- 1). Get organized. Prior to working with the government, it is important to make sure your business is ready to deal with the increased volume. A good capital reserve fund is important to deal with unplanned expenditures. It is also essential to have a hiring plan in place in case more workers are needed to fulfill the government contract. Interviewing staffing agencies and building a relationship with one is critical in order to get temporary workers on staff quickly.
It is also important to find an attorney who has had experience with government contracts. The federal government will enforce the provision of any contract signed with them and it is vital that a business understands the contract completely prior to accepting it. A good contract attorney will be able to explain the finer points of the contract in terms that are easier to understand. - 2). Register the business. It is important to create a business profile with the Central Contractor Registration (CCR) and the Dynamic Small Business Search (DSBS) government databases. By registering, a business guarantees its access to new federal contracts and opportunities.
In addition, a small business that is owned by a woman or minority can obtain 8a Certification and qualify for Federal Small Business Administration 8a contracts. These are special contracting opportunities set aside to help grow small minority and women businesses. When a business is located in an area the Small Business Administration (SBA) considers a disadvantaged area, it may qualify for a HUBZone certification. HUBZone certifications for a business allow it to gain access to bid for areas in need of economic development. Contact the SBA for certification information. - 3). Find administrative help. Some smaller businesses may not have the resources to hire an administrative assistant to help organize the paperwork involved when dealing with a government agency, so it is important to designate someone who is very detail-oriented person. Unlike private businesses, the federal government may request that the business provide a paper trail of the work done. Invoices for the materials used, time sheet information, and other documents may be requested prior to receiving payment. It is vital that the business have some organized handling of all the incoming invoices and other business-related documents pertaining to the work done for the government. The information a company must submit for payment is often described in the contract.
- 4). Watch operating costs and research the federal agencies. The federal government pays its contract, but the approval process to be paid can take months. Make sure the business can cover its operating expenses as it waits to be paid. In addition, the contracting process is lengthy and time-consuming, so the goal is to have a continuing business relationship. A business must determine if it will make enough money by fulfilling the contract to offset the costs of time and effort put into pursuing it. Each government agency offers general contracting information for its department through its government website.
- 5). Get the business up to code. Businesses working with the federal government are held to a higher standard of compliance when it comes to government rules and regulations than business working in the private sector. If the business is not up to regulatory code and properly insured, it is important to get those things completed prior to bidding on federal contracts.
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