Government contracting can be an ideal way to grow your business. Every government agency (and there are hundreds) needs goods and services, and they look to the private sector to fulfill these needs. While it takes some time to learn how to bid on and acquire government contracting jobs, it’s usually worth the effort as this can provide you with a recession-proof stream of revenue. Here are some quick facts about contracting and how to get started.
1. Small Businesses Have An Edge
The government spends billions each year on government contracts, and some of these contracts are set aside specifically for small businesses. A company can qualify in general as a small business or it might fit into additional categories, known as Set Asides.
There are Set Asides for woman-owned small businesses, veteran-owned small businesses and several other categories. In general, if your business is located in an underutilized area or you belong to a group that historically has been the target of discrimination, your small business probably qualifies for some type of Set Aside.
When you think about small businesses, you might think of a company with just a handful of employees, but many larger businesses still qualify as a small business. To see if your business qualifies, either as a general small business or for a specific Set Aside, head to the Small Business Administration website at SBA.gov.
2. The Federal Government Isn’t Your Only Option
Every state government and many county and city governments also offer government contracting jobs. Once you’ve completed your System for Award Management (SAM) registration, you will be eligible to bid on all levels of government contractor jobs.
SAM is a centralized database that includes all government contractors. Once you complete the lengthy SAM registration process and are approved by the Federal Service Desk, which oversees SAM, you with be issued what is known as a Commercial and Government Entity (CAGE) Code. Once you have your CAGE code you can sign up with your state government and work as a contractor for them, as well.
3. There Is Something For Every Type Of Business
No matter what type of business you might own, there are probably at least a few government contracting jobs available. For instance, perhaps you own a farm that produces chickens or eggs. A quick search at beta.SAM.gov (the website where you can find federal contracting opportunities), we recently found several contracting jobs put forth by the Department of Justice to help feed workers and prisons in the federal Bureau of Prisons.
As another example, if you own a company that manufactures printer’s ink, multiple agencies have sought this and related goods, such as the Bureau of Printing and Engraving, the General Services Administration and the Department of Defense. Of course, the government also needs all types of repairs services, as well as medical supplies and supplies to help with disaster relief.
We recommend, before you dive into contracting, to use your North American Industry Classification System (NAICS) codes and head to beta.SAM.gov, enter your codes and see what is available. You can find your codes at https://www.census.gov/eos/www/naics/. These codes describe the specific goods and services that a company can provide.
4. There Are Several Types Of Government Contracts
Federal government contracts often are classified by the negotiated price or the way the payment will be made. For instance, some contracts are Fixed-Price Contracts. With this type of contract, a government agency asks for specific goods or services and sets the price they will pay.
Another type of contract is known as a Time & Materials Contract. For these, the government agency will calculate the cost of materials and calculate a per-hour labor rate that they are willing to pay. These types of contracts tend to be short-term contracts. For instance, FEMA might offer a Time & Materials Contract for supplies or cleanup services needed after a disaster.
The government also offers what are known as Incentive Contracts. These are contracts where the contractor will earn an incentive or award if they can complete a project before the agreed-upon end time. For instance, if you are helping to repair the bridge over an interstate highway, the government understands that these repairs can cause traffic delays and issues for motorists. So, they will provide a financial incentive to the contractor in the hopes that the project can be completed as quickly as possible.
These are just a few types of government contracts, to learn more check out our lengthier blog article about this subject here.
5. Agencies Use Several Methods To Find Government Contractors
When you go to Beta.SAM.gov and look at some of the contracts being offered, you will notice abbreviations such as RFI or RFP, etc. These are terms that are used to categorize the different procurement methods used by government agencies.
For instance, if a contracting opportunity is listed as an RFQ or Request for Quotation, this means that the procurement officer for that agency has specific needs and a set budget. It also indicates that the agency is ready to buy once a contractor is chosen and that only contractors that can meet the budget or price will be selected. Typically, this type of contracting job is $25,000 or less in value and often awarded quickly.
An RFT or Request for Tender is similar, but the procurement officer won’t just look at companies that can meet the budget, they will have a bit more flexibility and can look at qualitative aspects as well as pricing.
On the other hand, if an agency puts out an RFI or Request for Information, this means the procurement agents are not ready to buy but is seeking information about the types of goods and services it can acquire and how much those goods and services might cost. In some cases, an RFI does not materialize into a government contract.
Additionally, you will see terms such as RFP, which means Request for Proposal. With this type of request, the government is sort of somewhere in between an RFI and an RFQ. They can look at many factors before choosing a contractor, and they might not be quite sure the best way to meet their agency’s needs. These types of requests are typically for services, rather than goods.
These are just a few types of bids or requests that you’ll need to research. Learning all you can about the types of contracts and types of requests can make it much easier for you to earn federal contractor jobs. Of course, until you complete your SAM registration, you won’t be able to bid on any contracts so if you want to get started with government contracting, we recommend that you take that first step as soon as possible.
Get Started Now – Fast SAM Registration
At Federal Contractor Registry, we can tackle one of the biggest obstacles between you and government contracting jobs. We are a third-party SAM registration service, and we can complete your SAM registration quickly and accurately so that you can get the CAGE Code and start doing business with the government.
While the government does not charge you to sign up with SAM, we do charge a fee for our services. Why? SAM registration is extremely complicated and can take 10 or more hours to complete. We often get calls from people who started the process, quickly became confused and frustrated and nearly gave up on government contracting.
Rather than deal with the complexities of SAM registration, we can complete this process for you. Because we completed thousands of SAM registrations and SAM renewals, it takes us very little time to get through each application. It’s a bit like hiring an accountant to complete your taxes. You could complete your taxes yourself, but it’s far easier to let an expert handle this task.
If you’d like us to handle your SAM registration, you can give us a call at (800) 985-7658 or click on the New Registration tab on our homepage and fill out our quick contact form. We will be in touch with you as soon as possible so that we can gather up your information, complete your SAM registration and set you on the path toward earning government contracting jobs.