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Keeping Pace 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. For example, the government often goes for a “best value” procurement in times of plenty. This means that they are looking to award the contract to the company that can prove they can best handle a project because of past performance, subject matter expertise, and management capabilities. When funding is more restrained, government contracts are often given out on a “lowest price, technically acceptable” (LPTA) principle. This means that the decision will be much more driven by the bottom line of price, even in complex projects. A company needs to understand what type of methodology a government agency uses to structure its bids correctly for a higher chance of winning the contract. 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 totally rethink their business models quickly in order 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 500 hundred billion dollar industry that is required to set aside at least 23 percent of these contracts specifically for small businesses. This Is Not An Oversaturated Field 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. A smart small business can put themselves in a very favorable position to win government contracts if they just follow our guidelines. Remember Registration With The SAM Directory Is The Vital First Step SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory. Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Do Your Research Once you have selected some agencies that require your goods and services, it is essential to research your customers. Luckily, nowadays, you can find out a lot about an organization online. 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 where the customer’s needs always come first. Identify the government agency’s pain points and then offer them your innovative solutions to their problems. This type of discipline always wins significant issues with the government. Here are a couple of examples of how you can find the information you need to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when 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 want to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, which describes how government money is spent, what agency is issuing awards, and who the federal government is buying from. Understanding The Marketplace It might at first feel like working for the government is very unpredictable. Contractors can be affected by various factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules. However, all marketplaces can be volatile and change rapidly according to the whims of consumers. Therefore, a company needs to make sure that they understand the end buyer deeply and why they want to use their products and services. This is also true for the United States Government. Therefore, you will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee the federal government as a solid client that can assure your business of a bright future. 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. 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. 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… Continue reading Common Impediments In Government Contracting For 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. 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. 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. 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. Amazing Benefits The Department of Defense is known for providing excellent benefits.  Here is a list of some of the great perks of working with this organization: Paid Time Off that can increase every year Tuition Reimbursement Short and Long Term Disability Life insurance with family options Great Medical and Dental benefits Job Security And Work-Life Balance Startups might sound glamorous but they are far from secure. The statistics say: 90% of new startups fail. 75% of venture-backed startups fail. Under 50% of companies make it to their fifth year. 33% of startups make it to the 10-year mark. Only 40% of startups turn a profit. 82% of companies that fail do so due to income problems. The highest failure rate occurs within the information industry (63%) In defense contracting, you are under a pressure cooker to get a product to market and under the control of nervous financiers.  Instead, you have a fixed timeline and a payment schedule that is already in place. This means no insane 12 hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having realistic milestones that are attainable. Opportunities For Diversity The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. Never Underestimate The Power Of Research. The business landscape has changed dramatically in the last decade. One thing that has always remained constant is that the United States Federal Government is one of the largest and most powerful consumers of goods and services in the world. Being a government contractor is a highly desired position for any business. Do your research. Make sure you understand what agencies will benefit most from your business. Make sure that you read our blog on how to put together a well-thought-out proposal when you bid for government contracts. The government can be a great source of revenue and security for any small business and we would love to help you succeed down this very lucrative path to prosperity. 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 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 in order 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… Continue reading Why Government Contracting Is A Great Fit For Small Businesses

