01/ 28/ 2005
The government marketplace isn’t just for big boxes. There’s room in this billion-dollar market for even the smallest business.
Think your business is too small for a government contract? That you need to have a certain number of employees or a certain level of revenue to be a successful business partner to Uncle Sam is an unfortunate and all-too-common misperception. In reality, whether you have 50 employees, five employees or none, your business can still do business with the government.
Think smallerThe first place you’d probably go to look for a government contract is www.fedbizopps.gov, the database of government contracts valued at more than $25,000.
But not every business is cut out for a big contract. If you’re looking for something smaller, the best place to try is the General Services Administration, which matches its customers (federal agencies) with contractors for fairly common government purchase orders – like carpet, furniture, office supplies, petroleum or food supplies.
What’s more attractive, many contracts listed on the GSA schedules do not require much paperwork, but only a price quote, which translates to far fewer hours spent preparing your bid.
Look closer to homeThe federal government isn’t the only one contracting work to the private sector. State and local governments also need your products and services. But proceed with caution. While many state and local procurement laws were modeled after federal procurement laws, which were designed to protect both the government and the contractor, they may not offer you the same protections.
One of the most often heard complaints when it comes to state and local government contracts is the uncertainty of payment. Whereas the federal government is required to pay contractors within 30 days of successful completion of the contract, some state and local governments aren’t bound to that rule.
Get certified
While the U.S. Small Business Administration can’t ensure your success as a small-business contractor, this federal agency can offer a leg up to small and disadvantaged businesses.
If you’re a woman, minority, veteran or Native American, if your business is located in a certified underutilized business area or if your business is just starting out, you could be eligible for contracting assistance from the SBA.
Regardless of your eligibility for one of these designations, any business can benefit from the SBA. With programs like business matchmaking, where businesses can network with procurement officers, online government contracting courses and regional procurement offices to help with bids and marketing to government agencies, the SBA can help you get a leg up. But working with the SBA doesn’t guarantee a contract – that’s up to you.
Start with subcontracting
If you would like more experience in the government marketplace before bidding on a prime contract, a great place to start is to become a subcontractor. As a subcontractor, you will still be working on a piece of the government contract, but your contract is actually with the prime contractor. As a result, it’s important to make sure you understand all the terms and conditions, including payment schedule and method, quality control, assistance or equipment available, of the subcontract before you start working.
