Author: Dona Basu

The Key To Winning A Government Contract Is To Pay Attention To Guidelines It is very important that you read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.  Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal. Things To Do Before The Requests For Proposal Or The RFP Is Released. You should always ask the following questions in order 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 that are 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. You also need to keep in mind that the government does not want to waste money and keep your pricing competitive. One of the ways to stand out is by identifying your employees and list 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. This Is The Time To Brag You should bring up excellent past performance and how you are experienced in providing the goods and services the proposal requires. This does not only mean other government contracts. Government agencies put a high value on commercial work as long as the scope of the project is similar. Specifications As of 2001, the United States Federal Government began to utilize Federal Business Opportunities (FedBizOpps) to list all procurement opportunities expected to exceed $25,000. FedBizOpps is how the government communicates its buying specifications to potential contractors.  The specifications are exact for most of the products and services that government agencies buy regularly. Your contract will contain extremely precise specifications that must be followed meticulously. The specifications which describe the government’s requirements were contained in the invitation for bids or requests for proposals on which you based your bid or proposal. If your company is awarded a contract, you are bound to deliver the product or service described in the specifications. A company is bound by the terms of these specifications and the basic specifications. Failure to deliver a product meeting these terms will result in the termination of your contract for default. So, it is important to understand all specifications before bidding on a federal contract. The government prefers reliable contractors and attention to the smallest details. Bidding The government usually makes sure contracts are competitive through the use of sealed bidding. First, the agency makes sure that its requirements are accurate and complete. Then an Invitation For Bid or IFB is issued. The IFB will describe the type of product or service that the government is procuring. It also includes: Preparation Instructions  Conditions of Purchase Packaging  Delivery  shipping  The payment with contract clauses to be included Submission Deadline The sealed bids are public at the purchasing office at the time designated in the invitation. Simplified Procedures In 1994 the Federal Acquisition Act or FASA simplified the buying procedures of the government. Many more harsh restrictions on government purchases were removed for purchases less than $100,000. Now agencies use much simpler procedures for analyzing and soliciting bids up to $100,000. However, the government must still advertise all purchases over $25,000 at www.fbo.gov. These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are less complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive on price and quality Purchases that do not exceed $2,500 individually or through multiple items are considered micro-purchases. These do not require competitive quotes but are open to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards. Sam Directory Can Help Again the first step to obtaining lucrative government contracts is making sure that your business is registered with SAM. Let us take this complicated process off your hands so you can focus on winning some of these valuable proposals. We can make your life easier and get you in the door to a very profitable new revenue stream with the government. 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… Continue reading The Small Business Guide To Being A Successful Government Contractor- Part 1

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. 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. How Do You Get Started Working With The Government? 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. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor. Registering With The SAM Directory Also Has Other Important Advantages You must register with the SAM directory to apply for government grants. A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). A grant is different from a loan in that it is money that your business does not have to pay back. So, registering for the SAM directory gives you access to free money! 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 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. 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. Registering With The SAM Directory Also Has Other Important Advantages You must register with the SAM directory to apply for government grants. A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). A grant is different from a loan in that it is money that your business does not have to pay back. So, registering for the SAM directory gives you access to free money! Being A Government Contractor Is A Great Way To Make Your Business Stand Out In An Overcrowded Field Business can be very competitive. Working on government projects is a great way to make a mark in an oversaturated market. The government has a great deal of work specifically set aside for small businesses. Also, many small businesses often do not want to deal with the hassle of working with the government, and sometimes there can be surprisingly little competition for a government project. That is why utilizing Sam Directory to handle all the confusing registration requirements is a very smart investment.  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. Develop A Strategy Do not be too broad about what your company can do. Outline to the prime contractor how you are the best choice for the job. Define your niche. This Is Not The Time To Be Shy About Your Company’s Accomplishments Inform them about any awards or certifications that you have received. Tell them how you have a strong reputation and reference any contracts you helped complete. This is the time to position yourself as an asset to their project and inform them about your capabilities. These are things that help build credibility as a subcontractor. So, How Does A Small Business Successfully Start Relationships With Key Government Agencies? The first step is… Continue reading Why Many Entrepreneurs Should Register For The SAM Directory

