The federal government is the major contractor in the world. By opening up a government contracting business in the U.S.A., various U.S. companies find profitable business opportunities. 

Federal, state, and local governments buy several goods and services from contractors in almost every field and industry. There is a budget of dollars for women, small businesses, minorities, and veterans for government contracts. 

There are multiple benefits of getting federal government contact that helps to grow your business. Follow the given below steps to set up a government contracting business to obtain a different type of government contract.

Setting Up A Government Contracting Business

Here is the step-by-step process for the same:

Determine Your NAICS Code

The federal government considers the NAICS (North American Industry Classification System) to classify U.S. businesses. It helps to collect statistics or data regarding the economy of the U.S.A. 

The government also uses these codes to classify contracts. For getting more information regarding NAICS codes, go through the guidance of the Small Business Administration.

Gather Information About Your Business

After getting your NAICS classification codes, there are some other codes as well as numbers that you must have. These codes and numbers are necessary to become a federal contractor. You must have

• Standard Industrial Classification (SIC) codes and the federal tax I.D. number of your business. 

• You may also have other codes, including a product service code and federal supply code. But in case you do not have these, then there is no need to worry about it. But if you have them, then you must have them along with you.

Obtain a D-U-N-S Number

The federal governments use a unique, nine-digit number that is given by Dun & Bradstreet. This number helps to identify contractors, and you will get it for every physical location of your firm. If you are registering as a government contractor, then you can obtain this number free of charge. After filling this form online, you will get the number within 48 hours.

Create an account with the System of Award Management (S.A.M.)

It is the foremost database that you will employ to manage all your government contracts. With S.A.M., you will be able to do business with the federal government. You must get yourself register here before accepting any type of government contracts

For this, you have to visit the S.A.M. website and then create your user account to register your business. If you are dealing in different businesses, then register each business separately. But the user account for every business should be the same.

Try to fill in as much information about your business. S.A.M. plays a major tool in marketing so that government agencies can easily find you. Federal agencies often search for contractors on the basis of size, location, ownership, as well as some other factors.

Final Words

The above steps will help you to set up a government contracting business in the U.S.A. It is significant to assess each requirement before pursuing a government contract. The process may seem irresistible, but opportunities do exist and can be the right fit for your business.