Author: contact@sam.directory

So, How Does A Small Business Successfully Start Relationships With Key Government Contractors?  The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms that are commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows to better understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill.  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 contracts1 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.  A Fantastic Presentation Is The Key To Success  Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process.  You Still Need To Make Yourself Stand Out  The federal government will be watching many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. It is important that your presentation is unique and memorable in a positive way. Your company really needs to catch their attention.  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  Innovation Is Key  The government needs to be very careful about how they handle money that is provided by taxpayers. They are tasked with making sure that things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems.  The United States government is open to fresh perspectives and ideas that can streamline their systems or save them money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector.  Make Sure You Establish A Good Business Reputation  Try to establish a network of government contacts at various agencies. These contacts can often serve as invaluable advocates for your business. They can also give you advice on how to navigate the bidding process. After you receive awards, make sure you work hard to establish a track record of reliability and success.    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.  Think About Subcontracting  Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is actually answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Subcontracting has many advantages for less experienced businesses.  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  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 the SAM directory.  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… Continue reading How Small Business Can Break Into Federal Government Contracting

Simplified Procedures  In 1994 the Federal Acquisition Act or FASA simplified the buying procedures of the government.  Many of the more harsh restrictions on government purchases were removed for any purchase that was less than $100,000. Now agencies used much simpler procedures for analyzing and soliciting bids up to the $100,000 amount. However, the government is still required to advertise all purchases over $25,000 at www.fbo.gov.  These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are not as complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive on price and quality  Purchases that do not exceed $2,500 individually or through the combination of multiple items are considered micro-purchases. These do not require competitive quotes but are not limited to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards.  Bidding  The government usually makes sure contracts are competitive through the use of sealed bidding. First, the agency makes sure that its requirements are accurate and complete. Then an Invitation For Bid or IFB is issued. The IFB will describe the type of product or service that is being procured by the government. It also includes:  Preparation Instructions   Conditions of Purchase  Packaging   Delivery   shipping   The payment with contract clauses to be included  Submission Deadline  The sealed bids are opened in public at the purchasing office at the time designated in the invitation.  The bids are read aloud and then recorded. The contract will be rewarded to the bidder who has the most competitive pricing and can meet the government agency’s requirements.   Government-wide IFBs can be found at FedBizOpps which provides a direct link to the invitation. Potential contractors can search the Central Contractor Registration to identify qualified small business opportunities. Any small business that wants to sell to the government should be registered on CCR.  Consolidated Purchasing Programs  Just like any other organization, the federal government has common purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies.   For this reason, it made sense to centralize the purchasing of various types of common products and services.  Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts or GWACs. These types of contracts help obtain long term vendor agreements with fewer vendors. The GWACs have become very popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action from scratch. Agencies can now competitively award several or multiple task order contracts to different firms for the same products and services. This practice allows federal buyers to issue orders to anyone or a combination of several firms with relative ease.  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 within the System for Award Management (SAM) will require a DUNS number.  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.  Make Sure You Have The Right Staff  It is vitally important that government contractors have skilled accounting staff to ensure that the company is in compliance with all policy regulations. The company must have adequate policies and procedures in place for the prevention of mistakes, and especially for their timely discovery and correction. This helps cut down on exposure to accounting errors that jeopardize contractors, inaccurate data, incorrect data entry into the system, or errors in the performance of internal accounting processes.  Make Sure You Are Organized  Having solid financial records and a clear thought out process goes a long way to impress government agencies that you can handle the job. It presents a professional demeanor that is quite impressive.  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 Use Of Government-Provided Free Tools.  You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study the government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal.  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. 

