Business

Pros and Cons of Targeting the Federal Government for Nonprofit Tech Grant Funding

When seeking technology grants, one should consider the pros and cons of targeting the federal government for technology grant funding for non-profit companies. When looking for funding for programs, I think there are three advantages to focusing on the federal government: 1. Money is safe, 2. There is easy access to information, and 3. Larger orders, therefore more profit. Whereas, three disadvantages would be: extensive offer proposal, considerable amounts of paperwork during contract maintenance, and the competition is great.

The first advantage I listed is that the money is safe. If my company were to win a business contract from the government, I would surely get paid. It would eliminate the late payment or collection process that we currently have when dealing with smaller entities or individuals. The second advantage of targeting the federal government is that the government can provide easier access to information for its contractors through up-to-date Internet sites, which are not always accessible with smaller providers. Finally, the third advantage I see is that bigger orders equals bigger profit. Securing a government contract would likely be a substantial order and win for our company that would be worth whatever hurdles we may have to overcome in the long run.

The first downside I see in targeting the federal government is that there will most likely be an extensive bid proposal process. We have submitted offers for local providers that do not even compare to the possible hundreds of pages that a government proposal could contain. This would mean many physical hours spent preparing the bid for the proposal. Second, I think a big disadvantage for my company if we were to get a government offer is that there would be a considerable amount of paperwork involved to keep the contract. The government is under the public eye and therefore sets strict regulations that providers must follow, which includes a lot of paperwork! Again, this would involve many hours to keep up with this obligation. The third disadvantage that I think is that the competition would be tremendous. Although governments are asked to favor smaller companies, I think the competition between those smaller companies would be very great. I feel that my company would be disadvantaged compared to other competitors simply because, first, we are not a depressed company, and second, we are not a minority-owned company.

With all of this being said, I would advise my company leaders to “go for it.” I think they should pursue a government contract and I justify this by saying that I think the pros outweigh the cons in our situation. I think the potential benefit alone would justify my recommendation. However, before making the final decision to proceed, I would also advise my company to review our current budget and ensure that the cost of the additional hours involved in preparing the bid proposal is affordable even if the contract does not is awarded. Then, of course, if the contract is awarded, the cost of maintaining documentation must also be considered.

Leave a Reply

Your email address will not be published. Required fields are marked *