Why Should I do Business with the Federal Government?

1. $200 Billion annual procurement.

The Federal Government averages about $40 billion annually with small businesses. It must, by law, spend at least 23 percent of its prime contract dollars with small businesses. In addition, five (5) percent goals also exist for minority and woman-owned businesses.

2. Buys almost any product or service imaginable.

You build it or provide it and it’s almost certain that the Federal Government, the biggest customer in the world, has a need for it, and is already buying it from one of you competitors. Even the Department of Defense, which accounts for about 60 percent of all procurements, buys everything from food services, to management consulting, to software, to guard services…not just guns, planes and ships.

3. Advertises its needs well in advance.

The Federal Government is about the only client you’ll ever meet that describes what they need, when they need it, who to talk to about it, how much they’re thinking about paying for it, and when they’re going to buy it! Most of the major agencies have Procurement Forecasts, web sites and on-line procurement bulletin boards to help you identify business opportunities.

4. Purchasing ground rules clearly specified.

Whether you’re dealing with NASA, the Air Force, Treasury, or any other Federal Government agency, they all follow the same rules…the Federal Acquisition Regulations. The requirements, advertising, procurement, selection, payment and other steps are spelled out in these documents and you don’t have to learn “new strokes for new folks” as you do in other markets.

5. Customers can't refuse to see or listen to you.

Federal Government workers, whether they’re Generals, Admirals or GS-7’s all work for you and other American citizens. They want to hear from you, and if you approach them professionally, they can’t avoid your “sales-pitch”. When was the last time that you could say that about a commercial customer?

6. Many organizational friends available to help you.

The Small Business Administration, small business offices in every Federal Government location, Small and Disadvantaged Business Specialists, Procurement Center Representatives, DoD’s Procurement Technical Assistance Center and even your local Congressional representatives are paid to help you succeed in business. You only have to ask!

7. Pays for work progress along the way.

The Federal Government, through progress payments, milestone payments and the SBA’s various working capital and other loan guarantee programs helps you finance the contracts you’ve won.

8. Credit card purchases and simplified purchasing available.

The Federal Government purchases of up to $2500 can be made with a government credit card and contracts from $2500 to $100,000 can be made quickly and simply by contracting officers who obtain just three bids, often from the companies listed in SBA’s PRO-Net listing of about 170,000 small businesses. Are you registered in PRO-Net?

9. Non-competitive as well as limited competition advantages available to selected businesses.

As a certified 8(a) BD contractor, you can seek and be awarded a contract of up to $5M (for manufacturing) or $3M (for everything else) without having to compete, in the normal sense. If you compete as an 8(a) BD in a set-aside, your competition looks very much like you and its not the “big guys”. As an SDB contractor, your price can be up to ten (10) percent higher or you can enter a contract competition with up to a 20 point (out of 100) head start. Both of these programs can level the playing field for small, woman and minority-owned businesses.

10. Rewards your largest and meanest competitors to work with you.

The Federal Government even provides incentives to the so-called “big guys” to contract with you in full and open competitions. You see, if they do, they are also eligible for the up to 20 points in proposal evaluation credits. Being certified just makes you a more attractive teaming partner with those “big guys”.

<Go Back

Testimonials

Please click on the image to view the testimonial!