How To Obtain Your First Federal Contract- Part 1

Can a Small Business really hope to compete for federal government contracts? The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses. In 2018 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year. The following facts are also very enlightening: In FY18, the federal government exceeded the service-disabled-veteran-owned small business and small disadvantaged business goals and the prime contract dollar awards in all small business categories increased from previous years. The federal government also exceeded its subcontract goals for awards to small businesses and women-owned small businesses and awarded more than $79 billion in subcontracts to all small businesses. Register For SAM SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor. What do I need to register for the Sam Directory? You will need the following : A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. What is a DUNS Number? The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number as a social security number for your business. Any contracting opportunity in the System for Award Management (SAM) will require a DUNS number to apply. What is the difference between a DUNS number and a Federal Tax ID number? A DUNS number is used for business credit reporting purposes, whereas an EIN is issued by the IRS and used for tax identification purposes. Are there any other advantages to registering for the SAM Directory besides government contracting opportunities? A business has to be registered with SAM before they can begin to apply for valuable federal grants. What is a Federal Grant? A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). The following are the steps to apply for a grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov Is there any other information that I should be aware of to take full advantage of what is offered by registering for the SAM Directory? It is important that a business understands the government classification system which includes the following codes: NAICS PSC FSC What is a NAICS number? NAICS is a six-digit code that stands for the North American Industry Classification System. Many federal agencies post contracting opportunities using the NAICS codes. The NAICS is used as an internal reference that quickly describes what a business does. You want to make sure you have the correct NAICS number to qualify for as many contracting opportunities as possible. What is the PSC number? PSC stands for Product Service Code and is primarily used by the Federal Procurement Data System (FPDS) and the General Services Administration (GSA).  They are used to describe the types of products, services, and research and development purchased by the federal government. What is an FSC Code? Federal Supply Class (FSC) codes are four-digit codes that are used to group products into logical families for supply management purposes. These codes are also used to classify government standards documents into categories, to help manage them more easily. FSC codes are grouped by Federal Supply Group (FSG) numbers. Make Sure You Have Your CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM. What can I do to make registering for the SAM directory as easy as possible? All this information can at first seem quite daunting at first. We understand that as a small business owner, you have a million things to accomplish on any given day. However, you also do not want to miss out on the honey hole of opportunities provided by the federal government. It is important that you get registered into the SAM directory as quickly and efficiently as possible. That is why it is a great idea to go to sam.directory. They understand the importance of proper SAM registration and take this confusing process off your hands completely. This website can make sure you are registered in as little as two days. If you still have questions, sam.directory will be more than happy to guide you through this often bewildering maze of registration. The consultation is free and you really have nothing to lose. Remember, registering for the SAM directory gives automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can… Continue reading How To Obtain Your First Federal Contract- Part 1

Government Contracting Strategies For Small Businesses – Part 1

Be Prepared For Dynamic Changes We can all agree that 2020 was a year of unprecedented changes. The good news is that the  United States Government will be marching forward and this means that government contractors will always be in high demand. However, there are going to be certain rules and regulations that are going to be altered in the coming year, due to the new situations and challenges facing the nation. Be Strategic In Which Agencies That You Target Covid-19 had not had a major impact on government spending. In 2020, there have been over 1.55 trillion dollars spent on just Covid response efforts. This increase in spending has actually made the budgets for 2021 higher for several agencies. The Department of Defense has increased its budget by 800 million dollars when compared to 2020. NASA has requested a 12 percent increase in its agency funding and the Veteran Administration agencies have asked for 14 percent more money in 2021. It is a great idea to strategically target agencies that are experiencing this type of budget boom in order to secure government contracts. Streamlining and Modernizing Information Technology Did you know that the Internal Revenue Service, the Veteran’s Affairs Department, Defense Department, and the Transportation Department are operating on computer systems that are over 50 years old? Some are still using 1970 IBM mainframe computers that store information on floppy disks! This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized that 100 hundred million dollars be allocated to modernizing the federal government Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act also then added billions of dollars to upgrade the government’s I.T. systems and update infrastructure. So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2020 and beyond. There Will Be An Increase In IT Spending The demand for information technology services in the federal government has created ample opportunities for companies in this field. More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies are relying on cloud computing to maintain multiple copies of the data to mitigate instances of security threats, data loss, and data breach. 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 how to utilize cloud computing should be in a very good position to cash in on this new wave of data management architecture. Cyber Security Will Also Be A Lucrative Field As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. It is very important for the government 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 is also going to 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. 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 to it. All the blocks contain timestamp information linking it to previous blocks, thus creating a chain. This allows for no data block to be altered without the alteration of 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 developing new technologies to address upcoming threats. In 2020,  small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies. Narrow In On The Customer’s Needs At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Make Sure You Get A CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM. How Do You Get Started Working With The Government? SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to… Continue reading Government Contracting Strategies For Small Businesses – Part 1

