Want a federal contract? Here’s how to get started
Sholeh Patrick
The last issue of the Business Journal of North Idaho shared sources for potential government funding for small businesses. In this issue, we’re sharing tips on applying for federal contract awards set aside for small businesses — courtesy of the U.S. Small Business Administration.
Last year, the federal government reported a record-breaking $145.7 billion in federal contracts awarded to small businesses in one fiscal year. That was a $13 billion increase from the prior fiscal year. It’s also a lot of cash to pass up, especially for lack of trying.
Some of that is set aside for minority-owned businesses, which include women and veterans. Another category is the 8(a) program, which includes mentoring and surplus property for economically disadvantaged, but experienced, owners who are looking to expand. Other contract awards are simply reserved for small businesses in general, with eligibility defined by revenue and number of employees, varying by industry.
Tips to get started:
1) Check small business eligibility by industry (free) using the official size standards tool at sba.gov/size-standards/index.html.
Eligible businesses must also be for-profit, independently owned and operated, not be nationally dominant in their field, and be physically located and operate in the U.S. or its territories.
2) Make SAM your best friend
The System for Award Management is essentially a free business profile database and registration tool for any company wanting to do business with the federal government. This includes grants, loans, and federal contracts. It’s also a communication tool to get updates and information and file reports to help companies find opportunities, consider options, and stay up to date.
Once registered, a business is assigned a unique identifying number. Keeping the profile up to date is critical because SAM is used by federal agencies searching for potential companies to do business with.
Registering with SAM is necessary to apply or bid for a government contract or other funding award.
3) Just for subcontractors: Subnet
Small business subcontractors looking to sub with government contractors can find opportunities using Subnet at https://eweb1.sba.gov/subnet/client/dsp_Landing.cfm.
4) Sell to the feds with GSA
The General Services Administration is the contact if you want to sell a product to the federal government (gsa.gov, click “sell to Government”). That’s also called “getting onto the GSA schedule,” a term of art within the GSA.
5) See the lay of the land
Want to get a big picture of federal spending? Explore it at usaspending.gov/explorer or search awards to identify trends at usaspending.gov.
6) Use the guide, and decode the process
The SBA is officially connected to this process, connecting federal agencies with small businesses, and providing mentoring and help for owners who seek it. It just doesn’t make sense not to use them, starting with their free guide to federal contracting at sba.gov/federal-contracting/contracting-guide. The guide outlines eligibility, the rules and process, the various types of contracting, and resources. SBA also provides individualized mentoring to small business owners and executives in the form of “business counseling,” as well as annual webinars on winning specific types of federal contracts for small business.
Many of their services are free or low cost.
The nearest SBA district office is in Seattle, but the Spokane office serves North Idaho 509-353-2800. The Small Business Development Center on the North Idaho College Campus — which offers free business coaching — may also be helpful with business planning 208-665-5085.
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Sholeh Patrick is a columnist for the Hagadone News Network. Email sholeh@cdapress.com.
