People Buy Not Agencies

Contrary to popular belief, people buy in the federal market, not agencies. The only way to make a federal sale is to contact a buyer through a direct sales call. Companies unwilling to make the sales calls are not going to experience success in the market.

Although rules and regulations often tie a government buyer's hands, they don't turn the buyer into a robot. Government buyers are people with the same general motivations and inclinations we all have, rules or no rules. Government end users buy from vendors they know and trust. The government employee's success and future promotions depend on the value of the products and services they buy and, because of that, they want to be assured that their vendors will perform well.

It's not just about getting the best deal for the taxpayer. Although certainly a factor, "taxpayer protection" is often a fuzzy, nebulous concept. The reality is that the federal buyer wants to get the deal that works best for him and his superiors. From a federal buyer's perspective, a good deal is one in which risk is minimized.

Federal end users, such as human resource program managers, engineers, or facility managers, make most purchasing decisions. As the term implies, the end user is the person who will actually use the service. Services and complex products and solutions must be sold to the end user because this person is the one who determines if the service or product meets their needs and solves their problem.

An official buyer, also known as a contracting officer, is positioned within the agency's contracting division. Contracting officers are charged with the legal responsibility for making purchases and ensuring that the purchases are made within the boundaries of the procurement rules. Contracting officers work with end users to transact a purchase, but it is the contracting officer who signs the contract with the vendor.

It is the contracting officer's duty to make sure that the buying process is as competitive as possible. However, the contracting officer also has the latitude to take into consideration the factors surrounding the procurement. "Factors" is the operative word here. Factors that can affect the contracting officer's final decision include the dollar amount of the buy, when the product or service is needed, the type of businesses competing, the qualifications of the bidders and more.

In instances in which commodities are being purchased (such as office supplies), contracting officers are often the sole decision makers. In selling commodities, contracting officers should be viewed as end users.

This article is an excerpt form the new book "Rolling the Dice in DC". The book is written for managers and sales people and describes the day-to-day dogfight of competing and winning in the federal market. Read this book if you want to know the good, bad, and the ugly of the federal market, what it takes to enter the market, and the potential returns.


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