Author: Dona Basu

Why does my business need to register for the SAM Directory? What if I told you that your business has a large revenue base 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 small business can afford to ignore. What Is Government Contracting? Government contracting is when specific government agencies contract with private companies for specific goods or services. The agencies usually put out a contract or often a request for proposal (RFP) and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. However, it is important to be aware of certain elements of government contracting culture in order to be more effective and get more contracting opportunities. Can a Small Business really hope to compete for federal government contracts? The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses. In 2018 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year. What do I need to register for the Sam Directory? You will need the following : A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. What is a DUNS Number? The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number as a social security number for your business. Any contracting opportunity in the System for Award Management (SAM) will require a DUNS number to apply. What is the difference between a DUNS number and a Federal Tax ID number? A DUNS number is used for business credit reporting purposes, whereas an EIN is issued by the IRS and used for tax identification purposes. Are there any other advantages to registering for the SAM Directory besides government contracting opportunities? A business has to be registered with SAM before they can begin to apply for valuable federal grants. What is a Federal Grant? A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). The following are the steps to apply for a grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov Is there any other information that I should be aware of to take full advantage of what is offered by registering for the SAM Directory? It is important that a business understands the government classification system which includes the following codes: NAICS PSC FSC What is a NAICS number? NAICS is a six-digit code that stands for the North American Industry Classification System. Many federal agencies post contracting opportunities using the NAICS codes. The NAICS is used as an internal reference that quickly describes what a business does. You want to make sure you have the correct NAICS number to qualify for as many contracting opportunities as possible. What is the PSC number? PSC stands for Product Service Code and is primarily used by the Federal Procurement Data System (FPDS) and the General Services Administration (GSA).  They are used to describe the types of products, services, and research and development purchased by the federal government. What is an FSC Code? Federal Supply Class (FSC) codes are four-digit codes that are used to group products into logical families for supply management purposes. These codes are also used to classify government standards documents into categories, to help manage them more easily. FSC codes are grouped by Federal Supply Group (FSG) numbers. CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM. How Can A New Business Easily Register For SAM Without All the Hassles? All this information can at first seem quite daunting at first. As small business owners, we understand that you have a million things to accomplish on any given day. However, you also do not want to miss out on the honey hole of opportunities provided by the federal government. It is important that you get registered into the SAM directory as quickly and efficiently as possible. That is why it is a great idea to go to sam.directory. They understand the importance of proper SAM registration and take this confusing process off your hands completely. This website can… Continue reading How Small Businesses Can Register For The SAM Directory

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. What Is Government Contracting? Government contracting is when specific government agencies contract with private companies for specific goods or services. The agencies usually put out a contract or often a request for proposal (RFP) and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor. Why Work For The Government? There are many compelling reasons to work for the Federal Government.  We will go into in-depth detail about how a small business can benefit greatly from being a government contractor. Take Hold Of Your Destiny Some people are scared of the stress that often comes along with managing a business. They think that will not be able to handle keeping up with the ever-changing marketplace. What they often do not take into account is that day-to-day jobs can be just as stressful. Often, employees have to live up to the unrealistic expectations of several managers. Being an entrepreneur gives you more control over your own destiny, rather than have your fate be in the hands of other people. This way you can shape your life according to your needs. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. 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. What Is A Government Contractor? The United States Government is made up of several agencies that are in need of a variety of services. These agencies then offer contacts to private companies across several industries to fulfill these needs. Private contractors are vital in helping the government provide services for the welfare and protection of the citizens of the United States. Private government contractors provide goods and services for the following:  Medical Services Utilities Construction Supplies for various projects Engineering Defense Intellectual Technology Energy These are just a few of the categories that are often contracted out to private independent companies through the awarding of 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. Can a Small Business really hope to compete for federal government contracts? The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses. In 2018 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year. The following facts are also very enlightening: In FY18, the federal government exceeded the service-disabled-veteran-owned small business and small disadvantaged business goals and the prime contract dollar awards in all small business categories increased from previous years. The federal government also exceeded its subcontract goals for awards to small businesses and women-owned small businesses and awarded more than $79 billion in subcontracts to all small businesses. 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. Government Funding As we have stated before, the United States government is one of the wealthiest and most powerful clients in the world. However, no one has unlimited resources. Administrations change and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased. One of the best ways to combat this is by supporting politicians that understand and promote your type of business. It is important to keep an eye on the… Continue reading Federal Contracting Can Be A Lifeline For Small Businesses During Tough Economic Times