How To Master Government Presentations For Small Businesses

Remember Registration With The SAM Directory Is The Vital First Step SAM stands for System Award Management. 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 SAM.  Sam Directory will help guide you through this process so you can spend your time preparing to win these lucrative government contracts. Please read one of the helpful blog articles on our site like 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 very easy for you. Convey What Makes You Stand Out From The Crowd You should also include what makes you unique from your competitors. Make sure you do not mention your competition by name or say negative things about them in general. Being classy is always a great way to make a good first impression. Instead, you should focus on what makes you different and how the agency can benefit from your particular company. It also makes the listener aware that you have knowledge of the industry and makes you less likely to be caught off guard by industry-related questions. Networking Is Always Important Sometimes the hardest step is getting your foot in the door. Networking is extremely important when trying to secure government contracts. An organization that hosts networking and training events throughout the year both nationally and locally is the Small Business Administration (SBA). These events are usually no cost to business owners and can offer a treasure trove of information about how to obtain contracts from various agencies.  Remember To Be Clear And Concise Do not spend too much time trying to explain complex terminology that is very industry-specific. The elevator pitch should be so simple that any random person of the street can understand exactly what you are trying to convey. This is important because it makes sure that you keep the attention of the listener, no matter what their level of expertise. Practice Makes Perfect Now that you have a short clear and concise message, it is time to practice in front of the mirror. Many people find talking to themselves in front of a mirror to be silly and unpleasant. However, this is the best way to really learn your elevator pitch until it becomes second nature. It will help you with things like smiling at the right moment and making pleasant eye contact.  Practice until you totally eliminate awkwardness and the words like “umm” from the elevator pitch. Make sure that you speak with enthusiasm in your voice. You want to make sure the listener understands the passion you feel for your business and make it sound very natural and organic. Be Prepared To Give An Oral Presentation Oral presentations are very common for companies who want to work for the United States government. This is not going to be your typical audience. You might not get the greeting and niceties that usually come with this type of business meeting. The government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period. The Three Steps All federal government presentations have three distinct informational phases:  The people who will work on the project The project’s management The company’s problem-solving abilities. People The first phase is when you will talk about the team that will be working on the project. You need to mention the key hands-on personnel who will be directly involved and working with the government. This is not the time to just name off people and recite their resumes. You have already listed each person’s qualifications, background, education, and experience in the written proposal. Now your company needs to give the federal government true insight into the people who are going to be performing essential tasks. Have the key team members speak for themselves. Let the government get to really know about how passionate and motivated your people are to win this particular contract. This is the time to bring up any special skills or experience that can not be easily gleaned from a piece of paper. Many companies that present orals to the federal government never go beyond what they supplied in the written proposal, which is a great way to be forgotten. Project Management It is important to highlight these considerations into the next phase: How is your organization set up?  How are you set up to handle problems?  Who are the players who handle problems?  How does your organization fit together? How do you draw on other strategic alliances or subcontractors?  How does everyone, internally and externally, work together?  What are some of your established processes?  Tell them how you handled similar projects. This is where you explain how your past experiences have prepared you for success in the present circumstances. Do not present this material in a manner that could be boring or humdrum. Your company really needs to exude excitement about the organization and show your passion for the project. You need to talk about not only each individual’s commitment to the project but also how the organization as a whole and the management team is committed to ensuring the highest quality of performance. Problem Solving This is the most important phase of the whole presentation and the place where organizations often lose the most points. The problem-solving phase will consist of the federal government will present you with a possible problem, give you some time to discuss the problem, and ask questions, and then they’ll watch how you solve the problem. You should realize that the federal government doesn’t care what your final solution is; they care about your approach to the problem. They’re watching how you solve problems and how you work together as a team. You should practice problems… Continue reading How To Master Government Presentations For Small Businesses

Which is the best business for you, corporation or LLC?

