Author: Dona Basu

Understanding The Marketplace It might initially feel like working for the government is unpredictable. Contractors can be affected by various factors, such as budget cuts, regulatory pressures, changes in administration, and stringent accounting rules. However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to ensure 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 the federal government as a solid client that can assure your business of a bright future. 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. How Do I Know Government Contracting Is Right for My Company? 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 to get ahead and obtain some very lucrative contracts. Cloud Computing More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies rely on cloud computing to maintain multiple copies of the data to mitigate security threats, data loss, and data breaches. The government is no exception. They understand that cloud computing will lower costs significantly and help them manage their data more efficiently. Small businesses that understand cloud computing should be in a very good position to cash in on this new wave of data management architecture. Cyber Security As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefield. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines. Cybersecurity will also be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand. The Department Of Health And Human Services The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19. This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get its foot in the door with many other types of government agencies. Department of Energy The Department of Energy defines its mission as “…. to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.” The Department of Energy has a network of 36 Facility Management Contracts.  They include the following: Office of Energy Efficiency and Renewable Energy Office of Environmental Management Office of Fossil Energy Office of Nuclear Energy Office of Science National Nuclear Security Administration This provides many opportunities for contractors that have energy management capabilities and supplies. Reforms In Security Clearances There will be a complete overhaul of the Department of Defense’s clearance process, which will affect all government agencies in 2021. Government contractors need 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 ensure that all your personnel and employees pass this intensive screening. If there are any issues, ensure the government is aware of them ahead of time so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts. Blockchain Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks, are added. All the blocks contain timestamp information linking them to previous blocks, thus creating a chain. This allows for no data block to be altered without altering all the blocks that came before it. The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016, and it should be a very lucrative avenue for many small businesses.  Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security to develop new technologies to address upcoming threats. In 2020,  small business contractors can use Innovation OTS to form government partnerships and provide innovative technologies. 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 aside 23 billion dollars… Continue reading Areas Small Businesses Can Pursue Government Contracts In 2023

What Is A subcontractor? A government subcontractor is defined by Federal Acquisition Regulation (FAR) 3.502-1 as: Any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with the such prime contract and included any person who offers to furnish or furnishes general supplies to the prime contract or a higher tier subcontractor. A prime contractor contracts directly with the client, which in this case is the federal government.  The subcontractor would agree with the prime contractor (prime) to provide goods and /or services to the prime for them to be able to fulfill the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience with government contracting and build their reputation with various government agencies. How Does A Small Business Become A Subcontractor? One of the first things one needs to do is register with  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 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, 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 easy for you. Sam Directory will happily guide you through this often confusing process. So, How Does A Small Business Successfully Start Relationships With Key Government Contractors? The first step is to become familiar with the government marketplace. Do your research and become familiar with the commonly used terms in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows to better understand the needs of particular government and state agencies. This will help you identify prime contractors’ needs and any niches your business could fill. Subcontracting Can Be A Great Opportunity To Get Into Working With The Government We have already discussed how the United States government is one of the most powerful consumers on the planet, and government contracting is a lucrative billion-dollar marketplace. However, beginning as a government subcontractor might be wiser if you are a fairly new business.  This means that you are working with a Prime Contractor who works directly with the government instead of the government itself. A good working relationship with a prime contractor can help you gain experience and knowledge that is always valuable to young companies. It helps you assess how ready your business is to take on the challenge of government contracting.  Subcontracting Has Many Advantages For Less Experienced Businesses 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 important government projects. Subcontracting Has Many Advantages For Less Experienced Businesses Subcontracting with a prime contractor rather than the government means you do not have to worry about the strict rules and regulations 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. Federal Contracting Also Makes Prime Contractors Want To Seek Out Traditionally Disadvantaged Businesses This means that prime contractors are looking for qualified businesses that women, minorities, and veterans own. This provides these groups with federal contracting opportunities that might not be available in other markets. Also, it is not unusual for prime contractors to be very loyal to their subcontractors and give them several avenues for repeat business. These are unique relationships, and firms should develop a strategy for approaching these potential partners. Useful Definitions Prime contractor — The business wins to bid for a contract with the government. Higher-tier subcontractor — a subcontractor that contracts other subcontractors to perform services or provide supplies to complete work for the contracts they have entered into with prime contractors. Consultants — It is easy to confuse consultants with subcontractors. Consultant services are defined by Federal Acquisition Regulation (FAR) as “rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Examples include those services acquired by a contractor or subcontractor to enhance their legal, economic, financial, or technical positions. Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.” So, How Does A Small Business Successfully Start Relationships With Key Government Contractors? The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows better to understand the needs of particular government and state agencies. This will help you identify prime contractors’ needs and any niches your business could fill. Locate Key Prime Contractors Federal prime contractors can be found at this Small Business Administration site at this site: https://www.sba.gov/document/support–directory-federal-government-prime-contractors-subcontracting-plans. This directory is an excellent place for small businesses to find prime contractors who are looking to fill subcontracting requirements for government contracts. Companies can also go to http://web.sba.gov/subnet/ to find prime contractors who directly announce their needs for their current government jobs. This is an excellent tool for identifying a prime contractor that will make a good match for your business. Develop A Strategy Be… Continue reading Why Small Businesses Should Consider Subcontracting In 2023

