Author: Dona Basu

What Does This Mean For Small Businesses That Want To Be Government Contractors? The Federal government must also set aside a certain amount of contracts for small businesses. At least 23 percent of government contracts will be awarded to small businesses. Smaller companies do not have to worry about being outcompeted by large companies with unlimited resources. 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 dismiss 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. Understanding The Marketplace, It might initially feel like working for the government is very 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 a solid client that can assure your business of a bright future. Government Funding As we have stated before, the United States government is one of the wealthiest and most 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 ensure your voice is heard. Small Business Administration Certifications A Small Business Administration certification is a great way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) Networking 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 obtaining contracts from various agencies.  This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to define your company better. 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, no longer than a 30-second elevator ride. Do Your Research Once you have selected some agencies that need 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 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 detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, which details how government money is spent, the agency issuing awards, and who the federal government buys from. How Do I Get On A Schedule Collect all the documents you need and submit them to the GSA. A procurement officer will review your paperwork and either approve or decline your submission. This process requires some attention to detail. Innovation Is Key The government needs to be very careful about how they handle money that is provided by taxpayers. They ensure 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 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 proven in the private sector. 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… Continue reading Understanding Government Contracting Regulations

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. Consolidated Purchasing Programs Like any other organization, the federal government has everyday purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies.  For this reason, it made sense to centralize purchasing various standard products and services. Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts. These arrangements help obtain long-term vendor agreements with fewer vendors. The GWACs have become popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action. Agencies can now award multiple task orders 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. Counseling The government also offers more personalized guidance through counseling. There are also commercial counseling programs. The Procurement Technical Assistance Centers or PTACs offer valuable assistance to small businesses. They can be found in educational institutions. These counselors are well known for their expertise. There is also a government-backed membership organization called the National Contracts Management Association.  The PTACs help small businesses locate marketing opportunities and assist with various e-commerce issues. They can also help you prepare financial reports, procurement forms, and contractual paperwork and provide guidance on quality assurance. Most of their services are free though there can be a nominal charge for services such as electronic bid matching. You can contact one of the regional directors at The Association of Procurement Technical Assistance Centers for more information. In addition, the website www.sellingtothegovernment.net could help you to locate a PTAC near you. National Contracts Management Association The National Contracts Management Association (NCMA) is a government-supported organization that started years ago (1959). It was started to help companies do business with the federal government. The organization provides certification programs and educational seminars for small businesses. They also print a monthly magazine called Contract Management. The fee for new membership is $120 and can be renewed at $100 per year. Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study the government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal. Government Contracts Can Be Very Lucrative For Small Businesses The United States government issues 500 billion dollars in federal contracts 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.  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.

Being a government contractor can be extremely lucrative. However, you should have a strong understanding of government procedures and processes. We will name some things that all contractors should be aware of in order to be successful. Procurement Government procurement has always been a part of 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. 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. Be Strategic In Which Agencies That You Target Covid-19 had not had a major impact on government spending. In 2020, there have been over 1.55 trillion dollars spent on just Covid response efforts. This increase in spending has actually made the budgets for 2021 higher for several agencies. The Department of Defense has increased its budget by 800 million dollars when compared to 2020. NASA has requested a 12 percent increase in its agency funding and the Veteran Administration agencies have asked for 14 percent more money in 2021. It is a great idea to strategically target agencies that are experiencing this type of budget boom in order 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 that are over 50 years old? Some are still using 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 that 100 hundred million dollars be allocated to modernizing the federal government Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act also then 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. Do Your Research Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online. At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when will they be held Inquire how your company’s products/services could help with the agency’s missions Request meetings with Agency Program managers leading the contract requirements you’re pursuing If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from. The Capability Statement Capability statements are essential marketing tools.  These written documents state your firm’s abilities in a clear and compact manner. This should include a company overview, past performance, and how you can fill a need for the agency. To stand out from other businesses, be sure to tailor your statement to specifically match the project and/or agency needs. Do Not Give Up! At some point, the process can be a little overwhelming. You must keep in mind that the reward will definitely be worth all the effort. According to the American Express OPEN survey, 57% of businesses said their revenue has grown significantly because of government contracting, and at an average rate of 61%. However, business owners should keep in mind there is no secret formula for securing a contract. Make Sure You Have Your CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM. Register For SAM SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations… Continue reading Is Your Business Ready For Government Contracting?