The United States Government Want To Encourage the Success of Small Businesses  As we mentioned in the first part of this series, the federal government is required to set aside at least 23 percent of its total spending specifically for small businesses.  This includes contracts specifically 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.  It is smart to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to succeed in obtaining government contracts.  However, it is important for businesses to understand the various ways that contracts can be terminated. We want to make sure that you protect your business from unneeded risk and liability.  Contract Administration Issues  Federal contracts are different from the average commercial contracts. They have general contract provisions that are totally unique to the government.  These contract provisions include statutory or regulatory requirements that only apply to the federal government. They include the following:  Termination for default   Termination for convenience  Contract changes  Payments  Specifications  Inspection   Testing.   These matters are described in the Federal Acquisition Regulations. We covered termination for default and termination for convenience in the first part of our series. Now, we will continue to explain how you can protect your company from unnecessary risk and liability when contracting with the federal government.  Contract Changes  It is not uncommon for the needs of the government to change periodically. This means that government contracts contain a clause that authorizes the contracting officer to order change in the specifications and other terms of the contract. You will be required to perform the contract as it is unilaterally changed by the contracting authority. This type of change usually occurs in the scope of the contract itself. However, the government can not use this type of change to disrupt the general nature of the contract. You will be entitled to an equitable adjustment in price and delivery schedule if changes are ordered.  Payments  The government is obligated to make prompt payments for any products delivered or services rendered by the contractor on any type of procurement contract. Obviously, prompt payment is essential to the lifeblood of any small business. The contract that you sign will have very specific instructions for invoicing the office or agency that is administrating your contract. You must make sure that your payment process is accurate so that you can be paid as quickly as possible. This type of efficient payment benefits both the government and contractor. If the government does not provide prompt payment under certain circumstances, then you submit a request for interest payments under Public Law 97-177, Prompt Payment Act.  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. The method of payment can vary depending on the dollar value of the contract. Lump sums are usually paid out for relatively small contracts with a single item of work. Payment is usually made when the government accepts delivery. Progress payments based on the cost incurred may be available on larger contracts where the first delivery may be several months after the contract is signed.   However, since progress payments are given when the work is not completed, you must repay them if you fail to complete the work. The government protects its interest by taking title to your work-in-process for which progress payments have been made. To qualify for progress payments, you must have an accounting system that can accurately identify and segregate contract costs.  Specifications  The invitation for bids or requests for proposals will contain exact specifications for most of the products and services needed by the government. This precise language will also be included in your contract.  After you are awarded the contract, you are contractually obligated to deliver the product or services that are described in the specifications. Basic specifications can make reference to federal specifications. You will be bound by all the terms and conditions of the specifications and failure to deliver a product or service meeting these exacting terms can result in the termination of your contract by default.  Make sure that you never bid on a contract unless you have read and understood all the specifications required for performance. Make sure that you understand all that is required before signing the contract.  Inspection And Testing  In federal contracts, the government has the right to inspect and test the items you deliver to determine if they conform to contract requirements and specifications. The government does not have to accept a contractor’s product unless it passes inspection. The type and extent of inspection and testing depend largely on what is being procured.  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.  Remember SAM  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 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. With our help, you will be able to be… Continue reading Federal Contract Termination-Part 2

Being A Government Contractor Is A Great Way To Make Your Business Stand Out In An Overcrowded Field  Business can be very competitive. Working on government projects is a great way to make a mark in an oversaturated market. The government has a great deal of work specifically set aside for small businesses.  Also, many small businesses often do not want to deal with the hassle of working with the government, and sometimes there can be surprisingly little competition for a government project. That is why utilizing Sam Directory to handle all the confusing registration requirements is a very smart investment.   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.  Do Your Research  Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online.  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. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts:  Inquire about the vendor Outreach Sessions and when will they be held  Inquire how your company’s products/services could help with the agency’s missions  Request meetings with Agency Program managers leading the contract requirements you’re pursuing  If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from.  Amazing Benefits  The Department of Defense is known for providing excellent benefits.  Here is a list of some of the great perks of working with this organization:  Paid Time Off that can increase every year  Tuition Reimbursement  Short and Long Term Disability  Life insurance with family options  Great Medical and Dental benefits  Job Security And Work-Life Balance  Startups might sound glamorous but they are far from secure. The statistics say:  90% of new startups fail.  75% of venture-backed startups fail.  Under 50% of companies make it to their fifth year.  33% of startups make it to the 10-year mark.  Only 40% of startups actually turn a profit.  82% of companies that fail do so due to income problems.  The highest failure rate occurs within the information industry (63%)  In defense contracting, you are under a pressure cooker to get a product to market and under the control of nervous financiers.  Instead, you have a fixed timeline and a payment schedule that is already in place. This means no insane 12 hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having realistic milestones that actually are attainable.  Opportunities For Diversity  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.  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.  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.  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… Continue reading Is Government Contracting Right For Your Business?

