Author: Dona Basu

Small businesses often view federal audits with fear and trepidation. The thought of having their financial records scrutinized by government officials can be daunting. However, it is important for small business owners to understand that federal audits are not always something to be feared. In fact, they can provide several benefits and opportunities for growth. Firstly, federal audits help ensure compliance with tax laws and regulations. By thoroughly reviewing a small business’s financial records, the audit process helps identify any potential errors or discrepancies that may have occurred unintentionally. This allows small businesses to rectify any mistakes and avoid future penalties or legal issues. Secondly, federal audits can actually improve a small business’s reputation and credibility. When customers or potential investors see that a business has successfully undergone a federal audit without any major issues, it instills confidence in the company’s financial stability and transparency. Furthermore, federal audits can also serve as an opportunity for small businesses to identify areas of improvement in their financial management processes. By closely examining their records during an audit, business owners may uncover inefficiencies or areas where they can optimize their operations for better profitability. Lastly, going through a federal audit demonstrates a commitment to ethical practices and compliance within the industry. It shows that the business is operating with integrity and adhering to all applicable laws and regulations. In conclusion, rather than fearing federal audits, small businesses should embrace them as an opportunity for growth and improvement. By ensuring compliance, enhancing credibility, identifying areas of improvement, and demonstrating ethical practices – these audits can ultimately contribute to the long-term success of a small business. Surprise Audits Government audits can occur without any type of advance notice. Therefore, contractors must always be prepared to receive a solid evaluation.  A surprise audit that reports non-compliance with federal accounting regulations can have negative consequences, including contract termination, and payments can be withheld unless improvements are in place. In addition, this can be very time-consuming and stressful. Keeping Ahead of Technological Innovations Keeping pace with stringent government accounting policies allows a company to truly understand governmental purposes, needs, and more extensive processes and then use that knowledge to manage and methodically grow the company.  Luckily today, many cutting-edge technologies can take the pressure off by making even the most complex accounting procedures quite simple. These innovations help a contractor comply with government requirements, permitting employment of systems for management and growth while adapting to keep in step with ever-incoming changes in conditions. Also, having a solid accounting system will only improve your company in the long run. Rules Of Timekeeping And Accounting Government contractors have to maintain rigorous schedules when compared to the private sector. Therefore, your business must comply with a set standard of rules and regulations when reporting on how many hours worked in a certain period. The Financial Accounting Standards Board (FASB) states that contractors must comply with the following to work with the government: Federal Acquisition Regulations (FAR) Cost Accounting Standards FAR agency supplements 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 purchase 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. 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. Do Not Give Up! At some point, the process can be a little overwhelming. You must keep in mind that the reward will 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 United States government is a very lucrative client for any small business. 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. 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 own unique code, and each location must be registered separately with SAM. SAM Directory Can Help 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. We will make certain that your application is processed quickly and efficiently so you can start being a federal contractor as soon as possible. We remove this hassle so you can go about the important mission of running your company. Stay tuned for the next article in this series.

