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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. This set aside actually might increase a small business’s chances of winning a lucrative bid.  The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards.  What Qualifies As A Small Business?  In order to be considered a small business, a company has to meet the following requirements:  A business must meet small business size standards.  Part of a business must be within the U.S.  A business must operate mainly within the U.S. or make a significant contribution to the U.S. economy through the payment of taxes or the use of American products, materials, or labor.  A business must be independently owned and operated.  A business cannot be dominant in its field on a national basis.  The first thing a small business must do in order to qualify for government contracts is to register with the SAM Directory.    Minority-Owned Business Status  Five percent of the Federal government contracts are supposed to be awarded to members of an economically or socially disadvantaged group. This allows minority groups to remain competitive in the government market.  Under the Small Business Act, certain individuals are presumed socially disadvantaged:   African-Americans  Hispanic Americans,  Asian Pacific Americans  Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians)  Subcontinent Asian Americans.  An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows – through a “preponderance of the evidence” – that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes.  Additional Requirements  In addition, the business must show economic disadvantage by submitting a narrative and personal financial documentation about the company’s income, assets, and net worth.  Generally, successful applicants must also meet the following additional requirements:  The business must be small according to the Size standards for small business concerns;  The business must demonstrate a potential for success (generally by being in business for, at least, two years);  The business must be unconditionally owned and controlled by  by one or more disadvantaged individuals who  are US citizens and who are of good character.;  Registering For Minority Certification  In order to qualify for the five percent of the contracts that are reserved for minority-owned or disadvantaged businesses, one must be certified by the government. This means that a business is giving up on 24 billion dollars worth of revenue by not registering.  Registering also has other advantages. The SBA offers specialized training programs and mentoring to registered organizations, free of charge. You also get admitted to opportunity fairs and networking events through the National Minority Supplier Development Council.  Prior to applying for the 8(a) Program, each firm is urged to take an on-line training and self-evaluation course that can be found here at the 8(a) Business Development Suitability Tool.  The first section of the on-line course explains the 8(a) Program intimately. It culminates in an eligibility self-assessment test. The test consists of a series of straightforward yes/no questions that evaluate the degree to which your firm meets the essential qualifications for the 8(a) Program.  If key eligibility criteria are not met, you will be directed to the SBA resource deemed most appropriate to help you at this time.  Does Your Company Qualify As A Veteran Owned Business?  In order to qualify for these set-asides a business must have the following:  Meet small business size standard for primary NAICS code and contract  At least 51% unconditionally and directly owned by veterans who are U.S. citizens*  The veterans must manage the day-to-day operations  The veterans must make long-term decisions for the business  A veteran must hold the highest officer position  The veterans  must work at the business full-time during normal working hours  How Do You Prove That You Are A Veteran?  You will need to have a Department of Defense Form 214 (DD 214), which is a document that is issued when a military service member retires, separates, or is discharged from the military.   You will need a letter from the United States Department of Veteran Affairs stating you are service-disabled if you also intend to apply for service disables status. The VA benefits office can help you if you need to replace a lost disability status letter.  Registering with the VA  You will want your company to get certified as a veteran-owned business. This means that you should register with the VA because it is the only government agency with a formal verification process.  The VA actually has a number of contracts in which priority is given to service-disabled veterans and then to veterans. This is particularly important for nondisabled veterans, who do not get set-asides with the federal government. In short, registering with the VA increases the chances of a non service disabled veteran winning a contract.  How Do You Register?  The first step of getting certified is registering with VetBiz Registry. This is a veteran’s business database. You can also go to the Center for Veterans Enterprise which provides the registry and also includes step-by-step instructions on applying for VA Certification. Remember to have your DD 214 form handy.  You should also have the following:  Partnership Agreements  Corporate Charters  Organizational Charters   Board of Directors  Mission Statements  Inventory  Service Providers  Bank Statements  Tax Information  Some businesses can also be subject to onsite visits that can sometimes be unannounced.  What Is The SAM Directory?  SAM stands for System Award Management.  In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.  We have an article on our site, Everything You Need to Know About SAM for… Continue reading Diversity In Government Contracting