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.  However, Federal contractors are also in a very unusual situation. Sure, there definitely have been some closures and work stoppages but there are some contractors that are still vitally needed during the pandemic.   The Federal Government is Sympathetic to the Situation.  The government understands that many contractors are in precarious situations. Right now more than ever government agencies are emphasizing how important it is to communicate and document issues in scheduling and performance for potential relief in the future.  The Office of Management and Budget issued the following statement to the various government agencies:  “be flexible in providing extensions to performance dates if telework or other flexible work solutions, such as virtual work environments, are not possible, or if a contractor is unable to perform in a timely manner due to quarantining social distancing, or other COVID-19 related interruptions.”  Government contractors may be entitled to relief for the following reasons:  Delays caused by Covid-19  Increased performance costs due to Covid-19  Costs from government-initiated contract terminations caused by COVID 19  Performance issued that are the result of complication due to COVID 19  Cost Recoveries  Most government contracts operate under the “four corners of the document rule” This means that you must look into the terms and conditions of the contract itself to understand what can be utilized to protect your interests. An example is if a contracting officer failed to cooperate with the terms of the contract.  Public Law 85-804, the President may “authorize any department or agency … to enter into contracts or into amendments or modifications of contracts … whenever he deems that such action would facilitate the national defense.” This allows for relief under extraordinary circumstances, which could include situations such as those that arise under this unexpected pandemic.   Excusable Delays  Under FAR 52.249-8, a contractor will be excused from liability “for any excess costs if the failure to perform the contract arises from causes beyond the control and without the fault or negligence of the contractor.” Epidemics and quarantine restrictions are examples of excusable delays as listed under this clause.  However, certain causation must be established. You must be able to connect the excusable delay and the delay in the performance of the contract. It is vital to immediately document the cause of the delay as soon as possible.  FAR 52.242-17, which provides a broad remedy for “any” contracting officer action “or inaction” that affects performance and causes cost or schedule impacts. For example, if a contractor has to be onsite, but then the site is closed to the coronavirus and the contractor is not permitted to be onsite. Make sure you contact your contracting officer and inform them of any impact you are experiencing immediately.  Work Stoppages  In government contracts, a stop-work order can be issued for 90 days or more depending on the agreement. After this period is over, usually the contractor must resume with the work or the contracting officer terminates the contract. The government contractor must assert entitlements to an adjustment within 30 days after the period ends in order to collect a recovery. This usually consists of equitable adjustment plus profit or extension of billing schedule or both.  This remedy is available to only involuntary work stoppages. A voluntary work stoppage would consist of people not coming to work by their own decisions, due to the need to self-quarantine during the pandemic. This would excuse performance but would not be considered a contestable delay.  With any delay, contact the contracting officer, document the delay, and that it was due to a government act, and document the cost impact of the delay.  Excusable Defenses  Excusable delays prevent the government from terminating a contractor for default when the problem is not under the control of the contractor. This is called excusable defenses to a termination for default.  FAR 52.249-8 says the following:  (c) Except for defaults of subcontractors at any tier, the Contractor shall not be liable for any excess costs if the failure to perform the contract arises from causes beyond the control and without the fault or negligence of the Contractor. Examples of such causes include (1) acts of God or of the public enemy, (2) acts of the Government in either its sovereign or contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions (7) strikes, (8) freight embargoes, and (9) unusually severe weather. In each instance, the failure to perform must be beyond the control and without the fault or negligence of the Contractor.  (d) If the failure to perform is caused by the default of a subcontractor at any tier, and if the cause of the default is beyond the control of both the Contractor and subcontractor and without the fault or negligence of either, the Contractor shall not be liable for any excess costs for failure to perform, unless the subcontracted supplies or services were obtainable from other sources insufficient time for the Contractor to meet the required delivery schedule.  Government contractors should document everything, including what proactive measures they considered, such as looking for alternatives to employees working on site, to mitigate damages. This shows that the contractor did their best to avoid any delays.  This Pandemic Will Not Last Forever  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… Continue reading How Has The Coronavirus Affected Government Contracting?

