Procurement Agents: 5 Facts For Government Contractors

Government contractor jobs can be very lucrative, but the process of acquiring these government contracts is much different than working within the private sector. Each government agency has procurement agents to help facilitate the selection of contractors, and it’s smart to understand a bit about these important individuals.

When it comes to government contractor jobs, the word “procurement” will become very important to you. Procurement refers to the process by which all government agencies acquire goods and services from the private sector. Every agency of the federal government and most state government agencies will have procurement agents on staff specifically to help with finding government contractors. Here are a few helpful facts about these government agents.

1. Procurement Agents Are Crucial Decision Makers
While the owner of a private company can simply select a vendor, the heads of government agencies cannot just decide that they want a good or service, call up a company and purchase what they need. They must first submit a request or purchase order to the procurement agents serving their agency.

In some cases, such as for very small purchases under about $3,000, a procurement agent can simply do some research and find the best options and purchase what is needed. Once you get above that $3,000 mark, the process becomes a bit more complicated, but procurement agents are still the individuals tasked with taking that purchase order, reviewing it and determining how best to fulfill that request. In general, contracts between $3,000 and $150,000 almost always are awarded to small businesses, although small businesses owner also can bid on larger contracts if they wish.

2. A Government Office Was Created Just For Procurement Policy
There are so many government agencies and special offices it could make your head spin. There are 15 main Cabinet departments, such as the Department of Defense and Department of Homeland Security, and within each of these main departments are dozens of other agencies and offices. All of the agencies and departments are part of the Executive Branch of government. There are also a few other agencies operated by Executive Branch, including the Small Business Administration, the Environmental Protection Agency and the Office of Management & Budget.

Within that latter agency or office is where you’ll find the Office of Federal Procurement Policy. This office was created in 1974 to set standards and practices for government procurement that, according to its website, “result in the best value for the taxpayer.” All government agencies must follow the standards set forth by the Office of Federal Procurement Policy, or OFPP.

3. Procurement Agents Follow Strict Guidelines
Even if you are golfing buddies with the head of a government agency, this isn’t really going to help you win government contracting jobs. The agency heads might recommend someone, but it’s completely up to the procurement agents which companies are selected to fulfill contracts and they must follow the rules precisely.

Rather than worry about talking to regular agency employees, it’s better to establish solid relationships with an agency’s procurement officers. It’s also smart to present your company as an attractive and affordable option with a solid Capability Statement. If you are a good match for the government contract and can showcase your experience and skills well, you are more likely to be considered.

All potential government contractors need to create a quality Capability Statement, which basically is a resume for government contracting. It looks quite a bit different from a typical worker’s resume and contains unique sections such as Core Competencies, Differentiators, Past Performance, Company Data and Contact Information.

There are many examples online of solid Capability Statements, and we highly recommend that you take a look, and follow their lead. A great statement, just like a great resume, truly can set you apart from other companies.

4. Private Companies Also Use Procurement Agents
While we typically think about procurement agents in regards to government contractor jobs, many larger companies also hire procurement agents to handle their purchasing of goods and services. When you learn how to establish strong relationships with government procurement agents, it can help you establish a good rapport with private sector procurement specialists.

As a side note, working as a procurement agent, either with a private company or for a government agency can be a lucrative career. With the current pandemic, many people are searching for new job opportunities, and if you are highly organized and efficient as possess strong communication skills and analytical skills, this might be a good option to consider.

5. Procurement Officers Only Consider Approved Vendors
There are thousands of government contractor jobs available, and many set aside specifically for small businesses. However, you are not eligible to bid on any of these government contractor jobs until you have been approved and have an active account in the System for Award Management (SAM).

SAM is a government database that lists the status of all government contractors and is run by the Federal Service Desk, which in turn is managed by the General Services Administration. You must complete the SAM registration process in order to gain the government’s approval to bid on contracts. This can be a sticking point for many businesses because the registration process, while free, is extremely complicated.

At Federal Contractor Registry, we can handle your SAM registration and get you on the road to earning lucrative government contracting jobs. We do charge for our services, but it can be much easier to simply hire a SAM registration expert than to try and complete the application on your own, which is filled with government-speak and confusing instructions.

Many people get started with their SAM registration only to become quickly frustrated by the process, but you don’t have to let the complexities of the registration process prevent you from expanding your company via government contracting.

We can complete the process quickly and accurately so that you can start bidding on government contracting jobs and working with procurement agents. After the application is approved, the government will issue you a Commercial and Government Entity Code or CAGE Code. Once you have a CAGE Code, you are eligible for bidding, and you can even sign up with state procurement systems to provide goods or services to state government agencies, as well.

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