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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. So this set aside might increase a small business’s chances of winning a lucrative bid. The federal government must set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on national government contract awards. However, before companies bid for contracts, it is crucial to understand the different types of arrangements utilized by the government. Time and Materials Contracts The government rarely awards this type of contract because of the expense. A Time and Material Contract requires paying directly for all costs associated with the particular project. Labor Hour Contracts are defined as a variation of the time-and-materials contract, differing only in that materials are not supplied by the contractor. See 12.207 (b), 16.601 (c), and 16.601 (d) for application and limitations for time-and-materials contracts that also apply to labor-hour contracts. See 12.207 (b) for labor-hour contracts for certain commercial services. Labor Hour Contracts do not include the cost of materials. Indefinite Delivery Contracts The government uses this type of contract when it does not know precisely how much of a product or a service will be needed for a project. They will usually list a range, and certain companies will be invited to provide their lowest bids per item.  This includes Task-Order Contracts which permit government stocks of specific items to be maintained at minimum levels and allow direct shipments to the users of products or services. They also enable great flexibility in both quantities and delivery scheduling and the ability of buyers to order supplies and services only after specific requirements for them materialize. Job-Order contracts, a competitively bid, fixed price, multi-year construction contract based on established or published unit prices via a unit price book (UPB) or a price list with a multiplier (termed coefficient) applied to the unit prices also fall under this category Fixed-Price Contracts These government contracts are used when the scope of work is clear from the beginning, and therefore a price is determined by the agency in advance. There are many different types of this particular contract. Firm Fixed-Price (FFP) This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, the business will keep the extra profit. This is an excellent contract for companies that are precise with their pricing and have a lot of experience. Cost-Reimbursement Contracts Cost-reimbursement is a category of contracts used when it would be too difficult to estimate the cost of the project in advance. They usually define a spending limit but are a much lower risk for the service provider than fixed-price contracts.  Cost Contracts This contract pays only for expenses, and there is no profit for the small business provider. Cost contracts are often used for research projects provided by non-profit organizations. Cost-Plus-Fixed-Fee This contract includes a limit for expenses that will be reimbursed and a fixed payment for the service provider. Cost-Plus-Incentive Like Fixed-Price-Incentive contracts, this provides a financial incentive for the service provider to come in under budget while also covering project expenses. Cost-Plus-Award-Fee This contract states that the govt client can pay the expenses of completing the project and provides financial awards supported by criteria outlined beforehand. Cost Sharing This type of contract only pays a predetermined portion of the overall costs. It is most common in research contracts where the service provider will benefit in other ways from the research results. Get The Bid Package After you have ascertained the government contract you want to bid on, it is essential to contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office wants to buy and determine if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information, including name, address, phone number, and e-mail address, are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. Be Precise And Follow Directions Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies fail to follow basic directions. Be aware of deadlines, and do not leave anything black when filling out forms. The request for proposals or RFPs has precise instructions, and you must take everything seriously. Just think of it as filing your income taxes, and do not take any unnecessary shortcuts. The First Step Is Registering With SAM To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not been written in the SAM directory. Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Sam Directory will happily guide you through this often confusing process. What do I need to register for the Sam Directory? You will need the following : A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. 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… Continue reading Explaining The Differences Between Various Federal Contracts For Small Businesses

