Federal Shutdown Survival

Cash Flow, Claims, and Equitable Adjustments for GovCons

When Washington goes dark, your invoices don’t stop burning cash.

Federal contractors are familiar with the rule: no appropriation, no new obligations. But the gray zone between “work continues” and “work stops” is where companies lose money—quietly, through idle staff, delayed invoices, and unrecovered costs.

This article breaks down how to survive a funding lapse with your margins and sanity intact.

1. The 60-Minute Shutdown Exposure Check

Before the panic sets in, take an hour to map your financial exposure:

This gives you a realistic timeline for liquidity and workload under a continuing lapse.

2. Two Shutdown Playbooks: Continue or Stop

A. Work Continues (Funded Work)

• Continue operating within the amount already obligated under your contract.

• Limit discretionary spending and avoid purchasing long-lead materials.

• Maintain minimal communication with your CO to ensure the agency still recognizes your right to invoice.

B. Work Stops (Unfunded or Stop-Work Ordered)

• Immediately cease all affected work when the CO issues a written order under FAR 52.242-15 (Stop-Work) or FAR 52.242-14 (Suspension of Work).

• Secure property, equipment, and data.

• Record every direct and indirect cost tied to the shutdown—including idle labor, storage, demobilization, and standby vendor charges.

3. Capture Every Cost for a Future REA

When work halts, your cost logs become gold. You’ll need them for a Request for Equitable Adjustment (REA) once the government reopens.

Track:

• Idle Labor: Document timecards, payroll records, and which employees were affected.

• Demobilization: Transportation, secure storage, cancellation fees.

• Overhead Impacts: Facility costs, rent, utilities, and insurance tied to paused operations.

• Subcontractor Costs: Forward written notifications; their costs can become part of your claim.

Don’t assume everything is recoverable—profit is usually excluded under these FAR clauses. What matters is reasonableness, mitigation, and documentation.

4. When Suspension Turns Into a Claim

If the shutdown drags on and your costs escalate, the REA can evolve into a Certified Claim under the Contract Disputes Act.

To qualify:

• Your cost documentation must be auditable.

• You must show that you acted promptly to mitigate losses.

• The CO must have directed or caused the delay.

This is where precision beats volume—clean records and dated communications carry more weight than a 50-page complaint.

5. Keeping Cash Flow Alive

While Washington argues, keep your company liquid.

Short-term tactics:

• Invoice early for all work completed before the lapse.

• Negotiate temporary payment delays with subs (transparency builds trust).

• Discuss with your bank the option of extending your line of credit or advancing against receivables.

• Pause nonessential spending. This isn’t the time to renew software seats or marketing campaigns.

Mid-term tactics:

• Consolidate staff on funded projects.

• Reallocate bench time to proposal development, data cleanup, or mandatory training.

6. Equitable Adjustment 101

FAR 52.242-14. Government suspends work. Idle labor, storage, re-mobilization (no profit)

FAR 52.242-15. Stop-work order issued Costs of stopping and restarting work

FAR 52.242-17. Government delay of work. Similar to above, caused by CO inaction

Key: You must show causation—that the delay or cost increase resulted directly from government direction or inaction, not your own business choices.

7. Communicate Early, Record Everything

• Save all CO emails, calls, and memos.

• Document internal decisions (who told whom to stop, when, and why).

• Keep a single timeline from “pre-lapse” to “resumption.”

After the shutdown, this becomes your evidence trail. Agencies are more likely to grant REAs when they see disciplined recordkeeping.

8. Post-Shutdown Game Plan

When appropriations resume:

1. Notify the CO you’re ready to restart work.

2. Submit your REA or cost summary within 30 days.

3. Resume invoicing immediately—don’t wait for formal processing to “catch up.”

4. Update your subcontractors and vendors in writing.

9. Lessons for Next Time

• Include a funding analysis in your contract kickoff. Don’t wait for a crisis.

• Negotiate stronger stop-work language. Some primes include subcontractor protections and pre-defined cost recovery formulas.

• Use shutdowns as REA training. They reveal every weak point in cost tracking and communication.

Bottom Line

Shutdowns aren’t the end of the world—but they expose how disciplined your business really is.

1. Funded work can continue.

2. Unfunded work must stop.

3. Only documented work gets reimbursed.

Federal Government Shutdown 2025

How Procurement and Contractors Are Impacted

How the Shutdown Is Disrupting Procurement — and What It Means for Contractors

When the federal government shuts down, procurement is one of the first functions to come to a halt. Appropriations lapse, and contracting officers are furloughed; as a result, the entire rhythm of awards, task orders, and renewals falls into limbo. For contractors and consultants alike, this shutdown is more than political noise — it’s a direct hit on planning, cash flow, and opportunity pipelines.

New Awards on Hold

Procurement shops cannot obligate funds during a shutdown. That means no new awards, no exercised option years, and no contract modifications. For firms awaiting decisions on submitted proposals, the silence is not a rejection — it’s a freeze.

Stop-Work Orders and Ongoing Performance

Not every contract halts. If funding is fully obligated before October 1, performance can often continue. But contracts relying on incremental appropriations are at risk of stop-work orders. This creates uncertainty for project staffing and subcontractor obligations — especially in long-term IT or staffing contracts.

Payment Delays and Strain on Cash Flow

Shutdowns ripple through the payment system. Even invoices for completed work can sit unprocessed until agencies reopen. Larger firms may weather the lag; small businesses and freelancers often cannot. Contractors should anticipate potential delays and plan for adequate cash buffers accordingly.