The most important decision when starting a business is deciding what type of business entity best suits your needs. The business entity you choose can have serious consequences regarding liability and taxation. This article will help you better understand your options by comparing two of the most popular choices. What is a business entity? One or more natural persons create a business entity to carry on a trade or business. Business owners often favor corporations and LLCs because they offer several layers of protection for their owners. The following are types of business entities: Limited liability company: A registered business with limited liability for all members Professional limited liability company: An LLC structure for professionals, such as doctors and accountants C-corporation: An incorporated business composed of shareholders, directors, and officers S-corporation: An incorporated business that is taxed as a pass-through entity Professional corporation: A corporate structure for professionals, such as doctors and accountants B-corporation: A for-profit corporation that is certified for meeting social and environmental standards Nonprofit: Corporations: A formed primarily to benefit the public interest rather than earn a profit. What is personal liability? Personal liability means that your personal assets will be exposed if one of your co-owners or employees commits an unlawful action that injures someone, such as writing a defamatory article or post. If there is a judgment against your company, it can be satisfied by reaching into your bank account, home, or automobile simply because of your status as an owner of the company. You also need to be aware of different taxation among different business entities. Business entities have a great effect on government taxation. Before we get to corporations and limited liability companies, let’s talk about some other business entity options which include: Sole proprietorship: A business that is unincorporated with one owner or jointly owned by a married couple General partnership: A business that is unincorporated with two or more owners Limited partnership: A business that is registered and composed of active, general partners and passive, limited partners Sole Proprietorship If your company is going to be fairly small a sole proprietorship might be the right business entity for your needs. You, as the owner, will be in control of all day to day decisions and profits. The greatest disadvantage of a sole proprietorship is that there is unlimited liability. The owner will be personally responsible for business debts and losses. This is great for the type of person who truly enjoys independence and wants to make their own rules without answering to others. You are your company and are okay with there being no formal division. The business and the owner are legally the same. From the IRS’s perspective, the business is not a taxable entity. The company assets and liabilities belong directly to the company owner. Partnerships A partnership is similar to a sole proprietorship except that there is more than one individual that owns the business. The liability of the partners for the debts of the company is unlimited and this means that each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts of the business. If you are someone who enjoys working with a team and does not want to shoulder all the responsibility for the company yourself, a partnership might work for you. If you have the right blend of personalities you can complement each other quite well and be stronger than any of the partners could ever be on their own. As with sole proprietorships, the business and the owners (two or more) are legally the same. A partnership is not a taxable entity under federal law. Limited Partnership A limited partnership contains two distinct types of partners: General Partners Limited Partners The general partners run the day to day activities of the business. The general partners are also personally liable for a business’s debts and liabilities. The limited partners do not have much to do with the way a company is run. They have limited liability concerning a business’s debts and they usually pay fewer taxes regarding the profit. These are silent investors who bring in money but do not run the business. If you want to retain primary authority in your organization but definitely could use some other sources of cash than a limited partnership would be a great compromise. C-Corporation C-corporation (c-corp) are separate entities from their owners. A c-corp consists of shareholders (the owners), a board of directors, and officers who have control over the corporation. One person can fulfill all these functions. The great advantage of a c-corp is that the owner/owners are not personally liable for the debts and liabilities of the company. The disadvantage is that there is double taxation on profits. The government will tax the corporation as a separate entity. You should think of the corporation as a fake person in the eyes of the Internal Revenue Service. This is a great model for those who really want to start a company that is quite large in scope and size. However, you will be answerable to your shareholders for good and bad outcomes of your business decisions. S-Corporation If your corporation has fewer than 100 shareholders who are all individuals, not corporations; have only one class of stock, and be owned by U.S. citizens or resident aliens you could turn your business into an S-Corporation (s-corp). An s corp is not subject to double taxation as a c corp is. An s corp’s revenue is not taxed at the corporate level. It is only taxed when paying out as salaries or dividends to shareholders. An s-corp is often a better choice than a c-corp for most small businesses. It should also be noted that corporations have a lot of regulations regarding paperwork and documentation. This is not an entity for you if you want to be footloose and fancy-free. Limited Liability Company (LLC)… Continue reading Which is the best business for you, corporation or LLC?

