How To Become A Federal Contractor?

What Is A Federal Government Contract?

According to the Department of Labor, a Federal contract is an agreement between a government agency and any person for the transaction of goods or services.
Now that we know what the profile of a federal contractor looks like, understand that it can expand the sheer count of opportunities available to your business. But as it helps your company grow, it will consume your resources (both in terms of materials and time) substantially, at least in the beginning.
Hence, do evaluate the depth of your business and see whether you have what is necessary to win a government contract. In other words, you’ll have to be selling what the government is buying and that too, at a competitive price.

How Can You Become A Federal Contractor?

There can be various reasons why you’d wish to become a federal contractor. Maybe you’ve just started a business, or perhaps you have an existing business and want to transition into something fresh with the government. Again, it’s possible that you already have a successful business in the private sector, and now you want to get into government contracting.
If this is you, then you’re at the right place. Let’s take a look at what it takes to become a federal contractor.

Develop The Right Mindset

Regardless of your current position, and what others tell you, getting a government contract is always possible. The key is in approaching the task with the right mind frame.

Gauge Your Capacity

When you start out, you’ll probably have to bid smaller contracts for things you can handle and to get it rolling. This is not a get-rich-quick scheme. While it’s possible to make millions within very few years, it’s not the norm.
It’s crucial to gauge your capacity to work and the experience you already have. You won’t get a six-figure contract if you have zero experience. Hence, it’s imperative to manage one’s expectations.

Take A Long, Hard Look At Your Business Foundation

Thousands of people want to get into government contracting, but all they have is a sole proprietor business, or maybe just a DBA. And that’s a problem. You need to have something close to an entity structure like an LLC, LP, or corporation, and that’s because the government wants to come into the business with a viable company.

Get Registered

Before you find a government contract to bid, there’s one major step that you can’t bypass. And that’s getting registered in the government systems. To become a qualified bidder, you have to get registered. Here are the steps required for registering your company.

• Get hold of your NAICS classification: The federal government uses the NAICS (North American Industry Classification System) to rank the US businesses to collect statistical data on the economy. These very codes are used to classify contracts.
• Collect Business info: Next, you have to collect all the useful information about your business in addition to the NAICS codes. This includes SIC (Standard Industrial Classification) codes and tax ID numbers for your business. Other codes like product service codes and federal supply codes may also come in handy if you have them but are not necessary.
• Get a DUNS number: This is a unique 9-digit number issued by Dun & Bradstreet that the federal government uses to identify contractors.
• Sign Up With SAM: System Award Management or SAM is the main database you will be using for general business with the federal government and to manage contracts.

Get Certified

Now, not everyone qualifies for certifications, but if you do, ensure that you apply for every certification you qualify for. Another thing to keep in mind here is that these certifications are not professional licenses and don’t immediately make you federal contractors.
These are certifications you get when working with the government, like the SDVOB, WBE, or DBE. If you qualify for any of these, make sure you apply. So, here’s what you’ll have to do to be a certified small business:

• Begin early because the process may take months to wind up, and you’ll have to spend tens of thousands of dollars to get your first federal government contract.
• Review the qualifications required for the certifications as each will have its own requirements.
• Evaluate whether your business really benefits from the set-aside rules and limitations of the SBA.
• Finally, apply for certifications. If you have reasons to believe that your business qualifies for more specific programs, then you’ll have to complete an application with the SBA to get started with the process. Make copies of everything you send to the officials and contact them immediately if any of the information needs changing.
• To be certified, your business will need to have fewer than a specific number of employees, and that number varies with every industry.

Set Up Formation Documents

It’s great that you have established your own company and have an entity structure like an LLC, but now it’s time to set up your formation documents because you’ll need them to apply for the certifications mentioned above.

Marketing To The Government

Missing out on this is the biggest mistake you’ll make in your journey to become a federal contractor. You can’t just go from qualifying to work to bidding. Once you get registered, you have to apply for certifications for what you qualify, and then go on to market your business in the government sector.
How do you do that? You connect with prime contractors, establish contact with the buyers, go to conferences, matchmaking events, industry days, briefing meetings, trade shows, and whatnot. It’s imperative to first establish visibility, and then let them know who you are, what you do, and what you can do.
Once you have your marketing done right, remember that time is of the essence and you must not wait for any contracts that you can’t win.

Start Bidding

The first bid is always the most memorable and while it may take some time, you will win a contract, and with that will be the task of managing the awarded contract correctly and delivering it successfully.
Here’s what you’ll have to do to find government contracts to bid on:

• Visit the FedBizOpps website and look for the listed contracting opportunities.
  
• If you’re waiting on the small business certification, you may want to feel the weather out there by first bidding for a few local or state contracts.

If you’re looking to work with a particular government department or agency, you may want to learn more about its operations and budget allocation. This will give you a good idea of what you can expect if your bid is accepted.