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 for underserved groups to have a real chance to get awarded lucrative government contracts. Department Of Defense The Department of Defense is one of the world’s largest consumers of government contracts. Many companies think this agency only contracts with giant companies supplying tanks and missiles. Remember, the Department of Defense supplies the Army, Navy, Airforce, and many other defense agencies. They are open to working with small businesses and are fully funded for the rest of this year. They try to reward at least 20% of their contract to Small businesses. Companies can go to https://business.defense.gov/Small-Business/DoD-Small-Business-Offices/ to learn more about contracting and subcontracting opportunities.  Innovation and Technology We must remember that some great technological innovations came out of this branch of the government. This includes the internet, a vital part of our lives, and has changed how we view the world.  The Internet was initially a DARPA, the Defense Advanced Research Projects Agency project, GPS, the cell phone, the computer mouse, and drones.  Being a defense contractor means that you are on the cutting edge of tomorrow’s technology. This is a noble pursuit and allows you to gain a distinct advantage over other civilian tech companies. Job Security And Work-Life Balance Startups might sound glamorous, but they are far from secure. The statistics say: 90% of new startups fail. 75% of venture-backed startups fail. Under 50% of companies make it to their fifth year. 33% of startups make it to the 10-year mark. Only 40% of startups turn a profit. 82% of companies that fail do so due to income problems. The highest failure rate occurs within the information industry (63%). In defense contracting, you are under a pressure cooker to get a product to market and under the control of nervous financiers.  Instead, you already have a fixed timeline and payment schedule. This means no insane 12-hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having attainable milestones. Opportunities For Diversity 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. How Do You Get Started Working With The Government? 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 businesses that have 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 in the Catalog of Federal Domestic Assistance (CFDA). A grant is different from a loan because it is money your business does not have to pay back. So, registering for the SAM directory gives you access to free money! 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 it. It is a bit like a social security number for your business. You will need multiple CAGE codes if your business includes more than one facility. Each location must have its unique code, and each location must be registered separately with SAM. Never Underestimate The Power Of Relationships As part of understanding your customer, building strong relationships with government agencies is very important. 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. A Fantastic Presentation Is The Key To Success Having a good presentation is vital to winning over the federal government. You want to make an excellent impression beyond 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 need more support.  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 need to get the greeting and niceties that usually come with this business meeting. 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.

