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The Sam Directory is here to help you understand how your company can gain access to lucrative government contracts. We want to be your guide to making sure your business does not lose out on excellent opportunities. So, now we want to help you navigate the bidding process. 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 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. Cost-Plus-Fixed-Fee This contract includes a limit for expenses that will be reimbursed along with a fixed payment for the service provider. Cost-Plus-Incentive Like Fixed-Price-Incentive contracts, this provides a financial incentive for the service provider to come in under budget, while also covering project expenses. Cost-Plus-Award-Fee This contract states that the govt client can pay the expenses of completing the project and also provides financial awards supported criteria outlined beforehand. 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 Time and Materials Contracts This is also a special situation contract. The government rarely awards this type of contract because of the expense. A Time and Material Contract requires paying directly for any and all costs that are associated with the particular project. Labor Hour Contracts are defined as a variation of the time-and-materials contract, differing only in that materials are not supplied by the contractor. See 12.207 (b), 16.601 (c), and 16.601 (d) for application and limitations, for time-and-materials contracts that also apply to labor-hour contracts. See 12.207 (b) for the utilization of labor-hour contracts for certain commercial services. Labor Hour Contracts do not include the cost of materials. 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 govt 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. 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… Continue reading The Bidding Process For Government Contracts

After you let SAM Directory help you complete your registration with SAM, you are probably wondering what government agencies are hiring contractors. The good news is that there are hundreds of agencies that have lucrative contracts for your business. Here is a list of a few of the biggest agencies. Department of Energy The Department of Energy defines its mission as “…. to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.” The Department of Energy has a network of 36 Facility Management Contracts.  They include the following: Office of Energy Efficiency and Renewable Energy Office of Environmental Management Office of Fossil Energy Office of Nuclear Energy Office of Science National Nuclear Security Administration This provides many opportunities for contractors that have energy management capabilities and supplies. 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. 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. Here are just some of the agencies that need everything from educational materials to custodial services: Army Aberdeen Proving Ground Army Contracting Command Army Corps of Engineers (HQ) Navy Marine Corps Installations and Logistics Marine Corps System Command Military Sealift Command Air Force Air Force District of Washington AFLCMC 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. The United States Department Of Agriculture (USDA) The USDA is in charge of food, agriculture, rural development, and natural resources just to name a few of its responsibilities. They are made up of 29 agencies and have 4,500 locations across the United States and abroad.  Obviously they have a great need for agriculture-based suppliers and services. However, many businesses do not realize that they also have construction jobs, like road repair, for their forestry department. Here is a list of some of their divisions: Environment Management Division Response and Restoration, Sustainable Practices, BioPreferred Property Management Division Real Property, Personal Property, and Fleet Management Procurement Policy Division Policy and Regulations, Acquisition Workforce, and Special Procurement Programs Procurement Operations Division Manages the procurement operation functions to acquire supplies and services for Departmental Management, Staff Offices and USDA Department-wide procurements. Procurement Systems Division Management of USDA’s Automated Procurement System, Integrated Acquisition System (IAS) Safety & Health Management Division Workers Compensation and Safe Working Conditions Credit Card Services Center Purchase, Fleet and Travel Cards Lease Accountability and Strategy Division Peace Corps The mission of the Peace Corps “Is to promote world peace and friendship by fulfilling three goals: 1) to help the people of interested countries in meeting their need for trained men and women; 2) to help promote a better understanding of Americans on the part of the peoples served, and 3) to help promote a better a better understanding of other peoples on the part of Americans.” This agency needs everything from supplies for rural leaving to emergency first aid equipment. Go to https://www.peacecorps.gov/about/open-government/contracts/ and contact the Office of Acquisition and Contract Management with any questions about contracting with this organization. This Is Only The Tip Of The Iceberg There are actually 10 other departments in the federal government that contain hundreds of agencies. These places have a wide variety of needs that can easily be filled by small businesses. Working with one agency often opens the door to other departments, making the scope of opportunities endless. How To Search We highly recommend that you go to FBO.gov (also known as FedBizOpps.gov). This is a centralized search where you can find many types of government contracting jobs from just about any federal agency. Remember 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.