What Do You do If The Government Makes A Decision You Disagree With Regarding a Contract? A small business has several remedies that can range from filing a basic protest to actually taking the government to court. First, it is important to understand the basic terminology in order to understand the options available to a company. What Is The Difference Between A Protest vs A Dispute? A protest involves a defective bid or awarding a contract to a different bidder. In contrast, a dispute involves an issue with the contracting officer that arises after you have been awarded the government contract. The following are the three Federal Bid protest Levels: Judicial action was brought to the United States Court of Federal Claims (COFC). Protest filed with the (GAO) Government Accountability Office. An agency-Level protest was filed with the agency conducting the procurement. It is important to note that a protest must be filed within 10 days after the basis of the protest is known or should be known. Any protests that exceed this 10-day limit will automatically be thrown out. If you want to go forward you will have to go to a higher level like the United States Court of Federal Claims. Protesting A Bid Or Award You must be an interested party, which means a prospective bidder who will be affected by the award economically. This usually means that you will receive the award if your protests are sustained. One such challenge would be that the bid was defective. A defective bid can include the following: The omission of a required provision The ambiguity of Important facts Indefinite evaluation factors. The termination of a contract may also be protested if the protest alleges that the termination was based on improprieties in the award of the contract. This means that you can protest the bid, award, or termination of the contract. Make sure that you are very aware of the deadlines set for a protest. The Government Would Like to Keep Contract Conflicts Out of Court All contractors have the right to dispute and appeal. However, the government prefers to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. The government expects you to use reasonable efforts to resolve controversies, before the submission of a dispute. Remember To Be Reasonable When an unfair decision is put forth then it definitely should be protested with voracity. However, you should be reasonable in your claims. The federal government is a very lucrative customer and you do not want to harm this relationship for unnecessary reasons. What Is The Amount Of Your Dispute If Your Claim is under $100,000 then going through the dispute resolution process will be faster than if your claim is over this amount. This is because the Board of Contract Appeals is required to decide within 60 to 120 days. The smaller claims will usually take priority and the board will postpone an appeal concerning a larger dollar amount contract. The Court of Federal Claims could take more than a year just to reach the trial stage. If the dollar amount of the contract is large the dispute could conceivably go to the U.S. Supreme Court.  So it sometimes is smart to think about a strategy for your disputes based on the dollar amount that you are seeking in your claims. This is why seeking legal counsel is a good idea. Please get legal assistance, particularly if you decide to pursue the claim beyond the dispute process. For more information, check out the GAO’s Bid Protest site. Decision To Protest If you do decide to protest, it is in your best interest to call counsel as soon as possible. Contract law can be very complicated and it would be a very good idea to consult with your legal counsel.  If you do decide to protest, you have avenues that can guide you through the process.  You can go to your local PTAC to get started in the process and/or seek legal counsel. You also should familiarize yourself with Part 33.1 of the FAR. This will help you understand the requirements and your rights. Disputes A dispute is when a government contractor has issues or material disagreements that relate to the contract itself and therefore files a claim. A claim is defined as a demand by one of the contracting parties seeking, as a matter of right, the payment of money; the adjustment or interpretation of contract terms, including the time of performance. This also includes other relief that arises under or relating to the contract.” What Of The Timing Of The Protest In The Contracting Process? A protest received before the award of the contract means that the contract will not be awarded until there is a decision on the protest. This is bypassed if the items or services of the contract are urgently needed and delay of performance will cause unneeded harm.  If the protest is received within 10 days of the award of the contract then the performance of the contract will be suspended until the protest is resolved. It is on the contracting officer to notify all the other eligible parties that will be affected by this suspension of performance due to the protest. If a protest is received 10 days after the contract is awarded, the agency procedures will determine the handling of the protest. The contract performance might not be suspended or terminated in these cases unless it is likely that the award will be invalidated and the delay will not be prejudicial to the government’s interest. 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… Continue reading How To Properly Challenge Government Contracting Decisions

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. Be Prepared To Give An Oral Presentation Oral presentations are very common for companies who want to work for the United States government. This is not going to be your typical audience. You might not get the greeting and niceties that usually come with this type of business meeting. The government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period. You Still Need To Make Yourself Stand Out The federal government will be watching many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. It is important that your presentation is unique and memorable in a positive way. Your company really needs to catch their attention. The Three Steps All federal government presentations have three distinct informational phases:  The people who will work on the project The project’s management The company’s problem-solving abilities. People The first phase is when you will talk about the team that will be working on the project. You need to mention the key hands-on person who will be directly involved and working with the government. This is not the time to just name off people and recite their resumes. You have already listed each person’s qualifications, background, education, and experience in the written proposal. Now your company needs to give the federal government true insight into the people who are going to be performing essential tasks. Have the key team members speak for themselves. Let the government really know how passionate and motivated your people are to win this particular contract. This is the time to bring up any special skills or experience that can not be easily gleaned from a piece of paper. Many companies that present orals to the federal government never go beyond what they supplied in the written proposal, which is a great way to be forgotten. Project Management It is important to highlight these considerations in the next phase: How is your organization set up?  How are you set up to handle problems?  Who are the players who handle problems?  How does your organization fit together? How do you draw on other strategic alliances or subcontractors?  How does everyone, internally and externally, work together?  What are some of your established processes?  Tell them how you handled similar projects. This is where you explain how your past experiences have prepared you for success in the present circumstances. Do not present this material in a manner that could be boring or humdrum. Your company really needs to exude excitement about the organization and show your passion for the project. You need to talk about not only each individual’s commitment to the project but also how the organization as a whole and the management team are committed to ensuring the highest quality of performance. Problem Solving This is the most important phase of the whole presentation and the place where organizations often lose the most points. The problem-solving phase will consist of the federal government presenting you with a possible problem, giving you some time to discuss the problem, and asking questions, and then they’ll watch how you solve the problem. You should realize that the federal government doesn’t care what your final solution is; they care about your approach to the problem. They’re watching how you solve problems and how you work together as a team. You should practice problems solving simulations on a daily basis at least two weeks before you head into the presentation. The more you practice problem-solving, the better you’ll do as a team. Practice Makes Perfect Now that you have a short clear and concise message, it is time to practice in front of the mirror. Many people find talking to themselves in front of a mirror to be silly and unpleasant. However, this is the best way to really learn your elevator pitch until it becomes second nature. It will help you with things like smiling at the right moment and making pleasant eye contact.  Practice until you totally eliminate awkwardness and the words like “umm” from the elevator pitch. Make sure that you speak with enthusiasm in your voice. You want to make sure the listener understands the passion you feel for your business and make it sound very natural and organic. Remember To Be Clear And Concise Do not spend too much time trying to explain complex terminology that is very industry-specific. The elevator pitch should be so simple that any random person on the street can understand exactly what you are trying to convey. This is important because it makes sure that you keep the attention of the listener, no matter what their level of expertise. Remember Registration With The SAM Directory Is The Vital First Step SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in SAM.  Sam Directory will help guide you through this process so you can spend your time preparing to win these lucrative government contracts. Please read one of the helpful blog articles on our site Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we… Continue reading How Small Businesses Can Give The Perfect Presentation For Government Contracts

