Many U.S. companies become government contractors to make money.In almost every field and industry, governments buy goods and services from contractors.You have to register to become a government contractor.It is possible to have your business certified as a small business, which will open the door to more opportunities.
Step 1: Find the NAICS classification.
The NAICS is used by the federal government to gather statistics on the U.S. economy.The codes are used to classify contracts.The NAICS manual is available at thecensus.gov.It can be used to find the code for your business.
Step 2: Information about your business will be gathered.
You'll need to register as a federal contractor if you have other codes and numbers related to your business.The federal tax ID number of your business is required.You may have more than one code, such as a federal supply code.If you do have them, they may come in handy.
Step 3: You can get a DUNS number.
The Dun & Bradstreet number is used by the federal government to identify contractors.If you are a government contractor, you can get a number for free.The process can be started by visiting http://www.dnb.com/us and completing the online form.Within 48 hours, your number will be issued.
Step 4: You can create an account with SAM.
You'll use SAM to manage your government contracts and do business with the federal government.You have to register here before you can accept government contracts.Visit the SAM website to get started.Register your business after you create your user account.If you have more than one business, register them separately.Information about your business should be included as well.Government agencies can find you if you use SAM as a marketing tool.Agencies search by size, location, ownership, and other factors.
Step 5: Begin as quickly as possible.
The certification process can take a long time.Your business may end up spending tens of thousands of dollars just to get your first government contract.You will be eligible for smaller government contracts that are set aside for specific types of small businesses once you're certified.
Step 6: The qualifications for certification are reviewed.
Each of the three areas has its own requirements for being certified by the SBA.You can qualify under more than one area.If you own a woman-owned business, have a business in certain urban or rural areas, or have an extremely small business that is disadvantaged, you can be certified.You can find out if any of the certifications apply to your business by visiting the SBA website.
Step 7: The set-aside rules and limitations should be evaluated.
Before you go through the process of being certified as a small business for government contracting purposes, you need to make sure your business can benefit from set-asides.If you don't see any benefit to your business in getting the certification, there's no point in doing it.SAM allows you to self-certify in certain areas, such as the size of your business or whether you are a veteran-owned business.
Step 8: If you want to apply for certification, you need to do so.
Complete an application with the SBA to begin the certification process if you believe your business qualifies for one of the more specific set-aside programs.You may be contacted by an SBA official.Make copies of everything you send to the SBA so you have it for your business's records, and keep all of your certification materials in one place.Contact the SBA as soon as possible to amend your application if the information changes while your certification is still being processed.
Step 9: The size standards tool can be used.
Many contracts for small businesses require your business to have less than a certain number of employees.It depends on what industry your business is in.The NAICS is used by the SBA to set size standards.You can get the NAICS classification codes for your business.The SBA has a size standards tool that you can use to type your code.
Step 10: Search online for federal contracts.
There are open contracting opportunities listed on the FedBizOpps website.The GSA is the federal agency that oversees all contracts and government procurement.
Step 11: Smaller state and local contracts can be checked.
If you're waiting for small-business certification, you may want to get your feet wet by bidding for a few state or local contracts.Each state has its own process to register.The information you need to get started shouldn't be different from what you have to register as a federal contractor.You can find the registration requirements and open contracts in your state by visiting the website of the Secretary of State.
Step 12: Research government agencies.
Understand the budget and operations of the agency you want to contract with.This will give you an idea of how much you should bid for a contract.If your bid is accepted, you will find up to date information on regulations and safety standards that may apply to your business.
Step 13: There is a network within government contracting.
You would like to cultivate the government as a client.Get to know people in departments.Talking to people in government agencies can give you a better idea of what the agency needs.
Step 14: Attend the agency events.
Conventions, workshops, and other events hosted by the SBA and government contracting agencies allow contractors to better connect with staff in different government agencies.You can attend events hosted by companies in the private sector.Government procurement experts attend a lot of private networking opportunities.
Step 15: Seek a mentor.
If you're a small-business owner just getting started as a government contractor, you may want to take part in one of the two mentor programs sponsored by the federal government.The mentor program connects you with a larger and more experienced government contractor.They help you navigate the bidding process so you can win your first government contract.If you were certified as a socially or economically disadvantaged business under the SBA's 8(a) program, you can use a mentor program to connect you with a successful federal contractor.
Step 16: Train your team.
If you work on a federal contract, your business and your team may be subject to federal laws and regulations that wouldn't have applied to your operations otherwise.There aren't any problems if your team is up to date on these requirements.Before a contractor can start work on a contract, they must complete a mandated training process.Even if training isn't required for your employees, there will still be specific regulations and policies they need to know about.
Step 17: Market towards government agencies.
You are advertising your company when you respond to bids.Put your research to work by drafting proposals that clearly identify the needs of the government agency and how your business is best-situated to meet those needs at the best price.Looking at previous successful proposals can give you a good idea of how to structure your proposal.Talk to your mentor about marketing to specific agencies.If you don't have a formal mentor relationship, experienced contractors will be willing to share their knowledge with you.