Tag: what is government contracting

What Is Government Contracting? Your Top Questions Answered

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Government contracting can seem complex and intimidating, especially if you’re new to the process, but it also offers huge opportunities for businesses of all sizes. Whether you’re curious about how to get started, what types of contracts exist, or how small businesses can compete, this guide answers the pressing question “What is government contracting?” as well as some of the most common questions about government contracting and what it takes to succeed in the federal marketplace.

 

From bidding basics to certifications and contract types, understanding the fundamentals can help you avoid common pitfalls and position your business for long-term success. Below, we break down the key concepts and provide clear, practical answers to help you navigate the world of government contracting with confidence.

 

What Is Government Contracting?

Let’s dive right in and talk about the basic idea of government contracting. The United States federal government purchases all of its goods and services from the private sector. This includes everything from disaster relief supplies to copy paper to computers to tanks and military aircraft.

 

Government contracting not only helps provide the goods and services needed to serve the American people, but it also acts as an investment in U.S. businesses, helping to strengthen the economy.

 

Each government agency needs products and services, and each agency employs contracting officers, or procurement agents, to handle the contracting process. Potential contractors must follow a myriad of rules and regulations to bid and fulfill contracts.

 

Can Anyone Bid On Government Contracts?

In theory, yes — any legally registered business can bid on government contracts. However, there are certain requirements you’ll need to meet first. Most federal contracts require businesses to be registered in SAM.gov (the System for Award Management), have a valid UEI number (Unique Entity Identifier), and be able to meet the contract’s specific qualifications, such as experience, financial stability, or technical capabilities.

 

For small businesses, there are even special opportunities, like set-aside contracts, but you’ll need to qualify under SBA (Small Business Administration) size standards and, in some cases, be certified (e.g., 8a certification, WOSB, HUBZone). While the government marketplace is open, being truly competitive requires preparation, compliance, and a clear understanding of how the procurement and bidding process works. For the next few questions, we will discuss some of the terms mentioned in this section.

 

What Is SAM Registration?

SAM is the database that contains information about every government contractor, and you must have an active SAM registration to bid on government contracts. SAM registration is the process of applying for approval to work as a government contractor. The government does not charge any fee to register in SAM, but the registration process is quite complicated and often frustrating.

 

At Federal Contractor Registry, we can complete your SAM registration quickly and 100% accurately, saving you as much as 10-12 hours, which is how long the process often takes, especially for those unfamiliar with contracting and government procurement.

 

We also can provide you with SAM renewal services, and you must renew your account every year. If your account becomes inactive, you are no longer eligible to bid on contracts. Because it can take time for your renewal to be approved, we recommend that you contact us for this service at least six weeks before your SAM expiration date.

 

What Is The UEI Number?

The government asks for a lot of information when you register with SAM, and one item they need is your Unique Entity Identifier. In the past, the government requested your Data Universal Numbering System (DUNS) number, but that has been phased out.

 

The UEI can be acquired at SAM.gov, but again, this process can be time-consuming and frustrating. If you contact our team, we will obtain the UEI number for you as part of our SAM registration services. If you already have a SAM account, active or inactive, the government automatically will have assigned you a UEI, so this step can be skipped for renewals.

 

What About SBA Government Contracting?

In a section above, we talked about SBA set-aside contracting programs for qualifying small businesses, but what is a small business set aside, and should you apply? The government sets aside a portion of contracts solely for small business owners, and these are known informally as set-asides.

 

There are several types, including the 8(a) Business Development Program (aka 8a certification), the Woman-Owned Small Business (WOSB) set-aside, the Service-Disabled, Veteran-Owned  Small Business (SDVOSB) set-aside, HUBZone certification and more.

 

A HUBZone is a historically underutilized zone. These zones often are found in economically challenged urban areas as well as rural areas, where businesses often struggle. The businesses must be at least 51% owned and operated by U.S. citizens, a Community Development Corporation, an agricultural cooperative, a Native Hawaiian organization, or a Native American tribe. In some cases, areas affected by extreme natural disasters also qualify as temporary HUBZones to help rebuild businesses in the area.

 

At Federal Contractor Registry, we can determine if your business qualifies for any set-asides and help you sign up with the Small Business Administration and apply for these set-asides. This step is included in our SAM registration fees for applicable small businesses.

 

How Can I Find Government Contracts?

Once your SAM registration is approved, you will be assigned a Commercial and Government Entity (CAGE) code. Once you have your CAGE code and an active account, you can begin bidding on contracts, but where can you find these contracting opportunities? Here are a few places to search:

 

  1. SAM.Gov

The official site for all federal contract opportunities over $25,000. Create an account and set up saved searches based on your industry.

 

  1. Sign up for SubNet

This is an SBA database for subcontracting opportunities with prime contractors. Subcontracting is an excellent option for small businesses or any business just starting out with government contracting jobs. The prime contract handles all the back-and-forth with the government agency; you gain valuable knowledge and experience.

 

  1. Check Agency-Specific Sites

Some agencies, such as the Department of Defense (DoD) and the Department of Homeland Security (DHS), have their own procurement portals with unique opportunities. As a side note, you do not necessarily need security clearance to bid on DoD contracts or DHS contracts. For instance, if you are providing office supplies or office furnishings, security clearance won’t be a factor.

 

  1. Set Up Automated Alerts

Configure email notifications for contracts matching your NAICS codes and capabilities. NAICS stands for North American Industry Classification System, and these codes describe your exact goods and services. You can find your codes at Census.gov, or we can find them for you during the SAM registration process.

 

  1. Research State & Local Government Sites

It’s not all about fed contracts! Most states, counties, and cities have dedicated procurement portals for non-federal opportunities. Working with a state or county agency can be a great option to consider, and there’s often less competition for these contracts than with federal agencies.

