3 lessons for Maryland small businesses seeking government contracts

As a new federal administration sets up in Washington, many small business owners worry about how the government contracting process might change, and what it might mean for them. 

Winning government contracts, whether from the feds or the state, can often feel like an uphill battle for small businesses. That’s why a variety of Maryland agencies and offices hosted the  Governor’s Minority and Small Business Outreach Summit in Baltimore, where leaders across sectors highlighted strategies to navigate the system more effectively. 

Gov. Wes Moore, who appeared at the event, noted how the summit aimed to address historic inequities in who gets and benefits from these funds.

“The wealth gap didn’t just appear one day. It was created, intentionally, through policies like inequitable distribution of state contracts,” he said, adding: “This annual summit is a critical part of our work to open up pathways to opportunity and build new partnerships with Maryland entrepreneurs.”

Because the event took place only weeks after the election, state leaders quickly stated their continued commitment to a level playing field for government contracts regardless of any possible federal changes. Several managing directors from Deep Water Point and Associates, a consultancy specializing in small business expansion into the federal procurement market, gave related presentations over the course of the summit. Here are three key takeaways that executives at firms looking to compete for government contracts can consider, courtesy of presentations by one of those directors, Michael Schneider. 

Government contracting is transparent  — and competitive

Federal, state and local governments are largely open about their procurement processes. “The good news is government contracting, whether it’s at a federal, state or local level, is a very transparent place,” said Schneider. The government does typically believe in open competition. It’s often times a rigorous set of rules you have to understand, but they work really hard to consistently apply it. And part of that is around fairness of opportunity.”

However, access to information alone doesn’t guarantee success, he said. 

 “If you can find an opportunity, so can others,” Schneider said. 

For small businesses, the key is not just knowing where to look but developing a strategy to act on the information efficiently. Schneider recommended developing the answers to questions typically included in calls for proposals, and keeping them in a repository. 

His other tips included using common question-based templates and technologies like ChatGPT to one’s advantage. He also recommended building a system to assess if an opportunity makes sense before potentially wasting resources on something that doesn’t make sense.

Plan ahead

Large firms dedicate entire teams to securing government contracts, making it seem difficult for small businesses to compete in last-minute bidding wars.

However, as Schneider said, “we do have, at almost every level, varying degrees of preferences for small business and even subgroups within that  minority owned businesses, et cetera. There’s huge amounts of dollars that are designed just for small businesses.”

Instead of scrambling for opportunities, small firms should be intentional about where they focus their efforts. To that end, Schneider offered these suggestions:

• Identify grants and contracts well in advance.
• Track deadlines and align them with your internal capacity.
• Build relationships with procurement officers early.

By proactively managing the pipeline of bids, from notice to submission, small businesses can stay ahead of deadlines and position themselves as strong contenders, he said.

Compete smarter by partnering   

Rather than going head-to-head with well-resourced firms, small businesses can shift the competitive landscape by teaming with larger contractors. Many government contracts require subcontracting, meaning big firms often look for reliable small business partners, Schneider said.

By positioning themselves as a valuable sub-service provider early in the process, smaller companies can secure government work without taking on the burden of contract compliance. They can also gain credibility and experience while building relationships with bigger contractors for future work.