When I was a Second Lieutenant, my Squadron Commander sat me down and handed me what we called the Career Pyramid that laid out exactly what assignment I needed to take next, when I needed to go to military school, when I should expect to compete for command—my whole career laid out in excruciating detail over the course of twenty years ensure I would make it to either colonel or retirement—whichever came first. However, as I continued to meet with higher-ranking officers in my career field, they each continued to share with me how they had not followed that path, how they had gotten lucky, or found success differently, or just flat out ignored the “right way.” And I began to wonder—why should I follow this?

  I’ve noticed the same thing happens to start-ups in the dual-use or defense space. They meet an advisor or consulting firm that hands them a roadmap (metaphorically or sometimes literally) and are told “This is the path to federal success.” And for some companies, maybe that path will work, but for many companies, it will not. Or it may not be the best path. Or there may be a quicker path. Or… you get the idea. The road to federal success is narrow and anyone espousing a single route or a guaranteed way is selling something (so to speak). Let’s talk about some of the elements you should consider when planning your own path before setting out.

The Myth of a Singular Path to Success

  The primary reason there can be no single road to success is the vast variety in the market—both in terms of buyers and sellers. The "government" is not a homogeneous entity, and success does not look the same for all companies. I'll say it again: success does not look the same for all companies.

  Before pursuing federal sales, you should define what success means for your business. Is it reaching a specific revenue target or profit margin? Or is it achieving status as a prime contractor or having your offering become a Program of Record?

  These latter two milestones—prime contractor status and becoming Program of Record—are frequently touted as measures of success in the GovCon community. I closely scrutinize these goals when advising small businesses.

  Companies that ask, "How can I become a prime?" or "How do I become a Program of Record?" should first consider why these are realistic or meaningful goals for their company. What does being a prime or a Program of Record offer, really? Revenue? Profit? Status? Stability? Being a prime can provide more direct influence with the government and sometimes greater stability or a higher profit margin, but it also brings increased infrastructure, reporting, and regulatory requirements, as well as supply chain risks, which constitute an entire industry.

  Being a Program of Record can indeed be seen as a milestone and convey a sense of stability, but it's important to recognize that many types of products/services are incapable of achieving such status under government regulations. Furthermore, being a program of record comes with significant congressional, regulatory, and audit oversight, and can make your company a target for competitors. Importantly, you do not need to be the prime on a Program of Record to have your offering written in as a baseline or core requirement of a major program, or absorbed into a baseline budget, which means you don't have to compete for fallout funds or inserts every year.

Company-Specific Strategies

  Once you have determined your goals and how you will measure success, it's crucial to craft a plan tailored to your company and its objectives. Depending on your offering, you may need to acquire or develop specific resources or infrastructure unique to the federal market to implement your strategy. For example, some contractors involved in large, non-commercial, highly competitive source selections will likely need past performance scores in CPARs, while others may never participate in a FAR 15 source selection.

  Companies selling unique items in the commercial marketplace that do not easily translate to government agreements should be cautious of regular FAR contracts and non-OTA or non-commercial authorities. Similarly, some contractors should never be primes, whereas others might have a business model better suited to manage such relationships with the federal government, including the necessary infrastructure.

  These decisions should be based on what you are selling, your overall company model, your government use case, how you are selling, and the infrastructure you currently have or are willing to develop. Evaluate your market—consider who is spending, how they are spending (authorities, vehicles, sole source vs competitive, use of GWACs, IDIQs, dollar amounts, contract type, classified or not, cyber requirements).

  Advisors who offer a single path or insist that "you must have past performance in CPARs" or that you are not a mature vendor until you have undergone a DCAA audit are being reductive. Such advice may lead you down a path that wastes your time and resources.

Team Building and Resource Allocation

  Once you've evaluated your market and determined your company-specific strategy, you can build your team and allocate resources accordingly. This process will likely need to be done in phases—prioritizing based on immediate needs and budget availability.

  For team building, you should consider which skill sets can or should be organic versus outsourced. For example, certain positions, such as a Facility Security Officer (FSO), cannot be outsourced. So, if your primary use case requires a Facility Clearance (FCL), that may necessitate an immediate, organic hire, and pursuing an FCL may be a crucial investment in infrastructure. Alternatively, if your market primarily involves sole-source or direct sales, you may choose to prioritize hiring an account executive or sales representative in-house and seek outsourced support for proposal management and writing until you grow your federal pipeline.

  Likewise, the type of advisors or consultants you engage may vary depending on your market analysis and company-specific strategy. If you are largely in a competitive market, focusing on advisors who understand the acquisition system may be beneficial. If you are selling something proprietary, your focus should be on leveraging consultants who can help define your use case and market it to potential users, and who can assist in gaining an audience with those end-users—not typically the Contracting Officer, except in very rare cases.

  Keep in mind that your needs may change over time. For instance, you might start with an unclassified use case and not require an FCL. After several years in the federal market, you may decide to alter your offering or tailor it to a new customer that requires you to access classified information, necessitating additional infrastructure and employees with clearances. Similarly, you can choose to build federal-specific infrastructure in areas such as Human Resources, Contracting, Accounting, and Supply Chain, gradually as you broaden or expand into the federal market over time.

Final Thoughts

  I think we can all recognize that having a clear, structured plan is comforting. However, in reality, there is no universal roadmap to success in the federal market. The truth is, the journey to becoming a fully established federal contractor is unique to each company and filled with unpredictable variables.

  The good news is that there are many consultants out there who can offer valuable advice and help you develop a general strategy. However, be cautious of those who promise a foolproof path from newcomer to industry leader. Remember, success in the federal market often hinges on timing—something largely outside of your control—and the inherent appeal and readiness of your product. The right advisors will aid in navigating this terrain and boost your odds of success without making unrealistic guarantees.

  Your strategy must be adaptable, evolving as your company grows and as market conditions shift. Build a team and infrastructure that can adjust to these changes, and be prepared to re-evaluate your goals. Above all, steer clear of one-size-fits-all solutions and remain skeptical of anyone offering a single path to victory, no matter how enticing it may sound.

  Embrace the complexity of the federal contracting world. Be prepared to continuously adapt your strategy. Forge your own path. This approach, more than any checklist or formula, will give you your greatest opportunity for success.