What is a Government Grant? A government grant is a financial award given by the federal, state, or local government authority for a worthwhile project. It is a gift that does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money. Why is the government giving away free money? Innovation and ingenuity are essential to any society. However, for any economy to be competitive in the modern world, it must open up avenues to grow and nurture new businesses. To put it simply, the government gives out grants because it serves the greater good to suit the needs of the people. Grants are a great way to even the playing field. We have all heard stories about great entrepreneurs with relatively humble beginnings. Grants are in place because few people have the capital to start a business without some assistance. This is particularly true for minorities and women who might have faced discrimination in the past that hindered them from pursuing their business goals. Here is a listing of the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant The Halstead Grant Is it challenging to obtain a Grant? In truth, grants can be very competitive. It is important to read instructions to understand the application process thoroughly. You do not want your grant application to be thrown out because you did not provide the correct paperwork or information. A small business should also be aware of deadlines. However, please do not let a challenging application dissuade you from trying to qualify for grants. There is nothing more accurate than the saying about never making any of the shots you don’t take. Some websites can help you through the process. Is it challenging to obtain a Grant? In truth, grants can be very competitive. It is important to read instructions to understand the application process thoroughly. You do not want your grant application to be thrown out because you did not provide the correct paperwork or information. A small business should also be aware of deadlines. However, please do not let a challenging application dissuade you from trying to qualify for grants. There is nothing more accurate than the saying about never making any of the shots you don’t take. Some websites can help you through the process. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. In addition, the government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. , 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! So, How Does A Small Business Successfully Start Relationships With Key Government Agencies? The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows better to understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill. What are some examples of grants for Small Businesses? The Small Business Innovation Research (SBIR) encourages small businesses in the United States to engage in research and development that has economic potential. Its website states its mission is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a robust national economy. The program’s goals are four-fold: Stimulate technological innovation. Meet Federal research and development needs. Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons. Increase private-sector commercialization of innovations derived from Federal research and development funding. The following are a list of agencies that participate in the SBIR program: Department of Agriculture Department of Commerce – National Institute of Standards and Technology Department of Commerce – National Oceanic and Atmospheric Administration Department of Defense Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Do not forget about State and Local Grants. State grants are often geared to that particular state’s economic concerns. They are usually supposed to work in tandem with federal grants but can be much less competitive. Go to Grants.gov to get a complete listing of what is offered in your state. Also, do not forget your local municipal governments. Do a deep dive into your community to find out what is available. Again, every little bit helps, and sometimes money is left on the table because people are unaware of what is out there on a local level. SAM Directory Can Help Remember, registering for the SAM directory gives a business automatic entry into the highly 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… Continue reading The SAM Connection To Government Grants

What Is Government Contracting? Government contracting is when specific government agencies contract with private companies for particular 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. What Do You do If The Government Makes A Decision You Disagree With Regarding a Contract? A small business has several remedies ranging from filing an essential protest to taking the government to court. First, it is essential to understand the basic terminology 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 consists of an issue with the contracting officer that arises after you have been awarded the government contract. The following are the three Federal Bid protest Levels: Judicial action was brought to the United States Court of Federal Claims (COFC). Protest filed with the (GAO) Government Accountability Office. An agency-Level objection was filed with the agency conducting the procurement. It is important to note that a protest must be filed within ten days after the basis of the rally is known or should be known. Any objections that exceed this 10-day limit will automatically be thrown out. If you want to go forward, you 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 receiving the prize if your protests are sustained. One such challenge would be that the bid was defective. A defective proposal can include the following: The omission of a required provision The ambiguity of Important facts Indefinite evaluation factors. 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 an excellent idea to consult with your legal counsel.  If you decide to protest, you have avenues that can guide you through the process.  You can go to your local PTAC to get started in the process and seek legal counsel. You also should familiarize yourself with Part 33.1 of the FAR. This will help you understand the requirements and your rights. Disputes A dispute is when a government contractor has issues or material disagreements related to the contract itself and therefore files a claim. A claim is defined as a demand by one of the contracting parties seeking, as a matter of right, the payment of money; the adjustment or interpretation of contract terms, including the time of performance. This also includes other relief under or relating to the contract.” 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 resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. The government expects you to use reasonable efforts to resolving disagreements before the submission of a dispute. Remember To Be Reasonable When an unfair decision is put forth, it definitely should be protested with voracity. However, you should be reasonable in your claims. The federal government is a very lucrative customer, and you do not want to harm this relationship for unnecessary reasons. What Do You Do If The Government Makes A Decision You Disagree With Regarding a Contract? A small business has several remedies ranging from filing an essential protest to taking the government to court. Disputes Are Only For The Contractor Only a contractor is allowed to file a dispute claim. This means that subcontractors can not enter into the federal dispute process. This is because the contractor is an original party to the contract. Typical Contractor Disputes Some common contractor disputes are as follows: Defective specifications Changing delivery dates  Failure of the government to supply a contractor with what they need to fulfill the requirements of the contract properly Any other “event” that would keep a contractor from completing the contract or from being able to perform the contract. The dispute is triggered when one of these events occurs and all informal attempts to resolve the issue fail. Procedures for Disputes For a dispute, a contractor must submit the claim in writing to the contracting officer. The contractor should describe the following in the claim: Situation  State  What action the suit is asking for Request a final decision. The contracting officer will have 60 days to respond after receiving the written notice. If the contractor has not heard from the contracting officer in this period, the request is considered denied. If the claim is denied, the contractor can file a written “Notice of Appeal” with the Contracts Appeals Board and send a copy to the contracting officer. The contractor must do this within 90 days of the denial. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. Sam Directory Can Help Again the first step to obtaining lucrative government contracts is 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 visionary entrepreneur, you understand… Continue reading When The Government Is Wrong

