Are you a business owner looking to expand your market reach and increase profitability? Bidding on government contracts might be the perfect solution for you. The federal government alone purchases millions of dollars worth of goods and services every year from private sector businesses. But with a complex bidding process, it can be intimidating to dive into this market. But don’t worry, we have got you covered. In this blog, we will walk you through the benefits and opportunities of bidding on government contracts.
1. Diversify Your Revenue Streams
Bidding on government contracts can provide significant financial benefits to your business. By winning a government contract, you can tap into a stable revenue stream that comes with a guaranteed payment schedule. This can help your business stay afloat during otherwise lean times. Besides, by putting your hat in the ring for government contracts, you can also spread your risk by diversifying your revenue streams. It prevents you from relying on a single customer base, a crucial part of any thriving business.
2. Access to Large Market
Usually, government contracts often require certain levels of expertise, experience and a quality profile to participate in the bidding process. If you meet these set standards, you will have an excellent opportunity to tap into a vast new customer base for your SMEs. As such, bidding on government contracts can help you reach a more diverse and significant market beyond your traditional territories.
3. Better Payment Terms
Agencies responsible for the issuance of government contracts can take long to release payments compared to other known customers. Nonetheless, with an established reputation, trust and respect, you can even enjoy early payments, which can be crucial for the cash flow and sustainability of your business.
4. Increased Brand Visibility
Establishing a partnership with the government enables SMEs to boost their marketing efforts without extra expenses. Publicizing, networking, and showcasing your business can be an open knowledge in government dealings. Simply put, winning a government contract opens a wide door for excellent branding and market visibility without extra marketing expenses.
5. Boost Opportunities for Growth and Expansion
Winning a government contract can work to develop your business by providing a platform for innovation and expansion. It offers an excellent opportunity to develop new approaches in service, better systems, and other innovations. It could also help you establish a new business relationship with other companies from which you can learn, borrow and adopt better practices to help your business grow.
Bidding for government contracts is a potentially lucrative opportunity for SMEs. The potential advantages come in multiples, from access to a vast market, and more consistent revenue streams, to better payment policies. Winning a government contract can diversify your business, increase brand visibility, and facilitate growth and development for your business. It may not be as easy and straightforward as it seems, but by following due processes, and partnering with industry experts, you can reap significant benefits from bidding on government contracts. Why not consider bidding on those lucrative government contracts today and take your business to the next level.
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.
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.
Networking
Sometimes the most challenging step is getting your foot in the door. Networking is vital when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events throughout the year. These events are usually at no cost to business owners and can offer a treasure trove of information about obtaining contracts from various agencies.
How Do You Get Started Working With The Government?
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 becoming a government contractor.