Small Business Guide To Crafting Successful Bids For Government Contracts

Where Do You Find Government Contracts For Bidding

Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts above $25,000 on SAM.gov. This means that there are many contracts advertised there at any given time.

Contact a procurement officer for information on contracts below the $25,000 threshold for publishing.

Look To Your Local PTAC Office

Procurement Technical Assistance Centers or PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets specific criteria to work with the government. You can also find out if your business can be certified as 8(a), WOSB., or HUBZone.

Understanding The Federal Contracting System

General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. As a result, the United States government needs everything and is a super consumer worth billions of dollars.

The government uses schedules to purchase goods and services. When there is a need in an agency, it is called a schedule award. Small businesses can bid for it. Once the award is won, the winning bid signifies a signed contract between the company and the government.

This means that learning how to bid for these government contracts is extremely important to succeed with this lucrative customer.

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. In addition, the government will not hire any type of business that has not been written in the SAM directory.

We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process.

As a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step to becoming a government contractor.

The First Step Is Registering With SAM

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. In addition, Sam Directory will happily guide you through this often confusing process.

The Bid

The Federal government has the following type of solicitations for bidding:

  • Request for Quotation (RFQ). This type is for contracts below $150,000 with a simplified acquisition procedure.
  • Request for Proposal (RFP). This type of solicitation asks vendors to propose in response to the government’s request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that solicitation.
  • Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here.
  • Request for Information (RFI). This is primarily to research the market and evaluate the interest and capabilities of contractors in a specific niche.

Read the solicitation requirements carefully. A solicitation package will include documents, technical conditions, attachments, and other things required with the submission. For most federal government contracts under RFP and IFB solicitations, there are standard contracting forms you should fill out. For needed documents, they are listed in the solicitation.

Contact your contracting officer if you have questions. You must understand everything about the solicitation you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to make sure you know the regulations and requirements.

Small Business Administration Certifications

A Small Business Administration certification is an excellent way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business:

  • Women-Owned Small Business Federal Contract Program (WOSBs)
  • 8(a) Business Development Program
  • The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB)
  • Historically Underutilized Business Zone Program (HUBZone)

Networking

Sometimes the most challenging step is getting your foot in the door. Networking is critical when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events. These events are usually at no cost to business owners and can offer a treasure trove of information about obtaining contracts from various agencies. 

This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to define your company better. This speech explains what your business offers and how you can help another organization meet its goals. It should be short and simple, no longer than a 30-second elevator ride.

Do Your Research

Once you have selected some agencies that require your goods and services, it is essential 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 where 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 significant issues with the government. Here are a couple of examples of how you can find the information you need to win lucrative government contracts:

  • Inquire about the vendor Outreach Sessions and when will they 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 want to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, which describes how government money is spent, what agency is issuing awards, and who the federal government is buying from.