Since the early whispers of sequestration back in 2010, I’ve been warning companies that more competition would be the theme in the federal market for the next decade (or longer). The rules that drive acquisition are making it easier for COs to compete requirements, and making it harder to justify not competing them. Competition is going to continue to increase. Historically, about 70% of contracts are competed. My bet is that this ratio hits 72%, or even 75%, by 2020. That’s a big deal. This is also good news – if you love to compete.
At its core, our economy is built on competition. Our belief in free markets is based on effective competition. Competition is good. Competition is how we get innovation. It’s how we get new ideas. It’s how we get better. It’s how we get better people. It’s how we get better results. It’s how we grow. It’s also how we get rid of bad people (and companies) who underperform. I love to see great companies compete and win. I also love to see bad companies (who abuse their employees, neglect their customers, and mismanage their resources) lose – and eventually go out of business.
I love competition. Now, that doesn’t mean I like to lose. Far from it. But what it does mean is that when we do lose, we learn one of two things: either we need to get much better at what we are doing or we need to stop doing it. If you Google “Skyway Acquisition Solutions” (or me personally), you’ll likely find lots of things we started and abandoned because we could not be one of the best at that endeavor for some reason. Ever hear the advice, “Do fewer things and do them all exceptionally well”? Do you heed it? It’s not easy, is it? Competition demands it.
Which companies will win? The companies who focus on opportunities that are the best fit, who know where they are competitive (and not), who develop a culture to find (and keep) the best people, and who expertly execute the basic ‘block and tackling’ of business management. This is not terribly new information (or shouldn’t be). The concept of focus, staying in your strength zone and minding your cash flow are not new. However, they can actually be rare.
I’ll be blunt: some companies were more lucky than good over the last 10 years of high federal spending. The ones who were just “lucky” (not so “good”) are taking a beating now that competition is back where it should be. Success is a combination of being lucky and good. You need to be both lucky and good. If you are already lucky and you are already good at few things, what is the one more thing successful companies need to be “good” at? You guessed it: Competition.
P.S. I know that I am lucky. I’m lucky to have been a contracting officer. I’m lucky to have worked on some very cool programs and offices. I’m lucky to have a great team of Rock Stars in our company. I’m lucky to live in Florida and I’m lucky have a great family. I’m very lucky. Here’s the competition part: you get to decide if I am good.