If you are a small business owner, you are always looking for ways to expand your company. Government contract jobs can be an excellent option to consider, but many people simply don’t know how to get started with contracting and we can help.
Get Started With SAM Registration
The first step that any potential government contractor must take is to complete their System for Award Management (SAM) registration. SAM is a huge database that lists all government contractors.
After you register with SAM and are approved, you will receive what is known as a Corporate and Government Entities (CAGE) Code. Until you have your CAGE Code, you cannot do business with the federal government or any state government agency, as these agencies also require you to have a CAGE Code.
The government does not charge a fee to register with SAM, but the registration process is complicated and confusing. It can take more than 10 hours to wade through the government-speak and complete the process. This is why many companies hire us, a third-party registration service, to complete their SAM registration.
We do charge a fee, just as an accountant charges a fee to do your taxes, but we handle hundreds of SAM registrations each year and can quickly and accurately complete your registration so that you are ready to start bidding on contracting jobs.
Of course, while SAM registration is complicated, it’s not the only complicated part of becoming a government contractor. Learning the ropes can be tough, but the following information can give you a leg up over other businesses.
The SBA & Government Contracting
The Small Business Administration was created to help small businesses grow and succeed. The SBA can help you with start-up loans, helpful business advice and government contractor jobs.
The government pays contractors billions of dollars every year, and a portion of all contracting dollars are set aside specifically for small businesses. These contracts are known as “set asides” and there are several different types.
Woman-Owned Small Business Set Asides – As the name suggests, these are government contractor jobs set aside for businesses owned 51% or more by a woman or women.
Veteran-Owned Small Business Set Asides – There are two set aside categories here. One for general veteran-owned businesses and one for service-disabled veteran-owned businesses. In both cases at least 51% of the ownership must belong to a veteran or service-disabled veteran.
8 (a) Business Development Set Asides – The 8 (a) Business Development Program was set up to support many different types of “disadvantaged” small businesses. In order to be considered for this program, you must own a small business and fit the following criteria:
• The business must be at least 51% owned and controlled by U.S. citizens who are economically and socially disadvantaged.
• The business must be owned by someone whose personal net worth is $750,000 or less
• The business must be owned by someone whose average adjusted gross income for three years is $350,000.
• The business must be owned by someone with $6 million or less in assets
• The owner must manage day-to-day operations and also make long-term decisions
• The company principals must demonstrate good character
• The company must show potential for success and be able to perform successfully on contracts
While some of these qualifications are straightforward, let’s take a look at some of the more ambiguous requirements. For instance, if you want to bid on 8(a) contracts, you must be majority-owned by a citizen that is economically or socially disadvantaged. But what does this mean?
According to the federal government, economically or socially disadvantaged refers to individuals “who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control.”
This includes people from many races and ethnic origins, but also can refer to gender, sexual orientation or a physical disability. Basically, if you can prove that you are part of group or groups that has faced prejudice or bias based upon something about which you had no control, you should qualify.
HUBZone Set Asides – Sometimes your business location qualifies you for a set aside. If your company headquarters are located in an Historically Underutilized Business Zone (HUBZone), you may qualify for this set aside.
There are HUBZones in all 50 states as well as U.S. territories. For instance, if a business is located on a Native American reservation, these are considered HUBZones. Many inner-city neighborhoods qualify for HUBZone benefits as well as some rural areas.
In some cases, an area might be temporarily designated as a HUBZone. For instance, if a natural disaster such as a tornado or hurricane or fire destroys a town or business district, this might be tagged as a HUBZone because the government will be trying to improve the economy in this area. To see if your business is located in a HUBZone and meets HUBZone requirements, go to https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5.
Even if you don’t fit the criteria for these set asides, you can still register with the SBA as a general small business so it’s smart for any small business owner to sign up with the SBA. Anytime a government agency has a contract that is worth $150,000 or less, these almost always are awarded to small businesses. While a big company might not think much about a $150,000 contracting job, this could be a huge win for a small business.
Finding Government Contractor Jobs
Once you’ve registered with SAM and the SBA, there are several ways to find contracts. You can go to Beta.SAM.gov and search all contracting opportunities or you can go to the SBA’s Dynamic Small Business Search at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm.
With the SBA’s search, you can search for government contract jobs by state or zip code, and also by set asides. If you don’t qualify for any set asides, you can search for jobs using your North American Industry Classification System (NAICS) Codes. These codes describe the specific goods and services you provide, and we can help determine your codes as we complete your SAM registration. In the SBA search, you can search using a single criterion or use several criteria to really narrow down the search to options that suit your business.
Don’t forget to sign up with your state government’s procurement system, as well. State governments also set aside some government contract jobs for small businesses, and these can be just as lucrative as federal contracting jobs. To find your state’s procurement website, do an internet search with your state name and the word “procurement.” Look for a website with the .gov extension and you will have found your state’s procurement agency.
Learn All You Can About Government Contracting
There are many different types of government contracts and there are also different bidding processes. Learning about these is crucial if you want to be successful at contracting. The SBA offers many helpful guides and articles about contracting, and you can start there, but you also can sign up with your local Procurement Technical Assistance Center (PTAC). There are a few private companies that offer courses about government contracting, which might helpful.
Get Started Now
Government contractor jobs can be a lucrative option for many companies, and if you want to get started bidding on government contract jobs, we can complete your SAM registration quickly and accurately. Once you are approved, you will be eligible to bid on contracts. You can contact us by phone at (800) 985-7658 or by clicking on the green New Registration tab on our homepage.