What Is a subcontractor? A government subcontractor is defined by Federal Acquisition Regulation (FAR) 3.502-1 as: Any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract and 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 enter into an agreement with the prime contractor (prime) to provide goods and /or services to the prime for them to be able to fulfill the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience with government contracting and build their reputation with various government agencies. Useful Definitions Prime contractor — The business wins to bid for a contract with the government. Higher-tier subcontractor — a subcontractor that also contracts other subcontractors to perform services or provide supplies in order to complete work for the contracts they have entered into with prime contractors. Consultants — It is easy to confuse consultants with subcontractors. Consultant services are defined by Federal Acquisition Regulation (FAR) as “rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Examples include those services acquired by a contractor or subcontractor in order to enhance their legal, economic, financial, or technical positions. Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.” 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, if you are a fairly new business, it might be wiser to begin as a government subcontractor.  This means that you are working with a Prime Contractor that is working 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.  So, How Does A Small Business Successfully Start Relationships With Key Government Contractors? The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms that are commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows to better understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill. 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 a great 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 what their needs are for their current jobs for the government. This is a great tool for you to identify a prime contractor that will make a good match for your business. Do Research On The Company That You Have Chosen The prime contractor’s website is a great source of information. This will help you understand their company better which always makes a great impression. After you learn about the prime, determine the product or service you can provide to fulfill their needs for the government contract. Clearly articulate what you offer and how you are the most cost-effective option for the prime contractor. Develop A Strategy Do not be too broad about what your company can do. This will make you seem unfocused. Specifically, outline to the prime contractor how you are the best choice for the job. Make sure you clearly define your niche. Make Sure You Have The Proper Documentation It is important to make sure that all of your licenses and liability insurance paperwork is in order. Prime contractors favor subs that are organized and run on precision. Also, prepare a Capability Statement. This is the marketing one-pager you need as a government contractor or subcontractor to describe your services. Subcontracting is an excellent way to begin working with the government and a lucrative avenue for profitability for any small business. How Does A Small Business Become A Subcontractor? One of the first things that one needs to do is to be registered with  SAM. SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in 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. Closing The Deal Request a visit with the prime contractor. Make sure that you prepare a presentation that will highlight why you are the right fit for the project. This is also time to meet the administrative people that you might be closely working with in the future. Ask them for overviews of past contracts and give them an audit for how your company can help them improve their bottom line.  Make sure you keep the presentation short and simple. Prove to the prime contractors of your reliability by… Continue reading Why Small Businesses Should Consider Being Government Subcontractors

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.  Each year, the Federal Government spends billions of dollars on the construction of roads, schools, and other public infrastructure. This is a great field to pursue that will not be slowing down anytime soon due to the recent pandemic. Why Work For The Government? There are many compelling reasons to work for the Federal Government.  We will go into in-depth detail about how a small business can benefit greatly from being a government contractor. Websites That Help Your Business Find Contracting Jobs 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. Here is a list of websites that are provided by the government to help small businesses obtain contracting information. FedBizOpps (Federal Business Opportunities): This is the spot for government procurement opportunities of $25,000 or more. Here, buyers for the government are able to publicize their business opportunities by posting information directly to FedBizOpps and commercial companies looking to do business with the government are able to find opportunities solicited by the entire federal contracting community. (http://www.fbo.gov) Small Business Administration (SBA): This site has a great deal of information pertaining to small businesses as well as SBA-Net, a gateway to opportunities, and a great place to network. It has a direct connection to the CCR database, which is fast becoming the sole database used by government buyers to locate potential small business contractors. Procurement Gateway: This is the Defense Logistics Agency site for all opportunities posted from its procurement offices. The defense department is one of the largest consumers of goods and services in the government. Their procurement department is encouraged to work with small businesses and this can be a very lucrative opportunity for a lot of small to midsize companies. Federal Acquisition Jumpstation: This site has most links to the federal sites that small business owners would be smart to explore Recovery.gov – This particular government website provides easy access to important data related to the Recovery Act  and allows for the reporting of potential fraud, abuse, and other types of government waste E-Verify – This is a handy website in which employers can determine if an employee is eligible to work in the United States based on information reported on the employee’s I-9 form.  USA.gov – This site is all-encompassing and has a lot to offer small businesses. It is a gateway to other government websites that can be very important to small businesses. This is the place to find info on how to do business with the federal government, Data and Statistics, Laws, and Regulations. FedWorld– This system contains the full text of 7,407 U.S. Supreme Court Decisions from 1937 to 1975. Decisions are available as ASCII text files that can be read on your browser’s screen or saved to your hard drive and accessed by using most word processor programs. It often also has a listing of government jobs Department of Veteran Affairs–This government agency is particularly helpful to assist veteran-owned small businesses in obtaining federal contracting opportunities. Library of Congress–This is a guide to finding information on federal government contracting. It is intended for anyone, from novice contractors to those who have more experience with working with the government. Included are statistical sources, news sources, and administrative sources. The Federal Government Has Government Personnel That Are Strictly Utilized to Help Small Businesses Be More Competitive In Securing Government Contracts Here are some examples: SBA Procurement Center Representative (PCR): Procurement Center Representatives are often located at a major government buying office, even though they technically work for the Small Business Administration. They will identify items and services that could be produced or provided by small businesses and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.  Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the major buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can prove to be burdensome. They also try to expand competition for items by offering challenges to requirements that are not deemed necessary for the performance or essential physical characteristics.  Small Business Specialists (SBS): The law requires that every government buying location must have a Small Business Specialist. These specialists work specifically with small businesses to help them to do business with that office. Larger government offices might have full staff while smaller offices might only have one part-time employee assigned to this role. Major government buying offices have full-time staff, while smaller offices have a part-time person assigned to that task.  SBA Commercial Marketing Representative (CMR): Commercial Marketing Representatives keep track of large companies doing work for their departments. These representatives are often the go-to person for fantastic subcontracting opportunities for small businesses.  Register With 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. How Do You Get Started Working With The Government? For example,… Continue reading Why Small Businesses Should Consider Being Construction Contractors