Administrative Processes Stalled

Procurement isn’t just contracts — it’s certifications, audits, evaluations, and renewals. Many of those support functions are now on pause. That creates a backlog for small businesses seeking set-aside certification or updating GSA schedule qualifications.

What Contractors Can Do Now

• Audit your portfolio: Separate funded contracts from those that require incremental appropriations.

• Review FAR clauses: Understand your rights for cost recovery under stop-work or suspension clauses.

• Preserve cash: Expect delays in invoicing and payments; plan accordingly.

• Stay visible: Even while awards are paused, keep building relationships, updating capability statements, and preparing proposals.

Bottom line: The current shutdown will end — they always do. But how contractors respond during the freeze often determines who emerges with resilience and who loses ground. Staying proactive is the only hedge against uncertainty.

Performance-Based Contracting: Speaking the Language of Outcomes in 2025

Performance-Based Contracting

Government contracting is shifting away from deliverables and toward measurable outcomes. Performance-Based Contracting (PBC) emphasizes results such as improved efficiency, cost savings, and quantifiable impact — not just completed tasks. Better, Faster, Cheaper. For mid-sized businesses, learning to frame proposals in outcome-driven terms can be the difference between winning and losing.

Contractors that align proposals with clear performance metrics, risk/reward sharing, and outcome-focused narratives will stand out in today’s competitive environment. PBC isn’t just a compliance requirement; it’s an opportunity for firms to demonstrate value in terms that resonate with evaluators.

Fiscal Year-End Pressures in 2025

What Government Contractors Need to Know about FY2025

The end of the federal fiscal year is always busy, but FY25 presents unusual challenges for contractors. Agencies are facing reduced staffing, compressed award timelines, and shifting priorities — all of which put pressure on proposal teams. For mid-sized firms competing for federal, state, and local contracts, staying agile is critical.

Contractors can prepare by anticipating delays, building flexibility into staffing, and starting capture efforts earlier than usual. By planning and adapting quickly, firms can mitigate risk and capitalize on year-end opportunities, even in a challenging contracting environment.

AI in State and Local Proposal Development

How SSRJ Delivers Faster and Smarter Results with AI-Augmented Proposal Writing

State and local contracting opportunities are becoming more competitive, and mid-sized businesses need every advantage to win. SSRJ Consulting combines professional AI tools with decades of experience in proposal development to help contractors respond more quickly and effectively.

Unlike free chatbots, which often lack accuracy and compliance safeguards, SSRJ leverages enterprise-grade AI in a secure environment to identify gaps, refine narratives, and ensure proposals remain aligned with strict solicitation requirements.

Our AI-augmented process doesn’t replace human expertise — it enhances it. With SSRJ’s guidance, contractors can achieve stronger compliance, better positioning, and a measurable edge in competitive state and local bids.

Proposal Writing for Government Contracts

Proposal Writing for Government Contracts: A Small Business Guide

For small and mid-sized businesses, proposal writing is one of the most important skills for winning government contracts. A well-written proposal isn’t just paperwork — it’s your opportunity to prove you’re the best value choice.

At SSRJ Consulting, we specialize in helping businesses navigate the proposal process for federal, state, and local opportunities. Here’s what every small business should know about proposal writing.

1. Why Proposal Writing Matters

• Agencies use proposals to evaluate competence, compliance, and cost-effectiveness.

• Strong writing communicates professionalism, attention to detail, and credibility.

• A poorly written or incomplete proposal can disqualify you before evaluators even consider your pricing.

2. Key Elements of Strong Proposal Writing

1. Compliance First – Address every requirement in the RFP. Even the best writing fails if you miss a form or section.

2. Clear Organization – Use headings, bullet points, and tables to make evaluators’ jobs easier.

3. Persuasive Value – Show not just what you do, but why it matters to the agency’s mission or community.

4. Consistency – Ensure resumes, past performance, and pricing align with the narrative.

5. Proofreading & Review – Errors undermine credibility and can signal future performance risks.

3. Federal vs. State/Local Proposal Writing

• Federal: More rigid. Proposals often follow FAR structures and emphasize technical compliance, past performance, and cost realism.

• State/Local: More flexible but varied. Clarity, local impact, and community value often matter more than complex formatting.

Pro Tip: Tailor your writing style to the level of government you’re targeting. Never use a “template.”

4. Common Proposal Writing Mistakes

• Copying and pasting generic text across proposals.

• Failing to align resumes and staffing with the proposed approach.

• Ignoring evaluation criteria and writing only about capabilities.

• Submitting without a final compliance review.

5. Getting Help with Proposal Writing

For many small businesses, proposal writing is a time drain. Partnering with experienced consultants like SSRJ can:

• Save time and reduce errors.

• Improve win rates.

• Provide professional content and strategies tailored to your industry.

Last Points

Proposal writing is both an art and a science. When done right, it transforms your capabilities into a winning story that resonates with evaluators.

Want a step-by-step framework for writing better proposals?

👉 Check out Your First Government Contract.

For teaming opportunities and support on California contracts, visit California DVBE Strategies.

Questions Small Businesses Ask About Government Contracting

Top 5 Questions Small Businesses Ask About Government Contracting

Breaking into government contracting can feel overwhelming. At SSRJ Consulting, we hear the same questions from small and mid-sized business owners all the time. Here are five of the most common — and what you need to know.

1. Do I need to be certified to win government contracts?

• Answer: No, but certifications like SDVOSB, WOSB, or DVBE can give you a significant scoring advantage.

2. How long does it take to get my first contract?

• Answer: It varies. Some firms win within months; for others, it can take 1–2 years of consistent bidding and networking.

