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How to Win a Federal Contract With No Experience, No Facility and No Equipment

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James Lee, an active-duty military service member from Washington D.C., shares his remarkable journey of winning two federal contracts without quitting his job, owning a facility, or possessing any equipment. His business idea originated from a casual conversation with his daughter about the sustainability of laundromats and dry cleaners, industries he recognized as essential services that rarely lose value. Seeing the daily struggle of fellow service members who were too busy to handle their own laundry, Lee proposed a pickup and drop-off service for military bases. Despite having only his official letterhead and past performance records, he decided to pursue this opportunity while raising a family and serving on active duty, proving that significant entrepreneurial success is possible within the constraints of military life. The path to securing these contracts was not straightforward, as Lee faced numerous rejections before achieving success. He initially struggled with the complexities of government contracting, including understanding requirements like DUNS numbers and CAGE codes, but overcame these hurdles through mentorship from friends and online resources. His first major breakthrough came after responding to a "Sources Sought" posting on a Florida base; despite initial confusion regarding bank verification requests and skepticism from competitors who claimed the contract was already promised, Lee persisted with faith and determination. When a competitor fell through, he seized the opportunity to submit a bid again and won the contract, demonstrating that resilience in the face of rejection is crucial for long-term success in this competitive field. To execute the contracts without physical assets, Lee leveraged his military network to find trusted subcontractors and project managers located near the bases, effectively building a virtual operation from the ground up. He flew out immediately after winning the first contract to set up operations, bringing his own business cards and presenting himself with professionalism that earned him the trust of skeptical partners who initially thought he was a scammer. His ability to move quickly, secure leave approval from his command, and establish on-the-ground support allowed him to deliver excellent service, leading to contract extensions and a second, larger award. This strategy of relying on trusted relationships rather than owned infrastructure enabled him to maintain full-time military duties while running a profitable business. Ultimately, Lee's story serves as an inspiring lesson for others, particularly fellow service members who believe they cannot start businesses due to their schedules or lack of experience. He emphasizes the importance of defining one's "why," such as teaching his children to never give up and showing them that perseverance leads to success regardless of obstacles. His advice centers on thorough research, maintaining humility, and not letting early failures define one's potential. By staying committed to his mission and continuously moving forward despite receiving thirty rejections before two successes, Lee has transformed a simple idea into a thriving enterprise, offering hope and practical guidance to anyone looking to navigate the challenges of government contracting.
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Everyone thinks that you have to quit your job to win government contracts. This man was on active duty the entire time. >> I don't have anything. I literally only thing I had my was my letterhead and that's all I had. >> Laundry, the least glamorous line item on the federal budget. >> I saw 30 no's before I saw two yes's. >> 30 rejections while serving, while raising a family. >> Two weeks later the COR sent me an email was like, "Hey, are you still interested in this?" >> Here's exactly how an active duty service member won two federal contracts with no experience, no facility, no equipment without ever leaving the military. >> Basically I'm James Lee, a little young boy from uh Washington, D.C. I always had different visions and different thoughts in my head about what I wanted to do as I continued on with through my journey. But one day something said, "Hey, what is one of them sustainable markets that's continued no matter what?" And I was having a discussion with my youngest daughter and I was just doodling on a a sketch pad and she was like, "That look like a laundromat." And when she said that I was like, "Oh, wow. It does look like a laundromat." And so that's when I started doing my research and started saying, "Hey, there's not dry cleaners or laundromats don't really lose a lot of value. They actually one of those industries that continue to sustain and continue to move in with the market." And then that's when I started doing more research and being military I was able to talk to a lot of my subordinates and be like, "Hey, what can help you throughout your day or with laundry?" Because a lot of them don't like Truth Truth be told, a lot of people don't like [laughter] They they too busy. And so I was like, "What if somebody offered you a service to come pick up your laundry and drop it off back to you?" And so they was like, "If they have access to base, I'm good with that." And so basically how everything just hatched and and nothing I've been going ever since. And