The Department of Defense is the largest agency in the U.S. federal government and, as you might expect, this agency also spends far more on government contracts than any other agency. DOD contracts can be a lucrative option for government contractors, and you might be surprised at how this agency spends its money.
In 2021, the Department of Defense had a budget of more than $700 billion and much of this was used to pay for government contracts. While it’s true that companies such as Lockheed Martin and Northrop Grumman earn a large percent of these contracts, there are still plenty of contracts out there for mid-size companies and even small businesses. Here are a few facts about working with the DOD.
- DOD Doesn’t Just Needs Tanks & Airplanes
While the big bucks in DOD contract spending certainly come from providing aircraft, tanks, weapons and other similar items, just like other agencies, the DOD also needs many other supplies.
For instance, they have to feed our troops, so food services are always needed. They need office supplies, clothing suppliers, medical equipment, repair services and much more. We did a recent search using the SAM.gov Contract Opportunities search engine and found everything from contracts for printer paper to HVAC replacement to shipping equipment.
To determine if you are a good fit for DOD contracts, head to SAM.gov and click on the Contract Opportunities tab. From click on Advanced Search. Type in “defense” under Federal Organizations or use the code 097.
From there, we recommend that you narrow down your search using your North American Industry Classification System (NAICS) codes. These codes describe the type of goods or services that you can provide to the federal government. We can determine your codes during the SAM registration process, or you can look for them at Census.gov.
If you don’t find a match, don’t give up on government contracting jobs! There are hundreds of federal agencies, and many of them probably need your goods and services. Additionally, state governments also use goods and services from the private sector and these contracts can be just lucrative as the fed contracts.
- Security Clearance Is Not Always Needed
Many new to government contracting jobs mistakenly believe that they cannot do business with the DOD unless the have security clearances, but this is not always the case. Obviously, some companies, such as those manufacturing weapons or aircraft, will need high-level security clearance, but if you are simply providing supplies or some services to DOD, this may not be necessary.
- SAM Registration Is The First Step
The System for Award Management (SAM) is a database that contains information about every government contractor, but in order to be listed in this database, you are required to complete the SAM registration process.
While the government doesn’t charge a fee to sign up for any of its programs, including SAM registration, it’s not the easiest process and many people give up on the idea of government contracting once they discover the amount of paperwork involved in the process.
It can be easier to simply hire a third-party registration service, such as Federal Contractor Registry to complete your SAM registration. We do charge a fee, but we can save you tons of time and frustration. For those new to government contracting, it can take 10, 12 or more hours to complete the registration process, which is filled with confusing government speak.
We can ensure that your registration is completed quickly and accurately, so that you are approved as fast as possible and receive your CAGE code, which is the unique identifier for your company in the System for Award Management. You cannot do business with any federal agency without a CAGE code and active listing in SAM.
Why choose Federal Contractor Registry? In addition to completing your SAM registration, we also offer several additional value-added services to help you get started in federal government contracting, including:
- Signing up with the Small Business Administration (if applicable)
- Helping with the Notarized Letter Requirement for SAM Registration
- Acquiring your Unique Entity Identifier (which recently replaced DUNS)
- Introducing you to Super 8a Contractors in the FCR Network
- Study Up On Contracting Rules & Regulations
The government has many regulations regarding government contracting, and it’s important that you understand the rules that apply to the type of contracts you bid on. These rules are known as Federal Acquisition Regulations (FAR) and for the DOD contracts, they are called Defense Federal Acquisition Regulation Supplement (DFARS). The DOD often has more stringent and complex regulations given the level of security needed for certain contracts.
These regulations not only stipulate what guidelines contracts must follow but also guidelines that the government agencies must follow. This might include requiring certain contracts be set aside for small businesses or perhaps requiring that contractors ensure that they have a drug-free workplace, etc. There are literally thousands of regulations that fall under FAR.
Obviously, you don’t (nor could you) memorize all of these organizations, but if you see a government contract notice and it lists a FAR on it, it is smart to go to Acquisitions.gov and take a look at the specific FAR listed in the contract as this may preclude you from bidding on the contract.
In general, the government expects that all government contractors provide them with one might term honest services at an honest price. If it is discovered that you or a representative from your company has violated a government regulation or acted in an business-like manner or mishandled money, etc., this could end up with your company being placed on the Excluded Party List System.
If you end up on this list, this prevents you from bidding on any federal contractor jobs until your suspension is lifted and it is quite a process to have a suspension lifted. In some cases, it isn’t even a possibility.
- Check Out The DOD Website
If you head to Defense.gov (which is often called DefenseLink), you can learn a great deal about this agency, up-to-date news and even information about government contracting jobs that have been awarded.
While the website isn’t a huge help for potential defense contractors, it does give you an idea of what’s currently happening at DOD and where they might need help in the near future.
As stated above, you can find contracting options at SAM.gov, but we also recommend that you check out the Small Business Administration’s SubNet system, which lists subcontracting opportunities for small businesses. Subcontracting can be a great way to get started with government contracting.
Get Started Now!
If you want to bid on DOD contracts or contacts with any other federal agency and would like us to help with SAM registration, just click on the green New Registration tab on our homepage. Fill out our quick contact form and a registration specialist will be in touch as quickly as possible to gather your information and get started on your SAM registration.