Author: fcr

The Small Business Administration was created to help small business owners succeed. They provide a plethora of resources for small business owners, including loans and grants. If you are a small business and want to do business with the government, it’s definitely smart to check SBA government contracting resources.

Do You Qualify For SBA Assistance?
If you have just a handful of employees, it’s probably certain that you qualify as a small business. But many types of businesses with hundreds of employees also qualify as a small business. To see if you qualify, go to https://www.sba.gov/size-standards/, and use SBA’s Size Standards Tool.

You will need to know your North American Industry Classification System codes, known at NAICS codes. If you aren’t sure what codes apply to your business, the SBA has provided a link to a document filled with all of the NAICS codes. Once you put in your codes and enter your number of employees, the tool will let you know whether or not you qualify.

Which SBA Set-Asides Apply To You?
You might wonder why your business size matters in regards to contracting, and why you should even bother with the SBA. Government contracting is meant to help businesses of all sizes, but the government is particularly concerned with helping small businesses grow. Every federal agency is required to set aside a portion of its contracting budget just for qualifying small businesses. Many large companies that win huge government contracts also are required to use small businesses as subcontractors.

The SBA created several categories of small businesses, and these categories are known as “set-asides.” Your business may qualify for one or even several different set-asides, and in addition to simply qualifying as a general small business, other special set-asides include:

HUBZone Set-Asides: If your business is located in what has been designated a Historically-Underutilized Business Zone (HUBZone), it might qualify for this set-aside. As the name suggests, these are areas where small businesses historically have struggled and boosting the economy of these areas is important to the government.

Veteran-Owned Set-Asides: There are two veteran-related set-asides. One is a general set aside that applies to any business owned 51% or more by a veteran. There also is a set aside for Service-Disable Veteran-Owned Small Businesses, for those soldiers that were disabled in the line of duty.

Woman-Owned Set-Asides: If your business is owned 51% or more by a woman and also meets the small business requirement, you qualify for this set-aside. There also is a set aside for Economically-Disadvantaged Woman-Owned Businesses, and your net worth and income will factor into determining whether or not you qualify for this set-aside.

8(a) Business Set-Asides: In addition to helping women and veterans, the government also seeks to help any business owner that is part of a historically socially or economically disadvantaged group. The business must be at least 51% owned by a U.S. citizen (born or naturalized) that belongs to one of these groups, and there are restrictions regarding that person’s net worth and income.

Native American Set-Asides: There are a few set-asides for Native American-owned businesses, but Native Americans also might qualify for the 8(a) set-asides and all Indian reservations and other Native American lands are located in HUBZones, so there are several options for Native American business owners, and this category also includes Native Hawaiians. Basically, these types of set-asides were created to support businesses owned by any group of indigenous people.

It’s important to keep in mind that most of these set-asides are valid only for businesses that are majority-owned (51% or more) by a person that qualifies in one of these groups. The exception would be those businesses located in HUBZones.

Beyond Set-Asides: What Else Can SBA Do For You?
If you head to SBA.gov, you will see a tab at the top of the homepage that says Federal Contracting. If you click on that tab, you will find three sections – Contracting Guide, Contracting Assistance Programs, and Counseling & Help. Each of these sections can provide you with a wealth of information.

We definitely recommend that look at their contracting guide, as it has information about types of contracts, how to win bids, size standards and much more. Under the counseling section, you can find SBA representatives in your area that can answer questions, both about contracting and other small business concerns.

Getting Started With SBA & Government Contracting
While SBA is a valuable resource for small business owners, your first real step into government contracting will be to complete your System for Award Management (SAM) registration. Until you finish SAM registration, you will not be able to bid on government contracts.

While you can complete SAM registration on your own for free, it can take 10 to 15 hours (or more) to finish the application and the process can be confusing. If you start the process and become frustrated or just want to avoid the hassle, we can help.

We are a third-party registration service, and we handle hundreds of SAM registrations each year. We understand all of the complexities of SAM registration and will complete your application quickly and accurately. During the process, we also can help you decide which set-asides and NAICS codes apply to your business.

Once your SAM registration is approved, you will be eligible to start bidding on government contracts. Before you do start the bidding process, definitely take a look at the many SBA government contracting resources that are available. If you are ready to get started with government contracting, just call us or click on the New Registration tab on our homepage, fill out our quick form and a registration specialist will be in touch as soon as possible.