and that's what usually happens is like you sees a such a minute task you're like, "Oh, oh my gosh. I got to do that again." But when we actually look at it from a business standpoint, laundry Yes, it's been some nights I've been like, "Oh my gosh. Like what am I doing with my life?" >> [laughter] >> But it's just just saying that I can actually get a contract and actually fly out a few days later to make sure everything's set up. That's the joy I get out of it now. And now it's just more of a competition to myself and me setting goals for myself. So, for me it was basically learning on the fly because like I said, I was doing a lot of trial and error and a lot of my ideas I would talk to friends to see what they thought of it. And so, like I said with with Paul, he basically helped gear me towards cuz at first I was like, I need a facility, I need to do this, I need to do that. And he was like, "Dude, why don't you just try to find a government contract and get your DUNS and your cage number?" I was like, "What is a DUNS number? What I need that for?" And that's when I started looking like when I first got finally got my SAM registration, I started looking at FBO and I started just reading some of the solicitations. And I was like, "Okay." But then after I started reading solicitations, I had to try to figure out how to price things because like I said, I was new to this market. And so, I was like, "I don't know how to do this." And then so, guess who had guess who had a video for it? >> [laughter] >> So, Eric had a had a video for how to price the market and stuff like that. And so, that helped me start gauging the market especially cuz the first contract I was working on was the one in Florida. And so, I started looking at their prices and started figuring out how to upcharge and stuff like that as well. And honestly, even with the first contract that I stumbled across, basically I I seen the Sources Sought and I just sent out my information for the Sources Sought cuz I was like, "Okay, what can hurt?" And then so, they they responded back to me and they were like, "Hey, I'm glad you responded. This is a 48-hour turnaround." And so, I was like, "Oh man." So, we actually went over my buddy's house for a barbecue and I had I brought my computer cuz I was going back and forth, "Ah, should I try it? Leave it alone." And so, his wife Lanita was like, "Nah, James, just do it. You never know what's going to happen." And I was like, "You're right. You're right." And I actually sitting at the barbecue with my computer just typing up just making sure everything was good, checked it like three times. And actually when I turned it in, it was like I want to say it was like an hour left before I had to have it in. And two days after that, they sent me an email and was like, "Hey Mr. Lee, we need you to send us bank verification documents." I was like, "What in the world? What's going on? I'm confused." And then so I got my bank to sign the verification document and then I sent it to them. And then they sent me another form and was like, "Hey, we need this as well." I was like, "Bro, what's going on?" [snorts] I feel now I'm confused. I'm like, "Did I do something wrong?" And so I I talked to my buddy at work and he was like, "Jimmy, I I think you may be close to getting this contract." I was like, "Man, I don't know. I'm scared. Like, did I do something wrong?" Cuz I'm like, they go back and forth with me and I was like, "Oh man, did I do What did I do?" Like because like I said, this is a new environment for me and like I said, this was my first time really dealing with the government on a business standpoint. And so that's why I was like I was nervous first off cuz it's my first time submitting a bid. And then second, they asked me for all this verification. Now I'm like, "Oh man, did something happen?" And so then finally they came back and sent me the congratulations on email and was like, "Hey, you've been awarded this contract and it starts in 4 days." It was just it was a surreal feeling because I was like, at first I I had doubt and some angst about it because even when when I was trying to submit a bid for it, like when I was trying to do my market research, some of the cleaners down in that portion of Florida, they wasn't really too cooperative and they it was like, "Oh, you don't And one company legit said, 'Hey, you ain't got to worry about that contract. I already been promised this contract.'" And so that was a little discouraging especially being new to the field. And so I was like, "Oh man, well, I'm probably not going to get it because he already said it's been promised to him." And but I still have my faith. Everything happens for a reason and it it is just me staying true to my faith and the Lord kept me pushing through. And not only that, if I'm trying to teach my kids never to quit at anything, I that I would have been setting a bad example of being a hypocrite. And so that was one of my reasons for pushing. And then not only that, I'm competitive. And because that person said, "Oh, it's been promised to me." Oh, no. Now now I'm really coming towards it, man. And so that's basically what happened. I saw it as a competition. What's funny is the fact that I got both of my contracts off of Sources Sought. So the first contract I got off of Sources Sought, then the second one I responded to a Sources Sought for it. And then I actually lost that contract, but because it fell through, I was the first person that they emailed emailed saying, "Hey, the