The Government Would Like to Keep Contract Conflicts Out of Court All contractors have the right to dispute and appeal. However, the government prefers to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. The government expects you to use reasonable efforts to resolve controversies before the submission of a dispute. Remember To Be Reasonable When an unfair decision is put forth, then it definitely should be protested with voracity. However, you should be reasonable in your claims. The federal government is a very lucrative customer, and you do not want to harm this relationship for unnecessary reasons. What Do You Do If The Government Makes A Decision You Disagree With Regarding a Contract? A small business has several remedies ranging from filing a basic protest to taking the government to court. Disputes Are Only For The Contractor Only a contractor is allowed to file a dispute claim. This means that subcontractors can not enter into the federal dispute process. This is because the contractor is an original party to the contract. Typical Contractor Disputes Some common contractor disputes are as follows: Defective specifications Changing delivery dates  Failure of the government to supply a contractor with what he/she needs to properly fulfill the requirements of the contract Any other “event” that would keep a contractor from completing the contract or from being able to perform the contract. The dispute is triggered when one of these events occurs and all informal attempts to resolve the issue fail. What Do You Do If The Government Makes A Decision You Disagree With Regarding a Contract? A small business has several remedies that can range from filing a basic protest to actually taking the government to court. First, it is important to understand the basic terminology in order to understand the options available to a company. What Is The Difference Between A Protest vs A Dispute? A protest involves a defective bid or the awarding of a contract to a different bidder. In contrast, a dispute involves an issue with the contracting officer that arises after you have been awarded the government contract. The following are the three Federal Bid protest Levels: Judicial action was brought at the United States Court of Federal Claims (COFC). Protest filed with the (GAO) Government Accountability Office. Agency-Level protest filed with the agency conducting the procurement. It is important to note that a protest must be filed within 10 days after the basis of the protest is known or should be known. Any protests that exceed this 10-day limit will automatically be thrown out. If you want to go forward you will have to go to a higher level like the United States Court of Federal Claims. Protesting A Bid Or Award You must be an interested party, which means a prospective bidder who will be affected by the award economically. This usually means you will receive the award if your protests are sustained. One such challenge would be that the bid was defective. A defective bid can include the following: The omission of a required provision The ambiguity of Important facts Indefinite evaluation factors. The termination of a contract may also be protested if the protest alleges that the termination was based on improprieties in the award of the contract. This means that you can protest the bid, award, or termination of the contract. Make sure that you are very aware of the deadlines set for a protest. What Of The Timing Of The Protest In The Contracting Process? A protest received before the award of the contract means that the contract will not be awarded until there is a decision on the protest. This is bypassed if the items or services of the contract are urgently needed, and a delay in performance will cause unneeded harm.  If the protest is received within ten days of the award of the contract, then the performance of the contract will be suspended until the protest is resolved. It is on the contracting officer to notify all the other eligible parties affected by this suspension of performance due to the protest. If a protest is received ten days after the contract is awarded, the agency procedures will determine the handling of the protest. The contract performance might not be suspended or terminated in these cases unless it is likely that the award will be invalidated and the delay will not be prejudicial to the government’s interest. General Accounting Office Although it is highly encouraged that companies seek resolution within the contracting agency, if this proves ineffective, then a company can file a protest with the General Accounting Office or GAO.  However, you must understand that if you totally bypass the agency and go to the GAO, then the GAO’s decision is final. This means that you will not be allowed to appeal the GAO, and this ruling will be final. This means that it is usually more advantageous for a company to go through the contracting agency than to go directly to the GAO. Going through the original agency also allows a company more time to gather the information that can help if later protests go to another type of forum. Matters that can not be protested to the GAO: An affirmative determination of responsibility by the contracting officer — A determination that a bidder is capable of performing a contract will not be reviewed unless there is a showing of possible bad faith on the part of government officials or that the definitive responsibility criterion in the solicitation was not met. Procurement integrity — Protests not filed within the required time limits Make sure you read the second part of this series to find out more about disputing or protesting a contract award. Sam Directory Can Help Again the first step to obtaining lucrative government contracts is ensuring your business is registered with SAM. Let us take this complicated process off your hands so you can focus on winning some of… Continue reading How Small Businesses Can Raise Objections To Government Decisions?

