What is Government Contracting?
A Government Contracting is the process of supplying goods or services to federal, state, or local government agencies under formalised agreements. While the grants are part of the funds which are awarded to finance certain purposes of a certain state, the government contracts are the tools for a direct procurement of the different types of the goods and services, provided by the private companies. The federal government is thus the largest customer globally since it demands anything from simple commodities to elaborate services. Almost all kinds of goods and services that the government requires are purchased from the private sector, so government contracting constitutes a large market.
How Can I Get Started with Government Contracting?
To take advantage of government contracting, businesses must meet certain requirements. For federal contracts, you need to register with SAM (System for Award Management) and DSBS (Dynamic Small Business Search). These registrations act as your business profile, showing potential government buyers that your company is qualified and legitimate.
In addition to these basic requirements, your business should also explore socio-economic certifications, like minority- or veteran-owned business status, which can qualify you for special set-aside contracts. Make sure your business is financially stable and operationally prepared to handle government contracts.
Building Relationships and Finding Opportunities
Once you have your registrations and certifications in place the key strategy is to market your business to government buyers. Develop contact with the government agencies and contracting officers in order to prepare for future business.
Indeed, while some contracts are listed on a website such as that of the System for Award Management SAM.gov, many more are not. However, it is important to note that the advertisements cover only between 10% to 20% of contracts left to the government. The remainder is bought through other closed procedures such as government purchase cards, sole-source contracts, or GSA schedules. It means that networking and being active are vital to searching for invisible opportunities.
Strategic Benefits of Government Contracts
New business can be achieved through government contracts which give steady revenue even in difficult periods in the economy. They can also help to increase your company’s reputation and gain you access to new areas, which will increase the scope and potential of your business.
In conclusion, although all contracts containing government funding are not disclosed to the public, there are other major opportunities in government procurement which can be described in terms of following key steps: strategic vision; correct registrations; and relationship development. They provide solidity and expansion within contracts and permanent commercial success.