2020 Was Quite Unpredictable  The past year was certainly quite a ride. Many businesses had to suffer some very unexpected hard times. This type of roller coaster marketplace is one of the reasons that registering for the SAM directory in 2021 is a very smart move.  The Coronavirus has changed almost every aspect of life in the United States and around the world. Government contractors are facing some very unique challenges as they try to adjust to this ever-changing course of events. As we are in the midst of another lockdown, federal contractors can expect to find work providing valuable services.  This puts federal contractors in a very advantageous situation. Sure, there definitely have been some closures and work stoppages but there are some contractors that are still vitally needed during the pandemic.   Government Contracts Offer Security In These Uncertain Times.  Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many struggling businesses who are trying to survive this unprecedented situation.  You should remember that government agencies are in need of goods and services in a year-round capacity. This makes them one of the few consumers that are actually recession-proof and a great source of steady reliable income.  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 a 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 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 for 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.  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).  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 does not have to pay back. So, registering for the SAM directory actually gives you access to free money!  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 need to be supplied. Many government employees are essential workers and must continue working, no matter what the situation is… Continue reading Why Your Business Should Register For SAM In 2021

Get The Bid Package  After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package.  After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements.  The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments.  What Type Of Contract Is Being Sought?  The three major contracts that are being sought are fixed price, cost-reimbursement, and special situation.  Fixed-Price Contracts  These government contracts are used when the scope of work is clear from the beginning and therefore a price is determined by the agency in advance. There are many different types of this particular contract.  Firm Fixed-Price (FFP)  This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, then the business will keep the extra profit. This is a great contract for companies that are precise with their pricing and a lot of experience in the field.  Fixed-Price with Award Fees  A fixed price with award fees contract offers a hard and fast price for objective performance success. This contract will also have additional awards to incentivize more subjective qualities like aesthetic appearance and technical knowledge.  Special Situation Contracts  These include:  Labor hour: Direct labor hours expended are reimbursed at a hard and fast hourly rate, usually including all costs and profits. (See FAR 16.602)  Definite-quantity: The contract quantity is defined, but the delivery schedule is flexible. Payment is on some sort of fixed-price basis. (See FAR 16.502)  Requirements: Actual delivery schedules and quantities are flexible during the contract period. Payment is based on a predetermined fixed-price basis. (See FAR 16.503)  Special Bidding Techniques and Bid Office Terminology  New Bidding Techniques  Auction — A government buying technique where the bidding continues until no competitor is willing to submit a far better (i.e., lower) bid. The technique is usually mentioned as “reverse auction” because the government is trying to find a rock bottom price, not the very best price.  It is important to do your research and make sure that you can cover your costs in an auction process. Do not get caught up in the excitement of the moment and make calm rational decisions.  Bundling — a way where the govt consolidates two or more requirements that were normally bought separately into one contract. The support contracts of the many military bases, which require a spread of labor disciplines to stay at the bottom operating, are being bid in this manner.  In bundling, make sure that you carefully read all the provisions. It is important to not ignore the project management aspect of this type of bidding.  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 make a proposal in response to the government request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that type of solicitation.  Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here.  Request for Information (RFI). This is mostly to research the market and evaluate the interest and capabilities of contractors in a specific niche.  Make sure you read the solicitation requirements carefully. A solicitation package will include, documents, technical conditions, attachments, and various other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill. As for required documents, they are listed in the solicitation  Contact your contracting officer if you have questions. It is important that you understand every single thing about the solicitation that you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements.  Be Precise And Follow Directions  Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies fail to follow basic directions. Be aware of deadlines and do not leave anything black when filling out forms. The request for proposals or RFPs has very specific instructions and you must take everything seriously. Just think of it like filing your income taxes and do not take any unnecessary shortcuts.  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. 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 basically your ID code, and government agencies will identify your business using this code. It is a bit like a… Continue reading How To Get Government Construction Contracts Part- 2