3. Should I focus on federal or state/local opportunities?

• Answer: Many SMBs find state and local contracts easier to win at first. Federal work often requires more past performance.

4. Do I need a GSA Schedule?

• Answer: Not always. Many small businesses win millions annually without one. (See our post: Do You Really Need a GSA Schedule?)

5. How do I write a proposal that actually wins?

• Answer: Focus on compliance, clarity, and value. For a step-by-step guide, check out Your First Government Contract.

Key Points

The right strategy depends on your market, capabilities, and goals. But one thing is clear: small businesses that ask smart questions — and seek guidance — shorten their path to success in government contracting.

Management Consulting for Small Business Success in Government Contracting

How Management Consulting Helps Small Businesses Succeed in Government Contracting

Government contracting isn’t just about writing proposals — it’s about having the right management strategies in place to deliver once you win. That’s where management consulting becomes a critical advantage for small and mid-sized businesses.

At SSRJ Consulting, we combine proposal-writing expertise with practical management consulting to help businesses not just compete — but perform.

1. The Role of Management Consulting in Contracting

• Strategic Planning: Identifying which agencies and contracts best fit your services.

• Operational Readiness: Ensuring your business has the necessary staffing, systems, and compliance processes to handle government work.

• Performance Management: Tracking key performance indicators (KPIs) to ensure contract success.

2. How It Complements Proposal Writing

Writing a strong proposal is only half the battle. Evaluators want to see that you can manage risk, deliver reliably, and scale as needed.

• Federal Contracts: Require detailed project management plans.

• State & Local Contracts: Emphasize practical, cost-effective delivery.

👉 A strong management approach demonstrates credibility beyond what’s on paper.

3. Benefits for Small Businesses

• Improved Competitiveness: Consulting support helps small firms present themselves like established players.

• Reduced Risk: Systems and processes prevent missed deadlines or compliance failures.

• Growth Readiness: Businesses with solid management practices can pursue larger contracts with confidence.

4. Real-World Example

A California small business pursuing a multi-year facilities support contract partnered with SSRJ for both proposal development and management consulting. By aligning staffing plans with budget forecasts and compliance reporting, they not only won the bid but also positioned themselves for renewals and follow-on work.

5. Why It Matters Now

Agencies at every level — federal, state, and local — are under pressure to award contracts to capable small businesses. Management consulting ensures that when you win, you deliver — and that performance fuels future proposal wins.

Final Thoughts

Success in government contracting requires both winning proposals and strong management practices. Pairing these services helps small businesses grow sustainably and stand out to evaluators.

👉 Learn more about proposal strategies in Your First Government Contract and explore partnership opportunities with SSRJ.

Do You Really Need a GSA Schedule?

Do You Really Need a GSA Schedule? How to Win Without One (Especially at the State Level)

Many small businesses believe they must have a GSA Schedule to win government contracts. While GSA is a powerful vehicle for federal sales, the truth is that you can win plenty of work — especially at the state and local level — without one.

Here’s how to know if a GSA Schedule is right for you, and how to compete without it.

1. What Is a GSA Schedule?

• Definition: A long-term, government-wide contract managed by the U.S. General Services Administration.

• Purpose: Simplifies federal purchasing by pre-negotiating pricing, terms, and conditions.

• Advantage: Agencies can order directly from schedule holders without running a full competition.

2. The Limitations of GSA Schedules

• Time & Cost: The application process can take 6–12 months and thousands of dollars in prep.

• Competition: Once you’re on schedule, you compete with hundreds of other vendors.

• Fit: Not every product or service is widely purchased through GSA. If you believe your firm is a fit for a GSA schedule, SSRJ develops and assists with the negotiation of GSA awards for clients.

3. State and Local Opportunities Without GSA

• State Portals: Platforms like Cal eProcure, Texas SmartBuy, and NYS Contract Reporter publish open solicitations.

• Local Governments: Cities, counties, and school districts award billions annually without ever using GSA.

• Cooperative Purchasing: NASPO ValuePoint and regional purchasing cooperatives give vendors access to multi-state opportunities.

👉 Many small firms win millions annually in state and local contracts without ever touching a GSA Schedule.

4. Alternatives to GSA for Federal Work

• Open-Market Opportunities: Many federal contracts under the Simplified Acquisition Threshold don’t require a GSA Schedule.

• Set-Asides: SDVOSB, WOSB, 8(a), and HUBZone set-asides often bypass GSA and are far more effective with much less effort to obtain.

• Teaming: Partner with a GSA Schedule holder while building your own past performance. It is perfectly fine to list your products or services through a reselling GSA contract holder on their schedule.

5. When a GSA Schedule Makes Sense

• If you sell commercial products/services frequently purchased by federal buyers (e.g., IT, office supplies, staffing).

• If you have the resources to market aggressively once on schedule.

Final Thoughts

A GSA Schedule can be a great growth tool — but it’s not a requirement. Many successful small businesses build revenue through state and local contracts, set-asides, and teaming partnerships long before pursuing GSA.

👉 Want to learn how to build proposals that win — with or without a GSA Schedule? See Your First Government Contract.

No Cost Market Research for State and Local Contracts

Market Research for State and Local Contracts: Finding Opportunities Beyond SAM.gov

When most small businesses think about government contracting, they head straight to SAM.gov. While it’s the official federal contracting portal, it’s only part of the picture. For state and local contracts, you need to dig deeper to find opportunities.

Here’s how to conduct effective market research for state and local contracting.

1. Why Market Research Matters

• Helps identify which agencies actually buy your products or services.

• Reveals competitor activity and pricing trends.

• Improves proposal targeting — you only pursue bids that you can realistically win.

