Doing business with the government
The government can be an excellent customer for small businesses. Not only the federal government, but all city, county, and state government agencies purchase a vast range of goods and services. Procurement Technical Assistance Centers are available in many communities to help small businesses get government contracts.
In order to get government contracts, you must learn how to operate in the system. Each government entity has its own procedure which can make the process tedious and difficult. Start off by making contact with the purchasing agent of the agency or department in which you are interested. You will generally receive forms to get on their vendor list. Being on the vendor list does not, however, guarantee any contracts. At that point you need to do your homework--stay in contact with the purchasing agent, market your company to the department, and keep track of the current contracts. Daily issues of the Commerce Business Daily advertise federal contracts of $25,000 or more. Back issues are also online.
State and local contracts are advertised in other venues. Contact your state and local agencies to learn how to keep up with contracts of interest. Some state contract registers are on the Internet.
When a suitable contract is advertised, you need to respond correctly. Sometimes a formal proposal is required, sometimes an informal bid will suffice. It depends on the agency, size of contract, and other requirements. Make sure you follow the procedures exactly as outlined in the request for proposal. Any deviation can be grounds for rejecting your bid.
Beyond direct government contracting, you can also do business with the government by becoming a subcontractor to a prime contractor, a company that has a government contract. Larger businesses, utility companies, and other prime contractors are often committed to providing subcontracts to small, women-owned, and minority-owned businesses. Lists of prime contractors are available; ask the purchasing department of the agency you want to work for.
In some cases it may be advantageous to get certified as a small business or woman-, minority-, or disabled veteran-owned business. Contact your local Minority Business Development Center or Small Business Development Center for information on how to to this.
The Federal government is currently in the process of changing to a system that simplifies the procurement procedure and reduces paperwork. This system, known as Electronic Data Interchange or EDI, will eventually change the entire procurement process to one that is done almost entirely through computers. It is important to become aware of the requirements for EDI in advance.
General
Government Jumpstations
Codes
EDI
Technology Transfer
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