Government Contracts Can Be Very Lucrative For Small Businesses  The United States government issues 500 billion dollars in federal contracts on a yearly basis. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.   Sam Directory will guide you through the process of writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract.  Understanding The Regulations  There are many advantages to being a successful government contractor. However, the government has stricter rules and regulations regarding accounting when compared to private sector clients. It is important to keep up with federal regulatory requirements.   Federal government agencies receive their funding from taxpayer dollars and they need to justify their spending in order to prevent waste. We will help you make sense of government accounting so you can develop a methodology that works for you and your business.  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.  Contingent Fees  A government contractor is not allowed to enter into an agreement with a third party where the third party will pay a fee contingent on the successful winning of a federal contract. This is to make sure that contractors are not tempted to cut corners in order to be paid.  Bribes  The Federal Anti-Bribery Statute, 18 U.S.C. §201 states that a potential federal contractor is not allowed to directly or indirectly offer something of value to a public official in exchange for influence on a public act. Small businesses must be aware to not do anything that seems to be in violation of this statute as they can be in danger of facing criminal charges. Gifts that can be considered a bribe include entertainment, travel, meals, and invitations to certain types of conferences. Generally, gifts that are under $20 are okay but be careful of the implications that being too generous can cause.  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 notices. 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.  Conflicts Of Interest  Subpart 9.5, organizational conflicts of interests (OCI) says the following:  The general rules in 9.505-1 through 9.505-4 prescribe limitations on contracting as the means of avoiding, neutralizing, or mitigating organizational conflicts of interest that might otherwise exist in the stated situations. Some illustrative examples are provided in 9.508. Conflicts may arise in situations not expressly covered in this section 9.505 or in the examples in 9.508. Each individual contracting situation should be examined on the basis of its particular facts and the nature of the proposed contract. The exercise of common sense, good judgment, and sound discretion is required in both the decision on whether a significant potential conflict exists and, if it does, the development of an appropriate means for resolving it. The two underlying principles are-        (a) Preventing the existence of conflicting roles that might bias a contractor’s judgment; and        (b) Preventing unfair competitive advantage. In addition to the other situations described in this subpart, an unfair competitive advantage exists where a contractor competing for the award of any Federal contract possesses-             (1) Proprietary information that was obtained from a Government official without proper authorization; or             (2) Source selection information (as defined in 2.101) that is relevant to the contract but is not available to all competitors and such information would assist that contractor in obtaining the contract.  A small business should be upfront about any situation that can cause a potential conflict of interests such as receiving sensitive information about the procurement in maybe an unrelated interview process.  Make Sure You Have Your CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  SAM Directory Can Help  Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential.  Let us, the professionals at SAM Directory, make sure that you do all that is needed to not miss out on this important opportunity. We will make certain that your application is processed quickly and efficiently so you can start being a federal contractor as soon as possible. We remove this hassle so you can go about the important mission of running your company. Stay tuned for the… Continue reading Federal Government Compliance For Small Businesses Part 1