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If you want to do business with the federal government, completing your System for Award Management (SAM) registration is the first step. But in addition to this application a notarized letter must be sent to the Federal Service Desk (FSD). Here’s a few quick facts about the SAM notarized letter.

1. The SAM Notarized Letter Is A New Requirement
The notarized letter requirement has only been around for about a year or so. The General Services Administration (GSA), which is responsible for the SAM database, noticed possible security issues with the database.

These issues only affected a few contractors, but the GSA decided to increase security and require anyone completing SAM registrations (or renewals) to submit a notarized letter identifying the Entity Administrator for their SAM registration. This Entity Administrator is the person who is authorized to make changes to your SAM account.

2. You No Longer Must Have Letter Approval Before SAM Approval
When this whole letter requirement came about, anyone renewing or registering with SAM had to have their letter received and processed by the FSD before they could gain SAM approval.

This was a logistic nightmare because the FSD was inundated with thousands of these notarized letters and could not process them quickly enough. Many people with existing registrations that were simply renewing ended up with inactive SAM accounts. If your SAM account is inactive, you cannot do business with the government, so you can imagine the hassle for companies that were in the bidding process or in the middle of an actual contracting job.

In the end, the FSD decided that your SAM registration or renewal could become active without prior letter approval. You do still have to send in this letter, but you can gain SAM registration approval before the FSD reviews the letter. It is crucial that you send it in, however, as it must be received by FSD within 60 days of your SAM registration.

3. There Are Letter Templates
You might be wondering how to write this SAM notarized letter, but fortunately there are some handy templates available at FSD.gov. Once you reach the homepage, look up at the top of the page where you’ll find a tab that says, “Top Help Topics.” This is divided into several sections, so go under the SAM section and select New Registration – Notarized Letter Requirement (Domestic).

Under this section, you will see a question about the notarized letter followed by the answer. In this answer, there is a link to Template 1 and Template 2. Then simply copy this letter verbatim, get it notarized and send it off. That’s all you have to do.

4. Renewals Now Can Skip The Letter
When the letter first was required, everyone had to submit a letter, either for initial registration or renewal. However, now that more than a year has passed, most people renewing their SAM registration already have submitted the SAM notarized letter. If you are renewing and already have sent in a letter, you need not send it in again. So, you can save yourself at least one step in the renewal process.

5. We Can Handle Your Registration
While we can’t complete your SAM notarized letter, we can take SAM registration off your hands. As a third-party registration service, we handle hundreds of SAM registration every year for companies of all sizes.

While the government loves to tell you that SAM registration is free, what they don’t tell you is that it can take more than 10 hours to complete the application. Many people become so frustrated with the SAM application that they simply give up and walk away from the idea of government contracting.

That’s a huge shame, because the government spends billions of dollars on government contracts each year, and it’s not just money going to huge corporations. The government sets aside a portion of its contracting budget specifically for small businesses. If you find SAM registration to be frustrating or you’ve just heard some horror stories, skip the hassles and let Federal Contractor Registry help.

Hiring us is similar to hiring an accountant to do your taxes. Filing taxes is free, but tax codes are complicated, so it often makes sense to bypass the frustration and hire a tax expert. We are SAM experts and quickly will complete your SAM registration so that you can concentrate on running your business.

To get started, simply click on the New Registration tab on our homepage. We’ll handle all the heavy lifting and you can concentrate on sending in that SAM notarized letter and searching for contracting opportunities.

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When it comes to government contracting, there’s definitely a learning curve and it can be tough to keep track of all of your contracting-related information, including your SAM MPIN and CAGE code. Here’s a quick look at what that means and a few tips to help you manage it all.

1. What Is A SAM MPIN?
SAM, as you probably know, stands for System for Award Management, and it’s a huge database that contains information about every government contractor. As you complete your SAM registration, you will be asked to create a Marketing Partner Identification Number or MPIN.

The MPIN is a code that you create, and it is a personal code that will be your password into SAM. There are actually two levels of access within SAM. You create a Login.gov username and password, as well as an MPIN.

With either of these passwords, either the Login.gov password or your MPIN, it is crucial that you keep this information in a safe place and that you do not share it with anyone. If an agency representative or someone else asks for your MPIN, do not provide it. They might ask for your DUNS or CAGE code or your NAICS codes, but your MPIN is private.

