The Federal Government is the largest buyer of goods and services in the world and puts forth millions of dollars every year towards procurement.http://www.sba.gov/contractingopportunities/index.html For some industries, the government has become a lucrative customer, and contracts from government agencies have become a mainstay. This enables some businesses to survive and thrive. With 23% of all procurement contracts slated for small businesses, there is an abundance of opportunities out there.http://www.federalnewsradio.com/?nid=35&sid=1904490 Contractors are used by all agencies of the federal government to acquire supplies and services.
The Federal Acquisition Regulations (FAR) oversees the federal procurement process and is governed by its own set of rules and regulations.https://www.acquisition.gov/far/current/pdf/FAR.pdf If you want to try and land a government contract then you'll have to consider the fact that despite efforts to make the process more accessible and transparent to small businesses, recent reports show that only limited progress has been made. To many small businesses, the ability to acquire contracts is still expensive and remote.http://www.entrepreneur.com/growyourbusiness/exploringnewmarkets/article83506.html However, if you are successful, figuring out how to land a government contract will pay off handsomely.
Winning Government Contracts
In order to win government contracts, you must understand your client and their mission. You must also have the cash flow to sustain your business during the lengthy process. There are many details about the process to assimilate. This poses a tremendous learning curve for new businesses. If you are able to overcome these challenges, then government procurement can be a very profitable sector.
Step 1: Get a Leg Up
Once you have your DUNS, CCR and ORCA, you're ready to do business with the government. The first thing you'll want to figure out is if they are buying what you're selling. You can obtain this information through due diligence. The government tends to exhibit a level of loyalty to contractors they have used before successfully. In order to establish what types of contracts have been awarded in the past and to whom, you can check out the Federal Procurement Data System. Another resource for this information is USA Spending, a government agency which publishes grant and FPDS history online.http://community2.business.gov/t5/The-Industry-Word/Finding-Government-Business-Once-You-ve-Done-the-Basics-Here-s/ba-p/16380
Decide now how you want your business to be classified. Contracting minority businesses is a federally mandated goal which makes getting a government contract significantly easier so make sure you get certified with a professional entity. Then, classify your business as economically disadvantaged. Being an energy efficiency oriented or green business also helps. Knowing your classification will enable you to obtain your NAIC number. This number will connect you to a system of businesses worldwide and present additional business possibilities.http://www.dol.gov/compliance/audience/fedcontractor.htm
Partnering with a larger company in your field can help your cause. Subcontracting for government jobs provides a platform of previous experience which the government will find pertinent when you set out for your own contract. The government offers subsidies to companies with small business mentoring programs as well.http://www.captureplanning.com/articles/26973.cfm? Concentrating on your area of expertise or geography can also help substantially.
Step 2: Present Yourself in the Best Light
The Central Contractor Registration (CCR) is how the government finds registered providers when looking to purchase goods and services. How you build your CCR and the SBA Supplemental Pages known as the Dynamic Small Business Search (DSBS) profile can make a world of difference.http://www.microsoft.com/smallbusiness/resources/marketing/customer-service-acquisition/how-to-bid-on-government-contracts.aspx#Howtobidongovernmentcontracts Make sure to keep current as your information can be viewed by large prime contractors and the general public at any time.https://www.bpn.gov/ccr/smallbusinesses.aspx
Collecting and using current and past performance information is also part of the selection process for contractors.http://www.whitehouse.gov/omb/rewrite/procurement/contract_perf/best_practice_re_past_perf.html Work done as a subcontractor on government contracts establishes a performance history with the government and abates some competition when bidding on contracts. Learning about and demonstrating that you have the contract management and accounting capabilities for the contract will also set you ahead.
Alas, it is business, so always remember that above all you are marketing and selling yourself. Always be prepared to provide customer reviews as well as your quality assurance. Exhibit amicability and make it clear that you will work according to set protocols and procedures.http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P09_5260
Step 3: Finding Opportunities
There are many contract vehicles out there. Knowing your options and making the right choice will lead you in the right direction. The General Services Administration’s GSA Schedules Program is one of the largest generators of contracts, furnishing facilities, services and supplies for the entire government. Their main objective is to leverage the buying power of the federal government.http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_OVERVIEW&contentId=13339
Federal Business Opportunities is another vehicle, helping search for and find engineering opportunities.https://www.fbo.gov/?s=opportunity&mode=list&tab=list Subcontracting and teaming up for government contracts with large companies providing complimentary services is another unequivocal vehicle. Various organizations such as the GSA Subcontracting Directory and SBA Subcontracting Network (SUB-Net) provide guidance on teaming up.
Most, if not all, of these agencies have a small business liaison. Contact this individual and make inroads. Networking events such as the Small Business Administration's Business Matchmaking provide small business owners, government agencies and corporate procurement officers with a venue for networking.http://www.business.gov/expand/government-contracting/opportunities/
If you still have not found what you are looking for, you can enlist help in your pursuit. Firms like FedSources can help by providing you with localized government contract information.