Recommendations On How To Work With The Government

Being a government contractor can be extremely lucrative. However, you should have a strong understanding of government procedures and processes. We will name some things that all contractors should be aware of in order to be successful.  Contracting Officers  The Federal Government always conducts any kind of procurement business through contracting officers. These contracting officers have the authority to bind the government to a contract unless it is otherwise stated in writing. Make sure that the person you are dealing with is the contracting officer who is authorized to represent the agency or office that is going to award the contract.  Procurement  Government procurement has always been a part of advancing many national, economic, and social objectives. Government contractors must comply with the rules and regulations of labor standard statutes. This will include the Service Contract Act, Contract Work Hours and Safety Standards Act, and other statutory requirements that further socio-economic objectives, except for certain contracts where such legislation is specifically stated as non-applicable.  Kick Backs  You should be very careful not to do anything that might violate the integrity of the government process. These provisions include the “officials not to benefit” clause, the “anti-kickback” provisions, the “gratuities” clause, etc.  Disputes  There is always the possibility that you might have a dispute with the contracting officer. Many Federal contracts have clauses specifically setting forth provisions on how to resolve disputes. If you are unsatisfied with a decision made by the contracting officer you must be aware of the time limits on appeals before the decision is final. Appeals are heard by the Board of Contracts Appeal.  Follow Specifications  Contracting with the Federal government is not the proper moment to reinvent the wheel. Follow all specifications and measurements that were originally agreed upon in the contract. If you do something different, it may be too big or too heavy or may not fit and the government will not accept it. Simply comply with the contract terms, particularly the specifications.  Productions Schedules  In a production contract with the government, make sure that a production control schedule is established quite early. This will make sure that you always have the right materials in-house in order to meet delivery deadlines.  Subcontractors  If you are dealing with subcontractors, make sure that communications are clear and that they are prepared to perform or deliver on time. If there is an issue, notify the contracting officer as soon as possible to obtain some assistance. You do not want to miss your deadlines which will result in the government canceling your contract.  Be Savvy In E-Commerce and Marketing  Make sure you are up to date on all the latest technologies and software. For certain government agencies, you must be able to invoice and receive payments electronically. Also, make sure that you register on SBA’s PRO-Net database and contact the agency’s office of small and disadvantaged business utilization (OSDBU). This will give you an advantage when trying to market your business to the Federal Government.  Have A Clear Understanding Of The Government’s Accounting Requirements  The Financial Accounting Standards Board (FASB) states that contractors must comply with the following in order to work with the government:  Federal Acquisition Regulations (FAR)  Cost Accounting Standards  FAR agency supplements  Understanding Audits  Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following:  timeliness of payments to subcontractors  documentation of contractor oversight of subcontractors  documentation of enforcement of flow downs  documentation of support for subcontractor billings  documentation of subcontractor reviews  Understand That Change Is Constant  Agencies are only allotted a certain amount of money through government funding. Changes in the administration can bring a total overhaul in what is a priority in comparison to previous years.   Many people think that governments are slow to change. However, as the world becomes more complex, a contractor needs to keep pace with the changing federal marketplace. It is extremely important for agencies to be transparent about their finances. Contractors must be strategic in anticipating and implementing modifications to any policies, procedures, and systems that support compliance, in order to maintain pace with changing requirements for their companies in regards to being a federal contractor.  The Key To Winning A Government Contract Is To Pay Attention To Guidelines  It is very important that you read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.   Make Sure You Have Your CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  Never Underestimate The Power Of Research.  Do your research. Make sure you understand what agencies will benefit most from your business. Make sure that you read our blog on how to put together a well thought out proposal when you bid for government contracts. The government can be a great source of revenue and security for any small business and we would love to help you succeed down this very lucrative path to prosperity.  How Do You Get Started Working With The Government?  SAM stands for System Award Management.  In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.  We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process.  As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking… Continue reading Recommendations On How To Work With The Government

