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What Is Government Contracting?  Government contracting is when specific government agencies contract with private companies for specific goods or services. The agencies usually put out a contract or often a request for proposal (RFP) and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor.  Why Work For The Government?  There are many compelling reasons to work for the Federal Government.  We will go into in-depth detail about how a small business can benefit greatly from being a government contractor.  Small Business Administration Certifications  A Small Business Administration certification is a great way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business:  Women-Owned Small Business Federal Contract Program (WOSBs)  8(a) Business Development Program  The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB)  Historically Underutilized Business Zone Program (HUBZone)  Small Businesses Are Given Special Consideration When It Comes To Government Contracts  In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid.  The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. However, many small businesses fail to realize that the government actually has an abundance of websites to help them find these government contracting opportunities.  The Federal Government Offers Great Opportunities For Many Types Of Businesses  The government 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.  Special Programs  Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, which are administered by the Small Business Administration (SBA), assist small businesses on how to obtain both large business and government procurements.  Here is a list of websites that are provided by the government to help small businesses obtain contracting information.  Publications  The government has issued some publications to also assist small businesses. They are as follows:   Selling to the Military: Has all the information needed about items the military is currently looking to purchase. This includes contact information for the buying offices and the Small Business Office.  Small Business Specialists for DoD: This is a listing of names, addresses, and phone numbers for all the resources you need to do business with the Department of Defense which is one of the most well-funded purchasers in the government.  Participating in the VA Acquisition Program: This publication covers general information about how and what the Veterans Administration buys.  Do Your Research  Once you have selected some agencies that are in need of your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online.  At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need in order to win lucrative government contracts:  Inquire about the vendor Outreach Sessions and when will they be held  Inquire how your company’s products/services could help with the agency’s missions  Request meetings with Agency Program managers leading the contract requirements you’re pursuing  If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that 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.  A Fantastic Presentation Is The Key To Success  Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process.  Make Sure You Have Your CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  How Do You Get Started Working With The Government?  SAM stands for System Award Management.  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. 

Each year, the Federal Government spends billions of dollars on the construction of roads, schools, and other public infrastructure. This is a great field to pursue that will not be slowing down anytime soon due to the recent pandemic.  Register With SAM  SAM stands for System Award Management.  In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.  How Do You Get Started Working With The Government?  For example, the following are the steps to apply for a federal grant:  Step 1: Obtain a DUNS Number  Step 2: Register with SAM  Step 3: Register with Grants.gov  You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions.  Make Sure You Get A CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  Websites That Help Your Business Find Contracting Jobs  Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, which are administered by the Small Business Administration (SBA), assist small businesses on how to obtain both large business and government procurements.  Here is a list of websites that are provided by the government to help small businesses obtain contracting information.  FedBizOpps (Federal Business Opportunities): This is the spot for government procurement opportunities of $25,000 or more. Here, buyers for the government are able to publicize their business opportunities by posting information directly to FedBizOpps and commercial companies looking to do business with the government are able to find opportunities solicited by the entire federal contracting community. (http://www.fbo.gov)  Small Business Administration (SBA): This site has a great deal of information pertaining to small businesses as well as SBA-Net, a gateway to opportunities, and a great place to network. It has a direct connection to the CCR database, which is fast becoming the sole database used by government buyers to locate potential small business contractors.  Procurement Gateway: This is the Defense Logistics Agency site for all opportunities posted from its procurement offices. The defense department is one of the largest consumers of goods and services in the government. Their procurement department is encouraged to work with small businesses and this can be a very lucrative opportunity for a lot of small to midsize companies.  