Remember Registration With The SAM Directory Is The Vital First Step SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory. Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Understanding The Marketplace It might at first feel like working for the government is very unpredictable. Contractors can be affected by a variety of factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules. However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use their products and services. This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee you the federal government as a solid client that can assure your business of a bright future. 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 find out 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 made up of 29 agencies and have 4,500 locations across the United States and abroad.  Obviously they have a great need for agriculture-based suppliers and services. However, many businesses do not 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 Manages the procurement operation functions 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 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 leaving 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. 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 types of government agencies. Department Of Defense The Department of Defense is one of the largest consumers of government contracts in the world? Many companies think that this agency is only contracting with giant companies that supply tanks and missiles. Remember, the Department of Defense supplies the Army, Navy, Airforce, and many other defense agencies. They are very open to working with small businesses and are fully funded for the rest of this year. In fact, 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 find out more information about contracting and subcontracting opportunities. Here are just some of the agencies that need everything from educational materials to custodial… Continue reading Agencies Small Businesses Should Consider For Government Contracting

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, it might be wiser to begin as a government subcontractor if you are a reasonably 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. In addition, it enables you to assess how ready your business is to take on the challenge of government contracting.  What Is A Government Contractor? The United States Government is made up of several agencies that require a variety of services. These agencies then offer contacts to private companies across several industries to fulfill these needs. Private contractors are vital in helping the government provide services for the welfare and protection of United States citizens. Private government contractors provide goods and services for the following:  Medical Services Utilities Construction Supplies for various projects Engineering Defense Intellectual Technology Energy These are just a few of the categories that are often contracted out to private independent companies through the awarding of government contracts. 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 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.” 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 been written in the SAM directory. Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process easy for you. In addition, 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 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 what their needs are for their current jobs for the government. This is an excellent tool for identifying a prime contractor that will make a good match for your business. 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 that 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. Remember That You Are Forming A Long-Term Relationship, And This Is Not Just A One-Time Gig You want to develop a strong alliance with the prime contractor’s company. It is on you to suggest teaming arrangements that will benefit your businesses. Make sure the understanding helps promote your company to other prime contractors and the government agency that is funding the project.

