Author: Dona Basu

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. However, before companies bid for contracts, it is important to understand the different types of contracts utilized by the government. The Bid The Federal government has the following type of solicitations for bidding: Request for Quotation (RFQ). This type is for contracts below $150,000 with a simplified acquisition procedure. Request for Proposal (RFP). This type of solicitation asks vendors to propose in response to the government’s request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that type of solicitation. Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here. Request for Information (RFI). This is mostly to research the market and evaluate the interest and capabilities of contractors in a specific niche. Make sure you read the solicitation requirements carefully. A solicitation package will include, documents, technical conditions, attachments, and various other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill. As for required documents, they are listed in the solicitation Contact your contracting officer if you have questions. You must understand every single thing about the solicitation that you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements. Fixed-Price Contracts These government contracts are used when the scope of work is clear from the beginning and therefore a price is determined by the agency in advance. There are many different types of this particular contract. Firm Fixed-Price (FFP) This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, then the business will keep the extra profit. This is a great contract for companies that are precise with their pricing and have a lot of experience in the field. FFP Level-of-Effort This government contract is defined by the level of effort the service provider will commit to the project, rather than results. It is a common contract used for things like research, which is often hard to define in advance. FFP Materials Reimbursement The small business provider will have a predetermined price for service and labor but is reimbursed for the cost of the materials at the end of the project. This contract is often used for repair services where at the beginning, the cost of materials may be unclear. Fixed-Price with Award Fees A fixed price with award fees contract offers a hard and fast price for objective performance success. This contract will also have additional awards to incentivize more subjective qualities like aesthetic appearance and technical knowledge Fixed-Price with Economic Price Adjustment The prices are often adjusted at the top of the project to account for changes within the cost of labor, materials, or market prices of specific items within the contract. The criteria for these sorts of price changes must be defined within the original contract. Fixed Price Incentive (FPI) This contract states a maximum price but it also awards the service provider for coming in under budget. So coming under budget in this type of contract allows for a larger profit for the small business provider. Cost-Reimbursement Contracts Cost-reimbursement is a category of contracts that are used when it would be too difficult to estimate the cost of the project in advance. They usually define a spending limit but are a much lower risk for the service provider than fixed-price contracts.  Cost Contracts This contract pays only for expenses and there is no profit for the small business provider. Cost contracts are often used for research projects provided by non-profit organizations. Cost-Plus-Fixed-Fee This contract includes a limit for expenses that will be reimbursed along with a fixed payment for the service provider. Cost-Plus-Incentive Like Fixed-Price-Incentive contracts, this provides a financial incentive for the service provider to come in under budget, while also covering project expenses. Cost-Plus-Award-Fee This contract states that the govt client can pay the expenses of completing the project and also provides financial awards supported criteria outlined beforehand. Cost Sharing This type of contract only pays a predetermined portion of the overall costs. It is most common in research contracts where the service provider will benefit in other ways from the results of the research. The First Step Is Registering With SAM To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the typesSAM directory. Please read one… Continue reading Important Terms To Know For Government Contracting