 

  1. Attend Procurement Events

Many agencies, including state and local agencies, will offer workshops and industry days. These may provide advance notice of upcoming contracts as well as provide valuable information about the bidding process, Federal Acquisition Regulations (FARs), and contracting in general.

 

In general, whether you opt for federal contracting or state/local contracts, you will want to look for government contract jobs that match your capabilities and past performance. It’s usually best to start with smaller opportunities to build past performance before pursuing larger contracts.

 

Get Started With SAM Registration!

We hope this has helped you understand a bit more about what is government contracting. Our website blog contains further information about many other pertinent contracting topics, so be sure to check it out. If you are ready to dive into the world of contracting and would like us to handle your SAM registration, simply click on the green New Registration tab on our homepage and fill out our quick contact form.

What Is Government Contracting? Is It Right For You?

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No matter what type of goods or services your business provides, your company could be a good fit for government contracting. But what is government contracting and what does it entail? We’ve created a short overview to give you a general idea of government contracting and how it can benefit your business.

 

There are more than 400 federal government agencies in the United States, and all of these agencies receive the bulk of their goods and services from the private sector. Every agency has contracting officers known as procurement agents and these individuals are responsible for purchasing whatever good or service their agency needs.

 

Unlike in the private sector, where goods and services can be purchased as needed and often fairly quickly, government contracts are more formal, and it tends to take much longer for the government to award these contracts. This time constraint might seem discouraging, but, keep in mind, the government operates using our tax dollars, so it’s crucial that they follow procedures and select vendors wisely.

 

The First Step – SAM Registration

The System for Award Management (SAM) is a database run by the Federal Service Desk and this database includes information regarding all government contractors. You must have an active listing in this database in order to do business with any federal agency. We can help you with this part of the process, but first let’s take a look at what types of businesses are the best fit for government contracting.

 

Should You Bid On Government Contracts?

Before you dive into the world of government contracting, it is wise to see if there is a need for your products or services. To get a quick idea, head to SAM.gov and search for the Contract Opportunities tab. Then click on the Advanced Search tab and use the Product or Service Code search bar and enter your North American Industry Classification System (NAICS) codes. If you don’t know your codes, you can find them at Census.gov.

 

For instance, if you are a painting contractor, your NAICS code would be 23832. A quick recent search at SAM.gov shows more than 70 potential contracts from agencies including the Department of Defense, the Department of the Interior, the Federal Aviation Administration, the U.S. Forest Service and many others. While these might not all be convenient to your location, it illustrates that there is a need for your services.

 

Keep in mind, in addition to federal contracting jobs, you also can bid on state contracting jobs, and these can be just as lucrative as federal contractor jobs. You also can bid on contracts in other states, so if you are near a state border or can provide goods or services to multiple states, this might be a good option.

 

Types of Government Contracts

Here are a few of the types of contracts issued by the U.S. federal government. Keep in mind, there are other contract opportunities, such as sole-source contracts and GSA schedules (also known as GSA contracts).

 

Fixed-Price Contracts – The government pays an agreed-upon amount, regardless of the contractor’s costs. This places maximum risk on the contractor to control costs.

Cost-Reimbursement Contracts – The government reimburses the contractor for allowable costs incurred. The contractor has less financial risk but the government pays more if costs escalate.

 

Incentive Contracts – The contractor is reimbursed for costs and receives additional payment (incentive) for meeting/exceeding targets like quality, schedule, cost savings, etc.

 

Time and Materials Contracts – The contractor is paid for labor hours expended and materials used. Widely used but less favored due to less cost control.

 

Indefinite Delivery Contracts – Provide an indefinite quantity of supplies/services during a fixed period. Orders are placed against the contract on an as-needed basis.

 

Federal Supply Schedule Contracts – Provide access to pre-negotiated contracts with firms to provide commonly-used supplies/services at discounted pricing.

 

Blanket Purchase Agreements – Simplify ordering from Federal Supply Schedule contractors when there is a recurring need for supplies or services.

 

The type of federal contract depends on factors like the project scope, complexity, performance risks, and degree of price competition. Most federal government contracts contain elements of more than one contract type.

 

If you are a small business, you also could get started as a government contractor by working as a subcontractor. The prime contractor handles all of the back and forth with contracting officers, but you gain experience and begin building a contracting resume.

 

Small businesses also should sign up with the Small Business Administration (SBA) and take advantage of this agency’s many helpful programs. In addition to SBA loans and business mentoring, the SBA has many certifications that can make it easier to compete for and win government contracts. These include 8a certification, HUBZone certification and designations such as a Woman-Owned Small Business (WOSB). The SBA also runs SubNet, which is the government database for subcontracting opportunities.

 

Get Started With SAM Registration

SAM registration is a complicated process that can take many hours. In fact, it can take 10 or more hours, to wade through complicated government-speak such as federal acquisition regulations, etc. If you find yourself becoming frustrated with the process or simply want to hand over the work to a SAM specialist, the team at Federal Contractor Registry is here to help.

 

While the government does not charge for SAM registration, many people opt to pay a third-party registration service to avoid the hassle and difficulty of the registration process, much like you would hire an accountant to complete your taxes. We can complete our SAM registration or SAM renewal quickly and 100% accurately.

 

We also will help you sign up with the SBA, if applicable. We also will help you attain your Unique Entity Identifier (UEI) and help with the notarized letter requirement. These latter two issues are relatively new in the world of SAM and can be a bit confusing, but we can help make this process much easier.

 

Hopefully, this blog has provided some answers to the questions regarding what is government contracting. If you would like to use our services for SAM registration, just head to our homepage and click on the New Registration tab. We will gather some crucial information about your business and get started on your registration as quickly as possible.