2. Understanding Your CAGE Code
Once you have completed your SAM registration, the government agency that is responsible for SAM, the General Services Administration will look over your application and either approve you or send you email explaining why they did not approve you.

If you are approved you will receive what is known and a Corporate and Government Entities (CAGE) code. This is will be a series of five numbers and letters and it will be code that agencies and other contractors can use to search for your business in SAM.

Even if you want to do businesses with a state government, you will need to provide your CAGE code so SAM registration truly is your entrance into the world of government contracting at all levels, including federal, state, county and perhaps even local levels.

3. Other Important Codes
The North American Industry Classification System (NAICS) was developed to categorize different types of business. Therefore, if a government agency needs someone to provide graphic design services, they would search for 54143, if they need rice drying services, they would search 115114. If they need greeting card publishers, they would search for 511191.

These examples might seem obscure but they stress the point that their truly are contracting opportunities out there for everyone. Many people mistakenly assume it’s all about construction or disaster clean-up, but the government needs an abundance of goods and services including plumbing services, paper products, landscaping, vehicle maintenance, consulting services and much more.

Product Services Codes or PSC are another type of code that you might need to know about. These are similar to NAICS codes, but unlike NAICS, these codes are not required to be part of your SAM registration. Still, it’s always good to provide the government with as much information about your business as possible.

One of the first codes that you’ll need for your SAM registration is your DUNS number, which stands for Data Universal Numbering System. If you’ve been in business for a while, chances are good that you probably already have this number, but if you don’t, you can head to the Dun & Bradstreet website and sign up for a DUNS number. There is no charge for this service.

As a side note, the government will no longer be using DUNS numbers in the near future. A new company was awarded a government contract in place of Dun & Bradstreet. The new number will be called a SAMMI number (SAM Managed Identifier). However, it’s uncertain as to when this number actually will be the requirement, so presently, DUNS numbers are still required.

4. Get Started Now – We Can Help
If you’ve got your DUNS and your taxpayer identification number, as well as your bank routing number and bank account number, you are ready to start your SAM registration and create that SAM MPIN.

SAM registration is free, but it’s also quite complicated and can take 10 to 15 hours to complete. The application is filled with vast amounts of government-speak which can be difficult to translate and understand. If you find yourself feeling frustrated with the process, give us a call.

As a third-party registration service, we do charge for our services, but we can quickly complete your SAM application and get you up and running as quickly as possible. We can help you find those NAICS codes, as well as your PSCs. We also understand each section of the application entirely, so we can ensure that the application is filled out correctly. The main reason why SAM registrations are not approved is due to errors on the application, but we can ensure that everything is correct on the first go around.

To get started, simply click on the green New Registration tab on our homepage. If you have an active registration already, but simply forgot your SAM MPIN, go to FSD.gov for further assistance. However, if we prepared you initial SAM registration, we may be able to provide you with your SAM MPIN, as we probably created it for you during the registration process.

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Every year, the government spends about $500 billion on contracts with businesses and individuals in the private sector. New contracts pop up all of the time and there are truly opportunities for everyone. If you’ve considered U.S. federal contractor registration, but aren’t sure how to get started, we can help.

System For Award Management Registration
In order to contract with the government, you will need procure what is known as a Commercial and Government Entity Code, or CAGE code. They only way to obtain this code is through U.S. federal contractor registration via the System for Award Management (SAM).

SAM is a huge database filled with every individual and company authorized to do business with the federal government. SAM registration is your first big step into the world of government contracting. Technically, SAM registration is free, but it can be so difficult and confusing that many people walk away from contracting, frustrated with the whole process.

That’s where we come in. As a third-party registration service, we can complete your SAM registration and renewals. We can take the guesswork out of this huge first step, which can take 10 to 15 hours or more to complete. While we do charge for our services, we find that using a third-party service saves enough time and frustration to be well worth the cost. It’s similar to hiring an accountant to handle your taxes to save yourself from the complexities of the U.S. tax codes.

After SAM, The Fun Begins . . .
SAM registration is the first hurdle, and after that you can start bidding on contracts. However, you need to think about a few things first and handle a few important tasks, including:

1. Sign Up With SBA
The Small Business Administration can be a helpful source for government contractors, providing contracting tips and other advice to help you build up your business. Does your business qualify as a small business? You might be surprised to learn about the size standards for small businesses, it’s not just for companies with 10 or fewer employees. In many cases, a company with 100 or more employees can qualify.