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 significantly from being a government contractor. Being A Government Contractor Is A Great Way To Make Your Business Stand Out In An Overcrowded Field Business can be very competitive. Working on government projects is a great way to make a mark in an oversaturated market. The government has a great deal of work specifically set aside for small businesses. Also, many small businesses often do not want to deal with the hassle of working with the government, and sometimes there can be surprisingly little competition for a government project. That is why utilizing Sam Directory to handle all the confusing registration requirements is a very smart investment.  Never Underestimate The Power Of Relationships As part of understanding your customer, it is very important to build strong relationships with government agencies. The government is not a giant cold faceless entity. It is made up of people and they will appreciate the opportunity to speak to you face-to-face. An impressive interview might win you a supporter that will lobby in your favor. Do Your Research Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online. At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when will they be held Inquire how your company’s products/services could help with the agency’s missions Request meetings with Agency Program managers leading the contract requirements you’re pursuing If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that details all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from. The Island of Security in Uncertain Times There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset. Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage. A Fantastic Presentation Is A Key To Success Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process. Be Prepared To Give An Oral Presentation Oral presentations are very common for companies who want to work for the United States government. This is going to be a different audience. You might not get the greeting and niceties that usually come with this type of business meeting. The government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period. You Still Need To Make Yourself Stand Out The federal government will watch many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. Your presentation must be unique and memorable in a positive way. Your company needs to catch their attention. 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) Special Programs Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, which are administered by the Small Business Administration (SBA), assist small businesses on how to obtain both large business and government procurements. Understanding The Marketplace It might at first feel like working for the government is very unpredictable. Contractors can be affected by a variety of factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules. However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use its products and services. Register For SAM SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything… Continue reading Small Business Techniques For Government Marketing

Understanding The Regulations There are many advantages to being a successful government contractor. However, the government has stricter rules and regulations regarding accounting when compared to private sector clients. It is important to keep up with federal regulatory requirements.  Federal government agencies receive their funding from taxpayer dollars and they need to justify their spending in order to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business. DCAA Approval The Defense Contract Management Agency (DCMA)  helps define business systems requirements and provides direction on audits and approval criteria. Potential government contractors need to understand this agency as they define the approval criteria for awarding contracts. They also have a strong hand in guiding government audits. Speaking with them will help you with the following: direct and indirect cost segregation cost pools and allocation bases timekeeping labor distribution systems maintaining compliance with invoicing clauses avast and ever-changing complex of other issues How Do You Get Started Working With The Government? For example, the following are the steps to apply for a federal grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions. The Federal Government Offers Great Opportunities For Many Types Of Businesses Small businesses are the lifeblood of the economy. They are often key sources of innovation and research. The mom-and-pop shop has been part of the landscape and American dream since the beginning of this great nation. The federal government can help you achieve your business dreams. Let us help you take this vital first step on the pathway to success. 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 along with 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. 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 propose in response to the government’s 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 for the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill out. As for the required documents, they are listed in the solicitation Contact your contracting officer if you have questions. You must understand a 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. The First Step Is Registering With SAM To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the typesSAM 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. 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. FFP Level-of-Effort This government contract is defined by the level of effort the service provider will commit to the project, rather than results. It is a common contract used for things like research, which is often hard to define in advance. FFP Materials Reimbursement The small business provider will have a predetermined price for service and labor but is reimbursed for the cost of the materials at the end of the project. This contract is often used for repair services where at the beginning, the cost of materials may be unclear. 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. Again, registering with SAM is the… Continue reading Government Contracting Terms That Are Crucial For Success