2. Federal vs. State & Local Market Research

• Federal: Data-rich. SAM.gov, FPDS, and USAspending.gov provide detailed procurement histories, award data, and competitor insights.

• State & Local: Less centralized. Opportunities may be scattered across state procurement portals, city bid boards, and regional cooperative purchasing programs.

Tip: Always start with federal research, but don’t stop there — state and local spending is often easier to access for small businesses.

3. State Procurement Platforms

Examples of where to look:

• California: Cal eProcure

• Texas: SmartBuy and Electronic State Business Daily (ESBD)

• New York: NYS Contract Reporter

4. Local Sources

• County and city procurement websites.

• Regional cooperative purchasing organizations.

• School districts, utilities, and transportation authorities often post bids separately.

Pro Tip: Many federal, state, and local agencies also publish annual procurement forecasts — giving you a head start before the RFP is released.

5. How to Use Market Research in Proposals

• Reference an agency’s prior contracts to show familiarity.

• Tailor your pricing to match local budgets.

• Use competitor insights to highlight differentiators.

Key Points

Market research isn’t just a pre-bid task — it’s a growth strategy. Businesses that know where to look beyond SAM.gov have a major edge in state and local markets.

For more guidance on proposal strategies, see my book:

👉 Your First Government Contract

Pass-Through Risk vs. True Partnership

Pass-Through Risk: Staying Compliant with Subcontracting Rules

Teaming with SDVOSB or DVBE-certified firms can be a powerful way to win contracts — but only if it’s done correctly. Too often, businesses get into trouble by setting up “pass-through” relationships that don’t meet federal or state requirements.

Here’s how to avoid risk and build true, compliant partnerships that stand up under scrutiny.

1. What Is a “Pass-Through”?

A pass-through occurs when a certified small business (like an SDVOSB or DVBE) is listed on a proposal but doesn’t actually perform a commercially useful function. Instead, the prime does nearly all the work and uses the certified firm only to meet requirements.

Risk: This can lead to disqualification, audits, or even suspension from contracting programs.

Exceptions: There are circumstances where this is a legitimate business relationship, SDVOSB and DVBE companies that act as a reseller of products or software or routinely subcontract certain services as a normal operation of their business, for example.

2. Federal Rules: Limitations on Subcontracting

• SDVOSB Contracts: The SBA requires that SDVOSBs perform a minimum percentage of the work themselves (generally 50% for services).

• FAR Compliance: Agencies may audit workshare to ensure subcontracting limits are respected.

3. State Rules: California DVBE “Commercially Useful Function”

• Definition: A DVBE must perform a role that adds value beyond simply acting as a shell.

• Examples of compliance: Project administration, staffing support, reporting, specialized services.

• Risk: If a DVBE is just “on paper,” agencies can reject the bid and bar the prime from future opportunities.

4. Signs of a True Partnership

• Clearly defined scope of work for each partner.

• Revenue split aligned with actual labor and deliverables.

• Joint proposal development, not just signature approval.

• Ongoing role for the SDVOSB or DVBE during contract execution.

5. How to Stay Safe and Compliant

• Document all roles and responsibilities in the teaming agreement.

• Ensure certified firms contribute skills or services essential to performance.

• Avoid agreements where the small business has no staff or deliverables.

Key Points

Government agencies value partnerships — but they also scrutinize them closely. Building a true partnership with SDVOSB or DVBE-certified firms doesn’t just keep you compliant; it makes your proposal stronger and more competitive.

👉 Learn how to structure teaming-friendly proposals in Your First Government Contract.

If you are a contractor in need of an SDVOSB or DVBE contracting partner, get in touch with us today.

Optimizing Your Pricing Strategy for Government Contracts

Optimizing Your Pricing Strategy for Government Contracts: Local vs. Federal

Pricing can make or break your proposal. Too high, and you risk being non-competitive. Too low, and evaluators may question your ability to deliver. For small businesses, the challenge is even greater: how do you balance competitiveness with profitability?

The key is understanding how pricing strategies differ between federal contracts and state/local opportunities — and how to tailor your approach to each.

1. Federal: Cost Realism and Compliance

• What it means: Federal agencies scrutinize pricing for compliance with the Federal Acquisition Regulation (FAR). They don’t just look for the lowest cost — they evaluate whether your pricing is realistic and aligned with your technical proposal.

• Common mistake: Underbidding labor categories in service contracts, only to be flagged as unrealistic.

Pro Tip: Align labor rates with federal benchmarks (e.g., GSA, Bureau of Labor Statistics) and back them up with clear assumptions.

2. State & Local: Budget Sensitivity and Responsiveness

• What it means: State and local agencies are often bound by strict annual budgets. Price is a key factor, but evaluators also look at whether your proposal fits within their budget constraints.

• Common mistake: Submitting a technically strong proposal that’s priced beyond what the city or county can afford.

Pro Tip: Research the agency’s prior awards or council budgets to understand likely funding levels before finalizing your price.

3. Balancing Price and Value

• Federal: Value comes from compliance, past performance, and ability to scale.

• State/Local: Value often means practical benefits — lower administrative burden, faster implementation, or local community impact.

Pro Tip: Emphasize value in terms that match the agency’s priorities. A federal evaluator may care about compliance with FAR Part 15, while a city procurement team may care more about jobs created locally.

4. Incentives and Preferences

Pricing strategy isn’t just about numbers — it’s about how incentives affect scoring.

• Federal: SDVOSB, WOSB, and 8(a) set-asides limit competition.

• State/Local: Programs like California’s DVBE Program offer bid incentives. Even if your price isn’t the lowest, incentives can narrow the gap and help you win.