There were certain groups that have experienced discrimination in the past that were not related to their individual qualifications. This discrimination kept them from participating in the free market because they did not have access to capital.  In response, the Federal government tries to award contracts to businesses that are at least fifty one percent owned by those from disadvantaged groups.  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.  How Do I Know That Being A Government Contractor Is Right For My Company?  There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset.  Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage.  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.  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 Small Businesses, that gives you important information about this process.  Luckily our site takes this headache off your hands. You can leave this important step to the experts at Sam Directory so you can concentrate on more important matters.  The best part is once you register, you will no longer have to keep reentering important information every time you apply for a new government opportunity.  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.  How Do I Apply?  We recommend that you simply submit your application or the 8(a) Business Development Program electronically, but if you employ paper, see the subsequent guidelines.  If you’d not wish to submit electronically, you’ll contact your local SBA District office to get a paper application to use to the 8(a) Program Business Development Program.  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… Continue reading How Minorities Can Get Lucrative Government Contracts

Being A Government Contractor Is A Great Way To Make Your Business Stand Out In An Overcrowded Field  Business can be very competitive. Working on government projects is a great way to make a mark in an oversaturated market. The government has a great deal of work specifically set aside for small businesses.  Also, many small businesses often do not want to deal with the hassle of working with the government, and sometimes there can be surprisingly little competition for a government project. That is why utilizing Sam Directory to handle all the confusing registration requirements is a very smart investment.   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 and service-disabled veterans. Several small businesses have made a fortune just on federal government contract awards. However, before companies bid for contracts, it is important to understand the different types of contracts utilized by the government.  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.  Registering With The Central Contractor Registration  You must also register with the Central Contractor Registration or the CCR in order to be eligible for government contracts.  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 Small Businesses, that gives you important information about this process.  Luckily our site takes this headache off your hands. You can leave this important step to the experts at https://www.sam.directory so you can concentrate on more important matters.  The best part is once you register, you will no longer have to keep reentering important information every time you apply for a new government opportunity.  You will need a DUNS number.  You’ll also need a D&B D-U-N-S® Number, which is a unique nine-character identification number issued to your business. You can register for your D-U-N-S Number free of charge by calling 1-866-705-5711 or by visiting Dun & Bradstreet’s Government D-U-N-S Number registration page.  SAM Directory Information For Veterans  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.  What can I do to make registering for the SAM directory as easy as possible?  All this information can seem quite daunting. We understand that as a small business owner, you have a million things to accomplish on any given day and might not have the time needed for this process. However, you also do not want to miss out on the honey hole of opportunities provided by the federal government. It is… Continue reading How Veterans Can Get Government Contracts

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 by 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.  The United States Government Want To Encourage the Success of Small Businesses  As we mentioned in the first part of this series, the federal government is required to set aside at least 23 percent of its total spending specifically for small businesses.  This includes contracts specifically 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.  The Federal Government Has Government Personnel That Are Strictly Utilized to Help Small Businesses Be More Competitive In Securing Government Contracts  Here are some examples:  SBA Procurement Center Representative (PCR): Procurement Center Representatives are often located at a major government buying office, even though they technically work for the Small Business Administration. They will identify items and services that could be produced or provided by small businesses and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.   Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the major buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can prove to be burdensome. They also try to expand competition for items by offering challenges to requirements that are not deemed necessary for the performance or essential physical characteristics.   Small Business Specialists (SBS): The law requires that every government buying location must have a Small Business Specialist. These specialists work specifically with small businesses to help them to business with that office. Larger government offices might have full staff while smaller offices might only have one part-time employee assigned to this role. Major government buying offices have full-time staff, while smaller offices have a part-time person assigned to that task.   SBA Commercial Marketing Representative (CMR): Commercial Marketing Representatives keep track of large companies doing work for their departments. These representatives are often the go-to person for fantastic subcontracting opportunities for small businesses.   It is smart to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to succeed in obtaining government contracts.  Publications  The government has issued some publications to also assist small businesses. They are as follows:   Selling to the Military: Has all the information needed about items the military is currently looking to purchase. This includes contact information for the buying offices and the Small Business Office.  Small Business Specialists for DoD: This is a listing of names, addresses, and phone numbers for all the resources you need to do business with the Department of Defense which is one of the most well-funded purchasers in the government.  Participating in the VA Acquisition Program: This publication covers general information about how and what the Veterans Administration buys.  Conferences for Procurement  Procurement conferences are sponsored by both the government and private businesses. These conferences are a great opportunity to meet and speak with government officials, buyers, and large prime contractors. The more populated areas of the country hold several conferences in a year.  Various websites usually have a listing of when these conferences are held. You can also go to the FedBizOpps News section of the BidNet.site.  Counseling  The government also offers more personalized guidance through counseling. There are also commercial counseling programs.  The Procurement Technical Assistance Centers or PTACs offer valuable assistance to small businesses. They can be found in educational institutions. These counselors are well known for their high level of expertise. There is also a government-backed membership organization called the National Contracts Management Association.   The PTACs help small businesses locate marketing opportunities and can assist with various e-commerce issues. They can also help you prepare financial reports, procurement forms, and contractual paperwork, as well as provide guidance on quality assurance. Most of their services are free though there can be a nominal charge for services such as electronic bid matching. You can contact one of the regional directors at The Association of Procurement Technical Assistance Centers for more information. The website www.sellingtothegovernment.net could help you to locate a PTAC near you.  National Contracts Management Association  The National Contracts Management Association (NCMA) is a government-supported organization that was started years ago (1959). It was started to help companies do business with the federal government.  The organization provides certification programs and educational seminars for small businesses. They also print a monthly magazine called Contract Management. The fee for new membership is $120 and can be thereafter renewed at $100 per year.  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.  How Do You Get Started Working With The Government?  For example, the following are the steps to apply for a federal grant:  Step 1: Obtain a DUNS Number  Step 2: Register with SAM  Step 3: Register with Grants.gov  You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions. 