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. So this set aside might increase a small business’s chances of winning a lucrative bid. The federal government must set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on national government contract awards. However, before companies bid for contracts, it is crucial to understand the different types of arrangements utilized by the government. Time and Materials Contracts The government rarely awards this type of contract because of the expense. A Time and Material Contract requires paying directly for all costs associated with the particular project. Labor Hour Contracts are defined as a variation of the time-and-materials contract, differing only in that materials are not supplied by the contractor. See 12.207 (b), 16.601 (c), and 16.601 (d) for application and limitations for time-and-materials contracts that also apply to labor-hour contracts. See 12.207 (b) for labor-hour contracts for certain commercial services. Labor Hour Contracts do not include the cost of materials. Indefinite Delivery Contracts The government uses this type of contract when it does not know precisely how much of a product or a service will be needed for a project. They will usually list a range, and certain companies will be invited to provide their lowest bids per item.  This includes Task-Order Contracts which permit government stocks of specific items to be maintained at minimum levels and allow direct shipments to the users of products or services. They also enable great flexibility in both quantities and delivery scheduling and the ability of buyers to order supplies and services only after specific requirements for them materialize. Job-Order contracts, a competitively bid, fixed price, multi-year construction contract based on established or published unit prices via a unit price book (UPB) or a price list with a multiplier (termed coefficient) applied to the unit prices also fall under this category Fixed-Price Contracts These government contracts are used when the scope of work is clear from the beginning, and therefore a price is determined by the agency in advance. There are many different types of this particular contract. Firm Fixed-Price (FFP) This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, the business will keep the extra profit. This is an excellent contract for companies that are precise with their pricing and have a lot of experience. Cost-Reimbursement Contracts Cost-reimbursement is a category of contracts used when it would be too difficult to estimate the cost of the project in advance. They usually define a spending limit but are a much lower risk for the service provider than fixed-price contracts.  Cost Contracts This contract pays only for expenses, and there is no profit for the small business provider. Cost contracts are often used for research projects provided by non-profit organizations. Cost-Plus-Fixed-Fee This contract includes a limit for expenses that will be reimbursed and a fixed payment for the service provider. Cost-Plus-Incentive Like Fixed-Price-Incentive contracts, this provides a financial incentive for the service provider to come in under budget while also covering project expenses. Cost-Plus-Award-Fee This contract states that the govt client can pay the expenses of completing the project and provides financial awards supported by criteria outlined beforehand. Cost Sharing This type of contract only pays a predetermined portion of the overall costs. It is most common in research contracts where the service provider will benefit in other ways from the research results. Get The Bid Package After you have ascertained the government contract you want to bid on, it is essential to contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office wants to buy and determine if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information, including name, address, phone number, and e-mail address, are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. 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 precise instructions, and you must take everything seriously. Just think of it as filing your income taxes, and do not take any unnecessary shortcuts. The First Step Is Registering With SAM To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not been written in the SAM directory. Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Sam Directory will happily guide you through this often confusing process. What do I need to register for the Sam Directory? You will need the following : A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s 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… Continue reading The Different Types Of Federal Contracts Explained For Small Businesses

