Bidding on Government Contracts for Small to Medium-Sized Businesses

Engaging in government contracts is not something only large corporations can attempt. In fact, a number of small to medium-sized companies have sought and won government contracts. There is however a difference between the federal bidding process and the local bidding process, with the former involving a more specified procedure.

If you're a small to medium-sized business owner, these steps can help you get started on doing business with your government:

1. Go through the Small Business Administration guide. Just go to http://www.sba.gov and access the information you need on the product / service category you are prepared to offer.  Educate yourself first on all the relevant contracting guidelines before jumping headfirst into the bidding process. 

 2. Be on the lookout for bids! Government entities employ several means of advertising bidding opportunities, including newspaper ads, public notices, and online posts. Our official website features a comprehensive and exhaustive collection and archive of government bids from all the states in North America. Browse by category or state—our mission is to take legwork out of government bidding. Check us out now!

3. Establish your System for Award Management (SAM) profile. Now that you have a general idea of how to enter into business with the government and have found the perfect bidding opportunity, it is only right that you let the government know who you are and what you can do. 

This is where SAM enters into the equation. SAM is essentially a list of all the companies who want to work for the federal government. The SAM profile that you create here is where you try and convince the government entity that you are their best choice. 

To register with SAM, just go to https://www.sam.gov/. 

Registration is free. You will need to get your DUNS number though; this refers to your physical address.If you don't have this number yet, you can apply for a number free online at http://www.dnb.com/get-a-duns-number.html. You also want to ready your Taxpayer Identification Number.

After you finish setting up your profile, it will become visible within three days. Also, SAM facilitates payments if the government agency decides to award the contract to you.

4. Evaluate your company. Check your company's capabilities against the job requirements and make sure that you have what it takes to complete the job. If you win the bid and deliver a substandard performance, it will most likely be your last government contract.

5. Observe rules and regulations in writing the bid. Refer back to the Small Business Administration, consult the procurement office in your area, and seek advice from other relevant resources.

6. Respond to all the requirements outlined in the IFB in your bid. Address the requirements of the IFB with concise and comprehensive details. Make it clear that you have the resources and the capabilities to properly finish the job.

7. Fill out all the other required forms and submit your sealed bid. Refer to the IFB when this will be opened.

If you were the lowest bidder but you weren't awarded the contract, the government may have doubts that you can deliver your end of the contract. But don't fret! You can request SBA to review your company and submit a certificate of competency to the government entity. If you really want in on the job, you can also enter into a subcontract with companies who already hold government contracts.

Small enterprises have it tougher than larger businesses as there is a heavier burden on their part to prove their competency and quality of work. This is why a considerable amount of time and effort has to be invested into the bidding process—this way, government agencies can be confident that what you lack in size, you make up in performance.