What Is a subcontractor? A government subcontractor is defined by Federal Acquisition Regulation (FAR) 3.502-1 as: Any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such excellent agreement and included any person who offers to furnish or furnishes general supplies to the prime contract or a higher tier subcontractor. A prime contractor contracts directly with the client, which in this case is the federal government.  The subcontractor would agree with the prime contractor (prime) to provide goods and services to the peak for them to be able to fulfill the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience with government contracting and build their reputation with various government agencies. Useful Definitions Prime contractor — The business wins to bid for a contract with the government. Higher-tier subcontractor — a subcontractor that also contracts other subcontractors to perform services or provide supplies to complete work for the contracts they have entered into with prime contractors. Consultants — It is easy to confuse consultants with subcontractors. Consultant services are defined by Federal Acquisition Regulation (FAR) as “rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Examples include those services acquired by a contractor or subcontractor in order to enhance their legal, economic, financial, or technical positions. Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.” How Does A Small Business Become A Subcontractor? One of the first things that one needs to do is to be registered with  SAM. SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not been written in the SAM directory. Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. In addition, Sam Directory will happily guide you through this often confusing process. Subcontracting Can Be A Great Opportunity To Get Into Working With The Government We have already discussed how the United States government is one of the most potent consumers globally, and government contracting is a lucrative billion-dollar marketplace. However, if you are a reasonably new business, it might be wiser to begin as a government subcontractor.  This means that you are working with a prime contractor working directly with the government instead of itself. A good working relationship with a prime contractor can help you gain experience and knowledge that is always valuable to young companies. In addition, it helps you access how ready your business is to take on the challenge of government contracting.  Subcontracting Has Many Advantages For Less Experienced Businesses Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations of working directly with the government. 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 critical government projects. Federal Contracting Also Makes Prime Contractors Want To Seek Out Traditionally Disadvantaged Businesses This means that prime contractors are on the lookout for qualified businesses owned by women, minorities, and veterans. This provides opportunities for these groups in federal contracting that might not be available in other markets. Also, it is not unusual for prime contractors to be very loyal to their subcontractors and give them several avenues for repeat business. These are unique relationships, and firms should develop a strategy for approaching these types of potential partners. So, How Does A Small Business Successfully Start Relationships With Key Government Contractors? The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows better to understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill. Locate Key Prime Contractors Federal prime contractors can be found at this Small Business Administration site at this site: https://www.sba.gov/document/support–directory-federal-government-prime-contractors-subcontracting-plans. This directory is an excellent place for small businesses to find prime contractors who are looking to fill subcontracting requirements for government contracts. Companies can also go to http://web.sba.gov/subnet/ to find prime contractors who directly announce what their needs are for their current jobs for the government. This is an excellent tool for identifying a prime contractor that will make a good match for your business. Develop A strategy Do not be too broad about what your company can do. Outline to the prime contractor how you are the best choice for the job. Define your niche. This Is Not The Time To Be Shy About Your Company’s Accomplishments Inform them about any awards or certifications that you have received. Tell them how you have a strong reputation and reference any contracts that you helped complete. This is the time to position yourself as an asset to their project and inform them about your capabilities. These are things that help build credibility as a subcontractor. Remember That You Are Forming A Long Term Relationship, And This Is Not Just A One Time Gig You want to develop a strong alliance with the prime contractor’s company. It is on you to suggest teaming arrangements that will… Continue reading Subcontracting You Way To Success With SAM

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. 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. 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.  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 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. Government Contracts Offer Security In These Uncertain Times. Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many new struggling businesses who are trying to survive this unprecedented situation. Can A New Small Business Really Compete For Government Contracts? The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses. In 2019 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year. What do I need to register for the Sam Directory? You will need the following : A Data Universal Numbering System or DUNS from Dun and Bradstreet Your Tax Identification Number or TIN A Social Security Number if you are a Sole Proprietor. What is a DUNS Number? The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number with a social security number for your business. Any contracting opportunity 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. 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. If your business includes more than one facility, you need multiple CAGE codes. Each location must have its unique code, and each site must be registered separately. What can I do to make registering for the SAM directory as easy as possible? As a small business owners, we understand that you have a million things to accomplish on any given day. However, you do not want to miss out on the honeyhole of opportunities provided by the federal government. Get registered in the SAM directory as quickly 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 thoroughly. This website can ensure you are registered in as little as two days. If you still have questions, sam.directory will be more than happy to guide you through this often bewildering maze of registration. The consultation is free, and you have nothing to lose. Remember, registering for the SAM directory gives automatic entry into the highly 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 the professionals at the sam.directory make sure that you do all that is needed to not miss out on this vital… Continue reading Small Business Guide To The Sam Directory