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. 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. Additional Requirements Besides, the business must show economic disadvantage by submitting a narrative and personal financial documentation about the company’s income, assets, and net worth. Generally, successful applicants must also meet the following additional requirements: The business must be small according to the Size standards for small business concerns; The business must demonstrate a potential for success (generally by being in business for, at least, two years); The business must be unconditionally owned and controlled by by one or more disadvantaged individuals who are US citizens and who are of good character.; Registering For Minority Certification To qualify for the five percent of the contracts 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. How Do I Apply? We recommend that you simply submit your application or the 8(a) Business Development Program electronically, but if you employ paper, see the subsequent guidelines. If you’d not wish to submit electronically, you’ll contact your local SBA District Office to get a paper application to use for the 8(a) Program Business Development Program. 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. How Do I Know That Being A Government Contractor 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. 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 experienced businesses. 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. 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. We will make certain that your application is processed quickly and efficiently so you can start being a federal contractor as soon… Continue reading How Minority-Owned Businesses Can Be Successful Government Contractors

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, they can help you grow substantially and rapidly if managed correctly. Understanding The Marketplace It might at first feel like working for the government is very unpredictable. Contractors can be affected by a variety of factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules. However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use their products and services. This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee you the federal government as a solid client that can assure your business of a bright future. 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 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 in 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. Specifications As of 2001, the United States Federal Government began to utilize Federal Business Opportunities (FedBizOpps) to list all procurement opportunities expected to exceed $25,000. FedBizOpps is how the government communicates its buying specifications to potential contractors.  The specifications are quite exact for most of the products and services that government agencies buy regularly. Your contract will contain extremely precise specifications that must be followed meticulously. The specifications-which describe the government’s requirements were contained in the invitation for bids or requests for proposals on which you based your bid or proposal. If your company is awarded a contract, you are bound to deliver the product or service described in the specifications. A company is bound by the terms of these specifications, as well as the basic specifications. Failure to deliver a product meeting these terms will result in the termination of your contract for default. So, it is extremely important to understand all specifications before bidding on a federal contract. The government prefers contractors that are reliable and pay attention to the smallest details. 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. 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 You must read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.  Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing 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. 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:… Continue reading Understanding Government Contracting Procurement For Small Businesses

