Podcast Show Notes
2025-03-07 Federal Market Insights Episode 4 — Session Overview
WPI Podcast Episode 4 Summary
Selling into the federal marketplace is not easy. There are a dizzying number of issues that companies must deal with on a routine basis. Not only do companies need to register in SAM.gov, they also must know, understand and know how to apply various regulations. Today, two of the largest impediments for businesses interested in selling to DoD are Cybersecurity requirements and developing a process using appropriate data to identify potential customers. Yes – it can be argued that the federal government buys everything. However, those purchases are spread over more than 2,000 buying offices and over long periods of time. In other words, every office doesn’t buy everything, every day.
Selling to DoD sounds easy. However, there are hundreds of DoD buying offices located throughout the U.S. and other parts of the world. Some companies have the luxury of being located in an area rich with potential customers. Companies in Virginia, California and Texas have a wealth of potential customers. Companies in other states will have to work harder to locate customers.
Today, the purchasing function has shifted from transacting businesses “outside of a base’s fence” to the global online business community. While the number of opportunities increases so does the amount of competition.
A key question is “who is my customer” or “who are my customers?” This is a question all companies should strive to know. Companies should aim to identify their customers and seek to understand their needs and procurement drivers. In addition, companies should attempt to look at the total purchasing picture. Buying offices differ in their needs and how they transact business.
The needs of the government continue to change and as seen in the news, the government is changing and in some ways the changes are significant. In effect, there is a reset in place. Still the basics apply and knowing your customers is one of the underpinnings of establishing a solid strategy.
Not only are there changes underway in the government, but there are also changes in the tools available to businesses. Artificial Intelligence (AI) is currently driving changes and creating opportunities. Along with the benefits of AI, there are risks such as hallucinations and the possibility of information leakage. With those two ideas, there were two AI related articles that stood out.
The first was an article titled: AI for war plans: Pentagon innovation shop taps Scale AI to build ‘Thunderforge’ prototype and the second was AI Company Develops ‘YouTube for Navy’ Training Platform
It seems interesting that the government has taken a very measured approach to the adoption and use of AI. In some ways, it seems as if AI is being kept at arm’s length. However, here are two instances where AI is being embraced and used for arguably very important purposes. It is this dichotomy that was interesting.
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An unrelated article that is of interest was published. This article announced the creation of a Whitehouse Office of Shipbuilding. The U.S. continues to build ships. However, over the years all aspects of the shipbuilding infrastructure – yards, equipment and talent need to be revitalized. While the need to increase this vital national resource has been known for some time, a tipping point occurred in the summer of 2023 when a briefing slide showed China’s shipbuilding capacity exceeded the U.S.’s by more than 200%. Among the other issues are workforce and funding. Lack of skilled trades has hampered the Navy’s construction of vessels. As an attempt to attract and train more talent the Navy is working with BlueForge Alliance. Another issue is funding. These efforts would be funded by a Maritime Security Trust Fund.
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Today’s Podcast focuses on Certification and how Certifications can be used to create value.
An important point is The Government does not procure Certifications. Many companies will identify as a specific type of Certified firm. It is important to recognize that the government is purchasing goods and services. Set-asides may be used but competition is based upon a company being evaluated as being Responsible see FAR part 9.
Certifications are essential in assisting both the government and primes to reach their required goals. However, it must be emphasized that awards are based on three factors – the terms and conditions, offering a fair and reasonable price and being evaluated as responsible.
Certifications apply not only to socio-economic programs. They also apply to government and non-government certifications. Examples include ISO-9001, cybersecurity and professional licenses. Don’t forget to highlight all certifications.
In fact, your Capability Statements should include all certifications. However, header information should not be “This Company is a certified ….” Capability Statements should tell a story about the company’s capabilities. It speaks when you are not present to tell the company’s story. This is especially important if the Capability Statement is shared only as a document. Remember, the document needs to tell your story – what your capabilities are and why you should be considered for an award.
There are authorities that allow for sole source awards. These authorities are limited and are the exception not the rule. The government prefers competition over sole source awards. The government also has procurement goals for small business as a whole and for each of the socio-economic programs. To assist in identifying potential sources for competition both Requests for Information (RFI) and Sources Sought Notices (SSN) are posted to SAM.gov. When you see these associated with an opportunity of interest, take the time to respond. Don’t ignore them and rely on others to respond.
The government is charged with performing market research which assists in determining whether a solicitation can be set aside or will be posted as Full and Open. To set aside a solicitation generally requires that there is knowledge of two or more businesses in the set aside category which are capable of performing the work, maintaining the quality and performing the statement of work at a fair and reasonable price. If there are not sufficient responses, then the default determination is either there are no companies that are interested in the work, or there are no companies that believe they have the skills, capabilities and capacity to perform the work. If this is the case, then the results are documented and the solicitation is posted as Full and Open. The result is the small business community lost out on an opportunity.
When responding to either an RFI or SSN companies should include their Tailored Capabilities Statement. Have your statement speak for you and showcase why you are capable of performing the work!
For assistance with developing or refining your Capability Statement or other questions related to doing business with the government please contact WPI at 414-270-3600. See you next week for our next Episode.