State and Local Contracts Might Be Worth the Risk!
With the new changes and new packages being provided to state and local governments, contracts within these areas might be worth the risk!
STIMULUS PACKAGES FOR THE STATE AND LOCAL GOVERNMENT
As everyone already knows, here at GovCon Giants, we preferred federal contracts over state and local contracts.
There are various reasons why and some of these is the fact that there are always delays in payment whenever someone in the office fails to do the paperwork on time.
However, given the instances in the past year and the new stimulus packages being provided to state and local governments, contracts within these areas might be worth the risk!
Besides, the government at this point has now passed two stimulus packages. The first one was in March and the other one was in December 2020. Both packages are injecting money back into states and local governments.
The other thing is that President Biden is now attempting to pass a new 1.9 trillion trillion dollar stimulus package which will surely give a whole lot more money into that for state and local governments.
“The good thing is that all of you folks have been working, getting paid even if it’s a little bit late. You’ve still been getting paid. They haven’t abandoned you and that’s the wonderful thing. That’s what’s giving me hope about state and local contracting.”
So, to help you navigate this marketplace, written below are the ways you can take advantage of these new opportunities in doing state and local contracts!
ATTEND ANY LOCAL ADVISORY BOARD MEETING
If you’re thinking of going to the local contracting arena, it is best to take a look at the local advisory board for your local city or municipality.
You may have to do some searches or call the local municipal offices, but definitely see if you can get some inside information with the local advisory board for your particular arena and your area.
Why? Because there’s a lot of good things going on.
For instance, in Miami-Dade County, we have a Small Business Development Center that is designed to help small businesses and a Small Business Enterprise Advisory Board for Construction.
What you will find with these is that these boards usually have meetings that you can attend to.
First and foremost, you’re going to meet people like you who are starting or already navigating in this marketplace for years. This could also help you learn who are the good contractors from the bad contractors.
“You have to get active. You got to participate. People have to see your face, know your name, and be able to identify you.”
Apart from that, you will also learn how your local government procures goods and services, and that’s so critical if you want to be in this arena.
CHECK ANY LOCAL SMALL BUSINESS RELATED DOCUMENT
Aside from attending the above-said meetings, you can also check and analyze any local documents related to your industry because they often issue reports and minutes that you can go back into.
Primarily, you can see in these reports the members of the board that are providing their services and are officiating these meetings.
These reports also highlight the issues that were brought forth by the board in which you can start learning and investigating in order to make the best possible decision for your business.
Then, if you also want to see how much contracts were given to set-asides for minority groups, these reports may also highlight this.
Most importantly, these reports also highlight the companies that are doing state and local contracts together with the data related to their businesses, including the total value awarded, costs of work, and percentage completion.
So, if you want to navigate this marketplace, is it best to do your own research using these resources because this may either lead you to your first contract or a possible partnership, among other things.
“I always remind people to start with the research. Let the research guide your activities.”
THERE MIGHT BE HOPE FOR STATE AND LOCAL CONTRACTS
The gist of this whole article is that if we continue along this trend of bringing on stimulus and propping up the economy, then that’s great news for small business contractors who are considering starting at the local level.
“The government is making sure in putting dollars and putting not just dollars, they are putting their voice behind ensuring that they prop up small businesses to keep the economy flourishing.”
Although you still need to have capital to sustain your business until you get paid, at the very least, we don’t see any time soon that the state and local government will leave small businesses behind because there is so much money flowing around.
So, with the new packages being provided to state and local governments, GovCon Giants think that doing contracts in these areas might be worth the risk!
However, consider that if there are warning signs of things changing, we definitely want to be here to step in and let people know about the change in climate.
With this in mind, if you want to learn more about this matter, then check the resources below.
ALERT: State and Local Contracts might be worth the risk Part 1
State and local contracts might be worth the RISK – Part 2 of 2