Diversity In Government Contracting

Small Businesses Are Given Special Consideration When It Comes To Government Contracts  In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid.  The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards.  What Qualifies As A Small Business?  In order to be considered a small business, a company has to meet the following requirements:  A business must meet small business size standards.  Part of a business must be within the U.S.  A business must operate mainly within the U.S. or make a significant contribution to the U.S. economy through the payment of taxes or the use of American products, materials, or labor.  A business must be independently owned and operated.  A business cannot be dominant in its field on a national basis.  The first thing a small business must do in order to qualify for government contracts is to register with the SAM Directory.    Minority-Owned Business Status  Five percent of the Federal government contracts are supposed to be awarded to members of an economically or socially disadvantaged group. This allows minority groups to remain competitive in the government market.  Under the Small Business Act, certain individuals are presumed socially disadvantaged:   African-Americans  Hispanic Americans,  Asian Pacific Americans  Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians)  Subcontinent Asian Americans.  An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows – through a “preponderance of the evidence” – that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes.  Additional Requirements  In addition, the business must show economic disadvantage by submitting a narrative and personal financial documentation about the company’s income, assets, and net worth.  Generally, successful applicants must also meet the following additional requirements:  The business must be small according to the Size standards for small business concerns;  The business must demonstrate a potential for success (generally by being in business for, at least, two years);  The business must be unconditionally owned and controlled by  by one or more disadvantaged individuals who  are US citizens and who are of good character.;  Registering For Minority Certification  In order to qualify for the five percent of the contracts that are reserved for minority-owned or disadvantaged businesses, one must be certified by the government. This means that a business is giving up on 24 billion dollars worth of revenue by not registering.  Registering also has other advantages. The SBA offers specialized training programs and mentoring to registered organizations, free of charge. You also get admitted to opportunity fairs and networking events through the National Minority Supplier Development Council.  Prior to applying for the 8(a) Program, each firm is urged to take an on-line training and self-evaluation course that can be found here at the 8(a) Business Development Suitability Tool.  The first section of the on-line course explains the 8(a) Program intimately. It culminates in an eligibility self-assessment test. The test consists of a series of straightforward yes/no questions that evaluate the degree to which your firm meets the essential qualifications for the 8(a) Program.  If key eligibility criteria are not met, you will be directed to the SBA resource deemed most appropriate to help you at this time.  Does Your Company Qualify As A Veteran Owned Business?  In order to qualify for these set-asides a business must have the following:  Meet small business size standard for primary NAICS code and contract  At least 51% unconditionally and directly owned by veterans who are U.S. citizens*  The veterans must manage the day-to-day operations  The veterans must make long-term decisions for the business  A veteran must hold the highest officer position  The veterans  must work at the business full-time during normal working hours  How Do You Prove That You Are A Veteran?  You will need to have a Department of Defense Form 214 (DD 214), which is a document that is issued when a military service member retires, separates, or is discharged from the military.   You will need a letter from the United States Department of Veteran Affairs stating you are service-disabled if you also intend to apply for service disables status. The VA benefits office can help you if you need to replace a lost disability status letter.  Registering with the VA  You will want your company to get certified as a veteran-owned business. This means that you should register with the VA because it is the only government agency with a formal verification process.  The VA actually has a number of contracts in which priority is given to service-disabled veterans and then to veterans. This is particularly important for nondisabled veterans, who do not get set-asides with the federal government. In short, registering with the VA increases the chances of a non service disabled veteran winning a contract.  How Do You Register?  The first step of getting certified is registering with VetBiz Registry. This is a veteran’s business database. You can also go to the Center for Veterans Enterprise which provides the registry and also includes step-by-step instructions on applying for VA Certification. Remember to have your DD 214 form handy.  You should also have the following:  Partnership Agreements  Corporate Charters  Organizational Charters   Board of Directors  Mission Statements  Inventory  Service Providers  Bank Statements  Tax Information  Some businesses can also be subject to onsite visits that can sometimes be unannounced.  What Is The SAM Directory?  SAM stands for System Award Management.  In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.  We have an article on our site, Everything You Need to Know About SAM for… Continue reading Diversity In Government Contracting

