A Federal Government Contract is awarded by the US government through which it lends contracts to small businesses and reserved categories that are classified as privileged or disadvantaged. These businesses can be women-owned, service disabled or service veteran owned or HUB zone and so on.
Things to know about Federal government contracts
You can call the US government the largest consumer in the world and that means as a seller, it provides you lot of scope and opportunities to sell your ware. It is estimated that the government makes a purchase of around $200 billion every year in the area of military and civilian departments. This also means there is a government buyer for almost all kinds of products and services.
The law stipulates that at least 23% of the purchases that government has to make, it has to be from the small businesses. The term ‘small businesses’, also includes businesses owned by women, service veterans, disadvantaged businesses, and so on.
Federal government contracts offer a great opportunity to small businesses to sell their products and gain more footing in the market. Generally, those who have government contracts are considered to be more reliable and trustworthy than other businesses because when government decides to buy from a certain business, it means that the business is honest and quality oriented. This helps small businesses to get more customers outside as well.
Thus, first and foremost, as a small business, you need to identify which category your business comes under and then bid for the contracts right away.
Your responsibilities post the awarding of the contract
First, never think that just because you are small business, it will be difficult for you to win a federal government contract. All you should do is be prepared and know how the government buying process takes places and what commodities are the government buyers dealing with. Then, follow the procedures and submit your offer.
Once, you get the contract, it is time to get back to work and not to relax. You will have to adhere to the terms of the contract or else, they can take back the order. That is why, read the contract carefully and understand all points.
Another point to consider is about the office that will be handling the order. Though the departments that award the contract are the ones who will take the order as well, in some departments, it might be some other offices. So, do check all these points once you get the contract.
As you have embarked on getting a federal government contract, make best use of the opportunity. All you have to do is be prepared at all times, be it when you read the contract or after you sign or the due process that you follow to complete the order. Though getting a government contract is highly rewarding, there might be challenges as well. The key is to identify them and keep moving. Focus on delivery quality and keep the time frame in mind. Any doubt or questions can be cleared as and then.