Simplified Procedures In 1994 the Federal Acquisition Act or FASA simplified the buying procedures of the government. Many of the more harsh restrictions on government purchases were removed for any purchase that was less than $100,000. Now agencies used much simpler procedures for analyzing and soliciting bids up to the $100,000 amount. However, the government is still required to advertise all purchases over $25,000 at www.fbo.gov. These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are not as complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive on price and quality Purchases that do not exceed $2,500 individually or through the combination of multiple items are considered micro-purchases. These do not require competitive quotes but are not limited to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards. Consolidated Purchasing Programs Just like any other organization, the federal government has common purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies.  For this reason, it made sense to centralize the purchasing of various types of common products and services. Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts or GWACs. These types of contracts help obtain long term vendor agreements with fewer vendors. The GWACs have become very popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action from scratch. Agencies can now competitively award several or multiple task order contracts to different firms for the same products and services. This practice allows federal buyers to issue orders to anyone or a combination of several firms with relative ease. The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends around 600 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. Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal. Innovation Is Key The government needs to be very careful about how they handle money that is provided by taxpayers. They are tasked with making sure that things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems. The United States government is open to fresh perspectives and ideas that can streamline their systems or save them money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector. Government Contracts Can Be Very Lucrative For Small Businesses The United States government issues 500 billion dollars in federal contracts on a yearly basis. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.  To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory. Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Sam Directory will happily guide you through this often confusing process. Sam Directory will guide you through the process of writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract. The System for Awards Management or SAM Directory The absolute first thing that you must do to qualify for government contracting jobs is to register with the federal government supplier database, which is called the System for Award Management or SAM, for short.  This allows you to be certified by the Small Business Administration (SBA). This gives you the Dun & Bradstreet Number (DUNS Number). Your business size will be determined to see if you qualify for the specific set-aside government contracts. You will also identify Your North American Industry Classification System. Please see our blog, Everything You Need to Know About SAM for Small… Continue reading Small Business Guide To Federal Procedures

The Key To Winning A Government Contract Is To Pay Attention To Guidelines You must read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.  Be Precise And Follow Directions Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies fail to follow basic directions. Be aware of deadlines and do not leave anything black when filling out forms. The request for proposals or RFPs has very specific instructions and you must take everything seriously. Just think of it like filing your income taxes and do not take any unnecessary shortcuts. Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal. Things To Do Before The Requests For Proposal Or The RFP Is Released. You should always ask 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 that are 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. You also need to keep in mind that the government does not want to waste money and keep your pricing competitive. One of the ways to stand out is by identifying your employees and list 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. This Is The Time To Brag You should bring up excellent past performance and how you are experienced in providing the goods and services the proposal requires. This does not only mean other government contracts. Government agencies put a high value on commercial work as long as the scope of the project is similar. Mention Connections If you have others coming in with you on the proposal to help make things move faster, be sure to mention how this is an advantage. This is particularly true of very large jobs. Think about building relationships with strategic partners so you can have a wide variety of skill sets to provide a strong proposal. Innovation Is Key The government needs to be very careful about how they handle money that is provided by taxpayers. They are tasked with making sure that things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems. The United States government is open to fresh perspectives and ideas that can streamline their systems or save them money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector. Do Your Research Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online. At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when will they be held Inquire how your company’s products/services could help with the agency’s missions Request meetings with Agency Program managers leading the contract requirements you’re pursuing If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that details all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from. SAM Directory Can HelpRemember, 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… Continue reading Winning Government Contracts