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. 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. Responsibilities of Contractors When you are awarded a government contract, it is vitally important that you read it carefully before signing the document. This might be intimidating since many contracts are very long. However, there are often standard terms that are commonly reused, depending on the complexity of the purchase. Understanding these terms will help you go through the contract more effectively. Make sure you know what government office or agency is administering the contract. This is usually the same office that awarded the contract to your business. However, there can be exceptions. The Department of Defense has a special office that administers all their contracts. You want to make certain that you direct any questions to the correct department. 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. Termination For Default Government contracts provide that the government may cancel or terminate your contract if: You fail to make delivery within the time specified in the contract; You fail to make progress so as to endanger performance of the contract; You fail to perform any provisions of the contract. You will get the opportunity to cure the defects in your performance or prove why your contract should not be terminated. Your business will also be entitled to payment for items purchased and accepted by the government. The government also has the right to purchase any items that you failed to deliver from other vendors and pass the costs on to you. Your contract will not be terminated for default if you can prove that your failure to deliver is excusable. This means that the issue is beyond your control and not caused by any negligence or fault on your part. If your contract is terminated for default and you can prove that the government’s action was improper, the termination will be treated as one for the “convenience of the government”. Termination For Convenience The federal government can actually terminate a contract for its own convenience even though there is no fault on the part of the contractor. This protects the government’s interest by allowing the government to cancel contracts that have become obsolete or unnecessary. For termination for convenience, the government is required to give written notice of the termination but is not obligated to give you advance notice. This notice will usually direct the contractor to stop all work on the project and place no further orders. You will also have to notify and terminate any subcontractors that were hired for the job. You will also receive instructions on how to preserve and protect what is now government-owned property. After all, this is completed you can prepare a termination settlement claim to present to the government for losses. Failure to stop work can result in great risk and expense. The government will make a settlement to you after the termination of convenience. This settlement should compensate you fully and fairly for the terminated part of the contract. They will also include a modest allowance for profit. 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. 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. 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… Continue reading Federal Contract Termination-Part 1

The beginning of the decade is a great time for small business owners to get their hands on lucrative government contracts. The Small Business Administration has changed the rules on how to measure what qualifies as a small business. The 2018 Small Business Runway Extension Act will increase the period of measuring annual revenue from three to five years when the business is being evaluated for government contracts. This means a lot more businesses will qualify for small business set-asides. In fact, nearly a quarter of all government contracts have gone to small businesses in the last five years. So What Are The Top Areas For Government Contracting? Here at Sam Directory, we have comprised a list of the hottest areas for contracting with the government in 2020. We want to be one of your main resources for information about this profitable area of business. Cloud Computing More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies are relying on cloud computing to maintain multiple copies of the data to mitigate instances of security threats, data loss, and data breach. The government is no exception. They understand that cloud computing will lower costs significantly and help them manage their data more efficiently. Small businesses that understand how to utilize cloud computing should be in a very good position to cash in on this new wave of data management architecture. 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 2020, which will be an election year. 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. Streamlining and Modernizing Information Technology Did you know that the Internal Revenue Service, the Veteran’s Affairs Department, Defense Department, and the Transportation Department are operating on computer systems that are over 50 years old? Some are still using 1970 IBM mainframe computers that store information on floppy disks! This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized that 100 hundred million dollars be allocated to modernizing the federal government Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act also then added billions of dollars to upgrade the government’s I.T. systems and update infrastructure. So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2020 and beyond. 2020 Is A Big Election Year The beginning of this decade will decide a presidential election, one-third of the seats in the senate, and 435 seats in the House of Representatives. This does not even take into account all the local and state-level elections that will be going on across the country. This will be a giant boon for small businesses that can provide the equipment and supplies necessary to make sure all these elections run smoothly. Homeland security alone will be spending 425 million dollars to help protect voting security and privacy. Air And Missile Defense Innovation 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. 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… Continue reading Government Contracting Trends for 2020