Why Your Business Should Register For SAM In 2021

2020 Was Quite Unpredictable  The past year was certainly quite a ride. Many businesses had to suffer some very unexpected hard times. This type of roller coaster marketplace is one of the reasons that registering for the SAM directory in 2021 is a very smart move.  The Coronavirus has changed almost every aspect of life in the United States and around the world. Government contractors are facing some very unique challenges as they try to adjust to this ever-changing course of events. As we are in the midst of another lockdown, federal contractors can expect to find work providing valuable services.  This puts federal contractors in a very advantageous situation. Sure, there definitely have been some closures and work stoppages but there are some contractors that are still vitally needed during the pandemic.   Government Contracts Offer Security In These Uncertain Times.  Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many struggling businesses who are trying to survive this unprecedented situation.  You should remember that government agencies are in need of goods and services in a year-round capacity. This makes them one of the few consumers that are actually recession-proof and a great source of steady reliable income.  Understanding The Marketplace  It might at first feel like working for the government is very unpredictable. Contractors can be affected by a variety of factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules.  However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use their products and services.  This is also true for the United States Government. You will need to develop relationships and cultivate a trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee you the federal government as a solid client that can assure your business of a bright future.  The United States Government Is A Very Powerful Client With Deep Pockets  The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout.  The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace.  Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly.  Small Businesses Are Given Special Consideration When It Comes To Government Contracts  In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid.  The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards.  The Federal Government Offers Great Opportunities For Many Types Of Businesses  The government actually 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 for underserved groups to have a real chance to get awarded lucrative government contracts.  However, it is important to be aware of certain elements of government contracting culture in order to be more effective and get more contracting opportunities.  Are there any other advantages to registering for the SAM Directory besides government contracting opportunities?  A business has to be registered with SAM before they can begin to apply for valuable federal grants.  What is a Federal Grant?  A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).  How Do You Get Started Working With The Government?  SAM stands for System Award Management.  In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.  We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process.  As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor.  Registering With The SAM Directory Also Has Other Important Advantages  You must register with the SAM directory in order to apply for government grants.  A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).  A grant is different from a loan in that it is money that your business does not have to pay back. So, registering for the SAM directory actually gives you access to free money!  Never Underestimate The Power Of Research.  The business landscape has changed dramatically in the last decade. One thing that has always remained constant, the United States Federal Government is one the largest and most powerful consumers of goods and services in the whole world. Being a government contractor is a highly desired position for any business.  Do your research. Make sure you understand what agencies will benefit most from your business. The federal government had many types of agencies that vitally need to be supplied. Many government employees are essential workers and must continue working, no matter what the situation is… Continue reading Why Your Business Should Register For SAM In 2021

