There are government contracting jobs available for just about any type and size of company, but to bid on and win these lucrative jobs you first have to complete your SAM.gov registration. However, that is just one of several steps you’ll need to take in order to become a successful government contractor.
What Is SAM.Gov Registration?
The government cannot do business with a company that is not registered and active with the System for
Award Management (SAM). This is a database that lists all government contractors. Once you complete your SAM.gov registration, you will be given what is known as a Commercial and Government Entity Code, or CAGE Code. This code serves as the unique identifier for your company within the SAM database.
The government does not charge companies or individuals to complete their SAM registration. However, you do need to be prepared to spend 10-12 hours working on this application. It’s a complicated document and, unfortunately, many people are dissuaded from becoming government contractors because SAM registration can be so frustrating.
Before you begin with SAM.gov registration, you need to collect some information and have it nearby as you work through the application. This includes:
- Your company’s DUNS number (you can look up your number or sign up for a number at DNB.com)
- Your company’s physical address & mailing address
- Your company bank account & routing numbers (government agencies will pay you into this bank account)
- Your Employer Identification Number (EIN)
- Your NAICS Codes & PSCs
At this point, you might be wondering about the NAICS codes and PSCs. NAICS stands for North American Industry Classification System and PSCs are Product Service Codes. Both of these codes describe the type of goods and services your company provides and there are codes for just about any industry imaginable.
Let Us Help With SAM.Gov Registration!
SAM registration is not a simple process, and many people choose to save time and frustration and simply hire a third-party registration service, such as Federal Contractor Registry. We can complete your SAM registration (or SAM renewal) quickly and accurately without any hassles, and this includes studying your goods and services to determine the best NAICS codes and PSCs for your business.
In general, while you can complete your SAM.gov registration by yourself, it’s often simply easier to leave this to experts. We have completed thousands of SAM registrations and renewals. We are similar to accountants in that a person can fill out their tax forms themselves, but the tax code is confusing, so it often makes sense to hire a tax expert. It’s just the same with SAM registration. We are experts and can take this arduous task off your hands.
5 Other Steps You Need To Take
Of course, SAM.gov registration is just the first step in the process of becoming a government contractor.
- Sign Up With The Small Business Administration
If you qualify as a small business, this can open up a world of opportunity. The Small Business Administration (SBA) offers an array of services and support for small businesses, but that’s not the only reason to sign up.
If you want to become a government contractor, it’s important to note that the government sets aside a portion of its contracting budget just for small businesses. You can qualify as a general small business, but there are also special designations, known as “set aides” for specific situations.
For instance, a portion of contacts are set aside especially for women-owned small businesses. There are two set asides for veterans, one for a business owned 51% or more by anyone who served in the military (veteran-owned small business) or for a business owned 51% or more by service-disabled veterans.
Additionally, there are set asides for small disadvantaged businesses. These are businesses owned 51% or more by people considered socially disadvantaged or economically disadvantaged.
It also is recommended that you look into the 8(a) Business Development Program as well as the HUBZone program. If you can earn 8a certification, as it’s often called, this can make acquiring government contracts much easier, but the company does need to be 51% or more owned by a U.S. citizen that is part of a socially or economically disadvantaged group.
The HUBZone program was set up to strengthen the economies of certain areas throughout the country. There are HUBZones in rural areas, urban areas and on Native American reservations. Sometimes areas affected by natural disasters earn temporary HUBZone status as they move toward recovery.
To see if you qualify as a small business and to learn more about SBA programs, go to SBA.gov. Of course, not all businesses qualify, but you might be surprised to find that you fit within the limits for your industry category.
- Create A Capability Statement
Whether you are a small, medium or large business, you will need to create a capability statement, which is a type of resume for a government contractor. However, instead of highlighting the positives about an individual, a capability statement highlights what sets your company apart from the competition.
This capability statement should feature an attractive, easy-to-read design and include several categories, including:
- About Us (This section is a brief description of your business)
- Core Competences (Usually a bulleted list of goods and services you provide)
- Past Performances (A list of companies/government agencies with whom you’ve worked in the past)
- Differentiators (A list of what sets you apart from other similar businesses
- Corporate Data (This can include your contact information as well as your CAGE Code, NAICS codes, PSCs and other important certification or codes.)