Where Do You Find Government Contracts For Bidding Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts that are above $25,000 on SAM.gov. This means that there are a large number of contracts advertised there at any given time. Contact a procurement officer for information on contracts that are below the $25,000 threshold for publishing. Look To Your Local PTAC Office Procurement Technical Assistance Centers or PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets certain criteria to work with the government. Here is also where you can find out if your business can be certified as 8(a), WOSB., or HUBZone. Get The Bid Package After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. The Bid The Federal government has the following type of solicitations for bidding: Request for Quotation (RFQ). This type is for contracts below $150,000 with a simplified acquisition procedure. Request for Proposal (RFP). This type of solicitation asks vendors to make a proposal in response to the government request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that type of solicitation. Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here. Request for Information (RFI). This is mostly to research the market and evaluate the interest and capabilities of contractors in a specific niche. Make sure you read the solicitation requirements carefully. A solicitation package will include, documents, technical conditions, attachments, and various other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill. As for required documents, they are listed in the solicitation Contact your contracting officer if you have questions. It is important that you understand every single thing about the solicitation that you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements. Be Competitive Use resources like USASpending.gov or govspend.com to compare your bids using third-party service providers. The government uses Most Favored Customer or MFC to determine what is fair and reasonable pricing. This is defined as” A Standard Clause allows a buyer to obtain the best possible price on goods or services from a seller by requiring it to provide the buyer with the lowest price among all buyers in that market. If the seller wants to offer a different buyer a lower price, it must also first offer that price to the buyer with the most favored customer clause (MFC), also known as a most favored nation clause. MFCs can implicate US antitrust laws, which analyze the enforceability of MFCs using a rule of reason analysis. This Standard Clause addresses the price of goods and has integrated drafting notes with important explanations and drafting tips. What Type Of Contract Is Being Sought? The three major contracts that are being sought are fixed price, cost-reimbursement, and special situation. Fixed-Price Contracts These government contracts are used when the scope of work is clear from the beginning and therefore a price is determined by the agency in advance. There are many different types of this particular contract. Firm Fixed-Price (FFP) This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, then the business will keep the extra profit. This is a great contract for companies that are precise with their pricing and a lot of experience in the field. Fixed-Price with Award Fees A fixed price with award fees contract offers a hard and fast price for objective performance success. This contract will also have additional awards to incentivize more subjective qualities like aesthetic appearance and technical knowledge Fixed-Price with Economic Price Adjustment The prices are often adjusted at the top of the project to account for changes within the cost of labor, materials, or market prices of specific items within the contract. The criteria for these sorts of price changes must be defined within the original contract. Fixed Price Incentive (FPI) This contract states a maximum price but it also awards the service provider for coming in under budget. So coming under budget in this type of contract allows for a larger profit for the small business provider. Cost-Reimbursement Contracts Cost-reimbursement is a category of contracts that are used when it would be too difficult to estimate the cost of the project in advance. They usually define a spending limit but are a way lower risk for the service provider than fixed-price contracts.  Cost Contracts This contract pays only for expenses and there is no profit for the small business provider. Cost contracts are often used for research projects provided by non-profit organizations. Submission It usually takes the government 30 to 120 days to review your submission. The Contracting Officer evaluates many factors including financial figures of your business, how long it has been on the market, past performance reports, and, of course, if your pricing is competitive. Whether your proposal is accepted or rejected, you will receive a response from the Gov’t. Sometimes, the Contracting Officer requests some more… Continue reading A Small Business Guide To Federal Contracting Procedures

