Without the right resources in place, companies risk wasting money on proposals that will not be selected by the United Sates Department of Defense (U.S. DoD). This page offers a list of things to consider about your company’s readiness for a successful U.S. DoD market entry.
A well-structured resource assessment ensures that your business is financially stable, technically prepared, and strategically positioned for success in the U.S. DoD market.
By addressing gaps in funding, compliance, expertise, and relationships, companies can enhance their competitiveness and increase their chances of securing long-term government contracts.
Investing time in this assessment is not just a preparatory step; it’s a strategic advantage that differentiates successful DoD contractors from those that struggle to break into the market.
Past performance
U.S. DoD prioritizes vendors with demonstrated past performance in relevant areas. Businesses must assess whether they can provide:
- A letter of past contract performance from a U.S. DoD buyer
- A letter of past contract performance from Public Services and
- Procurement Canada, if you’ve had Canadian government contracts
- Case studies or references from similar projects
- Performance metrics that prove reliability and effectiveness
- A track record of delivering on time and within budget.
Relationships
So, your initial research identified which end-users actually buy your product or service. Now you need to take the next step to identify multiple contacts that have a role in the buying decision-making process.
Besides selling and developing relationships, you have to put yourself out there.
Participation includes not just proposals but also pre-solicitation activities like responding to Sources Sought notices and participating in Industry Days.
Don’t be afraid to ask potential end users questions like:
- How about a capabilities demo?
- Would you like a facilities tour?
- Who would you call if you were me?
- Who else do you know who we should talk to?
- What could we do better next time?
Capacity
- Sales and business developers to build relationships with U.S. DoD end users, contracting officers and existing prime contractors.
- Sales support staff for planning, forecasting, sales follow-up, contract relationship management, partner relationships and referral development
- Project managers with experience in government contracting
- Financing and legal support
- Product design and production to create products to meet contract needs
- Technical experts who understand military requirements and support product/service development
- Compliance officers to ensure adherence to U.S. DoD regulations
- Proposal writers skilled in crafting competitive bids
- Program, project and contract administration managers
- Marketers to create government-specific messaging, collateral, advertising, and client communities.
Finances
American companies say it takes them 12 to 18 months and an investment of between USD $30,000 and USD $233,000 to win their first U.S. federal government contract. The good news is that 67% of those companies win more federal business within 12 months of winning their first contract.
The research you’ve done on who buys your product or service, the average contract values for your category, and the numbers and strength of your competitors for that business, and your company’s current level of readiness will all factor into the size of your initial investment.
The reality is you need to be able to make the upfront investment to move into the market, build awareness and relationships, and pre-position for future Requests for Proposals.
Securing a U.S. DoD contract often involves upfront investments in personnel, materials, and compliance. Companies must assess their working capital, payment cycles, and funding options to sustain operations while awaiting government payments, which can take 30 to 90 days or longer.
Registrations, certifications, and compliance
Success in the U.S. DoD market requires meeting strict regulatory requirements, including:
From Canada you might require:
- Security clearances for select individuals issued by the Public Services and Procurement Canada (PSPC) under the Contract Security Program (CSP) to ensure the individual is trustworthy, reliable, and free from security risks
- Security clearance for my organization issued by the PSPC under the CSP to store, handle, and protect classified information and manufacture, repair, and modify sensitive items
- Controlled Goods Program registration to examine, possess, or transfer controlled goods such as weapons, military equipment, advanced technology, and related technical data that could be used for military purposes.
- Joint Certification Program (JCP) to access and share unclassified military technical data between the two countries
From the United States you might require:
- Cybersecurity Maturity Model Certification (CMMC) for data security
- Federal Acquisition Regulation (FAR) and Defense FAR (DFARS) compliance
- ITAR (International Traffic in Arms Regulations) compliance for show compliance to safeguard sensitive military-related technologies.
A failure to meet these requirements can disqualify a company from bidding on contracts.