Advantages 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. Important Laws Section 8(d) of the Small Business Act and, in most cases, FAR 19.7 incorporate several laws regarding small business subcontracting. These laws require prime contractors to provide subcontracting opportunities to small businesses. This includes: HUBZone small business  Small disadvantaged business  Women-owned small business  Veteran-owned small business (VOSB) Service-disabled VOSB So the government requires that on contract over $500,000 or a million when constructing a facility that is public, that large prime contractors must turn in plans for subcontracting percentage goals for small business, HUBZone small business, small disadvantaged business, women-owned small business, VOSB, and service-disabled VOSB. These plans must describe in detail the methods used to make sure that small businesses have a fair chance to compete for government contracts. This is required to be submitted for review prior to the award of any government contract that meets this threshold. If a prime contractor fails to comply with this regulation then they might be subject to liquidated damages or termination for default. This rule does not apply to contracts that are under the prescribed dollar amount, contracts that are going to be completed fully outside the United States of America, contracts that have no subcontractor opportunities, and small businesses. 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. Are There Any Other Advantages For A New Business To Registering For The SAM Directory Besides Government Contracting Opportunities? A business has to be registered with SAM before they can begin to apply for valuable federal grants. What Is A Federal Grant? A grant may be a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and lots of other programs within the Catalog of Federal Domestic Assistance (CFDA). The following are the steps to apply for a grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov Disadvantages High-Level Security and Background Checks It is important for government contractors to be able to pass several security clearances. A background check on your company and employees is often a condition of employment. This will include the following: Employment Education Criminal Records Credit History Motor Vehicles and License Records You should make sure that all your personnel and employees are able to pass this intensive screening. If there are any issues, make sure the government is made aware of it ahead of time, so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts. Certification and Education Usually, the agency sets specific educational and certification guidelines when they post a request for proposals or RFP. These requirements can vary depending on the type of work that is needed. However, there are some steps that any business can do to become more attractive for government contracting work. Understanding Audits Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following: timeliness of payments to subcontractors documentation of contractor oversight of subcontractors documentation of enforcement of flow downs documentation of support for subcontractor billings documentation of subcontractor reviews Federal government agencies receive their funding from taxpayer dollars and they need to justify their spending 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. How Do You Get Started? 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… Continue reading The Advantages and Disadvantages Of Being A Government Contractor

One of your first important decisions when starting a business is deciding what type of business entity best suits your needs. The business entity you choose can have serious consequences regarding liability and taxation. This article will help you better understand your options. What is a business entity? A business entity is a corporation created by one or more natural persons to hold on a trade or business. The following are types of business entities: Sole proprietorship: Unincorporated business with one owner or jointly owned jointly owned by a marriage General partnership: Unincorporated business with two or more owners Limited partnership: Registered business composed of active, general partners and passive, limited partners Limited liability company: Registered business with limited liability for all members Professional limited liability company: LLC structure for professionals, like doctors and accountants C-corporation: Incorporated business composed of shareholders, directors, and officers S-corporation: An Incorporated business that is taxed as a pass-through entity Professional corporation: Corporate structure for professionals, such as doctors and accountants B-corporation: For-profit corporation that is certified for meeting social and environmental standards Nonprofit: Corporations: Formed primarily to benefit the public interest rather than earn a profit. What is personal liability? Personal liability means that your personal assets are exposed if one of your co-owners or employees commits an unlawful action that injures someone, such as writing a defamatory article or post. If there is a judgment against your company, it can be satisfied by reaching into your bank account, home, or automobile simply because of your status as an owner of the business. Sole Proprietorship If your business is going to be fairly small a sole proprietorship might be the right business entity for your needs. You, as the owner, will be in control of all business decisions and profits. You will also only be taxed one time on all business profits. The greatest disadvantage of a sole proprietorship is that there is an unlimited liability. This means that you will be held personally responsible for all the business debts and losses. This is great