Staying Ahead Of The Curve As A Small Business Government Contractor

Understanding The Marketplace

It might at first feel like working for the government is very unpredictable. Contractors can be affected by a variety of factors such as budget cuts, regulatory pressures, change of administration, and stringent accounting rules.

However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use their products and services.

This is also true for the United States Government. You will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee you the federal government as a solid client that can assure your business of a bright future.

Government Funding

As we have stated before, the United States government is one of the world’s wealthiest and most powerful clients. 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.

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. They try to reward at least 20% of their contract to Small businesses. Companies can go to to find out more information about contracting and subcontracting opportunities. 

Innovation and Technology

We must remember that some great innovations in technology 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 meant 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.

Streamlining and Modernizing Information Technology

Did you know that the Internal Revenue Service, the Veteran’s Affairs Department, Defense Department, and the Transportation Department are operating on computer systems that are over 50 years old? Some are still using 1970 IBM mainframe computers that store information on floppy disks!

This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized that 100 hundred million dollars be allocated to modernizing the federal government Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act also then added billions of dollars to upgrade the government’s I.T. systems and update infrastructure.

So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2020 and beyond.

There Will Be An Increase In IT Spending

The demand for information technology services in the federal government has created ample opportunities for companies in this field. More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies are relying on cloud computing to maintain multiple copies of the data to mitigate instances of security threats, data loss, and data breach.

The government is no exception. They understand that cloud computing will lower costs significantly and help them manage their data more efficiently. Small businesses that understand how to utilize cloud computing should be in a very good position to cash in on this new wave of data management architecture.

Cyber Security Will Also Be A Lucrative Field

As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines.

Cybersecurity is also going to be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand.

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.

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.