Contract awards data is the most misunderstood source for business development. It comes from two vastly different sources. Plus, it's sometimes inaccurate, and often untimely and incomplete. Yet in spite of these drawbacks it can be extremely helpful in focusing your business development efforts.

The basic concept is that active contract data shows buying history. The concept works best for services, because nearly all service contracts repeat themselves. If there's a 3-year contract for cleaning a building, for example, then there will almost certainly be a new competition to re-let the contract for another 3 years. If you know the end date of the contract, you can begin selling well ahead of the public bid announcement.

Another more subtle point about services: the federal product/service coding system identifies services more readily than products, making it easier for services companies to locate relevant contracts.

Yet using awards data to determine buying history works for products, also; just not as well. If a government buyer bought a product once, he or she will likely buy it again in the future.

Contract award announcements can be found in three places:

• About 80% of over-$25,000 contract awards are announced at FedBizOpps.
• Most $25,000 awards are published by the Federal Procurement Data Center, but 6 months after the fact.
• Award information for any size procurement is available under FOIA.

Although the quality of contract award data is spotty and the data difficult to decipher and use, it still works as a way to find future sales opportunities if you are patient and persistent.

Let's compare the two primary sources of contract award data:

FEDBIZOPPS

Primary Uses: (1) determining specific federal buyers who buy a product/service; (2) analyzing the buying history of federal buyers; (3) identifying current subcontracting opportunities.

Data Currency: within days or weeks of contract award.

Amount of Contract Data: (1) snapshot of an award; (2) contract number, procurement title, contact amount, award date, vendor.

Competitive Analysis: No.

Contract End Date? No.

Product/Service Code Search: 2 digit.

Subcontracting Opportunity Identification: Excellent.

Ease of Use: Easy.

FEDERAL PROCUREMENT DATA CENTER (FPDC)

Primary Uses: (1) identification of future bidding opportunities for re-occurring service contracts; (2) determining which agencies have bought a type of product or service; (3) determining what contacts your competitors hold.

Data Currency: approximately six months after contract award.

Amount of Contract Data: (1) extensive, multi-year financial history of a contract; (2) over 100 data elements describing the contract.

Competitive Analysis: Yes.

Contract End Date? Yes.

Product/Service Code Search: 4 digit (SIC, NAICS searches also).

Subcontracting Opportunity Identification: age of data limits identification of specific subcontracting opportunities; user can find prime contractors, though, holding specific types of contracts.

Ease of Use: More difficult.