In the ever-evolving landscape of government contracting, small businesses play a crucial role in shaping the future. As we look ahead, it is evident that small businesses will continue to be integral to the government procurement process. Small businesses bring agility, innovation, and a unique perspective to government contracts. They have the ability to adapt quickly to changing market dynamics and provide specialized solutions that larger corporations may struggle to deliver. With their nimble structure and entrepreneurial spirit, small businesses are well-positioned to meet the evolving needs of government agencies. Furthermore, government entities are increasingly recognizing the value that small businesses bring to the table. Initiatives such as set-aside contracts and preferential treatment for small business owners are being implemented to foster growth and create opportunities for these enterprises. This not only benefits small businesses but also promotes diversity and fosters healthy competition within the industry. Looking forward, advancements in technology will continue to level the playing field for small businesses in government contracting. The use of digital platforms and streamlined processes will make it easier for these enterprises to navigate complex procurement procedures and compete with larger counterparts. As we envision the future of government contracting, it is clear that small businesses will remain a driving force. Their agility, innovation, and dedication will shape an inclusive landscape where opportunities abound for all stakeholders involved. Government agencies must continue their support for these enterprises by providing resources, mentorship programs, and promoting fair competition within this dynamic sector. In conclusion, embracing small businesses as key contributors in government contracting is not just essential but beneficial for all parties involved. Their unique strengths combined with technological advancements will pave the way towards a more efficient and inclusive procurement ecosystem in years to come. Consolidated Purchasing Programs Like any other organization, the federal government has common purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies.  For this reason, it made sense to centralize purchasing various common products and services. Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts or GWACs. These types of contracts help obtain long-term vendor agreements with fewer vendors. The GWACs have become very popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action from scratch. Agencies can now competitively award several or multiple task order contracts to different firms for the same products and services. This practice allows federal buyers to issue orders to anyone or a combination of several firms with relative ease. Cyber Security As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefield. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines. Cybersecurity will also be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand. The Department Of Health And Human Services The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19. This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get their foot in the door with many other government agencies. Blockchain Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks, are added. All the blocks contain timestamp information linking them to previous blocks, thus creating a chain. This allows for no data block to be altered without altering all the blocks that came before it. 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 in order to keep up with the needs of a growing population Government Funding As we have stated before, the United States government is one of the wealthiest and most powerful clients in the world. However, no one has unlimited resources. Administrations change and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased. One of the best ways to combat this is by supporting politicians that understand and promote your type of business. It is important to keep an eye on the political atmosphere and make sure that your voice is heard. The Government Will Always March Forward 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… Continue reading What Small Businesses Should Know About Government Contracting In 2024

The business landscape has changed dramatically in the last decade. One thing that has always remained constant, the United States Federal Government is one the largest and most powerful consumers of goods and services in the whole world. Being a government contractor is a highly desired position for any business. What Is A Government Contractor? The United States Government is made up of several agencies that require a variety of services. These agencies then offer contacts to private companies across several industries to fulfill these needs. Private contractors are vital in helping the government provide services for the welfare and protection of United States citizens. Private government contractors provide goods and services for the following:  Medical Services Utilities Construction Supplies for various projects Engineering Defense Intellectual Technology Energy These are just a few of the categories that are often contracted out to private independent companies through the awarding of government contracts. 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.   Make Sure You Register With SAM 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. 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. SAM Makes Things Easier SAM has conveniently combined the many government agencies into one directory. Registering for the SAM directory makes sure that your business is being seen and noticed by a large group of Federal Agencies. This system has efficiently streamlined contracting for both the government and individual businesses. When government procurement agencies are casting their search net for companies to send their proposals, your company being a registered entity in the SAM directory makes sure that you will be in their sightline. 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. Make sure your NAICS number is up to date Now that I am in the SAM directory, where do I find Federal government contracting jobs? The following are some places where you can find federal contracting opportunities: Search for the Contracting Opportunity Finder. It’s geared to businesses new to federal contracting. Sign up for notifications from and search the FedBizOpps database of federal contracting opportunities. Become part of the General Services Administration (GSA) Schedules Program. Find contracts through individual agencies’ Offices of Small and Disadvantaged Business Utilization. Become a subcontractor by working for another company that already has a contract with the federal government.  This is a good way to introduce your company to a contract with the government and build a successful track record. Submitting Bids Now that you met the needed requirements for being a Federal contractor, you are ready to submit bids. Make sure you are responding to solicitations and not pre-solicitations. Pre-solicitations are only requests for information and might not lead to an actual job. Carefully go through all the paperwork and follow directions. You want to make sure your bid is not thrown out for inaccuracy or failing to provide important data. Your company should utilize online databases for federal contracting opportunities. You should closely follow all directions for submitting a bit as set out by the agency when they request… Continue reading The First Steps To The Lucrative World Of Government Contracting

