Multi-million dollar federal government contracts awarded to large defense and aerospace conglomerates often get a lot of attention through the media. But don’t let that discourage you from getting your company in a position to sell to the federal government; there are plenty of opportunities for small and medium size businesses, as well. The following Q&A’s will help you determine if your company is a likely candidate to sell to the federal government.

Can a company like mine really have the federal government as a customer?

The federal government is the largest single customer in the world. Not all federal contracts are with huge corporations; on the contrary, in FY2004 more than $70 billion of the $300+ billion that the federal government spent was with small businesses.

You also might think the process of being a federal vendor is perplexing. But over the last 20 years, the federal government has worked diligently to simplify and automate the procurement process.

Take a look to see if the federal government could be your next customer.

What does the federal government buy?

The government buys everything (see appendix A and appendix B) from agricultural supplies, machined parts, construction, and R&D to furniture and telephone service. There are several ways to find out what the government is currently looking for; those include:

• Looking at each agency’s web site
• www.fedbizopps.gov
• B2Gconnect

How does the government buy goods and services?

The government uses a variety of methods to purchase goods and services. The U.S. General Services Administration (GSA) handles many contracts for a wide variety of goods and services. Other sales are through such contracting vehicles as EMALL, which is an on-line mall used by the Department of Defense. Credit cards are widely used. Many manufactured parts, services and commercial products are bid online. Written proposals and quotes are also used in the procurement process.

My business has not been doing very well. I need some quick sales. How can the federal government help?

The government market may not be your best option if you are looking for a quick sale without laying the proper groundwork. Success is not overnight. It can sometimes take one year – many times two, to get the first order.

How do I get started?

• First do your market research
• Complete your Central Contractor Registration (CCR) and Online Representations and Certifications Application (ORCA)
• Determine whether your business qualifies for any of the U.S. Small Business Administration program certifications: SDB/8A, HUBZone, WOB, SDVOB
• Register with B2Gconnect – LET US HELP YOU LEARN THE PROCESS

Isn’t the bureaucracy and paperwork of government intricate and time consuming to make it worth my time to become a federal vendor?

Bureaucracy is part of government work. It is not overwhelming. B2G Connect can help guide you through the process, based on our experience and the experiences of the many companies we have assisted in navigating through the process. In addition, B2G Connect will explore subcontracting options for businesses that are new to the Government marketplace.

What should I expect? And how long should it take to get a contract?

You should expect to have to work hard and to take the time to learn the federal procurement process. You should expect to devote focused resources, be willing to travel, be willing to open your facility and business records, and be willing to treat the government as your best customer. Good first success may occur in about two years.

Do I have to be politically active to succeed in the federal market?

No. It is important to understand what role politics and government play in the procurement process. Remember that your congressmen and senators are the ones who decide how federal tax dollars are spent.

I have heard that the government payment process is complex and not very reliable. Can I depend on the government paying me for my work?

The government has made great strides to maximize the use of the Internet, electronic payment processes (EFT) and other technology to improve the acceptance and payment process. The federal government uses credit cards for many of its purchases. The Prompt Payment (1991) rule ensures that federal agencies pay vendors in a timely manner. If there are delays, the Prompt Payment rule assesses late interest penalties against agencies that pay vendors after a payment due date. As with any business transaction, it pays to develop good relationships when selling to the federal government. Such relationships can alleviate challenges should they arise.