Every year, the government spends about $500 billion on contracts with businesses and individuals in the private sector. New contracts pop up all of the time and there are truly opportunities for everyone. If you’ve considered U.S. federal contractor registration, but aren’t sure how to get started, we can help.
System For Award Management Registration
In order to contract with the government, you will need procure what is known as a Commercial and Government Entity Code, or CAGE code. They only way to obtain this code is through U.S. federal contractor registration via the System for Award Management (SAM).
SAM is a huge database filled with every individual and company authorized to do business with the federal government. SAM registration is your first big step into the world of government contracting. Technically, SAM registration is free, but it can be so difficult and confusing that many people walk away from contracting, frustrated with the whole process.
That’s where we come in. As a third-party registration service, we can complete your SAM registration and renewals. We can take the guesswork out of this huge first step, which can take 10 to 15 hours or more to complete. While we do charge for our services, we find that using a third-party service saves enough time and frustration to be well worth the cost. It’s similar to hiring an accountant to handle your taxes to save yourself from the complexities of the U.S. tax codes.
After SAM, The Fun Begins . . .
SAM registration is the first hurdle, and after that you can start bidding on contracts. However, you need to think about a few things first and handle a few important tasks, including:
1. Sign Up With SBA
The Small Business Administration can be a helpful source for government contractors, providing contracting tips and other advice to help you build up your business. Does your business qualify as a small business? You might be surprised to learn about the size standards for small businesses, it’s not just for companies with 10 or fewer employees. In many cases, a company with 100 or more employees can qualify.
Why does this matter? The government sets aside a specific portion of its federal contracting budget just for small businesses. In some cases, it can be easier to earn a contract if you are a small business.
For instance, if the contract is worth $3,500 to $150,000, these contracts are automatically set-aside just for small business owners. The government also sometimes requires prime contractors to use small businesses as subcontractors, and subcontracting can be an easy and profitable way to dive into government contracting.
If you qualify, in general, as a small business because of your size, you may also qualify for other small business distinctions. For instance, if your business is 51% or more woman-owned, veteran-owned or service-disabled veteran-owned, these are special distinctions known as set-asides because a portion of the federal contracting budget is “set-aside” for these jobs and there are several other set-asides in addition to the ones mentioned above.
2. Sign Up With Your PTAC
The Association of Procurement Technical Assistance Centers was developed specifically to help small businesses with procurement. For the uninitiated, procurement is the word to describe the process by which the government purchases goods and services. There are many regional offices, known as PTACs, so just go to the APTAC website and click on the map of the United States to find your office.
3. Create Your Capability Statement
A capability statement is kind of like a resume for the government. It basically expresses your abilities and past performances. Government procurement agents will expect to see your capability statement at some point during the bidding process and you should have it readily available at all times. It’s also recommended that you create a webpage just for government contracting with a link to your capability statement.
How do you create this capability statement? This document includes a great deal of information about your company, including your core competencies and a list of previous clients. You also will want to list your CAGE code, your DUNS number, your NAICS codes and any small businesses certifications.
To learn more, do an internet search to find some examples of what these statements include and how to design them. We also found Pinterest to be a surprising source of design ideas for these statements, so don’t forget about this site.
4. Do Some Research
You already know how to market and sell to the private sector. Selling goods or services to the government is a vastly different process, although the government wants the same thing everyone wants – quality at an affordable price.
In order to bid on government contracts, you need to learn about the different types of contracting opportunities, as the bidding process for each one is unique. Our best advice is to consider attending some workshops or watching webinars regarding government contracting.
Sign up with your state’s procurement system, and not only can you bid on state contracts, you also will gain access to many resources that will help you dive into the world of government contracting. States often host workshops or events where potential government contractors can learn more about contracting and even meet face-to-face with procurement officers. These typically are inexpensive and packed with helpful information.
Take Your First Step
If you need to complete your initial U.S. federal contractor registration, but are a bit unsure about the process, give us a call at any time at (800) 985-7658 or click on the green New Registration tab on our homepage. We complete hundreds of registrations and renewals each year for small business as as well as large corporations, and we can quickly get you registered and ready to bid on those government contracts.