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.
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 the government agency’s pain points 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 they will 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.
The Capability Statement
Capability statements are essential marketing tools. These written documents state your firm’s abilities in a clear and compact manner. This should include a company overview, past performance, and how you can fill a need for the agency. To stand out from other businesses, be sure to tailor your statement to specifically match the project and/or agency needs.
Government Funding
As we have stated before, the United States government is one of the wealthiest and most powerful clients in the world. However, no one has unlimited resources. Administrations change and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased.
One of the best ways to combat this is by supporting politicians that understand and promote your type of business. It is important to keep an eye on the political atmosphere and make sure that your voice is heard.
The United States Government Is A Very Powerful Client With Deep Pockets
The Federal government usually spends hundreds of billions of dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout.
The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace.
Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly.
The United States Federal Government
The United States government buys many of the products and services it needs from suppliers who meet certain qualifications. It applies standardized procedures by which to acquire goods and services. That is, the government does not purchase items or services in the same way in which private companies might secure business. The procedures used by the government can be found in the Federal Acquisition Regulation (FAR).
What is FAR?
The FAR is a standardized set of regulations employed by all federal agencies in making purchases. It provides procedures for how to maneuver the procurement process. It takes you through the need for the product and service to the award of the contract.
The Federal Government Offers Great Opportunities For Many Types Of Businesses
The government actually 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.
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.