Special Consideration 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 following is 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; 3 percent of prime and subcontracts are reserved for service-disabled veteran-owned small businesses. How Do I Know Government Contracting 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 to get ahead and obtain some very lucrative contracts. Subcontracting Opportunities Being a federal contractor can be an extremely lucrative and rewarding experience. It can offer amazing opportunities for your business. However, it is understandable if you are a little hesitant to dive into the world of the federal government head first. You honestly might not feel like your business is ready to bid on federal competitively as of yet. This is the perfect situation to explore subcontracting opportunities. Being a subcontractor gives you valuable experience of what it is like to be a prime contractor. It will also greatly enhance your qualifications to become a more viable option for the government as a prime contractor. 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 contractor must turn in plans for subcontracting percentage goals for small businesses, HUBZone small businesses, small disadvantaged businesses, women-owned small businesses, VOSB, and service-disabled VOSB. These plans must describe in detail the methods used to ensure 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.  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, Women, veterans 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. 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. 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. 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.… Continue reading How Not To Miss Out On Government Contracting Opportunities

Do Your Research Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online. 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 then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when they will be held Inquire how your company’s products/services could help with the agency’s missions Request meetings with Agency Program managers leading the contract requirements you’re pursuing If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that details all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from. 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 them ahead of time, so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts. Accounting The standard is higher for government accounting when compared to private commercial markets. Contractors will face challenges in making sure that the federal government’s stringent accounting standards are met in a precise manner. Remember the government has to prove how efficient they are with money because they are spending taxpayer dollars. This means that federal contractors must be meticulous in their accounting methodology in case of an audit. At first, these stringent rules of accounting can seem very daunting. However, today there are many cutting-edge technologies that can take the pressure off by making even the most complex accounting procedures quite simple. Also, having a strong accounting system in place will only make your company better in the long run. The Capability Statement Capability statements are essential marketing tools.  These written documents state your firm’s abilities in a clear and compact manner. This should include a company overview, past performance, and how you can fill a need for the agency. To stand out from other businesses, be sure to tailor your statement to specifically match the project and/or agency needs. 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 political atmosphere and make sure that your voice is heard. The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends hundreds of billions of dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout. The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace. Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly. The United States Federal Government The United States government buys many of the products and services it needs from suppliers who meet certain qualifications. It applies standardized procedures by which to acquire goods and services. That is, the government does not purchase items or services in the same way in which private companies might secure business. The procedures used by the government can be found in the  Federal Acquisition Regulation (FAR). 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 award of the contract. 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. Register For SAM SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you… Continue reading Small Business Contracting Challenges

DCAA Approval The Defense Contract Management Agency (DCMA)  helps define business systems requirements and provides direction on audits and approval criteria. Potential government contractors need to understand this agency as they define the approval criteria for awarding contracts. They also have a strong hand in guiding government audits. Speaking with them will help you with the following: direct and indirect cost segregation cost pools and allocation bases timekeeping labor distribution systems maintaining compliance with invoicing clauses avast and ever-changing complex of other issues Have A Clear Understanding Of The Government’s Accounting Requirements The Financial Accounting Standards Board (FASB) states that contractors must comply with the following in order to work with the government: Federal Acquisition Regulations (FAR) Cost Accounting Standards FAR agency supplements Understanding Audits Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following: timeliness of payments to subcontractors documentation of contractor oversight of subcontractors documentation of enforcement of flow downs documentation of support for subcontractor billings documentation of subcontractor reviews 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 have a lot of experience in the field. FFP Level-of-Effort This government contract is defined by the level of effort the service provider will commit to the project, rather than results. It is a common contract used for things like research, which is often hard to define in advance. FFP Materials Reimbursement The small business provider will have a predetermined price for service and labor but is reimbursed for the cost of the materials at the end of the project. This contract is often used for repair services where at the beginning, the cost of materials may be unclear. 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 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 along with 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. 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 propose in response to the government’s 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 for the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill out. As for the required documents, they are listed in the solicitation Contact your contracting officer if you have questions. You must understand a 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. The First Step Is Registering With SAM To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the typesSAM 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. 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.