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Land a government contract
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August 24, 1998: 11:15 a.m. ET
If you can recruit him, Uncle Sam could be one of your best customers
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NEW YORK (CNNfn) - Whatever you're selling, chances are Uncle Sam is buying.
The federal government spends about $200 billion a year on the procurement of goods and services, ranging from paper clips to computer equipment and trash hauling.
And thousands of contracts, worth billions of dollars, bypass small firms each year because they do not know of or understand the government procurement process.
While dealing with the government can involve a bit of red tape, it can also be quite lucrative.
Selling to Uncle Sam
Finding out what the government is looking for is the first step to landing a contract with Uncle Sam.
The rise of electronic commerce has vastly simplified this process, as more government agencies are using the Internet to let contractors know what they need.
The Internet "has certainly enabled government buyers to get information out in a much more efficient way," said Judith Roussel, associate administrator for government contracting at the Small Business Administration. "But it also puts the pressure on small businesses to get electronically linked to the procurement world."
Every government agency has a list of its procurement needs on its Web site. Peruse these sites and find out which agencies have a need for your company's goods or services.
In addition, the Commerce Business Daily, which is published every Monday through Saturday, lists proposed procurement actions of $25,000 or higher, as well as subcontracting leads and other information.
You can also register with a value added network or VAN, a private company that sorts and electronically lists all government procurement opportunities. You can get a list of VANs from the Defense Electronic Information Center at (800) 334-3414.
Finally, free Web sites such as GovCon are a great resource, consolidating procurement information from a variety of sources.
Making the sell
But knowing what the government needs is only the first step. To land a government contract, you have to aggressively market your company.
Marketing "is absolutely critical in terms of making your company and its capabilities known to government buyers," Roussel said.
Get in touch with the contracting officers at the agency you've targeted and introduce your company. Contracting officers usually prefer "line-cards" or one page descriptions that highlight a firm's capabilities. Follow up with a phone call and, if necessary, a more detailed presentation.
Arrange to get on agency mailing lists to receive solicitations automatically for specific types of procurements. This can be achieved by completing a Standard Form (SF) 129, Solicitation Mailing List Application, and sending a copy to each agency you are interested in.
Such arrangements can be a very important and effective marketing tool for small firms. You may want to contact specific agencies to ensure you meet all of their internal bidder list requirements and follow up to make sure your company name does, in fact, appear on bidder mailing lists.
Finally, attend one of the many procurement seminars, conferences and briefings which take place across the country throughout the year. The networking and contacts developed at these events are often as valuable as the information received.
Another great way to let the government know you are available for contracting is by registering with the Small Business Administration's PRO-NET.
PRO-NET is a free service used by government contracting officers to find companies that can fulfill their procurement needs. By listing your company, its product and contact information, a government agency can get in touch your firm when a relevant need arises. At that point, the agency can solicit a bid from your firm.
Currently, 171,000 small businesses are registered with PRO-NET.
Women and minority-owned firms
Government agencies have an obligation, as well as various incentives, to meet specific diversity goals when it comes to contracting.
Of the 20 percent of contracts the government aims to give small businesses, one quarter is designated for women-owned businesses and another quarter for small disadvantaged businesses or SDBs.
Don't be shy about telling agencies you fit the bill if it can increase your chances of getting a bid.
In many cases, a qualifying company can simply declare itself an SDB during the bidding process. But then any agency or competing firm can challenge the company's status and slow the process of awarding the contract in question.
Getting 8(a) certification from the SBA could make your company's disadvantaged standing more concrete. The 8(a) status greatly enhances a company's chances of landing a contract since the SBA works with federal purchasing agents and functions as a prime contractor, subcontracting work to 8(a) firms.
To qualify, a company must be at least 51 percent owned and operated by women or minorities.
Think small
The prospect of landing government contracts may intimidate many companies, which think they are too small or inexperienced to get in the game.
Subcontracting may be a viable alternative for companies new to the process.
"A lot of companies find it easier to make the first step as subcontractors … that way they don't have to get too involved," Roussel said.
In fact, subcontracting opportunities for small businesses are expected to rise as prime contractors come under greater pressure to offer more services to the federal government.
Get in touch with successful prime contractors and send them information about your company, emphasizing your competitiveness and willingness to form a partnership. Specific agencies can provide lists of their prime contractors.
Contracting with a local government is another possibility.
Many municipal agencies, such as parking bureaus and boards of education, regularly do business with small, local companies.
Since many politicians want to aid local businesses and their constituents, especially around election time, they may be willing to help your company get a contract.
But as with federal contracts, you will have to take the time to research the contracting methods of the municipality you are targeting.
And local governments rarely have the ability to or desire to move quickly. Many contracts require a long bidding process, sometimes dragging out for years, and the approval of politically appointed boards that don't always find it easy to reach a consensus.
But whatever type of government contract you decide to pursue, make sure to take advantage of the many resources at your disposal.
The SBA, Department of Defense and General Services Administration, to name a few, all offer outstanding resources for small firms. In addition, the many procurement technical assistance centers, or PTACs, located around the country can be a big help.
As with anything, the more you do it, the better you get.
"Any company that thinks it can make a lot of money the first time out is wrong," Roussel said. "But once you learn how to use [the system] well, the more lucrative it gets." 
-- by staff writer Nicole Jacoby
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