Should your company seek government contracts?

It’s no secret that getting government contracts can be hard. The government is very picky, there are strict processes in place and there is often a lot of red tape to work your way through. You may also find that you have to bid for these contracts and you have significant competition while doing so. 

All that being said, should your company still chase down these contracts and try to obtain them? What are some of the benefits of landing a government contract, and are they serious enough to make it worth it? 

These can be lucrative deals

Naturally, the biggest benefit is that these can be lucrative deals. When bidding with other companies or customers, they may try to bargain or get a lower price. The government typically already has the money and just has a set budget to meet. They may be more worried about getting things done than getting the lowest possible price, so it can be lucrative for you. Other advantages include:

  • These may be long-term contracts that can last for years.
  • They may come with additional, related contracts in the future.
  • The government is typically a reliable buyer that will pay its bills.

Depending on the job, many contracts are for millions of dollars, as government projects are huge in scope. 

The complicated process is one reason that some business owners do not pursue these contracts, even though it would clearly be in their best interests to do so. If you do want a contract like this and you’re concerned about those complications, you just need to know what steps to take. Having an experienced legal team on your side may help.