.
.
.
.
Are you ready to sell to the Federal Government?
This article from Forbes.com is a perfect introduction for anyone considering federal contracting. It was written by Elaine Pofeldt for Forbes.com
The Secret to Winning Government Contracts Isn't What You Think
(Full article link)
Government contracts may be lucrative for big companies, but for many small businesses, they're not. That's because few small firms win them at all. Only 22.5% of federal contracts go to small businesses and a dismal 4% are awarded to firms owned by women, according to statistics from the U.S. Small Business Administration (SBA) from 2012.
That doesn't mean these deals are not worth going after. They can be very lucrative--or you wouldn't see so many big companies going after them. For women entrepreneurs, winning such contracts is a well-tested way to create a high-growth business, according to research by American Express
What separates the small firms that win government contracts from the ones who don't? Recently I had a chance to speak with Julie Weeks, president and CEO of Womenable, a research advisor to American Express OPEN. Here are some tips for would-be contractors that may help you if you're hoping to land a big government agency for a client.
Prepare to invest. Winning a government contract takes more prep work than you may think. Women-owned firms that succeed in winning contracts devote an average of $112,000 in time and money preparing to go after them, according to Weeks. For male-owned firms, the investment is even higher: about $137,000. Of course, this is all relative. If you're chasing a big contract that you win, whatever you spend could pay for itself several times over.
Tailor your services. Federal agencies don't limit their purchases to things like airplane parts. However, it's not always easy to sell what you offer, whether that is meeting planning services or a book you published. Success contractors adapt what they sell to federal requirements."You have to be selling what a federal agency is buying," says Weeks. "Not all businesses are the right kind to be selling to a federal agency."
Find a mentor. Try attending networking events and information sessions for contractors that government agencies hold, so you don't have to wade through all of the fine print on your own. "When you don’t know someone who has been in federal contacting, it's much harder to figure out if there’s something for you," says Weeks. The SBA offers a program for women entrepreneurs called ChallengeHer that will be holding events across the country this year. The SBA is collaborating with Women Impacting Public Policy, which has pushed for greater acces to government contracts for women entrepeneurs, and American Express OPEN.
Diversify your clients. Among small businesses that are active federal contractors, 19% of revenue comes from federal government contracts, on average, while 14% comes from state and local contracts. One reason to vary your clients is it insulates you against cutbacks in any one agency.
Try again. When asked how frequently they had bid on a prime contract or subcontract over the last three years, women business owners who had won active contracts had put in five prime contract bids and three subcontract bids.
Request an appointment today with the Federal Contracting Center to determine how to take avantage of this $500 million market.
All services are free of charge
.
.
.
.
.
Your 8 steps to Federal Contracting
The US government is the world's largest buyer of goods and services, spending hundreds of billions of dollars each year with both large and small businesses. Getting your company on the list of preferred vendors for federal contract consideration involves research and work. However, your efforts may be rewarded with potentially very profitable contracts. Even if you are a small business, you can still be a big player in this game. In fact, the federal government sets aside 23% of government spending for small companies.
The following 8 steps will get you closer to your goal. Start today for a new world of opportunities!
1. Determine if the Federal Government buys what you sell – Chances are they do
Have you ever wondered what the government buys, to whom, how, when and where? The Federal Procurement Data System will provide answers to these questions. Agencies will report on all contract actions using appropriated funds as specified in FAR 4.6. Go to www.fpds.gov to conduct some federal market research.
2. Identify Active Federal Business Opportunities
The Government purchases just about any type of service and product. Visit www.fbo.gov for daily opportunities over $25,000. The system is a web-based portal which allows vendors to review Federal Business Opportunities. Create a vendor profile and customize your automatic searches to receive notifications free of charge.
Also, go to www.fedbid.com, an online reverse auction procurement platform serving more than 75 Federal Agencies, for more opportunities. Vendors can get registered at no cost.
3. Identify Your Industry Codes
The North American Industry Classification Systems (NAICS) code is the primary classification system used for classifying industries and to determine the business size standard. Depending on your capabilities, you may have multiple codes. Go to http://www.census.gov/eos/www/naics to identify them.
Federal Supply Codes (FSC) or Product Service Codes (PSC) is another classification system used to identify services and products. FSC/PSC codes can be accessed at: www.acquisition.gov/PSC_Manual
4. Get Registered
- First, you need a DUNS Number to register to do business with the Federal Government. Puerto Rico firms can request it for free by visiting www.federalcontractingpr.com.
- Register in the System for Award Management (SAM) and Dynamic Small Business Search (DSBS)
Once you have obtained your DUNS number and have identified your industry codes, you will need to register in SAM - https://www.sam.gov to be able to do business with the government. There is no cost to use SAM. You can use this site for FREE to: register to do business with the U.S. government, update or renew your entity registration, check status of an entity registration, and search for entity registration and exclusion records.
- Through SAM you will be able to complete a profile in the Dynamic Small Business Search page, SBA database. Make sure you complete all sections to maximize your business profile. DSBS is used by agencies and contractors to find small businesses that can meet their contracting or subcontracting needs. DSBS - http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
5. Determine if your firm qualifies for the Small Business Certification Programs - 8(a), HUBZone, Women-Owned Small Business and Veteran-Owned / Service Disabled Small Business.
These certifications are detailed at www.sba.gov. Firms with any of these certifications may compete for set-aside contracts. FeCC Counselors are trained and have broad experience working with all SBA Certification Programs.
6. Market your Business to the Right Agencies and Contacts
- Identify your prospective government customers, research their requirements, and familiarize yourself with their mission and culture. Ask your FeCC Counselor about the local Federal Procurement Contacts Directory and visit agency’s websites.
- Develop a Capability Statement: It is highly recommended to have a current and high-pitched capability statement of your business. This single-page document should include concise information about your business experience and capacity specifically tailored to the government sector.
7. Familiarize yourself with the procurement forecasts for your targeted agencies
Each federal agency typically produces an Annual Procurement Forecast as required by the Small Business Act, which is maintained by their Office of Small and Disadvantaged Business Utilization. Go to https://www.acquisition.gov/procurement-forecasts for the most current version.
8. Get Help
FeCC counselors will help you every step of the way.
Request an appointment today with the Federal Contracting Center to determine how to take avantage of this $500 million market.
All services are free of charge
.
.
.
.
.
Bridging the Gap between you and the Federal Government
Every day the federal government publishes their business opportunities. The ones that are expected to exceed the $25,000 threshold are published daily in the Federal Business Opportunities website. Opportunities under $25,000 are posted in several other places. Over $500 billion in opportunities every year!
The Puerto Rico Federal Contracting Center (FeCC) will help you understand the government procurement process. Our counseling and training cover a wide range of government contracting topics and are provided by experts who have many years of government contracting experience.
We will help you navigate through the maze that the federal contracting process could be, giving you the tools and training that will help you succeed and be awarded contracts that will help your company grow. At FeCC you will also learn the importance of proactively building relationships with agencies and prime vendors. These relationships must be built well before the proposal phase, even years in advance of a given project.
If you are interested in taking advantage of FeCC’s services, you are strongly encouraged to contact us for an initial counseling session. This session provides comprehensive instruction on the basics of how to do business in the government marketplace and outlines some of the fundamentals to get you started. Attending this session qualifies attendees to become registered as FeCC client and benefit from our complete range of services.
Request an appointment today with the Federal Contracting Center to determine how to take avantage of this $500 million market.
All services are free of charge