"JOIN OUR SMALL BUSINESS IDEAS PODCAST TO GROW YOUR BUSINESS!"

Table of Content:

 

WHAT ARE GOVERNMENT CONTRACTS?

WHY SEEK GOVERNMENT CONTRACTS?

HOW TO FIND GOVERNMENT CONTRACTS?

STRATEGIC STEPS: HOW TO GET GOVERNMENT CONTRACTS

TACTICAL STEPS: HOW TO GET GOVERNMENT CONTRACTS

GETTING GOVERNMENT CONTRACTS: FEDERAL CIO PERSPECTIVE

UNDERSTAND THE BIG GOVERNMENT OPPORTUNITY

GET INVOLVED IN THE GOVERNMENT BUSINESS

CHECK OUT THE FEDERAL OPPORTUNITIES

IDENTIFY YOUR NAICS AND FCS CODES

OBTAINING UEI NUMBER

REGISTER IN SAM dot GOV

PLAN A FEDERAL BUSINESS STRATEGY

INVESTIGATE SET-ASIDE CERTIFICATIONS

UNDERSTAND FEDERAL ACQUISITIONS

BUILDING A CAPABLE FEDERAL ECOSYSTEM

OFFER INNOVATIVE PRODUCTS AND SERVICES

FEDERAL MARKET DEVELOPMENT PROGRAM

FEDERAL SALES ACCELERATION

CREATE WINNING FEDERAL PROPOSALS

LEARN TO DELIVER PEAK PERFORMANCE

 HOW TO GET GOVERNMENT CONTRACTS -- PROCESS AND RESOURCES 

WHAT ARE GOVERNMENT CONTRACTS?

 

Government contracts are legally binding agreements between a government agency and a business or individual, in which the business or individual agrees to provide goods or services to the government in exchange for payment. Government contracts can be awarded at the federal, state, or local level. They can be used to purchase a wide range of goods and services, such as construction, IT services, weapons systems, medical supplies, and more.

 

First, let us discuss what types of government contracts exist and the differences between them. Here are several types of government contracts that businesses can currently bid on, including:

 

• Firm-fixed price contracts: These contracts are used when the price and scope of the work are fixed and agreed upon in advance. The government pays the contractor a set price, regardless of the actual cost of the work.

 

• Cost-reimbursement contracts: These contracts are used when the scope of the work is uncertain, or the cost of the work is difficult to estimate in advance. The government pays the contractor for the actual cost of the work, plus a fee for profit.

 

• Time-and-materials contracts: These contracts are used when the scope of the work is uncertain, and the cost of the work is difficult to estimate in advance. The government pays the contractor for the actual time and materials used to complete the work, plus a fee for profit.

 

• The indefinite-delivery, indefinite quantity (IDIQ) contracts: These contracts are used to provide a wide range of goods or services over some time, without specifying the exact quantity or delivery schedule in advance.

 

• Blanket purchase agreements (BPAs): These contracts are used to establish a pre-approved list of vendors for a specific type of goods or services. Agencies can then place orders with the vendors on the list without going through the full procurement process each time.
   
   
• Sole Sources Contracts: Sole source contracts are government contracts that are awarded to a single vendor, without going through a competitive bidding process. This type of contract is used when there is only one source that can provide the goods or services required by the government agency. It is also used when the goods or services are unique, or when there is an urgent need that cannot be met through the competitive bidding process. 

 

WHY SEEK GOVERNMENT CONTRACTS?

 

Let us start this discussion about how to get government contracts, by listing the advantages of securing such contracts:

 

• Government contracts can provide a stable and predictable revenue stream for businesses, as government agencies often have long-term needs for goods and services.
  
  
• Government contracts can be a way for businesses to expand their customer base and reach new markets.
  
  
• Government contracts can be an opportunity for small businesses to gain access to the resources and expertise of larger companies through teaming agreements.
  
  
• Government contracts can also be an opportunity for businesses to showcase their capabilities and gain recognition in their industry.
  
  
• Government contracts often have specific requirements for small business participation, providing opportunities for small businesses to enter the market.
  
  
• Government contracts can be a way for businesses to diversify their revenue streams and reduce their dependence on a single customer or market.
  
  
• Government contracts can be a way for businesses to gain access to new technologies and innovations through partnerships with government agencies and other businesses.
  
  
• Government contracts can help businesses gain access to funding and other resources to support their growth and expansion.
  
