Author: Dona Basu

The Government Is Required To Set Aside A Certain Percentage Of Contracts For Women-Owned Small Businesses At least five percent of government contracts have to be awarded to women-owned small businesses. To qualify for these set-asides, a business must have the following: Meet small business size standard for primary NAICS code and contract At least 51% unconditionally and directly owned by women who are U.S. citizens* The woman must manage the day-to-day operations The woman must make long-term decisions for the business A woman must hold the highest officer position The woman must work at the business full-time during normal working hours To qualify as economically disadvantaged through the EDWOSB program, a woman must meet these requirements: Have a personal net worth of $750,000 or less. The fair market value of all assets must be $6 million or less. Have an adjusted gross yearly income (averaged over the three years before the certification) of less than $350,000.  Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. What Qualifies As A Small Business? 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. Make Sure You Receive Certification To be eligible to compete for woman-owned small business set-asides or receive sole-source awards, you must either be certified by a Small Business Administration (SBA) approved Third-Party Certifier (TPC), OR self-certify following current SBA regulations. There are currently four SBA-approved TPCs. They are:        El Paso Hispanic Chamber of Commerce        National Women Business Owners Corporation        US Women’s Chamber of Commerce        Women’s Business Enterprise National Council (WBENC) You can learn more about the requirements for the government’s woman-owned small business certification requirements on the SBA’s website. Being an entrepreneur is exciting but also presents its unique challenges. Financing can be a significant obstacle that is often not easy to overcome. However, the more money you have at your disposal, the more options available to make sure your business is on the right path to success. Unfortunately, many companies never properly explore the field of government grants. Instead, they assume they do not qualify for grants and never even try to apply. Registering With SAM Directory Also Gives You Access To Valuable Grants Government grants are similar to free money from the government that you do not have to pay back. However, you have to register in SAM before applying for Federal Grants. For example, here is a listing of the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant Read our article, Government Grants, A Guide to Free Money! to learn more about how registering for SAM can help provide great funding opportunities for your business. What is a Government Grant? A government grant is a financial award given by the federal, state, or local government authority for a worthwhile project. It is a gift that does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money. Why is the government giving away free money? Innovation and ingenuity are essential to any society. For any economy to be competitive in the modern world, it must open up avenues to grow and nurture new businesses. To put it simply, the government gives out grants because it serves the greater good to suit the needs of the people. Grants are a great way to even the playing field. We have all heard stories about great entrepreneurs with relatively humble beginnings. Grants are in place because few people have the capital to start a business without some assistance. This is particularly true for minorities and women who might have faced discrimination in the past that hindered them from pursuing their business goals. Here is a listing of the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant The Halstead Grant Is it challenging to obtain a Grant? In truth, grants can be very competitive. It is important to read instructions to understand the application process thoroughly. You do not want your grant application to be thrown out because you did not provide the correct paperwork or information. A small business should also be aware of deadlines. However, please do not let a challenging application dissuade you from trying to qualify for grants. There is nothing more accurate than the saying about never making any of the shots you don’t take. Some websites can help you through the process. What Is The SAM Directory? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on… Continue reading Why Government Contracting Is A Great Opportunity For Women