contract is back open. Would you still like to go through with your bid?" And so I did. And then a week later I got paid. "Congratulations, Home Away From Home. You've been awarded this contract." And I was like, "Oh." And then it was like, "Oh, but we need you here in 2 days to do the walk-through." Okay. Let's make it happen. >> [laughter] >> Now you got the contract. What's next? >> So when I So and it's and it's funny because when I got the contract, I got it a response on Sunday. On Monday morning, luckily I was up and a email was sent from the COR to the person that actually gave the contract out and was like, "Hey, this person's in Hawaii. How is it possible they're going to be able to run this contract?" >> Mhm. >> But like I said, the Lord works in mysterious ways because I was actually sitting up on my computer at the same time that I got this email. And so at first I was about to respond to the email, but then I just called [snorts] I just picked up the phone and called him. And when I actually called him and talked to him about, "Hey, I'm used to the that area because of my military service." And and it it it basically put him at ease. Um and like I told him, "I have a project manager already on on ground and we will be there on Tuesday." So right after I got off that phone call, I booked my flight. >> [laughter] >> Cuz I I Now now I I put a timeline to myself now. So now I have to be there. But the thing that helped me is being in the military, I knew people in Florida. And a good friend of mine, who I call he's my basically my brother, Keith, he was actually stationed basically a mile away from the location. And so, I was like, "Brother, this is what I need from you." I'm like, "I'm going to send you the paperwork. I want you to come a part of my company." And he was like, "Oh, I didn't even know you had a company." >> [snorts] >> I was like, "Yeah, it it it works fast." >> [laughter] >> And so, And so, after that, um I hired him as my project manager. Um as And it's crazy cuz as I was flying in, I was creating business card templates as I was on on the flight. And as soon as I touched down, we stopped past uh Office Office Depot and actually printed out cards so that as soon as I get there, I can present them with the cards as well. It was a blessing for me to even get the contract, but then it was even a bigger blessing for me to have somebody so close, especially when I was a I'm I I don't think I was going to lose the contract, but the COR was like, "You're in Hawaii. How are you going to do this?" And so, that that kind of put them at ease with them knowing that I had somebody already on the ground. This contract was actually it was only a a year contract. It was only supposed to be a year, but it actually went for a year and a half. And so, then after that, I was could have resubmit a bid for that contract, >> Mhm. >> but the the second contract that I got on was actually a little bigger, and I wanted to concentrate all my attention on that contract. >> Mhm. >> And so, that's the reason I So, one thing with the with laundry service and dry cleaning services, every base has like the main dry cleaning services that they offer to their patrons that's on the base. >> Okay. >> you do is you can go drop your own forms, you can actually drop your wedding clothes off, too. And we have to charge them a certain price. >> Mhm. >> So, for me, they actually had separate other than the actual main base, they had separate for the Blue Angels uh laundry. And so, because they was always on the on the go, and they needed to have their uh flight suits and everything looking good, um they hired somebody for that. And so, that's what I submitted my first bid on. Well, and and it's kind of funny because when I'm when I'm at work, nobody really knows that I have my own company because I'm at work. Um, and then when I actually start talking to them about it and they'd be like, "So, how do you how can you do it? You're still full-time military." Like I told them, "Some some nights I'll sleep this nights." Uh, especially when you got something. And so, and that's the main reason cuz the field that I'm working in, that's the main reason I didn't do the field that I'm working in currently because like I didn't want to have that conflict of interest. And so, that's what And then, like I said, when I looked at the market, I knew that laundry services and dry cleaning services is something that's not going away. And so, I was like, "This can be a good hold off until I start doing my next my next journey." And so, I I was like, "Once I retire, then that's when I can actually start doing what I'm doing now." It It sounds like it's something so easy and simple, but honestly, like you have to find especially the way I took it cuz I don't have my own physical facility. >> Mhm. >> I had to First off, I got to trust now that the person I'm that I'm subcontracting and partnering with that they can cuz basically they represent my company now. Because this contract belongs to me. And so, if they do something wrong now, it falls on my shoulders. And so, what I did was I flew in or made First, I made preliminary calls. >> Okay. >> And even the the guy for the the guy that I actually chose for my subcontractor, he was like, "Oh, it's really you." I was cuz he didn't believe he thought I was a scam cuz he was like, "808 number, I I thought that was a bill collector or something." And he was like, "I didn't think you were flying in here." And so, when I actually flew in, it's