Key Steps in Marketing to State Governments

1. Research the market to determine which states and their respective agencies purchase the products and services you offer. Start with one state (such as your own) to gauge its needs. If you find that your own state government buys what you produce, chances are that other state governments do as well.

  • Determine what commodity code system your state uses (NIGP, NAICS, etc.) and find out what codes apply to your offerings by calling the procurement office or visiting the procurement website (see here).
  • Get help in researching your market by contacting procurement specialists at your local Small Business Development Center, Procurement Technical Assistance Center, or SBA district office. See here for more information about these resources. If applicable, be sure to ask about subcontracting opportunities.
  • Find out about past contracts awarded to other companies. This will indicate which agencies are likely to buy in the future. You will also get a sense of the competitive pricing landscape. If possible, examine the losing bids, too, for clues that will prevent you from sharing the same fate in the future.

2. Learn about procurement procedures by visiting the state's procurement website (see here). Most of these websites explain how procurements are made, what agencies are involved for specific classes of products and services, and what procurement methods are used for various dollar thresholds. If your business has a federal GSA contract, find out whether you can use this to become a state vendor as well.

3. Find out about certifications that can qualify your business for special procurement consideration. The state's procurement website or the resources listed in Step One can help you determine what certification opportunities are available for your business in your state. Many states offer preferences for one or more of the following:

  • Small businesses
  • Women-owned businesses
  • Veteran-owned and disabled veteran-owned businesses
  • Disadvantaged (minority) businesses, and
  • Businesses located in targeted economically underutilized geographic zones (typically inner cities or rural areas with high unemployment or low incomes).

While preferences vary by state, in some cases having one or more certifications will give your business a significant advantage through set-aside programs, additional bid opportunities, or a percentage-based preference. With a percentage-based preference, a certified business will win the contract if its bid is within the specified percent of the low bidder.

4. Make sure you have the proper licenses and supporting documents. You probably already have a license to do business in your state, but if you are seeking procurement opportunities in another state you may have to register as a foreign corporation with the other state's Secretary of State. Contact the office of the secretary of state, the state corporation commission, or other office responsible for business licensing and ask about a Certificate of Authority for a Foreign Corporation. Some contracts require that you be bonded, although this requirement is sometimes waived for new or expanding small businesses. If you need to be bonded and cannot obtain bonding on your own, contact your local SBA district office for assistance.

5. Register as a vendor. Visit the state's procurement website (here) for registration procedures, which can usually be conducted online. This will get you on bidder's lists and notification services so you will be alerted to opportunities as they arise. The information you provide when registering will also make it easier for buyers to deal with you throughout the procurement process. If you have identified specific agencies as significant buyers, contact their procurement offices to see if you can register as a vendor.

6. Actively market your products or services to state program offices. While being on bidder's lists will generate some opportunities for you, you should not rely solely on your registration to find opportunities.

  • Call the procurement offices and program managers of the agencies that buy your offerings. If possible, arrange a meeting so you can brief them in person about your capabilities and learn more about their needs. Cultivating a personal relationship with the key decision-makers is the best way to maximize the business you get from your customers.
  • Work with a small business procurement specialist or counselor from one of the resources listed in Step One to develop an appropriate marketing plan for your product or service. Experienced specialists can refer you to the right contacts within the state government so you can start building relationships. They can also help identify subcontracting opportunities with prime contractors, which is a significant source of procurement dollars for small businesses.
  • Attend matchmaking events and procurement trade fairs. These are usually sponsored by the state government itself, by private-sector business advocacy groups such as chambers of commerce, or by local SBDCs, SBA district offices, and other small business counseling programs. Visit www.businessmatchmaking.com to see if there is an upcoming program in your area.
  • Deliver excellent results. You should consider each contract you get as an opportunity showcase your abilities with an eye toward the next contract. Government buyers look for vendors with experience and a track record of good performance, so each contract is a stepping stone to the next. Plus, the relationships you develop as you progress are the basis for referrals to other agencies, and even contacts in other state governments.

Copyright 2006 Braddock Communications, Inc.