Tag Archive for: Government Contracting

Government Contracting Steps To Take

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Join us for a FREE online Q&A about Government Contracting for Small Business

When? May 17, 2022 @ 10am

Today’s blog, part 2 of Government Contracting for Small Business, will help you understand the steps you need to take to get a government contract.

It’s not too late to get more information!  Click HERE to find out more!

 

How can I get a government contract?

With the time it takes to secure an award, it may be several years before profits offset the investment spent in obtaining contracts. Utilizing the knowledge of a professional at Paris SBDC or the SBA is a good way to navigate obtaining government contracts and save time.

  • Start small: Once you have identified the products and services an agency is looking for, it is best to start small.
  • Develop a track record with smaller agencies and local awards. Going for big dollar awards at the federal level may put your company in over its head while trying to meet the deadlines and production levels required.
    • Remember, the government tends to go with what they know or are familiar with. Early development can help get your foot in the door to bigger opportunities through creating reliability and recognition.
  • Focus your approach: There may be eight or ten areas where you feel your company can apply for an award. Work on two or three possible contracts where your business excels in quality, not just competitive pricing.

 

How to prepare your proposal for a government contract:

On the SAM.gov site there are three types of proposals:

  • Request for Quotation (RFQ): While typically used for a more simplified government contract of $150,000 or less, the information requirement may be greater. The SAM.Gov site offers advice for RFQ’s.
  • Request for Proposal (RFP): This applies to larger, negotiated acquisitions. There can be some give and take as the process unfolds until the government agency and prospective vendor come to mutually agreed pricing and terms.
  • Invitation for Bid (IFB): This is a sealed solicitation for government procured contracts.

Keep in mind, there is no negotiation, and the submitted proposal is considered final. The price point is often the difference seen between the qualified bidders. A few more things to do before you submit your proposal:

  • Get your paperwork in order: With strict guidelines and regulations, having complete, accurate paperwork is paramount to winning an award. Don’t second guess, ask questions if necessary and above all, leave nothing out.
  • Build relationships: An agency liaison or point of contact may help build company awareness.
    • Connect with agency decision makers through procurement conferences, industry events and contract matchmaking events.
    • Connect with a bid matching service. More than three hundred local Procurement Technical Assistance Center (PTAC) offices serve the country. Find one near you at APTAC. You can also obtain a private service for a more detailed approach to procurement matching.

 

What are the easiest government contracts to get?

A one-person business owner with little track record is not likely to be awarded a government contract. If you are starting small, consider contracting with a larger company that already has work with the government.  While most contracts tend to go to those with a foot in the door, subcontracting with a winning bidder is a way to gain necessary experience, building that all-important track record and move up the rankings.

With that in mind, there are some government projects that are too small and often overlooked. Check the SAM.Gov site for janitorial, plumbing trades, and even painting procurements. Word has it, if you work hard, even at a loss with the goal of bigger contracts, you can get a foothold to greater awards even at this level.

 

What is a GSA vendor and how do I get one?

A GSA or General Services Administration approved vendor are qualified companies that go through the GSA schedule acquisition process.  Follow the earlier step listed here to gain a SAM.gov registration number. Next:

  • Check your eligibility
  • Be prepared to provide three contractor performance assessment reports or 3-5 customer references.
  • Provide complete statements of work and projects for similar projects.
  • Products must be Trade Agreements Act (TAA) compliant, from an approved TAA country.
  • Business must have fair and reasonable pricing.
  • Verify that you are not disbarred on the SAM.gov site.

Once you meet these qualifications, contact a GSA consultant, and start the Multiple Award Schedule Offer Process.

 

Don’t forget to get more information!

Gregory James, of UTA Cross Timbers Procurement Center gave an online Q&A addressing general questions on:

• Government set asides
• Minority owned business
• 8a certification
• Government bid process
• Criteria with Cross Timbers
For more information from the experts in government contracting, please contact Gregory James, of UTA Cross Timbers Procurement Center!
Want even more information?  Check out our resource center for more on Government Contracting!

For additional information on government contracting, how they work, the steps to take, or how to get a government contract, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

Government Contracting for Small Business

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ATTENTION!!!  Don’t miss the online Q&A about Government Contracting for Small Business!

This 2-part blog will get you ready to join this great online workshop which will help you to determine your next steps and will address general questions about Government Contracting!

It’s FREE! Click HERE to find out more!

What is government contracting?

The federal government is the largest customer in the world. Like contracts for goods and services found in the public sector, government contracts are made available by law to small businesses. Since the country runs on the backbone of small businesses, some ninety-nine percent in two-thousand twenty-one, the government wants to do business with small companies for many reasons including:

  • Ensuring big businesses don’t force smaller companies out of business.
  • Gain access to innovations and new ideas that smaller companies tend to provide.
  • Support the economic development and the job creation that drives our economy.
  • To provide an opportunity for disadvantaged socio-economic groups.

 

Just finding the biggest customer in the world is enough to send the likes of Joe Toolmaker to his workshop to build as many left-handed monkey wrenches as possible. For certainly there must be a need for those? Susie Muffin-Maker also believes she has an opportunity for a contract to feed troops or hungry federal workers. On the internet, she has sourced out thousands of muffin pans, ovens, and mixing equipment. However, overextending a credit-card may be tempting for Susie, and pressing the “buy now” button could put her business at risk.

The thought of landing a big, lucrative government contract for a small business may sound like a panacea for a company trying to grow.  However, there are greater hurdles than just red tape to clear before actualizing any size contract available.

 

What do I need to know about government contracting in my small business?

If you are contemplating the pursuit of government contracts for your small business, first and foremost you must be a business registered in the United States, with few exceptions. A few other important things a small business needs to consider are:

  • Track record: The government is more likely to award contracts to reliable companies with strong track records for producing what they need, on time and at a competitive rate.
  • Register: A small business must register for a Unique Entity Identifier number (UEI). This twelve-character alpha-numeric identity is given when you register through SAM at SAM.GOV (link)
  • Identification: Government contracts are based on products or services they need. Research and identify what you produce and what agencies may be looking to procure. You will need to match this product with a North American Industry Classification System (NAICS) code. This can be found at the S. Census Bureau.
  • Company Size: Eligible companies must meet size standards as set out by the SBA. This is important as applying for a contract. It may also require a company with enough employees to produce what they need.
  • Compliance: The government requires strict compliance to laws and regulations. As well as adherence to the federal government’s purchasing process governed by the Federal Acquisition Regulation.  Regulations for small business contracting can be found at 13 CFR 125.
  • Time and patience: It can take several years to be awarded a government contract. Even then, there is no guarantee that they will utilize your company.

Unfortunately, Susie Muffin-Maker did not take these things into account. She registered her business in Indonesia. Despite the low tax rates and access to the world’s largest coconut producer for her famous muffins, she is disqualified. While contracts for bakers exist, no agencies are looking for coconut muffins right now.

In NEXT WEEK’S BLOG we’ll get into the specifics of how to prepare a proposal for a government contract and which contracts are the best for your small business success.

Don’t forget our online class!!!  Government Contract Q&A

 

For additional information on government contracting, how they work, or how to get a government contract, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.