Government Contracting Forecast For 2023
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 its foot in the door with many other types of government agencies.
Cyber Security
As the world becomes increasingly higher-tech, security breaches are more likely in data management than on the battlefield. It is essential 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.
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 breaches.
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.
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, is 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 also means that operating costs are lower. The United States government became interested in blockchain technology in 2016 and it should be a very lucrative avenue for many small businesses.
Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security to develop new technologies to address upcoming threats. In 2020, small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies.
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 details 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.
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 them ahead of time, so that an explanation can be given. For example, if you are participating in programs that rehabilitate criminals by giving them jobs. Transparency is often the best way to deal with situations that might cause an issue in obtaining lucrative government contracts.
Accounting
The standard is higher for government accounting when compared to private commercial markets. Contractors will face challenges in making sure that the federal government’s stringent accounting standards are met in a precise manner.
Remember the government has to prove how efficient they are with money because they are spending taxpayer dollars. This means that federal contractors must be meticulous in their accounting methodology in case of an audit.
At first, these stringent rules of accounting can seem very daunting. However, today there are many cutting-edge technologies that can take the pressure off by making even the most complex accounting procedures quite simple. Also, having a strong accounting system in place will only make your company better in the long run.
Register For 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.
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.