Government Contracts Offer Security  The recent pandemic has just shed light on how things can change in the small business marketplace in the blink of an eye. Businesses that were doing quite well had to rethink their business models quickly to survive. One of the best ways to expand your business and have a secure lifeline in unexpected rough times is to become a government contractor. The United States government is one of the most powerful consumers of goods and services in the world. This is a 600 hundred billion dollar industry that is required to set aside at least 23 percent of these contracts specifically for small businesses. Simplified Procedures In 1994 the Federal Acquisition Act or FASA simplified the buying procedures of the government. Many of the more harsh restrictions on government purchases were removed for any purchase that was less than $100,000. Now agencies used much simpler procedures for analyzing and soliciting bids up to the $100,000 amount. However, the government is still required to advertise all purchases over $25,000 at www.fbo.gov. These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are not as complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive on price and quality Purchases that do not exceed $2,500 individually or through the combination of multiple items are considered micro-purchases. These do not require competitive quotes but are not limited to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards. Consolidated Purchasing Programs Just like any other organization, the federal government has common purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies.  For this reason, it made sense to centralize the purchasing of various types of common products and services. Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts or GWACs. These types of contracts help obtain long-term vendor agreements with fewer vendors. The GWACs have become very popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action from scratch. Agencies can now competitively award several or multiple task order contracts to different firms for the same products and services. This practice allows federal buyers to issue orders to anyone or a combination of several firms with relative ease. 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. Things To Do Before The Requests For Proposal Or The RFP Is Released. You should always ask the following questions to fully understand how you are going to structure your winning proposal: What is the top priority, quality, price, or speed? What problem can you solve for the government using your product or service? Do you need to team up with anyone else? How is the proposal going to be scored by the agency? What are the agency’s operating policies? Who is the agency’s current contractor for this particular good or service?  The Structure of Government Requests for Proposals. Each proposal has three sections: The Scope of Services Instructions- Make sure that you follow all instructions carefully and with precise details Evaluation -This is how the government will score your proposal The Scope of Services This is where you will explain how you plan on completing the work or providing the goods that are being acquired. It is the most important part of the proposal. You must list and provide evidence of core competencies and how you can effectively help the agency reach its desired outcome in the allotted time. This is the time for your business to show your innovation and creativity. You also need to keep in mind that the government does not want to waste money and keep your pricing competitive. One of the ways to stand out is by identifying your employees and 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. 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 in the procurement process. It takes you through the need for the product and service to the award of the contract. 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… Continue reading Submitting Government Contracting Proposals

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. 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. 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, the following are the steps to apply for a federal grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions. Make Sure You Get A 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. Get The Bid Package After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. What Type Of Contract Is Being Sought? The three major contracts that are being sought are fixed price, cost-reimbursement, and special situation. Fixed-Price Contracts These government contracts are used when the scope of work is clear from the beginning and therefore a price is determined by the agency in advance. There are many different types of this particular contract. Firm Fixed-Price (FFP) This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, then the business will keep the extra profit. This is a great contract for companies that are precise with their pricing and a lot of experience in the field. Fixed-Price with Award Fees A fixed price with award fees contract offers a hard and fast price for objective performance success. This contract will also have additional awards to incentivize more subjective qualities like aesthetic appearance and technical knowledge. Be Precise And Follow Directions Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies fail to follow basic directions. Be aware of deadlines and do not leave anything black when filling out forms. The request for proposals or RFPs has very specific instructions and you must take everything seriously. Just think of it like filing your income taxes and do not take any unnecessary shortcuts. 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… Continue reading The World Of Government Construction Contracts

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 ServicesUtilities 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. 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. 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) 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. However, many small businesses fail to realize that the government has an abundance of websites to help them find these government contracting opportunities. 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. What Does This Mean For Small Businesses That Want To Be Government Contractors? The Federal government is also required to set aside a certain amount of contracts for small businesses. At least 23 percent of government contracts will be awarded to small businesses this year. This means that 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 be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage to get ahead and obtain some very lucrative contracts. Work Environment Government contractors can work in a wide variety of environments, depending on what service they are providing. A tech company might be consultants on large-scale computer-oriented projects. Where an energy company might be on oil rigs supervising the drilling mechanism needed to complete the work. Contractors who do well and maintain good reputations often are guaranteed to participate in future projects. Certification and Education Usually, the agency sets specific educational and certification guidelines when they post a request for proposals or RFP. These requirements can vary depending on the type of work that is needed. However, there are some steps that any business can do to become more attractive for government contracting work. Make Sure You Establish A Good Business Reputation We have already mentioned that a certain number of federal contracts are always set aside specifically for small businesses. The Small Business Administration or SBA has reported that the United States government buys almost 100 billion dollars worth of goods and services just from small businesses each year. This large amount does not even include the money spent on contracting at the state or municipal levels. Try to establish a network of government contacts at various agencies. These contact can often serve as invaluable advocates for your business. They can also give you advice on how to navigate the bidding process. After your receive awards, make sure you work hard to establish a track record of reliability and success.   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. The Government Wants Small Businesses To Succeed In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. How Do You Get Started Working With The Government? SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used… Continue reading The World Of Government Contracting

