Government contracting is a win-win situation for both the contractors and the government. The yearly contract spending reached $6.27 trillion in 2022 and has high hopes for 2023. It covers various small to large businesses boosting their growth, the nation’s economy, and more.
So, winning a contract has multiple benefits, and you can reach new heights with government funding and enjoy other benefits. So, let’s see how you can leverage these opportunities to get new opportunities in 2023 with government contracting.
What Makes Government Contracting so Important in 2023
The U.S. Federal Government had become the largest purchaser of goods and services with billion-dollar investments. It covers many businesses and sectors, which range from spaceships to simple stationary items. All this funding, purchase, and contracting help small to large companies to boost their growth and create new jobs in many economically disadvantaged areas.
Every year, the federal government’s budget keeps fixed funds for small businesses, minority-owned companies, and more. With new loan schemes, accidental covers, and much more, winning government contracts only benefits both the government and the business.
Now, the most common question is if government contracting is beneficial, why doesn’t every business in the country go for it? The answer lies in the process of winning the contract. Winning the contracts takes around eighteen months of formalities and other procedures.
The process includes the following:
- Researching government contracts
- Planning the process
- Development stage
- Defining the business and a lot more
Therefore many businesses hire contract experts that cost around $85,000 annually. This detailed process and trying finally lets you win a contract with the Department of Defense (DoD), the largest provider of Federal contracts.
What Should you Know Before Applying for Government Contracts?
You must know that government contracting is a legally binding agreement where USG buys products and services. Federal Acquisition Regulation (FAR) must regulate the terms and regulations. You must follow all the guidelines for successful government contracting. So, researching, applying, and following FAR is very crucial.
Three Steps to win Contracts
According to the General Services Administration (GSA), you must follow three broad steps to win government contracts. These are:
STEP 1: Get a CAGE Code
A Commercial and Government Entity (CAGE) Code is given by the Defense Logistics Agency (DLA). This unique five-character I.D. a number is necessary at every step of government contracting. When the Federal Government awards your business sheets, this unique number is used for the proceedings. Moreover, obtaining or updating this code online through the DLA is free.
Important Note: If you face any issue regarding obtaining the CAGE code, you can contact (dlacontactcenter@dla.mil) or (877) 352-2255, that can be called for help.
Alternatively, you can also go to SAM.gov and click “No” in the section regarding the CAGE Code. After doing this, you will receive the code shortly.
STEP 2: Register with SAM.gov
Alt-name: business representation
SAM.gov, also known as The System for Award Management, is a free website; anyone can create an account here. However, it’s the official U.S. Federal contracting website, and you must opt for it for a successful process.
You must thoroughly go through the website and FAQs, which will help you sort out your purpose of registration and other formalities. After successful registration, you will receive Unique Entity ID (UEI), which has taken over for the DUNS Number.
STEP 3: Researching the Market
The constant ongoing process is researching the market to find the best contracts. Every year the federal government signs millions of contracts, and finding the perfect niche is vital. It will help you abide by the regulation and enjoy the maximum benefits.
The competition is very high, and planning the research and bidding for the right contracts will help you long term. You can look for opportunities on SAM.gov, as the website updates all the options regularly.
Also, you can use other technology power tools to enhance your searches. Bidding for the right contract will benefit the government and you. After finding the perfect opportunity and fulfilling formalities, you can enjoy government contracting.
Furthermore, there are things to do after winning a government contract, which also underlines some crucial steps. So, follow all the steps, official websites, updates, and necessary steps for a successful business.
Summing Up
Reaching new opportunities in 2023 with Government Contracting involves step-by-step procedures. However, you can leverage this opportunity to reach new heights with the right guidance, steps, and possibilities.
Not only this as the federal government also offers small business grants for minorities and now and then comes up with new schemes. This may include natural calamity relief, recession relief, loan relief, etc. So, winning a contract benefits the government and the business. So, follow the guide and start your journey now, as 2023 is full of surprises for government contractors.