for the type of person who truly enjoys independence and wants to make their own rules without answering to others. You are your business and are okay with there being no formal division. Partnership A partnership is similar to a sole proprietorship except that there is more than one individual that owns the business. The liability of the partners for the debts of the business is unlimited. Each partner is ‘jointly and severally’ responsible for the partnership’s debts; that’s , each partner is responsible for their share of the partnership debts also as being liable for all the debts of the business. This means that you can be held responsible for your partner’s neglectful actions. If you are someone who enjoys working with a team and does not want to shoulder all the responsibility for the business yourself, a partnership might work for you. If you have the right blend of personalities you can complement each other quite well and be stronger than any of the partners could ever be on their own. Limited Partnership A limited partnership contains two distinct types of partners: General Partners Limited Partners The general partners run the day to day activities of the business. The general partners are also personally liable for a business’s debts and liabilities. The limited partners do not have much to do with the way a business is run. They have limited liability concerning a business’s debts and they usually pay fewer taxes regarding the profit. The limited partners can be looked upon as silent investors. If you want to retain primary authority in your business but definitely could use some other sources of cash than a limited partnership would be a great compromise. C-Corporation A C-corporation (c-corp) is when the business is considered separate from its owners and operators.  A c-corp consists of shareholders (the owners), a board of directors, and officers who have control over the corporation. One person can fulfill all these functions. The great advantage of a c-corp is that the owner/owners are not personally liable for the debts and liabilities of the company. The disadvantage is that there is double taxation on profits. First, the corporation is taxed as a separate entity and then you are again taxed on the profits in your own personal taxes. This is a great model for those who really want to start a business that is quite large in scope and size. However, you will be answerable to your shareholders for good and bad outcomes of your business decisions. S-Corporation If your corporation has fewer than 100 shareholders who are all individuals, not corporations; have only one class of stock, and be owned by U.S. citizens or resident aliens you could turn your business into an S-Corporation (s-corp). An s corp is not subject to double taxation as a c corp is. That means that an s corp’s revenue is not taxed at the corporate level. It is only taxed when paying out as salaries or dividends to shareholders. An s-corp is often a better choice than a c-corp for most small businesses.  It should also be noted that corporations have a lot of regulations regarding paperwork and documentation. This is not an entity for you if you want to be footloose and fancy-free. Limited Liability Company (LLC) Limited Liability Companies are extremely popular among many business owners because they often combine the best both worlds when it comes to liability and taxation. These hybrids clear their owners of personal liability for the business’s debts or liabilities. They also allow you to actually choose whether you want your LLC to be taxed as a partnership or as a corporation. At the end of the day, you are the one who should decide what business entity best suits your needs. Make sure you consider important factors like taxation and liability. You should also go to your secretary of state’s website to find out what it takes to formally… Continue reading Choosing the Right Business Entity for Your Business

A Powerful Client 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. Subcontracting Is An Excellent Way To Get Started Perhaps you are a little intimidated by the prospect of working with the government. You would like an ideal scenario where you can ease into the lucrative business of government contracting and be able to pick things up at your own pace. Subcontracting is a fantastic way for you to ease into government contracting at your own pace but still take part in the multi-billion dollar marketplace.  What Is A subcontractor? A government subcontractor is defined by Federal Acquisition Regulation (FAR) 3.502-1 as: Any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract and includes any person who offers to furnish or furnishes general supplies to the prime contract or a higher tier subcontractor. A prime contractor contracts directly with the client, which in this case is the federal government.  The subcontractor would enter into an agreement with the prime contractor (prime) to provide goods and /or services to the prime for them to be able to fulfill the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience with government contracting and build their reputation with various government agencies. Useful Definitions Prime contractor — The business wins to bid for a contract with the government. Higher-tier subcontractor — a subcontractor that also contracts other subcontractors to perform services or provide supplies in order to complete work for the contracts they have entered into with prime contractors. Consultants — It is easy to confuse consultants with subcontractors. Consultant services are defined by Federal Acquisition Regulation (FAR) as “rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Examples include those services acquired by a contractor or subcontractor in order to enhance their legal, economic, financial, or technical positions. Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.” How Does A Small Business Become A Subcontractor? One of the first things that one needs to do is to be registered with  SAM. SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not 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. Do Your research Search on the internet to see if the agency that your business is interested in has a subcontracting opportunity directory. Some agencies, such as the Department of Defense, has a directory that is specifically intended for small business. Outreach Events There is nothing better than good old fashioned networking to make the connections needed in order to get subcontracting opportunities. There are many outreach events across the country in which contractors solicit contracting work. Here is a listing of events: International Contracting Week – Las Vegas 2020 Attendees will be exposed to a wide range of legal and compliance issues that impact their businesses and ultimately affect their organizations’ bottom lines. Courses offered during International Contracting Week are relevant to personnel in a wide range of functions, including contracts, procurement, compliance, legal and risk management. This weeklong conference is: Federal Subcontracting for Primes and Subs200 Attendees will understand the rights and obligations relating to subcontracting performance and management that result from government contract terms and conditions and the FAR and will develop the skills necessary to use and maintain these rights during subcontract performance and management, beginning with the development of technical, quality and delivery requirements through a clear and mutually agreeable statement of work. Earned Value Management & EVM System Fundamentals The EVM and EVMS Fundamentals Workshop is designed for professionals and organizations who are new to earned value management (EVM) concepts and requirements. It will also be useful for those who are considering bidding on contracts that will have an EVM reporting and system requirement. Attendees will gain a better understanding of the requirements as well as the level of resources and effort required to implement a system.  Does Your Business Qualify For Set-Asides? If at least 51% of your business is owned by a minority, woman, or veteran then your business might be eligible for set-asides reserved for underrepresented groups. Does your business meet the following criteria: A business must meet small business size standards. At least 51 percent of a business must be owned by U.S. citizens. The business officers must show good character. The business must demonstrate the potential for success. There are separate eligibility requirements for businesses owned by American Indians, Native Alaskans, Native Hawaiians, Woman, Veteran or Certified Development Companies.  At least 51 percent of a business must be owned, controlled, and managed by one or more person(s) who meet the SBA requirements for being socially disadvantaged and economically disadvantaged. Make Sure You Have The Proper Documentation It is important to make sure that all of your licenses and liability insurance paperwork is in order. Prime contractors favor subs that are organized and run on precision. Also, prepare a Capability Statement. This is the marketing one-pager you need… Continue reading What Is A Government Subcontractor?

The business landscape has changed dramatically in the last decade. One thing that has always remained constant, the United States Federal Government is one the largest and most powerful consumers of goods and services in the whole world. Being a government contractor is a highly desired position for any business. What does this mean for small businesses who 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. What qualifies as a small business for government contracting purposes? 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. How do I know that being a government contractor is right for my company? There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset. Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage. Are you a disadvantaged or a minority business owner and are interested in government contracting? There were certain groups that have experienced discrimination in the past that were not related to their individual qualifications. This discrimination kept them from participating in the free market because they did not have access to capital. In response, the Federal government tries to award contracts to businesses that are at least fifty one percent owned by those from disadvantaged groups. Competitive 8(a) The 8(a) Business Development Program reserves federal contracts for competition among small businesses owned by socially and economically disadvantaged person(s). To qualify a business must meet the following criteria: To be eligible for the Competitive 8(a) program: A business must meet small business size standards. At least 51 percent of a business must be owned by U.S. citizens. The business officers must show good character. The business must demonstrate the potential for success. There are separate eligibility requirements for businesses owned by American Indians, Native Alaskans, Native Hawaiians or Certified Development Companies.  At least 51 percent of a business must be owned, controlled, and managed by one or more person(s) who meet the SBA requirements for being socially disadvantaged and economically disadvantaged. The federal government reserves contracts for competition among small businesses owned by economically disadvantaged women. The contracts must be in industries where women-owned businesses are underrepresented. Businesses certify for EDWOSB status through the SBA. To be eligible for EDWOSB status: Economically Disadvantaged Woman-Owned Small Business (EDWOSB) A business must meet small business size standards. Women must manage day-to-day operations and make long-term decisions. A woman must hold the highest officer position and work at the business full-time during normal working hours. At least 51 percent of your business must be owned by one or more economically disadvantaged women who are U.S. citizens. To qualify as economically disadvantaged through the EDWOSB program, a woman must meet these requirements: Have a personal net worth of $750,000 or less. The fair market value of all assets must be $6 million or less. Have an adjusted gross yearly income (averaged over the three years prior to the certification) less than $350,000.  