Understanding SLED
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Understanding SLED (State/Local/Education)
Comprised of state, local, and education government entities, the SLED market spans a wide range of public sector organizations that purchase goods and services, like the federal government but on a smaller scale. This guide will take you through the essentials of understanding, entering, and scaling in the SLED market.
What is SLED?
The term “SLED” stands for State, Local, and Education, which refers to government entities at the state and municipal levels as well as public educational institutions, like universities. Essentially anything that is not covered by the federal government would be considered SLED.
Local governments and organizations are responsible for providing services such as infrastructure, public safety, education, healthcare, and utilities to communities across the United States. From local universities needing to move furniture to the needs of the entire state of California, companies of all sizes can be sure to find jobs that match their scope and capabilities.
SLED Contracting
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Hundreds of Bidding Websites/Portals:
Unlike federal contracting, there is no one website or location where businesses can find any contract they’re looking for. The SLED market has thousands of separate entities each with their own proposal processes and portals.
Varying Complexity:
It is up to each SLED entity to determine their own rules for submitting bids on contracts. This means that the complexity level from one bid to the next can vary wildly.
Consistent Demand:
State and Local governments have regular needs that return over and over again. Making the SLED market a stable source of revenue for small businesses.
Why is SLED Important
SLED jobs are a great way to start if you’re new to contracting. If you find that federal contracts are too large in scope for your current operations, then looking into smaller scale projects with local governments can be a great way to build past performance and generate revenue.
Key Benefits:
High Demand:
SLED contracts require everything from construction and IT services to office supplies and general maintenance.
Reliability:
Government contracts are often more stable than commercial jobs, with potentially yearlong agreements to guarantee return revenue for your business.
Diverse Opportunities:
With thousands of contracting entities across the country posting new contracts daily, there are endless opportunities for businesses of all sizes to pick from.
Approved Vendors:
State and local governments often rely on businesses they have worked with in the past when they award smaller jobs that don’t require bidding. Developing a positive relationship between your business and the community posting the opportunity can lead to your business winning these No Bid contracts repeatedly whenever they require your products or services.
Local contracts tend to be less competitive than their federal counterparts. Ignoring them could mean missing out on many opportunities that you have a higher chance of being awarded.
Contracting With State/Local Governments
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Step 1: Understand Your Offering
Identify what products or services you provide that align with government needs. Research common procurement categories that match your expertise (e.g., IT solutions, facilities management, staffing).
Step 2: Research Your Target Markets
Begin with a local focus – city, county, and state opportunities in your area. Learn about the purchasing priorities and budgets of targeted entities. Use government procurement websites or public records to locate upcoming bids.
Step 3: Get Registered
Register your business with state procurement systems and local government platforms. Obtain any required certifications or qualifications (e.g., minority- or woman-owned business status).
Step 4: Learn the Procurement Process
Understand how bids and RFPs (Requests for Proposals) work. Review previous contracts to see pricing, competition, and requirements.
Step 5: Start Small
Target smaller contracts to gain experience and establish credibility. Build relationships with procurement officers and government buyers.
Growing and Scaling Your SLED Strategy
Once you have secured your first contracts, the next step is to scale and increase your presence in the SLED market. Here’s how:
Build Relationships
- Networking: Attend government bidding events, trade shows, industry seminars, conferences, and local networking opportunities.
- Outreach: Contact government officials, like procurement officers, department heads, and decision makers directly.
- Follow-Up: Keep in touch with any contacts you’ve made from previous jobs completed or bids where you were able to establish a relationship with the government point of contact.
Leverage Past Success
- Highlight any completed contracts and satisfied clients in future proposals.
- Past Performance builds trust that you are a credible business that the government can rely on to get the job done.
Expand Geographically
- If you started locally, consider going after opportunities in neighboring counties or states.
- Keep an eye out for opportunities where you will be able to service and be in contact with multiple organizations.
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- This will expand your influence and allow you to build an even stronger network of government entities with a positive opinion of your business.
What’s the Homework?
Before we begin the next module, work with your team to complete the following items.
Understand your offering by identifying the following
- Service Area (Where is your business currently comfortable working, and where do you want to expand)
- Core Products and Services to sell to the government
- Pricing Model (overhead costs, hourly wages, profit margins, available bundles/discounts)
- Past Performance (1-5 references in the last 5 years)
- Resumes of Lead Personnel