The Government Technology & Services Coalition talked with Babs Doherty, the CEO of GTSC company Eagle Ray, Inc., and got her advice for entering the Federal market and how to remain competitive.

GTSC: What is your first piece of advice for a company entering the Federal homeland and national security market right now? 

Babs Doherty: Prepare for a long road.  The acquisition cycle is over 2 years now due to sequestration and other budget cuts.  A small company cannot keep a bench of qualified candidates on hand for 2 years so you will need to plan ahead and keep your candidates up to date on the progress of any new business you are going after.  If you have an 8(a) status, then you may be able to move things along faster than 2 years but even those contracts are seeing delays longer than before.  So have a plan on how to grow your business over the long haul and be patient and persistent.  The work will come.   Also do not hesitate to team with solid primes.  Pay particular attention to any work share opportunities or areas that you are considered a subject matter expert to get the attention from the primes.  Most important, execute on any current work you have flawlessly.  You’ll need good, solid references to win additional work.

GTSC: What is one thing you “learned the hard way” and could help mentor another company?

Babs Doherty: When you are getting started in the business, you usually are a subcontractor before a prime.  Many times the primes provide you with “target” rates in order to be on their team.  Be careful to analyze EVERY rate carefully and do not bid on labor categories that are not your sweet spot, even though it is tempting.  Once you have provided your rates to the prime, they can, and do, bid any mix of those labor categories to win the work.  If you are not prepared to deliver a qualified person at that labor category price, you will be in trouble.  Check every labor category in a realistic way to ensure you can deliver a qualified candidate before you provide that rate to the prime.  Be prepared to negotiate but also be prepared to walk away if the prime cannot give you the rates under which you can deliver successfully

GTSC: The environment is very competitive.  How are you staying ahead of the curve/or afloat?

Babs Doherty: I am paying attention to my competition and the bidding trends.  The bidding trends are changing as the budget environment dictates tighter and tighter profit rates and escalation.  The government is desiring a true partnership from industry and wants to see that reflected in your bid (lower escalation, lower profit margins, creative bidding) to save money.  We are always looking at ways to deliver our services better than our competition and analyze other projects to see what works and what doesn’t.  We also want to show a strong bench or the ability to obtain highly qualified staff in a creative way.  Everyone says they have a data base of candidates.  It’s important to show other ways beyond a data base to maintain a qualified staff.  Lastly, be quick to respond to requests from your customers.  They will find other means to get what they want if it takes too long to get to an agreement or get the requirement fulfilled.

Babs Doherty     CEO                 Eagle Ray, Inc.

Eagle Ray, Inc. is a Lion’s Den member of the Government Technology & Services Coalition. Eagle Ray, Inc. takes a pragmatic, common-sense approach to organizational transformation, tailoring our  proven, systematized processes to meet your unique requirements. Our transformational approach is based first and foremost on common sense. Learn more about Eagle Ray, Inc. here.