Federal Acquisition Jumpstation: This site has most links to the federal sites that small business owners would be smart to explore  Recovery.gov – This particular government website provides easy access to important data related to the Recovery Act  and allows for the reporting of potential fraud, abuse, and other types of government waste  E-Verify – This is a handy website in which employers can determine if an employee is eligible to work in the United States based on information reported on the employee’s I-9 form.   USA.gov – This site is all-encompassing and has a lot to offer small businesses. It is a gateway to other government websites that can be very important to small businesses. This is the place to find info on how to do business with the federal government, Data and Statistics, Laws, and Regulations.  FedWorld– This system contains the full text of 7,407 U.S. Supreme Court Decisions from 1937 to 1975. Decisions are available as ASCII text files that can be read on your browser’s screen or saved to your hard drive and accessed by using most word processor programs. It often also has a listing of government jobs  Department of Veteran Affairs–This government agency is particularly helpful to assist veteran-owned small businesses in obtaining federal contracting opportunities.  Library of Congress–This is a guide to finding information on federal government contracting. It is intended for anyone, from novice contractors to those who have more experience with working with the government. Included are statistical sources, news sources, and administrative sources.  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… Continue reading How To Get Government Construction Contracts

Small Businesses Are Given Special Consideration When It Comes To Government Contracts  In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid.  The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards.  So, How Does A Small Business Successfully Start Relationships With Key Government Contractors?  The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms that are commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows to better understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill.  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.  Never Underestimate The Power Of Relationships  As part of understanding your customer, it is very important to build strong relationships within the government agencies. The government is not a giant cold faceless entity. It is made up of people and they will appreciate the opportunity to speak to you face to face. An impressive interview might win you a supporter that will lobby in your favor.  Think About Subcontracting  Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is actually answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Subcontracting has many advantages for less experienced businesses.  Special Programs  Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, which are administered by the Small Business Administration (SBA), assist small businesses on how to obtain both large business and government procurements.  Here is a list of websites that are provided by the government to help small businesses obtain contracting information.  FedBizOpps (Federal Business Opportunities): This is the spot for government procurement opportunities of $25,000 or more. Here, buyers for the government are able to publicize their business opportunities by posting information directly to FedBizOpps and commercial companies looking to do business with the government are able to find opportunities solicited by the entire federal contracting community. (http://www.fbo.gov)  Small Business Administration (SBA): This site has a great deal of information pertaining to small businesses as well as SBA-Net, a gateway to opportunities, and a great place to network. It has a direct connection to the CCR database, which is fast becoming the sole database used by government buyers to locate potential small business contractors.  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.   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.  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. 

Welcome Back!  In the first part of our series, we talked about some of the technical things your business needs to complete in order to land your first government contract. Now, we will discuss some ways in which you can get your foot in the door to this lucrative world.   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 points with the government.  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.  Never Underestimate The Power Of Relationships  As part of understanding your customer, it is very important to build strong relationships within the government agencies. The government is not a giant cold faceless entity. It is made up of people and they will appreciate the opportunity to speak to you face to face. An impressive interview might win you a supporter that will lobby in your favor.  Think About Subcontracting  Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is actually answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Subcontracting has many advantages for less experienced businesses.  Federal Contracting Also Makes Prime Contractors Want To Seek Out Businesses That Are Traditionally Disadvantaged  This means that prime contractors are on the lookout for talented businesses that are owned by women, minorities, and veterans. This provides opportunities for these groups in federal contracting that might not be available in other markets. Also, it is not unusual for prime contractors to be very loyal to their subcontractors and give them several avenues for repeat business. These are incredibly valuable relationships and firms should develop a strategy for how to approach these types of potential partners.  So, How Does A Small Business Successfully Start Relationships With Key Government Contractors?  The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms that are commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows to better understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill.  