Government Opportunities

In a recent post (Selling to Your Uncle (Sam)), we discussed the possibility of selling things to the federal, state, and local governments.  We also published a poll, asking if you presently make any government sales.  Surprisingly, 100% of those who responded to the poll said "no".

If you'd like to pursue this additional business, we have a resource that might help you. We've gotten our hands on a limited number of books called "Procurement Opportunities Guide".  This 72 page book is distributed by MasterCard and the Association for Small Business Development Centers.  While they last, you can get a free copy.  Just click on the "Email Me" link on the left and send me your name and address.  Please put "Government Book" or something similar in the heading.

Like I said, the quantity is limited, so if you want one, order it now.  They're free while they last.

Comments

[Greg Hull]

As manufacturers reps in the lighting industry, my company has many opportunities to participate in "government", or more specifically, military base projects. We have been selling domestically-manufactured lighting to these military housing projects for years, but we can't sell Tacony's Regency or Vista brands because of the "Buy America" act.
What drives us crazy is that our competition, supplying several ceiling fans made entirely in Asia, possibly from some of the factories that Regency is using, is claiming that they meet the "Buy America" criteria.
Can someone tell me what is going on? How can Tacony Corp. get some of their products qualified?

[Mike Buckley]

Greg,

Good question! As I understand the Buy American Act, a government procurement officer must buy American made products as long as the American product is the lowest bid. If the lowest bid is a foreign made product, the buyer must add six percent to that price. If it's still lower than the American product, the buyer can go ahead and purchase the foreign product.

I would think that you would have no trouble beating the lowest American-made item by more than 6%.

There are some exceptions. For example, if the dealer making the bid is owned by a member of a minority group, a woman, or a disabled veteran, their bid should get preference.

Also, purchases less than $2,500 can be made by government credit card and require no bid. Purchases between $2,500 and $2,5000 require the purchaser to seek three bids, but not necessarily to get three bids. If the buyer calls three vendors and two aren't interested, he can give the order to the third one. He (or she) has met the requirements.

Sometimes the rules vary between government agencies, but those are the general rules as I understand them. I've posted a link to the Buy American Act in the links list on the left.