If you’re a small business providing certain goods and services, government contracts are a great way to go to develop a great source of recurring revenue. The United States government is one of the largest purchasers in the world, and if you can secure a contract, you can usually rely on it for a good source of revenue. But how, exactly, do small companies get started with it?
FedBizOpps.Gov – There is a process that a business that must go through if they want to procure a government contract. The good news is that the government has a number of regulations that make sure that a certain percentage of their contracts are awarded to small businesses.
Any business that bids on government contracts has to go through a certain process. This includes properly classifying their company by the size and type of industry or business they are in. These standards are dictated by the North American Industry Classification System (NAICS) and the SBA size standard.FedBizOpps.Gov
The government agencies behind the contracts will use this information when they award a contract. Also, because many contracts are awarded to certain types of businesses, such as veteran-owned businesses, woman-owned business, service-disabled business, or HUBZone business, so it is important that you note this as well.FedBizOpps.Gov
The next step to procure gov contracts is to register with the Central Contractor Registration (CCR) database. Most government agencies use this service to learn about their potential providers. In order to register, though, a company will need to have a number of things in order, including: an NAICS code, the SBA size standard of the company, Standard Industrial Classification codes, a Federal Tax Identification Number, and a DUNS number.
Once your company is in the CCR database, you will start receiving the various opportunities to start bidding on different contracts. Some agencies may even contact you if they feel like you have the particular products or services they need. However, you shouldn’t wait for offers. You should always look for your own opportunities as well.
There are a number of resources available to help businesses to pursue those opportunities. FedBizOpps.gov is a good example. This is where you can find projects that are worth more than $25,000. This is a good site to frequent, and you will likely find the contracts that are right for your company. Some agencies will also list many smaller projects on Bid Boards or on their websites. These are also good places to look for some starter contracts.FedBizOpps.Gov
Another way to get involved with various bidding opportunities is to become a GSA Schedule Contractor. Sometimes the government will purchase products exclusively through the GSA, so this is a good place for many companies to get started. Just stay organized and stay focused and you’ll be able to keep generating a good income.
FedBizOps.Gov – When applying for government contracts it is important to have a well written RFP. Joseph has some writing experience with construction contracts, government procurement and other similar topics. For more information, see her other articles.FedBizOpps.Gov