Government Contracting

Strategies for finding and landing government contracts

By Constance Gustke

The world's largest business is actually the U.S. government. It buys about $240 billion in goods and services every year, such as all-purpose supplies, building construction, information technology and office space. And by law, a portion of those goods and services must be bought from qualified small business.

That translates into a lucrative sales venue for both big and small businesses. The General Services Administration (GSA) serves as the government's purchasing agent. The road to making sales to the GSA can be an arduous one though.

So first consider these attributes you'll need before jumping in:

Dedication to a long sales process.
Adherence to procedures set forth in contracts.
Ability to weather long payment cycles.
Willingness to be proactive, rather than waiting for the bidding process to begin.

Learn how government contracting works

Know the steps involved in landing a government contract.
Try: Sign up for free online training courses on government contracting from the U.S. Small Business Administration (SBA). You can also visit Business.gov or Onvia for an overview, resources and tools to help you navigate this complex, multi-step process.

Research what the government regularly buys

It's a good idea to familiarize yourself with the types of products and services the government routinely purchases. Make sure the GSA is actively looking for the goods or services your company provides before going any further.
Try: Visit the GSA Web site to see what types of products, services, technology and building/construction are sought.

Take advantage of your small-business status

The GSA actively seeks to award contracts to small, small disadvantaged and HUBZone (Historically Underutilized Business Zone) businesses as well as businesses owned by veterans, service-disabled veterans and women. The GSA has also established goals for awarding subcontracts to small business.
Try: Discover a number of resources designed to help small businesses access the GSA's procurement opportunities. The SBA helps you determine your business classification (woman-owned, veteran-owned, etc.).

Find opportunities

The GSA has made it easy to find contracting opportunities over $25,000 by listing them on a single Web site.
Try: FedBizOpps.gov is the main hub for procurement programs that exceed $25,000. Search the site for opportunities by date, location, government agency, procurement code and more.

Apply for a D-U-N-S number

To do business with the government, you must have a D-U-N-S number from Dun & Bradstreet. A D-U-N-S number is a universally recognized nine-digit sequence that's used to identify businesses worldwide.
Try: Request a D-U-N-S number at the D&B Web site.

Actively target buyers

Instead of waiting for government agencies to post a Request for Proposal (RFP), be pro-active. Create a list of specific government officials who can buy your wares and develop relationships with them just as you would in the private sector. Ask your target buyers to inform you of upcoming pre-bid meetings. Schedule meetings with your contacts and follow up regularly by phone or email to get a foot in the door.
Try: TargetGov.com's Government Buyer's Guide provides a list of verified government contacts you can target.

Perform on-time and on-target

Once you land a project, you'll receive lengthy contracts that you must read thoroughly. Government contracts differ from some commercial contracts, so keep that in mind. Contracts can be terminated for failure to meet deadlines or misreading product specifications.
Try: Understand your responsibilities to avoid having your contract terminated.