Did you know that it typically takes six months to a year for a contractor to win their first government contracting job, and sometimes longer? While you may be looking for a fast, easy route into the federal marketplace, when it comes to federal contracting, nothing is ever easy. However, some government contracts are easier to win than others. Finding contracts with less competition, simpler compliance requirements, and faster award dates can be an ideal strategy to consider. Let’s take a look at some options.
- Micro-Purchases
While these government contracts are typically worth $15,000 or less, there is a faster evaluation process and minimal paperwork involved. Most of these purchases are made using Government Purchase Cards, or P-Cards, which simplifies the payment process, as well.
While these contracts are not as lucrative as many government contracting jobs, they can serve as a good way for a small business to build up its “past performances.” When you are bidding on government contracts, your past performance is a huge differentiator.
While micro-purchases aren’t big league contracts, they do showcase your ability to provide federal agencies with goods quickly and at a reasonable cost. This can set you apart from bidders who might have no experience working in federal procurement.
Some common types of micro-purchases include:
- Office Supplies
- Training Materials
- Small Equipment Purchases
- Software Subscriptions
- Minor Repair Work (Painting, HVAC Repair, etc.)
- Printing, Marketing & Promotional Materials
Micro-purchases typically are allotted only to small businesses, and one of the perks is that these businesses do not need to have an active account in the System for Award Management (SAM). SAM registration is required for most federal contracting jobs, so if you are just getting started and not quite ready to fully dive into the contracting world, micro-purchases can be a good option to consider.
- Simplified Acquisition Contracts
These contracts also are almost always set aside for small businesses, and the value of these contracts is typically $350,000 or less, which is the Simplified Acquisition Threshold, or SAT. This threshold recently was raised from $250,000 to $350,000, just as the Micro-Purchase threshold was raised from $10,000 to $15,000. Any purchases between about $15,000 and $250,000 fall within the SAT.
Because the value of these contracts is considered fairly low, the solicitation process is easier, and the evaluation requirements often are not as stringent. Generally, these types of contracts also have a lower compliance burden than big fed contracts, and the proposals are easier to manage, as well. Again, these typically are set aside just for small businesses, and tend to include goods and services such as:
- Facility Maintenance
- IT Support & Help Desk Services
- Landscaping & Janitorial Work
- Security Services
- Equipment Installation or Repair
- Training & Consulting Services
While these contracts are more financially valuable than micro-purchases, business owners do need to complete SAM registration in order to be considered for these contracts.
- Small Business Set Aside Contracts
The Small Business Administration (SBA) manages several programs designed to help small business owners succeed in the federal marketplace, and the federal government “sets aside” a portion of its yearly contracts just for small businesses.
These set-asides include the Woman-Owned Small Business (WOSB) program, the Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) programs, the 8(a) Business Development Program, and HUBZone certification. Even if you don’t qualify for these programs, you may qualify for contracts set aside for general small businesses.
Qualifying small business owners can bid on competitive set-aside contracts or sole-source set-aside contracts. Competitive contracts are used when the government determines that two or more small businesses could provide the goods and services, and most contracts of $150,000 or less are tagged automatically as competitive set-aside contracts.
Sole source contracts are issued when it is determined that a single company can provide all of the goods and/or services set forth in the contract. Sole-source contracts often are awarded to small businesses or to companies that have a unique good or service that no one else can provide, perhaps a proprietary software program.
Additionally, these contracts often are awarded as part of an emergency response, when the government needs goods or services quickly to meet the immediate needs of Americans, such as after a hurricane.
In order to qualify for any set-aside contracts, you will need to complete SAM registration and sign up with the SBA. We can help with SAM registration (and SAM renewal), as well as help you determine which set-asides are the best fit for your business, and help you sign up with the SBA.
We also link your SBA account to your SAM account, so that prime contractors and federal procurement agents can see that your business qualifies for specific set-asides or as a general small business.
- Commercial Item Contracts
These typically are fixed-price contracts with a simplified acquisition process. Sometimes they are available from SAM.gov, but often these are listed on GSA Federal Supply Schedules, which also are known as GSA contracts.
GSA is the General Services Administration, and this agency handles buying goods and services for the federal government. Individual agencies also make purchases, but GSA handles a great deal of procurement to streamline the process government-wide. GSA also acts as the landlord for most federal government buildings.
Becoming a vendor on a GSA schedule can be an arduous process, but once you are on a schedule, the government can simply make purchases from you, bypassing the typical contracting and bidding process. You are not guaranteed to make a sale, but, generally, if you are on a schedule, you have goods or services that the federal government often needs.
- Subcontracting Opportunities
For many small businesses, working as a subcontractor is the easiest way to dive into contracting. With subcontracting, a prime contractor handles all of the back and forth with the federal agency, and you simply provide your goods and services as outlined in the contract. Many prime contractors are required to use small businesses as subcontractors for certain contracts.
Subcontracting can be a great way to build those “past performances,” and to learn about contracting without having to do any of the heavy lifting. SAM registration may or may not be required, but some contracts do require prime contractors to use small businesses that match a specific set-aside, so completing SAM registration and signing up for SBA programs can be the best way to ensure that you don’t miss out on any contracting opportunities.
6. State & Local Contracting
While federal contractor jobs can be lucrative, there are also many government contracts available through state, county, and local governments. All states have procurement websites where you can sign up your business and search for contracting opportunities.
You also can market directly to various state or local agencies, and many agencies host networking events for contractors, which can be a great way to learn more about contracting and potentially find new business. Businesses can market directly to federal agencies, as well, and this can be a great way to increase their visibility.
You also can market directly to various state or local agencies, and many agencies host networking events for contractors, which can be a great way to learn more about contracting and potentially find new business. Businesses can market directly to federal agencies, as well, and this can be a great way to increase their visibility.
FCR – We Are SAM Registration Experts
At Federal Contractor Registry, we can help you take the first step into government contracting – SAM registration. While the government does not charge a fee to register in SAM, this can be a complicated process, taking 10 or more hours to complete, and many business owners become so frustrated by the complexities of SAM registration that they give up on contracting entirely, and that’s a shame, because there are many lucrative opportunities available.
To streamline the process, many business owners turn to a third-party registration service for SAM registration. While we do charge a fee, our team handles hundreds of registrations every year and can complete your SAM registration (or renewal) 100% accurately and quickly, ensuring that you are eligible to bid on government contracts as quickly as possible. To get started, just click on the green New Registration tab on our home page.