Business owners often are encouraged to consider bidding on federal contractor jobs. While these can be beneficial and lucrative for many companies, they aren’t a perfect fit for every company. To determine if your company might be a good match with government contracting, we’ve created this handy guide.
1. Is There A Government Demand For Your Goods & Services?
When people think about federal contractor jobs, those lucrative defense contracts or large construction contracts might spring to mind or even natural disaster clean up jobs, but that’s just the tip of the iceberg.
There are hundreds of federal government agencies and offices (as well as state government agencies) that need goods and services and they look to the private sector to fulfill those needs. Agencies need everything from elevator repair to janitorial services to office supplies and much more.
Federal agencies often search for potential government contractors using NAICS codes. This stands for North American Industry Classification codes. They also may search using Product Service Codes, which are known simply as PSCs. The codes describe the types of goods and services a company might provide, and there are codes for virtually every business imaginable.
For instance, if you manufacture infants’ clothing, the corresponding NAICS code is 31524. If you produce brooms and mops, that code is 339994. If your company manufactures tortillas, that code is 31183. If your company provides human resources consulting services, that code is 541612. Literally, there is a code for just about everything.
Now, while there is a code for every type of business, that doesn’t mean that there is always a demand for those goods or services. We recommend that you head to Beta.SAM.gov and take a quick look at whether or not your codes seem to be in play.
Even if you don’t find anything, that doesn’t mean there’s never a need for your goods and services, but some types of companies will always be in need while others are less likely to strike a match. Getting back to that tortilla manufacturer, we ran that code in Beta.SAM.gov and found one match from the Department of Defense.
So, it’s worth taking a look before you pass on government contracting. While just one single opportunity might not be enough to entice you, it simply illustrates that there is a lot out there up for grabs.
Not only do you need to check and see if there are opportunities for your specific industry, but you also need to read over the job opportunities and ensure that your company could handle the requirements of the job. In some cases, you will be a perfect match, but in other cases, you might not have the production capabilities outlined in the contract.
2. Are You Prepared For SAM Registration?
If you want to bid on federal contractor jobs, your first step is to complete your SAM registration. This stands for the System for Award Management and it’s a huge database that lists all government contractors. Once you complete SAM registration and are approved as a contractor, you will receive a Commercial and Government Entities (CAGE) Code. This code is essential as all government agencies, federal and at state (or even county and local levels) will ask for this code.
SAM registration is the first hurdle in the race for government contract jobs and, unfortunately, it can be a pretty significant hurdle for many people to leap over, so to speak. The government does not charge a SAM registration fee, but many people often become so frustrated with the process that they give up and forget about government contracting.
At Federal Contractor Registry, we can leap over this step for you. We are a third-party SAM registration service, and we complete hundreds of SAM registrations every year for companies large and small. We do, of course, charge a fee for our services, but we can help you through the complicated SAM registration process, and once you have completed that, you are eligible to bid on contracts.
Here’s what we need to complete your SAM registration:
• Your DUNS number (If you don’t have one or aren’t sure about your number, go to www.DNB.com)
• Your Employer Identification Number (located on your business tax forms)
• Your company’s physical address (not a PO Box)
• Basic contact information (phone number, email address, etc.)
• Your business checking account number & bank routing number (this is the account government agencies will use to pay you)
If you know your NAICS codes and PSCs, give us those as well. If you don’t, then we can chat about your goods and services and we will determine those codes for you. While we are taking care of your SAM registration, you will need to send the government a notarized letter listing your Entity Administrator, which is simply the person authorized to make changes to your SAM account.
To learn more about this letter and grab a template, go to FSD.gov. At the top of the page, go to Top Help Topics, under that, you will see a section for SAM and a section entitled “Notarized Letter – Notarized Letter Requirement (Domestic).” This will lead you to a section with links to a template for this letter. Follow the instructions exactly and send in the letter as soon as possible.
3. Can You Devote Some Time To Government Contracting?
While SAM registration is crucial, it’s just one step. If you find that there seem to be many opportunities, you might want to devote an employee to handling government contracting tasks. This person can do everything from creating a Capability Statement (a kind of resume for government contractors) to researching the types of government contracts and how to bid or create proposals.
This can be complicated, but there are resources out there to help. If you qualify as a small business, the Small Business Administration can be a great place to start. To see if you qualify as a small business, you can go to https://www.sba.gov/size-standards. You will need to know your NAICS codes for this process, and we can help you find those during the SAM registration process if you wish.
If you do qualify as a small business, and many do, this creates even more opportunities. The government sets aside a portion of federal contracting dollars just for small businesses. Typically, jobs worth $150,000 or less all go to small businesses and sometimes larger contracts.
While the process for small businesses and government contracting might be a tad simpler than for large prime contractors, there is still a lot to learn about the process. It is not unusual for it to take 18 months to two years to earn your first government contract. Typically, once you earn that first contracting, it becomes easier to earn future contracts, but you need to know, going in, that you don’t just complete SAM registration, fill out a couple of applications and immediately get a contract.
It takes time to learn how to bid and it also takes time for many government agencies to even make decisions about who will earn these federal contractor jobs. The upside is that the government always pays its bills. It simply takes longer for them to pay. Also, even when economic conditions are unstable, the government still needs contractors even if you have fewer opportunities in the private sector.
Are Federal Contractor Jobs Worth The Effort?
If you find that your company provides goods and services that seem to be in demand by multiple government agencies and you have the time and resources to learn about government contracting, then we highly recommend that you complete SAM registration.
Federal contractor jobs can be highly lucrative and definitely can help you build up your business. Don’t forget to sign up with your state procurement office, as well, as state governments also need government contractors. In some cases, it can be easier to earn state contractor jobs and these can be just as lucrative.
Whether you want to bid on state or federal contractor jobs, your SAM registration must be completed and approved. If you want us to handle this arduous process, you can click on the green New Registration tab on our homepage or give us a call at (800) 985-7658. We can quickly and accurately complete your SAM registration (or SAM renewal) so that you are approved and ready to bid on contracts as soon as possible.