A Fantastic Presentation Is The Key To Success  Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process.  Be Prepared To Give An Oral Presentation  Oral presentations are very common for companies who want to work for the United States government. This is not going to be your typical audience. You might not get the greeting and niceties that usually come with this type of business meeting. The government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period.  You Still Need To Make Yourself Stand Out  The federal government will be watching many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. It is important that your presentation is unique and memorable in a positive way. Your company really needs to catch their attention.  Make Sure You Establish A Good Business Reputation  Try to establish a network of government contacts at various agencies. These contacts can often serve as invaluable advocates for your business. They can also give you advice on how to navigate the bidding process. After you receive awards, make sure you work hard to establish a track record of reliability and success.    Make Sure You Have Your CAGE Code (Commercial and Government Entity)  This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.  SAM Directory Can Help  Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential.  Let us, the 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… Continue reading How To Obtain Your First Federal Contract As A Small Business- Part 2

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 advertised 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.  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.  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 Competitive  Use resources like USASpending.gov or govspend.com to compare your bids using third-party service providers. The government uses Most Favored Customer or MFC to determine what is fair and reasonable pricing.  This is defined as”  A Standard Clause allows a buyer to obtain the best possible price on goods or services from a seller by requiring it to provide the buyer with the lowest price among all buyers in that market. If the seller wants to offer a different buyer a lower price, it must also first offer that price to the buyer with the most favored customer clause (MFC), also known as a most favored nation clause. MFCs can implicate US antitrust laws, which analyze the enforceability of MFCs using a rule of reason analysis. This Standard Clause addresses the price of goods and has integrated drafting notes with important explanations and drafting tips.  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  Fixed-Price with Economic Price Adjustment  The prices are often adjusted at the top of the project to account for changes within the cost of labor, materials, or market prices of specific items within the contract. The criteria for these sorts of price changes must be defined within the original contract.  Fixed Price Incentive (FPI)  This contract states a maximum price but it also awards the service provider for coming in under budget. So coming under budget in this type of contract allows for a larger profit for the small business provider.  Cost-Reimbursement Contracts  Cost-reimbursement is a category of contracts that are used when it would be too difficult to estimate the cost of the project in advance. They usually define a spending limit but are a way 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.  Submission  It usually takes the government 30 to 120 days to review your submission. The Contracting Officer evaluates many factors including financial figures of your business, how long it has been on the market, past performance reports, and, of course, if your pricing is competitive.  Whether your proposal is accepted or rejected, you will receive a response from the Gov’t. Sometimes, the Contracting Officer requests some more information or asks you to clarify some issues. If… Continue reading Government Contracting Procedures

So, How Does A Small Business Successfully Start Relationships With Key Government Contractors?  The first step is to become familiar with the government marketplace. Do your research and become familiar with the terms that are commonly used in that industry. Then study the different regulations and become certified with the government, if necessary. You could also attend government trade shows to better understand the needs of particular government and state agencies. This will help you identify the needs of prime contractors and any niches that your business could fill.  Can a Small Business really hope to compete for federal government contracts?  The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts1 to small businesses.  In 2018 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year.  The following facts are also very enlightening:  In FY18, the federal government exceeded the service-disabled-veteran-owned small business and small disadvantaged business goals and the prime contract dollar awards in all small business categories increased from previous years.  The federal government also exceeded its subcontract goals for awards to small businesses and women-owned small businesses and awarded more than $79 billion in subcontracts to all small businesses.  A Fantastic Presentation Is The Key To Success  Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process.  You Still Need To Make Yourself Stand Out  The federal government will be watching many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. It is important that your presentation is unique and memorable in a positive way. Your company really needs to catch their attention.  The Three Steps  All federal government presentations have three distinct informational phases:   The people who will work on the project  The project’s management  The company’s problem-solving abilities  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.  