A Comprehensive Guide to Government Public Procurement
Tips for Winning Government Contracts for Small Business
More and more government contracts have been awarded to small businesses over the last few years. And with Congress being clearly on the side of small businesses and the federal government even setting up micro-contracting procedures (to facilitate smaller contracts), the prospects are rather good.
Below are tips that can increase your small business' chances of securing a government contract:
Check if you qualify as a small business.1.
First things first, incorporate your small business. The SBA's definition of "small business" is mainly based on number workers and the business' average annual sales. The North American Industry Classification System (NAICS), on the other hand, qualifies small businesses according to industry.
Build a good standing.
A small business can only be eligible for a government minority owned business government contracts if it is in good standing in the state or states where they do business. That means they should pay franchise taxes, submit accurate annual reports, update their license, and meet other compliance requirements. A non-compliant small business can lose its authority to do business in the state, which turn diminishes its chances of securing a government contract.
Register your business.
The System for Award Management (SAM) website handles the registration process for all small businesses taking a shot at a government contract. This website is not only meant to store your pertinent information as required by government agents, but it is also lets you market your business and make it stand out above the rest in your category. Also, doing business with the U.S. government requires you to have a DUNS Number, which is essentially a unique nine-digit number that serves to identify each of your business locations.
Expand your network.
Provided you have complied with all government requirements, your small business is now eligible for a government contract. The SBA website has a feature that match small business owners with suitable government contracting opportunities. The Federal Business Opportunities (FBO) website is also a great place to find business opportunities worth over $25,000, as well as to get information necessary for bidding.
Take full advantage of certain programs.
Some programs are specifically created for certain small business types, such as businesses owned by women or by veterans. The FBO website can provide all the necessary information, such as resources, regulations, systems and the others.
Many small businesses will find government contracts to be such a profitable and yet mostly untapped source of revenue. The process is not very simple and may take time, but fortunately, many resources exist to guide those who are interested in becoming government vendors. Of course, the credibility of these resources should be ascertained to avoid confusion when request for quotation.
Related information can be accessed at https://www.youtube.com/watch?v=GX3WurlW0RQ .