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.  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 and service-disabled veterans. 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. Does Your Company Qualify As A Veteran Owned Business? In order 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 veterans who are U.S. citizens* The veterans must manage the day-to-day operations The veterans must make long-term decisions for the business A veteran must hold the highest officer position The veterans  must work at the business full-time during normal working hours How Do You Prove That You Are A Veteran? You will need to have a Department of Defense Form 214 (DD 214), which is a document that is issued when a military service member retires, separates, or is discharged from the military.  You will need a letter from the United States Department of Veteran Affairs stating you are service-disabled if you also intend to apply for service-disabled status. The VA benefits office can help you if you need to replace a lost disability status letter. Registering with the VA You will want your company to get certified as a veteran-owned business. This means that you should register with the VA because it is the only government agency with a formal verification process. The VA actually has a number of contracts in which priority is given to service-disabled veterans and then to veterans. This is particularly important for nondisabled veterans, who do not get set-asides with the federal government. In short, registering with the VA increases the chances of a non-service-disabled veteran winning a contract. How Do You Register? The first step of getting certified is registering with VetBiz Registry. This is a veteran’s business database. You can also go to the Center for Veterans Enterprise which provides the registry and also includes step-by-step instructions on applying for VA Certification. Remember to have your DD 214 form handy. You should also have the following: Partnership Agreements Corporate Charters Organizational Charters  Board of Directors Mission Statements Inventory Service Providers Bank Statements Tax Information Some businesses can also be subject to onsite visits that can sometimes be unannounced. Registering With The Central Contractor Registration You must also register with the Central Contractor Registration or the CCR in order to be eligible for government contracts. What is the SAM Directory? 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. Luckily our site takes this headache off your hands. You can leave this important step to the experts at https://www.sam.directory so you can concentrate on more important matters. The best part is once you register, you will no longer have to keep reentering important information every time you apply for a new government opportunity. You will need a DUNS number. You’ll also need a D&B D-U-N-S® Number, which is a unique nine-character identification number issued to your business. You can register for your D-U-N-S Number free of charge by calling 1-866-705-5711 or by visiting Dun & Bradstreet’s Government D-U-N-S Number registration page. SAM Directory Information For Veterans It is important that a business understands 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. What can I do to make registering for the SAM directory as easy as possible? All this information can seem quite daunting. We understand that as a small business owner, you have a million things to accomplish on any given day and might not have the time needed for this process. However, you also do not want to… Continue reading Federal Contracting Welcomes Veteran-Owned Small Businesses

The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout. The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace. Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. What Is The Sam Directory? 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 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 as a social security number for your business. Any contracting opportunity within the System for Award Management (SAM) will require a DUNS number. 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 they 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 lots of other programs within 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 What Other Information Does A New Business Need to Register For SAM? It is important that a business understands 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. 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. High-Level Security and Background Checks It is important for government contractors to be able to pass several security clearances. A background check on your company and employees is often a condition of employment. This will include the following: Employment Education Criminal Records Credit History Motor Vehicles and License Records You should make sure that all your personnel and employees are able to pass this intensive screening. If there are any issues, make sure the government is made aware of it ahead of time, so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts. SAM Directory Can Help 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. We will make certain that your application is processed quickly and efficiently so you… Continue reading Small Business Secrets To Success