Look To Your Local PTAC Office Procurement Technical Assistance Centers or PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets certain criteria to work with the government. Here is also where you can find out if your business can be certified as 8(a), WOSB., or HUBZone. Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing 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. Get The Bid Package After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. Bidding The government usually makes sure contracts are competitive through the use of sealed bidding. First, the agency makes sure that its requirements are accurate and complete. Then an Invitation For Bid or IFB is issued. The IFB will describe the type of product or service that is being procured by the government. It also includes: Preparation Instructions  Conditions of Purchase Packaging  Delivery  shipping  The payment with contract clauses to be included Submission Deadline The sealed bids are opened in public at the purchasing office at the time designated in the invitation. The bids are read aloud and then recorded. The contract will be rewarded to the bidder who has the most competitive pricing and can meet the government agency’s requirements.  Government-wide IFBs can be found at FedBizOpps which provides a direct link to the invitation. Potential contractors can search the Central Contractor Registration to identify qualified small business opportunities. Any small business that wants to sell to the government should be registered on CCR. Simplified Procedures In 1994 the Federal Acquisition Act or FASA simplified the buying procedures of the government. Many of the more harsh restrictions on government purchases were removed for any purchase that was less than $100,000. Now agencies used much simpler procedures for analyzing and soliciting bids up to the $100,000 amount. However, the government is still required to advertise all purchases over $25,000 at www.fbo.gov. These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are not as complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive on price and quality Purchases that do not exceed $2,500 individually or through the combination of multiple items are considered micro-purchases. These do not require competitive quotes but are not limited to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards. Submission It usually takes the government 30 to 120 days to review your submission. The Contracting Officer evaluates many factors including financial figures of your business, how long it has been on the market, past performance reports, and, of course, if your pricing is competitive. Whether your proposal is accepted or rejected, you will receive a response from the Gov’t. Sometimes, the Contracting Officer requests some more information or asks you to clarify some issues. If you have not heard anything after 120 days, follow up with the contact information with the agent listed in the solicitation. How Do You Get Started Working With The Government? For example, the following are the steps to apply for a federal grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions. Make Sure You Get A 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. 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… Continue reading Procedures To Obtain Government Contracts

Economic Hardship Often Spurs Innovation A great number of amazing companies like Uber, Square, and Instagram were birthed in the last recession. Hardship often leads to amazing innovation. It will not be surprising if we see many innovative companies coming out on the heels of this pandemic. Think about how many talented people have been furloughed and now have the time to devote their energies elsewhere. Millennials and Gen Z have shown that they are generations that embrace the challenges of being an entrepreneur. Take Hold Of Your Destiny Some people are scared of the stress that often comes along with managing a business. They think that will not be able to handle keeping up with the ever-changing marketplace. What they often do not take into account is that day-to-day jobs can be just as stressful. Often, employees have to live up to the unrealistic expectations of several managers. Being an entrepreneur gives you more control over your destiny, rather than have your fate be in the hands of other people. This way you can shape your life according to your needs. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. Government Contracts Offer Security In These Uncertain Times. Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many struggling businesses who are trying to survive this unprecedented situation. You should remember that government agencies need goods and services in a year-round capacity. This makes them one of the few consumers that are recession-proof and a great source of steady reliable income. The Federal Government is Sympathetic to the Situation The government understands that many contractors are in precarious situations. Right now more than ever government agencies are emphasizing how important it is to communicate and document issues in scheduling and performance for potential relief in the future. The Office of Management and Budget issued the following statement to the various government agencies: “be flexible in providing extensions to performance dates if telework or other flexible work solutions, such as virtual work environments, are not possible, or if a contractor is unable to perform promptly due to quarantining social distancing, or other COVID-19 related interruptions.” Government contractors may be entitled to relief for the following reasons: Delays caused by Covid-19 Increased performance costs due to Covid-19 Costs from government-initiated contract terminations caused by COVID 19 Performance issued that are the result of complications to mitigate damagesGovernment due to COVID 19 Cost Recoveries Most government contracts operate under the “four corners of the document rule” This means that you must look into the terms and conditions of the contract itself to understand what can be utilized to protect your interests. An example is if a contracting officer failed to cooperate with the terms of the contract. Public Law 85-804, the President may “authorize any department or agency … to enter into contracts or into amendments or modifications of contracts … whenever he deems that such action would facilitate the national defense.” This allows for relief under extraordinary circumstances, which could include situations such as those that arise under this unexpected pandemic.  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 wonderful way for any 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. Work Stoppages In government contracts, a stop-work order can be issued for 90 days or more depending on the agreement. After this period is over, usually the contractor must resume the work or the contracting officer terminates the contract. The government contractor must assert entitlements to an adjustment within 30 days after the period ends to collect a recovery. This usually consists of equitable adjustment plus profit or extension of billing schedule or both. This remedy is available to only involuntary work stoppages. A voluntary work stoppage would consist of people not coming to work by their own decisions, due to the need to self-quarantine during the pandemic. This would excuse performance but would not be considered a contestable delay. With any delay, contact the contracting officer, document the delay, and that it was due to a government act, and document the cost impact of the delay. This Pandemic Will Not Last Forever The Federal government will soon be back on track and in much need of goods and services provided by small businesses. Many agencies, such as the Department of Defense, are fully funded for the year. and will be moving forward with their contracts immediately.  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. SAM Directory Can Help SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential.  Let us, the professionals at SAM Directory, make sure that you do all that is needed to not miss out on this important opportunity.… Continue reading How The Pandemic Has Affected Government Contracting

