Practical Advice for the SLED Market

In this episode of Game Changers for Government Contractors, host Michael LeJeune is joined by Angela Seymour, a procurement expert with nearly 20 years of experience, to discuss the SLED (state, local, and education) market. Angela shares her insights on the benefits and challenges of pursuing SLED contracts compared to federal contracts. She covers key topics such as the importance of local networking, differences in proposal requirements, and common misconceptions about certifications. Angela also provides practical strategies for positioning your business, finding opportunities, and understanding local procurement processes. This episode is a must-listen for contractors looking to expand into the SLED market or refine their approach.

To listen on your favorite podcast platform, click below:

???FA: https://federal-access.com/ep-344-practical-advice-for-breaking-into-the-sled-market/

???Apple Podcasts:?https://apple.co/3y4sNdA

???Spotify:?https://spoti.fi/3SPTZoB

??To watch, click here: https://youtu.be/Yf3z-ZC-lpU

?

Read Transcript Here:

Michael LeJeune (00:00) Everybody, welcome to another episode of Game Changers for Government Contractors. I'm your host, Michael LeJeune, and we have Ms. Angela Seymour here with us today. Angela, before we get started and talk about the SLED market and its differences, why don’t you tell everybody a little bit about who you are and what you do?

Angela (00:18) So, my background is in public procurement. I've got almost 20 years of public procurement experience. I started out with a county here in South Carolina, where I worked for about 15 years. Then I went to the state of South Carolina, providing training in their government procurement program. I then moved to the University of Massachusetts PTAC, which is now APEX Accelerators, and worked there. I've been with the University of South Carolina for a little over a year now.

Michael LeJeune (00:54) Nice, nice. When we started talking about doing the podcast together, you proposed an interesting topic. I don't think we talk about the SLED market a whole lot, so that’s something we want to dive into today. Most of the focus here is on federal, and for those listening who haven't heard before, I'm a little biased—I really like the federal market more than the SLED market. We're going to discuss the differences, but the SLED market is a good one too. And for those who don’t know...

Angela (01:04) I agree. Right. Absolutely.

Michael LeJeune (01:23) SLED stands for state, local, and education. These are all government-funded opportunities you can go after. Let’s kick it off with one of the most important questions: What do you think are the biggest differences between being a government contractor in the federal market versus focusing primarily on the SLED market?

Angela (01:45) I think it’s the experience. You can gain more contracts in the SLED market because there aren’t as many requirements as there are in the federal market. Plus, in the state and local markets, you’re local—you’re there, you can show up in person. It’s a lot easier to gain that face time and exposure. With the federal market, unless you’re knocking on DoD’s front door, they’re not going to know you as well. When I was a procurement officer, it was easier for me to find contractors locally. I tell my clients all the time, “They can’t do business with you if they don’t know about you.” It’s just easier to get that exposure locally.

Michael LeJeune (02:35) Right, yeah. I think there are almost two different mindsets in businesses: one where you’re trying to work nationally, and one where you’re focused locally. The two don’t always mix well. If you have a national mindset, which a lot of companies do, the federal side is easier. But if you have a local mindset, I 100% think the SLED market is easier.

Angela (02:47) Mm-hmm.

Michael LeJeune (03:01) Especially if you’re within the general vicinity of contracts. I’ve got clients in Oklahoma and Texas who say, “Mike, you could drive a hundred miles in any direction and you’re not going to see anything but maybe a gas station.” So, “local” to them is different than “local” elsewhere. But in general, I think you’re spot on. You brought up an interesting point about restrictions.

Angela (03:01) Mm-hmm. Right. Absolutely.

Michael LeJeune (03:30) With things like CMMC—cybersecurity requirements—and other mandates, do you see a trend where government contractors, who know how government works but are primarily federal-focused, will migrate to the SLED market to avoid these hassles?

Angela (03:37) Absolutely. A lot of smaller companies, maybe with just two or three people or even just one, often struggle with these requirements. In the APEX Accelerator program, we see companies that are literally one person, and they don’t want the burden of CMMC just to do business with DoD—especially for something like janitorial work. These are businesses of one, maybe two or three people. They don’t have the time or the money to invest in those requirements.

Michael LeJeune (04:54) Yeah, 100%. There are a lot of solopreneurs—the one-person companies—that you see in this market, and they do struggle on the federal side. If they’re not self-performing that work, it becomes difficult. What do you see as the key challenges for small disadvantaged businesses, especially those with certain certifications, like veteran-owned or woman-owned?

Angela (05:07) Mm-hmm.

Michael LeJeune (05:24) There are mandated programs on the federal side. On the SLED side, I see people getting those certifications, but how applicable are they, and what are the key challenges for small businesses?