Success Unlike other markets, the Federal government wants to make sure that small businesses are able to receive a substantial chunk of the $500 billion contracting pie. This makes the Federal government one of the most powerful consumers of goods and services in the whole entire world and they want to help small businesses succeed in winning these contracts. Special Consideration In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The following is set as statutory rules to give small businesses a fair chance in the marketplace: 23 percent of prime contracts are reserved for small businesses; 5 percent of prime and subcontracts are reserved for small disadvantaged businesses; 5 percent of prime and subcontracts are reserved for women-owned small businesses; 3 percent of prime contracts are reserved for HUBZone small businesses; 3 percent of prime and subcontracts are reserved for service-disabled veteran-owned small businesses. How Do I Know Government Contracting Is Right for My Company? There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset. Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage to get ahead and obtain some very lucrative contracts. Subcontracting Opportunities Being a federal contractor can be an extremely lucrative and rewarding experience. It can offer amazing opportunities for your business. However, it is understandable if you are a little hesitant to dive into the world of the federal government head first. You honestly might not feel like your business is ready to bid on federal competitively as of yet. This is the perfect situation to explore subcontracting opportunities. Being a subcontractor gives you valuable experience of what it is like to be a prime contractor. It will also greatly enhance your qualifications to become a more viable option for the government as a prime contractor. Important Laws Section 8(d) of the Small Business Act and, in most cases, FAR 19.7 incorporate several laws regarding small business subcontracting. These laws require prime contractors to provide subcontracting opportunities to small businesses. This includes: HUBZone small business  Small disadvantaged business  Women-owned small business  Veteran-owned small business (VOSB) Service-disabled VOSB So the government requires that on contract over $500,000 or a million when constructing a facility that is public, that large prime 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 in detail the methods used to make sure that small businesses have a fair chance to compete for government contracts. This is required to be submitted for review prior to the award of any government contract that meets this threshold. If a prime contractor fails to comply with this regulation then they might be subject to liquidated damages or termination for default. This rule does not apply to contracts that are under the prescribed dollar amount, contracts that are going to be completed fully outside the United States of America, contracts that have no subcontractor opportunities, and small businesses.  Does Your Business Qualify For Set-Asides? If at least 51% of your business is owned by a minority, woman, or veteran then your business might be eligible for set-asides reserved for underrepresented groups. Does your business meet the following criteria: A business must meet small business size standards. At least 51 percent of a business must be owned by U.S. citizens. The business officers must show good character. The business must demonstrate the potential for success. There are separate eligibility requirements for businesses owned by American Indians, Native Alaskans, Native Hawaiians, Woman, Veteran or Certified Development Companies.  At least 51 percent of a business must be owned, controlled, and managed by one or more person(s) who meet the SBA requirements for being socially disadvantaged and economically disadvantaged. Certification and Education Usually, the agency sets specific educational and certification guidelines when they post a request for proposals or RFP. These requirements can vary depending on the type of work that is needed. However, there are some steps that any business can do to become more attractive for government contracting work. 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 contacts can often serve as invaluable advocates for your business. They can also give you advice on how to navigate the bidding process. After you receive awards, make sure you work hard to establish a track record of reliability and success.   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. SAM Directory Can Help 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… Continue reading Federal Opportunities Government Small Businesses Can Not Afford To Miss

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? In order 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 in order 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 actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows 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 make sure all competition is open and fair. It will need to work with almost any business for products and services with competitive pricing. The United States government is known for running with high levels of precision and accuracy. Making sure the government contracts are fulfilled is a great way for a new small business to streamline its process and delivery methods. 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. 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. Additional Requirements In addition, the business must show economic disadvantage by submitting a narrative and personal financial documentation about the company’s income, assets, and net worth. Generally, successful applicants must also meet the following additional requirements: The business must be small according to the Size standards for small business concerns; The business must demonstrate a potential for success (generally by being in business for, at least, two years); The business must be unconditionally owned and controlled by by one or more disadvantaged individuals who are US citizens and who are of good character.; Registering For Minority Certification In order 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. Prior to applying for the 8(a) Program, each firm is urged to take an on-line training and self-evaluation course that can be found here at the 8(a) Business Development Suitability Tool. The first section of the on-line 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. 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. 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… Continue reading Why Smart Small Businesses Know About Government Contracting

Finding success in government contracting requires a strategic approach and a deep understanding of the unique dynamics of this sector. With the right knowledge and tactics, businesses can tap into a lucrative market and secure valuable contracts. In this section, we will explore the best practices and strategies that can help you navigate the complexities of government contracting and maximize your chances of success. Government contracting offers numerous opportunities for businesses to grow and expand their operations. However, it is crucial to recognize that winning government contracts requires more than just submitting bids. It demands a comprehensive understanding of the procurement process, compliance requirements, and effective relationship-building with government agencies. One of the best ways to find success in government contracting is to thoroughly research and identify suitable opportunities. This involves conducting market research to understand which agencies are buying goods or services similar to what your business offers. By focusing on agencies aligned with your expertise, you can increase your chances of securing contracts that are a good fit for your capabilities. Additionally, developing strong relationships with key decision-makers within government agencies is paramount. Building trust through networking events, industry conferences, and targeted outreach efforts can significantly enhance your credibility as a reliable contractor. These relationships not only increase visibility but also provide valuable insights into upcoming projects or contract opportunities. Another crucial aspect is ensuring compliance with all regulations governing government procurement processes. Familiarize yourself with Federal Acquisition Regulations (FAR) and other relevant guidelines specific to your industry or niche. Compliance demonstrates professionalism and reliability while mitigating potential risks associated with non-compliance. 