[Congressional Record Volume 144, Number 100 (Thursday, July 23, 1998)]
[Extensions of Remarks]
[Pages E1396-E1397]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                   IN RECOGNITION OF PAUL E. GOULDING

                                 ______
                                 

                        HON. PATRICK J. KENNEDY

                            of rhode island

                    in the house of representatives

                        Thursday, July 23, 1998

  Mr. KENNEDY of Rhode Island. Mr. Speaker, in last month's Financial 
Executive magazine a featured interview with Paul E. Goulding, a 
management consultant to businesses large and small, focused on 
procurement of Federal contracts. Mr. Goulding, who is a constituent of 
mine and an expert in procurement issues, has had broad experience in 
the field of government contracting in a long distinguished career that 
includes senior executive positions in Federal service as well as the 
private sector.
  As an Administrative Assistant to Senator Claiborne Pell, he worked 
closely with Rhode Island businesses, advising and assisting them in 
obtaining Federal contracts. While Deputy and Acting Administrator of 
the General Services Administration in 1979 and 1980, he developed an 8 
point program to cut operating costs at GSA. And as a Professional 
Staff member of the Senate Committee on Rules and Administration, he 
conducted the first comprehensive study of the Senate's major 
operations, including how to improve its procurement procedures.
  Mr. Goulding has, in fact, played active roles as advocate, 
administrator, and advisor in the government procurement process. 
First, as a congressional staff member in assisting the business 
community in our state of Rhode Island. Secondly, as head of the 
largest non-defense agency buying goods and services for the 
government. Lastly, as a consultant to major international corporations 
as well as to small businesses.
  Mr. Speaker, I respectfully submit this interview to be included in 
the Record as part of my remarks. Mr. Goulding has offered some 
worthwhile and common sense advice for companies who are seeking to do 
business with the Federal government:

                     [From FEI News, May/June 1998]

                  Q&A: Making Uncle Sam Your Customer

       Financial Executive recently interviewed Paul E. Goulding, 
     a Washington, D.C.-based consultant and expert in the arcane 
     art of government procurement.
       Q: Your firm has helped clients obtain more than $30 
     billion in government contracts during the last 10 years, 
     companies like AT&T and Hewlett Packard. Do large companies 
     have a big advantage when it comes to selling to Uncle Sam?
       PEG: While you might assume they would, my experience 
     indicates that isn't the case. For instance, some big 
     companies get involved in bidding on major contracts and find 
     they are lost because their marketing people, who want to 
     make the sale, are saying one thing while their government 
     relations people have an entirely different view of what 
     should be submitted in the bid.
       A dilemma for top management?
       PEG: Exactly. Some small niche companies, on the other 
     hand, know exactly what their market is and how best to sell 
     to it. Each case is different and there is no cookie-cutter 
     formula. I keep an open mind and try to evaluate each 
     situation as I see it.
       Although small and medium-sized firms frequently need more 
     help steering through the process, they are often more 
     successful than larger companies because they tend to be more 
     flexible and less bureaucratic when faced with complex 
     challenges.
       Why should firms of any size bother to do business with the 
     U.S. government given all the red tape involved?
       PEG: When I hear that question, I tell the story of the 
     businessman who buys a hardware store after moving to a small 
     town. He asks his new employees who the biggest hardware 
     customer in town is. He is surprised to learn that the 
     customer isn't doing business with his store. When the 
     owner asks why not, his employees say the customer is 
     difficult to do business with and requires that a lot of 
     forms be filled out. I point out that same customer is 
     probably very wealthy, doesn't bounce his checks and 
     usually does repeat business when satisfied. That's the 
     type of customer the federal government can be.
       Just how big a customer is the U.S. government?
       PEG: The U.S. government buys goods and services valued at 
     over $200 billion. That makes Uncle Sam the biggest customer 
     in the world. And it's not just the dollar figure that's 
     large, but the number of individual acquisitions. According 
     to the GSA Procurement Data Center, over 20 million 
     individual contract actions are processed every year.
       Now that we're in a global economy and even small 
     businesses are entering the overseas export market, and given 
     all the problems in dealing with tariffs, quotas, foreign 
     currency exchange, international letters of credit and 
     shipping, it doesn't make sense for U.S. companies to fail to 
     maximize their U.S. government business, which is right on 
     their doorstep.
       What would you advise firms that want to do business with 
     the government?
       PEG: It will require an investment of time, money and 
     resources. Starting a relationship with the government is 
     very similar to a company entering a new market overseas. The 
     company has to make a commitment to the market. Sometimes 
     companies will ask me why they can't just go after one 
     contract and see how they do. Well, that system is just about 
     as effective as the guy who goes to the race track and bets 
     on one race to see if he's going to win that day.
       Like any start-up marketing effort, the company has to be 
     willing to allocate manpower and resources to help develop 
     their government business.
       What would you advise a company that already does some 
     business with the government?
       PEG: I would first ask what percentage of the domestic U.S. 
     market the firm services. If you answer 10 percent, then I 
     would ask what percentage of the government market for your 
     product you control. If the answer is 5 percent, then at the 
     very least you need to double your government sales.
       What else do you tell a new client looking to grab 
     government business?

[[Page E1397]]

       PEG: I explain how often doing business with the government 
     is the reverse of doing business in the private sector. 
     Before you can make a government sale, in many instances you 
     must do considerable research to find out how the government 
     buys your product or service, who buys it, where they buy it 
     and, often overlooked, when they buy it. Also, the government 
     sometimes changes the rules or methods by which it procures 
     goods and services.
       If you take the time and trouble to learn the system, you 
     can figure it out.
       Why do companies turn to consultants like yourself to help 
     them?
       PEG: The principal reason is that it's more efficient. It 
     is less time consuming and, in the final analysis, less 
     expensive to involve qualified people on your team.
       Is doing business in Washington different from doing 
     business in, say, Cleveland?
       PEG: It certainly is. It's important for corporate leaders 
     to make a commitment of time and effort to learn the business 
     practices here, which are often different from those in the 
     private sector. At the same time, a similar commitment has to 
     be made to develop long-term political and social 
     relationships with the leading players on Capitol Hill and in 
     the bureaucracy. Success in Washington absolutely requires 
     both.

     

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