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. 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. Accounting The standard is higher for government accounting when compared to private commercial markets. As a result, contractors will face challenges in making sure that the federal government’s stringent accounting standards are met precisely. Remember, the government has to prove how efficient they are with money because they spend taxpayer dollars. This means that federal contractors must be meticulous in their accounting methodology in case of an audit. At first, these stringent rules of accounting can seem very daunting. However, today many cutting-edge technologies can take the pressure off by making even the most complex accounting procedures quite simple. Also, having a solid accounting system in place will only make your company better in the long run. 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 a lovely 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. So if your business has the infrastructure to handle large orders, 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. However, you also should be aware that working for such a large and powerful client is not without challenges. 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 heldInquire how your company’s products/services could help with the agency’s missionsRequest 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. 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 significant 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 significant buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can be burdensome. They also try to expand competition for items by offering challenges to requirements that are not necessary for the performance or essential physical characteristics. Small Business Specialists (SBS): The law requires that every government buying location 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 entire staff, while smaller offices might only have one part-time employee assigned to this role. Central 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 working for their departments. These representatives are often the go-to person for fantastic subcontracting opportunities for small businesses. It is wise to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to obtain government contracts. Sam Directory Can HelpAgain, the first step to… Continue reading Overcoming Obstacles In Government Contracting For Small Businesses

Job Security No Longer Exists. Many people think that starting a business is just too risky. However, the workforce no longer offers the security it once did. Companies do not take care of employees for a lifetime and then provide them with a large pension for retirement like they did a generation ago. People are often replaced, and those who switch employers regularly actually make more money. There is a sense that there is no longer any loyalty to employers or employees. This type of environment makes starting your business not seem so risky. Only The Rich Can Start Businesses It used to be that you needed quite a bit of money to start a business. This often meant taking out high-risk loans or being at the mercy of a strict venture capitalist. This is no longer the case. Modern technology has made starting a business straightforward, even if you do not have tons of money for investment. Cloud bases services like Shopify allow you to have an e-commerce shop for very little money. There are also ways to make money by just having an affiliate marketing website. Travelerrr is a great place to begin if you want to start a business in the multi-billion dollar travel industry. Lack Of Knowledge Often people have not been exposed to entrepreneurship and therefore simply do not understand the process of starting a business. However, today’s world provides vast knowledge on the subject. There is an enormous number of entrepreneurs’ networks that you can join. Here are just a few: PartnerUp StartupNation LinkedIn Biznik Perfect Business These networks are great ways to learn about entrepreneurship and make many great, long-lasting connections. What Is Government Contracting? Government contracting is when specific government agencies contract with private companies for particular 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 detail how a small business can benefit significantly from being a government contractor. Small Business Administration Certifications A Small Business Administration certification is an excellent way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. So this set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government must set aside at least 23 percent of its total spending specifically for small businesses. As a result, several small companies have made a fortune just on federal government contract awards. However, many small businesses fail to realize that the government has an abundance of websites to help them find these government contracting opportunities. The 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 a lovely 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. So 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. Register For SAM SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. In addition, the government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. As a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step to becoming a government contractor. Networking Networking is vital when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events. These are usually free to business owners.  This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to define your company better. This speech explains what your business has to offer and how you can help another organization meet its goals. It should be short and simple, no longer than a 30-second elevator ride. Government Contracts Can Be Very Lucrative For Small Businesses The United States government issues 500 billion dollars in federal contracts every year. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.  To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not been written 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. In… Continue reading How Becoming A Federal Contractor Can Lead To Economic Stability For Small Businesses

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

Where Do You Find Government Contracts For Bidding Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts above $25,000 on SAM.gov. This means that there are many contracts advertised there at any given time. Contact a procurement officer for information on contracts below the $25,000 threshold for publishing. Look To Your Local PTAC Office Procurement Technical Assistance Centers or PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets specific criteria to work with the government. You can also find out if your business can be certified as 8(a), WOSB., or HUBZone. Understanding The Federal Contracting System General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. As a result, the United States government needs everything and is a super consumer worth billions of dollars. The government uses schedules to purchase goods and services. When there is a need in an agency, it is called a schedule award. Small businesses can bid for it. Once the award is won, the winning bid signifies a signed contract between the company and the government. This means that learning how to bid for these government contracts is extremely important to succeed with this lucrative customer. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. In addition, the government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. As a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step to becoming a government contractor. The First Step Is Registering With SAM To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the 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. In addition, Sam Directory will happily guide you through this often confusing process. The Bid The Federal government has the following type of solicitations for bidding: Request for Quotation (RFQ). This type is for contracts below $150,000 with a simplified acquisition procedure. Request for Proposal (RFP). This type of solicitation asks vendors to propose in response to the government’s request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that solicitation. Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here. Request for Information (RFI). This is primarily to research the market and evaluate the interest and capabilities of contractors in a specific niche. Read the solicitation requirements carefully. A solicitation package will include documents, technical conditions, attachments, and other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill out. For needed documents, they are listed in the solicitation. Contact your contracting officer if you have questions. You must understand everything about the solicitation you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements. Small Business Administration Certifications A Small Business Administration certification is an excellent way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) Networking Sometimes the most challenging step is getting your foot in the door. Networking is critical when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events. These events are usually at no cost to business owners and can offer a treasure trove of information about obtaining contracts from various agencies.  This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to define your company better. This speech explains what your business offers and how you can help another organization meet its goals. It should be short and simple, no longer than a 30-second elevator ride. Do Your Research Once you have selected some agencies that 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… Continue reading Small Business Guide To Crafting Successful Bids For Government Contracts