The Integrity Of The Procurement Process It is essential that all bidders on government contracts have equal access to any information needed to put together a comprehensive bidding package. A company that is bidding on a federal contract may not receive information that is not public in order to provide an unfair competitive advantage in the field. This includes things like an innocent email accidentally going to the wrong person. 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 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. 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 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. 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. 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 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 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 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 in 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. Contracting Officers The Federal Government always conducts any kind of procurement business through contracting officers. These contracting officers have the authority to bind the government to a contract unless it is otherwise stated in writing. Make sure that the person you are dealing with is the contracting officer who is authorized to represent the agency or office that is going to award the contract. Procurement Government procurement has always been a part of advancing many national, economic, and social objectives. Government contractors must comply with the rules and regulations of labor standard statutes. This will include the Service Contract Act, Contract Work Hours and Safety Standards Act, and other statutory requirements that further socio-economic objectives, except for certain contracts where such legislation is specifically stated as non-applicable. 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 System for Awards Management or SAM Directory The absolute first thing that you must do in order to qualify for government contracting jobs is to register with the federal government supplier database, which is called the System for Award Management or SAM, for short.  This allows you to be certified by the Small Business Administration (SBA). This gives you the Dun & Bradstreet Number (DUNS Number). Your business size will be determined to see if you qualify for the specific set aside government contracts. You will also identify Your North American Industry Classification System. Please see our many informative blogs to find out everything you need to know about SAM for small Businesses, to get an in-depth… Continue reading How Small Business Government Contractors Can Survive An Audit

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 actually has an abundance of websites to help them find these government contracting opportunities. The Federal Government Wants To Help Small Businesses Succeed 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. 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. 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. 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 small businesses could produce or provide and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.  Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the 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.  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. FedBizOpps (Federal Business Opportunities): This is the spot for government procurement opportunities of $25,000 or more. Here, buyers for the government are able to publicize their business opportunities by posting information directly to FedBizOpps and commercial companies looking to do business with the government are able to find opportunities solicited by the entire federal contracting community. (http://www.fbo.gov) Small Business Administration (SBA): This site has a great deal of information pertaining to small businesses as well as SBA-Net, a gateway to opportunities, and a great place to network. It has a direct connection to the CCR database, which is fast becoming the sole database used by government buyers to locate potential small business contractors. Procurement Gateway: This is the Defense Logistics Agency site for all opportunities posted from its procurement offices. The defense department is one of the largest consumers of goods and services in the government. Their procurement department is encouraged to work with small businesses and this can be a very lucrative opportunity for a lot of small to midsize companies. Federal Acquisition Jumpstation: This site has most links to the federal sites that small business owners would be smart to explore Recovery.gov – This particular government website provides easy access to important data related to the Recovery Act  and allows for the reporting of potential fraud, abuse, and other types of government waste E-Verify – This is a handy website in which employers can determine if an employee is eligible to work in the United States based on information reported on the employee’s I-9 form.  USA.gov – This site is all-encompassing and has a lot to offer small businesses. It is a gateway to other government websites that can be very important to small businesses. This is the place to find info on how to do business with the federal government, Data and Statistics, Laws, and Regulations. 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… Continue reading Small Business Guide To Securing Government Contracts

Why does my business need to register for the SAM Directory? What if I told you that your business has a large revenue base that is often untapped in many areas and, therefore, might have very little competition in your field? You might be wondering if this magical source of revenue lives in the land of rainbows and unicorns. The good news is that this is nothing more or less than the United States Federal Government, one of the largest, most powerful purchasers of goods and services in the entire world. Our Federal Government provides a lucrative business opportunity that no small business can afford to ignore. What Is Government Contracting? Government contracting is when specific government agencies contract with private companies for specific goods or services. The agencies usually put out a contract or often a request for proposal (RFP) and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor. 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. However, it is important to be aware of certain elements of government contracting culture in order to be more effective and get more contracting opportunities. Can a Small Business really hope to compete for federal government contracts? The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses. In 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 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 they 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? 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. How Can A New Business Easily Register For SAM Without All the Hassles? All this information can at first seem quite daunting at first. As small business owners, we understand that you have a million things to accomplish on any given day. However, you also do not want to miss out on the honey hole of opportunities provided by the federal government. It is important that you get registered into the SAM directory as quickly and efficiently as possible. That is why it is a great idea to go to sam.directory. They understand the importance of proper SAM registration and take this confusing process off your hands completely. This website can… Continue reading What Do You Need To Register For 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 directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory. 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. What Is Government Contracting? Government contracting is when specific government agencies contract with private companies for specific goods or services. The agencies usually put out a contract or often a request for proposal (RFP) and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor. 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. 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 500 hundred billion dollar industry that is required to set aside at least 23 percent of these contracts specifically for small businesses. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that 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. 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. 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! 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.  Never Underestimate The Power Of Research. 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. Do your research. Make sure you understand what agencies will benefit most from your business. The federal government had many types of agencies that vitally needed to be supplied. Many government employees are essential workers and must continue working, no matter what the situation is in the rest of the country.  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. 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… Continue reading What Can SAM Do For Small Businesses