5. Avoiding the “Race to the Bottom”

Small businesses often assume they must be the lowest bidder. That’s a myth. Most government RFPs use best value scoring, meaning cost is only one part of the evaluation.

Pro Tip: Price fairly, not desperately. A balanced pricing strategy — competitive but sustainable — builds credibility and sets you up for repeat awards.

Final Thoughts

Whether you’re competing for a federal IT services contract or a county facilities maintenance contract, pricing strategy is never one-size-fits-all. Federal buyers want cost realism and compliance. State and local buyers want budget alignment and community value. The best small business contractors master both.

For deeper strategies on proposal development, see my book:

Your First Government Contract

How to Leverage Teaming Partnerships with SDVOSB & DVBE Firms

Using Teaming Partnerships with SDVOSB & DVBE Firms to Win State Contracts

In government contracting, few small businesses can go it alone. Teaming partnerships — especially with certified firms like SDVOSBs and DVBEs — can be the difference between losing a bid and securing the award.

Here’s how teaming strategies help you win more state and local contracts (and how they differ from federal teaming).

1. Why Teaming Matters

• Access to Bigger Opportunities: Small firms can pursue larger contracts by combining resources.

• Stronger Proposals: Partnering adds depth to past performance, staffing, and technical capabilities.

• Compliance & Incentives: Working with an SDVOSB or DVBE can boost your score through bid preferences or subcontracting goals.

2. State-Level Teaming Advantages

• California DVBE Program: Primes often need certified DVBE partners to meet the state’s 3% participation goal.

• Local Preferences: Counties and cities frequently award additional evaluation points for local or veteran-owned partners.

• Practical Benefit: For primes, teaming is often a compliance requirement — making DVBEs and SDVOSBs highly sought after.

3. Federal vs. State Teaming

• Federal: Structured through Mentor-Protégé Programs, Joint Ventures, or FAR Part 9 subcontracting. Emphasis on compliance and detailed agreements.

• State & Local: More flexible, with emphasis on meeting participation percentages, practical delivery, and local economic impact.

4. Keys to a Strong Teaming Agreement

• Define scope of work clearly (who does what).

• Ensure compliance with “commercially useful function” rules (especially in California’s DVBE program).

• Outline revenue splits and subcontracting percentages.

• Present the team as a seamless, integrated solution in the proposal.

5. Real-World Example

A mid-sized IT firm bidding on a $10M California Department of Transportation contract partnered with a DVBE firm. The DVBE handled project administration and compliance reporting, meeting the state’s DVBE requirement. This partnership not only boosted the prime’s evaluation score but also secured them the award over lower-priced competitors.

Key Points

Teaming with SDVOSB and DVBE-certified firms is a win-win: primes meet compliance requirements, while veteran-owned firms gain access to contracts they couldn’t secure alone. The key is building partnerships that go beyond paper compliance and create lasting business growth.

👉 For more guidance on writing teaming-friendly proposals, see Your First Government Contract, or Contact SSRJ Today.

A Government Contracting Consultant Can Accelerate Small Business Growth

Why Hiring a Government Contracting Consultant Can Accelerate Small Business Growth

Breaking into government contracting is not easy. Between navigating RFP requirements, writing winning proposals, and staying compliant with federal, state, and local rules, many small businesses feel overwhelmed. That’s where a government contracting consultant comes in.

At SSRJ Consulting, we help small and mid-sized businesses bridge the gap between opportunity and award. Here’s why working with a consultant can be the difference between spinning your wheels and actually growing your government contracting revenue.

1. What Does a Government Contracting Consultant Do?

A consultant provides expertise across the full lifecycle of contracting, including:

• Identifying the right opportunities (market research, agency targeting).

• Developing compliant and competitive proposals.

• Advising on certifications like SDVOSB and DVBE that improve competitiveness.

• Supporting contract management and performance once you win.

2. Benefits for Small and Mid-Sized Businesses

• Saves Time: Instead of learning procurement rules the hard way, you gain expert shortcuts.

• Improves Win Rate: Strong proposals, structured pricing, and compliance reviews reduce rejections.

• Expands Opportunities: Consultants can connect you with teaming partners and primes who are actively looking for SDVOSB/DVBE firms.

• Reduces Risk: Avoid costly mistakes, such as missing mandatory forms, mispricing, or failing to meet subcontracting requirements.

3. Federal vs. State/Local Focus

• Federal: Consultants help navigate FAR compliance, GSA schedules, and federal set-aside programs.

• State & Local: Consultants focus on tailoring narratives, managing forms, and leveraging incentives like California’s DVBE participation program.

👉 The best consultants help you understand which level of government is the right starting point for your business.

4. When to Bring in a Consultant

• You’re new to government contracting and don’t know where to start.

• You’ve been bidding but not winning.

• You need help with compliance or certifications.

• You’re growing fast and want to scale without missing opportunities.

Let’s Get Started

Hiring a government contracting consultant isn’t just about outsourcing proposal writing — it’s about gaining a strategic partner who can help you compete with larger firms, avoid costly mistakes, and win more contracts.

👉 Want a proven framework for writing winning proposals? See my book Your First Government Contract.

For California-based teaming opportunities, visit California DVBE Strategies.

7 Proposal Mistakes That Cost Small Businesses State & Local Contracts

7 Proposal Mistakes That Cost Small Businesses State & Local Contracts

Winning government contracts isn’t just about being the lowest bidder — it’s about submitting a clear, compliant, and persuasive proposal. Yet too many small businesses lose opportunities because of avoidable errors.

Here are seven common mistakes that can sink your state and local proposals — and how to avoid them.

