Each year, the U.S. federal government spends hundreds of billions of dollars purchasing products and services. Small businesses receive almost a hundred billion dollars in contracts annually. With the right preparation, you can submit a well-reasoned bid that might land the government as one of your clients.
Part 1: Finding Contracting Opportunities
Step 1: Search the Federal Business Opportunities Website (FBO)
Visit the Federal Business Opportunities (FBO) website. Federal agencies list their contracting opportunities here, especially those worth at least $25,000.
- Beware of private websites that charge money for access to their listings. Always verify what is being offered before signing up.
Step 2: Get on a GSA Schedule
The General Services Administration (GSA) negotiates price and terms with vendors, allowing federal agencies to purchase products or services as needed. Some schedules are specifically set aside for small businesses.
- For more information about getting on a GSA Schedule, visit the Vendor Toolbox.
Step 3: Search for Subcontracting Jobs
Many contractors hire other businesses as subcontractors. This can help you gain experience and build your reputation.
- Look for subcontracting opportunities on the SUB-Net website.
Step 4: Work with a Bid-Matching Service
Local Procurement Technical Assistance Centers (PTACs) offer bid-matching services. They can find federal, state, and local solicitations through their database.
- Find your nearest PTAC at APTAC’s website.
Step 5: Assess Whether Your Company Is a Good Fit
Don’t apply for every contract hoping to land something. Instead, only apply for contracts that your business can realistically fulfill.
- Start small to build a positive performance history. For example, bid on projects worth $3,000 or less.
Part 2: Preparing Your Bid
Step 1: Create a System for Award Management (SAM) Profile
SAM is the primary database for vendors doing business with the U.S. federal government. You’ll need your tax identification number, D-U-N-S number, and other information.
- Obtain your D-U-N-S number for free at Dun & Bradstreet.
- Remember to update your SAM profile every 12 months to keep it active.
Step 2: Draft Your Capability Statement
A capability statement provides an overview of your business and past performance. This one-page document should include:
- Company information (name, contact info, website)
- A brief narrative of your business history and services
- Short biographies of key employees
- Certifications or clearances
- D-U-N-S number
- A list of business suppliers, dealers, and distributors
- Three years of past performance
- A list of clients
Step 3: Identify the Type of Bid Solicitation
Understand the different types of solicitations:
- Request for Quotation (RFQ): Used for contracts worth less than $150,000. Your response is not considered an actual offer.
- Request for Proposal (RFP): Details what the government needs and what information to include in your proposal. Ends in a contract.
- Invitation for Bid (IFB): Also called “sealed bid solicitation,” where price is a crucial factor.
- Request for Information (RFI): Used to determine if you are interested in a contract.
Step 4: Read the Requirements Carefully
The solicitation will tell you what information to include and the deadline. Read everything, including attachments and schedules.
- Contact the contracting officer if you have any questions.
Step 5: Research Past Bids
To submit a competitive bid, research prior winning bids. Use USASpending.gov to find details about past contracts.
Step 6: Respond to Each Requirement in the Bid
Provide all requested information in the solicitation. Follow instructions carefully to ensure your bid is considered.
Step 7: Spend Ample Time Creating Reasonable Price Estimates
Develop a pricing strategy that is attractive to the government but still covers your costs and allows for profit. Use information from past winning bids and market research.
Step 8: Ask for a Debriefing if You Are Rejected
If your bid is rejected, request a debriefing to understand what you did wrong and how to improve. This process can help you prepare better bids in the future.
- A debriefing is not the time to get defensive. Use it as a learning opportunity.
Tips
- Utilize your nearest Small Business Development Center (SBDC) or Procurement Technical Assistance Center for training on preparing bids.
- Network with current government vendors to learn from their experiences.
By following these steps, you can effectively find and bid on government contracts, potentially securing lucrative opportunities for your business.