Why does this matter? The government sets aside a specific portion of its federal contracting budget just for small businesses. In some cases, it can be easier to earn a contract if you are a small business.

For instance, if the contract is worth $3,500 to $150,000, these contracts are automatically set-aside just for small business owners. The government also sometimes requires prime contractors to use small businesses as subcontractors, and subcontracting can be an easy and profitable way to dive into government contracting.

If you qualify, in general, as a small business because of your size, you may also qualify for other small business distinctions. For instance, if your business is 51% or more woman-owned, veteran-owned or service-disabled veteran-owned, these are special distinctions known as set-asides because a portion of the federal contracting budget is “set-aside” for these jobs and there are several other set-asides in addition to the ones mentioned above.

2. Sign Up With Your PTAC
The Association of Procurement Technical Assistance Centers was developed specifically to help small businesses with procurement. For the uninitiated, procurement is the word to describe the process by which the government purchases goods and services. There are many regional offices, known as PTACs, so just go to the APTAC website and click on the map of the United States to find your office.

3. Create Your Capability Statement
A capability statement is kind of like a resume for the government. It basically expresses your abilities and past performances. Government procurement agents will expect to see your capability statement at some point during the bidding process and you should have it readily available at all times. It’s also recommended that you create a webpage just for government contracting with a link to your capability statement.

How do you create this capability statement? This document includes a great deal of information about your company, including your core competencies and a list of previous clients. You also will want to list your CAGE code, your DUNS number, your NAICS codes and any small businesses certifications.

To learn more, do an internet search to find some examples of what these statements include and how to design them. We also found Pinterest to be a surprising source of design ideas for these statements, so don’t forget about this site.

4. Do Some Research
You already know how to market and sell to the private sector. Selling goods or services to the government is a vastly different process, although the government wants the same thing everyone wants – quality at an affordable price.

In order to bid on government contracts, you need to learn about the different types of contracting opportunities, as the bidding process for each one is unique. Our best advice is to consider attending some workshops or watching webinars regarding government contracting.

Sign up with your state’s procurement system, and not only can you bid on state contracts, you also will gain access to many resources that will help you dive into the world of government contracting. States often host workshops or events where potential government contractors can learn more about contracting and even meet face-to-face with procurement officers. These typically are inexpensive and packed with helpful information.

Take Your First Step
If you need to complete your initial U.S. federal contractor registration, but are a bit unsure about the process, give us a call at any time at (800) 985-7658 or click on the green New Registration tab on our homepage. We complete hundreds of registrations and renewals each year for small business as as well as large corporations, and we can quickly get you registered and ready to bid on those government contracts.

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When you think about contracting and government agencies, the Department of Defense or FEMA might pop first into your head, but the General Services Administration (GSA) is a huge agency that needs plenty of outside help. Those GSA contracts can be very profitable, so take a look at some of our tips to help you get started with the GSA.

1. Complete Your SAM Registration
This is actually the first step for anyone that wants to do business with any government agency. Whether you want to win DOD contracts, NASA contracts, GSA contracts or contracts with another agency, you can’t bid until you complete System for Award Management (SAM) registration.

Once you’ve completed your SAM registration correctly, and been approved, you can start to bid. It might interest you to know that the GSA is the agency that is responsible for the SAM database, but that isn’t all that they do.

For a basic definition, the GSA provides two main services. Under the Public Buildings Service, they maintain and acquire offices and buildings for other federal agencies. For instance, the GSA is in charge of managing the Pentagon, as well as hundreds of other government buildings. This service also maintains the federal government’s vehicle motor pool, which includes more than 200,000 vehicles.

Under the Federal Acquisition Service, the GSA is responsible for procurement of goods and services for other government agencies as well as for the buildings and vehicles they maintain. This is where those GSA contracts come into play and after you’ve completed SAM registration, you can start looking at what’s available.

2. Determine If You Qualify For GSA Contracts
In order to qualify for GSA contracts, you have to meet certain qualifications. For instance, your company must have been in business for at least two years and you must have earned revenue of at least $25,000 per year.

