Strategic Differentiation In Government Contracting


When the Government releases a Request For Proposal (RFP), they are looking to identify contractors who specialize in meeting their needs. If the many contractors who do respond to these RFPs cannot stand out, they will not be able to compete successfully.

What Is Strategic Differentiation?

Strategic differentiation is a vendor showing and proving they are the best company to contract with for resolving the agency’s problem. The Government usually publishes a special problem or need that must be met with specific requirements. The Government will seek out a vendor that it confidently feels it can sufficiently and successfully address the problem or need. Companies that prove they can fully meet this special need will be noticed by the federal agency.

Why Is Strategic Differentiation Important?

Strategic differentiation is important because the federal agency will not take notice of your ordinary claims of good customer service or that you offer a common product. Most vendors can claim to be good at what they do. But what they do makes a difference that wins the bid. The Government usually has a special need that only can be met fully by niche organizations.

Key Differentiations

The most successful US companies know that a happy customer is always worth more than an unhappy one. Federal contractors need to focus their marketing efforts and make sure they are top of mind with potential clients if they want any chance at success in today’s economy. The way to do this is to demonstrate niche capabilities that make your company stand out from the herd of vendors.

Below are some key differentiators:

· Be A Niche Industry

Government agencies usually have unusual needs with highly complex requirements. Your company needs to have niche capabilities to meet this need sufficiently and this needs to be proven. This will be a strong differentiator.

· Provide Specialized Service

Focusing on your strengths is a sure-fire way to ensure that you land the contract. Government contractors need qualified professionals and highlighting what makes you unique will give them no choice but to hire an agency with a unique solution for their needs. Provide specialized services that offer solutions not found elsewhere.

· Stress Attractive Core Values

Maybe your company offers many of the same services as other competitors but that doesn’t mean that you cannot stand out.

Does your company’s core values guide how they do things? Does their perspective on business make them unique in some way and deserve recognition for it?


Your company must offer something specialized or at least share core values with the Government agency to prove the best option for them. Creating a unique perspective on your business for the Government’s notice can help your company stand out from the competition. It is important to remember that while you may have many of the same services as the competitors, there are still ways in which they could be seen as the best option. This achievement can be derived from significant differentiators in the areas of product specialization, proven expertise, project enthusiasm, and core values.

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