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 Federal Emergency Management Agency (FEMA) FEMA is a government agency that handles disasters such as tornadoes, earthquakes,  and hurricanes. They are always hiring government contractors, particularly since much of their work revolves around being able to mobilize a large workforce in a relatively short period of time. These jobs can range from providing temporary housing to the displaced to providing clean water and food to those in need. Go to this site to learn more about small businesses working with FEMA. FEMA is also part of the Department of Homeland Security. This is another agency that has many contracting opportunities. Just go to https://www.dhs.gov/do-business-dhs to learn more about this agency. The United States Department Of Agriculture (USDA) The USDA is in charge of food, agriculture, rural development, and natural resources just to name a few of its responsibilities. They are comprised of 29 agencies and have 4,500 locations across the United States and abroad.  They have a great need for agriculture-based suppliers and services. However, many businesses need to realize that they also have construction jobs, like road repair, for their forestry department. Here is a list of some of their divisions: Environment Management Division Response and Restoration, Sustainable Practices, BioPreferred Property Management Division Real Property, Personal Property, and Fleet Management Procurement Policy Division Policy and Regulations, Acquisition Workforce, and Special Procurement Programs Procurement Operations Division Manage procurement operations to acquire supplies and services for Departmental Management, Staff Offices, and USDA Department-wide procurements. Procurement Systems Division Management of USDA’s Automated Procurement System, Integrated Acquisition System (IAS) Safety & Health Management Division Workers’ Compensation and Safe Working Conditions Credit Card Services Center Purchase, Fleet, and Travel Cards Lease Accountability and Strategy Division Department of Energy The Department of Energy defines its mission as “…. to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.” The Department of Energy has a network of 36 Facility Management Contracts.  They include the following: Office of Energy Efficiency and Renewable Energy Office of Environmental Management Office of Fossil Energy Office of Nuclear Energy Office of Science National Nuclear Security Administration This provides many opportunities for contractors that have energy management capabilities and supplies. The Department Of Health And Human Services The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19. This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get their foot in the door with many other government agencies. Department Of Defense The Department of Defense is one of the world’s largest consumers of government contracts. Many companies think this agency is only contracting with giant companies supplying tanks and missiles. Remember, the Department of Defense supplies the Army, Navy, Airforce, and many other defense agencies. They are open to working with small businesses and fully funded for the rest of this year. They try to reward at least 20% of their contract to Small businesses. Companies can go to. Peace Corps The mission of the Peace Corps “Is to promote world peace and friendship by fulfilling three goals: 1) to help the people of interested countries in meeting their need for trained men and women; 2) to help promote a better understanding of Americans on the part of the peoples served, and 3) to help promote a better a better understanding of other peoples on the part of Americans.” This agency needs everything from supplies for rural living to emergency first aid equipment. Go to https://www.peacecorps.gov/about/open-government/contracts/ and contact the Office of Acquisition and Contract Management with any questions about contracting with this organization. This Is Only The Tip Of The Iceberg 10 other departments in the federal government contain hundreds of agencies. These places have a wide variety of needs that small businesses can easily fill. Working with one agency often opens the door to other departments, making the scope of opportunities endless. How To Search We highly recommend you go to FBO.gov (also known as FedBizOpps.gov). This is a centralized search where you can find many government contracting jobs from just about any federal agency. Remember SAM To do 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, 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 easy for you. Sam Directory will happily guide you through this often confusing process. 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… Continue reading Agencies That Are Needing Government Contractors In 2023

Consolidated Purchasing Programs 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 purchasing various 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. Cyber Security As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefield. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines. Cybersecurity will also be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand. The Department Of Health And Human Services The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19. This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get their foot in the door with many other government agencies. Blockchain Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks. All blocks contain timestamp information linking them to previous blocks, thus creating a chain. This allows no data block to be altered without altering it. The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016 and it should be a very lucrative avenue for many small businesses.  Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security to develop new technologies to address upcoming threats. In 2020,  small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies. Cloud Computing More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies are relying on cloud computing to maintain multiple copies of the data to mitigate instances of security threats, data loss, and data breaches. The government is no exception. They understand that cloud computing will lower costs significantly and help them manage their data more efficiently. Small businesses that understand cloud computing should be in a very good position to cash in on this new wave of data management architecture. The Department Of Health And Human Services The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19. This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get their foot in the door with many other government agencies. Infrastructure Construction At least 21 billion dollars are allocated for infrastructure spending by the federal government. The United States is a vast land of highways, roads, bridges, and dams. All of these structures need to be constantly maintained for safety and to fuel a strong vibrant economy. The country also needs to construct new infrastructure to keep up with the needs of a growing population. Government Funding As we have stated before, the United States government is one of the world’s wealthiest and most powerful clients. 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 many contracts for those developing energy alternatives. If a new administration that values different things comes into power, then the funding for alternative energy initiatives might decrease. One of the best ways to combat this is by supporting politicians who understand and promote your business. It is important to keep an eye on the political atmosphere and ensure your voice is heard. How Do You Get Started Working With The Government? 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 businesses that have 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… Continue reading What Is On The Horizon For Small Businesses Government Contractors In 2022

Things To Do Before The Requests For Proposal Or 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… Continue reading How To Be Successful In Getting Government Contracting Jobs For Small Businesses

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 need to justify spending to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business. The Integrity Of The Procurement Process All bidders on government contracts must have equal access to any information needed to create a comprehensive bidding package. A company bidding on a federal contract may not receive information that is not public to provide an unfair competitive advantage in the field. This includes things like an innocent email accidentally going to the wrong person. Contingent Fees A government contractor is not allowed to 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. 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 any purchase less than $100,000. Now agencies use much simpler procedures for analyzing and soliciting bids up to the $100,000 amount. 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 in price and quality. Purchases not exceeding $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. Contracting Officers The Federal Government always conducts any procurement business through contracting officers. These contracting officers have the authority to bind the government to a contract unless otherwise stated in writing. Make sure that the person you are dealing with is the contracting officer authorized to represent the agency or office that will award the contract. Procurement Government procurement has always been advancing many national, economic, and social objectives. Government contractors must comply with the rules and regulations of labor standard statutes. This will include the Service Contract Act, Contract Work Hours and Safety Standards Act, and other statutory requirements that further socio-economic objectives, except for certain contracts where such legislation is specifically stated as non-applicable. Bidding The government usually makes sure contracts are competitive through 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 the government procures. 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 when designated in the invitation. The bids are read aloud and then recorded. The contract will be rewarded to the bidder with the most competitive pricing and can meet the government agency’s requirements.  Government-wide IFBs can be found at FedBizOpps, which links directly to the invitation. Potential contractors can search the Central Contractor Registration to identify qualified small business opportunities. Any small business that wants to sell to the government should be registered on CCR. 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 aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.  Sam Directory will guide you through the process of writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract. Make Sure You Have Your 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 it. It is a bit like a social security number for your business. You will need multiple CAGE codes if your business includes more than one facility. Each location must have its unique code, and each must be registered separately with SAM. How Do You Get Started Working With The Government? 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 businesses that have 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… Continue reading Why Small Businesses Need To Care About Compliance As Government Contractors

