While it doesn’t always seem like the government is a helpful entity, the federal government has set up many programs to boost small businesses. If you are interested in bidding on federal contractor jobs, small business owners sometimes have an advantage over mid-size and larger firms. Here are a few helpful tips and facts for small business owners.
Discover If You Qualify As A Small Business
Even if you have several hundred employees, you might qualify as a small business. The government sets size standards and what they consider “small” might surprise you. To see if you qualify, head to https://www.sba.gov/size-standards, which is the Small Business Administration’s (SBA) Size Standards Tool.
Once you click the red Start button, the system will ask for your NAICS codes. This stands for North American Industry Classification System, and this system assigns codes to just about every good or service imaginable. For instance, if your company is a nursery or garden store, the code would be 444220. If you have 500 or fewer employees, you meet the SBA’s small business size standards.
If you don’t know your NAICS codes, the SBA provides a link on its Size Standards Tool page, or you can simply head to https://www.census.gov/naics/ and click on the 2017 manual and browse until you find the codes that best describe your specific goods or services.
Take Advantage Of SBA Programs
Once you determine that you do qualify as a small business, be sure to take advantage of all that SBA has to offer. The SBA has many resources for small businesses and not just those that relate to federal contractor jobs. The SBA provides loans and resources to help you manage and grow your business. They offer free business counseling and some helpful resources for those interested in government contracting.
The SBA sponsors several contracting assistance programs for companies that want to bid on government contracting jobs. The federal government sets aside a portion of all of its federal contracting budget and these contracts are known as “set asides.” There are several different types of set asides, including:
Small Disadvantaged Business – About 10% of all federal contracting jobs are set aside for companies that are considered “small disadvantaged businesses.” These companies must be 51% or more owned and controlled by a person or people that are considered either socially disadvantaged or economically disadvantaged (or both). This includes people of any group that has been “subject to racial or ethnic prejudice or cultural bias within American society,” such as Native Americans, African Americans, Asian Americans, etc.
Women-Owned Small Business – If your business is 51% or more owned and controlled by a woman or women, this can be a good set aside category for your company, which is often called the WOSB program. There is also a subcategory called Economically-Disadvantaged Woman-Owned Small Business (EDWOSB).
Veteran-Owned Businesses – There are two set asides in this category. The first is for a general veteran-owned small business that is 51% or more owned by a veteran or veterans. The second is for those injured during their service and this is known as the Service-Disabled Veteran-Owned Small Business Program.
8(a) Business Development Program – This is another program designed for businesses that are 51% or more owned by persons that are considered socially and economically disadvantaged. This could be due to race or creed or due to gender, sexual orientation, disability or other factors. There are several other requirements for this program, which include caps on personal net worth, adjusted gross income and total assets, but if you qualify, 8a contracts can be quite lucrative and easier to win than other types of government contracts.
HUBZone Program – HUBZone stands for Historically Underutilized Business Zones and there are many HUBZones throughout the United States. These typically are located on Indian reservations, in rural areas and in urban areas where the economy needs a boost. There also can be temporary HUBZones in areas hit by a natural disaster to help rebuild the economy in those areas.
To qualify, your business must have its principal office be located in a HUBZone and be 51% owned or more by a U.S. Citizen, a Community Development Corporation, an agricultural cooperative, an Alaskan Native Corporation, a Native Hawaiian organization or a Native American tribe. Additionally, at least 35% of your employees must live in a HUBZone, although not necessarily the same zone where your business is located.
You can get certified for several of these programs, including the 8(a) Business Development Program, the WOSB program and the HUBZone program at https://certify.sba.gov/am-i-eligible. For veterans’ programs, go to https://www.sba.gov/federal-contracting/contracting-assistance-programs/veteran-assistance-programs for more information.
Discover If Your Goods & Services Are Needed
Of course, even if you qualify for any set asides, you also need to determine if the government needs your goods and services. The System for Award Management, which is the government’s database for government contracting, includes a search engine at Beta.SAM.gov where you can check to see if you match any current government contracts.
Once you go to Beta.SAM.gov, click on the Contract Opportunities tab and this takes you to the search engine. From there, click on Advanced Search and we recommend that you search using your NAICS codes as this can help you find matches to your specific goods or services. If you find several matches, chances are that your business might be a good fit for federal contractor jobs.
Of course, state governments also acquire the bulk of their goods and services from the private sector, so don’t forget to sign up with your state procurement system. Additionally, check for federal contractor jobs using the SBA’s SubNet search engine at https://eweb1.sba.gov/subnet/client/dsp_Landing.cfm.
This database includes subcontracting opportunities for small businesses. Subcontracting is a great way to get started with federal contractor jobs as the Prime Contractor will handle all of the details with the federal government agency and you simply provide goods or services. Many Prime Contractors are required to use small businesses as subcontractors in order to win large government contracts.
Complete Your SAM Registration
Of course, you cannot bid on any federal contractor jobs (or state government jobs) until you have completed your SAM registration. The System for Award Management (SAM) includes all active government contractors and to become a government contractor, you must complete SAM registration and have your application approved.
Completing SAM registration can be a huge stumbling block for many small businesses because, while the government charges no fee to complete SAM registration, the application process is confusing and time-consuming, and many people just give up after they have spent several hours trying to figure out if they are completing the process correctly. Make any mistakes, and this will delay your approval and you won’t be eligible to bid on any federal contractor jobs.
An easier option would be to simply hire a third-party SAM registration service. While we do charge a fee for SAM registration, we have completed thousands of SAM registration applications for all types of businesses and can complete your registration quickly and accurately.
Yes, this is an extra expense, but SAM registration can take 12 or more hours to complete, and we will focus on your SAM registration so that you can focus on your business responsibilities. It’s just like hiring an accountant to do your taxes. You could complete tax forms on your own for free, but it’s difficult, confusing, time-consuming and, mistakes are costly. Sometimes it’s just easier to hire an expert.
If you are interested in bidding on federal contractor jobs and would like us to handle your SAM registration, just click on the green New Registration tab on our homepage and fill out our quick contact form. A registration specialist will be in touch as soon as possible to gather some details and get started on your SAM registration.