Landing a government contract is a great way to propel your business to the next level. The United States government shells out more than $500 billion in contracts each year.
In many cases, winning a government contract leads to follow-on contracts like options. To win these highly desirable contracts, your company must meet the government’s standards and requirements.
Read on to learn more about the government’s contract process. Explore the keys to responding to a solicitation and getting government contracts.
What Types of Government Contracts Are There?
Before seeking a contract, it is important to understand the various different types. The vast majority of contracts fit into three categories; supplies, services, or research and development (R&D).
On a supplies contract, a company is required to deliver goods to the government. Common examples are military equipment, vehicles, office supplies, and trailers.
Services are a wide-ranging category that includes both blue and white-collar labor. Some examples of services include construction, IT, technical, and custodial.
What Actions Are Required Before Bidding on a Government Contract?
Preparation is key to winning a competitive bid for a government contract. There are a number of actions to complete before starting the process.
First, get a North American Industry Classification System (NAICS) code. Next, register for a 9-digit DUNS code. Your company will also need to be registered in the Central Contractor Registry (CCR).
What Is a Request for Proposal (RFP)?
The government outlines the bidding requirements in an RFP. The RFP is announced on a website called FedBizOpps.
The RFP includes a number of important government documents for your company to review. For instance, the Statement of Work (SOW) and Performance Specification are included in the RFP package.
In addition to the steps outlined in the prior section, the RFP instructions may require your company to take additional action. Your company needs to carefully read the solicitation instructions. It contains important details like delivery dates, contract clauses, and other terms and conditions.
What Resources Are Available to Help?
The Small Business Administration (SBA) is a great resource. Small businesses need to use the SBA to help win contracts. Some government contracts are set aside for small businesses.
The SBA provides counseling services and guidance to small businesses seeking work with the federal government. Perhaps most important is that the SBA can help you obtain designations that help in getting government contracts.
For instance, priority is given to small businesses that have an 8(a) or Service Disabled Veteran Owned Business (SDVOB). There are other designations geared towards small businesses with a woman or minority ownership.
A Recap to Getting Government Contracts
Landing a government contract can change everything for your business. In fact, winning the first one opens the door for more opportunities down the road.
The best advice is to carefully read all documents provided as part of the RFP package. Make certain that all government requirements are addressed in the proposal submission. If you enjoyed this article about getting government contracts, check out our blog for other great content.