You also need to read job postings carefully to ensure that your company and its representatives possess the experience and skills necessary in order to bid on any given job. The good news is that there are jobs out there for just about any type of business. Obviously, there are construction-related jobs aplenty, but there are contractors needed to provide packing supplies, furniture, janitorial supplies, language services, computer repairs and much, much more.

3. Get SBA-Certified
Does your business qualify as a small business? If so, we highly recommend you take advantage of that fact and register with the Small Business Administration. The government sets aside a portion of its yearly contracting budget just for small businesses, and if your business qualifies this can make it easier to win bids.

In addition to simply being designated as a small business in general, there are other special “set-aside” codes for which you might qualify. For instance, if your business is 51% woman-owned or 51% veteran-owned, these are two special set-asides.

If your business is located in a HUBZone, this also might qualify you for the HUBZone set asides. A HUBZone is an area that is considered to be “historically underutilized,” and therefore the government wants to boost businesses in these areas. These are just three of several set-asides, and you can go to SBA.gov to learn more.

4. Learn About GSA Schedules
In basic terms, with the GSA you can earn a long-term government contract that allows you to sell to government agencies or provide services to government agencies. There are advantages to these contracts both for the contractor as well as government agencies.

If you have acquired one of these contracts, it’s a long-term contract and potentially a long-term source of income. For government agencies, using GSA contractors can be an easy way to acquire goods and services at fair and reasonable pricing.

You’ll hear a lot about GSA schedules, but what does this really mean? GSA Schedules are basically the categories where you can apply to earn these long-term GSA contracts. Currently, there are 24 GSA schedules or categories, but that is actually about to change.

In the past, if a company wanted a GSA contract, they might have to apply within multiple schedules because they might have qualified for multiple schedules. There are 24 schedules in all, and your company might have been able to offer services under the Human Capital schedule as well as Professional Services or Office Management schedules. So, you might want to apply in all three schedules to increase your chances of success and profit.

In the next few months, however, the GSA will be doing away with the 24 Schedules and merging it all into one schedule. This means that you only need to apply for one schedule instead of potentially multiple schedules. While there’s bound to be some issues when this change occurs, ultimately it seems like this will make contracting easier for commercial entities.

5. Stay Patient
When it comes to government contracting, earning those GSA contracts can be the one of the slowest processes you’ll encounter. With the government, everything takes more time than it does with a private company simply because there are many more rules and regulations that have to be followed.

If you think about it, this does kind of make sense. After all, when a government is offering a contract, they are going to pay the contractor using tax dollars collected from U.S. citizens. The government should be cautious and rule-abiding when spending taxpayer dollars, in theory, and this is definitely one reason why it takes time to win any government contract.

However, getting into a GSA schedule can take much longer than the average government contract. In order to get “on-schedule,” you can expect to wait about six months and perhaps even longer. Once you are on schedule, it can still take more than three months to earn an award or job.

While this seems very time consuming, once you get on that schedule, it can be worth the wait. GSA contracts are five years in length, so while it takes time, you’ll be able to earn awards for five years. Additionally, there are extension options that might be available for up to 20 years, so it truly can be worth your time and patience.

Of course, if you want to bid on GSA contracts, you have to get started with your SAM registration, and we can help. We are a third-party SAM registration service, and we can save you a ton of time and the hassle of SAM registration, which can take 10-15 hours to complete and it’s quite confusing.

We’ll get your registered with SAM quickly, and you will soon be on your way to bidding on government contracts and starting the process of bidding on those long-term GSA contracts. To get started, just click the New Registration tab on our homepage.

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It’s been said that the best things in life are free, but that doesn’t really seem to apply to SAM registration and renewal. While the government often stress that SAM registration is free, is it really?

On the one hand, the government doesn’t charge you to go to SAM.gov and sign up to become a government contractor. On the other hand, they also don’t tell you how long it can take to complete SAM registration or how frustrating it can be.

In fact, dealing with SAM registration & renewal can be so frustrating that many people, particularly those with smaller companies get frustrated with the whole process and simply give up. That’s a shame because there are tons of lucrative government contracts to be had and these can serve as a great way to build up your company.

If you don’t have the time or inclination to spend 10+ hours wading through the SAM application, it can make sense to hire an experienced third party to complete registrations and renewals for you.

