To participate, the company must have all the required legal documents in order, and is then eligible to participate in a bidding process.
However, there are some figures that cannot sell to the government for contextual reasons. Understand:
The author of the basic or executive project, whether an individual or legal entity, cannot participate in the bidding process;
Likewise, the company, alone or in a consortium, responsible for preparing a basic or executive project of which the author of the project is a director, manager, shareholder or holder of more than 5% of the capital with voting rights, or controller, responsible, technician or subcontractor may also not;
Furthermore, the employee or director of the contracting body or entity or person responsible for the bidding process cannot sell to the government.
It is worth remembering: any and all technical, commercial, economic, financial or labor-related links between the author of the project, an individual or legal entity, and the bidder responsible for the services, supplies and works, including members of the bidding committee, are considered “indirect participation”.
The author of the project is permitted to participate in the bidding process for works or services, or in the execution, only as a consultant or technician, provided that this is in the role of inspection, supervision or management and, exclusively, in the service of the Administration.
Advantages of selling to the government
advantages of selling to the government
Learning how to sell to the government is a great way to open up a variety uk business email database of opportunities, as there are several advantages to participating in bidding processes. Check out the main ones:
1. Selling to the government is easy
Selling to the government is not as difficult as it seems. In fact, apart from the legal process involved, selling to the government will actually cost less time and resources than selling to regular customers.
Anyone who has a company knows that each client has a specific demand, it can take hours and hours to negotiate, in addition to all the effort involved in marketing.
Now, when we are talking about selling to the government, things get simpler.
First of all, you won't have to spend money on marketing. A government agency interested in your services won't come to your company because they saw an ad or something like that.
In fact, when we are talking about selling to the government, the process is exactly the opposite: the public administration announces the intention to purchase and you go to them.
Furthermore, when selling to the government, you do not need to train employees to be able to persuade the customer, because when you win a bid, you will not have to deal with arguments of this nature.
The public agency will make its requirements, price expectations and selection criteria very clear to the public from the beginning. Just read the notices carefully.
In other words, the government is like a customer who enters your store already knowing exactly what product he wants to buy and how much he is willing to pay.
Once you learn how to deal with the procedural flow that involves the entire public procurement process, it will no longer be an impediment and it will be much easier to participate in bids and emerge as the winner.
2. The government is a good payer
Contrary to what many people believe, the Brazilian government is a good payer, as it is required by law to pay thanks to the Fiscal Responsibility Law.
Most bids are paid quickly, within 30 days after delivery of the product or service. Of course, there is the possibility of this deadline being extended for another 90 days, but this is all provided for by law.
The Fiscal Responsibility Law helps reduce the chance of default by the government, forcing it to pay.
Furthermore, the fact that Public Administration is governed by laws, rules and fixed procedures makes it easier to monitor, charge and demand payment in cases of delay. In other words, it is more secure than a private client.
The risk of government default is equivalent to the risk of the private sector. However, in some cases, payment of overdue debt is more assertive with public bodies.
3. Anyone can participate and the process is fair and transparent
As we saw previously, any company or person with up-to-date documentation can participate in bidding processes and sell to the government.
Furthermore, the entire bidding process for purchasing a good or contracting a service via electronic auction is carried out to ensure equal opportunities for all companies.
Since, in most cases, the criterion that defines the winner of a bid is price, this ensures equality in the process. And since it is public, if you do not win, you will be able to know exactly why the bid went to another company.
Tips on how to sell to the government
tips on how to sell to the government
As we have seen throughout the text, selling to the government is not difficult. You just need to be aware of how the bidding processes work and sign up.
However, there are still some tips that you can apply when trying to sell to the government that will make your life easier. Check them out:
Evaluate the amount paid by the government in similar tenders
A valuable tip is to keep an eye out for other bidding processes that result in the purchase of a product or service similar or competing with yours.
Knowing how much the government has already paid other companies to provide the same service makes it easier to set a price that is competitive.
Assess whether there is demand for your product/service
There is no point in offering a product or service to the government if the government has no intention or need to buy your product or service.
Therefore, assess whether there is demand within the government for the product or service you offer.