There are also programs for veterans, Native Americans, and other disadvantaged groups. What is the SAM Directory? SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. 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. Now that I am in the SAM directory, where do I find Federal government contracting jobs? The following are some places where you can find federal contracting opportunities: Search for the Contracting Opportunity Finder. It’s geared to businesses new to federal contracting. Sign up for notifications from and search the FedBizOpps database of federal contracting opportunities. Become part of the General Services Administration (GSA) Schedules Program. Find contracts through individual agencies’ Offices of Small and Disadvantaged Business Utilization. Become a subcontractor by working for another company that already has a contract with the federal government.  This is a good way to introduce your company to a contract with the government and to build a track record of success. Make sure your NAICS number is up to date and correct. 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. The Bidding Process for government contracting. Now that you met the needed requirements for being a Federal contractor, you are ready to submit bids. Make sure you are responding to solicitations and not pre solicitations. Pre solicitations are only requests for information and might not lead to an actual job. Carefully go through all the paperwork and follow directions. You want to make sure your bid is not thrown out for inaccuracy or failing to provide important data. Now that you… Continue reading Everything You Need to Know About Being a Government Contractor

Great for Entrepreneurs Being an entrepreneur is exciting but also presents its own unique challenges. Financing is a large obstacle that is often not easy to overcome. Simply put, the more money that you have at your disposal the more options will be available to make sure your business is on the right path to success. Unfortunately, many companies never properly explore the field of government grants. They assume that they do not qualify for grants and never even try to apply. What is a Government Grant? A government grant is a financial award given by the federal, state, or local government authority for a beneficial project of some sort. It is effectively a gift: It does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money. Why is the government giving away free money? Innovation and ingenuity are important to any society. In order for any economy to be competitive in the modern world, they must make sure to open up avenues to grow and nurture new businesses. To put it simply, the government gives out grants because it serves the greater good to serve the needs of the people. Grants are a great way to even the playing field. We have all heard stories about great entrepreneurs with relatively humble beginnings. Grants are in place because few people have the capital to start a business without some assistance. This is particularly true for minorities and women who might have faced discrimination in the past that hindered them from pursuing their business goals. Grants for Women Here is a listing for the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant Is it difficult to obtain a Grant? In truth, grants can be very competitive. It is important to read instructions so that you can thoroughly understand the application process. You do not want your grant application to be thrown out because you did not provide the correct paperwork or information. A small business should also be aware of deadlines. However, please do not let a challenging application dissuade you from trying to qualify for grants. There is nothing truer than the saying about never making any of the shots you don’t take. There are also websites that can help you through the process. The first steps 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. What are some examples of grants for Small Businesses? The Small Business Innovation Research (SBIR) encourages small businesses in the United States to engage in research and development that has economic potential. Their website states their mission of the is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy. SBIR Goals The program’s goals are four-fold: Stimulate technological innovation. Meet Federal research and development needs. Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons. Increase private-sector commercialization of innovations derived from Federal research and development funding. Program Participants The following are a list of agencies that participate in the SBIR program: Department of Agriculture Department of Commerce – National Institute of Standards and Technology Department of Commerce – National Oceanic and Atmospheric Administration Department of Defense Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Department of Transportation Environmental Protection Agency National Aeronautics and Space Administration National Science Foundation The Small Business Technology Transfer (STTR) is another program that expands funding opportunities in the federal innovation research and development (R&D) arena. The mission of the STTR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy. STTR Goals The programs’ goals are to: Stimulate technological innovation. Foster technology transfer through cooperative R&D between small businesses and research institutions. Increase private-sector commercialization of innovations derived from federal R&D. STTR Program Participants Participating government agencies include the following: Department of Defense Department of Energy Department of Health and Human Services National Aeronautics and Space Administration National Science Foundation These are some great opportunities at the federal level for any small business. Do not forget about State and Local Grants. State grants are often geared to that particular state’s