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.
Read the full video transcript
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.