What Type Of Contract Is Being Sought?
The three major contracts that are being sought are fixed price, cost-reimbursement, and special situation.
Fixed-Price Contracts
These government contracts are used when the scope of work is clear from the beginning and therefore a price is determined by the agency in advance. There are many different types of this particular contract.
Firm Fixed-Price (FFP)
This contract means that the price is set in stone and the vendor or small business awarded the contract will be taking all the risk. So if the contract is over budget, the small business owner has to pay out of pocket. However, if the project is under budget, then the business will keep the extra profit. This is a great contract for companies that are precise with their pricing and a lot of experience in the field.
Fixed-Price with Award Fees
A fixed price with award fees contract offers a hard and fast price for objective performance success. This contract will also have additional awards to incentivize more subjective qualities like aesthetic appearance and technical knowledge.
Special Situation Contracts
These include:
- Labor hour: Direct labor hours expended are reimbursed at a hard and fast hourly rate, usually including all costs and profits. (See FAR 16.602)
- Definite-quantity: The contract quantity is defined, but the delivery schedule is flexible. Payment is on some sort of fixed-price basis. (See FAR 16.502)
- Requirements: Actual delivery schedules and quantities are flexible during the contract period. Payment is based on a predetermined fixed-price basis. (See FAR 16.503)
- Special Bidding Techniques and Bid Office Terminology
Get The Bid Package
After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package.
After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements.
The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments.
Here is a list of websites that are provided by the government to help small businesses obtain contracting information.
FedBizOpps (Federal Business Opportunities): This is the spot for government procurement opportunities of $25,000 or more. Here, buyers for the government are able to publicize their business opportunities by posting information directly to FedBizOpps and commercial companies looking to do business with the government are able to find opportunities solicited by the entire federal contracting community. (http://www.fbo.gov)
Small Business Administration (SBA): This site has a great deal of information pertaining to small businesses as well as SBA-Net, a gateway to opportunities, and a great place to network. It has a direct connection to the CCR database, which is fast becoming the sole database used by government buyers to locate potential small business contractors.
Procurement Gateway: This is the Defense Logistics Agency site for all opportunities posted from its procurement offices. The defense department is one of the largest consumers of goods and services in the government. Their procurement department is encouraged to work with small businesses and this can be a very lucrative opportunity for a lot of small to midsize companies.
Federal Acquisition Jumpstation: This site has most links to the federal sites that small business owners would be smart to explore
Recovery.gov – This particular government website provides easy access to important data related to the Recovery Act and allows for the reporting of potential fraud, abuse, and other types of government waste
E-Verify – This is a handy website in which employers can determine if an employee is eligible to work in the United States based on information reported on the employee’s I-9 form.
USA.gov – This site is all-encompassing and has a lot to offer small businesses. It is a gateway to other government websites that can be very important to small businesses. This is the place to find info on how to do business with the federal government, Data and Statistics, Laws, and Regulations.
FedWorld– This system contains the full text of 7,407 U.S. Supreme Court Decisions from 1937 to 1975. Decisions are available as ASCII text files that can be read on your browser’s screen or saved to your hard drive and accessed by using most word processor programs. It often also has a listing of government jobs
Department of Veteran Affairs–This government agency is particularly helpful to assist veteran-owned small businesses in obtaining federal contracting opportunities.
How Do You Get Started Working With The Government?
For example, the following are the steps to apply for a federal grant:
- Step 1: Obtain a DUNS Number
- Step 2: Register with SAM
- Step 3: Register with Grants.gov
You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions.
Make Sure You Get A CAGE Code (Commercial and Government Entity)
This code is five characters and unique to your business. It’s your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its unique code, and each location must be registered separately with SAM.
Register With SAM
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.