Author: contact@sam.directory

Advantages 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. Important Laws Section 8(d) of the Small Business Act and, in most cases, FAR 19.7 incorporate several laws regarding small business subcontracting. These laws require prime contractors to provide subcontracting opportunities to small businesses. This includes: HUBZone small business  Small disadvantaged business  Women-owned small business  Veteran-owned small business (VOSB) Service-disabled VOSB So the government requires that on contract over $500,000 or a million when constructing a facility that is public, that large prime contractors must turn in plans for subcontracting percentage goals for small business, HUBZone small business, small disadvantaged business, women-owned small business, VOSB, and service-disabled VOSB. These plans must describe in detail the methods used to make sure that small businesses have a fair chance to compete for government contracts. This is required to be submitted for review prior to the award of any government contract that meets this threshold. If a prime contractor fails to comply with this regulation then they might be subject to liquidated damages or termination for default. This rule does not apply to contracts that are under the prescribed dollar amount, contracts that are going to be completed fully outside the United States of America, contracts that have no subcontractor opportunities, and small businesses. 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. Are There Any Other Advantages For A New Business 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 may be 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 lots of other programs within 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 Disadvantages High-Level Security and Background Checks 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 it 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. Certification and Education Usually, the agency sets specific educational and certification guidelines when they post a request for proposals or RFP. These requirements can vary depending on the type of work that is needed. However, there are some steps that any business can do to become more attractive for government contracting work. 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 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. How Do You Get Started? 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… Continue reading The Advantages and Disadvantages Of Being A Government Contractor

One of your first important decisions 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. What is a business entity? A business entity is a corporation created by one or more natural persons to hold on a trade or business. The following are types of business entities: Sole proprietorship: Unincorporated business with one owner or jointly owned jointly owned by a marriage General partnership: Unincorporated business with two or more owners Limited partnership: Registered business composed of active, general partners and passive, limited partners Limited liability company: Registered business with limited liability for all members Professional limited liability company: LLC structure for professionals, like doctors and accountants C-corporation: Incorporated business composed of shareholders, directors, and officers S-corporation: An Incorporated business that is taxed as a pass-through entity Professional corporation: Corporate structure for professionals, such as doctors and accountants B-corporation: For-profit corporation that is certified for meeting social and environmental standards Nonprofit: Corporations: Formed primarily to benefit the public interest rather than earn a profit. What is personal liability? Personal liability means that your personal assets are 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 business. Sole Proprietorship If your business 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 business decisions and profits. You will also only be taxed one time on all business profits. The greatest disadvantage of a sole proprietorship is that there is an unlimited liability. This means that you will be held personally responsible for all the 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 business and are okay with there being no formal division. Partnership 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 business is unlimited. Each partner is ‘jointly and severally’ responsible for the partnership’s debts; that’s , each partner is responsible for their share of the partnership debts also as being liable for all the debts of the business. This means that you can be held responsible for your partner’s neglectful actions. If you are someone who enjoys working with a team and does not want to shoulder all the responsibility for the business 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. 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 business is run. They have limited liability concerning a business’s debts and they usually pay fewer taxes regarding the profit. The limited partners can be looked upon as silent investors. If you want to retain primary authority in your business but definitely could use some other sources of cash than a limited partnership would be a great compromise. C-Corporation A C-corporation (c-corp) is when the business is considered separate from its owners and operators.  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. First, the corporation is taxed as a separate entity and then you are again taxed on the profits in your own personal taxes. This is a great model for those who really want to start a business 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. That means that 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) Limited Liability Companies are extremely popular among many business owners because they often combine the best both worlds when it comes to liability and taxation. These hybrids clear their owners of personal liability for the business’s debts or liabilities. They also allow you to actually choose whether you want your LLC to be taxed as a partnership or as a corporation. At the end of the day, you are the one who should decide what business entity best suits your needs. Make sure you consider important factors like taxation and liability. You should also go to your secretary of state’s website to find out what it takes to formally… Continue reading Choosing the Right Business Entity for Your Business

