Past performance in the federal government can be tricky. Like any business, the government requires contractors to have past performance (or prior government experience). But for business owners new to government contracting, how are they supposed to earn past performance?

According to a report by the Government Accounting Office, most agencies continue to award contracts to businesses with past performances, making prior experience the second most important selection criteria after price. So how do novice business owners overcome this obstacle?

Here are six ways to overcome the past performance challenge.

1. Consider relevant commercial experience to boost your proposal

According to the contracts specifications, agencies may request for past performance or relevant experience.  The answer lies in projects that may be similar in the commercial arena and a high quality proposal that clearly demonstrates an understanding of the requirement at hand, a unique and cost effective project plan and high performing personnel and/or products tailored to the agency’s statement of work to offset an interim, light past performance record.  Corporate “best practices” are sometimes accepted as relevant past performance.

2. Look for micro-purchases to gain past performance in a timely fashion

Micro-purchases are small government purchases (under $3,000) and may be awarded without soliciting competitive quotations, if the contracting officer or individual appointed considers the price to be reasonable. Did you know that 70% of government procurement transactions are micro-purchases through credit cards? The important factor is that it doesn’t matter how small the contract is; you can now put past performance on your company’s capability statement. To get started, contact small business specialists at the agencies you are targeting. Each federal agency has a specialist to assist small businesses. Contact information for these specialists can be found online at the respective agency’s website. Recently, a one-year business secured a micro-purchase federal government contract by pitching his company’s capabilities adeptly at an event hosted by American Express OPEN – on a napkin and in five minutes! So sharpen your pitching skills and make face-to-face appointments TODAY!

3. Obtain subcontracts and acquire experience

Subcontracting is one of the most widely used method of obtaining past performance and prior experience.  As a subcontractor, you not only get to perform a portion of the work but you become familiar with the government’s purchasing methods without the risk.  To find subcontracting opportunities, visit http://web.sba.gov/subnet.

4. Team up with a more experienced company to get your foot in the door

A study by American Express OPEN found that business owners that team win 50% more contracts. But be careful who you team with. Do your homework to make sure your teaming partner has a good reputation with the federal government by checking their credit history, working capital, past performances and if they have any current teaming relationships. To find teaming partners, visit www.usaspending.gov and www.fpds.gov. These two websites offer a wealth of past performance information that lets you see who your buyers and competitors are.  You can also customize the information and pursue teaming relationships with those firms currently doing business with an agency you are targeting.

5. Look for awarded contracts on www.fbo.com within your specific field and location.

You never know but a small business that recently won a contract may be seeking your resources to help them fulfill the contract requirements.  Establish a teaming relationship and this will help you build your past performance.

6. Research the Small Business Administration website to find out if your business is eligible for any Small Business Certifications, such as the 8(a) and Hub-Zone programs

Both programs help small businesses stand out from competitors and allow a small business an opportunity to receive sole source non-competitive bids up to $4 million.  Government procurement goals are challenging to meet and as a certified firm you become a valuable commodity to any teaming partner having past performance but not having the certification it needs to win the contract.