Understanding The Marketplace It might at first feel like working for the government is very unpredictable. Contractors can be affected by a variety of factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules. However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use their products and services. This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee you the federal government as a solid client that can assure your business of a bright future. The Federal Government Offers Great Opportunities For Many Types Of Businesses The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts. 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. The Federal Emergency Management Agency (FEMA) FEMA is a government agency that handles disasters such as tornadoes, earthquakes,  and hurricanes. They are always hiring government contractors, particularly since much of their work revolves around being able to mobilize a large workforce in a relatively short period of time. These jobs can range from providing temporary housing to the displaced to providing clean water and food to those in need. Go to this site to find out more about small businesses working with FEMA. FEMA is also part of the Department of Homeland Security. This is another agency that has many contracting opportunities. Just go to https://www.dhs.gov/do-business-dhs to learn more about this agency. A Small Business Must Understand FEMA’s Mission FEMA helps people who have suffered through major disasters. The president will make a declaration of a major disaster which prompts FEMA to get their people on the field. The agency will work with governments on the federal, state, local, and even tribal levels to help those in need. They assist survivors and sometimes get on the ground even before the disaster occurs. They look for small business contractors who can provide goods and services in the following type of situations: Emergency Support Functions Mission Assignments State Emergency Management Agencies National Response Framework Emergency Support Functions (ESF) These functions provide the structure for coordinating support across several Federal agencies. They are a way to bring together functions that provide federal support to states and federal-to-federal support, both for Stafford Act (an act that provides statutory authority for FEMA) declared disasters and emergencies and for non-Stafford Act incidents. They include the following: ESF #1: Transportation ESF #2: Communications ESF #3: Public Works and Engineering ESF #4: Firefighting ESF #5: Information and Planning ESF #6: Mass Care, Emergency Assistance, Temporary Housing, and Human Services ESF #7: Logistics ESF #8: Public Health and Medical Services ESF #9: Search and Rescue ESF #10: Oil and Hazardous Materials Response ESF #11: Agriculture and Natural Resources Annex ESF #12: Energy ESF #13: Public Safety and Security ESF #14: Cross-Sector Business and Infrastructure ESF #15: External Affairs The Federal government relies on civilian contractors to provide many of the goods and services needed for many of the Emergency Support Functions. National Response Framework This is the main guide to how the Federal government will respond to national emergencies. It must be very flexible to handle all the different types of disasters that can happen in a country that is as vast as the United States of America. The NRF is structured to help all levels of the government to: Develop whole community plans Integrate continuity plans Build capabilities to respond to cascading failures among businesses, supply chains, and infrastructure sectors Collaborate to stabilize community lifelines and restore services Department of Energy The Department of Energy defines its mission as “…. to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.” The Department of Energy has a network of 36 Facility Management Contracts.  They include the following: Office of Energy Efficiency and Renewable Energy Office of Environmental Management Office of Fossil Energy Office of Nuclear Energy Office of Science National Nuclear Security Administration This provides many opportunities for contractors that have energy management capabilities and supplies. Infrastructure Construction There are at least 21 billion dollars allocated for infrastructure spending by the federal government. The United States is a vast land of highways, roads, bridges, and dams. All of these structures need to be constantly maintained for safety and to fuel a strong vibrant economy. The country also needs to construct new infrastructure to keep up with the needs of a growing population. These types of large infrastructure projects take years to complete and will be a viable source of revenue for many types of small businesses. The United States government will need supplies, labor, and services for these projects for many years to come. 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… Continue reading Areas Where Small Businesses Can Prosper In Federal Contracting