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5 Pointers for Getting Government Contracts

by Amy McKearney

Goods or Services

Understanding the goods and services the government purchases and what your business sells is a key to your success in getting government work. If your business sells goods or services that the government does not purchase, then it is not worth your time and effort in attempting to sell your goods or services.

Start with looking at the North America Industry Classification (NAICS). NAICS are a set of standardized industry definitions for three countries (United States, Canada, and Mexico).

Knowing the NAICS number of your industry makes researching for government contracts effortless. The NAICS numbers were restructured in 2007. You can search them at www.census.gov/naics/. Type in a keyword for the goods or services your company provides, and then search to obtain the NAICS code. You can now use that code in http://www.fedbizopps.gov/ to find federal government solicitations for your industry.

Federal Acquisition Regulation (FAR) are the laws that govern the U.S. Federal Government's procurement process. Be sure to become familiar with the regulations that apply to your goods or services.

Assistance

Contact your local Procurement Technical Assistance Centers (PTAC). Since PTAC is funded by the United States Department of Defense, most will offer their assistant at no cost. They provide assistance to businesses in marketing products and services to the Federal, state and local governments including preparing and submission of applications, certifications, and registrations. To find your local PTAC resource go to http://www.aptac-us.org/new/Govt_Contracting/find.php

PTAC offers a free automated bid matching service that will send you email notification on government solicitations available.

Get your DUN Number from D&B by calling 866-705-5711. Using the internet is NOT faster in this case. Your best option is to call. You will need this number later when registering in the CCR Database.

Certifications

If you plan to use your company status as small, small disadvantaged, women-owned, veteran-owned or HUBZone business, you will need to certify with the government.

Check out http://www.sba.gov/size to learn more about small business size standards. If your business qualifies for a small business, it will certify during registration of Central Contractor Registration (CCR) http://www.ccr.gov/

Find out if you state certifies businesses as small, small disadvantaged, women-owned, or veteran-owned business. Fill out the application, if your company qualifies for their certificates. It can help you win bids.

GSA Schedule

The United States General Services Administration is the federal government's acquisition agency. Their mission is to help other government agencies find their needs for products and services. They also provide access the public to government information and services.

There are 55 different GSA Schedules. A listing of the GSA schedules can be found at http://www.gsaelibrary.gsa.gov/ElibMain/ScheduleList

You can get on the GSA Schedule without having an awarded contract. Getting on the GSA schedule, means you have an unfunded five-year contract with the government. When you are on the schedule, your business is an approved supplier and you have a better chance of an awarded contact.

Once on the GSA Schedule you will need to market your business. If your annual schedule sales do not meet the minimum of $25000, you are at risk of having that contract terminated.

Applications for getting on the schedule requires a past performance report with 6 minimum and 20 maximum referrals. GSA's recommendation is using at least 10 referrals. GSA wants you to submit these references to Open Ratings. http://openratings.com or phone 727-329-1184. The cost of the report is $125.

To learn more about Getting on the GSA schedule, check out: www.gsa.gov/schedules and www.gsa.gov/gettingonschedule

The GSA has online training so be sure to checkout "How to Become a Contractor--GSA Schedules Program" on http://centerforacquisitionexcellence.fas.gsa.gov

GSA will hold training events and seminars. Look to see the closes GSA event near you on http://www.GSA.gov/events

Pricing for GSA Schedules

It is very difficult to increase price once set on the GSA Schedule. You may not increase your price more than 3 times per year, and aggregate can not exceed 10% over last year's price. When you increase your price, you must justify economic basis for the increase.

The GSA requires you to pay the Industrial Funding Fee (IFF) of 0.75% of your quarterly government sales. Be sure to include the IIF in your pricing.

Additional prices, such as shipping costs, cannot be added to what is listed on schedule. Make sure you include shipping cost, or additional type costs within the original price.

Consider accepting credit cards, some government agency have Government Purchase cards with a credit of over 1 million dollars.

There is a great deal of information on the web about government contracts, and there many services that will help you if you pay a fee. If you are serious about wanting government work, keep plugging way and do not get discouraged.

Read more about government contracting here: Get Your Share of Government Contracts

Good Luck-

Amy S. McKearney
Marketing Coordinator
Transcription Plus, LLC

 

 
 

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