The Government Can Really Increase The Standing Of A New Business The government is one of the most powerful consumers in the world. Being a government contractor is a wonderful way for any new business to grow its reputation in the digital marketplace as well as other forms of advertising. It is a fantastic way to build a strong reputation in a relatively short amount of time. 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 new struggling businesses who are trying to survive this unprecedented situation. Why Work For The Government? There are many compelling reasons to work for the Federal Government.  We will detail how a small business can benefit greatly 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.  Can A New Small Business Really Compete For 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 2019 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 United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout. The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace. Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. 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. Therefore, ensuring the government contracts are fulfilled is an excellent way for a new small business to streamline its process and delivery methods. Working With The Government Is Great For Marketing The government is one of the most powerful consumers in the world. Being a government contractor is a beautiful way for any business to grow its reputation in the digital marketplace as well as in other forms of advertising. It is a fantastic way to build a strong reputation in a relatively short time. 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. In addition, the government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. As a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step to becoming 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 Is A Federal Grant? A grant may be a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs within the Catalog of Federal Domestic Assistance (CFDA). The following are the steps to apply… Continue reading Why New Businesses Should Consider Government Contracting

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. Department Of Defense The Department of Defense is one of the world’s largest consumers of government contracts? However, 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. In addition, 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 significant technological innovations came out of this branch of the government. This includes the internet, which is 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 not only a noble pursuit, but it allows you to gain a distinct advantage over other civilian tech companies. Amazing Benefits The Department of Defense is known for providing excellent benefits.  Here is a list of some of the great perks of working with this organization: Paid Time Off that can increase every year Tuition Reimbursement Short and Long-Term Disability Life insurance with family options Excellent Medical and Dental benefits Never Underestimate The Power Of Relationships As part of understanding your customer, building solid relationships is essential. The government is not a giant cold, faceless entity. People will appreciate the opportunity to speak to you. An impressive interview might win you a supporter that will lobby in favor. A Fantastic Presentation Is The Key To Success Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is essential 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 ubiquitous for companies that want to work for the United States government, which is not your typical audience. Therefore, you might not get the greeting and niceties of this business meeting. The government employees are not allowed to react to anything. You should see no feedback until the question and answer period. 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 have a fixed timeline and a payment schedule already in place. This means no insane 12-hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having realistic milestones that are attainable. 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. Doing Work That Matters Remember, working for the Department of Defense means that you are actively helping protect the American way of life. The United States is a proud nation that is unique in the opportunities it can offer its citizens. So your company can feel good about working for an organization that keeps our country safe. 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. In addition, the government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. As a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step to becoming 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!

Understanding The Federal Contracting System General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. As a result, the United States government needs everything and is a super consumer worth 500 billion dollars. The government uses schedules to purchase goods and services. When there is a need in an agency, it is called a schedule award. A company needs to bid for the award. Once the award is won, it signifies a signed contract between the business and the government. This means that learning how to bid for these government contracts is extremely important to succeed with this lucrative customer. 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 written in the SAM directory. Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process easy for you. In addition, Sam Directory will happily guide you through this often confusing process. 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, review it carefully. Find out what the purchasing office wants to buy and determine if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information, including name, address, phone number, and e-mail address, are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. Where Do You Find Government Contracts For Bidding Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts above $25,000 on SAM.gov. This means that there are many contracts advertised there at any given time. Contact a procurement officer for information on contracts below the $25,000 threshold for publishing. Look To Your Local PTAC Office Procurement Technical Assistance Centers PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets specific criteria to work with the government. You can also find out if your business can be certified as 8(a), WOSB., or HUBZone. New Bidding Techniques Auction — A government buying technique where the bidding continues until no competitor is willing to submit a far better (i.e., lower) bid. The method is usually mentioned as “reverse auction” because the govt is trying to find a rock bottom price, not the very best price. It is essential to research and ensure you can cover your costs in an auction process. However, do not get caught up in the moment’s excitement and make calm rational decisions. Bundling — a way where the government consolidates two or more requirements commonly bought separately into one contract. The support contracts of the many military bases, which require a spread of labor disciplines to stay at the bottom operating, are being bid in this manner. In bundling, make sure that you carefully read all the provisions. It is essential not to ignore the project management aspect of this type of bidding. 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 primarily to research the market and evaluate the interest and capabilities of contractors in a specific niche. Be sure you read the solicitation requirements carefully. A solicitation package will include documents, technical conditions, attachments, and more. There are standard contracting forms for most federal government contracts under RFP and IFB solicitations. As for needed documents, they are listed in the solicitation. Contact your contracting officer if you have questions. You must understand everything about the solicitation you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to ensure you know the regulations and requirements. Small Business Administration Certifications A Small Business Administration certification is an excellent way for your business to stand out in the marketplace. Certifications can help you access specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) Networking Sometimes the most challenging step is getting your foot in the door. Networking is vital 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 obtaining contracts from various agencies.  This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to define your company better. 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, no longer than a 30-second elevator ride.