Why Small Businesses Should Pursue Defense Contracts

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. TryToto to reward at least 20% of their contract to Small businesses. Companies can go to https://business.defense.gov/Small-Business/DoD-Small-Business-Offices/ to find out more information about contracting and subcontracting opportunities. 

What Is Government Contracting?

Government contracting is when specific government agencies contract with private companies for specific goods or services. The agencies usually put out a contract or often a request for proposal (RFP) and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor.

Why Work For The Government?

There are many compelling reasons to work for the Federal Government.  We will go into in-depth detail about how a small business can benefit greatly from being a government contractor.

Innovation and Technology

We must remember that some great innovations in technology cameTobecomingame 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 means 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.

Amazing Benefits

The Department of Defense is known for providing excellent benefits.  Here is a list of some of the great perks of working with this organization:

  • Paid Time Off that can increase every year
  • Tuition Reimbursement
  • Short and Long Term Disability
  • Life insurance with family options
  • Great Medical and Dental benefits

Never Underestimate The Power Of Relationships

As part of understanding your customer, it is very important to build strong relationships within the government agencies. The government is not a giant cold faceless entity. It is made up of people and they will appreciate the opportunity to speak to you face to face. An impressive interview might win you a supporter that will lobby in your favor.

A Fantastic Presentation Is The Key To Success

Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process.

Be Prepared To Give An Oral Presentation

Oral presentations are very common for companies who want to work for the United States government. This is not going to be your typical audience. You might not get the greeting and niceties that usually come with this type of business meeting. The government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period.

You Still Need To Make Yourself Stand Out

The federal government will be watching many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. Your presentation must be unique and memorable in a positive way. Your company needs to catch their attention.

Work Environment

Government contractors can work in a wide variety of environments, depending on what service they are providing. A tech company might be consultants on large-scale computer-oriented projects. Where an energy company might be on oil rigs supervising the drilling mechanism needed to complete the work.

Contractors who do well and maintain good reputations often are guaranteed to participate in future projects.

Certification and Education

Usually, the agency sets specific educational and certification guidelines when they post a request for proposals or RFP. These requirements can vary depending on the type of work that is needed. However, there are some steps that any business can do to become more attractive for government contracting work.

Opportunities For Diversity

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.

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 become a government contractor.

Registering With The SAM Directory Also Has Other Important Advantages

You must register with the SAM directory to apply for government grants.

A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).

A grant is different from a loan in that it is money that your business does not have to pay back. So, registering for the SAM directory gives you access to free money!