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 Is A Government Contractor?
The United States Government is made up of several agencies that are in need of 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 the citizens of the United States. 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.
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.
Make Sure You Establish A Good Business Reputation
We have already mentioned that a certain number of federal contracts are always set aside specifically for small businesses. The Small Business Administration or SBA has reported that the United States government buys almost $100 billion dollars worth of goods and services just from small businesses each year. This large amount does not even include the money spent on contracting at the state or municipal levels.
Try to establish a network of government contacts at various agencies. These contact can often serve as invaluable advocates for your business. They can also give you advice on how to navigate the bidding process. After your receive awards, make sure you work hard to establish a track record of reliability and success.
Make Sure You Register With SAM
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.
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.
SAM Makes Things Easier
SAM has conveniently combined the many government agencies into one directory. Registering for the SAM directory makes sure that your business is being seen and noticed by a large group of Federal Agencies. This system has efficiently streamlined contracting for both the government and the individual businesses.
When government procurement agencies are casting their search net for companies to send their proposals, your company being a registered entity in the SAM directory makes sure that you will be in their sightline.
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. Make sure your NAICS number is up to date
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.
Submitting Bids
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.
Your company should utilize online databases for federal contracting opportunities. You should closely follow all directions for submitting a bit as set out by the agency when they make a request for proposals.
Now that you understand government contracting, your business is ready to make the most of these lucrative opportunities. Take the bull by the horns and help your business acquire this amazingly beneficial client.