How To Get Government Construction Contracts Part- 2

Get The Bid Package  After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package.  After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements.  The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments.  What Type Of Contract Is Being Sought?  The three major contracts that are being sought are fixed price, cost-reimbursement, and special situation.  Fixed-Price Contracts  These government contracts are used when the scope of work is clear from the beginning and therefore a price is determined by the agency in advance. There are many different types of this particular contract.  Firm Fixed-Price (FFP)  This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, then the business will keep the extra profit. This is a great contract for companies that are precise with their pricing and a lot of experience in the field.  Fixed-Price with Award Fees  A fixed price with award fees contract offers a hard and fast price for objective performance success. This contract will also have additional awards to incentivize more subjective qualities like aesthetic appearance and technical knowledge.  Special Situation Contracts  These include:  Labor hour: Direct labor hours expended are reimbursed at a hard and fast hourly rate, usually including all costs and profits. (See FAR 16.602)  Definite-quantity: The contract quantity is defined, but the delivery schedule is flexible. Payment is on some sort of fixed-price basis. (See FAR 16.502)  Requirements: Actual delivery schedules and quantities are flexible during the contract period. Payment is based on a predetermined fixed-price basis. (See FAR 16.503)  Special Bidding Techniques and Bid Office Terminology  New Bidding Techniques  Auction — A government buying technique where the bidding continues until no competitor is willing to submit a far better (i.e., lower) bid. The technique is usually mentioned as “reverse auction” because the government is trying to find a rock bottom price, not the very best price.  It is important to do your research and make sure that you can cover your costs in an auction process. Do not get caught up in the excitement of the moment and make calm rational decisions.  Bundling — a way where the govt consolidates two or more requirements that were normally bought separately into one contract. The support contracts of the many military bases, which require a spread of labor disciplines to stay at the bottom operating, are being bid in this manner.  In bundling, make sure that you carefully read all the provisions. It is important to not ignore the project management aspect of this type of bidding.  The Bid  The Federal government has the following type of solicitations for bidding:  Request for Quotation (RFQ). This type is for contracts below $150,000 with a simplified acquisition procedure.  Request for Proposal (RFP). This type of solicitation asks vendors to make a proposal in response to the government request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that type of solicitation.  Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here.  Request for Information (RFI). This is mostly to research the market and evaluate the interest and capabilities of contractors in a specific niche.  Make sure you read the solicitation requirements carefully. A solicitation package will include, documents, technical conditions, attachments, and various other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill. As for required documents, they are listed in the solicitation  Contact your contracting officer if you have questions. It is important that you understand every single thing about the solicitation that you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements.  Be Precise And Follow Directions  Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies fail to follow basic directions. Be aware of deadlines and do not leave anything black when filling out forms. The request for proposals or RFPs has very specific instructions and you must take everything seriously. Just think of it like filing your income taxes and do not take any unnecessary shortcuts.  The First Step Is Registering With SAM  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 like 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 very easy for you. Sam Directory will happily guide you through this often confusing process.  What do I need to register for the Sam Directory?  You will need the following :  A Data Universal Numbering System or DUNS from Dun and Bradstreet  Your Tax Identification Number or TIN  A Social Security Number if you are a Sole Proprietor.  CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a… Continue reading How To Get Government Construction Contracts Part- 2