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. However, it is important to be aware of certain elements of government contracting culture to be more effective and get more contracting opportunities. Rules Of Timekeeping And Accounting Government contractors have to maintain very strict schedules when compared to the private sector. Your business must comply with a set standard of rules and regulations when reporting on how many hours worked in a certain period of time. The Financial Accounting Standards Board (FASB) states that contractors must comply with the following to work with the government: Federal Acquisition Regulations (FAR) Cost Accounting Standards FAR agency supplements Understanding Audits Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following: timeliness of payments to subcontractors documentation of contractor oversight of subcontractors documentation of enforcement of flow downs documentation of support for subcontractor billings documentation of subcontractor reviews Federal government agencies receive their funding from taxpayer dollars and they need to justify their spending to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business. Understand The Chain Of Command In the private sector, you might have a boss or manager that you report to daily. The chain of command is usually very straightforward. In the world of government contracting, you might have several people to report to, including managers from other contracting companies. There can be a steep learning curve when it comes to managing the expectations of several government employees at once.  However, there are endless opportunities and one can gain priceless experience by working with several agencies. Many departments in the federal government contain hundreds of agencies. These places have a wide variety of needs that can easily be filled by small businesses. Working with one agency often opens the door to other departments, making the scope of opportunities endless. High-Level Security and Background Checks Government contractors need to be able to pass several security clearances. A background check on your company and employees is often a condition of employment. This will include the following: Employment Education Criminal Records Credit History Motor Vehicles and License Records You should make sure that all your personnel and employees can pass this intensive screening. If there are any issues, make sure the government is made aware of them ahead of time, so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts. Furthermore, crafting compelling proposals tailored specifically for each bid is essential for success in government contracting. Your proposal should clearly articulate how your business meets the needs outlined in the solicitation document while highlighting past performance, technical expertise, competitive pricing structures, and any unique differentiators that set you apart from competitors. Lastly, ongoing education about changes in regulations or emerging trends within the government contracting landscape is vital for staying ahead of the curve. By staying informed, you can adapt your strategies and position your business to take advantage of new opportunities as they arise. In conclusion, finding success in government contracting requires a combination of strategic planning, relationship-building, compliance adherence, tailored proposals, and continuous learning. By following these best practices and investing time and effort into understanding the intricacies of this sector, businesses can position themselves for long-term growth and profitability in the government contracting industry. Sam Directory Can Help Again the first step to obtaining lucrative government contracts is making sure that your business is registered with SAM. Let us take this complicated process off your hands so you can focus on winning some of these valuable proposals. We can make your life easier and get you in the door to a very profitable new revenue stream with the government. As a smart 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 important first step to becoming a government contractor.

Government Contracts Can Be Very Lucrative For Small Businesses The United States government issues 500 billion dollars in federal contracts on a yearly basis. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.  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. Understanding The Regulations There are many advantages to being a successful government contractor. However, the government has stricter rules and regulations regarding accounting when compared to private sector clients. It is important to keep up with federal regulatory requirements.  Federal government agencies receive their funding from taxpayer dollars and they need to justify their spending in order to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business. DCAA Approval The Defense Contract Management Agency (DCMA)  helps define business systems requirements and provides direction on audits and approval criteria. Potential government contractors need to understand this agency as they define the approval criteria for awarding contracts. They also have a strong hand in guiding government audits. Speaking with them will help you with the following: direct and indirect cost segregation cost pools and allocation bases timekeeping labor distribution systems maintaining compliance with invoicing clauses avast and ever-changing complex of other issues Have A Clear Understanding Of The Government’s Accounting Requirements The Financial Accounting Standards Board (FASB) states that contractors must comply with the following in order to work with the government: Federal Acquisition Regulations (FAR) Cost Accounting Standards FAR agency supplements Understanding Audits Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following: timeliness of payments to subcontractors documentation of contractor oversight of subcontractors documentation of enforcement of flow downs documentation of support for subcontractor billings documentation of subcontractor reviews Keeping Ahead of Technological Innovations Keeping pace with stringent government accounting policies allows a company to truly understand governmental purposes, needs, and larger processes, and then use that knowledge to best manage and methodically grow the company.  