The United States Federal Government
The United States government buys many products and services from suppliers who meet certain qualifications. It applies standardized procedures to acquire goods and services. The procedures used by the government can be found in the Federal Acquisition Regulation (FAR).
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 measuring 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. Nearly a quarter of all government contracts have gone to small businesses in the last five years.
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 Veterans 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.
Understanding The Marketplace
It might initially feel like working for the government is unpredictable. Contractors can be affected by various factors such as budget cuts, regulatory pressures, changes in administration, and stringent accounting rules.
However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to ensure that they have a deep understanding of the end buyer and why they want to use its products and services.
This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee the federal government a solid client that can assure your business of a bright future.
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.
Cyber Security
As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. The government needs 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 will also 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.
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. All the blocks contain timestamp information linking them to previous blocks, thus creating a chain. This allows no data block to be altered without altering all the blocks that came before it.
The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016, and it should be a very lucrative avenue for many small businesses.
Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security to develop new technologies to address upcoming threats. In 2020, small business contractors can use Innovation OTS to form government partnerships and provide innovative technologies.
How Do You Get Started Working With The Government?
SAM stands for System Award Management.
To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not 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 becoming a government contractor.