A Powerful Client 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. Subcontracting Is An Excellent Way To Get Started Perhaps you are a little intimidated by the prospect of working with the government. You would like an ideal scenario where you can ease into the lucrative business of government contracting and be able to pick things up at your own pace. Subcontracting is a fantastic way for you to ease into government contracting at your own pace but still take part in the multi-billion dollar marketplace.  What Is A subcontractor? A government subcontractor is defined by Federal Acquisition Regulation (FAR) 3.502-1 as: Any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract and includes any person who offers to furnish or furnishes general supplies to the prime contract or a higher tier subcontractor. A prime contractor contracts directly with the client, which in this case is the federal government.  The subcontractor would enter into an agreement with the prime contractor (prime) to provide goods and /or services to the prime for them to be able to fulfill the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience with government contracting and build their reputation with various government agencies. Useful Definitions Prime contractor — The business wins to bid for a contract with the government. Higher-tier subcontractor — a subcontractor that also contracts other subcontractors to perform services or provide supplies in order to complete work for the contracts they have entered into with prime contractors. Consultants — It is easy to confuse consultants with subcontractors. Consultant services are defined by Federal Acquisition Regulation (FAR) as “rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Examples include those services acquired by a contractor or subcontractor in order to enhance their legal, economic, financial, or technical positions. Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.” How Does A Small Business Become A Subcontractor? One of the first things that one needs to do is to be registered with  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 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. Do Your research Search on the internet to see if the agency that your business is interested in has a subcontracting opportunity directory. Some agencies, such as the Department of Defense, has a directory that is specifically intended for small business. Outreach Events There is nothing better than good old fashioned networking to make the connections needed in order to get subcontracting opportunities. There are many outreach events across the country in which contractors solicit contracting work. Here is a listing of events: International Contracting Week – Las Vegas 2020 Attendees will be exposed to a wide range of legal and compliance issues that impact their businesses and ultimately affect their organizations’ bottom lines. Courses offered during International Contracting Week are relevant to personnel in a wide range of functions, including contracts, procurement, compliance, legal and risk management. This weeklong conference is: Federal Subcontracting for Primes and Subs200 Attendees will understand the rights and obligations relating to subcontracting performance and management that result from government contract terms and conditions and the FAR and will develop the skills necessary to use and maintain these rights during subcontract performance and management, beginning with the development of technical, quality and delivery requirements through a clear and mutually agreeable statement of work. Earned Value Management & EVM System Fundamentals The EVM and EVMS Fundamentals Workshop is designed for professionals and organizations who are new to earned value management (EVM) concepts and requirements. It will also be useful for those who are considering bidding on contracts that will have an EVM reporting and system requirement. Attendees will gain a better understanding of the requirements as well as the level of resources and effort required to implement a system.  Does Your Business Qualify For Set-Asides? If at least 51% of your business is owned by a minority, woman, or veteran then your business might be eligible for set-asides reserved for underrepresented groups. Does your business meet the following criteria: A business must meet small business size standards. At least 51 percent of a business must be owned by U.S. citizens. The business officers must show good character. The business must demonstrate the potential for success. There are separate eligibility requirements for businesses owned by American Indians, Native Alaskans, Native Hawaiians, Woman, Veteran or Certified Development Companies.  At least 51 percent of a business must be owned, controlled, and managed by one or more person(s) who meet the SBA requirements for being socially disadvantaged and economically disadvantaged. Make Sure You Have The Proper Documentation It is important to make sure that all of your licenses and liability insurance paperwork is in order. Prime contractors favor subs that are organized and run on precision. Also, prepare a Capability Statement. This is the marketing one-pager you need… Continue reading What Is A Government Subcontractor?

