ABCs of Government Contracts

Red Tape, bureaucracy, strict deadlines and even stricter specifications—securing a government print contract is no easy feat. And it’s even more intimidating considering what’s at stake. The U.S. Government Printing Office (GPO)—the federal government’s primary centralized resource for gathering, cataloging, producing, authenticating and preserving published information—awarded $440 million in contracts in fiscal year 2008. The office is budgeting a 5 percent increase (approximately $22 million more) in print procurement for fiscal year 2009.

But print suppliers can get to those projects, which are awarded through a bid process, if they plan, pay attention and deliver on what they promise.

Suppliers wanting to bag a government contract should start small and build a good reputation, GPO Public Printer Bob Tapella said. “That’s my best advice. If you’re a small mom-and-pop printer with a million a year business, don’t go for the $30 million project. You’re not going to meet the specifications and you’re not going to get the job.”

Instead, Tapella suggested businesses take a look at themselves and the work that they do.

“Look at what you have, look at what you’ve done and what you’re good at,” Tapella said. “Is it forms, envelopes? Specialties set you apart.”

Scoring a government print contract really comes down to three things: “quality, service and price,” said William A. Gindlesperger, founder, chairman and CEO of Chambersburg, Pennsylvania-based e-LYNXX Corporation. The corporation has been helping printers secure government contracts for the nearly last 35 years, and a majority of the print vendors used by the GPO are its clients.

Unfortunately, print vendors often have no idea what they’re getting into when they make their first leap into the world of government printing, Gindlesperger said.

“Government work is not simple unless you know what you’re doing,” he continued. “The GPO has its own language, requirements. It’s much different from commercial [projects].”

And, when it comes to quality, Gindlesperger explained that the GPO’s specifications are “very specific, very detailed, and hard-nosed.” Unlike at fast food chain Burger King, you can’t have it your way when it comes to working with the GPO. The GPO is never going to give a pat on the back for a job almost done.

“This isn’t the kind of thing where you take someone to lunch, they buy it and that’s it,” Gindlesperger said. “You have to be on top of everything.

“If they say something needs to be at a certain location at noon, that’s noon, not 12:01 [p.m.]. If they wanted it at 12:01, they would have ordered it that way. ... It’s very exact.”

Printers who want to participate must make themselves acquainted with the GPO. For instance, Gindlesperger said when a GPO makes a job available for bid, the print supplier must find the job and respond quickly with both accuracy and timeliness.

Printers also must stay on top of any specifications that change during the bid process, especially since the GPO does not notify anyone about the change.

“It is disheartening when the time, effort and expense have gone into bidding on a GPO job only to discover after submitting a bid that an amendment has been made to the original job specification,” Gindlesperger said. “When the amendment is not acknowledged on the face of the bid, it is disqualified by the GPO and not considered regardless of price.”

However, following directions and meeting specifications isn’t enough. Price matters, too.

“We award contracts to the most responsive, responsible bidder,” Tapella said. “But to a large degree, it is driven by price. If the low bid is responsible, there is a high probability that you’re going to get the job.”

One of the biggest problems printers face is that they feel they can’t compete with the other bidders’ prices. Gindlesperger said that frequently happens with printers who traditionally rely on commercial customers. They will often unnecessarily use larger pieces of paper to run a job. A job may call for a 221⁄2x241⁄2” sheet, but they will use a 23x36” sheet to do it, Gindlesperger observed.

“Sheet waste drives a price up,” he added. “Some printers are used to wasting up to 20 percent, and that translates into the bid they submit.

“They have not learned what waste means. And you can’t have that waste on a government job. Your bid won’t be awarded because your price will be so much higher.”

Printers who keep waste to a minimum know how to competitively buy paper and other materials, and operate effectively and are “realistic about what it can produce, can increase revenues and profits with GPO work,” Gindlesperger said.

Learning the ins and out of the GPO are important for securing government print jobs, but before any supplier can place a bid, it must become an eligible GPO contractor. A printer must register with and be certified by the GPO.

Though print suppliers can depend on the GPO’s bid process and its mission of keeping “the American people informed about the work of their government” to stay the same, they should expect other changes under the leadership of newly-elected President Obama.

With every new commander-in-chief comes new programs and philosophies.

“Any time there is a transition in government from one party to another, or change in legislation, there are new programs, agendas and activities.

“We’re anticipating within the first six months, a significant amount of program changes,” Tapella said.

Being just weeks after the inauguration, Tapella couldn’t speak to any specific changes. He did say that it will all be policy-driven, which means it will be determined by agency heads.

He also mentioned that Obama is a president with sustainability on the agenda.

“Sustainability and environmental stewardship is already very important in this office,” Tapella said. “I expect to see more.”

Perhaps not suprisingly, a new president may be good and bad for the printing industry. For example, there are more printing jobs under a Democratic president, Gindlesperger said.

“There’s more printing under a Democrat because there are more social programs and they require printing,” Gindlesperger observed. “If you need to mail a check [for a social program] to 100 million people than those 100 million checks need printing.”

But on the other hand, Gindlesperger said Democrats like to expand government.

“Democratic administrations always build employment inside government,” Gindlesperger commented. “More on-site work means fewer jobs for private companies.”

Despite possible changes, the GPO is still expected to award hundreds of millions of dollars in contracts this year. With a little research, planning, and quality service, print suppliers can certainly get a piece.

For more information on bidding on GPO jobs, visit www.gpo.gov/business.index.html.