Just like every other industry, the pandemic has had a profound effect on the government contracting industry. However, government contracting still can promise a profitable future for small businesses. The Consolidated Appropriations Act, 2018 has provided a large amount of funding for many government programs, including the military. This allowed for $500 billion dollars to be used for new government spending, which is very good news for many private contractors that work for the federal government.  The United States Government Is A Very Powerful Client With Deep Pockets  The Federal government usually spends billions of 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.  Changes In Defining Small Businesses  In 2020 the Small Business Runway Extension Act allowed governments to calculate small businesses in a different way so many more companies could qualify for small business government contracts. This means more businesses than ever can be eligible for lucrative government set asides.  Reforms In Security Clearances  There will be a complete overhaul of the Department of Defense’s clearance process which will actually affect all government agencies in 2021.  It is important for government contractors to be able to pass several security clearances. A background check on your company and employees is often a condition of employment.  This will include the following:  Employment  Education  Criminal Records  Credit History  Motor Vehicles and License Records  You should make sure that all your personnel and employees are able to pass this intensive screening. If there are any issues, make sure the government is made aware of 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.  Blockchain  Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks, are added to it. All the blocks contain timestamp information linking it to previous blocks, thus creating a chain. This allows for no data block to be altered without the alteration of all the blocks that came before it.  The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016 and it should be a very lucrative avenue for many small businesses.   Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security developing new technologies to address upcoming threats. In 2020,  small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies.  Cyber Security  As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. It is very important for the government to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2021, which might see unprecedented dangers as new systems are being installed in several federal agencies.. Cybersecurity will be used to protect voter databases and voting machines.  Cybersecurity is also going to be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand.  The Department Of Health And Human Services  The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19.  This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get their foot in the door with many other types of government agencies.  The Government Will Always March Forward  The Federal government will soon be back on track and in much need of goods and services provided by small businesses. Many agencies, such as the Department of Defense, are fully funded for the year. and will be moving forward with their contracts immediately.   To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the 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… Continue reading Government Contracting Trends For Small Businesses In 2021

Welcome Back!  We are happy that you are continuing to join us in our series on what to do if you do not agree with a decision made by the government about a contract award.  Time Tables for Filing a Protest to the Government Accounting Office or GAO  You must file a protest to the GAO within 10 wording days of learning of the agency’s initial adverse action. The GAO then can take up to 60 days to respond. The contractor can then file a notice of appeal and this can add another 90 days to the resolution of the protest. This appeal can take 60 to 120 days. You might wait four years to get a hearing on claims over $50,000, although the trial stage has been reached within two years in the Court of Federal Claims.  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.”  Disputes Are Only For The Contractor  Only a contractor is allowed to file a dispute claim. This means that subcontractors can not enter into the federal dispute process. This is because the contractor is an original party to the contract.  Typical Contractor Disputes  Some common contractor disputes are as follows:  Defective specifications  Changing delivery dates   Failure of the government to supply a contractor with what he/she needs to properly fulfill the requirements of the contract  Any other “event” that would keep a contractor from completing the contract or from being able to perform the contract.  The dispute is triggered when one of these events occurs and all informal attempts to resolve the issue fail.  Procedures for Disputes  For a dispute, a contractor is required to submit the claim in writing to the contracting officer.  The contractor should describe the following in the claim:  Situation   State   What action the claim 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 time period than 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.  Court Of Federal Claims  A government contractor also has the option of applying directly to the Court of Federal Claims as an alternative to the Notice of Appeal process. This court has authority under the Contracts Disputes Act to decide an appeal of a contracting officer’s final decision. This can take up to a year.  What Is The Amount Of Your Dispute  If Your Claim is under $100,000 than 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 make a decision 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.  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 resolving controversies, prior to the submission of a dispute.  Remember To Be Reasonable  When an unfair decision is put forth than 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.  Remember Nothing Happens Until You Register With SAM.  One of the first things that one needs to do is to be registered with  SAM.  SAM stands for System Award Management.  To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.  Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs will 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. With our help, you will be able to be on the path to government subcontracting quickly and efficiently. 

