The government spends a whopping <\/span>$500 billion every year on contracts<\/span><\/a>. That’s almost equivalent to Sweden’s economy.<\/span><\/p>\n According to the federal law, nearly a quarter of these should be government contracts for small businesses. However, that doesn’t mean you automatically qualify for one as an SMB.<\/span><\/p>\n Government contracting is extremely competitive as a considerable number of SMBs bid to get these contracts. Everyone wants these contracts; they are big money. This type of competition poses difficulties for any aspiring SMB.<\/span><\/p>\n For that reason, we’re here to help. There are several things you need to know, and this post is going to break down everything for you.<\/span><\/p>\n Keep on reading to learn more!<\/span><\/p>\n The government aims to provide small businesses with a level playing field in contracting. It limits competition by providing small business with set-asides. Two types of set-aside contracts are:<\/span><\/p>\n The competitive set-asides contracts are offered to small businesses when at least two of them are required to perform the work. The contracts are in most cases worth less than $150,000 with a few exceptions.<\/span><\/p>\n Under this type of contract, there are two categories of set-asides. Some are open to any firm that qualifies for a small business. Others are specifically for small businesses that participate in SBA contracting assistance programs.<\/span><\/p>\n The sole-source contracts are issued devoid of competition. They take away the competitive bidding process and are mostly an exception to the norm. The government issues sole-source contracts if only a single business can meet the contract requirements.<\/span><\/p>\n For example, in the construction industry, the government might choose <\/span>BidsConstruction<\/span><\/a> company for the contract.<\/span><\/p>\n For your business to qualify for these types of government contracts for small businesses, ensure that you register it with the System for Award Management. You will also need to participate in any contracting programs available to you. It is a unique program to help businesses win federal contracting dollars annually.<\/span><\/p>\n For formal reasons, the sole-source contracts are published publicly, but the intent to sole-source is made known. Potential vendors are free to view and bid on them. However, once a company has been awarded the contract, the sole-source intent is withdrawn.<\/span><\/p>\n The government offers contracts for both goods and services. At any one time, the government might be in need of any tangible items from vehicles to printing papers. The secret of succeeding in the bidding process is ensuring that you have what the agency needs.<\/span><\/p>\n The government may also float contracts for services. Sometimes it does not have full-time workers. You stand high chances of winning a service contract if that is your line of operation.<\/span><\/p>\n If you want to increase the chances of winning a government contract, research widely. The federal marketplace contains a lot of information to guide you in the right direction. Additionally, take advantage of the Small Business Administration resources.<\/span><\/p>\n There are various databases where you can find open federal contracts. Governments also have databases they use to find contractors. It is an advantage to you if you are registered on these databases.<\/span><\/p>\n The popular database is the <\/span>Dynamic Small Business Search<\/span><\/a>. The government uses it to find potential small business contractors. As a small business, you can use the database to find potential business partners.<\/span><\/p>\nTypes of Government Contracts for Small Business<\/b><\/h2>\n
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Competitive Set-Asides<\/b><\/h3>\n
Sole-Source Set-Asides<\/b><\/h3>\n
Registering for Government Contracts<\/b><\/h2>\n