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Do you want to know how to get a federal contract? Securing a federal contract can open many doors for your company. If you’re an SME, a federal contract bid could be a great way to grow your business. Perhaps you’re intrigued about how they work and what is required. Luckily for you, this blog will contain useful advice and tips on how to succeed with federal contract bids.
Keep reading to find out how to get a federal contract…
When the government is looking to procure a good or service they will often turn to procurement. Procurement is also referred to as solicitation. Both the private and public sectors use procurement. The U.S. government spends billions of dollars annually. It is a great route to consider if you’re looking to grow your business.
If you’re a small and medium-sized vendor, the government awards 23% of all contracts to small businesses. There are state, local government, and federal bid opportunities.
The Contracting Office (CO) sets the rule of engagement for the solicitation. If they decide to go for the route of open procurement, the CO will release a solicitation or Request for Proposal (RFP). The CO may issue a Request for Quote (RFQ) or Invitation for Bids (IFB) instead.
After this, as long as you meet the minimum eligibility criteria you can start your application. The minimum eligibility criteria will be stated within the specification. After you’ve submitted your bid, the CO will review all responses. The contract will then be awarded.
The government has a need for virtually every product or service you can imagine. However, they do require you to be an expert in the area you’re bidding in. There are three types of government contract proposals. Let’s look at these in more detail:
An RFP is the most common form of solicitation you’ll come across when bidding for government contracts. Here, a contracting authority is looking for high-quality responses to their questions. Quality matters here. The questions will usually ask for you to demonstrate your experience and have a tactical approach to the contract.
A lot of businesses will outsource their RFP response to an RFP Writer. They are experts in writing winning bids and know how to best convey your company to the contractor. An RFP Consultant can help optimize your success.
For an IFB, a commissioner knows how they want the contract to be delivered. Therefore, they only require suggestions, meaning vendors can’t negotiate. Often, in this case, the contract is awarded to the lowest-priced bidder that meets the minimum requirements.
This type of solicitation is focused primarily on pricing. An organization may require you to answer questions about your experience. Your pricing should be competitive.
Most federal government RFPs are for standard services, equipment, and products. This is including off, but is not limited to:
You are able to find a federal government RFP across a number of sectors including construction, healthcare, and logistics.
An RFP invites a vendor to submit a proposal of how to deliver a contract.
A CO will release an RFP when they want to procure a good or service. Vendors who want to deliver the contract will then respond. Once submitted, their responses will be reviewed and marked. The contract will then be awarded to the best bid.
The federal government issues government contracts and bid through the US General Services Administration (GSA). The GSA buys billions of dollars’ worth of commodities each year.
The GSA also advertises the federal bids and contracts both locally and nationally. They are an advocate for businesses that are:
GSA works with the SBA (Small Business Administration) to ensure smaller vendors have a chance in securing federal government RFPs.
Each federal agency sets its own specific set-aside goals with the SBA annually. For example, the Department of Defence and the Department of Education will have a different percentage from the other. This means there are plenty of RFPs available to respond to across all sectors.
The federal government must adhere to the Federal Acquisition Regulations (FAR). The FAR sets a standardized set of regulations that are used to procure commodities in the public sector.
Typically, a federal government RFP is made up of 13 sections and each one is overseen by FAR. They are labeled by letters and are as follows:
You must read the whole document carefully (even if it’s 80 pages). There may be important qualifications or accreditations you need in order to qualify. If you don’t have them and still apply, you may not be eligible. That would be a great waste of everyone’s time and resources. This can easily be avoided by reading the documents properly.
Bidding for federal contracts has its advantages, especially for SMEs. The government awards 23% of all contracts to small businesses. So, learning how to get a federal contract could help your business grow.
If you’re wondering how to become a federal contractor, we’ve got some tips to help you get there. Becoming a federal contractor can have many benefits.
The US government has an annual contracting marketplace of between $350 billion and $500 billion. This makes it the largest buyer of products and services. Therefore, the US government is the largest avenue for finding contract opportunities for your business.
As we’ve already established, the US government aims to allocate 23% of contracts to small businesses. This gives SMEs a huge advantage that they might not have in other bidding scenarios. For example, bidding for contracts in the private sector.