Make Sure You Establish A Good Business Reputation  Try to establish a network of government contacts at various agencies. These contacts can often serve as invaluable advocates for your business. They can also give you advice on how to navigate the bidding process. After you receive awards, make sure you work hard to establish a track record of reliability and success.    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.  Think About Subcontracting  Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is actually answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Subcontracting has many advantages for less experienced businesses.  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  SAM stands for System Award Management.  To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.  Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential.  Let us, the professionals at SAM Directory, make sure that you do all that is needed to not miss out on this important opportunity. We will make certain that your application is processed quickly and efficiently so you can start being a federal contractor as soon as possible. We remove this hassle so you can go about the important mission of… Continue reading How Small Business Can Break Into Federal Government Contracting

Simplified Procedures  In 1994 the Federal Acquisition Act or FASA simplified the buying procedures of the government.  Many of the more harsh restrictions on government purchases were removed for any purchase that was less than $100,000. Now agencies used much simpler procedures for analyzing and soliciting bids up to the $100,000 amount. However, the government is still required to advertise all purchases over $25,000 at www.fbo.gov.  These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are not as complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive on price and quality  Purchases that do not exceed $2,500 individually or through the combination of multiple items are considered micro-purchases. These do not require competitive quotes but are not limited to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards.  Bidding  The government usually makes sure contracts are competitive through the use of sealed bidding. First, the agency makes sure that its requirements are accurate and complete. Then an Invitation For Bid or IFB is issued. The IFB will describe the type of product or service that is being procured by the government. It also includes:  Preparation Instructions   Conditions of Purchase  Packaging   Delivery   shipping   The payment with contract clauses to be included  Submission Deadline  The sealed bids are opened in public at the purchasing office at the time designated in the invitation.  The bids are read aloud and then recorded. The contract will be rewarded to the bidder who has the most competitive pricing and can meet the government agency’s requirements.   Government-wide IFBs can be found at FedBizOpps which provides a direct link to the invitation. Potential contractors can search the Central Contractor Registration to identify qualified small business opportunities. Any small business that wants to sell to the government should be registered on CCR.  Consolidated Purchasing Programs  Just like any other organization, the federal government has common purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies.   For this reason, it made sense to centralize the purchasing of various types of common products and services.  Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts or GWACs. These types of contracts help obtain long term vendor agreements with fewer vendors. The GWACs have become very popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action from scratch. Agencies can now competitively award several or multiple task order contracts to different firms for the same products and services. This practice allows federal buyers to issue orders to anyone or a combination of several firms with relative ease.  What Do I Need To Register For The Sam Directory?  You will need the following :  A Data Universal Numbering System or DUNS from Dun and Bradstreet  Your Tax Identification Number or TIN  A Social Security Number if you are a Sole Proprietor.  What Is A DUNS Number?  The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number as a social security number for your business.  Any contracting opportunity within the System for Award Management (SAM) will require a DUNS number.  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.  Make Sure You Have The Right Staff  It is vitally important that government contractors have skilled accounting staff to ensure that the company is in compliance with all policy regulations. The company must have adequate policies and procedures in place for the prevention of mistakes, and especially for their timely discovery and correction. This helps cut down on exposure to accounting errors that jeopardize contractors, inaccurate data, incorrect data entry into the system, or errors in the performance of internal accounting processes.  Make Sure You Are Organized  Having solid financial records and a clear thought out process goes a long way to impress government agencies that you can handle the job. It presents a professional demeanor that is quite impressive.  The Key To Winning A Government Contract Is To Pay Attention To Guidelines  It is very important that you read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.   Make Use Of Government-Provided Free Tools.  You can identify contracting opportunities online by utilizing tools such as this forecasting tool that lets you see what opportunities are available. You can study the government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire and you put in your proposal.  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. 