economic concerns. They are often supposed to work in tandem with federal grants but can be much less competitive. Go to Grants.gov to get a complete listing of what is offered in your state. Also, do not forget your own local municipal governments. Do a deep dive into your community to find out what is available. Again, every little bit helps and sometimes money is left on the table because people are unaware of what is out there on a local level. When applying for a grant, think about what you are doing for the community. What are you bringing to the table? Does your business model further the altruistic goals? For example, if you are part of a small community of at least 50,000 people, you could qualify for a Rural Business Development Grant The Government is always looking to nurture innovation in Rural Areas Their websites describe this program as a competitive grant designed to support targeted technical assistance, training… Continue reading How Registering for the SAM Directory is a Path to Free Money. Government Grants for Your Small Business Can Not Afford To Ignore

Women Should Be Aware of Government Opportunities. In the modern age, women have a unique opportunity to be the masters of their own destinies. Numerous smart and ambitious women are becoming entrepreneurs and running their own companies. However, many women are intimidated by the daunting process of being a government contractor The following statistic supports the power of women: More than 11.6 million firms are owned by women, employing nearly 9 million people, and generating $1.7 trillion in sales as of 2017. Women-owned firms (51% or more) account for 39% of all privately held firms and contribute 8% of employment and 4.2% of revenues. The government is required to set aside a certain percentage of contracts for Women-Owned Small Businesses At least five percent of government contracts have to be awarded to women-owned small businesses. 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 women who are U.S. citizens* The woman must manage the day-to-day operations The woman must make long-term decisions for the business A woman must hold the highest officer position The woman must work at the business full-time during normal working hours No minimum amount of time the business has been operational To qualify as economically disadvantaged through the EDWOSB program, a woman must meet these requirements: Have a personal net worth of $750,000 or less. The fair market value of all assets must be $6 million or less. Have an adjusted gross yearly income (averaged over the three years prior to the certification) less than $350,000.  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. What is the SAM Directory? SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. Luckily our site takes this headache off your hands. You can leave this important step to the experts at https://www.sam.directory so you can concentrate on more important matters. The best part is once you register, you will no longer have to keep reentering important information every time you apply for a new government opportunity. You will need a DUNS number. You’ll also need a D&B D-U-N-S® Number, which is a unique nine-character identification number issued to your business. You can register for your D-U-N-S Number free of charge by calling 1-866-705-5711 or by visiting Dun & Bradstreet’s Government D-U-N-S Number registration page. Registering in the SAM Directory also gives you access to government grants. Government grants are alike free money from the government that you do not have to pay back. You have to register in SAM before you can apply for Federal Grants. For example, here is a listing for the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant Read our article, Government Grants, A Guide to Free Money! to find out more about how registering for SAM can help provide great funding opportunities for your business. Make sure you receive certification. To be eligible to compete for woman-owned small business set-asides or receive sole-source awards, you must either be certified by a Small Business Administration (SBA) approved Third-Party Certifier (TPC), OR self-certify in accordance with current SBA regulations. There are currently four SBA-approved TPCs. They are:        El Paso Hispanic Chamber of Commerce        National Women Business Owners Corporation        US Women’s Chamber of Commerce        Women’s Business Enterprise National Council (WBENC) You can learn more about the requirements for the government’s woman-owned small business certification requirements on the SBA’s website. Prove how you stand out from the crowd. The United States Federal Government is one of the most powerful consumers of goods and services in the world. They are an extremely fantastic client for any business to have. Be organized. Have all of your documents in order and ready for inspection. Luckily, there are a lot of software programs out there that can make sure everything is available at the touch of a finger. Prove your responsibility. Nothing shows reliability like your business being able to have an excellent credit score. The government is working with taxpayers’ dollars and they want to be secure that you are trustworthy. Make sure all your finances are in good order. Read Directions! Sometimes you really did learn all you need to know in elementary school. When a government issues a request for proposals they often have very specific directions for what needs to be submitted. Missing information or not filling out a document properly can be immediate grounds for rejection. You can also use this precision as a business tool to help you determine whether or not your company is equipped to handle the scope of the project. You have totally got this! Always remember how amazing you are and how much you have accomplished in your life. You can move mountains if you put your mind to it and being a government contractor is a pathway to business success. Your business also has https://www.sam.directory to help make some of… Continue reading How Women Can Get Government Contracts