Not only does the government support SMEs, it also supports minority-owned businesses. Approximately 10% of SMEs are minority owned, and the government reserves contracts for these businesses.
Federal contract bids are a great asset to businesses for many reasons. However, one of the most important is that they can create stability for your business.
Bidding for government contracts will enable you to build connections with the right clients. Should you impress those clients, they might be interested in your business for future projects. Therefore, you have the opportunity to secure a pipeline of work and create stability for your business.
If you’ve Googled ‘how to become a federal contractor’ you may also be wondering about the benefits. Another benefit is that by being a federal contractor, you can gain experience. The more contracts you secure, the more experience you will get.
Bids often require you to include up to three previous contract examples. Becoming a federal contractor can help build your experience. The more experience you have, the bigger contracts you can go for. The bigger contracts you go for, the bigger your business can grow.
Another benefit of bidding for government contracts is that the process is fair and transparent. This is because the government is bound by laws and business ethics that don’t necessarily apply to the private sector. For example, all federal contract bids must be open to all qualified bidders. There are also regulations in place to prevent favoritism.
This is especially good news for SMEs looking at how to get a federal contract. Many small businesses are hesitant to compete with larger, experienced businesses. However, with these regulations, the government is required to choose their vendors fairly, honestly, and professionally.
As we’ve already established, securing a government contract could enable you to build connections with the right clients. However, creating stability for your business is not the only advantage of this.
Securing a government contract could also increase your company’s value. If the government chooses you to deliver their project, this will have an extremely positive impact on your reputation. It shows that your business is compliant with government standards, which will impress future buyers and potential clients.
Also, when you work on a government contract, you’re likely to be contributing to the growth of the local economy. This is a great benefit of federal contract bids and will improve your reputation among other businesses in the area.
It’s fairly common to question how to bid on government contracts as a small business. The process may seem daunting and complex from the outside. However, this isn’t necessarily the case.
The U.S. government purchases billions of dollars’ worth of products and services annually. Many small businesses want to become a vendor to the government but don’t know how. Many businesses question if it’s even possible to bid on government contracts as a small business. This is because the contracts can be worth upwards of tens of thousands of dollars. Due to this, many wrongly assume that only big companies can apply.
There’s no denying that there is a fairly rigid process in order to qualify to do business with the government. However, once this is passed, you can get a slice of the action.
By law, a proportion of government contracts must be awarded to small businesses. The government’s goal is to allocate 23% of all government contracts to small businesses. So, it’s important to understand what constitutes a small business in the eyes of the government.
To be eligible to apply for government contracts reserved for small businesses, you must meet certain size requirements. These are set by the SBA (Small Business Association). These standards define the maximum size that a business can qualify as a small business for a government contract. For example:
It’s important to bear in mind there are exceptions by industry. Take a look at the Table of Small Business Size Standards to find the code relevant to your business. You can look at the SBA’s Size Standards Tool to see if your business classifies as ‘small’ for government contracts.
Before you learn how to get a federal contract, you need to obtain your DUNS number. This will allow you to register for government contracts.
Your DUNS number is a nine-digit number that is used to identify your business as unique from any other. In many cases, DUNS numbers are used to predict the reliability and/or financial stability of your business. So, when you’re bidding for federal contract bids, your DUNS number confirms that your business is actually eligible to bid.
DUNS numbers are free and can be obtained through the online DUNS Request Service.
The next step is to find your company’s NAICS code. This stands for the North American Industry Classification System. Your NAICS code classifies your business’ industry, country, and economic sector, which is necessary for bidding on government contracts.
Remember, if your business operates across multiple sectors, you might need to register more than one NAICS code.
To be eligible for a federal contract, you need to determine your business size. To qualify for government contracts for small businesses, your business must meet SBA size standards.
The SBA offers a Size Standards Tool which will determine whether you qualify as a designated small business.
The next step for how to get a federal contract is to register with the System for Award Management (SAM). If your business is not registered as a vendor, you will not be eligible for federal contracts.
SAM will benefit your business, as it streamlines the process for you. When you’re registered with SAM, you won’t need to enter the same information repeatedly.
