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To compete for the often lucrative contracts with the U.S. government, you lot must complete several steps to make your business eligible. — 10255185_880/Getty Images

The U.S. regime is the largest purchaser of appurtenances and services in the globe, application hundreds of billions of dollars in federal contracts each year. Reverse to popular conventionalities, these contracts oftentimes go to small-scale businesses. The government is not but legally required to consider bids by small businesses, but it also has set up a goal to award at least 23% of all federal contracts to smaller ventures.

If you're interested in competing for some of these often lucrative contracts, follow these steps to set your business to bid on a government contract.

[Read more: How to Boost Your Minor Business past Condign a Government Contractor]

Assess your business readiness

There's no question that competition for government contracts is quite steep. Before you get too far into the bidding process, brand sure this is the correct option for your business organization.

The General Services Assistants (GSA) has institute that businesses with the following avails tend to take higher chances of winning a government contract:

  • Businesses with two years of feel working with federal contracts, either every bit a prime or subcontractor.
  • Businesses that have contacts and relationships within the federal contracting community.
  • Concern owners who work with a mentor who is a successful GSA contractor.
  • Businesses that nourish GSA seminars and workshops on contracting.
  • Businesses that invest betwixt $80K—$130K to detect and manage the initial regime contract.

The GSA has a readiness assessment that can show you where your strengths and weaknesses prevarication before you spend time and coin behest on government contracts.

Observe your NAICS code and business size

Government contracts will ask that you submit your North American Industry Classification System (NAICS) code every bit office of your awarding. This code is used by the federal regime to classify businesses for statistical purposes related to the U.S. business economic system.

The NAICS Clan website offers a free search tool that can assist you figure out what NAICS codes apply to your business. Codes are categorized past what your concern offers. For example, the NAICS code 611430 applies to businesses that provide professional person and management development training. Information technology tin take a piddling fleck of work to find the right code for your business: some entrepreneurs prefer using the U.s.a. Census Bureau code lookup tool to find the best code.

Once you have your code, bank check the SBA website to determine the small business size standard that applies to your specific NAICS lawmaking. Each industry has different standards for what qualifies as "pocket-sized." For instance, NAICS code 611430 shows that businesses must have sales below $seven one thousand thousand annually to exist considered a small business. This will accept relevance every bit you decide which contracts to bid on, as some contracts are merely open to small businesses by the SBA/NAICS code definition.

There are a number of places to monitor for contract opportunities every bit the government releases requests for proposals.

Where to look for federal contracts

In that location are a number of places to monitor for contract opportunities equally the government releases requests for proposals. Use these resources to meet the government contracts on which your visitor could bid.

  • The Contract Opportunities Search Tool on beta.SAM.gov: This is the official database of federal contracting opportunities. Yous will need to create a profile to bid on contracts through this portal: accept your DUNS number fix as well equally your NAICS codes.
  • The Dynamic Modest Business concern Search (DSBS): This is a database that government agencies utilize to find minor business organization contractors for upcoming contracts. It'due south maintained by the SBA. You can likewise use the DSBS to find a small business with which to partner.
  • FedBizOpps.gov: This website is where government agencies are required to annunciate all contracts over $25,000.
  • The GSA Schedules Program: This program connects government buyers with contractors. When y'all "become on the GSA schedule," information technology ways y'all've been canonical to do business organisation with the authorities.
  • SubNet: This is a database of subcontracting opportunities, where a large enterprise looks to partner with a pocket-sized business organization on a government contract. This could be a good option if y'all've never worked on a authorities contract earlier and want an enterprise with experience to show you the ropes.

Browsing these platforms and databases will give you a good sense of what opportunities are out in that location. Equally part of your research, information technology's too a good idea to check the need for your product or service within the authorities. "Determine demand for your products or service with the Contract Opportunities Search Tool on beta.SAM.gov or the GSA Forecast of Contracting Opportunities Tool. And use the Contract-Awarded Labor Category (CALC) site to become an idea of hourly labor rates in federal contracts," recommended USA.gov.

[Read more: How to Register Your Business With the Federal Government]

CO— aims to bring yous inspiration from leading respected experts. However, before making any concern decision, you lot should consult a professional who can advise yous based on your individual situation.

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Published August 31, 2020