What is a Government Grant? A government grant is a financial award given by the federal, state or local government authority for a beneficial project of some sort. It is effectively a gift: It 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 important to any society. For any economy to be competitive in the modern world, they must make sure to 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 serve the needs of the people. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor. Registering With The SAM Directory Also Has Other Important Advantages You must register with the SAM directory to apply for government grants. A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). A grant is different from a loan in that it is money that your business does not have to pay back. So, registering for the SAM directory gives you access to free money! Are Grants Difficult To Obtain? In truth, grants can be very competitive. It is important to read instructions so that you can thoroughly understand the application process. 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 truer than the saying about never making any of the shots you don’t take. Some websites can help you through the process. 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. Minority-Owned Business Status Five percent of the Federal government contracts are supposed to be awarded to members of an economically or socially disadvantaged group. This allows minority groups to remain competitive in the government market. Under the Small Business Act, certain individuals are presumed socially disadvantaged:  African-Americans Hispanic Americans, Asian Pacific Americans Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians) Subcontinent Asian Americans. An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows – through a “preponderance of the evidence” – that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes. Registering For Minority Certification To qualify for the five percent of the contracts that are reserved for minority-owned or disadvantaged businesses, one must be certified by the government. This means that a business is giving up on 24 billion dollars worth of revenue by not registering. Registering also has other advantages. The SBA offers specialized training programs and mentoring to registered organizations, free of charge. You also get admitted to opportunity fairs and networking events through the National Minority Supplier Development Council. Before applying for the 8(a) Program, each firm is urged to take an online training and self-evaluation course that can be found here at the 8(a) Business Development Suitability Tool. The first section of the online course explains the 8(a) Program intimately. It culminates in an eligibility self-assessment test. The test consists of a series of straightforward yes/no questions that evaluate the degree to which your firm meets the essential qualifications for the 8(a) Program. If key eligibility criteria are not met, you will be directed to the SBA resource deemed most appropriate to help you at this time. When applying for a grant, think about what you are doing for the community. What are you bringing to the table? Does your business model further the altruistic goals? For example, if you are part of a small community of at least 50,000 people, you could qualify for a Rural Business Development Grant. Their websites describe this program as a competitive grant designed to support targeted technical assistance, training, and other activities leading to the development or expansion of small and emerging private businesses in rural areas which will employ 50 or fewer new employees and has less than $1 million in gross revenue. Programmatic activities are separated into enterprise or opportunity type grant activities. Rural public entities including, but are not limited to: Towns Communities State agencies Authorities Nonprofit corporations Institutions of higher education Federally-recognized Tribes Rural cooperatives (If organized as a private nonprofit corporation) What happens if I receive a… Continue reading Deciphering Federal Grants For Small Businesses

