AMGEN
BMS-center-logo
 

Getting Started in the Government Contracting Market

Share this Article:
Share Article on Facebook Share Article on Linked In Share Article on Twitter

By Debbie Gregory.

If you’re ready to steer your company towards government contracting, there are a few important steps to make sure you follow to increase your chances of success.

Make sure you have registered on System for Award Management (SAM), the database used by the government to find qualified contractors, and where larger contract-holders, and small business teaming partners seek qualified subcontractors. To do so, you will need the following:

– Your DUNS Number, Legal Business Name, and Physical Address from your Dun & Bradstreet (D&B) record. (If you don’t already have one, you can request a DUNS Number for FREE from D&B.)

– Your Taxpayer Identification Number (TIN) and Taxpayer Name associated with your TIN. Review your tax documents from the IRS (such as a 1099 or W-2 form) to find your Taxpayer Name.

– Your bank’s routing number, your bank account number, and your bank account type, i.e. checking or savings, to set up Electronic Funds Transfer (EFT).

Identify who will be buying your services and research your customer. You can research potential agency customers online to learn about what goods and services they are looking for so you’re able to narrow down which ones to target. Many agencies post their procurement forecasts, identifying what contract requirements they are seeking.

Check out www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards and who the federal government is buying from.

While it can feel overwhelming at times, securing a government contract can be very lucrative. Be ready to put in the time and energy, and stay persistent in your efforts. For companies aspiring to become government contractors, there’s a lot to learn. But the benefits of government contracting are worth the challenge, creating new customers and accelerating your business to the next level.

Understanding Set-Asides

Share this Article:
Share Article on Facebook Share Article on Linked In Share Article on Twitter

By Debbie Gregory.

Every year, the federal government spends approximately $500 billion on goods and services. In order to keep a level playing field, the Small Business Administration (SBA) has worked with federal agencies to ensure that at least 23 percent of all prime government contracts are awarded to small businesses. These are called “set-asides.”

In addition to the 23 percent for small businesses, statutory goals established by Congress for federal executive agencies are:

  • 5 percent for women-owned small businesses
  • 5 percent for Small Disadvantaged Businesses
  • 3 percent for HUBZone small businesses
  • 3 percent for service-disabled veteran-owned small businesses

There are two kinds of set-aside contracts: competitive set-asides and sole-source set-asides.

According to the SBA, in competitive set-asides, when at least two small businesses could perform the work or provide the products being purchased, the government sets aside the contract exclusively for small businesses. With few exceptions, this happens automatically for all government contracts under $150,000.

Sole-source contracts are a kind of contract that can be issued without a competitive bidding process. This usually happens in situations where only a single business can fulfill the requirements of a contract.

Veterans are uniquely qualified to secure government contracts due to the skills and experience inherit from their career in the military. The federal government tries to award at least three percent of annual federal contracting dollars to service-disabled veteran-owned small businesses.

Working with veteran owned businesses have additional advantages: many of their owners already have the necessary security clearances often required for government contracts. They also have knowledge of the inner workings of government.

The certification process varies depending on the SBA contracting program. For some, you can self-certify just by updating your business profile in the System for Award Management (SAM) at http:www.sam.gov.

For other programs, you have to apply for certification. As part of the application, you’ll answer questions about your business and its ownership, and upload supporting documents.

ibmpos_blurgb