Billions of dollars’ worth of goods and services are purchased
by the government each year. A big portion of these purchases come from
transactions with small businesses. In fact, the government has funds set aside
specifically for small businesses. Since these government funds are regulated
there is a different demand and therefore requires a different go-to-market
approach than does the commercial sector. The process for registration to do
business with the government is a daunting task that has several requirements,
but here are five steps that can get you started as a government contractor.
Step 1- Register as
a Government Contractor: Fortunately, the certification process is fairly
simple. First, your business must qualify to sell to the government as a “small
business”. Check with the SBA to see if your business meets the size
requirements for a small business. Once you qualify then you must apply for a
D-U-N-S number and register your business in the System for Award Management
(SAM) database. The SAM database lists all businesses in which the government can
search for services and products and the companies that sell them. You must be
registered in SAM before you can sell anything to the Federal Government.
Step 2- Get a
Contract Vehicle: Contract vehicles are government contracts that are
put in place before any individual transactions occur between the government
and your business. These agreements are pre-authorization forms that lets the
government purchaser know that you are an approved supplier and outlines an
agreed upon pricing for your products and services. You also have the option of
becoming a sub-contractor. As a sub-contractor you partner with a prime
contractor who already holds a government contract vehicle. Contact the SBA for
more information on becoming a government sub-contractor.
Step 3- Get Expert
Advice from SBA Procurement Reps: The SBA offers numerous resources
online and in the community to help you prepare to do business with the
government and to guide you through the process of government contracting.
Procurement Center Representatives (PCRs) provide services such as training,
counseling, and business matchmaking events. Online courses are also provided
for businesses who are interested in doing business with the government. Other
SBA support services include small business assistance programs, opportunities
and resources as well as support groups for women- and veteran-owned
businesses, disadvantaged businesses, and those located in economically
distressed areas. To find a local PCR refer to the following link:
http://www.sba.gov/content/government-contracting-field-staff-directory
Step 4- Identify Your
Target Market: The public sector is highly competitive which makes it
hard for new businesses to enter. Finding a niche and identifying your target
market is critical to success. The agencies and departments of the government
have different goals and it is important that you research these specific goals
and find the ones that could be a potential fit for your business. Fortunately,
the information you need (i.e. goals, missions, budgets) to find your target
group is available to the public. This is just one step into entering the
market. You must also get out and network through industry events hosted by
media organizations and private sector contractors. Make sure that you have
reference customers lined up to provide to potential agencies. This will help
support your proof of performance as a trusted supplier in the marketplace.
Check out websites such as USA.gov, USAspending.gov or FedBizOpps.gov to find
information on agency profiles, government spending, and current opportunities.
Step 5- Get
Bidding: Once you have completed all the above mentioned steps you are
ready to start researching government opportunities. Bid announcements are listed
on FedBizOpps.gov. You will also find information about the bid process on the SBA.gov
website.