The SLED industry is among the prime revenue drivers for government contractors. State, local and education (SLED) government agencies spend billions of dollars on goods and services, contributing nearly 10 percent to the nation’s gross domestic product (GDP).
Learn about the contracting process and steps to thrive in the SLED sector through this comprehensive SLED government contracting 101 guide.
Table of Contents
What is a SLED Contract?
A SLED contract is a binding agreement between government contractors and state, local or educational agencies to procure products and services. Unlike federal contracts, which cover the entire country or international regions, SLED contracts are more localized to cater to the specific needs of a particular state, city or local government institution.
Nonetheless, these contracts boast considerable financial gains for the nation. According to a report by the National Academy of Public Administration, SLED procurement spending reaches approximately $1.5 trillion annually.
Types of SLED Contracts
SLED contracts are categorized depending on an agency’s procurement requirements. Here’s a breakdown of the different agreements in the SLED government contracting domain.
Municipal Contracts
Municipal contracts address the needs of local government bodies, including boroughs, villages, townships, towns and cities. These agreements typically involve services like waste management, public safety and infrastructure maintenance.
County Contracts
County contracts are contracting agreements between vendors and county governments. These contracts encompass a range of services to meet the needs of residents within the county jurisdiction, such as:
- Record keeping
- Public health initiatives
- Voter registration
- Law enforcement
- Public transportation
State Government Contracts
State government contracts support service deliveries and initiative implementation at the state level. These agreements usually focus on information technology solutions and infrastructure projects like highway and waterway constructions.
Special District Contracts
Special district contracts are outlined based on the needs and responsibilities of special districts. They work independently from towns, cities and counties to focus on:
- Community development
- Natural disaster protection
- Housing projects
- Power generation
- Recreational tasks
Independent School District Contracts
Independent school districts are educational districts tasked with delivering primary and secondary education solutions. These contracts address a spectrum of services critical to keeping things running smoothly, including:
- Educational materials
- Facility maintenance
- IT solutions
Public Colleges/Universities Contracts
Public colleges and universities contracts are government agreements between contractors and higher education institutions. These educational institutions serve as a revenue-driving means in SLED government contracting, as they are financed through public sources.
If awarded the contract, contractors may be responsible for the following:
- Campus maintenance
- Technology advancements
- Academic resources
Benefits of SLED Government Contracts
Contracting companies looking to expand revenue sources and establish local credibility can reap numerous benefits from SLED government contracting:
- By securing SLED contracts, businesses can expand their client base and network with state and local government organizations.
- SLED contracts reduce businesses’ financial risks and open up additional means for profitability.
- These contracts offer businesses a reliable and consistent income stream.
- Competition is typically low in SLED government contracting. With less competition, contractors have a better chance of winning contracts.
- Compared to federal contract processes, SLED procurement is notably more streamlined. Hence, contractors can kickstart the project as soon as possible and deliver results to clients on schedule.
SLED Procurement Process
The procurement process for SLED government contracting mirrors federal procedures but with certain considerations on local regulations and jurisdictions.
Here are the key stages and steps in the SLED procurement process:
Stage 1: Procurement Planning
- The SLED government agency identifies the products and services it needs, which are outlined in public announcements and documents.
- The agency drafts solicitations that encapsulate its requirements to invite contracting companies to submit bids.
Stage 2: Bid Submission and Evaluation
- Interested contractors submit their bids in response to the solicitation.
- The SLED agency evaluates bids based on qualifications, pricing and delivery time.
- After evaluations, the agency awards the contract to the vendor that best fits its current needs.
Stage 3: Contract Execution and Management
- Upon contract award, the selected contractor executes agreements and fulfills obligations as outlined in the terms and conditions.
- The agency monitors costs, documentation and potential issues.
How Government Contractors Can Thrive in the SLED Sector: Tips to Winning Contracts
Understand the Procurement Process and Regulations
Government contractors planning to bid for SLED government contracts must take the time to understand the contracting and procurement process. Each state, local and educational government agency operates under its own procurement regulations.
Register Your Business and Ensure Qualifications
Complete registration requirements set by SLED government agencies to be eligible for bidding on SLED contracts. The registration process may require companies to provide the following:
- Business type/structure
- Tax information
- Unique Entity ID
- DUNS number
Understand the Buying Timeline and Spending Patterns
SLED agencies operate on their own fiscal year schedule, typically aligned with their state’s fiscal year. It’s critical to understand this timeline, from the procurement planning stage to the spending pattern, to determine the ideal period to engage with agencies.
Identify Profitable SLED Opportunities
Conduct market research to find SLED contract opportunities suitable for your business. Submit proposals and offer bids to RFPs that offer the greatest potential for revenue and growth.
Establish Relationships with SLED Agencies
Building professional relationships is critical for business growth. Establish connections with key decision-makers or procurement officials who can provide updates on upcoming projects and contract opportunities. To get started, attend state, local and educational pre-bid conferences and government contracting events.
Maximize Technology and Invest in Tools
In recent years, technology has become increasingly valuable across all sectors, including SLED. Contractors can now simplify contract management through advanced procurement platforms that provide access to bid data and tracking tools and government contracting tools, such as CRM and management software.