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. 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. Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing this forecasting tool that lets you see available opportunities. 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. 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 when 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 can only obtain offers from one or more small businesses that are competitive in 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. Get The Bid Package After you have ascertained the government contract you want to bid on, you must contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, could you 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 buyer’s contact information, including name, address, phone number, and e-mail address 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 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. 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 need to justify spending to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business. The Integrity Of The Procurement Process All bidders on government contracts must have equal access to any information needed to create a comprehensive bidding package. A company bidding on a federal contract may not receive information that is not public to provide an unfair competitive advantage in the field. This includes things like an innocent email accidentally going to the wrong person. Make Sure You Have Your 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 it. It is a bit like a social security number for your business. You will need multiple CAGE codes if your business includes more than one facility. Each location must have its unique code, and each must be registered separately with SAM. How Do You Get Started Working With The Government? 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… Continue reading Understanding The Process Of Government Contracting

The Federal Government Offers Great Opportunities For Many Types Of Businesses Small businesses are the economy’s lifeblood. 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. 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. Networking Sometimes, the hardest step is getting your foot in the door. Networking is extremely important when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events throughout the year. These events are usually at  no cost to business owners and can offer a treasure trove of information about how to obtain contracts from various agencies.  This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to better define your company. This speech explains what your business has to offer and how you can help another organization meet its goals. It should be short and simple, a 30-second elevator ride at maximum. The Federal Government Has Government Personnel That Are Strictly Utilized to Help Small Businesses Be More Competitive In Securing Government Contracts Here are some examples: SBA Procurement Center Representative (PCR): Procurement Center Representatives are often located at a significant government buying office, even though they technically work for the Small Business Administration. They will identify items and services that small businesses could produce or provide and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.  Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the significant buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can prove to be burdensome. They also try to expand competition for items by offering challenges to requirements that are not deemed necessary for the performance or essential physical characteristics.  Small Business Specialists (SBS): The law requires every government buying location to have a Small Business Specialist. These specialists work with small businesses to help them do business with that office. Larger government offices might have entire staff, while smaller offices might only have a part-time person assigned to that task. Central government buying offices have full-time staff, while smaller offices have a part-time person assigned to that task.  SBA Commercial Marketing Representative (CMR): Commercial Marketing Representatives keep track of large companies working for their departments. These representatives are often the go-to for fantastic small business subcontracting opportunities.  It is wise to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to obtain government contracts. The First Step Is Registering With SAM To do 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 registered 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 easy for you. In addition, 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. 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 below the $25,000 threshold for publishing. Simplified Procedures In 1994 the Federal Acquisition Act 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 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 in price and quality. Purchases not exceeding $2,500 individually or through 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. 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. 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.  Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing this forecasting tool that lets you see available… Continue reading How Small Businesses Can Become Government Contracting Ninjas

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. 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 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. How Do I Know Being A Government Contractor Is Right For My Company? 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. What Qualifies As A Small Business? 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 to qualify for government contracts is to register with the SAM Directory. What Is The SAM Directory? 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 not hire any business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. Luckily our site takes this headache off your hands. You can leave this important step to the experts at Sam Directory so you can concentrate on more important matters. The best part is once you register, you will no longer have to keep re-entering important information every time you apply for a new government opportunity. 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 To qualify for the five percent of the contracts reserved for minority-owned or disadvantaged businesses, one must be certified by the government. This means a business is giving up 24 billion dollars 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. 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 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; 3 percent of prime and subcontracts are reserved for service-disabled veteran-owned 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 have access to almost unlimited resources. This set aside 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 United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends around 500 billion dollars yearly on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this spending power and clout. The government also tends to buy… Continue reading How Diversity Is Encouraged In Federal Government Contracting