Loveland group tames red-tape entanglements

LOVELAND — An estimated 40 percent of the U.S. economy stems from government contracts.

Federal, state, city and county entities, along with schools and hospitals, pump more than $800 billion a year into the nation’s coffers, but most companies never tap into this vast and stable resource. Perhaps companies just don’t know where to begin when it comes to securing government contracts, or maybe they avoid the government sector all together because they see it as too complicated or too bureaucratic.

Kevin Wright aims to change those perceptions through his Loveland-based company, Government Services Group.

Through seminars, CD-ROMs loaded with information and personal consultations, Wright teaches companies how to market to the government.

He learned the ins and outs of government procurement through a decade of selling computers and telephone systems to government entities. In 1991 he launched Government Services Group with a strong hunch that other businesses could profit from his insider knowledge.

“The amount of revenue I generated in my first week of business indicated to me that I was offering a valuable service,” Wright said. “We achieved positive cash flow within 30 days.”

The nature of his business provides Wright with a broad market base. “Any company that has a product or service that can be purchased by any level of government is a prospect for our services,” he said.

Using Wright’s proprietary methods, clients can expect to eliminate up to 90 percent of the paperwork involved in the initial registration process. What normally takes six to eight months, Wright has streamlined into a 30- to 45-day process.

“In essence, we provide marketing solutions that enable companies to expand into the government market,” he said. Of course, the tools Wright provides are not magical. “It’s only as good as the effort put into utilizing it,” he said.

Flat-fee based

Fees for state-based programs range from $500 to $5,000 depending on the territories covered and national coverage can cost from $60,000 to $130,000. Wright offers several different levels of his program, always charging a flat fee. “There’s no surprises that way,” he said.

The information includes updated purchasing contacts, vendor registration requirements, budget dates, where the entity publishes bids and purchasing thresholds.

Wright said that procurement law allows government entities to seek bids for smaller contracts without adhering to publication requirements that govern larger projects.

“Most companies don’t even see a major portion of the business out there because the way procurement laws are set up,” he said.

For example, at the federal level, projects under $100,000 do not have to be published, Wright said. Although the state and local thresholds vary, generally contracts under $25,000 do not require publication by these smaller entities.

While Wright considers much of the information Government Services Group provides clients as proprietary, he did say that he has identified seven different techniques for locating government contracts. Establishing a rapport with the purchasing agents is one key to success in business with the government. Another, more basic rule, he said, is just staying on top of things.

George Cretecos, director of sales and marketing for Comm-Tract Corp. in Massachusetts, said he hired Government Services Group to improve his company’s penetration in the government sector. Comm-Tract is a systems integrator for data networks.

Competitive edge

“When I came into this job, technology was really taking a hit in the tough economy,” he said. “I needed to think outside the box and implement tools that would allow us to gain market share. I thought of Kevin.

“I got all my guys trained at the same time and we have resources to refer back to,” he said. “We’ve probably gotten into a half-dozen major government agencies in the last several months.”

Cretecos said the information and training Government Services Group provides give him the edge over the competition. His company paid a one-time fee of $3,500 for the training. “The way I look at it,” he said, “one sale and I’ve more than covered the cost.”

Scott Marcum is the director of business development for Optimum Management Systems LLC, a Denver-based financial software consultancy.

“We’re anticipating somewhere around a half million dollars in business due to Government Services Group,” Marcum said. The company paid $1,000 for sales training, databases and six months’ consultation. Marcum said that Wright was also able to assist the company in capitalizing on the special considerations government entities provide minority, woman-owned businesses.

Return on investment

Tom Wiedeman, owner of Premiere Lot Services Inc. in Denver, paid $1,200 for training from Wright. He ended up securing a $9,000 contract just a few weeks after initiating the program. While Wiedeman said he is now focusing his parking lot striping service on the private sector, he still considers his investment a wise one. “Having a job of that caliber on top of my resume is a huge advantage,” he said. “You get out of it what you put into it.”

Today, Wright has expanded Government Services Group with independently owned and operated offices in Minnesota, Idaho, Nevada and California. Wright anticipates that in 10 years he will have offices in every state.

While business is great, Wright said his biggest challenge is in training new employees and independent business operators. “This is not the type of business just anyone can operate without an extensive knowledge base,” Wright said. “It takes at least six months to bring them up to speed.”

Max Anderson bought into the group two years ago and runs Government Services Corp. from Boulder.

“It took me a good six months to really feel confident,” he said. “I’ve found there’s a big misconception out there. Working with the government is actually a lot easier than most people think. We help them get past the fear factor into a huge opportunity that most people aren’t taking advantage of.”

on Facebook on LinkedIn