As a third-party registration service, we handle SAM registrations & renewals for a wide range of companies, some are small and some are huge Fortune 500 firms. While some might wonder why we charge for our services, we actually aren’t much different from accountants.

Anyone can file their tax forms at no charge, but the tax codes are extremely complicated and frankly the way the government explains things isn’t always particularly clear. This is why so many people hire accountants to complete their taxes. Sure, they charge for their services, but they are tax experts that can ensure that your forms are filled out correctly.

It’s exactly the same with us. We are SAM experts, and we will ensure that your registration is completely quickly, but more importantly, that it is completed correctly. People often make small mistakes with their registration and then it’s denied and you have to go back and fix the problem and then wait a few weeks to see if you are approved.

With Federal Contractor Registry, we can complete your SAM registration in a matter of days, which can save you tons of time, allowing you to focus on running your business. When it comes time to renew your SAM registration, we can handle this process as well.

It is crucial that you renew your SAM registration several months before it actually expires. Failing to do so can lessen your chances of winning contacts. For instance, if a government agency representative is considering your company for a job, but sees that your registration is expiring in less than a month, they probably won’t do business with you.

This is because government agencies are only allowed to do business with companies or individuals that have active SAM registrations. If your registration expires in the middle of a job, then you no longer can work for that agency. This is a lose-lose because the agency doesn’t get its goods or services and you don’t get paid.

We highly recommend that you contact us for SAM renewals several months in advance. It can take a few weeks for the government to process your renewal, so it’s always best to get your renewal started as soon as possible.

SAM registration & renewal is not just your ticket to federal contracting, it also is your ticket to state and local government contracting. Just about every agency in your state will need contractors from time to time, so never forget to look for these more local jobs, as they can be very lucrative.

When you complete your SAM registration, you will be given an identifier known as a CAGE (Commercial and Government Entity) Code. While this code will be needed for federal contracting opportunities, all of those state and local agencies will want to know your CAGE Code, as well. So SAM registration truly is your first step into government contracting.

Once you get that CAGE code, we have a few helpful hints to make the contracting process a bit easier, especially for smaller businesses:

1. Sign Up With SBA
The Small Business Administration was created in 1953 to help small companies grow and develop. The SBA can help people just starting up a business, and they can help small businesses with federal contracting. A certain percentage of government contracting is set aside for small businesses, so don’t forget to check out what SBA can do to help your small business.

2. Sign Up With APTAC
The word “procurement” is going to become a big part of your life as a new government contractor. The Association of Procurement Technical Assistance Centers was created to help companies succeed with government contracting.

APTAC has centers across the country known as PTACs (Procurement Technical Assistance Centers). If you sign up with your PTAC, you will have regional representative that you can contact with questions or concerns, and APTAC often offers webinars and training regarding government contracting.

3. Sign Up With Your State Procurement System
If you want to bid on state government contracts, simply head to the internet and do a search for your state with the word “procurement” next to it. This will lead you to your state’s government website for contracting and procurement. There are tons of contracts available at the state level, so be sure to do this as soon as you get that CAGE code.

Again, if you need help with SAM registration or renewal, Federal Contractor Registry is here to help so give us a call or click on the green New Registration or the blue Renew Registration tabs on our website. We look forward to helping you get started with government contracting.

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The government offers billions of dollars in contracts every year to civilian contractors, and while these contracts can be quite lucrative, getting started in the world of contracting can be confusing. To help ease the confusion a bit, we’ve compiled some helpful information about the types of government contracts you might see.

1. The Fixed-Price Contract
The fixed-price contract is a bit like those fancy prix-fixe dinners at upscale eateries. You pay a set rate and you get a specific menu of food. With a fixed-priced contract, a government agency asks for a specific item, and this agency sets the price they will pay for this service. There are several different types of fixed-price contracts, including firm-fixed-price (FFP) and fixed-price economic price adjustment (FPEPA) and several more.

Here’s a quick look at these types of government contracts. Let’s say you will be a paper supplier to a government agency. The agency’s contracting officer will create a contract for a specific amount of paper needed and set a price based upon a reasonable price comparison of that good’s current market value.

For the sake of argument, let’s say the agency needs 200 cartons of multipurpose printing paper. The contracting officer might set a price for this paper at $32 per carton. If a contractor is willing to provide the cartons for set firm-fixed-price, then they might bid on the contract.

