Think government contracts are only for the big players? What if we told you that smaller businesses actually have an edge in some cases?
Why do so many small business owners hesitate to dive into government contracting?
1. Is it because of overwhelming paperwork?
2. Or do intimidating acronyms have something to do with it?
3. Or maybe it’s the underlying belief that governments only want to work with massive corporations that are backed by huge teams and have massive resources?
It’s likely the third one, but here’s why your small business decision-makers are wrong. The U.S. government wants to work with small businesses. In fact, it’s required to work with Small businesses by law.
Why? Because the United States has multiple statutes and fundamentals that require it to ensure that large corporations do not muscle out competition. Additionally, it understands that innovation often starts small, so procuring goods and services through private-public partnerships is also a strategic decision.
Even if that sounds like an exaggeration, the government contracting industry is undeniably massive. In fiscal year 2023 alone, the U.S. federal government spent approximately $759 billion on contracts, clearly showing there’s more than enough room to accommodate everyone.
Well-not everyone. Only the ones smart enough to get a head start in the game. So the real question is: if the opportunity is there, what’s stopping you from going after it?
The 4-Step Process of Government Contracting 101
Before you start researching, remember that government contracts are unique in their stature as they are governed by a set of regulations, thus ensuring transparency, fairness, and accountability in the use of public goods.
1. Finding the right Opportunities
The contracting process begins when a federal agency identifies a need for specific products or services. Two things follow next:
1. This need is formalized through a Statement of Work (SOW), which is also known as a product description and is coupled with allocated funding.
2. Contracting Officers (COs) then conduct market research to determine the most suitable acquisition strategy, which may include commercial item acquisitions under FAR Part 12 or negotiated procedures under FAR Part 15. There are currently developments to further streamline this process.
To discover these opportunities, businesses can utilize resources such as SAM.gov, which is the primary portal for any federal contract opportunities. Additionally, they can use tools like the General Services Administration tool that provides additional insights into upcoming contracts.
Despite these channels, many small businesses are unable to find the right opportunities, but more on that later.
2. Registering on Official Websites
Before bidding, companies must complete several registration steps.
1. You need to get a unique entity identifier (UEI) through the SAM.gov.
2. Register in SAM and provide details of your business.
3. Acquire necessary certifications, such as those for small businesses, minority-owned, or veteran-owned enterprises.
These registrations ensure eligibility and compliance with federal procurement requirements.
3. Bidding on Projects
Once you have registered your business, it’s time to start bidding- and frankly, this is the process that intimidates small businesses the most. But let us break it down for you.
The government employs various procurement methods. This includes:
1. Sealed Bidding: Contracts are awarded to the lowest responsive and responsible bidder.
2. Negotiated Procurement: Allows for discussions and revisions of proposals, with awards based on factors like technical capability and price.
The choice of which method the government deploys depends on factors such as contract complexity and value.
4. Proposal Submission
Next, remember that when you are submitting a proposal, you must adhere to the instructions of your solicitor, particularly the ones mentioned in Section M that outline how bids are evaluated. Here are some things to consider:
1. Ensure you comply with all the required information and certifications that are included.
2. Make sure you are presenting a clear and concise solution to what the government needs.
3. Balance the cost and technical factors and demonstrate clearly how your proposal offers the best value.
Challenges of Government Contracting 101: What New Contractors Should Expect
Getting government contracts is a huge deal. Getting one contract can open your door to additional contracts, but it is not without challenges. For starters, navigating the vast landscape of federal contracts can be daunting, especially because you have to fulfill a number of requirements, including ensuring there is no conflict of interest, as in the case of Deloitte Consulting, LLP.
There may be a plethora of opportunities, but they are often dispersed across multiple platforms, and understanding how and where to look requires immense patience and familiarity with government platforms.
That’s not all. Here are some additional challenges you should prepare yourself for.
1. There is a bombardment of regulations and statutes: Learn some basic jargon before stepping in
Government contracts are governed by an array of statutes and regulations, including the Federal Acquisition Regulation (FAR) and agency-specific supplements. New contractors must invest time in understanding these legal frameworks to ensure compliance and avoid potential pitfalls.
2. Tracking Deadlines is crucial: A late submission can kick you out of the race before you begin
The proposal process involves strict deadlines and extensive documentation. If you miss a deadline or fail to provide required information, such as business essentials, you will be immediately disqualified.
3. Get ready for some rejections: It is part and parcel of the process
Rejection is a common part of the contracting process. But once you have been rejected, you will not give up. You should do the following
1. Seek feedback on the reasons for rejection.
2. Sit with your team and think about how to improve.
3. Understand your niche and keep bidding.
5 Tips to Succeed in Government Contracting 101
Why do some companies repeatedly get government contracts while others are stuck waiting for years? Let’s understand through the example of AeroSyc Tech Solutions, which is a rising aerospace cybersecurity firm specializing in unmanned systems and secure communications. With a passion for innovation and precision, it’s aiming to become a trusted contractor for federal defense and space agencies.
Here’s what they did right.
Step 1: They registered early: They completed SAM.gov’s registration and obtained UEI and CAGE code six months in advance. This allowed them to bid on RFPs without delays.
Step 2: They knew their niche: They wanted to build a strong and focused reputation, so they defined their core area as aerospace cybersecurity and ensured they were DFARS-compliant.
Step 3: They built relationships: They attended many industry days and engaged regularly with contracting officers, posting Q&A on official sites. This helped them gain additional insights.
Step 4: They focused on compliance: They set up a NIST 800-171–aligned compliance system and conducted quarterly internal audits. This reduced their risk of getting their contracts terminated.
Step 5: They adopted a continuous learning attitude: They stayed ahead of procurement trends, used smarter tools for searching government contracts, and trained their staff accordingly.
The Future of Government Contracting (And Why It’s Changing)
The government contracting environment is undergoing significant transformations. The future could see much more transparency, inclusivity, and opportunities for smaller businesses. Here is how it will change the game for you.
1. Rise of real-time and smarter Discovery tools
It is universally acknowledged that the opportunities, platforms, and processes are scattered. Companies that are using real-time AI and data analytics tools are able to procure more contracts more efficiently.
2. Smarter Search, not more search
Businesses get a psychological kick when they can bid on hundreds of contracts. In reality, quality over quantity wins in this industry. But there’s a catch: not many businesses know how to search smartly.
3. The Shift from Reaction to Strategy
Agencies are adopting proactive procurement strategies, emphasizing long-term partnerships and innovation. Businesses no longer want a one-time contract. They want it once. They want it again.
Win Big Government Contracts with Smart Search
When it comes to strategy and smart search, Lead Pursuits isn’t just a platform; it’s your strategic wingman. We help you zero in on high-value opportunities and craft proposals that stand out.
You can use tools like the Leads Page, tailored Calendar, and smart Filters to quickly find the most relevant contracts. With Profile-Based Matching, opportunities align with your strengths, so you spend less time searching and more time building winning proposals.
The key to winning isn’t chasing more; it’s chasing better. Learn how with Lead Pursuits. Book a demo today.
