
While becoming a government contractor can be a lucrative endeavor, not every contracting job is a great match for your company. Before you bid on any federal contracting job, be sure to ask yourself the following questions to determine if the job is the right fit for your business.
- Am I Eligible To Bid
While a cursory glance at a contract might indicate that your company can provide the goods or services listed in the contract, there may be restrictions or requirements that eliminate your ability to win the contract.
For instance, some federal contracting jobs, especially many sole-source contracts, are limited to small businesses. These are known as small business set aside contracts and to bid on these types of contracts, you must qualify as a small business and sign up with the Small Business Administration (SBA).
If your business does qualify, it’s smart to apply with the SBA, and there are many options. Aside from qualifying as a general small business, you also could determine if your company is eligible for programs such as the Woman-Owned Small Business (WOSB) program, the Service-Disabled Veteran-Owned Small Business (SDVOSB) program, HUBZone certification, or other small business programs.
- Do I Fully Understand The Scope of Work?
Again, while it might seem like your company can provide the goods or services outlined in government contracting jobs, it’s important to look beyond the general description. Study the required products or services carefully, as well as the estimated quantities needed, the delivery locations, deadlines, and expected results.
Government contractor proposals can be difficult to understand. In some cases, you might notice that the contract is vague or includes conflicting information, or perhaps responsibilities are not clearly assigned.
If you cannot confidently explain what the agency expects from this contract, what resources the work requires, and how your company can fulfil the contract, you may not be ready to make a bid. We recommend submitting any questions to the contracting officer listed in the proposal well ahead of the stated submission deadline.
- Does My Company Meet All Mandatory Requirements
While all companies must have an active registration in the System for Award Management (SAM), contracts typically contain many other requirements, including many regulations known as Federal Acquisition Regulations, or FARs.
The contract might include set-aside requirements as detailed above, as well as certain professional licenses, technical certifications, security clearances, cybersecurity standards, bonding, and insurance coverage. Additionally, the agency might require your company to possess certain types of equipment, facilities, or specialized personnel in order to fulfill the contract.
Be sure to pay close attention to when each qualification must be in place. In some cases, the requirements must be in place when the proposal is submitted, but sometimes you may have until the start of performance to fulfill the requirements. Never assume that you will be allowed to obtain a missing license, clearance, or certification at a later date unless the solicitation clearly permits it.
You also need to be prepared to provide documentation supporting any requirements outlined in the contract. Simply stating that you have a certification or meet a requirement is not enough. You must provide proof of licenses, certifications, past-performance records, or other evidence.
- Does My Company Have Relevant Experience?
Past performance is a strong indicator that your company can handle the requirements of a contract. If your past projects demonstrate that you have the skills and experience to perform the work outlined in a contract, you are more likely to be considered for the job.
However, if you don’t have the experience, you also could consider whether or not a qualified subcontractor or teaming partner could fill the gap. Unless the contract is a sole-source contract, working with other qualified contractors can be a good option to consider if you lack experience and need to build up your federal resume.
In many cases, we recommend that new contractors consider subcontracting for their first few contracting experiences. With subcontracting, the prime contractor handles the bidding process and the interactions with the federal agency, allowing you to build relevant experience without the complexities associated with bidding on contracts.
- Can We Meet The Proposal Deadline?
Preparing a proposal for a government contract is a complex process, and if your team doesn’t have enough time to prepare an accurate, complete, and persuasive proposal without neglecting your existing customers and obligations, it might be better to look for contract opportunities with a later submission date.
- Can We Price The Contract Competitively & Still Profit?
Take some time to calculate the costs of labor, materials, overhead, travel, compliance expenses, and other costs associated with the contract. If the profitability just isn’t there, this contract may not be a match for your company.
Keep in mind that while government procurement agents are always on the lookout for affordable contracting options, that doesn’t mean they automatically take the lowest bid. Your expertise and past performance can be more compelling than a low bid, but some contracts do have a set price, and if that price is too low, it’s best to look for other contracts.
- Does This Contract Support Our Long-Term Goals?
Consider whether the opportunity fits your capabilities, target agencies, and growth strategy. Even if your company can perform the work, the contract may not be worth pursuing if it offers little profit or pulls resources away from better opportunities.
How To Get Started As A Government Contractor
If you’ve studied contract opportunities at SAM.gov and determined that your company might be a great fit for contracting, your first step will be to complete your SAM registration. No company can do business with the federal government without taking this step, and we can help.
SAM registration can be an extremely complicated and time-consuming process, and it often makes sense to simply hire SAM registration expert to handle this task. At Federal Contractor Registry, we can complete your SAM registration quickly and 100% accurately, so that you are eligible to bid on contracts as soon as possible.
Additionally, we can help you obtain your Unique Entity Identifier, or UEI number, and determine if you qualify for any small business set-asides. If so, we can help you sign up with SBA to ensure that you can take advantage of these programs.
If you are ready to get started as a government contractor and would like us to complete SAM registration for you, simply head to our homepage, click on the New Registration tab, and fill out our quick contact form.