To register with SAM, you’ll need your company’s DUNS number and NAICS code. Your SAM profile will also provide the information to receive payments from the government for the contracts you win.
Once the registration is complete, you can start to strategize.
Submitting federal bids is the end game. First, you need to plan your approach to finding the government solicitations. Federal solicitations can be found on beta.SAM.gov, formally FBO.gov. You can register to the platform and receive notifications.
If your organization is also interested in state, county, or regional opportunities, this can be more time-consuming. In order to find opportunities, someone in your organization will need to be responsible for registering to numerous bidding portals. Each one will likely have its own registration process. There are thousands of RFPs, RFQs and IFBs published every day across the US. Therefore, this will likely be a full-time commitment for a member of your team.
With so many solicitations published each day, there needs to be a way for organizations to quickly find relevant opportunities. Enter the PIID!
Sometimes referred to as a solicitation number, PIID stands for Procurement Instrument Identifier. The format is governed by the Federal Acquisition Regulation (FAR) 4.1603.
The number consists of between 13 and 17 alphanumeric characters. These characters are combined into several groups;
Now it’s time to delve into making decisions. It’s important to carefully evaluate the suitability of a contract before proceeding with your federal bid opportunities. Many organizations try and make their services fit the contract when, really, it should be the other way around.
To help you decide whether or not to proceed with a bid, you could ask yourself the following questions:
Typically, buyers will be expecting to see at least two to three case studies from the past five years. Can you provide that? If you can’t, there’s a good chance that the contract is not right for you.
You should look at the size, scope, and complexity of the government contract. Is it realistic for your business? Can you deliver a project of that size, in that location?
When looking at federal contract bids, you need to decide if it’s financially viable for your business. Is it worth it? Will your organization be making a profit from the work?
In some cases, the buyer will specify this in the RFP documents. If they do, does your business meet the financial standing? Generally, we advise that you shouldn’t bid for contracts that are worth more than 50% of your annual turnover.
A good way to decide whether or not to proceed with the bidding process is to assess your organization’s USPs. Does your business offer something unique in the market? For example, are you offering a service or solution that your competitors aren’t?
You should only go for federal contract bids that will help you meet your business goals. If the project doesn’t fit with your business strategy, proceeding with the bid will be a waste of your resources.
Should you secure the contract, will you need to outsource any work? If the answer is ‘yes’, you can still bid for the contract. However, if you’ll be outsourcing more than 50%, you’ll need to persuade the buyer to choose you over prime deliverers.
You should consider whether you and your team are able to deliver the project on paper. Look at their CVs. Do they have enough experience and capabilities to meet the buyer’s expectations?
You might know how to get a federal contract, but are you also capable of delivering the work on time? Are you able to commit to the time, effort and costs associated with the project?
Finally, it’s always a good idea to put yourself in the buyer’s shoes. Consider the situation critically and carefully. Would you choose yourself over your competitors? If the answer is ‘no’, you should find another government contract for your business.
You won’t always be eligible for every contract you wish to bid for. Unless, of course, you’re already a multi-million-dollar corporation. The soliciting agency will often require certain criteria and stipulate thresholds. This could be turnover, experience, or required accreditations for example.
This doesn’t mean that you should give up though. In fact, 23% of all government contracts are awarded to small businesses. The Small Business Administration (SBA) works with federal agencies ensuring smaller vendors can have a swing at federal bid opportunities.
Each federal agency sets its own specific set-aside goals in accordance with the SBA annually. Within the broader term of small businesses, there are subsets included, for example:
Federal solicitations that are available for contractors are listed on the beta.SAM.gov site. Government agencies are required to use SAM to advertise all contracts over $25,000. This is a good place to start when looking to bid on government contracts as a small business. This site also allows you to view previously awarded contracts which can be useful when preparing your RFP response.
The Dynamic Small Business Search (DSBS) is a database that government agencies use to find small business contractors for contracts. It is a website that’s maintained by the SBA. The information you provide when you register your business with SAM is uploaded to the DSBS. So, it’s therefore important to create a comprehensive business profile as it could lead to your business being contacted. The DSBS can also be used by small businesses to find other small businesses to work with.