1. Ignoring Formatting Instructions

Every RFP spells out submission requirements, which can often even include font size, page limits, file naming, and number of copies. Missing even one detail can disqualify you.

Fix: Create a compliance checklist before you start writing.

2. Weak Executive Summary

Agencies want to see why your solution matters quickly. Many small businesses jump straight into technical detail without explaining the benefits. I’ve watched many writers “start” with th Executive Summary because it is the first section in the proposal. What can they possibly summarize? Write the Executive Summary -last- and capture the key points about your company, the approach, your solution, and possibly the price if it is already included elsewhere in the same document. Don’t include the price if the instructions require submitting that in a separate document.

Pro Tip: Lead with outcomes — cost savings, efficiency, or community impact.

3. Overlooking Required Forms

From affidavits to subcontractor lists, local RFPs often come with multiple attachments. Missing one form can invalidate the entire proposal.

Pro Tip: For new proposal teams, assign someone to handle compliance forms separately from the narrative. Fill these early on and line them up for signatures well ahead of the due date. Be on the alert for requirements for a notarized signature - these are common in state & local solicitations, and can add some timeline.

4. Focusing Only on Price

Price matters, but state and local agencies rarely award to the cheapest bidder. They want a partner who is reliable, compliant, and trustworthy. If there is an evaluation scorecard in the RFP, review and critically analyze your competitiveness. Price is usually worth 20-35% of the scoring for a state or local contract.

Pro Tip: Show value — not just cost savings. You want to be “Better, Cheaper, and Faster” - not just “Cheaper.”

5. Generic Responses

Some businesses recycle the same boilerplate text across bids. Evaluators spot it instantly — and it signals that you don’t understand their agency’s needs.

Pro Tip: Never use a “template.” Tailor each proposal. Show you’ve read the RFP closely and understand their goals, and align the proposal to either exactly match the verbatim specifications in the RFP, or follow the RFP’s order of requirements, if not specified. AI is a powerful tool for quickly customizing commonly used blocks of content, without making the mistake of leaving some other agency’s name embedded in the text. Oops!

6. Ignoring Local Preferences

Many states and municipalities offer evaluation incentives. For example, California agencies apply bid incentives for DVBE-certified firms. Missing these opportunities leaves points on the table.

Pro Tip: Research incentive programs and thoroughly review the RFP for the same before writing.

7. Not Proofreading

Typos, inconsistent formatting, or sloppy graphics suggest a lack of professionalism. Evaluators may assume your performance will be equally careless.

Pro Tip: Always build in time for a final review. I typically conduct three full revisions of the proposal: an outline, a first draft (which includes a rough approach and answers), a second draft (with narrative content), and a final draft that focuses solely on completing formatting, pagination, and paragraph numbering.

Final Thoughts

Avoiding these mistakes doesn’t guarantee a win, but it does keep you competitive. Small businesses that submit clean, compliant, and tailored proposals often outperform larger firms. If you need assistance, editorial help, or guidance getting started, connect with us today.

For a full step-by-step guide to building winning proposals, check out my book:

👉 Your First Government Contract

How to Write Winning State and Local Government Proposals

How to Write Winning State and Local Government Proposals (and How It Differs from Federal)

For small and mid-sized businesses, government contracting can open the door to steady growth. But here’s the catch: writing proposals for state and local agencies is not the same as writing for the federal government. Each level has its own rules, evaluation style, and even unspoken expectations.

Understanding these differences can be the deciding factor between winning and losing your next contract.

1. Formatting: Federal Rigid, State/Local Flexible

• Federal Proposals

  Federal solicitations usually follow the Federal Acquisition Regulation (FAR). They come with strict templates, section requirements, and formatting rules. Something as small as exceeding a page limit or mislabeling an appendix can disqualify your bid.

• State & Local Proposals

  State and municipal agencies vary widely. One RFP may want a simple 10-page narrative; another might require dozens of forms, affidavits, and certifications. They tend to be less rigid than federal proposals but often more inconsistent.

Pro Tip: Never assume you can recycle the same template. Federal proposals demand exact compliance; state and local proposals reward flexibility while still punishing missed details. In practice, I use a lot of common content from one proposal to the next, but think of this as more of a “code block” - not a “template.” AI is a great tool for making quick customizations to the pre-written paragraphs

2. Evaluation: Technical Scoring vs. Practical Fit

• Federal

  Federal agencies evaluate proposals against a published scoring system. Every requirement is graded, and “best value” often means balancing technical quality with price. Past performance is heavily weighted, and reviewers usually have deep procurement experience.

• State & Local

  Evaluations can be less formal. City councils, county boards, or local procurement teams may place a stronger emphasis on clarity, practicality, and alignment with community goals. Subjective impressions — such as trustworthiness or ease of working with you — often matter as much as technical scoring.

Answering the requirements by parroting back that the bidder will comply with the requirement is easy to do - but ensure the opportunity is truly a fit for the company.

Pro Tip: For local proposals, write in plain, clear language. Show how your solution directly benefits the agency and its community — not just that you can deliver the scope.

3. Relationships: National Past Performance vs. Local Visibility

• Federal

  At the federal level, proposals live and die by documented past performance (CPARS, references, and subcontract history). Relationships play less of a role in evaluation.

• State & Local

  Relationships matter more. Pre-bid conferences, vendor outreach events, and even informal connections with procurement officers can influence the evaluator’s confidence in your business.

Pro Tip: Invest time in local networking. Many state and city agencies prefer to award contracts to businesses they know and trust.

4. Scoring Incentives: Federal Set-Asides vs. Local Preferences

• Federal

  Programs like SDVOSB, 8(a), HUBZone, and WOSB offer dedicated set-asides and evaluation advantages.

