How To Be A Defense Contractor

What Is A Government Contractor?

The United States Government is made up of several agencies that require a variety of services. These agencies then offer contacts to private companies across several industries to fulfill these needs. Private contractors are vital in helping the government provide services for the welfare and protection of United States citizens. Private government contractors provide goods and services for the following: 

  • Medical Services
  • Utilities
  • Construction
  • Supplies for various projects
  • Engineering
  • Defense
  • Intellectual Technology
  • Energy

These are just a few of the categories that are often contracted out to private independent companies through the awarding of government contracts.

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. 

Innovation and Technology

We must remember that some great innovations in technology actually came out of this branch of the government. This includes the internet, which is a vital part of our lives and has changed the way we look at the world.  The Internet was initially a DARPA, the Defense Advanced Research Projects Agency project, as well as GPS, the cell phone, the computer mouse, and drones. 

Being a defense contractor means that you are on the cutting edge of tomorrow’s technology. This is not only a noble pursuit, but it allows you to gain a distinct advantage over other civilian tech companies.

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 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 underserved groups to have a real chance to get awarded lucrative government contracts.

What Does This Mean For Small Businesses That 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. This means that smaller companies do not have to worry about being outcompeted by large companies with unlimited resources.

How Do I Know Government Contracting 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 to get ahead and obtain some very lucrative contracts.

Work Environment

Government contractors can work in a wide variety of environments, depending on what service they are providing. A tech company might be consultants on large-scale computer-oriented projects. Where an energy company might be on oil rigs supervising the drilling mechanism needed to complete the work.

Contractors who do well and maintain good reputations often are guaranteed to participate in future projects.

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.

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 become a government contractor.

Registering With The SAM Directory Also Has Other Important Advantages

You must register with the SAM directory 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 gives you access to free money!