  
• Government contracts can also help businesses to comply with regulations and social responsibility.
  
  
• Government contracts can be a way for businesses to contribute to their community and the country by providing goods and services that support important public services and national security.

 

"JOIN OUR SMALL BUSINESS IDEAS PODCAST TO GROW YOUR BUSINESS!"

HOW TO FIND GOVERNMENT CONTRACTS?

 

There are several ways businesses can search for opportunities to bid on:

 

• Research government procurement opportunities: Look for government contracts that align with your business's products or services. Use resources such as SAM.gov, GSA eLibrary, and the Small Business Administration (SBA) to find relevant opportunities.

 

• Check with government procurement offices: Contact the procurement offices of government agencies and inquire about upcoming contracts and opportunities.

 

• Attend government procurement events: Attend trade shows, conferences, and other events where government agencies and prime contractors showcase upcoming procurement opportunities.

 

• Utilize Small Business Administration (SBA) resources: The SBA provides a variety of resources, such as the Small Business Development Center and the Office of Small and Disadvantaged Business Utilization, to help small businesses find and bid on government contracts.

 

• Monitor government websites: Keep an eye on the websites of government agencies, such as the Department of Defense, Department of Homeland Security, and the National Aeronautics and Space Administration, for information on upcoming procurement opportunities.

 

• Utilize private industry databases: Some private companies provide databases that allow businesses to search for government contracts by industry, location, and other criteria.

 

• Business and Government Networking: Network with other businesses and agencies, as this can open doors to new opportunities for teaming and provide valuable insights into the procurement process.

 

It's important to be persistent and monitor for new contract opportunities regularly as the procurement opportunities are updated regularly. 

STRATEGIC STEPS: HOW TO GET GOVERNMENT CONTRACTS

 

There are several steps that a business can take to increase its chances of getting government contracts. We have broken them up into strategic steps and tactical steps. First the summary there and then more details later!

 

• Federal Growth Strategy and Roadmap: Start by getting actively involved in building a federal practice by joining a Federal Business Accelerator program. Such a program provides you with strategic guidance, valuable roadmaps, templates, precise knowledge, and tips and tricks that are crucial for your success in the federal marketplace.
   
   
• Federal Market Development Strategy: Learn how to develop federal markets and sell to the government. This step is critical for success. Very few companies who have SAM registration, federal schedules, or contract vehicles with the government win federal task orders, so pay special attention to the advice in this guide.

 

• Federal Thought Leadership Program: Put your company in a position to become a thought leader in a specific sector of interest to the federal government, which means, the federal government actively six your advice and guidance in that product or service. 

 

• Build Federal Business Relationships: Build relationships with other businesses and agencies, as this can open doors to new teaming opportunities and provide valuable insights into the procurement process.

 

• Team-up with Appropriate Companies: Consider teaming up with other companies to bid on government contracts, as this can increase your chances of winning contracts by combining your expertise and resources.

 

• Peak Performance Execution: Learn how to execute programs and projects, efficiently, and effectively to bring them under time and budget, and wow the customer, and the federal government. Ensure that you can execute immaculately the task orders won from the federal government. This way you will win the hearts and minds of the federal government and win repeat business from them while creating a “documented history” of past performance.

 

TACTICAL STEPS: HOW TO GET GOVERNMENT CONTRACTS

 

• Register with the System for Award Management (SAM): This is the first step in doing business with the federal government. Registering with SAM will allow your business to be eligible to receive government contracts and grants.

 

• Research government procurement opportunities: Look for government contracts that align with your business's products or services. Use resources such as SAM.gov, GSA eLibrary, and the Small Business Administration's (SBA) Government Contracting Classroom to find relevant opportunities.

 

• Understand the procurement process: Familiarize yourself with the federal procurement process, including regulations and compliance requirements, as well as the specific requirements of the agency you are pursuing a contract.

 

• Get Set-aside Certified: Consider getting certified as a small business or as a business owned by a specific group, such as a woman-owned or veteran-owned business, as this can increase your chances of getting government contracts.

 

• Network, Network, Network: Attend government procurement events, such as trade shows and conferences, to meet government contracting officers and learn more about upcoming opportunities.

 

• Create a competitive proposal: Make sure your proposal is well-written, clear, and addresses all the requirements specified in the Request for Proposal (RFP).
  
  

In our ScaleUP USA Federal Business Accelerator experience, most companies jump to take the tactical steps and fail to take the strategic steps first. This is a big mistake!

