How Small Businesses Can Get Government Contracts Part I: Getting Started

The U.S. government is the largest consumer in the country, spending nearly $589 billion each fiscal year on contracts. The government is also an omnivorous consumer, spending that money on everything from office furniture to food services to medical personnel to highly advanced technologies.

For an entrepreneur or small-business owner, the thought of entering such a large market with potentially complex rules and regulations may be too daunting.

My advice: Don’t let that fear get the better of you. It is well worth whatever time you invest. Remember - regardless of whether we’re in an up economy or a down economy, the government still must run. The government will not go out of business. The government can be your customer for life.

In fact, as a small business you have an advantage over other businesses when working with the government. The Federal government has set a goal that at least 23 percent of Federal dollars go to small businesses. Government agencies get “small business credits” for contracting with small businesses.

In the government market, being a small business can provide a significant competitive advantage.

Step One: Education

Before making any changes to your business model, read up - get educated on the government market in general. The Small Business Administration’s Business.gov provides a one-stop-shop of information on doing business with the government within its “Small Business Guide to Federal Contracting” pages.

Another comprehensive source is an eight-page downloadable guide, provided by the SBA, titled “Opening Doors to Federal Government Contracting Opportunities“. This guide debunks myths and provides real-world advice on how to get started selling your goods and services into the Federal government.

SBA also provides a free on-line course titled: “Business Opportunities: A Guide to Winning Federal Contracts“. You’ll have to register for this course, but it will be worth the time invested.

Beyond basic information, the Business.gov site also provides guidance and program information for women-owned, veteran-owned, and small and disadvantaged businesses. Fitting within one of these categories provides additional business advantages beyond simply being a small business.

Step Two: Registration

Once you’ve done your homework, the next step is the proverbial paperwork - registering your business as a potential Federal contractor. The Federal government must buy goods and services from only those companies that are officially registered as Federal contractors. There is no harm, or commitment, in registering. It simply opens the door between your company and the government.

One of the best places to get step-by-step registration instructions is the How to Register as a Federal Contractor page on the Business.gov site. Here, you’ll find you must:

1.      Obtain a D-U-N-S number: A Dun & Bradstreet D-U-N-S Number is a unique nine-digit identification number for each physical location of your business. Getting a D-U-N-S number is free for businesses interested in working with the Federal government for contracts or grants. This process is as simple as going to the Online Web Form Process page, which directs you to an online form and also provides a phone number, if you prefer to work with an actual person.

2.      Register your business with CCR: Once you’ve gotten your D-U-N-S Number, you must register your business with the Central Contractor Registration (CCR). This is simply a database of companies working with the Federal government. Your company must be in this database in order to do business with the government.

3.      Fill out the Online Representations and Certifications Application (ORCA). Here is where you provide additional information about your company and its business activities (what you sell, how you sell it, etc.)

Step Three: Getting in the Game

Once you’ve gotten through all the forms and registrations, you are - technically - able to do business with the government.

In my next entry, “Government Contracting Part II: Getting Government Business”, I’ll cover the two most important steps in actually getting your first Federal government customer: Getting onto the GSA Schedule, and finding your way to FedBizOpps.

Stay tuned … and in the meantime, read my post Tap into the Biggest Spender :: Doing Business with the Federal Government.