We kicked off Spilling the Tea on GovCon strong this year, as Teresa Moon interviewed Austin DeLorme, Megan VanHorn, and Haley Yeagley of Auxo Industries. Specializing in providing insight and expert perspectives on navigating the intricate world of government acquisition, the Auxo team brings unique credentials to the conversation. Their backgrounds span scientific program management, contracting, and developmental engineering, offering a comprehensive view of the challenges and opportunities in government contracting. Here are some highlights from their conversation.
The Knowledge Gap Challenge
One of the most significant barriers for small businesses in government contracting is the knowledge gap. While large prime contractors often have dozens of former government employees who understand the system intimately, small businesses typically lack this insider knowledge.
As Austin DeLorme explains, “If you’re a prime, you’re going to come to me and you’re going to have all the answers because you’re going to have hired 40 people from inside the government. And if you’re a small business or a non-traditional, you’re immediately disadvantaged because you’re harder for me to work with because you have questions.”
Partnerships with more experienced companies can help small businesses begin to gain more of that knowledge. You’ll also want to work with companies that know about the GovCon industry to help improve.
What Government Professionals Really Care About
The panel revealed several key factors that government acquisition professionals consider when working with contractors:
- Efficiency in Communication: Government acquisition professionals are often understaffed and overworked. They appreciate partners who can make their jobs easier by understanding the system and requirements without requiring extensive hand-holding.
- Basic Infrastructure Knowledge: Companies need to understand fundamental government contractor requirements, including:
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- Financial management tasks
- Deliverable expectations
- Program management capabilities specific to government contracting
- Security clearance requirements (when applicable)
- Proper invoicing procedures
- Transparency and Communication: Haley Yeagley emphasizes the importance of honest communication with program managers: “genuinely as a program manager, I want you to succeed because then I succeed.”
Critical Success Factors for Small Businesses
The Auxo founders shared several key pieces of advice for small businesses as they work to grow their knowledge of the GovCon world.
- Seek Clarity First: Before diving into federal contracting, thoroughly evaluate:
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- Whether the federal market makes sense for your business
- Your intended role (prime contractor, subcontractor, or B2B partner)
- Your specific niche and the problem you’re solving
- The infrastructure needed to succeed
- Build Proper Infrastructure: Invest in necessary systems and capabilities before pursuing opportunities:
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- Appropriate security clearances
- Compliant accounting systems
- Cybersecurity requirements
- Program management capabilities
- Maintain Strong Performance: As Haley Yeagley notes, “the government has a very long memory… and small business that has no past performance has to work so hard just to get in the door cause they don’t have any history and they mess up one time and they’re done because the government will remember.”
The Importance of Patience and Education
Success in government contracting requires patience and continuous education. Businesses should focus on building the infrastructure to work with government, understanding their processes, developing relationships and having the money to back it all up.
Working with government more than just having a great product or service – it requires understanding the unique aspects of the federal marketplace and building the proper foundation to support long-term success.