You need to reach out to the government with innovative market development techniques discussed in this guide and build the expertise to execute government projects well and consistently to win in this marketplace.

 

GETTING GOVERNMENT CONTRACTS: FEDERAL CIO PERSPECTIVE

As the former CIO of the US Department of Transportation (US DOT) and part of the Obama-Biden Administration’s first term, NITIN PRADHAN had oversight of over $3.5B in annual technology investments/acquisitions, over 3,000 IT employees, 10,000 technology contractors, and 200 major technology systems. In this unique position, NITIN met hundreds of federal suppliers and contractors each year — from the largest to the smallest who pitched to him for federal business. Some of them did very well in federal sales and growth. Others not so much.

The question was — why were some performing much better than others? Was it the company, the product, the service, the price, or the training that made the difference?

Nitin realized then that while the first four components made an impact, it was ultimately the federally focused training, the deep insights, and best practices in the federal government that made all the difference in selling more. Most entrepreneurs, businesses, and their employees especially beyond the Washington DC metro region have little understanding of the significant federal opportunities or how to sell and manage projects/programs for the federal government via GSA Advantage or other means. They learned by trial and error, making mistakes all along at the employers’ cost and muddling their way into and out of the federal opportunities. There had to be a better way. Here is a step-by-step approach for new companies to build their federal practice.

1. UNDERSTAND THE BIG GOVERNMENT OPPORTUNITY

The US federal government is the world’s largest customer obligating approximately over $10.1 trillion in FY 2021 — including grants and contracts on products and services each year via GSA Advantage and other sources/schedules. In FY 2021 alone, the US Federal Government spent $7.5 Trillion on grants and fixed charges and $1.1T on contractual services and supplies. Just to give you a comparison, all the Venture Capital funding in the US in 2021 was about $320B.

In ScaleUP USA’s experience, you can build a very successful business in the government if you strategize, train hard, learn the best practices, persist, have patience, and work systematically.

So let us get started by locating all your team members and asking them to follow this video guide and the online Federal Business Accelerator program. Remember, while you can train alone it is better to have an ecosystem of partners to win more business in the federal sector, so invite your team to work together on these government strategies!

2. GET INVOLVED IN THE GOVERNMENT BUSINESS

According to the Small Business Administration (SBA), there are approximately 32 million businesses in the USA. Of these, by our estimate, 98% don’t even try to work with the Federal Government. So, if you decide to attempt to work with the Federal Government you are already in the top 2%. This step is entirely in your hands! You must get mentally prepared to work with the Federal Government and on the GSA Advantage Program if you are eligible. Working with the federal government is complex, time-consuming, and very different from working in the commercial sector. In ScaleUP USA’s opinion, once you learn the best practices, tips and tricks, and time-tested formulas you should do well. Plus, the complexity of the federal government acts as a barrier to entry for other businesses. Remember, the federal government spends in good times and in bad times. Therefore, once you learn to win federal business you should be good even if the economy tanks. Remember, this is one of the best hedges you can have for your business, therefore put in the effort, and create a great federal government practice now while you can.

3. CHECK OUT THE FEDERAL OPPORTUNITIES

The Federal Government seeks products or services through multiple different mechanisms including grants and contracts. Before you dive full fledge into working with the government, which is a little complicated, ScaleUP USA recommends that you first check out what the government is buying in your areas of expertise and make sure you like the buying patterns. The Government makes this very easy. For federal grants, you can search the “Grants.Gov” website and for federal contracts, you can search the new “SAM.gov” site as well as past contracts and awards data. You can also go to GSA Advantage and see what products and services are being sold to the government and see if you can compete with any of them successfully. Many other websites from the federal government provide very valuable information. Too many to list here. If you need to learn more check out the appropriate section in the federal business accelerator.

4. IDENTIFY YOUR NAICS AND FCS CODES

As you may have realized during your research in the earlier step the Federal Government typically lists or identifies its procurement activities by the North American Industry Classification System (NAICS) and the Federal Supply Classification (FSC) codes. You must, therefore, know the relevant codes for the products and services you are planning to sell to the government so you can seek the right buying opportunities. You can go to the two websites to figure this out or check the federal business accelerator link on how to do this.

5. OBTAIN UEI NUMBER

A Unique Entity Identifier (UEI) is a unique identification number assigned by the System for Award Management (SAM) to businesses that are registered in the system. The UEI is a unique, 10-character alphanumeric identifier that is used to identify a specific business entity in SAM and other government systems.

