Bidding Across State Lines

Buying from local vendors has become a trend with many government agencies, but this should not deter you from crossing state lines. Once you feel comfortable with government bidding in your local area, you may want to expand your business into other territories. Many government agencies are looking for bid responses and yours will be evaluated just as thoroughly as one from a local vendor. There are many benefits to expanding your business outside of your local region.

Benefits of Bidding Across State Lines

Business expansion is the main benefit when you do business with government agencies outside your home state. However, it doesn’t end there; stability, diversity and a steady stream of income all add to your business expansion.

• Term contracts - Compliance with terms can ensure stability for a business for up to 20 years.
• Steady income - Even if you need to bid low, you can count on government contracts to pay within 30 days. This is great for slow periods and increases financial security.
• Company Value - Relationships with both local and out of state contracts can add diversity to your portfolio. Being able to show successful compliance with government standards adds value to your company and can aid in applying for a loan or selling your business.

Important Planning When Bidding in Another State

Questions to Ask

When planning to do business with government agencies from other states, there are business decisions you might have to consider. First, decide on which states/regions you want to expand into. Once you have a plan of where you want to grow your business, take into consideration your products and services. Is your product able to be shipped or delivered within a reasonable timeframe? Are the added cost of travel or shipping going to make your bid competitive? These are some questions you may want to consider answering to properly strategize your plan for doing business with government agencies outside your state.

Rules and Regulations Per State

Aside from these questions, you may also want to consider noting that not all states have the same rules in place for public procurement policies. Please keep in mind that although all government agencies use a bidding platform to procure products and services, they each also have their own system, rules, and regulations in place, so you must be able to be compliant with their needs. Researching and reading procurement laws within another state should be part of your due diligence process.

Pre-Bid Meetings

When looking for bids outside your local will also need to keep traveling for pre-bid meetings in mind. Attendance is sometimes required before you can bid on a contract, although, in recent years, many pre-bid meetings have been moved to an online platform or via the phone. Many municipalities will continue this virtual communication for their pre-bid meetings which allows vendors even more incentive to look for bids outside their local area. Make certain to check the solicitation notice for any pre-bid information; when utilizing the bidding platform Bidnet Direct, you can see the details of the pre-bid meetings within the solicitation notice page.

Doing Research Is Also Important

If you have the team and the means to work in other states, you’ll then need to ask yourself what can your business handle? A good way to gauge workload is to peruse past bid documents. Registered vendors on Bidnet Direct can find past closed and awarded bids that match their scope of work. You can find the dollar amount awarded to many bids as well as the details of that award. This can help you better understand how to price your products/services for future bids. You can also search for past term contracts and work proactively towards future bids. Access to past bids will help you recognize your competition, be it local or across state lines, and how they work together with governments.

How Bidnet Direct Can Help You Prepare

Bidding platforms, like Bidnet Direct, can offer you an efficient way to find bid opportunities in all states and regions. With Bidnet Direct, you can register and access bid opportunities from multiple states that you are interested in doing business. You get notified when matching bid opportunities are available via email. You will spend less time manually researching every bid opportunity for your business and be able to do the research, and ultimately expand your business across state lines. Bidding outside your comfort zone can certainly help with your growth goals. On Bidnet Direct, we can help you find opportunities for your business from all states to start expanding your business.