Protesting A Bid Or Award You must be an interested party, which means a prospective bidder who will be affected by the award economically. This usually means you will receive the award if your protests are sustained. One such challenge would be that the bid was defective. A defective bid can include the following: The omission of a required provision The ambiguity of Important facts Indefinite evaluation factors. The termination of a contract may also be protested if the protest alleges that the termination was based on improprieties in the award of the contract. This means that you can protest the bid, award, or termination of the contract. Make sure that you are very aware of the deadlines set for a protest. Protesting  A Defective Bid These are some common grounds for a defective bid: The bid is not detailed enough or vague: It’s too detailed: SOW too long It’s too restrictive: it uses standards or specs that are not needed. More time is needed to respond. It contains ambiguous statements: which do you want? There are many brand names or equal issues. There are small business issues: such as Hubzone and wrong size standard Failure to meet small business set-asides Procedures Of Protest The government wants to ensure that public funds are utilized in a manner that is fair. This means that protests to solicitations will be handled as quickly and efficiently as possible. So the government encourages all parties to resolve issues with contracting officers of the agency with open discussion. The agency is also encouraged to resolve these matters in a fair and efficient manner. What Of The Timing Of The Protest In The Contracting Process? A protest received before the award of the contract means that the contract will not be awarded until there is a decision on the protest. This is bypassed if the items or services of the contract are urgently needed, and a delay in performance will cause unneeded harm.  If the protest is received within ten days of the award of the contract, then the performance of the contract will be suspended until the protest is resolved. It is on the contracting officer to notify all the other eligible parties affected by this suspension of performance due to the protest. If a protest is received ten days after the contract is awarded, the agency procedures will determine the handling of the protest. The contract performance might not be suspended or terminated in these cases unless it is likely that the award will be invalidated and the delay will not be prejudicial to the government’s interest. General Accounting Office Although it is highly encouraged that companies seek resolution within the contracting agency, if this proves ineffective, then a company can file a protest with the General Accounting Office or GAO.  However, you must understand that if you totally bypass the agency and go to the GAO, then the GAO’s decision is final. This means that you will not be allowed to appeal the GAO, and this ruling will be final. This means that it is usually more advantageous for a company to go through the contracting agency than to go directly to the GAO. Going through the original agency also allows a company more time to gather the information that can help if later protests go to another type of forum. Matters that can not be protested to the GAO: An affirmative determination of responsibility by the contracting officer — A determination that a bidder is capable of performing a contract will not be reviewed unless there is a showing of possible bad faith on the part of government officials or that definitive responsibility criterion in the solicitation was not met. Procurement integrity — Protests not filed within the required time limits Make sure you read the second part of this series to find out more about disputing or protesting a contract award. What Is The Difference Between A Protest vs. A Dispute? A protest involves a defective bid or awarding a contract to a different bidder. In contrast, a dispute consists of an issue with the contracting officer that arises after you have been awarded the government contract. The following are the three Federal Bid protest Levels: Judicial action was brought to the United States Court of Federal Claims (COFC). Protest filed with the (GAO) Government Accountability Office. An agency-Level objection was filed with the agency conducting the procurement. It is important to note that a protest must be filed within ten days after the basis of the rally is known or should be known. Any objections that exceed this 10-day limit will automatically be thrown out. If you want to go forward, you must go to a higher level, like the United States Court of Federal Claims. Decision To Protest If you decide to protest, it is in your best interest to call counsel as soon as possible. Contract law can be very complicated, and it would be an excellent idea to consult with your legal counsel.  If you decide to protest, you have avenues that can guide you through the process.  You can go to your local PTAC to get started in the process and seek legal counsel. You also should familiarize yourself with Part 33.1 of the FAR. This will help you understand the requirements and your rights. Disputes A dispute is when a government contractor has issues or material disagreements related to the contract itself and therefore files a claim. A claim is defined as a demand by one of the contracting parties seeking, as a matter of right, the payment of money, the adjustment or interpretation of contract terms, including the time of performance. This also includes other relief under or relating to the contract.” How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type… Continue reading What Happens When You Disagree With A Government Contracting Decision?