Keep in mind, this can be profitable or not. If the contractor usually charges $35 per carton, this is less than what the contractor usually makes for the items. However, if the contractor usually charges $30, then it’s a profitable option. Obviously, this is a relatively simple example, but it illustrates the pros and cons of this type of fixed contract as there is some risk to the contractor if their costs exceed what the government is willing to pay.

In some cases, a government agency will offer a fixed-price contract with an economic price adjustment. This means that the price the agency will pay could go up or down depending on several factors. For instance, if the established prices of goods or services changes, this could affect how much the contractor will be paid.

If labor or material costs change, this also could affect how much a contractor could be paid. For instance, perhaps you have bid on a job and the labor needed for that job suddenly increases. While the government set a fixed-price for the contract, they might be willing to cover the expenses of extra labor and you can negotiate that with the contracting officer.

This is just a basic look at fixed-price contracts, there also are fixed-price incentive firm (FPIF), fixed-price award-fee (FPAF) and fixed-price prospective redetermination (FPRP) contracts under this category.

2. Cost-Reimbursement Contracts
While the fixed-priced contracts tend to balance more risk on contractors, the risk in cost-reimbursement contracts tends to fall on the government agency. These types of government contracts tend to involve research and development contracts rather than contracts for actual goods or services.

Obviously, research and development is a service, but it’s a bit more ambiguous cost-wise than a service such as janitorial services or perhaps painting or repair services. For instance, development a comprehensive IT plan for an agency or completing large-scale medical research might be projects that fall under this category.

There are several subcategories of cost-reimbursement contracts, including cost/cost-sharing, cost-plus fixed fee, cost-plus award-fee and cost-plus incentive-fee contracts. For some of these, there is a minimum and maximum payment range, while others are a bit more flexible.

3. Time & Materials Contracts
This one is pretty cut and dried. For these types of contracts, the government sets a per-hour labor rate and calculates materials costs and sets a price ceiling. If you can provide the services within the price ceiling this can be a good option.

These types of contracts often are very short-term, such as for emergency services. You might be called in to clean up after a flood, hurricane or other natural disaster. In some cases, known as labor-hour contracts, the contractor will only provide labor and not materials.

4. Incentive Contracts
Sometimes we wonder if the government is deliberately obtuse when it creates various documents. For instance, if you look up the government’s definition of Incentive Contracts, it states, “Incentive contracts … are appropriate when a firm-fixed-price contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery or technical performance, by relating the amount of profit or fee payable under the contract to the contractor’s performance.”

Let your head spin around that one for a moment. What this really means is that the government is offering a contract with an incentive or reward based upon agreed upon specifications. An incentive contract will be a contract based upon either a cost-reimbursement contract or fixed-price contract with added incentives.

For instance, in Los Angeles, contractors were hired to provide retrofitting for several bridges that crossed over major interstate highways. These roads had to be shut down for the duration of these bridge repairs, which, in a large metro area can be quite a hassle. In fact, local residents call these repair days, “Carmageddon.”

Because the government fully understands the traffic nightmares that can ensue, they might offer an incentive contract to a company that can complete the project within the course of a weekend. Let’s say, the government asks for work to be started at midnight on Saturday and completed by 3 a.m. on Sunday. If the company completes this project early, there may be an incentive or bonus paid if the contract is completed on time or early.

5. Indefinite Delivery & Quantity Contracts
Sometimes a government agency doesn’t know precisely what they need. For instance, they might not know the exact quantities of a supply they might need or for how long they need a contractor to provide a service.

As an example, let’s think about snow. While snow can be lovely, it also can cause many logistical problems. A government agency might need to hire a snow removal company to ensure that roads or parking lots are kept clear so that drivers can utilize them. Of course, the government agency won’t be able to predict how often or for how long they will need to use this service.

After all, we have no control over the weather. There might be an early spring and no need for snow plowing or it might be a tumultuous season filled with blizzard after blizzard and the snow plow company will be in great demand. This is one simple example of an indefinite delivery contract.

To learn more about all of the different types of government contracts in more detail that you probably ever cared to read, head to https://www.acquisition.gov/content/part-16-types-contracts#i1104846.

If you need help with SAM registration, which is your first step in government contracting, give the team at Federal Contractor Registry a call. We can handle this complicated process for you and provide you with more time to read about the many types of government contracts.

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