• State & Local

  Incentives vary by jurisdiction. For example, California’s Disabled Veteran Business Enterprise (DVBE) Program awards bid incentives and requires prime contractors to meet DVBE subcontracting goals. Many counties and cities also apply local vendor or minority-owned business preferences that can tip the scales in close competitions.

Pro Tip: Always research the specific preferences in your target market. A two- or five-percent scoring boost can be the edge that wins the award.

Key Takeaways

Winning government contracts requires adapting your strategy. Federal proposals reward strict compliance and technical depth. State and local proposals reward clarity, relationships, and alignment with community values.

If you want a deeper step-by-step guide to mastering proposal writing, check out my book:

👉 Your First Government Contract

Competitive Analysis Using Porter’s Five Forces

How to Conduct a Competitive Analysis Using Porter’s Five Forces

Every successful business strategy begins with a clear understanding of the competitive landscape. Whether you're launching a new product, entering a contract market, or preparing a government proposal, a competitive analysis provides insight into your position and your risks.

At SSRJ Consulting, we apply classic MBA frameworks like Porter’s Five Forces to help our clients conduct a deep analysis of competition in federal, state, and commercial markets.

This article breaks down how to use Porter’s model for competition analysis, especially in government contracting, where policy, procurement rules, and price sensitivity shape market forces.

What Is a Competitive Analysis?

A competitive analysis is a structured review of external forces that influence your company’s ability to compete. It considers:

• Who your direct and indirect competitors are

• What advantages or threats do they pose

• How market forces shape pricing, margins, and win probability

A well-executed analysis of competition supports smarter bidding, better teaming, and clearer differentiation.

Using Porter’s Five Forces for Competition Analysis

Developed by Harvard Business School professor Michael E. Porter, the Five Forces model provides a powerful framework for analyzing the intensity of competition and the profit potential within an industry.

Let’s apply each force to the world of government contracting and small business strategy.

1. Competitive Rivalry

This force assesses the number and strength of competitors in your market.

In Government Contracting:

• How many vendors are bidding on similar opportunities?

• Are incumbents entrenched with strong past performance?

• Are competitors undercutting prices to win?

SSRJ Insight: Use RFP archives, award databases (like FPDS), and teaming announcements to map competitor behavior. Analyze past awards, NAICS code overlap, and pricing patterns.

2. Threat of New Entrants

This force examines how easy it is for new competitors to enter the market.

In Government Contracting:

• Are barriers to entry high or low in your niche?

• How hard is it to get a GSA Schedule or federal certification?

• Are large primes expanding into your territory?

SSRJ Insight: Entry barriers may be low in professional services, but higher in regulated or capital-intensive contracts (e.g., cybersecurity, construction). Certifications like SDVOSB or DVBE can be strategic barriers to entry—protect them.

3. Bargaining Power of Suppliers

Suppliers affect your cost structure and delivery capability.

In Government Contracting:

• Are you relying on expensive or niche subcontractors?

• Do your software, data, or labor vendors have pricing leverage?

• Are small primes at risk of squeezed margins due to partner dependencies?

SSRJ Insight: Create flexible teaming structures and develop backup vendors to reduce supplier concentration. Track subcontractor rates and prepare justification memos when they fluctuate.

4. Bargaining Power of Buyers

This force reflects how much influence buyers (government agencies) have over your pricing and service delivery.

In Government Contracting:

• Are solicitations mostly LPTA (Lowest Price Technically Acceptable)?

• Do agencies require GSA or schedule-based pricing?

• Can buyers easily switch to another vendor?

SSRJ Insight: Build long-term relationships, invest in CPARS scores, and differentiate with service value—not just cost. Use bid/no-bid matrices that consider buyer behavior and procurement patterns.

5. Threat of Substitutes

Substitutes are alternative solutions that can fulfill the same need differently.

In Government Contracting:

• Could the agency insource your service?

• Is AI or automation replacing manual labor?

• Are larger primes bundling services and crowding out niche vendors?

SSRJ Insight: Monitor technology trends, stay updated on agency modernization plans, and develop value propositions that emphasize speed, flexibility, and veteran/small business advantages.

Putting It All Together: Strategic Takeaways

A complete competitor and competitive analysis using Porter’s Five Forces helps government contractors:

✅ Avoid red ocean bidding wars
✅ Choose smarter teaming strategies
✅ Position as indispensable to agencies and primes
✅ Justify pricing and technical approaches with confidence

At SSRJ Consulting, we apply these principles to help veteran-owned, small, and emerging contractors win more and waste less.

Need Help Analyzing the Competition?

Whether you're planning a proposal, developing a GSA strategy, or entering a new NAICS code market, we can help you assess the landscape and act strategically.

📞 Contact SSRJ Consulting today for a competitive analysis tailored to your contracting goals.

SDVOSB vs DVBE

SDVOSB vs DVBE: Which Certification Fits Your Strategy?

SDVOSB and DVBE certifications both help service-disabled veterans compete in government contracting, but they apply to different jurisdictions and come with different benefits.

Whether you're a veteran business owner or a prime contractor looking for a qualified partner, knowing the difference is key.

What Is an SDVOSB?

An SDVOSB (Service-Disabled Veteran-Owned Small Business) is a federal certification issued by the U.S. Small Business Administration (SBA) through the VetCert program.

Key Benefits:

• Set-aside and sole-source contract eligibility

• Applies across all federal agencies (DoD, VA, GSA, DHS, etc.)

• Required for VA’s Vets First Contracting Program

• Can subcontract to fulfill the prime contractor's small business goals

What Is a DVBE?