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 or GWACs. These types of arrangements 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. 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. Make Use Of Government-Provided Free Tools You can identify contracting opportunities online by utilizing this forecasting tool that lets you see available options. 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. Things To Do Before The Requests For Proposal Or The RFP Is Released You should always ask the following questions to fully understand how you are going to structure your winning proposal: What is the top priority, quality, price, or speed? What problem can you solve for the government using your product or service? Do you need to team up with anyone else? How is the proposal going to be scored by the agency? What are the agency’s operating policies? Who is the agency’s current contractor for this particular good or service?  The Structure of Government Requests for Proposals Each proposal has three sections: The Scope of Services Instructions- Make sure that you follow all instructions carefully and with precise details Evaluation -This is how the government will score your proposal The Scope of Services This is where you will explain how you plan on completing the work or providing the goods that are being acquired. It is the most important part of the proposal. You must list and provide evidence of core competencies and how you can effectively help the agency reach its desired outcome in the allotted time. This is the time for your business to show your innovation and creativity. You also must remember that the government does not want to waste money and keep your pricing competitive. One of the ways to stand out is by identifying your employees and 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. Simplified Procedures In 1994, the Federal Acquisition Act FASA simplified the buying procedures of the government. Many of the more harsh restrictions on government purchases were removed for any 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 that do not exceed $2,500 individually or combine 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 clear thought-out process goes a long way to impress government agencies that you can handle the job. It presents a professional demeanor that is quite impressive. Sam Directory will guide you through the process of writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract. What is FAR? The FAR is a standardized set of regulations employed by all federal agencies in making purchases. It provides procedures for how to maneuver the procurement process. It takes you through the need for the product and service to the contract award. Government Contracts Can Be Very Lucrative For Small Businesses The United States government issues 500 billion dollars in federal contracts every year. They also set 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 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. What Do I Need To Register For The Sam Directory? You will need the following: A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. What Is A DUNS Number? The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number with a social security number for your business. Any contracting opportunity within the System for Award Management (SAM) will require a DUNS number. CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s your ID code, and government agencies will identify your business using this code. It is a bit like a social security… Continue reading How Small Businesses Can Craft Competitive Government Proposals

The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout. The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace. Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. Important Laws Section 8(d) of the Small Business Act and, in most cases, FAR 19.7 incorporate several laws regarding small business subcontracting. These laws require prime contractors to provide subcontracting opportunities to small businesses. This includes HUBZone small business  Small disadvantaged business  Women-owned small business  Veteran-owned small business (VOSB) Service-disabled VOSB So the government requires that on contract over $500,000 or a million when constructing a public facility, large prime contractors must turn in plans for subcontracting percentage goals for small business, HUBZone small business, small disadvantaged business, women-owned small business, VOSB, and service-disabled VOSB. These plans must describe the methods used to ensure that small businesses have a fair chance to compete for government contracts. This is required to be submitted for review before the award of any government contract that meets this threshold. If a prime contractor fails to comply with this regulation, then they might be subject to liquidated damages or termination for default. This rule does not apply to contracts that are under the prescribed dollar amount, contracts that are going to be completed fully outside the United States of America, contracts that have no subcontractor opportunities, and small businesses. 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 nationally. The first thing a small business must do to qualify for government contracts is to register with the SAM Directory. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows for underserved groups to have a real chance to get awarded lucrative government contracts. The Government Is Fantastic For New Businesses The government has a lot of demand, but it goes out of its way to ensure all competition is open and fair. It will need to work with almost any business for products and services with competitive pricing. The United States government is known for running with high levels of precision and accuracy. Making sure the government contracts are fulfilled is a great way for a new small business to streamline its process and delivery methods. Government Contracts Offer Security In These Uncertain Times. Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many struggling businesses who are trying to survive this unprecedented situation. You should remember that government agencies are in need of goods and services in a year-round capacity. This makes them one of the few consumers that are actually recession-proof and a great source of steady, reliable income. Are There Any Other Advantages For A New Business To Registering For The SAM Directory Besides Government Contracting Opportunities? A business has to be registered with SAM before it can begin to apply for valuable federal grants. What Is A Federal Grant? A grant may be a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs within the Catalog of Federal Domestic Assistance (CFDA). The following steps to apply for a grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov 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. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM. How Do You Get Started Working With The Government? SAM stands for System Award Management. 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.

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 a solid client that can assure your business of a bright future. The United States Federal Government The United States government buys many products and services from suppliers who meet certain qualifications. It applies standardized procedures to acquire goods and services. The procedures used by the government can be found in the Federal Acquisition Regulation (FAR). The beginning of the decade is a great time for small business owners to get their hands on lucrative government contracts. The Small Business Administration has changed the rules on measuring what qualifies as a small business. The 2018 Small Business Runway Extension Act will increase the period of measuring annual revenue from three to five years when the business is being evaluated for government contracts. This means a lot more businesses will qualify for small business set-asides. Nearly a quarter of all government contracts have gone to small businesses in the last five years. 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. Infrastructure Construction There are at least 21 billion dollars 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. These types of large infrastructure projects take years to complete and will be a viable source of revenue for many types of small businesses. The United States government will need supplies, labor, and services for these projects for many years to come. 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. 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 how to utilize 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 battlefields. 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. 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 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. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to… Continue reading Lucrative Areas Of Government Contracting For Small Businesses