Things To Do Before The Request For Proposal The RFP Is Released It would help if you always asked the following questions to fully understand how you are going to structure your winning proposal: What is the top priority: quality, price, or speed? What problem can you solve for the government using your product or service? Do you need to team up with anyone else? How is the proposal going to be scored by the agency? What are the agency’s operating policies? Who is the agency’s current contractor for this particular good or service?  The Structure of Government Requests for Proposals Each proposal has three sections: The Scope of Services Instructions- Make sure that you follow all instructions carefully and with precise details. Evaluation -This is how the government will score your proposal The Scope of Services This is where you will explain how you plan on completing the work or providing the goods being acquired. It is the most important part of the proposal. You must list and provide evidence of core competencies and how you can effectively help the agency reach its desired outcome in the allotted time. This is the time for your business to show your innovation and creativity. Remember that the government wants to save money and keep your pricing competitive. One of the ways to stand out is by identifying your employees and listing their qualifications. Make a strong case for why your people are the best at what they do and why the government is in good hands. Remember, you hired this personnel, so no one knows better than you how awesome your team can be at completing the proposal. Narrow In On The Customer’s Needs 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 the government agency’s pain points and offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. 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 need 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 consider it like filing your income taxes, and do not take unnecessary shortcuts. Be Strategic In Which Agencies That You Target Covid-19 has not had a major impact on government spending. In 2020, over 1.55 trillion dollars were spent on just Covid response efforts. This increase in spending has made the budgets for 2021 higher for several agencies. The Department of Defense has increased its budget by 800 million dollars compared to 2020. NASA has requested a 12 percent increase in its agency funding, and the Veteran Administration agencies asked for 14 percent more money in 2021. It is a great idea to strategically target agencies experiencing this type of budget boom to secure government contracts. Streamlining and Modernizing Information Technology Did you know that the Internal Revenue Service, the Veterans Affairs Department, Defense Department, and the Transportation Department are operating on computer systems over 50 years old? Some still use 1970 IBM mainframe computers that store information on floppy disks! This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized 100 hundred million dollars to modernize the federal government’s Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act added billions of dollars to upgrade the government’s I.T. systems and update infrastructure. So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2020 and beyond. Contingent Fees A government contractor is not allowed to agree with a third party where the third party will pay a fee contingent on the successful winning of a federal contract. This is to ensure contractors are not tempted to cut corners to be paid. The Government Is Different Small businesses should know that doing business with the federal government is different from doing business with civilian companies or individuals. The government must protect the public interest and not abuse funds in the public treasury. They must be very responsible with the money provided by their citizens’ hard-earned tax dollars to avoid all inferences of unfair advantage. A small business must make sure that they are not participating in the following: Bribes Gratuities Kickbacks Conflict of interest Lack of procurement integrity Any suspicion of this type of conduct can bar a business from doing business with the federal government for life and can include criminal sanctions. It would help if you were very careful not to do anything that might violate the integrity of the government process. These provisions include the “officials not to benefit” clause, the “anti-kickback” provisions, the “gratuities” clause, etc. Make Sure You Are Organized Having solid financial records and a clearly 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. 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. What is FAR? The FAR is a standardized set of regulations employed by all federal agencies in making purchases. It provides procedures for how to maneuver the procurement process. It takes you through the need for the product and service to the contract award. Government Contracts Can Be Very Lucrative For Small Businesses The United States government issues 500 billion dollars in federal contracts every year. They also set… Continue reading How To Structure Proposals To Successfully Apply For Federal Contracting Jobs

The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout. The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace. Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative 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 large or small that has not registered in the SAM directory. 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. 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 What Other Information Does A New Business Need to Register For SAM? 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. 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. 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. SAM Directory Can Help Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential.  Let us, the professionals at SAM Directory, make sure that you do all that is needed to not miss out on this important opportunity. We will make certain that your application is processed quickly and efficiently so you… Continue reading How The SAM Directory Can Be The Secret To Small Business Success

Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. What Qualifies As A Small Business? In order to be considered a small business, a company has to meet the following requirements: A business must meet small business size standards. Part of a business must be within the U.S. A business must operate mainly within the U.S. or make a significant contribution to the U.S. economy through the payment of taxes or the use of American products, materials, or labor. A business must be independently owned and operated. A business cannot be dominant in its field on a national basis. The first thing a small business must do in order to qualify for government contracts is to register with the SAM Directory. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows for underserved groups to have a real chance to get awarded lucrative government contracts. The Government Is Fantastic For New Businesses The government has a lot of demand but it goes out of its way to make sure all competition is open and fair. It will need to work with almost any business for products and services with competitive pricing. The United States government is known for running with high levels of precision and accuracy. Making sure the government contracts are fulfilled is a great way for a new small business to streamline its process and delivery methods. 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. 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. CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM. How Do You Get Started Working With The Government? SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives… Continue reading Why Small Businesses Need To Join The SAM Directory

Minority-Owned Business Status Five percent of the Federal government contracts are supposed to be awarded to members of an economically or socially disadvantaged group. This allows minority groups to remain competitive in the government market. Under the Small Business Act, certain individuals are presumed socially disadvantaged:  African-Americans Hispanic Americans, Asian Pacific Americans Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians) Subcontinent Asian Americans. An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows – through a “preponderance of the evidence” – that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes. 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. Additional Requirements Besides, 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 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. Before applying for the 8(a) Program, each firm is urged to take an online training and self-evaluation course that can be found here at the 8(a) Business Development Suitability Tool. The first section of the online 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 for the 8(a) Program Business Development Program. 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. 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 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. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. 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… Continue reading Great Opportunities For Minority-Owned Businesses In Federal Contracting

