Government Contract Profits

A business opportunity exists in securing government contracts for basic services that are significantly overpriced compared to market rates. The strategy involves identifying simple government needs and bidding on contracts that offer outsized compensation for relatively straightforward work.

Key Points:

• Website Development Contracts:

  • Government paying $19.2M for basic informational websites
  • Work equivalent to Squarespace/Fiverr level complexity
  • Multi-year contracts for simple, low-traffic sites
  • No complex apps or sensitive data involved

• Contract Characteristics:

  • Multi-year terms
  • Simple deliverables that can be completed quickly
  • Low-skill requirements
  • Minimal oversight
  • Significantly above-market pricing

• Real Example of Success:

  • Company pivoted from LED vodka bottles to masks during COVID
  • Secured $80-90M government contract
  • Shows opportunity for dramatic revenue increase through government contracting

• Process Insights:

  • Can view available contracts up for bid
  • Network of "fat cats" sharing contract opportunities
  • Need to navigate government bidding system
  • Risk of public scrutiny (mentioned "Doge" finding contracts)

• Target Opportunities:

  • Basic services that government overpays for
  • Low complexity, high-margin work
  • Services that can be delivered by small teams
  • Contracts that don't require specialized expertise