Small Businesses And Government Contracts
The United States government is one of the largest purchasers of goods and services in the world
. Therefore, it can be very beneficial to get the government as one of your customers, especially if you can get government contracts for recurring purchases.There is a process that you need to go through though if you are interested in supplying the government with the items that they need. The good news is that the government has set targets that at least a certain percentage of their purchases should come from small businesses.
Any business that bids on government contracts has to go through a certain process. This includes properly classifying their company by the size and type of industry or business they are in. These standards are dictated by the North American Industry Classification System (NAICS) and the SBA size standard.
The government agencies behind the contracts will use this information when they award a contract. Also, because many contracts are awarded to certain types of businesses, such as veteran-owned businesses, woman-owned business, service-disabled business, or HUBZone business, so it is important that you note this as well.
The next step, if you want to get a government contract, is to register with the Central Contractor Registration (CCR) database. This is the system most government agencies use to discover the companies that will be most likely to successfully provide them with the services or goods they need. That means the company will have to have an NAICS code, the SBA size standard for the company, the DUNS number, Standard Industrial Classification codes, and a Federal Tax Identification Number.
Once your company is in the CCR database, you will start receiving the various opportunities to start bidding on different contracts. Some agencies may even contact you if they feel like you have the particular products or services they need. However, you shouldn't wait for offers. You should always look for your own opportunities as well.
There are a number of different resources that you can use in order to do this. For example, there is a FedBizOpps.gov website where all opportunities for projects over $25,000 are listed. You can check that site to see if there are any projects you can bid on. Federal agencies also list smaller opportunities on their Bid Boards or on their websites, so it is important to check these locations as well because many of these smaller opportunities are reserved for small businesses.
Another way to get involved with various bidding opportunities is to become a GSA Schedule Contractor. Sometimes the government will purchase products exclusively through the GSA, so this is a good place for many companies to get started. Just stay organized and stay focused and you'll be able to keep generating a good income.
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