Government Contracts Offer Security  The recent pandemic has just shed light on how things can change in the small business marketplace in the blink of an eye. Businesses doing quite well had to rethink their business models quickly to survive. Becoming a government contractor is one of the best ways to expand your business and have a secure lifeline in unexpected rough times. The United States government is one of the world’s most potent consumers of goods and services. 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. The Island of Security in Uncertain Times There needs to be more certainty in business. A powerful client known for paying its bills on time, like our Federal Government, is a great asset. Also, many of your competitors might dismiss being a government contractor as too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage. 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 only so many other organizations with this spending power and clout. The government also tends to buy goods and services in bulk. So 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, they can help you grow substantially and rapidly if managed correctly. This Is Not An Oversaturated Field Many small businesses want to avoid dealing 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 brilliant investment. An innovative small business can be in a very favorable position to win government contracts if they follow our guidelines. Understanding The Marketplace Working for the government is very unpredictable at first. Contractors can be affected by various factors such as budget cuts, regulatory pressures, changes 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 its products and services. This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee you the federal government as a solid client that can assure your business of a bright future. Government Funding As we have stated before, the United States government is one of the wealthiest and most influential clients in the world. However, no one has unlimited resources. Administrations change, and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased. One of the best ways to combat this is by supporting politicians who understand and promote your business. It is crucial to keep an eye on the political atmosphere and ensure your voice is heard. 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 Networking is essential 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 of no cost to business owners and can offer a treasure trove of information about how to obtain contracts.  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 straightforward, a 30-second elevator ride at maximum. Do Your Research And Reap The Rewards. One of the best things about being a government contractor is that the knowledge is already out there for the small businesses willing to do the work. See what successful government contractors have done and see if you can follow their leads. It is beneficial if they have special certifications or clearances that let you get a leg up on the competition. You can also start targeting agencies that will need your goods and services. The first rule of business is understanding what your customer is looking for and then providing it in the most efficient way possible. Putting this time, in the beginning will give your great benefits in the future when you are bidding on contracts. Register For SAM SAM stands for System Award Management. To do business with the federal government, you must register your business in the System for Award Management. The government will only hire companies that have written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. As a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step… Continue reading The SAM Directory Is A Great Start To Small Business Success

Special Consideration Small businesses are often outcompeted in many markets by larger organizations with almost unlimited resources. This set aside might increase a small business’s chances of winning a lucrative bid. The following are set as statutory rules to give small businesses a fair chance in the marketplace: 23 percent of prime contracts are reserved for small businesses; 5 percent of prime and subcontracts are reserved for small disadvantaged businesses; 5 percent of prime and subcontracts are reserved for women-owned small businesses; 3 percent of prime contracts are reserved for HUBZone small businesses; Three percent of prime and subcontracts are reserved for service-disabled veteran-owned small businesses. Certain groups have experienced discrimination in the past that was not related to their 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 national government contract awards. How Do I Know That Being A Government Contractor Is Right For My Company? There is minimal 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 dismiss being a government contractor as too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage. Minority-Owned Business Status Five percent of 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, specific 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 not a member of one of the groups listed can be admitted to the program if they show – through a “preponderance of the evidence” – that they are 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 mainstream American society, or other similar causes. Additional Requirements Besides, 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 minor business concerns; The company must demonstrate a potential for success (generally by being in business for at least two years); The company 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 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 company 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. Before applying for the 8(a) Program, each firm is urged to take an online training and self-evaluation course that can be found here at the 8(a) Business Development Suitability Tool. The first section of the online 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 crucial eligibility criteria still need to be 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 submit your application or the 8(a) Business Development Program electronically, but if you employ paper, see the subsequent guidelines. If you do not wish to submit electronically, you’ll contact your local SBA District Office to get a paper application for the 8(a) Program Business Development Program. 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 answerable to the prime contractor, not the government. Luckily, prime contractors are always looking for companies that can help them complete these critical government projects. In addition, subcontracting has many advantages for less experienced businesses. SAM Directory Can Help SAM stands for System Award Management. To do business with the federal government, you must register your business in the System for Award Management directory. The government will only hire any type of business (large or small) that has been written in the SAM directory. Remember, registering for the SAM directory gives a business automatic entry into the highly 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, ensure that you do all necessary to take advantage of this critical opportunity. We will ensure 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 your company’s critical mission. Stay tuned for the next article… Continue reading Registering For The SAM Directory Is A Great Strategy For Minority Owned Businesses