How Small Businesses Should Maneuver In The World of Government Contracting

The First Step Is Registering With SAM

To do 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 been registered in the SAM directory.

Please read one of the helpful blog articles on our site, 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 easy for you. In addition, Sam Directory will happily guide you through this often confusing process.

What do I need to register for the Sam Directory?

You will need the following :

  • A Data Universal Numbering System or DUNS from Dun and Bradstreet
  • Your Tax Identification Number or TIN
  • A Social Security Number if you are a Sole Proprietor.

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 below the $25,000 threshold for publishing.

Simplified Procedures

In 1994 the Federal Acquisition Act FASA simplified the buying procedures of the government.

Many more harsh restrictions on government purchases were removed for purchases less than $100,000. Now agencies use much simpler procedures for analyzing and soliciting bids up to $100,000. However, the government must still 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 in price and quality.

Purchases not exceeding $2,500 individually or through 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.

Consolidated Purchasing Programs

Like any other organization, the federal government has everyday purchasing needs such as petroleum products, carpets, furniture, perishable goods, and standard office supplies. 

For this reason, it made sense to centralize purchasing various standard products and services.

Some new procurement models for acquisition include multi-agency contracts and government-wide acquisition contracts. These arrangements help obtain long-term vendor agreements with fewer vendors. The GWACs have become popular because they allow government buyers to quickly fill requirements by issuing orders against existing contracts or schedules without starting a new procurement action. Agencies can now award multiple task orders 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.

Counseling

The government also offers more personalized guidance through counseling. There are also commercial counseling programs.

The Procurement Technical Assistance Centers or PTACs offer valuable assistance to small businesses. They can be found in educational institutions. These counselors are well known for their expertise. There is also a government-backed membership organization called the National Contracts Management Association. 

The PTACs help small businesses locate marketing opportunities and assist with various e-commerce issues. They can also help you prepare financial reports, procurement forms, and contractual paperwork and provide guidance on quality assurance. Most of their services are free though there can be a nominal charge for services such as electronic bid matching. You can contact one of the regional directors at The Association of Procurement Technical Assistance Centers for more information. In addition, the website www.sellingtothegovernment.net could help you to locate a PTAC near you.

National Contracts Management Association

The National Contracts Management Association (NCMA) is a government-supported organization that started years ago (1959). It was started to help companies do business with the federal government.

The organization provides certification programs and educational seminars for small businesses. They also print a monthly magazine called Contract Management. The fee for new membership is $120 and can be renewed at $100 per year.

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 every year. 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. 

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.

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.