Every year, billions of dollars in government contracts are awarded to companies, large and small. Learning how to become a government contractor can seem a bit overwhelming, but we can help. Here’s a quick look at government contracting in general and how we can get you started with the process.
All Government Agencies Offer Contracts
In general, 99% of government agencies need outside help and services from time to time. We tend to think of agencies such as FEMA and the Department of Defense as the main source of contracts, and while these agencies do offer many contracts, they are by no means the only option.
For instance, everyone from the National Park Service to NASA to the EPA and beyond will solicit contractors for a wide range of jobs. These jobs aren’t just related to construction, either. Virtually any type of business might be needed by a government agency.
Think Beyond The Federal Government
While federal government agencies certainly offer tons of lucrative government contracts, state and local government agencies also offer contracts. If you simply limit yourself to federal opportunities, you could be missing out on contracts at the state, county and city level. These contracts sometimes can be easier to win than the federal contracts, so be sure to register with your state and county after you’ve registered with the federal government.
Get Started With SAM
The System for Award Management (SAM) is everyone’s first step in the government contracting process. This is a huge central database that contains information for all government contractors. Before you can bid on any contracts – federal, state or local, you must register with SAM.
Third-Party Registration Services
SAM registration is free if you decided to register your business yourself. So why would you hire a third-party registration service such as ourselves? SAM registration is a very complicated and often frustrating process.
It can take 10 or more hours to complete your SAM registration, and the application is filled with complicated government-speak. Many of our customers call us after they’ve started the process but have become frustrated with the complexities of SAM registration.
We can take all of your information and quickly complete your SAM registration. Every year, we help hundreds of companies, from Fortune 500 firms to small business, complete SAM registrations and renewals quickly and easily.
While we do charge for our services, we find that using Federal Contractor Registry is a bit like using an accountant to do your taxes. The government doesn’t charge you to file your taxes, but the tax code is complicated and it just makes sense to hire a tax expert to handle the process. It’s the same with us. SAM registration is complicated, but we are SAM experts, and can handle the task quickly.
After SAM, What Should You Do?
Once your SAM registration has been approved, you will be eligible to bid on federal government contracts, and you will be assigned a CAGE code, which is a unique identifier for your business. At this point, you can start bidding, but there are some other tasks we recommend you complete before you bid.
1. Sign Up With Your PTAC
A PTAC is a Procurement Technical Assistance Center. These are centers that were created to help small businesses that want to bid on government contracts at the federal, state or local level. To find your PTAC, go to www.aptac-us.org. This is a huge resource, so as soon as you get that CAGE code, sign up with your PTAC.
2. Sign Up With The SBA
The Small Business Administration is another excellent resource for small businesses. Obviously, larger businesses cannot sign up with SBA, but you might be surprised to find that your business qualifies as a small business.
To find out if you qualify, go to https://www.sba.gov/size-standards/. You will need to know your North American Industry Classification System codes. This is something we can figure out for you as we complete your SAM registration. These codes simply identify the type of business you own. Many businesses qualify for multiple codes because they provide multiple services, and we can find all of your NAICS codes.
Additionally, you may qualify for special “set-aside” codes. A portion of all government contracts are set aside from small businesses. Additionally, many prime contractors are required to use subcontractors that qualify as small businesses. Subcontracting can be a great way for a small business to get started with government contracting.
We can determine your set-aside codes as we work on your SAM registration. For instance, your small business might be located in a HUBZone, which is a historically underutilized business zone. You might qualify as a veteran-owned small business, a woman-owned small business or another set-aside code.
3. Create Your Capability Statement
A capability statement is basically a resume for government contractors, but it looks a bit different than the resume you would create for yourself. This document will include important information such as your CAGE code, your DUNS number, your NAICS codes and set-asides.
In addition to your basic company data and contact information, this document will include a section listing your Core Competencies, Differentiators, and Past Performance. Core Competencies are the services and goods your company can provide. Differentiators are the characteristics that set your company apart from the competition, and Past Performance is basically a listing of companies for whom you have provided goods and services in the past.
4. Create A Webpage For Government Contracting
Your website probably already provides a good deal of information about your goods and services. But, it’s smart to add a page just for government contracting. The government is unique in that its goal is not necessarily profitability but rather providing services for its citizens, therefore the approach you use with a government agency differs from the approach you might use with a private sector client.
Obviously, both types of entities want a good value for their money, but while a company might be seeking your help to improve their business, a government agency seek you out to help support an agency or its programs and initiatives. It’s smart to include a webpage that speaks to government agencies, and be sure to add your capability statement on this page, as well.
5. Sign Up With Your State & County Governments
Every state has its own unique process for government contracting, so you will need to find the agency that is in charge of state government contractors. To do so, simple do an internet search for your state with the word “procurement.” This will lead you to the website for your state.
Once there, you can register. Keep in mind; you will need to provide your CAGE code, DUNS number, NAICS codes, set-asides and other important information about your business and how much it earns, as well as information about officers, etc. Every state is a little bit different, so it’s hard to completely pinpoint everything your state might ask.
6. Educate Yourself
State governments and your PTAC and even the SBA often host workshops and events to help government contractors. At these events, you can learn about the bidding process and make tons of contacts.
We highly recommend that you take advantage of these special events and attend a few. There also are online webinars that can provide you with helpful information about how to write bids and find job opportunities.
Many of these offerings are free or low-cost, so sign up and start learning how to become a government contractor. If you need help with SAM registration, give us a call at (800) 985-7658 or click on the green New Registration tab on our homepage.