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. That will still hold true in the coming year despite the rocky start to this decade.  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. You also should be aware that working for such a large and powerful client is not without challenges.    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 a 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.  Government Funding  As we have stated before, the United States government is one of the wealthiest and most powerful clients in the world. However, no one has unlimited resources. Administrations change and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased.  One of the best ways to combat this is by supporting politicians that understand and promote your type of business. It is important to keep an eye on the political atmosphere and make sure that your voice is heard.  Department Of Defense  The Department of Defense is one of the largest consumers of government contracts in the world? Many companies think that this agency is only contracting with giant companies that supply tanks and missiles.  Remember, the Department of Defense supplies the Army, Navy, Airforce, and many other defense agencies. They are very open to working with small businesses and are fully funded for the rest of this year. In fact, they try to reward at least 20% of their contract to Small businesses. Companies can go to https://business.defense.gov/Small-Business/DoD-Small-Business-Offices/ to find out more information about contracting and subcontracting opportunities.   Innovation and Technology  We must remember that some great innovations in technology actually came out of this branch of the government. This includes the internet, which is a vital part of our lives and has changed the way we look at the world.  The Internet was initially a DARPA, the Defense Advanced Research Projects Agency project, as well as GPS, the cell phone, the computer mouse, and drones.   Being a defense contractor meant that you are on the cutting edge of tomorrow’s technology. This is not only a noble pursuit, but it allows you to gain a distinct advantage over other civilian tech companies.  Example  The United States Army has big plans for developing its air and missile defense system to be one of the best in the world. Lieutenant General James H. Dickinson, commanding general of the U.S. Army Space and Missile Defense Command/Army Forces Strategic Command, said, “Our vision is that the AMD force of 2028 will provide the combatant commanders with a flexible, agile, and integrated AMD force capable of executing multi-domain operations.”  The army is particularly interested in modernizing its radar technologies. This is a fantastic opportunity for innovative small businesses to step up to the plate and help the army build some new prototypes. The army is very open to working closely with new businesses in order to develop key technologies that will streamline operations in the future.  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.  Make Sure You Get A CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  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 does not have to pay back. So, registering for the SAM directory actually gives you access to free… Continue reading Government Contracting Strategies For Small Businesses 2021- Part 2

Understanding The Federal Contracting System  General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. The United States government basically needs everything and is a super consumer worth $500 billion dollars.  The government uses schedules to purchase goods and services. When there is a need in an agency it is called a schedule award. These are great opportunities for small businesses. A company needs to bid for the award. Once the award is won, the winning bid signifies a signed contract between the business and the government.  This means that learning how to bid for these government contracts is extremely important in order to be successful with this lucrative customer.  What Is A Government Contractor?  The United States Government is made up of several agencies that are in need of a variety of services. These agencies then offer contacts to private companies across several industries to fulfill these needs. Private contractors are vital in helping the government provide services for the welfare and protection of the citizens of the United States. Private government contractors provide goods and services for the following:   Medical Services  Utilities  Construction  Supplies for various projects  Engineering  Defense  Intellectual Technology  Energy  These are just a few of the categories that are often contracted out to private independent companies through the awarding of government contracts.  What Does This Mean For Small Businesses That Want To Be Government Contractors?  The Federal government is also required to set aside a certain amount of contracts for small businesses. At least 23 percent of government contracts will be awarded to small businesses this year. This means that smaller companies do not have to worry about being outcompeted by large companies with unlimited resources.  How Do I Know Government Contracting Is Right for My Company?  There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset.  Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage to get ahead and obtain some very lucrative contracts.  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. 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.  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 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.  How Do I Get On A Schedule  Collect all the documents you need and submit them to the GSA. A procurement officer will review your paperwork and either approve or decline your submission. This process requires some attention to detail.  Innovation Is Key  The government needs to be very careful about how they handle money that is provided by taxpayers. They are tasked with making sure that things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems.  The United States government is open to fresh perspectives and ideas that can streamline their systems or save them money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector.  Flex Your Expertise  This is not the time to be shy about your business’s accomplishments. Being a small business does not automatically mean that you are the underdog in the competition.  Bigger is certainly not always better.  Small businesses can often prove to be more agile, efficient, and have better response times when compared to their larger counterparts. A larger organization might not have the flexibility to pivot the way it can, which allows small businesses to be able to think on their feet during crises. Smaller companies can also provide more personalized customer services which is something all consumers appreciate.  Narrow In On The Customer’s Needs  At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big… Continue reading Rules For Obtaining Government Contracting For Small Businesses