The United States Government Want To Encourage the Success of Small Businesses  As we mentioned in the first part of this series, the federal government is required to set aside at least 23 percent of its total spending specifically for small businesses.  This includes contracts specifically 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.  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.  However, it is important for businesses to understand the various ways that contracts can be terminated. We want to make sure that you protect your business from unneeded risk and liability.  Contract Administration Issues  Federal contracts are different from the average commercial contracts. They have general contract provisions that are totally unique to the government.  These contract provisions include statutory or regulatory requirements that only apply to the federal government. They include the following:  Termination for default   Termination for convenience  Contract changes  Payments  Specifications  Inspection   Testing.   These matters are described in the Federal Acquisition Regulations. We covered termination for default and termination for convenience in the first part of our series. Now, we will continue to explain how you can protect your company from unnecessary risk and liability when contracting with the federal government.  Contract Changes  It is not uncommon for the needs of the government to change periodically. This means that government contracts contain a clause that authorizes the contracting officer to order change in the specifications and other terms of the contract. You will be required to perform the contract as it is unilaterally changed by the contracting authority. This type of change usually occurs in the scope of the contract itself. However, the government can not use this type of change to disrupt the general nature of the contract. You will be entitled to an equitable adjustment in price and delivery schedule if changes are ordered.  Payments  The government is obligated to make prompt payments for any products delivered or services rendered by the contractor on any type of procurement contract. Obviously, prompt payment is essential to the lifeblood of any small business. The contract that you sign will have very specific instructions for invoicing the office or agency that is administrating your contract. You must make sure that your payment process is accurate so that you can be paid as quickly as possible. This type of efficient payment benefits both the government and contractor. If the government does not provide prompt payment under certain circumstances, then you submit a request for interest payments under Public Law 97-177, Prompt Payment Act.  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. The method of payment can vary depending on the dollar value of the contract. Lump sums are usually paid out for relatively small contracts with a single item of work. Payment is usually made when the government accepts delivery. Progress payments based on the cost incurred may be available on larger contracts where the first delivery may be several months after the contract is signed.   However, since progress payments are given when the work is not completed, you must repay them if you fail to complete the work. The government protects its interest by taking title to your work-in-process for which progress payments have been made. To qualify for progress payments, you must have an accounting system that can accurately identify and segregate contract costs.  Specifications  The invitation for bids or requests for proposals will contain exact specifications for most of the products and services needed by the government. This precise language will also be included in your contract.  After you are awarded the contract, you are contractually obligated to deliver the product or services that are described in the specifications. Basic specifications can make reference to federal specifications. You will be bound by all the terms and conditions of the specifications and failure to deliver a product or service meeting these exacting terms can result in the termination of your contract by default.  Make sure that you never bid on a contract unless you have read and understood all the specifications required for performance. Make sure that you understand all that is required before signing the contract.  Inspection And Testing  In federal contracts, the government has the right to inspect and test the items you deliver to determine if they conform to contract requirements and specifications. The government does not have to accept a contractor’s product unless it passes inspection. The type and extent of inspection and testing depend largely on what is being procured.  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 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… Continue reading Federal Contract Termination-Part 2

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.   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.  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.  Amazing Benefits  The Department of Defense is known for providing excellent benefits.  Here is a list of some of the great perks of working with this organization:  Paid Time Off that can increase every year  Tuition Reimbursement  Short and Long Term Disability  Life insurance with family options  Great Medical and Dental benefits  Job Security And Work-Life Balance  Startups might sound glamorous but they are far from secure. The statistics say:  90% of new startups fail.  75% of venture-backed startups fail.  Under 50% of companies make it to their fifth year.  33% of startups make it to the 10-year mark.  Only 40% of startups actually turn a profit.  82% of companies that fail do so due to income problems.  The highest failure rate occurs within the information industry (63%)  In defense contracting, you are under a pressure cooker to get a product to market and under the control of nervous financiers.  Instead, you have a fixed timeline and a payment schedule that is already in place. This means no insane 12 hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having realistic milestones that actually are attainable.  Opportunities For Diversity  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.  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.  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.  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… Continue reading Is Government Contracting Right For Your Business?