Federal Government Compliance For Small Businesses Part 1

Government Contracts Can Be Very Lucrative For Small Businesses  The United States government issues 500 billion dollars in federal contracts on a yearly basis. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.   Sam Directory will guide you through the process of writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract.  Understanding The Regulations  There are many advantages to being a successful government contractor. However, the government has stricter rules and regulations regarding accounting when compared to private sector clients. It is important to keep up with federal regulatory requirements.   Federal government agencies receive their funding from taxpayer dollars and they need to justify their spending in order to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business.  The Integrity Of The Procurement Process  It is essential that all bidders on government contracts have equal access to any information needed to put together a comprehensive bidding package. A company that is bidding on a federal contract may not receive information that is not public in order to provide an unfair competitive advantage in the field. This includes things like an innocent email accidentally going to the wrong person.  Contingent Fees  A government contractor is not allowed to enter into an agreement with a third party where the third party will pay a fee contingent on the successful winning of a federal contract. This is to make sure that contractors are not tempted to cut corners in order to be paid.  Bribes  The Federal Anti-Bribery Statute, 18 U.S.C. §201 states that a potential federal contractor is not allowed to directly or indirectly offer something of value to a public official in exchange for influence on a public act. Small businesses must be aware to not do anything that seems to be in violation of this statute as they can be in danger of facing criminal charges. Gifts that can be considered a bribe include entertainment, travel, meals, and invitations to certain types of conferences. Generally, gifts that are under $20 are okay but be careful of the implications that being too generous can cause.  Have A Clear Understanding Of The Government’s Accounting Requirements  The Financial Accounting Standards Board (FASB) states that contractors must comply with the following in order to work with the government:  Federal Acquisition Regulations (FAR)  Cost Accounting Standards  FAR agency supplements  Understanding Audits  Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following:  timeliness of payments to subcontractors  documentation of contractor oversight of subcontractors  documentation of enforcement of flow downs  documentation of support for subcontractor billings  documentation of subcontractor reviews  Surprise Audits  Government audits can occur without any type of advance notices. Contractors must always be prepared in order to receive a solid evaluation.   A surprise audit that reports non-compliance with federal accounting regulations can have a lot of negative consequences. This could include termination of the contract and payments can be withheld unless improvements are in place. This can be very time consuming and stressful. This can also severely affect opportunities for future business with the government.  Conflicts Of Interest  Subpart 9.5, organizational conflicts of interests (OCI) says the following:  The general rules in 9.505-1 through 9.505-4 prescribe limitations on contracting as the means of avoiding, neutralizing, or mitigating organizational conflicts of interest that might otherwise exist in the stated situations. Some illustrative examples are provided in 9.508. Conflicts may arise in situations not expressly covered in this section 9.505 or in the examples in 9.508. Each individual contracting situation should be examined on the basis of its particular facts and the nature of the proposed contract. The exercise of common sense, good judgment, and sound discretion is required in both the decision on whether a significant potential conflict exists and, if it does, the development of an appropriate means for resolving it. The two underlying principles are-        (a) Preventing the existence of conflicting roles that might bias a contractor’s judgment; and        (b) Preventing unfair competitive advantage. In addition to the other situations described in this subpart, an unfair competitive advantage exists where a contractor competing for the award of any Federal contract possesses-             (1) Proprietary information that was obtained from a Government official without proper authorization; or             (2) Source selection information (as defined in 2.101) that is relevant to the contract but is not available to all competitors and such information would assist that contractor in obtaining the contract.  A small business should be upfront about any situation that can cause a potential conflict of interests such as receiving sensitive information about the procurement in maybe an unrelated interview process.  Make Sure You Have Your CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  SAM Directory Can Help  Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential.  Let us, the professionals at SAM Directory, make sure that you do all that is needed to not miss out on this important opportunity. We will make certain that your application is processed quickly and efficiently so you can start being a federal contractor as soon as possible. We remove this hassle so you can go about the important mission of running your company. Stay tuned for the… Continue reading Federal Government Compliance For Small Businesses Part 1

Government Contracting Trends For Small Businesses In 2021

Just like every other industry, the pandemic has had a profound effect on the government contracting industry. However, government contracting still can promise a profitable future for small businesses. The Consolidated Appropriations Act, 2018 has provided a large amount of funding for many government programs, including the military. This allowed for $500 billion dollars to be used for new government spending, which is very good news for many private contractors that work for the federal government.  The United States Government Is A Very Powerful Client With Deep Pockets  The Federal government usually spends billions of dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout.  The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace.  Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly.  Small Businesses Are Given Special Consideration When It Comes To Government Contracts  In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid.  The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards.  Changes In Defining Small Businesses  In 2020 the Small Business Runway Extension Act allowed governments to calculate small businesses in a different way so many more companies could qualify for small business government contracts. This means more businesses than ever can be eligible for lucrative government set asides.  Reforms In Security Clearances  There will be a complete overhaul of the Department of Defense’s clearance process which will actually affect all government agencies in 2021.  It is important for government contractors 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 make sure that all your personnel and employees are able to pass this intensive screening. If there are any issues, make sure the government is made 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 to it. All the blocks contain timestamp information linking it to previous blocks, thus creating a chain. This allows for no data block to be altered without the alteration of 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 developing new technologies to address upcoming threats. In 2020,  small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies.  Cyber Security  As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. It is very important for the government 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 2021, which might see unprecedented dangers as new systems are being installed in several federal agencies.. Cybersecurity will be used to protect voter databases and voting machines.  Cybersecurity is also going to 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 their foot in the door with many other types of government agencies.  The Government Will Always March Forward  The Federal government will soon be back on track and in much need of goods and services provided by small businesses. Many agencies, such as the Department of Defense, are fully funded for the year. and will be moving forward with their contracts immediately.   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 like 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… Continue reading Government Contracting Trends For Small Businesses In 2021