Approximately 70% of expiring contracts are recompeted and research can give you the inside track by knowing who issued the award, who won the award, and for how much.
In this episode of FedBiz’5 we are hosting Anthony D’Attore from FedBiz Access to discuss expiring contracts, and how this can give you the inside track into developing relationships with contracting officers.
Expiring contracts refer to the approximately 70% of all federal contracts that are recompeted. In other words, a business was originally awarded the contract, the contract reaches the end of its contract term, and the contract will be opened again for rebidding.
This is particularly true for service contracts, which renew at a higher-than-average rate. For example, if you are a facility support company like a janitorial company the services are typically ongoing, and contracts are recompeted based on the frequency specified within the contract.
The contract term may vary, but these are often written as one-year contracts with annual renewal options. A common term may be one-in-four (1 year contract with four annual renewal options).
This type of expiring contract is most often renewed with the same vendor during the renewal term, but it is important as a competing vendor to know who issued the contract, who won the contract, and the contract pricing. This can give you the advantage when the contract expires.
An example of a contract not being recompeted would be a construction company contracted to build new barracks. Once completed, the job is finished but there will be ongoing recompeted contracts for servicing the barracks.
Billions in contracts reach their term expiration every year across multiple industries.
The advantage in researching expiring contracts on a platform such as Market Intel is it provides you the opportunity to reach out to the contracting officer who happens to oversee that particular contract.
This is all about relationship building with who buys what you sell. You can also get the inside information on the incumbent competition and their pricing by doing your homework.
Plan to reach out to the assigned contracting officer 90-120 days in advance of the expiring contract. Create a dialog and ask questions regarding the specific contract.
"I was looking into contract ABC123, and it looks like from the records it is set to expire in the near future. Is this a contract you still manage, and think will be recompeted? (If the contract has been assigned to a new contracting officer, ask who it is and for their contact information.) If this is going to be recompeted, I’d like to express my interest and let you know my capabilities and past performance fit the required criteria. I’ll send you my capability statement and let’s schedule a follow-up call.”
Often the contracting officer may be incentivized to find new vendors or may be ready to change for better service, pricing, or terms. Either way, this is your best time to introduce yourself in advance to someone who you know buys what you sell.
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