Luckily today there are many cutting-edge technologies that can take the pressure off by making even the most complex accounting procedures quite simple. These innovations help a contractor comply with government requirements, permitting the employment of systems for management and growth while adapting to keep in step with ever-incoming changes in requirements. Also, having a strong accounting system in place will only make your company better in the long run. Understand That Change Is Constant Agencies are only allotted a certain amount of money through government funding. Changes in the administration can bring a total overhaul in what is a priority in comparison to previous years.  Many people think that governments are slow to change. However, as the world becomes more complex, a contractor needs to keep pace with the changing federal marketplace. It is extremely important for agencies to be transparent about their finances. Contractors must be strategic in anticipating and implementing modifications to any policies, procedures, and systems that support compliance, in order to maintain pace with changing requirements for their companies in regards to being a federal contractor. Surprise Audits Government audits can occur without any type of advance notice. Contractors must always be prepared in order to receive a solid evaluation.  A surprise audit that reports non-compliance with federal accounting regulations can have a lot of negative consequences. This could include termination of the contract and payments can be withheld unless improvements are in place. This can be very time-consuming and stressful. This can also severely affect opportunities for future business with the government. Make Sure You Have The Right Staff It is vitally important that government contractors have skilled accounting staff to ensure that the company is in compliance with all policy regulations. The company must have adequate policies and procedures in place for the prevention of mistakes, and especially for their timely discovery and correction. This helps cut down on exposure to accounting errors that jeopardize contractors, inaccurate data, incorrect data entry into the system, or errors in the performance of internal accounting processes. 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. The Key To Winning A Government Contract Is To Pay Attention To the Guidelines It is very important that you read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.  Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal.

Federal Government Contracting refers to the process by which the United States government procures goods and services from private businesses. It is a complex and highly regulated process that involves various steps, including solicitation, proposal submission, evaluation, negotiation, and award. Government contracts can be a significant source of revenue for businesses of all sizes. They provide opportunities for companies to sell their products or services directly to federal agencies and contribute to the functioning of the government. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. Special Programs Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, which are administered by the Small Business Administration (SBA), assist small businesses on how to obtain both large business and government procurements. Here is a list of websites that are provided by the government to help small businesses obtain contracting information. Publications The government has issued some publications to also assist small businesses. They are as follows:  Selling to the Military: Has all the information needed about items the military is currently looking to purchase. This includes contact information for the buying offices and the Small Business Office. Small Business Specialists for DoD: This is a listing of names, addresses, and phone numbers for all the resources you need to do business with the Department of Defense which is one of the most well-funded purchasers in the government. Participating in the VA Acquisition Program: This publication covers general information about how and what the Veterans Administration buys. Do Your Research Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online. At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when will they be held Inquire how your company’s products/services could help with the agency’s missions Request meetings with Agency Program managers leading the contract requirements you’re pursuing If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that details all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from. A Fantastic Presentation Is The Key To Success Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process. To participate in federal government contracting, businesses must meet certain requirements and comply with specific regulations. These requirements may include obtaining necessary certifications, registering with relevant databases such as the System for Award Management (SAM), and adhering to various procurement rules. Federal government contracting covers a wide range of industries and sectors, including construction, technology, healthcare, defense, consulting services, and more. It offers businesses the chance to work on projects that have a significant impact on society while also providing stability and long-term partnerships. Understanding the intricacies of federal government contracting is crucial for companies interested in pursuing these opportunities. It requires knowledge of applicable laws and regulations as well as strategic planning to navigate through the competitive landscape successfully. In summary, Federal Government Contracting is an essential aspect of doing business with the U.S. government. It provides opportunities for companies to contribute their expertise while benefiting from stable revenue streams. However, it requires careful adherence to regulations and proactive engagement in order to thrive in this complex marketplace. 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. How Do You Get Started Working With The Government? SAM stands for System Award Management. Federal Government Contracting refers to the process of businesses and organizations entering into contracts with the United States federal government to provide goods or services. It is a significant sector that offers numerous opportunities for businesses to work with the government at various levels, including federal agencies, departments, and military branches. 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.… Continue reading What is Federal Government Contracting?