There are many examples of excellent capability statements on the internet. We suggest you study a few examples that relate to your industry before creating your own. Additionally, you should post this capability statement on your company website as well as your business LinkedIn page.
- Learn About The Types of Government Contracts
There are several types of government contracts, and it’s smart to learn about each type. Here’s a quick look at some of the most common types you might encounter.
Firm Fixed Price Contracts
These are popular with government procurement agents because they simply put out the contract with a fixed price and companies that can meet that price can bid. These are common when a procurement agent has a good idea of the exact type of supplies or services that are needed and can determine fairly easily what a reasonable cost for those goods and services might be.
These types of contracts tend to benefit the government more than the government contractors. This is because if a government contractor underestimates how much the goods or services will cost, the government is still only going to pay the fixed price amount. However, if you, as the contractor, feel very certain that the amount to be paid with cover your expenses and still provide you with a solid profit, bidding on a fixed price contract can be a good option.
Cost Reimbursement Contracts
Sometimes, of course, the procurement agency won’t know precisely how much goods and services might cost, so they will offer up this type of contract. This tends to place the burden on the government because the contract could end up costing more than originally expected.
In some cases, if the goods or services exceed the originally agreed-upon price, the contractor can work with the procurement agent to increase the amount of money needed to complete the contracting job.
These are the two most common types of contracts, and there are several different types of these two contracts. Additionally, you often see other types of contracts, such as Time & Materials Contracts, Labor Hour Contracts, Incentive Contracts and more. Learning about these different types of contracts can help you better understand the world of government contracting jobs in general.
- Find Government Contract Opportunities
Finding government contracting jobs can be easier than actually bidding on these jobs and winning the contracts. You can use Beta.SAM.gov as a resource, as this government website includes a search engine where you can look for available contracting jobs.
To use this search engine, we recommend that you search using your NAICS codes and PSCs as this will bring up matches for the types of goods and services your company provides. You also can search using keywords, by government agency, set asides, place of performance and several other filters. You also can search using multiple filters.
For instance, you might search using your NAICS codes and the place of performance. This means you want to provide goods or services in a specific location, usually near your place of business. We also recommend that you check the “active” tab under the Status filter, as this will pull up active contracts. You can search inactive to get an idea of what’s been available in the past and see with which agencies you might be a good fit.
Small businesses also should check out what options might be listed on the SBA’s Dynamic Small Business Search (DSBS), which is available at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm. Subcontracting also is a good option, particularly for small businesses new to government contracting. Many prime contractors are required to use subcontractors to win big government contracts, and you can search for these opportunities at SBA’s SubNet, which is located at https://eweb1.sba.gov/subnet/client/dsp_Landing.cfm.
Don’t forget about signing up with your state procurement agency, as there are millions of dollars in state government contracts available every year. It can be easier to win a state contract and they also set aside a portion of their budgets for different types of small businesses. They also tend to offer the same kind of contracts and use similar bidding types. Keep in mind, you will need to complete SAM registration as state government agencies also ask for your CAGE code when you sign up with their system.
- Learn About The Bidding Process
Aside from tackling SAM.gov registration, understanding the bidding process can be one of the most complicated aspects of government contracts. The first step is finding some contracts that seem to fit what you can provide. Once you find a contract that seems like a good match, read the proposal thoroughly and follow all of the instructions precisely.
You need to become familiar with terms such as Invitation to Bid (ITB), Request for Proposal (RFPs, Request for Qualification (RFQs) and Request for Tender (RFTs), as these are all quite common. Government procurement agencies sometimes hold workshops and training sessions for companies new to government contracts and these are often free or low-cost and can serve as a helpful resource as you learn the ropes.
Get Started Today With SAM.Gov Registration
If you’d like us to handle your SAM.Gov registration, contact the team at Federal Contractor Registry at any time. To get started with the process, 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 shortly to gather some important information about your company.