Government procurement, also known as government purchasing, is the process by which government agencies acquire goods and services. Acquisition personnel determine their agency’s requirements in the procurement process and post a solicitation on the Federal Business Opportunities (FedBizOpps) website. Interested companies prepare their offers in response to the solicitation, and, under applicable provisions of the Federal Acquisition Regulation (FAR), agency personnel evaluate the offers.
Combined, U.S. government agencies represent the world’s largest customer. The Federal government spends over $4 trillion per year, while State and local agencies spend over $3 trillion. Government spending is the largest industry in the United States, accounting for over 13% of U.S. GDP.
For companies unfamiliar with the government procurement process, selling to the government can seem daunting. “Too much red tape, the process is too confusing, it takes too long to win government business” are common thoughts, and it is often seen as a market that is just not worth the perceived headache.
Here are some of the most commonly-held misconceptions about the government LMS procurement process that have deterred companies from pursuing any opportunities with the government:
Whether your company is new to government sales or has limited experience working with a few agencies, there is a common misconception that “it might not be worth the effort because government agencies are just looking for the cheapest option.” This is false. While procurement personnel always want to stay within budget, they also consider several other factors when evaluating their options. Most LMS vendors will be around the same price when procuring an LMS, but there are also hidden long-term costs. While some LMS vendors claim to be cheaper upfront for user licenses, there are also other fees, such as implementation and integration costs. An LMS deployed as a cloud solution may be more affordable but may not have the functionality or flexibility your organization needs. This can force agencies to acquire other products to fill the gaps that the current LMS can’t provide.
The federal government and state and local agencies have the right to award government contracts to the candidate they deem best suited, regardless of the actual bid amount. Organizations must be competitive but confident in their company’s ability to provide quality goods or services and have a very good chance of winning.
Government agencies don’t know who is in the industry unless companies market themselves to the government. While an existing provider could retain its contract, contracts are not always awarded to existing contractors. Some learning technologies may have worked in the past, but may not work for future endeavors that the agency may be seeking. Sometimes, agencies may be forced to restructure their organization and workforce, leaving their current employee development tools out of step with their future goals.
A significant factor in winning government opportunities is having a good understanding of how the overall procurement process works for your target agencies. Every agency and state may have different rules/guidelines for their procurement processes, and hiring someone familiar with them is important.
At Meridian, we have a team with a deep understanding of the federal procurement process. Our diverse portfolio of Federal, State, and Local procurement vehicles makes it easy to work with us. We know purchasing solutions and services on behalf of an agency can be time-consuming, and we are equipped to guide you through this complex process.
When federal, state, and local agencies begin searching for new products/services, they seek the “best overall value” solution. Some of the variables procurement departments focus on include which solution will work for their agencies’ needs long-term, require the least maintenance/support costs, and best support the agency’s needs overall.
Before switching to any new LMS, it’s essential to understand the reason for the switch. Agencies should define the problem areas of their current solution, map out their needs and objectives, and communicate their expectations to the vendor. Once the problems and expectations for the new LMS have been specified, the vendor will conduct a feasibility check to identify potential challenges that may arise during implementation. This is key as it allows the customer and vendor to be prepared for any unexpected delays in the data migration.
It is crucial to ensure no data loss during the data migration process. The key goal is to migrate legacy user, course, SCORM package, and assignment data easily and securely. At Meridian, we have an SCORM authoring eLearning system included with our LMS at no additional charge for qualifying new clients. This integration enables your content authors to collaborate to create engaging learning content rapidly and facilitates an easy transfer of your content.
The General Services Administration (GSA) establishes a series of contracts/schedules that list specific products/services offered by companies at predetermined prices. The items on the GSA contract/schedule are typically commodities purchased in high volume by government agencies. The success of the GSA contract process prompted many states also to create contracts/schedules structured similarly to the GSA, but typically with products/services unique to the specific state.
Many organizations are hesitant to pursue government business opportunities because of the misconception that they must be on a GSA or State contract to win a government contract, or that government agencies purchase solely from a GSA or State contract. This is not true; there is no requirement for a company to be on a GSA or State contract to win government business.
However, if a company has a list of its products/services on the GSA and/or a State contract, this can shorten the acquisition process. Meridian is currently on the GSA 70 schedule.
While selling to the government, just like any business endeavor, may not be for everyone, it is certainly a market to consider if you want to diversify your revenue stream. As the largest industry in the United States, there are ample opportunities for companies to win government business. Don’t let these commonly held myths stop you from aggressively pursuing government sales.
