How companies can set themselves up for a piece of $700B in federal contracts: Focus on the mission

Serving the federal mission is a calling not just for public sector employees, but also the private sector contractors that support federal agencies.

But it takes more than just a sense of purpose to cut through the noise of companies clamoring for federal work.

The Government Accountability Office estimated that the federal government committed nearly $700 billion for contracts in the 2022 fiscal year. That’s a huge sum, but tens of thousands of contractors still vie for a piece of those budget allocations, making it a challenge to stand out.

For a federal contractor to be seen and heard in a pack that big, they must understand the public sector’s unique challenges and navigate them with compassion, acting more like a trusted partner than a solutions provider. This means creating a workforce that leads with relationship-building and the mindset that every interaction offers an opportunity to instill trust.

Building a mission-driven workforce

Serving the mission starts with a company’s foundation: its employees and supportive management. Whether they’re project managers, engineers, subject matter professionals or marketers, these workers serve as the contractor’s on-the-ground representation. Their interactions with government customers set a tone for how people see the company and the values it represents. 

It’s therefore critical to build a workforce that’s driven toward the goal and willing to put in the work to build meaningful relationships with their federal counterparts. Here’s how this looks in practice:

• Advocate for a truly diverse workforce: Race, gender, culture, experience, skillset — employees with different perspectives make better and more creative solutions. The Office of Personnel Management said that “effective diversity management coupled with inclusive work environments improves organizational performance and innovation.” Large contractors probably haven’t caught on to this yet, so it can be a major differentiator for small and mid-tier companies. The willingness to lead in this area is not only a boon for innovation, but also a better way to represent the public that contractors serve every day.

• Put a premium on investing in long-term, genuine relationships: This is a relationship business. When you take the time and care to maintain them, you separate yourself from other companies. This comes from not only understanding the federal space and culture but also participating in it. It sounds so simple, but it’s time-tested: People want to engage with a friendly face and a can-do attitude, and federal contracting is no exception.

• Lead from behind: Let your employees own their roles and innovate on those responsibilities. By empowering them from within the company, you’ll give them the confidence to come up with novel and creative solutions for their federal clients.

• Promote constant learning: By understanding the continuing evolution of technology and what’s on the horizon, you can make federal customers ready to use emerging tech as it works its way through private sector case studies.

Strengthen trust through effective listening

Beyond those other steps, it’s important to continue building trust with every interaction. One of the most important ways to do that is by simply listening. Hear customers’ stories and pain points and relate to them with both empathy and solutions. 

To set employees up for success on this front, instill a few key concepts into any contracting workforce. By thinking through these three concepts when initially engaging with federal technology teams, the act of listening will become second nature. 

• Understand the process: This might sound obvious, but the contractor workforce must be intimately familiar with the policies, regulations and priorities that guide federal technology acquisition. This not only helps contractors better understand the customers and their needs, but also shows that you are invested in what matters to federal agencies and are in tune with their challenges and work style.

• Embrace transparency: Be a shepherd for federal customers by being fully honest about the process (cost, timeline, expectations) every step of the way. Be a resource for federal buyers even when it doesn’t directly lead to a contract. This shows that you care about the mission above all, and that your guidance isn’t just transactional.

• Be flexible: Federal agencies are doing the best they can with tight budgets and constraints around how and when they can buy and implement technology. Don’t be another roadblock. Support them with whatever challenges they face and be a source of solutions.

In FY23, the federal government committed about $759 billion to contracts, an increase of about $33 billion from FY22 after adjusting for inflation. Federal contracting jobs augment more than 2 million federal workers, impacting everything from delivering citizens services to protecting our nation’s critical infrastructure. This is a heavy responsibility, but it underscores the importance of trust.

There’s no dearth of companies vying for billions in federal contracting money, and very few of them offer novel technology. Instead, the best ones differentiate themselves through their customer service and experience serving the government. Even the most innovative tech solutions can’t replace hands-on, human-centered customer service.

This is especially true for federal departments tasked with both some of the most complex missions and serving the needs of the public. To that end, setting the foundation laid out above will show agencies that you are there as a partner and a resource, not just a salesperson.