We hear from many clients, especially those just getting started with government contracting that their first year did not yield any results. While this can be discouraging, and you may be thinking about not completing your SAM.gov renewal, we want to share a few reasons why it can be smart to renew.
1. It’s Not Uncommon To Have A Slow Start
In general, it takes most businesses about 18 months (or longer) to earn their first government contract. It takes time to learn the ropes of contracting and to find your niche. If you didn’t earn a contract during your first year, you are not alone.
Not only can it take time to find a government contract that matches your goods and services, but it can also take time for a procurement agent to select a vendor. Unlike the private sector where decisions are often made quickly, the government tends to take its time in many situations. Be patient, and eventually, you will earn that first contract. Once you have earned the first contract, the next contracts typically are easier to attain.
2. There Are Billions Of Dollars Available
The federal government spends billions of dollars every year on government contracts. They need a vast array of goods and services, so why shouldn’t you try and get your piece of the contracting pie? Perhaps this first year wasn’t a great success, but that doesn’t mean there aren’t contracts to earn.
Even when economic times are tough, the government will still need contractors to supply goods and services. Working as a government contractor can provide an excellent recession-proof stream of income. Private companies can go bankrupt, but you can usually rest assured that the government will pay their bills.
It is important to note that it can take time to receive a payment for services rendered, but you will get that paycheck even if it takes 60 days or more. Even if there is a government shutdown, many agencies already have budgets in place and still may be able to pay you. Most shutdowns only last a matter of days, so this really shouldn’t be a deterrent from government contracting.
3. Government Contracting Jobs Help You Diversify
If you are looking for ways to expand your business, the government is an excellent option. While it takes time to win that first contract, once you have secured a contract, it’s easier to obtain future contracts. Procurement agents will see that you already have a track record with government contracting and that gives you an edge.
The government will always need goods and services and diversifying into government contractor jobs can provide you with a steady income stream, particularly if you win a long-term contract. While you shouldn’t neglect private sector clients, we also recommend that you don’t lose faith in the idea of government contracting. It will always be there, even if trying times, so keep up with your SAM.gov renewals and keep trying to win those contracts.
4. There Are Tools To Help You Succeed
Have you signed up with the Small Business Administration? If you qualify as a small business, it can be easier to win some government contracting jobs. The government sets aside a portion of its yearly budget just for small businesses, and these set aside contracts can be easier to win than larger contracts.
Typically, if a contract is worth $100,000 or less, it is awarded to a smaller business. Few small businesses would not welcome a $100,000 contract or even $25,000 or less. In some cases, for smaller contracts, a government procurement agent can make decisions very quickly.
Additionally, sign up with your local Procurement Technical Assistance Center, or PTAC. These centers offer contracting guides as well as workshops and special training events for new government contractors. It’s free to sign up and while in-person events aren’t happening presently due to Covid-19, they are sure to continue again once it is safe.
5. You Can Contract With Your State
With an active SAM registration, you aren’t just eligible for federal government contracting jobs, you also can bid on government contract jobs at the state level. You can sign up with your state procurement agency as well as any other state if you wish. For instance, if your company easily can provide services in Pennsylvania, New Jersey and New York, you can sign up with all three state government agencies.
In some cases, it can be easier to win a state contract than a federal contract, as there often is a bit less competition. Just like the federal government, states also set aside some contracts for small businesses, so if you are small, state government contracting can be a great way to build your business.
State governments also host a variety of workshops and events for government contractors. These are usually low-cost events, and not only will you gather some knowledge, but you will also be able to network with representatives from many state government agencies. Again, these in-person events are not being held because of Covid-19, but once people can meet in person, we highly recommend that you take advantage of what your state government has to offer.
6. GSA Schedules Can Be A Lucrative Option
The General Services Administration is the agency that provides support for all other agencies. The GSA is the agency that is tasked with maintaining federal buildings, provide vehicles to federal agencies and handling many procurement tasks.
GSA Schedules are basically contracts for specific goods or services. For instance, all government agencies need copier paper. A GSA schedule could be created for this supply, and specific paper companies will be chosen to provide paper to any government agency that needs it. Once you are approved for a GSA contract, an agency can contact you and purchase paper.
Of course, you won’t be the only company that will have been approved for this GSA schedule, but it does reduce the playing field a bit and the sales process is faster and easier than bidding on a government contract. You can sell to any government agency and, in some cases, even sell to state or local government agencies.
For more information about GSA schedules, you can go to https://www.gsa.gov/about-us/events-and-training/gsa-training-programs/training-for-vendors/how-to-get-on-schedule. This page, in general, will lead you to many resources for government contractors, so we highly recommend that you take a look.
7. We Can Help!
We know how difficult it can be to complete SAM registration. Renewal can be nearly as frustrating, so it’s little wonder that people dread the process. While you could handle your renewal on your own, it’s easier to simply hire a third-party registration service to hand your SAM.gov renewal. We can complete the process quickly and you will continue to be eligible to bid on government contracts. If you haven’t signed up with SAM, we can help with your initial SAM registration, as well.
If you are dreading the SAM.gov renewal process, give us a call at (800) 985-7658 or click on the blue Renew Registration tab on our homepage. If you do wish to renew, we highly recommend that you contact us several weeks in advance or even months before your renewal date. If you are bidding on contracts but have an expiration date coming up in just a few weeks, procurement agents will be less likely to select your company. So, contact us and get the renewal process started today!