In 2018, the United States government has spent 265.5 billion dollars in contractual services. As a business owner, you may think only large companies land the big contracts. But, that’s far from the truth.
You can score these contracts with the right plan. Not sure how to get government contracts today? We’ll discuss 5 must follow steps to land the right contract to take your business to the next level.
How to Get Government Contracts Guide
Preparing your business for government contracting might seem unattainable for a small business. Yet, landing government contracts has never been easier than it is today. It’s important to understand how government contracts work and follow the process down to the T.
If you don’t follow the process, you risk losing your opportunity at government contracting. Here is your must follow guide to government contracting for businesses big and small:
1. Learn About the Types of Contracts Available for Your Business
You might be asking yourself how to get government contracts for small business. First, it’s important to learn the types of contracts available. Some of the contracts available are competitive set-aside and sole-source set-aside contracts.
The first refers to contracts that several companies could perform. Sole-source set-aside contracts are more competitive because only one company can meet the contract requirements.
2. Determine Your Business Classification
Before bidding on any contracts, it’s essential to know your business classification. These are specific to each industry. Does the government consider your company a small business?
You can find your business classification by using the Small Business Administration online tool or visiting one of their offices. In order to classify your business, you’ll need your business NAICS and most recent annual revenue.
3. Register Your Company at the System for Award Management
Before applying to a contract, you must register your business on the System for Award Management. You’ll need to submit information about your company such as Duns & Bradstreet Number, NAICS code, bank account information, Taxpayer Identification Number (TIN), among other details.
4. Decide If You Will Place Your Bids as a Subcontractor or Prime Contractor
Many businesses decide to place their bids as a subcontractor if they can only perform certain services. In this case, a prime contractor will pay your company. The government won’t be hiring your business.
When a business places their bids as a prime contractor, the government contracts their services. The government will hire and pay for the completion of the project.
5. Find the Right Contract and Start Bidding
To find the right contract for your business, you can use our quick search for opportunities worldwide. After finding the right project, you should prepare your bid.
Remember to budget the project accordingly, you want to land the contract without losing money. Once you prepare your bid, just submit it to the agency. Keep repeating the process until you score that big project to skyrocket your business.
Understanding how to get government contracts isn’t difficult. Many business owners don’t even try submitting proposals for these projects. They think these contracts are unattainable.
Yet, using the right strategy and tools your company can score one of the big fish. Remember to prepare your business before submitting a proposal. Make sure your business can handle the project.
Want to learn the benefits of scoring government contracts? Read our article to learn more.