How to Bid on Government Contracts

Recession Proof Your Business!

It is truly amazing how much money the government spends contracting with businesses.  At a time when companies are cutting back because of lack of business, the government is spending more than ever…nearly $500 Billion will be spent this year alone!

The U.S. government is required by law to award contracts to civilian businesses. Nearly 40% of all contracts MUST be given to SMALL businesses like yours.

If that is not enough:

• ALL federal purchases between $2,500 and $100,000 MUST be Set-Aside for Small Businesses
• The government is required by regulations to pay small business in 30 days.
• Federal agencies have a statutory obligation to reach out to small businesses and to purchase from them whenever possible.

Recession Proof Your Business!

Here are five steps to winning a government contract:

1. Understand the System: The government’s procurement process is not easy to navigate.  You have to become familiar with its rules and regulations.  The Federal Acquisitions Regulations is like a maze.  Before you start bidding on government contracts, you must learn this process first. 
   
   Don’t assume just because you are dealing with government it is not business as usual.  The government will look at your business organization and see if you are qualified to support a government contract.  Therefore, make sure you get your company in order before you start bidding.  Get your processes, staffing, financial status, track record and performance straightened out first.
2. Take Advantage of the Set Aside Programs: In 1994, The Federal Government passed the “FASA” or “Federal Acquisition Streamlining Act”. The goal was to simplify and streamline how the government purchased goods and services valued at less than $100,000. Under this act ALL federal purchases between $2,500 and $100,000 MUST be Set-Aside for Small Businesses

Additionally the set aside programs help:
• Women-owned businesses: A woman-owned business is one that is owned and controlled 51% or more by a woman or women.
• A small disadvantaged business: A small disadvantaged business is one that is 51% or more owned, controlled and operated by a person who is socially and economically disadvantaged. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to meet this standard. Other entrepreneurs can qualify by showing, via a “preponderance of the evidence,” that they are disadvantaged.
• A veteran-owned business: This is a business that is owned 51% by a veteran.
• A service-disabled veteran-owned business: This business is owned 51% by one or more service-disabled veterans. The Veterans Administration confirms the disability.

3. Register as a Federal Contractor: To bid on government contracts, you need to register with the Central Contractor Registry (CCR). This is your company’s profile and the starting point for all government contracts.  This is where you make the best representation of your business and present your “brand”.
4. Find Bidding Opportunities: Learn to navigate the FedBiz Opps, Dibbs and Other Programs.  Become acquainted with each agency’s contact person, they are your greatest point of contact.  Attend the SBA’s “Business Matchmaking” events.  This is where small businesses can quickly meet with government and corporate procurement officers.  Business Matchmaking, is like a traveling road show of procurement opportunities.
5. Bid: The steps above will get you to the contracts, but you still have to bid, build credibility, and sell the government on the idea why your business is best qualified to win the contract.  Pitch your product or service…in other words; you have to sell it just like any commercial transaction.

Recession Proof Your Business!

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