Understanding The Marketplace
It might initially feel like working for the government is unpredictable. Contractors can be affected by various factors, such as budget cuts, regulatory pressures, changes in administration, and stringent accounting rules.
However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to ensure that they have a deep understanding of the end buyer and why they want to use its products and services.
This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee the federal government as a solid client that can assure your business of a bright future.
The Federal Government Offers Great Opportunities For Many Types Of Businesses
The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts.
How Do I Know Government Contracting Is Right for My Company?
There needs to be more certainty in business. A powerful client known for paying its bills on time, like our Federal Government, is a great asset.
Also, many of your competitors might dismiss being a government contractor as too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage to get ahead and obtain some very lucrative contracts.
Cloud Computing
More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies rely on cloud computing to maintain multiple copies of the data to mitigate security threats, data loss, and data breaches.
The government is no exception. They understand that cloud computing will lower costs significantly and help them manage their data more efficiently. Small businesses that understand cloud computing should be in a very good position to cash in on this new wave of data management architecture.
Cyber Security
As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefield. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines.
Cybersecurity will also be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand.
The Department Of Health And Human Services
The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19.
This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get its foot in the door with many other types of government agencies.
Department of Energy
The Department of Energy defines its mission as “…. to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.”
The Department of Energy has a network of 36 Facility Management Contracts. They include the following:
- Office of Energy Efficiency and Renewable Energy
- Office of Environmental Management
- Office of Fossil Energy
- Office of Nuclear Energy
- Office of Science
- National Nuclear Security Administration
This provides many opportunities for contractors that have energy management capabilities and supplies.
Reforms In Security Clearances
There will be a complete overhaul of the Department of Defense’s clearance process, which will affect all government agencies in 2021.
Government contractors need to be able to pass several security clearances. A background check on your company and employees is often a condition of employment.
This will include the following:
- Employment
- Education
- Criminal Records
- Credit History
- Motor Vehicles and License Records
You should ensure that all your personnel and employees pass this intensive screening. If there are any issues, ensure the government is aware of them ahead of time so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts.
Blockchain
Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks, are added. All the blocks contain timestamp information linking them to previous blocks, thus creating a chain. This allows for no data block to be altered without altering all the blocks that came before it.
The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016, and it should be a very lucrative avenue for many small businesses.
Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security to develop new technologies to address upcoming threats. In 2020, small business contractors can use Innovation OTS to form government partnerships and provide innovative technologies.
Government Contracts Can Be Very Lucrative For Small Businesses
The United States government issues 500 billion dollars in federal contracts every year. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find winning government contracts daunting and give up before even trying.
To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.
Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses. These blogs will help give you all the information you need to understand how we can help make the process easy for you. Sam Directory will happily guide you through this often confusing process.
Sam Directory will guide you through writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract.