There are plenty of federal contractor jobs out there, but many people, especially those from smaller companies, don’t really understand how to find and win these lucrative contracts. Here’s a quick rundown of what you need to do to get started with federal contracting.
Step One: Complete Your SAM Registration
Before any company or entity can do business with the federal government (or even many state and local governments), you need to get what is known as a Commercial and Government Entity Code, or CAGE code. In order to get the CAGE code, you must register with the System for Award Management (SAM) database.
This database includes every contractor eligible for federal contractor jobs and includes important information about each contractor. While it is free to register with SAM, it is a very complicated process, which is why many people will hire a third-party registration service, such as our company, Federal Contractor Registry.
At Federal Contractor Registry, we handle hundreds of SAM registrations and renewals each year and we can complete your registration quickly and accurately. It can take up to 15 hours (or more) to complete SAM registration and the process can be frustrating, and if you make a mistake, this can delay your approval significantly, which is why we recommend hiring an expert.
For us to get started, we just need some basic information from you. This includes your DUNS number (if you don’t have one, you can apply for free at Dun & Bradstreet), your bank account and routing numbers (the government requires that this be part of SAM registration) and your tax identification number.
Of course, we also will gather some information about the goods and services you provide so that we can determine the best NAICS codes and PSCs to describe your business. NAICS stands for the North American Industry Classification System and includes codes for just about any type of business imaginable from Astroturf producers to zipper manufacturers. PSCs, which stands for Product Service Codes, is another classification system, although not quite as detailed as the NAICS.
Step Two: Send In A Notarized Letter
The federal government requires that all new government contractors send in a notarized letter identifying the entity administrator for each SAM account. This is the person authorized to make changes in your SAM account.
We recommend that you simply go to this webpage https://fsd.gov/fsd-gov/answer.do?sysparm_number=KB0013183, and download either Template 1 or Template 2 under the section marked Step 1. Follow the directions exactly and then sign the letter in the presence of a notary and mail it to the Federal Service Desk. All the instructions for this process can be found on this webpage.
You can work on this letter as soon as we start filling out your SAM registration. If fact, we recommend that you send it in as quickly as possible. To bid on federal contractor jobs, you need both SAM approval and a notarized letter on file, although the government may approve your SAM registration before they process the letter.
Step Three: Sign Up With SBA
The Small Business Administration provides a wealth of services for small businesses. While the SBA loan program has taken a huge hit during the COVID-19 crisis, don’t let this dissuade you from signing up if you qualify as a small business. To find out if you qualify, go to https://www.sba.gov/size-standards/. You will need your NAICS codes, which we can help you determine as part of SAM registration.
The federal government sets aside a portion of its government contracting budget specifically for small businesses. These are known as set-asides, and there are several different types of set-asides, depending on who owns your business and where it is located.
For instance, there are set-asides for veteran-owned businesses and woman-owned businesses. These types of set-asides require that at least 51% of the business must be veteran-owned or woman-owned. There are set-asides for just about anyone who belongs to a historically marginalized group, and this includes people who have faced discrimination due to ethnicity, disability, sexual orientation or other factors.
Additionally, if your business is located in a HUB-Zone, this also qualifies as a set-aside. A HUB-Zone is a Historically Underutilized Zone, and there are many throughout the United States and its territories. To find out if your business is located in a HUB-Zone, go to https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5.
We highly recommend that any small business sign up at SBA.gov as it can be easier for small businesses to win government contractor jobs. Many prime contractors (large businesses that win huge contracts) are required to use small businesses as sub-contractors, as well, and this can be a great way to get started as a federal contractor.
Step Four: Create A Capability Statement
A capability statement is basically a resume for the government. It is a one-page document that includes important information about your company. This includes your CAGE code, NAICS codes, your DUNS number and your contact information.
You also include a section entitled Core Competencies, which details the most important goods and services you provide. The statement also features a section of Past Performances, which includes previous jobs you’ve completed. You will also want to list some past clients. To find out more, just do a quick internet search for “capability statement” and you will find many examples.
Step Five: Find Out What’s Available
At Beta.SAM.gov, you can search for available federal government contractor jobs. We recommend that you search using your NAICS codes, as these filter for the specific types of jobs or services you can provide.
You also should sign up with your local Procurement Technical Assistance Center, or PTAC. It’s free to sign up, and your PTAC reps can answer many questions about government contracting and they offer workshops and training events to help you get started, and many are online, so you don’t need to worry about social distancing. To find the PTAC in your area, go to aptac-us.org.
We also highly recommend signing up with your state procurement system. As soon as you have your CAGE code, you can sign up and there are many opportunities at the state level. State governments also host workshops and events where you can mix and mingle with various state government agency representatives and find contracting opportunities. While COVID-19 temporarily has halted these events, some state governments still might offer online workshops or other online resources to help government contractors.
While there are thousands of profitable federal contractor jobs available, it can take time to earn your first contract. These days, if you do offer an essential job or service related to COVID-19 relief, you might earn a contract very quickly. For everyone else, you should expect it to take several months to earn your first contract. It can even take a year to earn that first contract.
Step Six: Learn How To Bid
The process of bidding for federal government contractor jobs is very unique, and it’s crucial that you learn all you can about the different types of bids and proposals. Your PTAC and the SBA can be helpful resources, but we also recommend that you check out webpages such as https://www.cdc.gov/contracts/about-cdc-contracts/types.html and https://www.acquisition.gov/content/part-16-types-contracts. We also highlighted different types of contracts in a previous blog at https://federalcontractorregistry.com/a-look-at-5-types-of-government-contracts/.
It might seem like government contracting is too complicated and time-consuming, but once you start earning contracts, this can be an excellent way to build your business. While economic downturns might affect your private sector clients, the government will still be buying goods and services to fulfill the needs of its citizens. This can be a highly stable type of income, so it’s definitely worth the time you put into learning the ropes.
If you want to bid on federal government contractor jobs, there’s no time like the present. To get started, contact us at any time, and we will get your SAM registration completed as quickly as possible. Once you’re approved and get your CAGE code, you will be eligible to bid on contracts. You can give us a call at (800) 985-7658 or click on the green New Registration tab on our homepage.