5 Common Mistakes That Cost You Government Contracts (And How to Fix Them!)

Five mistakes that kill government contract bids: incomplete SAM.gov registration, generic capability statements, ignoring solicitation rules, wrong pricing, and no follow-up. Fix each one with concrete steps like checking USASpending.gov for past awards and requesting debriefs when you lose.
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Government contracts can change your business, but I've seen people lose them because of these five simple mistakes. Don't be one of them. In this video, I'll walk you through exactly what not to do and how to fix it. Before we jump in, I've put together a free checklist so that you can avoid all these mistakes. You can download it right now using the link in the description below. Alright. Mistake number one is not registering your business properly. I can't tell you how many people think that they're ready to bid, but they're missing key details in their SAM.gov registration. And let me tell you, if your registration is not 100% correct, your proposal will not even be considered. Here's what you need to do. First, make sure that you go to sam.gov and set up your profile. Take your time, make sure all of your information is correct and don't rush. We also have a guide for that. If you need help, make sure that you're using the right NAICS codes. This is important because these codes are how the government knows what services that you're offering. So if you're bidding on a solicitation and the solicitation lists a NAICS code such as 54, 1712, you need to make sure that in your SAM.gov profile you have NAICS 541712 also listed because they're going to check that to see if they match and if they don't match, they're going to throw your proposal out. You're going to be invisible to them. So double check that. Also make sure that your UEI number is correct and make sure that you match all of your business details. Remember that SAM.gov registration can take a couple of weeks to process. And also you're allowed to always go back and change your NAICS codes. But it does take a couple of days for them to approve that. So don't wait until the last minute and always make sure that you do it before you bid. Mistake number two is having a weak capability statement. We once had a contracting officer tell us that they have thousands of companies to choose from and this specifically was for machine shops. And, and they said, I have thousands of machine shops coming at me, I need to know why this specific machine shop is different, why are they special? Why are they set apart? And that really stuck with me. So your capability statement needs to answer that question. And here's the key. You need to tweak it for every opportunity. So for example, if you're going after a specific contract, highlight the services and experience that align with that contract just like you would a resume with a job. So if you're meeting with a prime contractor, adjust your capability statement to show how you can fill their specific gaps and their specific pain points. Here's how you can make yours stand out. Make sure that you start with a clear summary of what you do, but again, make sure it aligns with what they are needing. Focus on their pain points. Research what the agency or prime contractor is struggling with and show how you can solve those problems. That's how you're going to stand out to them. Also, tailor your differentiators so if do you have a faster turnaround time? Do you have better pricing? Do you have specialized experience? Make sure that it speaks to what they care about. And before you send your capability statement out, ask yourself, would I hire me based on this? And most importantly, does it match what they are looking for? All right, Mistake number three is not reading the solicitation carefully. Government agencies receive a ton of proposals and because they get so many, they are literally looking for any reason to eliminate them. So even the tiniest mistake can make you non compliant and get your proposal tossed in the reject pile. So even if you miss a margin, if you miss a font size, that's a way that they can just get rid of your proposal so they have less to go through. So make sure that you read the entire solicitation at least three times. First, you just want to get an overall understanding. Second, you can highlight the key requirements and third, catch any details that you might have missed. I always throw ours into ChatGPT and have it break it down for me that way. But also remember ChatGPT can make mistakes, so make sure that you're also reading it thoroughly. Be sure to pay close attention to those formatting rules, page limits, font size and document types. So if they ask for a 12 point times new Roman, do not give them Arial. Make sure that you use what they're asking for. Make sure that you use a compliance checklist so go line by line to make sure that you're meeting every single requirement before you hit submit. And and I always like to print mine out and then I go through with a highlighter and I highlight every single requirement. Remember agencies are looking for reasons to eliminate your proposals, so do not give them a reason. Make sure that you are compliant. Mistake number four is pricing your services incorrectly. Pricing is a balancing act. If you go too high they're probably going to choose someone else, but if you go too low they'll assume that you don't understand the project scope or worse, that you can't deliver quality work, so you don't want to do that either. Here's how to get your pricing right. Research past contract awards on USASpending.gov and this will give you an idea of what similar contracts were awarded for in divs. You can also see past award prices. Make sure that you break down your pricing carefully. Consider your labor, your materials, your overhead, and make sure that you also have a fair profit margin. Don't guess. Make sure that you know your numbers and if your pricing seems high, maybe you could consider partnering with another business to share the workload and lower costs without sacrificing quality. The key is to price with confidence based on the facts, not just your gut feeling. And finally, mistake number five is failing to follow up. Submitting your proposal and sitting back is a huge mistake. Government contracting is all about persistence and relationships. We've even heard that specifically with DLA and DIBs. Sometimes they have spam and they don't even know which companies are real. So when you're following up and you're building that relationship with them, they're going to know that you're real and that they can give you a chance. So after you submit, send a professional follow up email to the contracting officer asking for any updates or feedback. You don't want to annoy them, but it's good to establish that right after you bid. So then wait and see if you win. If you don't win the contract, always request a debrief. Agencies are required to provide feedback and this can be gold for your next proposal. Make sure to stay on their radar. Make sure that you keep in touch with them, attend industry events and engage with them regularly. But don't be pushy and annoying. Like I said, but just make sure that you keep that contact. Maybe every couple months or every few weeks even. Remember that the companies that stay proactive and visible are the ones that end up landing repeat contracts. We've even seen where a contracting officer has come to one of our clients and asked them to bid on something because they've established that relationship. So make sure that you're always staying on top of that. So there you have it. Those are the five biggest mistakes that can cost you government contracts and exactly how to avoid them. If you want to make sure that your not making these mistakes, you can download our free checklist and it's in the video description below. And if you found this video helpful, make sure to like subscribe and hit that notification bell because we've got more insider tips coming your way. Government contracts can be a game changer, but only if you do it right. Thanks so much for watching and I'll see you in the next video.
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