If you’re wanting to bid on government contracts as a small business, looking at the GSA schedules can help. The U.S. General Services Administration (GSA) is a government agency that connects vendors with government buyers. If you secure a solicitation with the GSA, it’s known as getting onto the GSA Schedule. This means you’re approved to do business with the government.
To get in on the GSA Schedule, you may want to report for a Past Performance Evaluation from Open Ratings. This will assess your performance relative to other businesses in the same industry. It’s often required as part of the bidding process as a vendor. You must register and provide the names and emails of 6 – 20 of your customers in order to do this.
There is another form of government contracts for small businesses to explore, and that is subcontracting. Subcontracting opportunities involve negotiating contracts with current government contractors. This is done in order to complete a portion of work designated by the prime contractors.
Subcontracting government contracts can be a lucrative opportunity for your business. It also presents the opportunity to learn more about government contracting before attempting to bid on prime contracts. Subcontracting will also allow you to build up contract experience which is essential when applying for any solicitation. This is because buyers will likely ask for 2 – 3 past contract experiences your business has fulfilled. This can help you get an upper hand and ease you into the world of procurement.
To summarize, there are plenty of opportunities to bid on government contracts as a small business. You will need to get your affairs in order, registering with the right sites. However, once you’ve done this, you can start looking for contract opportunities. These contract opportunities can then help your business to grow.
If you need any assistance with your response, an RFP consultant can help. They can advise you on the best responses, or even write the bid for you. It is something to consider if you’re new to the bid process and want to have the best chance of succeeding. If you’re seeking assistance with your RFP cover letter, you can download our template for free.
Here are 9 tips for how to get a federal contract for your business:
To make sure that you’re only bidding on suitable opportunities, you need to thoroughly research the bid before applying. You can determine whether you’re eligible for the opportunity by asking yourself these questions:
Before submitting the bid, you need to read the statement of work (SOW) carefully and thoroughly. This will contain all the information you need to bid for the contract.
The federal government must adhere to the Federal Acquisition Regulation (FAR). The FAR is a standardized set of regulations used by all federal agencies when procuring goods or services. A federal contract bid is made up of 13 sections. Each one is overseen by the FAR. They are identified by lettered labeled sections:
What may be required for a construction RFP, won’t be the same needed for a healthcare RFP. Each buyer is different and requires different things. Therefore, you must read all of the bid documents in full (even if it’s 80 pages). This is because they will also state any pre-requisites such as industry-specific qualifications or accreditations. If you don’t have them and still apply, you may be ineligible, and your application rejected. You don’t want to waste your resources on an application just for it to be rejected over an avoidable misjudgment.
To increase your chances of success when bidding for federal contracts, your bid response needs to be clear and concise. Avoid overly technical jargon and industry-specific terminology. If the buyer isn’t an expert in your area, this will make it difficult for them to understand your response. This could cause you to lose marks during the evaluation process.
You should know what your key messages are and how to best communicate them in your RFP response. Make sure that your key messages align with the contracting authority. This will demonstrate to them that you have done your research and are well matched for the contract.
Write clearly and hit as close to the word count as possible on the questions. A buyer has given them for a reason. If they’re expecting an 800-word response, two sentences just won’t suffice.
The same goes for using unnecessary words. Don’t use “At our company, we firmly believe…” when you could simply use “we believe” instead. Additionally, instead of “in order to” you can simply put “to”. If there is a limited word count, you don’t want to waste it on filler words.
Additionally, if you have to use filler words to reach the word count, the bid might be wrong for you. Running out of things to say could suggest that you’re not actually qualified for the project. If that’s the case, you should find another RFP for your business.
And it’s not just the word count that you need to consider. Format your response clearly with subheadings and bullet points. Break the questions down and include them in subheadings. This will allow the reviewer to see you have answered every aspect of the question. Put yourself in their shoes. Would you rather be faced with a page of text, or one that’s broken up into subheadings and bullet points? Even if the content is there, subconsciously they will favor the one that’s easier to read. This is an easy way to get in their good books.
The most successful applicants for federal contract bids will have a strong management approach. You should consider how you are going to ensure an efficient and effective operation. How do you ensure best practice? Demonstrating this will strengthen your response and further reiterate your capabilities to the buyer.