Great for Entrepreneurs Being an entrepreneur is exciting but also presents its own unique challenges. Financing is a large obstacle that is often not easy to overcome. Simply put, the more money that you have at your disposal the more options will be available to make sure your business is on the right path to success. Unfortunately, many companies never properly explore the field of government grants. They assume that they do not qualify for grants and never even try to apply. What is a Government Grant? A government grant is a financial award given by the federal, state, or local government authority for a beneficial project of some sort. It is effectively a gift: It does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money. Why is the government giving away free money? Innovation and ingenuity are important to any society. In order for any economy to be competitive in the modern world, they must make sure to open up avenues to grow and nurture new businesses. To put it simply, the government gives out grants because it serves the greater good to serve the needs of the people. Grants are a great way to even the playing field. We have all heard stories about great entrepreneurs with relatively humble beginnings. Grants are in place because few people have the capital to start a business without some assistance. This is particularly true for minorities and women who might have faced discrimination in the past that hindered them from pursuing their business goals. Grants for Women Here is a listing for the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant Is it difficult to obtain a Grant? In truth, grants can be very competitive. It is important to read instructions so that you can thoroughly understand the application process. You do not want your grant application to be thrown out because you did not provide the correct paperwork or information. A small business should also be aware of deadlines. However, please do not let a challenging application dissuade you from trying to qualify for grants. There is nothing truer than the saying about never making any of the shots you don’t take. There are also websites that can help you through the process. The first steps 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. What are some examples of grants for Small Businesses? The Small Business Innovation Research (SBIR) encourages small businesses in the United States to engage in research and development that has economic potential. Their website states their mission of the is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy. SBIR Goals The program’s goals are four-fold: Stimulate technological innovation. Meet Federal research and development needs. Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons. Increase private-sector commercialization of innovations derived from Federal research and development funding. Program Participants The following are a list of agencies that participate in the SBIR program: Department of Agriculture Department of Commerce – National Institute of Standards and Technology Department of Commerce – National Oceanic and Atmospheric Administration Department of Defense Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Department of Transportation Environmental Protection Agency National Aeronautics and Space Administration National Science Foundation The Small Business Technology Transfer (STTR) is another program that expands funding opportunities in the federal innovation research and development (R&D) arena. The mission of the STTR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy. STTR Goals The programs’ goals are to: Stimulate technological innovation. Foster technology transfer through cooperative R&D between small businesses and research institutions. Increase private-sector commercialization of innovations derived from federal R&D. STTR Program Participants Participating government agencies include the following: Department of Defense Department of Energy Department of Health and Human Services National Aeronautics and Space Administration National Science Foundation These are some great opportunities at the federal level for any small business. Do not forget about State and Local Grants. State grants are often geared to that particular state’s economic concerns. They are often supposed to work in tandem with federal grants but can be much less competitive. Go to Grants.gov to get a complete listing of what is offered in your state. Also, do not forget your own local municipal governments. Do a deep dive into your community to find out what is available. Again, every little bit helps and sometimes money is left on the table because people are unaware of what is out there on a local level. When applying for a grant, think about what you are doing for the community. What are you bringing to the table? Does your business model further the altruistic goals? For example, if you are part of a small community of at least 50,000 people, you could qualify for a Rural Business Development Grant The Government is always looking to nurture innovation in Rural Areas Their websites describe this program as a competitive grant designed to support targeted technical assistance, training… Continue reading How Registering for the SAM Directory is a Path to Free Money. Government Grants for Your Small Business Can Not Afford To Ignore

What is the Sam Directory? SAM stands for System Award Management. Why does my business need to register for the SAM Directory? 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 directory. The SAM Directory is a great source of revenue. What if I told you that there is a large revenue base for your business that is often untapped in many areas and therefore might have very little competition in your field? You might be wondering if this magical source of revenue lives in the land of rainbows and unicorns. The good news is that this is nothing more or less than the United States Federal Government, one of the largest, most powerful purchasers of goods and services in the entire world. Our Federal Government provides a lucrative business opportunity that no business can afford to ignore. Can a small business hope to compete for federal government contracts? The Federal Government is required to reward a certain amount of its contracts to small businesses. 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 rewarded to small businesses and marks a 5 million dollar increase from the previous year. Small Businesses are Thriving with the Government 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 dollars in subcontracts to all small businesses. The federal government has been exceeding its goals for contracting to many groups of small business owners that have been formerly overlooked as evidenced by this chart: What government agencies are incorporated into the SAM Directory? Assistance Program Catalog CFDA – Catalog of Federal Domestic Assistance Award Management FBO – Federal Business Opportunities FPDS-NG – Federal Procurement Data System-Next Generation eSRS/FSRS – Electronic Subcontracting Reporting System/FFATA Subaward Reporting System Entity Management CCR/FedReg – Central Contractor Registration/Federal Agency Registration ORCA – Online Representations and Certifications Application Performance Information EPLS – Excluded Parties List System of the General Services Administration (GSA), discontinued November 21, 2012 PPIRS/CPARS/FAPIIS – Past Performance Information Retrieval System/Contractor Performance Assessment Reporting System/Federal Awardee Performance and Integrity Information System Wage Data WDOL – Wage Determinations Online Performance Information The SAM Directory makes things very convenient. SAM has conveniently combined the many government agencies into one directory. Registering for the SAM directory makes sure that your business is being seen and noticed by a large group of Federal Agencies. This system has efficiently streamlined contracting for both the government and the individual businesses. When government procurement agencies are casting their search net for companies to send their proposals, your company being a registered entity in the SAM directory makes sure that you will be in their sightline. 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). First steps to getting a grant. 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… Continue reading Everything You Need to Know About SAM for Small Businesses