Angela (05:30) Well, first of all, knowledge. A lot of them think that because they have a VOSB (Veteran-Owned Small Business) certification, it will automatically be recognized in the state or local market, but that’s not the case. As I tell my clients, the federal government doesn’t recognize state certifications, and the state doesn’t recognize federal certifications. So, the biggest challenge is a lack of knowledge. They don’t know what’s available. Not every city or county has set-asides. For instance, in Lexington County, South Carolina, it’s "sharpen your pencil, bring your best offer." There are no set-asides or local preferences. Across the river in Richland County, they have set-asides and local preferences. It can be really challenging to navigate all these differences.

Michael LeJeune (06:42) Do you feel it’s challenging for companies, regardless of size, when procurement is so decentralized? For instance, where we live, I’m 45 minutes from North Carolina, roughly an hour from South Carolina, about 45 minutes from Kentucky, and 20 minutes from Virginia. I can touch five or six states in an hour or two, but each has different procurement processes, rules, and setups. How do you help someone navigate that if they’re in South Carolina, in your backyard?

Angela (07:38) Well, there are a couple of different resources we use. Obviously, being in South Carolina, we walk them through the state sites. Our APEX Accelerator program has a map that shows all the counties, about 60% of the cities, and many school districts. On a national level, I show them NASPO, which has a state map I provide to my clients. There’s also USA BIDS, which has some local coverage. But if they really want to dive deep, they’ll need to Google each town. One of the biggest challenges is that not all places have e-procurement boards—some still post paper notices in their lobby or only advertise through the South Carolina Business Opportunities board. So, there are places where you need to make personal contacts.

Michael LeJeune (08:47) That’s interesting. I was talking to one of the bid-matching companies two or three years ago about how they pull data. They laughed, saying, "A lot of it is digital; we use APIs." But they also have to call some places to get information over the phone, or even get CDs mailed to them with bid data. I thought that was crazy—this was in 2022 or 2023. You’d think everything would be posted online, but some places are still thumbtacking it to a board in their office.

Angela (10:14) Yeah, it’s wild. A lot of contractors don’t realize that either, which makes it important to use all available resources, like bid-matching services or your APEX Accelerator, to ensure nothing slips through the cracks.

Michael LeJeune (10:32) Exactly. What do you recommend as a strategy for positioning in the SLED market? In the federal market, we talk about finding who buys what you sell, running data, and then reaching out. Maybe attend conferences. How does the approach differ in the SLED market?

Angela (11:33) In the SLED market, the approach is to go directly to the end user. If it’s janitorial services, I’d advise clients to first reach out to the procurement officer and see if they can connect with the building services manager. If it’s local and you can drive there, just show up, introduce yourself, and ask what contracts are available. Some entities use public contracts that are posted online, like in Lexington County, but you won’t necessarily know who the contact person is unless you do some digging.

For example, I had a client working with Title VI, providing legal services. I told her not to get pigeonholed—look off to the side. Community development programs often use Title VI funds, so I suggested reaching out to the community development manager or someone in grants to offer those services.

Michael LeJeune (13:39) Yeah, that is quite different. On the federal side, you often don’t get to know the end user until after you’ve won the contract. Or, unless you do some sleuthing on LinkedIn. What do you recommend on the event side? In the federal market, we have big events like VETS, SAME, or the HUBZone conference. What about the local level? Do you recommend any events there?

Angela (14:37) It depends on the location. A lot of procurement answers end with "it depends." In South Carolina, we have the South Carolina Agency of Government Purchasing Officers (SCAGPO), which hosts a reverse vendor fair where counties set up tables and vendors come to talk to them. SCAGPO also has an annual retreat in Myrtle Beach. I recommend looking into state-level procurement associations and their events.

For example, NIGP is holding its conference in Charlotte this year. That’s the National Institute of Governmental Purchasing, and it’s a great opportunity for companies to sponsor a table and meet buyers from all over the country, even though the event is local.

Michael LeJeune (16:16) That’s great. So, if someone is starting out in South Carolina but hears about opportunities in North Carolina or even California, what’s your advice for expanding out of state?

Angela (16:45) First, make sure you’re established in your own state before expanding. You don’t want to take on more than you can handle. Expanding too soon can lead to overextending yourself, which can be a death sentence for a company—just like in the federal market, getting terminated for cause is a big deal, and these agencies do talk to each other. It’s critical to establish a strong base locally before moving elsewhere.

Michael LeJeune (17:52) That’s really good advice. Do you see a massive difference in the proposal process and requirements between the federal and SLED markets?

Angela (18:03) Yes, the federal side is much more stringent. The state and local processes are simpler. For example, a proposal for building a shed in the federal market might be 20 pages, but in the state market, it could be just three pages. The requirements aren’t as burdensome.

Michael LeJeune (18:43) Right, and do you see fewer requirements around things like past performance?

Angela (18:43) Absolutely. Generally, the SLED market only requires similar experience. It could be private or government—it doesn’t matter, as long as you can do the work. It’s a lot more flexible.