Each business that registers with SAM is assigned a UEI, and the number is used to identify the business throughout the procurement process. The UEI is used to track the business's information, such as its name, address, and contact information, as well as it's status in the SAM system.

UEI is important for government contractors because it helps government agencies and prime contractors identify and verify the identity of businesses that are bidding on contracts. This can help ensure that the business is a legitimate and qualified contractor, and it can also help prevent fraud and abuse in the procurement process.

Businesses can obtain their UEI by registering with SAM and providing their information. Once the registration is complete, SAM will assign a UEI to the business and make it available in the system. It's important to keep the UEI updated and accurate to avoid any complications during the procurement process.

6. REGISTER IN SAM dot GOV

The Federal Government requires you to have an active registration in SAM to do business with it. To register in SAM, at a minimum, you will need the following information:

Your UEI Number, Legal Business Name, and Physical Address from your Dun & Bradstreet (D&B) record.

Your Taxpayer Identification Number (TIN) and Taxpayer Name associated with your TIN.

Your bank’s routing number, your bank account number, and your bank account type checking or savings, to set up Electronic Funds Transfer (EFT).

The System for Award Management (SAM.gov) is the official website of the U.S. Government. There is no cost to use SAM.gov.

You can use this site to do many things — here are a few:

1. Register to do business with the U.S. Government
2. Update, renew, or check the status of your entity registration
3. Search for entity registration and exclusion records
4. Search for assistance listings (formerly CFDA.gov), wage determinations (formerly WDOL.gov), contract opportunities (formerly FBO.gov), and contract data reports (formerly part of FPDS.gov)
5. Access publicly available award data via data extracts and system accounts

This again is a free, mechanical but required step. SAM registrations may have to be updated regularly to continue working with the government.

7. PLAN A FEDERAL BUSINESS STRATEGY

The Federal government is large. Very large. It has around 20 large agencies and 80+ smaller agencies, with over 2.1 million employees. Unless you have a proven strategy to pursue Federal Government opportunities, you will get lost in selling and lose valuable time, effort, and a lot of money! Without the proper business strategy, you are a “rudderless ship on a shoreless sea.” Therefore, ScaleUP USA devotes substantial time to this area in the Federal Business Accelerator Program. This is a very critical step. Get this strategy right. If you don’t, it may turn out to be very costly down the road.

8. INVESTIGATE SET-ASIDE CERTIFICATIONS

According to SBA, the current government-wide procurement goal stipulates that at least 23% of all federal government contracting dollars should be awarded to small businesses. The Biden-Harris administration is looking at increasing this percentage. There are currently four categories under which your small business can be certified:

Women-Owned Small Business — 5% set-aside

Small Disadvantaged Business — 5% set-aside

Service-Disabled Veteran-Owned Small Business — 3% set-aside

HUBZone — 3% set-aside

According to ScaleUP USA’s past research, many times Small Businesses pursue set-aside certifications at the wrong time, in the wrong category, and as a stand-alone strategy — wasting substantial financial resources and time. ScaleUP USA suggests that these certifications should be pursued when you have a credible federal team, a quality federally-focused product or service, and the ability to go after federal opportunities. If you try and get a certification earlier when some of these capabilities are not in the place you will be just wasting time, effort, and money. Again, the Federal Business Accelerator program provides in-depth advice on how to build your team and win opportunities.

9. UNDERSTAND FEDERAL ACQUISITIONS

Federal Acquisitions are a beast that needs to be tamed. Once understood, the acquisition process is standardized across the civilian and defense agencies unlike the state and local government rules and regulations — which differ.

Check out the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation (DFAR). The government is aggressively moving towards contract vehicles that focus on procuring an indefinite quantity of supplies or services during a fixed period. Therefore, ScaleUP USA recommends that your company establishes and implements a strategy to win business through GSA schedules, IDIQs, BPA’s, GSA Advantage, and other varieties of mass, discount purchase programs. 

10. BUILDING A CAPABLE FEDERAL ECOSYSTEM

There was a time in the past when individual business owners would compete and win big in the Federal Government. This aspect is no longer true due to the priority the Federal Government places on IDIQs, BPAs, GSA Advantage, and other very large contracting vehicles for purchasing. ScaleUP USA recommends that today’s federal contractors and suppliers build a strong federal team and “ecosystem” including internal leadership, external partners, advisors, and subcontractors. This issue requires detailed planning. To understand more about teaming strategies, check out the Winning Federal Teaming Program in the Federal Business Accelerator and make sure to get your company videos for display in the Federal Marketplace. 