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.  However, Federal contractors are also in a very unusual situation. Sure, there definitely have been some closures and work stoppages but there are some contractors that are still vitally needed during the pandemic.   The Federal Government is Sympathetic to the Situation.  The government understands that many contractors are in precarious situations. Right now more than ever government agencies are emphasizing how important it is to communicate and document issues in scheduling and performance for potential relief in the future.  The Office of Management and Budget issued the following statement to the various government agencies:  “be flexible in providing extensions to performance dates if telework or other flexible work solutions, such as virtual work environments, are not possible, or if a contractor is unable to perform in a timely manner due to quarantining social distancing, or other COVID-19 related interruptions.”  Government contractors may be entitled to relief for the following reasons:  Delays caused by Covid-19  Increased performance costs due to Covid-19  Costs from government-initiated contract terminations caused by COVID 19  Performance issued that are the result of complication due to COVID 19  Cost Recoveries  Most government contracts operate under the “four corners of the document rule” This means that you must look into the terms and conditions of the contract itself to understand what can be utilized to protect your interests. An example is if a contracting officer failed to cooperate with the terms of the contract.  Public Law 85-804, the President may “authorize any department or agency … to enter into contracts or into amendments or modifications of contracts … whenever he deems that such action would facilitate the national defense.” This allows for relief under extraordinary circumstances, which could include situations such as those that arise under this unexpected pandemic.   Excusable Delays  Under FAR 52.249-8, a contractor will be excused from liability “for any excess costs if the failure to perform the contract arises from causes beyond the control and without the fault or negligence of the contractor.” Epidemics and quarantine restrictions are examples of excusable delays as listed under this clause.  However, certain causation must be established. You must be able to connect the excusable delay and the delay in the performance of the contract. It is vital to immediately document the cause of the delay as soon as possible.  FAR 52.242-17, which provides a broad remedy for “any” contracting officer action “or inaction” that affects performance and causes cost or schedule impacts. For example, if a contractor has to be onsite, but then the site is closed to the coronavirus and the contractor is not permitted to be onsite. Make sure you contact your contracting officer and inform them of any impact you are experiencing immediately.  Work Stoppages  In government contracts, a stop-work order can be issued for 90 days or more depending on the agreement. After this period is over, usually the contractor must resume with the work or the contracting officer terminates the contract. The government contractor must assert entitlements to an adjustment within 30 days after the period ends in order to collect a recovery. This usually consists of equitable adjustment plus profit or extension of billing schedule or both.  This remedy is available to only involuntary work stoppages. A voluntary work stoppage would consist of people not coming to work by their own decisions, due to the need to self-quarantine during the pandemic. This would excuse performance but would not be considered a contestable delay.  With any delay, contact the contracting officer, document the delay, and that it was due to a government act, and document the cost impact of the delay.  Excusable Defenses  Excusable delays prevent the government from terminating a contractor for default when the problem is not under the control of the contractor. This is called excusable defenses to a termination for default.  FAR 52.249-8 says the following:  (c) Except for defaults of subcontractors at any tier, the Contractor shall not be liable for any excess costs if the failure to perform the contract arises from causes beyond the control and without the fault or negligence of the Contractor. Examples of such causes include (1) acts of God or of the public enemy, (2) acts of the Government in either its sovereign or contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions (7) strikes, (8) freight embargoes, and (9) unusually severe weather. In each instance, the failure to perform must be beyond the control and without the fault or negligence of the Contractor.  (d) If the failure to perform is caused by the default of a subcontractor at any tier, and if the cause of the default is beyond the control of both the Contractor and subcontractor and without the fault or negligence of either, the Contractor shall not be liable for any excess costs for failure to perform, unless the subcontracted supplies or services were obtainable from other sources insufficient time for the Contractor to meet the required delivery schedule.  Government contractors should document everything, including what proactive measures they considered, such as looking for alternatives to employees working on site, to mitigate damages. This shows that the contractor did their best to avoid any delays.  This Pandemic Will Not Last Forever  The Federal government will soon be back on track and in much need of goods and services provided by small businesses. Many agencies, such as the Department of Defense, are fully funded for the year. and will be moving forward with their contracts immediately.   To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.  Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs… Continue reading How Has The Coronavirus Affected Government Contracting?