Disputes A dispute is when a government contractor has issues or material disagreements that relate to the contract itself and therefore files a claim. A claim is defined as a demand by one of the contracting parties seeking, as a matter of right, the payment of money, the adjustment or interpretation of contract terms, including the time of performance. This also includes other relief that arises under or relating to the contract.” The Government Would Like to Keep Contract Conflicts Out of Court All contractors have the right to dispute and appeal. However, the government prefers to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. The government expects you to use reasonable efforts to resolve controversies before the submission of a dispute. Remember To Be Reasonable When an unfair decision is put forth, then it definitely should be protested with voracity. However, you should be reasonable in your claims. The federal government is a very lucrative customer, and you do not want to harm this relationship for unnecessary reasons. What Do You Do If The Government Makes A Decision You Disagree With Regarding a Contract? A small business has several remedies ranging from filing a basic protest to taking the government to court. Disputes Are Only For The Contractor Only a contractor is allowed to file a dispute claim. This means that subcontractors can not enter into the federal dispute process. This is because the contractor is an original party to the contract. Typical Contractor Disputes Some common contractor disputes are as follows: Defective specifications Changing delivery dates  Failure of the government to supply a contractor with what he/she needs to properly fulfill the requirements of the contract Any other “event” that would keep a contractor from completing the contract or from being able to perform the contract. The dispute is triggered when one of these events occurs and all informal attempts to resolve the issue fail. What Is The Difference Between A Protest vs. A Dispute? A protest involves a defective bid or the awarding of a contract to a different bidder. In contrast, a dispute involves an issue with the contracting officer that arises after you have been awarded the government contract. The following are the three Federal Bid protest Levels: Judicial action brought at the United States Court of Federal Claims (COFC). Protest filed with the (GAO) Government Accountability Office. Agency-Level protest filed with the agency conducting the procurement. It is important to note that a protest must be filed within ten days after the basis of the protest is known or should be known. Any protests that exceed this 10-day limit will automatically be thrown out. If you want to go forward, you must go to a higher level like the United States Court of Federal Claims. Protesting A Bid Or Award You must be an interested party, which means a prospective bidder who will be affected by the award economically. This usually means you will receive the award if your protests are sustained. One such challenge would be that the bid was defective. A defective bid can include: The omission of a required provision The ambiguity of Important facts Indefinite evaluation factors. The termination of a contract may also be protested if the protest alleges that the termination was based on improprieties in the award of the contract. This means that you can protest the bid, award, or termination of the contract. Make sure that you are very aware of the deadlines set for a protest. Protesting  A Defective Bid These are some common grounds for a defective bid: The bid is not detailed enough or vague: It’s too detailed: SOW too long It’s too restrictive: it uses standards or specs that are not needed. More time is needed to respond It contains ambiguous statements: which do you want? There are many brand names or equal issues. There are small business issues: such as Hubzone and the wrong size standard Failure to meet small business set-asides What Is The Amount Of Your Dispute If Your Claim is under $100,000, then going through the dispute resolution process will be faster than if your claim is over this amount. This is because the Board of Contract Appeals is required to decide within 60 to 120 days. The smaller claims will usually take priority, and the board will postpone an appeal concerning a larger dollar amount contract. The Court of Federal Claims could take more than a year just to reach the trial stage. If the dollar amount of the contract is large, the dispute could conceivably go to the U.S. Supreme Court.  So it sometimes is smart to think about a strategy for your disputes based on the dollar amount that you are seeking in your claims. This is why seeking legal counsel is a good idea. 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 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. Sam Directory Can Help Again the first step to obtaining lucrative government contracts is ensuring your business is registered with SAM. Let us take this complicated process off your hands so you can focus on winning some of these valuable proposals. We can make your life easier and get you in the door to a very profitable new revenue stream with the government. As a visionary entrepreneur, you understand how using our site to register in the SAM directory is the first step to lucrative government contracts. Congratulations on taking this critical first step to become a government contractor.

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