The US Federal Government is the world’s largest purchaser of goods and services. With its goal of ensuring that 23% of federal contracts are filled by small businesses, the Federal Government can single-handedly change the trajectory of mom-and-pop businesses around the nation.
If you’re a small business owner, here’s how you can join the 62,670 small businesses that prime contractors for the federal government.
Small Businesses Can – and should – Bid on Government Contracts.
Small businesses often think “local”, meaning that they often self-select out of government contracting opportunities – either consciously or through lack of awareness that there are opportunities available to them. A full 30% of small businesses don’t know that the federal government awards contracts to small businesses. The truth is that Congress has mandated that specific percentages of government contracts must be awarded not only to small businesses but to small businesses that are designated as Women-Owned businesses, HUBZone Small Businesses, and Service-Disabled Veteran-Owned Businesses. Subcontracting opportunities are also available for small businesses who wish to consider subcontracting with a prime contractor.
Not sure where to begin? There are many freely available resources that small businesses can use to find opportunities or increase their likelihood of winning a bid. The U.S. Small Business Administration (SBA), for example, has many publications and resources for small businesses interested in bidding on government contracts.
Preparing to Bid on a Government Contract as a Small Businesses
Bidding on a government contract involves adherence to special rules and regulations. Any small business that wishes to bid on a government contract must register on SAM (System for Award Management). Note that registration must be renewed every year. It’s also a good idea to register with the SBA to help quality for additional small business set-asides and other benefits.
Once registration is complete, the small business can browse opportunities and submit a “bid” (proposal) that outlines its ability to fulfill the agency’s needs and requirements. Crucially, all bidding small businesses must be aligned with Federal Acquisition Regulation (FAR) rules. These rules govern things such as pricing, small business size limitations, subcontracting plans, and compliance with specific accounting regulations.
Negotiating a Government Contract Win as a Small Business
Navigating federal government contracting can be complex. Common issues small businesses face when working with the federal government are compliance challenges, bonding and insurance requirements, and the high risk of protests, disputes, and audits.
For this reason, small businesses considering working in the government space must retain an attorney with government contracting experience. Such attorneys can assist with issues such as SBA size protests, subcontracting agreements, FAR compliance, bid protests, litigation, and audits and investigations. Complementary knowledge of areas such as cybersecurity, labor and employment law, and state and local procurement law can also be helpful for small business government contractors.
At Warner PLLC, we have extensive experience supporting small businesses through every step of the government contracting lifecycle, from helping with bid proposal preparation to contract negotiation and guidance on small business certifications or intellectual property support. If you’re a small business looking to do business with the federal government, engage us today to support your efforts – especially if you’re making your first bid.
