How to Win Government Contracts (for Small Businesses)
The number of government contracts awarded to small businesses is steadily on the rise. And with Congress being clearly on the side of small businesses and the federal government even setting up micro-contracting procedures (to facilitate smaller contracts), the prospects are rather good.
If you want your small business to get your piece of this pie, be guided by the following tips
Be sure that you qualify as a small business.1.
First off, incorporate your small business. The SBA’s definition of “small business” is mainly based on number workers and the business’ average annual sales. On the other hand, qualifications are determined by industry as per guidelines of the North American Industry Classification System (NAICS).
Build a good standing.
Government contract eligibility for a small business is only possible if it is in good standing in their state or states of operation. That means they should pay franchise taxes, submit accurate annual reports, update their license, and meet other compliance requirements. A non-compliant small business can lose its authority to do business in the state, which turn diminishes its chances of securing a government contract.
Register your business.
Those who want their small business to get federal contracts should first sign it up on the System for Award Management (SAM) website, which serves as the main registration system for all potential government vendors. In this website, you can’t only enter all the information required by government agents, but also promote your business and make it shine. Also, doing business with the U.S. government requires you to have a DUNS Number, which is essentially a unique nine-digit number that serves to identify each of your business locations.
As soon as your small business has met all the requirements, you are now ready to become a government vendor. The SBA has a matchmaking web page that connects small businesses with appropriate opportunities. Also, you can take a look at the Federal Business Opportunities (FBO), which lists business opportunities above $25,000, including information that you need to bid.
Maximize use of specific programs.
Some programs are specifically created for certain small business types, such as businesses owned by women or by veterans. All key information, from regulations to opportunities, can be found in the FBO website.
Government contracts can prove to be a lucrative and mostly untapped revenue source for a lot of small businesses. It’s not going to be a simple, effortless process, but there is an abundance of resources that can provide help to those who would like to engage the government in business. Of course, it is important to first ensure that these resources are highly credible, if only to prevent confusion due to inaccurate information.