How to Win US Federal Government Contracts

Opportunities for Small Businesses, Consultants and Contractors

Apr 30, 2009 Sulemana Braimah

Wining a US Federal government contract can be financially rewarding. For small and disadvantaged businesses, the process for wining such contracts are less complicated.

In a publication on "Contraction Opportunities" the US agency for Small Business Administration (SBA), the American federal government remains the world's largest buyer of goods and services with annual purchases totaling over $425 billion. This trend is not new. Statistics in a US Chamber of Commerce Publication "What are the Opportunities?" show that in the 2005 fiscal year, the federal government gave out 10.3 million contracts for products and services needed that year. The publication further points out that total value of contracts that year was over $400 billion. According to Chamber of Commerce publication, in the same year, government's use of credit cards also resulted in 26.5million transactions valued at $16.4 billion. These figures show that one of the best ways small firms in America can grow is for them to have the federal government as a customer.

Opportunities for Small Businesses

The SBA's Contracting Opportunities document points out that there are great opportunities for small businesses, women-owned businesses and other disadvantaged businesses to win more federal contracts. "The federal government especially encourages small businesses to bid on contracts for the supply of goods and services," the SBA states.

Opportunities for the growth of disadvantaged firms continue to increase year by year. Figures show that in 2005, about 10 million contracts were reserved for small companies. This was mainly due to the fact that contracts that are in the range of $2,500 to $100,000 are usually reserved for smaller contracting firms.

According to current SBA figures, about 23 percent of government buying is targeted at small firms. "Selling to government provides significant revenue for business growth," says the SBA.

Tips for Winning Federal Contracts Among Small Businesses

With the current enhanced business opportunities for small firms, consultants and contractors, what matters is knowing how to bid for and win that government contract. Writing on "How to Win Government Contracts" in the August 8, 2003 edition of the Entrepreneur, former Congresswoman, Nydia M. Velázquez (D-NY) who was named Ranking Democratic Member of the House Small Business Committee by her colleagues in 1998, offered the following essential tips on how to win governernment contracts:

• Decide what to sell to the federal government. The first step towards having the federal government as a customer is by knowing what product or service a federal agency needs and deciding to offer that product or service. This can be done by consulting with an SBA Procurement Center Representative (PCR) for help.
• Contact the small-business specialist. Each federal agency has a small business specialist. Meeting with the specialist can facilitate the process of getting a federal job.
• During the meeting with the specialist, the aim should not be selling a product to him or her directly but for him to help put up the small business contractor with the right person within the federal agency who will be doing the actual buying. Any demonstration of aggression can be perceived negatively and so the bidding firm must its keep cool during the meeting with the specialist.
• Offer an opportunity for the product or service to be tried. A demo can also be done for the prospective buying agency.
• It is always good to be a registered member of the Central Contractor Registration.
• Winning a government contract is not just based on being a disadvantaged firm but on the demonstrated capacity to do a quality job as well as the competitiveness pricing as a small business

There are now several opportunities for small businesses, women-owned businesses and disadvantaged businesses to grow through government contracts but such businesses should first know what product or service they can sell and to agencies that need them. When this is identified, then the appropriate steps can be taken to win the contract.

The copyright of the article How to Win US Federal Government Contracts in Small/Home Business is owned by Sulemana Braimah. Permission to republish How to Win US Federal Government Contracts in print or online must be granted by the author in writing.

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Comments

Jun 17, 2009 3:36 AM

Guest :

Just wanted to add a small tip on creating a recession proof career. It would be a good idea to plan out your career or business by considering government contracting. This is a very lucrative financial opportunity that can help you stabilize financially and increase your income flow if it is done the right way.

If this is something that you are interested in to put an end to your financial worries, get yourself registered with the Central Contractor Registry which is a federal clearing house for vendors and small businesses too. Also identify a product or service that you can supply to the government and which the government needs in order to get a contract.

You can win such billion dollar contracts and secure your career or business better even during this phase of recession.

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