Some Reasons Why Not to Deal With the Government in Regards to Business

Today, many books exist highlighting the monetary advantages of dealing with the US government. The US government spends millions if not billions in procuring contracts in the forms of products and services to satisfy their specific needs. Yes, this is true, but one must be aware of the downside aspects when approaching and dealing with the US government. In this article I sum a few major points that one should review and understand before approaching and viewing the government as a new source of revenue.

One major deterring factor is the written proposal for a solicitation. The government will post a solicitation which entails the services/products that are required and the specifications of the item and duration of delivery. It is then the job of the business to write a proposal that addresses the many aspects of the solicitation. This alone is a tedious and time consuming task which may require multiple authors and days to compose. In my dealings with businesses it would take perhaps just one conversation to close a deal, whereas the dealings with the government was much longer, sometimes extending into months after the proposal was sent in.

Second notion, is that many times the person of contact in the government who is there to address questions and concerns, will not in many cases, provide a timely response. I am not sure if it is due to their over loaded work schedule that prevents then from responding per email, but whatever the case, their delays hinder many times the presentation of the proposal or of the final product.

Another aspect is the fact that many times there is just not enough solicitations posted that would justify the contractor to deal with the government. This point is industry specific as some industries witness a greater outflow of solicitations than others. So, depending on your industry it may or may not be wise to deal with them.

In this tight economy a reasonable person would assume that the government would be willing to spend more in order to create more jobs and cash circulation, but the opposite appears to be true. In times of economic crisis, the government applies a hypocritical position by reducing their costs and spending. This point must be considered when approaching the government because the contractor must be prepared to dump their prices in order to secure a contract. As a business owner one must weigh the benefits and costs for such a decision.

For the business owner it is always wise to consider the advantages and disadvantages when approaching a new business endeavor. The dealings with the US government is one endeavor that does requires much time and thought.

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