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The Pareto Principle - GovCon Edition

Sunday, January 02, 2011   (0 Comments)
Posted by: CVOBlog (
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The 80/20 Rule is alive and well in Government Contracting. In fact, due to environmental factors such as our Nation's debt, Continuing Resolutions, a late start to the budget and ever-increasing competition, some think it should be updated to be the "95/5 Rule."

Congratulations! You are one of the 599 companies (or joint ventures) awarded the GSA STARS II contract. You have the privilege of competing for work for the next ten years in a select crowd where there is no guesswork as to who your competition is.

That's the good news.

If like me you listen to folks like Larry Allen (president of Allen Federal Business Partners), Larry said (in a Washington Technology article) he expects a small number of businesses, as low as 5 percent, [will be] getting a significant amount of work on STARS II.

So ninety-five percent of you just spent a lot of time and money for pretty much nothing, if you subscribe to this philosophy. It's the same story for many other GWAC's and the GSA Schedule. In the same Washington Technology article, Ray Bjorklund of FedSources (someone else worth listening to), compared the competition’s likelihood to the Navy’s major IT contract, Seaport-e. It had more than a thousand businesses on the contract, but only about 50 companies received a lot of work.

So, how will you ensure you are part of the 5% instead of the 95%? My first bit of advice is to not sit back and wait for task order requests to be sent to across the proverbial transom. Be sure your company and team understand exactly how business can be prosecuted on this contract vehicle and then get out there and make the business happen!

Once the notice to proceed is issued, of course.

- The Chief Visionary

The person who says it cannot be done should stop interrupting the person doing it.

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