like then it was like that shock value, like, "Oh, this guy was for serious. He was for real." And so, for that, I think that's what usually happens before me, especially when it comes down to like I like I try to do all my market research prior. >> Okay. >> Before I even touch down because I want to know who I need to actually physically go see or do I need to make alternate plans to see another person. And so when when I So the same thing I did in Florida, I made calls and finally I found somebody. And then for San Diego, I did the same thing. I I made preliminary calls and then when I got down I did the walk-through and I went straight to the subcontractors location and started talking to business with them. Just >> Why did you do the sources sought? What was the the thought process behind it? >> I don't know if it was Eric or somebody else I was following. They was saying that once you put your your business name out there, a lot of companies actually hold on to that and actually I'm not going to say they give you preference, but they show that you're more dedicated than the others. So after going back and forth I sent a sources sought for the base in San Diego and then that's when they released the solicitation around 2 weeks after that. And so I did the solicitation and everything. I was like, okay, maybe maybe this is a good one. So [laughter] when I did that, then I lost out on that one. And so I was like, oh man, but it's okay. But then 2 weeks later the COR sent me an email. I was like, hey, are you still interested in this? The contractor the vendor it fell through and so now we're putting it back out. It was awarded already given away. I was like, okay, next put you in my archive. Now it's time for me to turn my sights to something else. That's basically what I was doing. When it came through, I was like somebody playing a joke on me? >> [laughter] >> Yeah, that's basically what I thought cuz I'm like like I said, I'm still fairly new. I'm only 6 months into this government contracting game. And that's why I was like, man, should I respond? Is this real? And so finally I responded to her and then she actually called me. And I I was talking to her and I was like, is this legit? And then so she started going over some [laughter] some stuff about the contract and was like, hey, but you got to make sure you have somebody on site throughout the operational day. She she started breaking stuff down to me and I was like, "Is this saying that I got this contract?" Like, as we was talking, I was like, "Is this Like, hold on." She was like, "Well, I'm going to after I get off the phone with you, I'm going to send you a few more emails. I need you to sign it and send it back to me." "Okay." She was like, "But, are you sure you understand that you got to have people on site?" I was like, "Okay." And so, I went back, I read back through the whole solicitation, and then that's when I was like, "Oh, they actually gave me a building." So, they gave me a building, they they gave me everything, basically a storefront, um to run the dry cleaners for them. And so, I was like, "Oh, wow. Okay." And then so, that's when I was like I stopped That's when I started going through my process, my Rolodex. Who do I know in San Diego, California? Hold on, let me find some people >> [laughter] >> because the the military net is very wide. And so, I was like, "I know people." And then so, as soon as as soon as I got off the phone and started looking, I started talking to people and luckily, found some somebody to be my project manager first. I was like, "Hey, we got to you know, so once they actually she actually sent me the congratulations and was like, "Hey, but I need to see you in 2 days so we can do a walk-through." And this was Monday evening. And I was like, "2 days? I'm in the military, I got to uh I was like, I got to get get it approved and everything." But, so my command team, they they they knew about what I was doing and so I I I told them I was like, "Hey, I just got this contract and this is what it's for and they was like, 'Oh, man, that's awesome. Da da da da da. What you need from us?'" They was like, "What you need from us?" And I and I told them and I was like, "Yeah, I just need to right now and I'm I'm just going off of what happened last time. So, I need around 2 and a 2 to 2 and 1/2 weeks." And they was like, "No problem, you got the leave so go ahead, just submit it." >> [laughter] >> And so, that's what happened. So, after I got it approved, I booked my flight the next day and I flew in. And and I [snorts] can't make this up, I literally flew in, got off the plane, picked up my rental car, drove straight to the meeting. As I met my project manager, we went into the meeting together. >> [laughter] >> It's like I always got to constantly keep moving and keep redefining myself um because I want I want to make sure that I'm showing my kids that no matter what they're doing, you always never give up on anything and always keep pushing um because guess what? Money never sleeps and granted you have to take a rest on that, but [laughter] you got to keep moving, too. And never never let somebody telling you no define you moving forward. And that's one of the biggest things. I'm I feel like I'm a blessing to others now because now I can share my story um because like especially with the military folks like I let them know that you can be successful and run a business and still be active duty military because so many of them feel like, "Oh, I can't do it because