Being A Government Contractor Is Lucrative  One of the best ways to expand your business and have a secure lifeline in unexpected rough times is to become a government contractor. The United States government is one of the most powerful consumers of goods and services in the world. This is a 500 hundred billion dollar industry that is required to set aside at least 23 percent of these contracts specifically for small businesses.  A Fantastic Presentation Is The Key To Success  Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because of the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process.  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.  You Still Need To Make Yourself Stand Out  The federal government will be watching many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. It is important that your presentation is unique and memorable in a positive way. Your company really needs to catch their attention.  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 solving simulations on a daily basis at least two weeks before you head into the presentation. The more you practice problem-solving, the better you’ll do as a team.  Innovation Is Key  The government needs to be very careful about how they handle money that is provided by taxpayers. They are tasked with making sure that things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems.  The United States government is open to fresh perspectives and ideas that can streamline their systems or save them money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector.  Remember SAM  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 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.… Continue reading Mastering Your Presentation For Government Contracts

The Island of Security in Uncertain Times  There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset.  Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage.  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.  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.  Small Business Administration Certifications  A Small Business Administration certification is a great way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business:  Women-Owned Small Business Federal Contract Program (WOSBs)  8(a) Business Development Program  The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB)  Historically Underutilized Business Zone Program (HUBZone)  Networking  Sometimes the hardest step is getting your foot in the door. Networking is extremely important when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events throughout the year. 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.   This is your opportunity to shine so make sure you are prepared to present an elevator pitch to better define your company. This is a speech that explains what your business has to offer and how you can help another organization meet its goals. It should be short and simple, no longer than a 30-second elevator ride.  Do Your Research  Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online.  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. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts:  Inquire about the vendor Outreach Sessions and when will they be held  Inquire how your company’s products/services could help with the agency’s missions  Request meetings with Agency Program managers leading the contract requirements you’re pursuing  If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from.  The Capability Statement  Capability statements are essential marketing tools.  These written documents state your firm’s abilities in a clear and compact manner. This should include a company overview, past performance, and how you can fill a need for the agency. To stand out from other businesses, be sure to tailor your statement to specifically match the project and/or agency needs.  Do Not Give Up!  At some point, the process can be a little overwhelming. You must keep in mind that the reward will definitely be worth all the effort. According to the American Express OPEN survey, 57% of businesses said their revenue has grown significantly because of government contracting, and at an average rate of 61%. However, business owners should keep in mind there is no secret formula for securing a contract.  The Government Wants Small Businesses To Succeed  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.  Remember 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… Continue reading Preparing Your Business For Federal Government Contracting