11. OFFER INNOVATIVE PRODUCTS AND SERVICES

The government is not interested in buying outdated products and services. Offering innovative and transformative products and services is important to create clear vectors of differentiation and beat the competition in the federal marketplace. The question is how do you consistently innovate and transform efficiently and effectively in areas the government wants with the limited resources you have and then market them effectively? Then, once you have such an innovative product or service, how do you effectively develop markets for it and build a sizable sales revenue? These are complex questions. Which our next two sections will address!

12. FEDERAL MARKET DEVELOPMENT PROGRAM

The GSA is a very large entity, the federal government is even larger. It is impossible to adequately cover these organizations for sales, especially if you are a micro, small, or mid-size organization. So how do you compete with the larger companies and the incumbents who have a large business development staff or insider information?

You can use a program ScaleUP USA developed and implemented called “Federal Market Development” which focuses on creating opportunities, internal champions, and a community of interest of government employees and helping your company become a trusted advisor to the government.

Also, check out the “Industry Powered Learning Master Program” developed in partnership with ScaleUP USA and other partners on its, neutral, microlearning-based, purpose-built platform to inform and educate buyers in federal, state, and local, governments, corporations, and startups on YOUR new technologies, business models, and disruptive innovations happening as a result of the industry partner’s transformative products and services. The focus of this program is on three areas:

First, New Technologies: Help the government and government contractors learn about your new production techniques that offer significant improvements in terms of increased output or savings in costs over the established technology.

Second, New Business Models: Help the government and government contractors learn about your new designs or processes for the successful operation of a business for increasing revenues, customer base, and product or service offerings.

Third, Disruptive Innovations: Help the government and government contractors learn about your new transformative processes of transforming an idea or invention into goods or services that create substantially more value or for which government customers will pay more.

13. FEDERAL SALES ACCELERATION

Covid has transformed the business world. What worked in the pre-Covid world is no longer effective today. Are you continuing with the costly, traditional business development and sales techniques of yesterday or do you want to migrate to the digital sales development world of the future?

1. Are you still learning to sell from the seller’s instead of the buyer’s point of view?

2. Are your sales pitch pretty much a manual activity yet or have you gone digital?

3. Have you figured out an ecosystem approach to selling or are you doing it alone?

4. Is your sales training integrated across the entire company?

5. How do your sales folks integrate with the rest of the company?

6. Is everyone in your company focused on growth or is that the job of the salesperson?

These types of questions are fundamental to your growth in the federal sector. You have three choices. Lead, follow, or get out of the way. Stop the traditional outdated sales training and focus on buyer-driven sales acceleration programs designed by buyers for the sellers. Check out the Federal Sales Acceleration Program for how you can do this. This is part of the federal business accelerator bundle.

14. CREATE WINNING FEDERAL PROPOSALS

If you don’t know how to write winning government proposals and provide competitive pricing, you can forget winning Federal Government business! The price is too high, you lose. Price too low and you are out of business. ScaleUP USA spent considerable time documenting some of the best practices in these areas and has built a program for what it takes to build a winning proposal with smart pricing and an impactful business capture process. Check out the federal business accelerator and the course on Winning Proposal Writing if you need help here.

15. LEARN TO DELIVER PEAK PERFORMANCE

The way to grow a business in the Federal Government is to first create and understand the opportunity, then conclude the mechanical steps to register for the business, learn to win business, and finally masterfully implement the federal contracts and grants.

If you don’t know the last step — that is to implement successfully, then your first win will be your last win!

We at ScaleUP USA call this successful implementation “Peak Performance” and we have developed a simple formula that allows you to come under budget and on time each time. Either develop your methodology or use our Federal Program and Project Management program— but do make sure you master the art and science of successful implementation. Check out the accelerator for more information on Peak performance.

IN SUMMARY –

Government opportunities are big opportunities. But winning big requires a sophisticated, strategic approach. Something that you can start learning either by trial and error or joining programs like the federal business accelerator.

We want the best companies to work with the government so that the government delivers the best services to businesses and citizens.

This is a win-win for all!

So, join us in this endeavor!

 

"JOIN OUR SMALL BUSINESS IDEAS PODCAST TO GROW YOUR BUSINESS!"