of my schedule." No, you can do it. It all depends on what you want to do and how you want to do it um because I'm I'm a prime example and and like when I actually shared to them that I I own a business, they're like, "What? How?" And that's when I break it down to them. Some days I wake up at 2:00 in the morning because things happen on the East Coast. So, because of that, then after that I take a nap and then get ready for work. >> [laughter] >> But you you still have to you have to know your why and why you're doing it because some days it's going to be a thankless job, but at the end of the day as long as you're moving and have everything successful, hey, you can just sit back and all I got to do today is click on approve the payroll and that's it. And that's why I thought I wasn't going to be able to get the first contract cuz I was like, "I don't have anything." >> [laughter] >> You know, like I I literally only thing I had my was my letterhead [snorts] and past performance and nothing significant uh so far. And that's all I had and so I was like, "I'm not going to get no contracts off this." But they took they went out on a limb and I got the contract and then now that I got that contract, then I got the second contract. So now that I have past performance history now. >> What has been the biggest lesson so far? >> I think the biggest lesson for me has been just not just not letting somebody say no to you and that deter deter you from your mission. Because like I said I received several different knows but at the end of the day I didn't let it define me and stop me because like you said I knew my why and and my why was showing my kids that no matter what happens you can continue to persevere through it. And I think once you actually get that and define your why it's going to be a lot easier for you to move forward and keep pushing. >> Being that you didn't start off as a business entrepreneur mindset and you just got threw yourself into having a business of your own, what is an advice you give to somebody that's starting their business from just the ground? >> So I I say when you first starting your business make sure you do your research because I think that that's one thing that kind of helped me a [clears throat] little bit because I had people in my corner like like I said my business mentor he was giving free Facebook classes and then after that then my buddy at work Paul he actually planted a seed for me and talking to me about the DUNS and the cage code and then from there that's when I was able to go and do my own research and then like I said I stumbled across Eric's videos from there. And so my biggest thing is just go through and do your research and once you do your research make sure you have all your ducks in a row before you actually take that leap and then don't be don't be afraid to make that leap of faith because either you're going to fall or you're going to learn. And so I looked at it as if I fell on my face I'm going to learn from it and keep it moving from there and just add another tool to my tool bag of life lessons. Yeah and I I think like I tell some of my soldiers it's like you you're going to always make time for what's what's good for you. And when you make time for it that's that shows that you're you're committed to it. And once you actually commit to something especially something that's has your name on it, you you fully probably committed now. You you have to go forward cuz if it falls down, your name like now your name's going to be down the drain if you let it falter and who knows when you're going to get another contract because oh, now the government don't want to work for you no more. So, you can you you got to be smart about it. And so, that's my biggest thing is not tarnishing my name and making sure I put my best foot forward at all times. And I think with me having that mindset, I think that's what's helping me continue to move forward especially with getting several other contracts and hopefully the Lord continue to bless me with more contracts and keep moving there. And don't be afraid to jump out there with those sources sought because those sources sought, like I said, I benefited not once but twice off a sources sought. And that's just because simple fact I heard somebody say, "Hey, just do it." You know what I'm saying? You never know. It's not going to hurt you. And never know what other business that they can bring to you. And Eric is so right because that's what happened. Like my name is there with them now because of the sources sought that I put out there. And because I was working with them the first time, they kept me in mind the second time. And so, little things like that, it goes a long way especially in this government game. And especially if if you provide a good service the first time, they don't keep you in mind. So, just stay just stay humble and keep persevering through all the hard times because you're you're going to see a more hard times than you're going to see the good. Um so, just keep keep going through it because like I said, I saw 30 no's before I saw two yes's. But that didn't I I I didn't let that stop me because I knew my why and what I was trying to teach my kids. >> All right, James. Thank you so much for coming on here and sharing your story with all of us. It is I truly appreciate everything. >> I definitely appreciate the invite. Like I said, it's it's definitely a blessing to be able to share with everybody. And I'm definitely glad you guys gave me that opportunity.