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.  Innovation Is Key  The government needs to be very careful about how they handle money that is provided by taxpayers. They are tasked with making sure that things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems.  The United States government is open to fresh perspectives and ideas that can streamline their systems or save them money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector.  Flex Your Expertise  This is not the time to be shy about your business’s accomplishments. Being a small business does not automatically mean that you are the underdog in the competition.  Bigger is certainly not always better.  Small businesses can often prove to be more agile, efficient, and have better response times when compared to their larger counterparts. A larger organization might not have the flexibility to pivot the way you can, which allows small businesses to be able to think on their feet during crises. Smaller companies can also provide more personalized customer services which is something all consumers appreciate.  Be Precise And Follow Directions  Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies fail to follow basic directions. Be aware of deadlines and do not leave anything black when filling out forms. The request for proposals or RFPs has very specific instructions and you must take everything seriously. Just think of it like filing your income taxes and do not take any unnecessary shortcuts.  The Federal Government Has Government Personnel That Are Strictly Utilized to Help Small Businesses Be More Competitive In Securing Government Contracts  Here are some examples:  SBA Procurement Center Representative (PCR): Procurement Center Representatives are often located at a major government buying office, even though they technically work for the Small Business Administration. They will identify items and services that could be produced or provided by small businesses and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.   Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the major buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can prove to be burdensome. They also try to expand competition for items by offering challenges to requirements that are not deemed necessary for the performance or essential physical characteristics.   Small Business Specialists (SBS): The law requires that every government buying location must have a Small Business Specialist. These specialists work specifically with small businesses to help them to 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.   It is smart to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to succeed in obtaining government contracts.  National Contracts Management Association  The National Contracts Management Association (NCMA) is a government-supported organization that was started years ago (1959). It was started to help companies do business with the federal government.  The organization provides certification programs and educational seminars for small businesses. They also print a monthly magazine called Contract Management. The fee for new membership is $120 and can be thereafter renewed at $100 per year.  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.  Make Sure You Have Your CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  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… Continue reading Guide To Federal Contracting -Part 2

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 SAM directory.  Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Sam Directory will happily guide you through this often confusing process.  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 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.  Where Do You Find Government Contracts For Bidding  Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts that are above $25,000 on SAM.gov. This means that there are a large number of contracts advertises there at any given time.  Contact a procurement officer for information on contracts that are 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 certain criteria to work with the government. Here is also where you can find out if your business can be certified as 8(a), WOSB. or HUBZone.  The Bid  The Federal government has the following type fo 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 make a proposal in response to the government request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that type of solicitation.  Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here.  Request for Information (RFI). This is mostly to research the market and evaluate the interest and capabilities of contractors in a specific niche.  Make sure you read the solicitation requirements carefully. A solicitation package will include, documents, technical conditions, attachments, and various other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill. As for required documents, they are listed in the solicitation  Contact your contracting officer if you have questions. It is important that you understand every single thing about the solicitation that you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements.  Small Business Administration Certifications  A Small Business Administration certification is a great way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business:  Women-Owned Small Business Federal Contract Program (WOSBs)  8(a) Business Development Program  The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB)  Historically Underutilized Business Zone Program (HUBZone)  Networking  Sometimes the hardest step is getting your foot in the door. Networking is extremely important when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events throughout the year. These events are usually no cost to business owners and can offer a treasure trove of information about how to obtain contracts from various agencies.   This is your opportunity to shine so make sure you are prepared to present an elevator pitch to better define your company. This is a speech that explains what your business has to offer and how you can help another organization meet their 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 are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online.  At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts:  Inquire about the vendor Outreach Sessions and when will they be held  Inquire how your company’s products/services could help with the agency’s missions  Request meetings with Agency Program managers leading the contract requirements you’re pursuing  If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from.