Michael LeJeune (19:26) That’s interesting. What about product-based contracts? In the federal market, you have things like the Buy American Act. Are there similar requirements in the state market?

Angela (20:12) Not necessarily. It depends on where the funding is coming from. If the funding comes from the federal government, there may be requirements. But if it’s state-funded, it’s usually less restrictive. Some states might have preferences, like South Carolina, which evaluates bids differently if you’re a local business, but that’s about it.

Michael LeJeune (21:17) Right. Are HUBZone preferences still applicable in the state market?

Angela (21:17) Not necessarily. It really depends on the state and the funding.

Michael LeJeune (21:39) So, are there any downsides to focusing solely on the SLED market and ignoring the federal side?

Angela (21:43) Not at all. In fact, I think there’s an upside. There are more opportunities, and I tell my clients that if they want to go into the federal market but have no experience, the SLED market is the best place to start. Government experience begets experience, and the local market is the perfect place to get started.

Michael LeJeune (22:14) That makes sense. It seems logical to start in the SLED market and then move to the federal market. Are there any other websites you’d recommend for people looking at the state side?

Angela (22:37) Make sure you register with your state. If you see an opportunity, and there’s a registration requirement on a page, get registered right away. Don’t wait until the last minute. Also, contact your local APEX program to see if they have bid-matching services. Those centralized services can be really helpful. And, of course, register for any e-procurement pages you come across.

Michael LeJeune (23:46) Right, and definitely read the instructions, especially with paper bids. Some places may require you to physically drop off bids or send them by mail. I’ve heard horror stories about people missing deadlines because of a postal snafu.

Angela (23:50) Exactly. Make sure you leave enough time for your bid to arrive on time. The procurement officer isn’t going to make sure FedEx gets your bid there on time—you have to do that.

Michael LeJeune (24:38) Yeah, and I’ve seen too many people rely on FedEx or USPS, only for a package to get lost or delayed. It’s your responsibility to make sure it gets there.

Angela (24:49) Right. And things happen—packages fall through the cracks. You’ve got to give yourself enough time.

Michael LeJeune (25:07) Exactly. Any final thoughts or goals for folks just entering the SLED market?

Angela (25:22) First, find your niche. There’s controversy around the middleman strategy, and it’s harder to get into that spot. Even though there are fewer requirements, you’re in contact with the end user, and they’ll know if you’re struggling to fulfill an order. Make sure you have a clear niche and apply yourself in that area. Definitely get in touch with your APEX Accelerator—they can really help guide you.

Michael LeJeune (26:12) I always tell people to use every available resource. Some people ask if they should use me or another service. I say, "Why not both?" Two or three resources are better than one. Everyone has different expertise.

Angela (26:16) Absolutely.

Michael LeJeune (26:38) Since you brought it up, I want to discuss the middleman strategy. There are way too many people on YouTube or TikTok broadcasting that you can make millions of dollars working in your underwear as a middleman, literally doing nothing. It sounds ridiculous, but people are desperate—they buy these $300 courses, then call me up saying they were told to get registered in SAM and just start bidding. I’ve had half a dozen people in the last month tell me they won contracts, only to realize they don’t have the money to fulfill them.

Angela (27:12) Mm-hmm.

Michael LeJeune (27:37) One guy called me about a $65,000 contract for toilet paper, and he had no way to deliver because he thought he could just get it from Sam’s Club. He didn’t realize you can’t put in a $60,000 order online. It’s risky, and I want people to hear that from a reliable source.

Angela (27:51) Absolutely. I tell my clients there’s a lot of risk. I’m not telling you not to do it, but you’ll be held accountable. If they don’t receive it or the payment is delayed—let’s say another COVID situation happens—you’re still on the line for $65,000 or more if there’s a penalty.

Michael LeJeune (29:24) Yeah, and in the federal market, you’re required to do 51% of the work yourself, so it’s a risk if you’re not prepared. The risk isn’t just about delivering products—you need to know the logistics of it.

Angela (29:48) Exactly. There’s so much risk. You need to know what you’re doing. I can’t tell my clients not to try the middleman strategy, but they need to understand the risks.

Michael LeJeune (30:17) Absolutely. If you want a side hustle from home, be an affiliate for Amazon, Cabela’s, or another brand. Make some videos and get paid through your affiliate link. It’s simpler and has fewer risks.

Angela (30:50) Right. You have a better shot at making it through YouTube than dealing with the federal government. Again, I can’t tell them not to do it, but the risk is significant.

Michael LeJeune (30:58) Absolutely. Great point. I really appreciate the discussion today—thanks for coming on and talking about the SLED market, opening some eyes, and pointing out some helpful resources. Thank you.

Angela (31:12) Thank you. I appreciate you having me on, and if you ever need me again, just give me a call.

Michael LeJeune (31:25) Thank you.

?