How Do Small Businesses Attain Government Contracts?
Government contracts are a good way to go if you are looking for a source of recurring revenue. The U.S. government is one of the largest purchasers of goods and services in the world, which means there are a lot of benefits to securing lucrative contracts with them. But how can a small company get involved with it?
There is a process that you need to go through though if you are interested in supplying the government with the items that they need. The good news is that the government has set targets that at least a certain percentage of their purchases should come from small businesses.
In order to become qualified to bid on government contracts, small businesses will need to classify their company by the size and type of business they are running according to the North American Industry Classification System (NAICS) and the SBA size standard.
The government agencies behind the contracts will use this information when they award a contract. Also, because many contracts are awarded to certain types of businesses, such as veteran-owned businesses, woman-owned business, service-disabled business, or HUBZone business, so it is important that you note this as well.
The next step, if you want to get a government contract, is to register with the Central Contractor Registration (CCR) database. This is the system most government agencies use to discover the companies that will be most likely to successfully provide them with the services or goods they need. That means the company will have to have an NAICS code, the SBA size standard for the company, the DUNS number, Standard Industrial Classification codes, and a Federal Tax Identification Number.
After you are registered in the CCR database, government agencies may contact you to see whether or not you wish to bid on government contracts. However, if you really want to get government business, you need to pursue opportunities on your own as well.
There are many different resources available to help businesses do this. There is, for example, the FedBizOpps.gov website. This is where any projects worth more than $25,000 are listed. You should frequent this site to see if there are any projects that are right for your business. There are many agencies that will also list their smaller projects on the Bid Boards or on their websites. A company interested in pursuing these contracts should check these sites often.
Another good way to find out about bidding opportunities is to become a GSA Schedule Contractor since some types of products and services are almost always purchased through the GSA. When you can cover all these bases, you’ll be more likely to keep the revenue flowing.
The procedure of submitting an application for a request for proposal (RFP) is tricky when not understood clearly. Once understood it is critical to present well written government contracts. Evelyn has had enough writing practice with construction contracts, government procurement and other similar topics that she understands the process. For additional information, see her other resources.