Are you able to provide contract examples of your past performance? The CO for your federal contract bids will likely ask for 2 – 3 contract examples. These will be contracts you have carried out that are similar in scope and scale. The specification will state the time period they should be (typically within the last 3 – 5 years).
You should note your previous experience in accommodating needs similar to those the contracting agency requires. You should detail how you overcame any challenges to show your problem-solving skills and adaptability. If the contract example isn’t relevant to the bid at hand, don’t include it in your RFP response. For example, if you’re bidding for cleaning contracts, the buyer won’t be interested in your landscaping experience. They’ll want to see examples that are similar in size, scope and complexity to their project. If it doesn’t demonstrate your suitability and relevant experience, don’t include it in the bid.
Prove your success rate in delivering a seamless transition, from proposing to actually providing. Supplying a detailed:
A buyer wants to be reassured that the transition will go smoothly. This is especially the case if you are taking over a contract from a previous supplier.
Federal contract bids will be seeking the vendors that present the best value for money and added value. The CO wants to get the most for the taxpayer’s money. Consider the social, economic, and environmental aspects of the contract. Is your business paper-free? Do you give back to your local community? Do you use more environmentally conscious products or chemicals?
During your research, you could see if there are any objectives the buyer is working towards. This could be net-zero ambitions or greener vehicles. Are you able to provide this? Better yet, are you providing this and your competitors aren’t?
Pricing your services right is an important aspect when compiling any federal contract bid. You want to ensure that you are priced competitively. However, you don’t want to undercut your competitors by too much. This will lead the buyers to question your legitimacy. The federal government wants to be assured that they are getting the most value for the taxpayer’s money.
What’s more, what you put in the bid is often contractually binding. This means if you put a price and then go completely over budget, a buyer won’t be best pleased. It may even result in you being taken to court.
Many businesses wonder how to become a federal contractor. One of the biggest mistakes they are making is that they don’t leave enough time for their response. The average bid takes 23 hours to complete end-to-end. It can be very demanding and so that’s why outsourcing can benefit your business.
One way you can become a federal contractor is by letting an expert Bid Writer write your response. They can support you will all aspects of your response and can help you win your next RFP. Here are three advantages of using bid writing experts:
Planning your time efficiently is a sure-fire way to see increased success with your bid response. Contracting offices can really tell when businesses have taken thought and time with their bid responses. Setting internal deadlines for you and your team can help. A checklist of the documents and deadlines can help keep you on track and set a timeline. For example, make a checklist of:
Another tip for how to become a federal contractor is to make sure your bid is error-free.
If it’s riddled with errors, it’s unlikely to give off a good impression. You only have one opportunity to impress the contracting office. You want to make sure that you are doing all you can to make your bid the best it can be.
It can be hard to spot errors when you’ve been looking at the same document for a long period of time. This is why waiting a day or two to review can help. Additionally, getting another pair of eyes to proofread it can be beneficial. They can help point out any spelling or grammar mistakes.
Submitting a flawless bid gives off a great impression to the buyer that you are thorough. This can strengthen your bid, implying that you are trustworthy and have attention to detail. This can really help you stand out from your competitors. Taking the time to proofread before you submit can help you see increased success with your next federal bid.
If you’re wondering how to get a federal contract, we hope this blog will answer all of your questions. By no, you should know everything you need to know about federal contract bids!
There are many advantages to securing a government contract. The government is the world’s largest buyer, so there are plenty of opportunities available. Not only that, but the government actually allocates a percentage of contracts to SMEs and minority-owned businesses. This is great news for small businesses that are often discouraged by the competition.
Federal contract bids are also fair and transparent. This means that contracts aren’t awarded through bias or favoritism. However, it’s important to remember that the same regulations don’t apply to businesses in the private sectors.
Not got the time to write winning bid responses in-house? Don’t worry, our Bid Consultants can help. We provide three bid and RFP writing support services.
Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our writers will break down the solicitation documents, allowing you to see what the bid and the contract involves. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority.
Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.
Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents.
Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.
Do you need help with preparing a bid proposal? Proposal Ready can help businesses that are new to bidding or those in need of rejuvenating their content. Our Bid Consultants will create:
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