies to capture these specific opportunities. Developing a capture strategy for 2021 during a pandemic comes with its challenges. A company’s focus can fall into various categories: Sustaining, Innovating and/or Growing. Here are some suggestions to consider within each category.
– Sustaining: Maintaining and performing on current contracts will only get you to the end of the contract by reviewing your processes, crafting metrics, and setting goals to solidify your foundation. Implementing continuous improvement in your contract management process can improve the quality of your proposals. Ensuring that your company is adhering to the DoD’s Cybersecurity Maturity Model Certification (CMMC) guidelines/requirements if planning to compete for DoD contracts is critical to sustaining your DoD contracts.
– Innovating: If we are to identify some of the positives during this unprecedented year, one of those would be the innovative spirit of the country’s businesses. Local distilleries refitted their equipment to make hand sanitizer, apparel manufacturers mass produced face masks and gloves, and the influx of new contractors to supply government PPE needs from the federal to the local level. Innovation can come from observance, asking questions, and evaluating your competition and your own performance. Reviewing the business model of a company and asking, “Is this still working for us?”
– Growing: Government spending has continued to grow in the last 4 years. Analyzing trends and being prepared to take advantage of them is one of the keys to expanding a company’s growth in the federal marketspace. A new administration will take office this month. Reviewing the priorities of this administration and recognizing how your company can adjust to meet those priorities is a smart move. Covid-19 is going to continue to take center stage along with economic recovery. Companies benefit by staying abreast of changes in their industry and what the government is planning to spend.
These are just a few things to consider; more specific requirements need to be identified in the capture planning of each company. Prime Contractors that are proactive in their capture strategies are better positioned to win contracts than those that are reactive. North Carolina GCAP Advisors are here to assist you in your formulation and documentation of your capture strategies. Reach out to your closest advisor for assistance.