A DVBE (Disabled Veteran Business Enterprise) is a California state-level certification issued by the Department of General Services (DGS).

Key Benefits:

• Applies to California state and local contracts

• Set-aside and incentive programs (e.g., 3% participation goals)

• Used by agencies, school districts, and cities across California

• Often required for prime contractors bidding on California RFPs

Which One Should You Pursue?

Feature	SDVOSB (Federal)	DVBE (California)
Jurisdiction	Federal (VA, DoD, GSA, etc.)	California state and local
Certifying Body	SBA (VetCert)	California DGS (OSDS)
Use Cases	Federal set-asides, subcontracts	State incentives, DVBE goal fulfillment
Ideal For	National federal contractors	California-based contractors and resellers

Tip: Many veteran-owned businesses choose to pursue both to maximize opportunities at all levels of government.

How SSRJ and CalVetDVBE Can Help

• SSRJ Consulting is a federally certified SDVOSB, offering:

  • Micro-purchase pass-throughs

  • Subcontracting and small prime work

  • Proposal writing and compliance support for federal contracts

• California Veteran DVBE Strategies LLC is a state-certified DVBE, offering:

  • Certified DVBE teaming

  • Software and data reseller pass-throughs

  • Proposal support for state bids and forms

Together, we provide a dual-certified advantage to prime contractors and agencies needing both federal and state veteran business participation.

Need an SDVOSB or DVBE Partner?
SSRJ and CalVetDVBE offer certified support for both federal and California projects.
📞 Let’s team up and help you win. Contact us today.

Waterfall vs Agile Project

Waterfall vs Agile Project Management in Government Contracts

Project delivery in the federal space demands precision, structure, and accountability. That’s why choosing the right project management methodology—Waterfall or Agile—can impact not just execution, but also compliance and contract performance.

Let’s explore the key differences and how SSRJ Consulting helps contractors and agencies align their approach with the contract type.

Waterfall: Sequential and Structured

The waterfall model follows a linear process:

1. Requirements

2. Design

3. Implementation

4. Testing

5. Deployment

It’s ideal for:

• Firm-fixed-price contracts

• Defined scopes and deliverables

• Agencies like VA, DoD, or GSA with heavy documentation needs

Pros:

• Clear timelines and phase gates

• Easy to measure progress and costs

• Familiar to most procurement officers

Cons:

• Not responsive to change

• Can delay the delivery of usable features

Agile: Iterative and Responsive

Agile project management uses short development cycles ("sprints") and frequent client feedback to drive continuous improvement.

Agile fits well with:

• Evolving requirements (e.g., software, data, modernization)

• Time & materials contracts

• Agencies adopting DevSecOps or cloud-native tools (e.g., DHS, HHS)

Pros:

• Early delivery of usable components

• Flexibility to adjust mid-project

• Higher engagement from stakeholders

Cons:

• Requires mature project teams

• Can be misaligned with traditional contract clauses

Choosing the Right Methodology for Government Projects

There’s no universal answer. The choice often depends on:

• Contract type

• Agency culture and processes

• Your internal delivery capability

In some cases, a hybrid approach—structured documentation with agile execution—provides the best of both worlds.

How SSRJ Consulting Helps

At SSRJ Consulting, we help government contractors and agencies:

• Match the right methodology to contract types

• Prepare PM plans aligned with RFP requirements

• Support agile and waterfall delivery models

• Ensure compliance with FAR, CMMI, and internal controls

Whether you're proposing a traditional waterfall work plan or scaling agile methods to government compliance, we ensure your approach is defensible, auditable, and effective.

Need Help Structuring Your Project Plan?
SSRJ Consulting supports agile, waterfall, and hybrid PM strategies tailored to federal contract environments.
📞 Let’s talk about aligning your approach with your next RFP.

California DVBE Certification

California DVBE Certification: What You Need to Know

California’s Disabled Veteran Business Enterprise (DVBE) program helps service-disabled veteran-owned businesses compete for state and local government contracts. Many state agencies are required to award at least 3% of their contracts to certified DVBEs.

If you're a California-based veteran-owned business, DVBE certification can be a game-changer. Here's how to qualify—and where to get help.

Who Qualifies for California DVBE Certification?

To be certified as a DVBE by the California Department of General Services (DGS), your business must:

• Be at least 51% owned by one or more disabled veterans

• Be domiciled in California

• Have disabled veterans managing day-to-day operations and long-term decisions

• Meet California’s small business size standards.

• Have a service-connected disability verified by the U.S. Department of Veterans Affairs or the DoD (most often evidenced by the business owner receiving a VA compensation check every month).

Certification is managed by DGS’s Office of Small Business and DVBE Services (OSDS).

Why DVBE Certification Matters

DVBE certification allows your business to:

• Compete for set-aside contracts with state agencies, school districts, and local governments

• Receive bid incentives when competing for non-set-aside contracts

• Partner with prime contractors seeking to meet DVBE subcontracting goals

• Be listed in the official California DVBE directory, used by buyers and primes

Where to Get Help with DVBE Certification

Our sister company, California Veteran DVBE Strategies LLC, specializes in helping veteran-owned businesses:

• Apply for DVBE certification in California

• Position their businesses for teaming opportunities

• Act as a certified DVBE subcontractor for prime contractors across the state

• Support RFP compliance with DVBE documentation and forms

They also provide DVBE reseller and pass-through services for software, data, and professional services.

Need Help with California DVBE Certification?
Visit CaliforniaVeteranDVBE.com to start the certification process, join a bid team, or find a qualified DVBE partner.