Becoming a government contractor can be a lucrative avenue for small business owners, but it requires careful planning and understanding of the process. Here are some practical tips for small business owners looking to enter the world of government contracting.
- Get Started With SAM Registration
Whether you have one employee or 100,000, every potential government contractor begins their contracting journey the same way – completing their System for Award Management (SAM) registration.
While SAM registration is a required step, it’s also, unfortunately, a complicated one. The government won’t charge you a fee, but the registration process can take 10 or more hours to complete. Many business owners simply hire a third-party registration service to complete this task. This saves time and the headaches associated with SAM registration.
At Federal Contractor Registry, we complete hundreds of SAM registrations and SAM renewals every year. We work with businesses of all sizes and can quickly and 100% accurately complete your SAM registration or SAM renewal.
If your business qualifies as a small business, we can help you sign up with the Small Business Administration (SBA) and we will link your SBA account with your SAM account. We also will help you with step two – which is determining which SBA certifications might fit your business.
- Obtain Any Necessary Certifications
The SBA exists to help boost the profitability of small businesses throughout the United States and its territories. The federal government, in general, also seeks to boost small businesses so they set aside certain government contractors just for small companies. These are known as set-aside contracts.
The SBA runs multiple programs for set-aside contracts and your business might be eligible for one or more of these programs. Your company might qualify as a general small business, but you also might qualify as a Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB) or perhaps as a Woman-Owned Small Business (WOSB).
Additionally, you may qualify for certain contracts because your business and a portion of your employees reside in a Historically Underutilized Business Zone, or HUBZone. The SBA also runs the 8(a) Business Development program, which helps small, disadvantaged businesses compete in the marketplace through training, technical assistance, and government contracting opportunities.
- Research Government Contracting Opportunities
The government purchases the bulk of its goods and services from the private sector, which means that just about every imaginable industry is needed at some point by a federal agency. Whether you provide printing services, security services, paper and office supplies, food services, repair services or something else, the government likely needs your goods or services.
All government contracting jobs are listed on SAM.gov, under the Contract Opportunities section. Once you click on that tab, we suggest doing an Advanced Search and looking for contracts using your North American Industry Classification System (NAICS) codes. These codes describe the specific goods and services that your company can provide. You can find these codes at Census.gov or we can determine which codes fit your business as we complete your SAM registration.
- Network & Build Relationships
We highly recommend that you attend industry days and networking events hosted by government agencies to meet key people and learn about their needs. Building relationships with agency contracting officers can be invaluable in gaining insights into what the government needs and how you can help.
Don’t forget that state governments also need contractors, and representatives from state government agencies also often host networking events for contractors. These state contracting jobs can be just as lucrative as the federal government contractor jobs.
- Consider Subcontracting
If direct contracting seems too competitive or challenging at first, consider subcontracting with larger prime contractors. This can help you gain experience and credibility in government contracting while allowing a prime contractor to handle most of the heavy lifting, so to speak. This is a great way to build a resume as a new government contractor.
The SBA runs a database called SubNet (https://subnet.sba.gov/client/dsp_Landing.cfm), which is just for small business owners who wish to become subcontractors. This is an excellent place to search for subcontracting opportunities. As will Sam.gov, you can search using your NAICS codes as well as location, which makes it easy to find any options in your area.
- Create A Top-Notch Capability Statement
A capability statement is a resume specifically for government contracting. It contains several important sections. One section will include your “Contact Information” and another section will include “Company Data” such as your DUNS number, UEI number, CAGE code, NAICS codes, GSA Schedules and SBA certifications, such as HUBZone certification or 8a certification, etc.
You also will include a section entitled Core Competencies, which details specific skills and areas of expertise that your company can provide. This section should be concise and focused, directly aligning with the needs of the government agencies you’re targeting.
Another section, entitled Differentiators, should explain what sets your company apart from the competition. This could be unique methodologies, technologies you employ, lower costs, faster delivery times, superior customer service, or any specific advantages that make your business stand out.
Additionally, you will need a section entitled “Past Performance.” This could include a summary of previous contracts or projects that are similar to the services you are offering to the government. You’ll want to mention the clients, and briefly describe the scope of work and how you successfully met or exceeded project requirements.
Sections for “Certifications & Awards” as well as “Professional Associations & Memberships” also can be added to further lend credibility to your company profile. You will need to submit this statement with government contracts and it’s wise to have this statement listed somewhere on your company’s website. If a government procurement agency finds your company through SAM, they might check out your website and will expect to see the capability statement.
- Bid Competitively & Wisely
Bidding competitively and wisely is essential in securing government contracts. It’s not just about offering the lowest price, but rather about providing the best value for money. This includes understanding the full scope of the project, and the expected outcomes, and tailoring your bid to meet these expectations precisely.
When preparing your bid, conduct thorough research on past contracts awarded by the agency you are targeting. This research can provide insights into budget expectations and contractor performance standards. Use this information to competitively price your services without underbidding and compromising your ability to deliver quality results.
It’s also crucial to assess your company’s capacity and expertise to ensure you can realistically meet the contract requirements. Overpromising and under-delivering can damage your reputation and your chances of future government work.
Furthermore, consider the long-term benefits and potential follow-on contracts when deciding on your bid strategy. Establishing a track record of successful, value-driven deliveries can lead to more opportunities.
Each bid is a chance to build a lasting relationship with the government agency, so consider each contract as part of a broader strategy to secure ongoing work and referrals within the government sector.
Get Started With Government Contracting
While it can take some time to win your first government contract job, becoming a government contractor can be a lucrative option for many small business owners. If you are ready to get started and would like for us to complete your SAM registration, just click on the green New Registration tab on our homepage and fill out our quick contact form.