Best Value vs. Best Price in Federal Contracts: Who wins?
Spending isn’t likely to explode in the next year, but there are definite priorities among government buyers that are important to pay attention to. For the fourth year in a row, the federal government reached its small business contracting goals, spending nearly $100 billion on small businesses, however as more businesses graduate into the world of federal contracting, procurement agencies find themselves looking for better quality over better price as the pool of service providers becomes larger every year. So, what are they looking for? Our inside reports tell us they want the best of the best essentially, quality and low-risk margins are becoming the top priorities during the evaluation process. The next question becomes “Is my small business offering the best value service?”. Well, this can be tricky, especially for new businesses seeking to be awarded a contract. With constant changes in technology and industry the answer to that question is entirely contingent upon the business itself. In other words, businesses must now prove that they have the capability to offer a high-quality service at a low-risk margin through track records of investment, experience, and certifications. With changes like this it’s only a matter of time before the entire market tries to play “catch-up”. Bearing this in mind, small and mid-size businesses should look to review their business models in order to make the necessary changes that highlight their service as the best value above all other providers (including larger corporations). Stay tuned on our blog to get the inside scoop on all these upcoming shifts!
Written By: Michelle Rosario