Subcontracting Is An Excellent Way To Get Started Perhaps you are a little intimidated by the prospect of working with the government. You would like an ideal scenario where you can ease into the lucrative business of government contracting and be able to pick things up at your own pace. Subcontracting is a fantastic way for you to ease into government contracting at your own pace but still take part in the multi-billion dollar marketplace.  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.  Subcontracting Has Many Advantages For Less Experienced Businesses Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is actually answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Federal Contracting Also Makes Prime Contractors Want To Seek Out Traditionally Disadvantaged Businesses This means that prime contractors are on the lookout for talented businesses that are owned by women, minorities, and veterans. This provides opportunities for these groups in federal contracting 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 incredibly valuable relationships and firms should develop a strategy for how to approach these types of potential partners. 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 includes any person who offers to furnish or furnishes general supplies to the prime contract or a higher tier subcontractor. A prime contractor contracts directly with the client, which in this case is the federal government.  The subcontractor would agree with the prime contractor (prime) to provide goods and /or services to the prime for them to be able to fulfill the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience with government contracting and build their reputation with various government agencies. 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 to complete work for the contracts they have entered into with prime contractors. Consultants — It is easy to confuse consultants with subcontractors. Consultant services are defined by Federal Acquisition Regulation (FAR) as “rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Examples include those services acquired by a contractor or subcontractor to enhance their legal, economic, financial, or technical positions. Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.” So, How Does A Small Business Successfully Start Relationships With Key Government Contractors? The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms 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. 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. Remember nothing happens until you register with SAM. 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… Continue reading Deciphering Federal Subcontracting For Small Businesses

General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. The United States government needs everything and is a super consumer worth $500 billion. The government uses schedules to purchase goods and services. When there is a need in an agency it is called a schedule award. These are great opportunities for small businesses. A company needs to bid for the award. Once the award is won, the winning bid 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 be successful with this lucrative customer. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. 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 high level of expertise. There is also a government-backed membership organization called the National Contracts Management Association.  The PTACs help small businesses locate marketing opportunities and can assist with various e-commerce issues. They can also help you prepare financial reports, procurement forms, and contractual paperwork, as well as guide 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. 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 was 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 thereafter renewed at $100 per year. 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) 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 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.  Government Funding As we have stated before, the United States government is one of the wealthiest and most powerful clients in the world. However, no one has unlimited resources. Administrations change and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased. One of the best ways to combat this is by supporting politicians that understand and promote your type of business. It is important to keep an eye on the political atmosphere and make sure that your voice is heard. 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… Continue reading Tools For Succeeding in Federal Government Contracting

Register For 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. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor. Can a Small Business hope to compete for federal government contracts? The Federal Government is required to reward a certain amount of its contract to small businesses. Last year the Federal government awarded 25% of its contracts to small businesses. In 2018 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year. What Does This Mean For Small Businesses That Want To Be Government Contractors? The Federal government is also required to set aside a certain amount of contracts for small businesses. At least 23 percent of government contracts will be awarded to small businesses this year. This means that 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 be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage to get ahead and obtain some very lucrative contracts. What do I need to register for the Sam Directory? You will need the following : A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. What is a DUNS Number? The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number as a social security number for your business. Any contracting opportunity in the System for Award Management (SAM) will require a DUNS number to apply. What is the difference between a DUNS number and a Federal Tax ID number? A DUNS number is used for business credit reporting purposes, whereas an EIN is issued by the IRS and used for tax identification purposes. Are there any other advantages to registering for the SAM Directory besides government contracting opportunities? A business has to be registered with SAM before it can begin to apply for valuable federal grants. What is a Federal Grant? A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). The following are the steps to apply for a grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov Is there any other information that I should be aware of to take full advantage of what is offered by registering for the SAM Directory? A business must understand the government classification system which includes the following codes: NAICS PSC FSC What is a NAICS number? NAICS is a six-digit code that stands for the North American Industry Classification System. Many federal agencies post contracting opportunities using the NAICS codes. The NAICS is used as an internal reference that quickly describes what a business does. You want to make sure you have the correct NAICS number to qualify for as many contracting opportunities as possible. What is the PSC number? PSC stands for Product Service Code and is primarily used by the Federal Procurement Data System (FPDS) and the General Services Administration (GSA).  They are used to describe the types of products, services, and research and development purchased by the federal government. What is an FSC Code? Federal Supply Class (FSC) codes are four-digit codes that are used to group products into logical families for supply management purposes. These codes are also used to classify government standards documents into categories, to help manage them more easily. FSC codes are grouped by Federal Supply Group (FSG) numbers. Make Sure You Have Your CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s your ID code, and government agencies will identify your business using 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 unique code, and each location must be registered separately with SAM. 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. Think About Subcontracting Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Subcontracting has many advantages for less… Continue reading How To Enter The World Of Government Contracting With Confidence