If you’re planning on making money with Federal Contracts

You have to first prove you don’t need them

Federal ContractsThe federal government can be the best client in the world for small business. They purchase over 4,000 goods and services.  So, it almost doesn’t matter what type of company you have. However, unless your company is on the GSA schedule, or in a business development program, its hard to get government contracts. Literally hundreds of thousands of companies go online to self certify, in the hope of getting  federal government contracts. The truth of the matter is that most of them never will.

Why aren’t self certified companies getting federal contracts?

You must first understand how federal contracts are awarded. While you can go to the SBA and take their courses. You can visit with the retired executives of SCORE. You could invest thousands of dollars into your company capabilities, and still walk away with nothing. Though it’s a high tech world, the key to government contracting is high touch. Which means your chances are dramatically improved if you know someone on the inside. Before even getting to the point you could call on your contacts, you’d have to wait. Because self certified companies are the last to receive requests for proposals.

When the government identifies a need over a particular dollar amount, it will typically be announced to the open market. If no one offers the response the government wants the contract may be divided into smaller pieces. Those smaller pieces would be announced to 8(a), Women Owned Small Business (WOSB)  and HUB Zone contractors. If the proper response was not found there, the contract may be further subdivided, and offered to Small Disadvantaged Businesses (SDBs).  If a vendor still could not be found, parts of what remained of the contract might be offered to self certified companies.

What Then?

There are tens if not hundreds of thousands of small businesses self certified with the SBA. The SBA is constantly looking for ways  to guide American people into its HUB Zone, Women Owned Small Business, 8(a), SDB, and HUB Zone business development programs. A material problem is that many of the self certified companies aren’t properly set up. In addition to good character, the government is looking for real businesses. Many self certified companies are not real businesses. