How to Become a Government Contractor

Federal, state and local governments offer big and small businesses the opportunity to sell goods and services to the government by becoming a government contractor. Are you interested in expanding to become a government contractor? You don't have to significantly modify your existing business plan to do so. Selling to the government can be a reliable way to get repeat orders that stabilize and grow your business. Selling to the government as well as to other businesses or consumers can help diversify your income streams. However, it can also be a headache if you don't know what to do and don't do the right things. To become a government contractor you will need to follow specific procedures. When working for a large organization like the government, you'll often find that you have to follow the rules and procedures that they dictate. As long as you're comfortable with that, you have a good chance of being successful. Read on to learn how to become a government contractor.

In this though economic situation, more businesses are wondering how to obtain federal, state and local government contracts. As long you follow government guidelines and procedures, becoming a government contractor can be an easy process.

Step 1: Familiarize Yourself With Rules and Regulations

  • Conform to the Federal Acquisition Regulation (FAR). FAR is a 1,000 page document that outlines the rules for Government contracting. If you wish to obtain Department of Defense (DoD) contracts, your will also need to read the Defense Acquisitions Guidebook.

Step 2: Register Your Business

  • To do business as a government contractor, you will need to register with the federal government.
  1. Obtain a D-U-N-S Number. A D-U-N-S Number is a nine-digit identification number for the physical location of your business.
  2. Register with Central Contractor Registration (CCR). The CCR is the federal government's primary database of government contractors.
    • To register, go to the CCR website.
    • You will need a D-U-N-S number to register.

Step 3: Obtain Official Past Performance Evaluations

  • For some contracts, you will need an independent audit of your past contracts.
  1. Contact the company Open Ratings via their website.
  2. Request a Past Performance Evaluation.
  3. Open Ratings will:
    1. Audit your business' customer references.
    2. Give you a rating based on a statistical analysis.

Step 4: Find Government Contracts

  1. Contact the U.S. General Services Administration (GSA). The GSA acts as the federal government's business manager.
    • Long-term contracts are established through the GSA Schedules Program.
    • Think about taking the Center for Acquisition Excellence's online training course, "How to Become a Contractor--GSA Schedules Program".
  2. Check out the FedBizOpps: Federal Business Opportunities website.
    • Agencies are required to list all planned contracts over $25,000 in FedBizOpps.
  3. Become a subcontractor for a company that already has a government contract.
  4. Contact your State to find out how you can get state contracts.
  5. Contact a Procurement Technical Assistance Center (PTAC), a nationwide network of procurement professionals who can help you find a government contract.

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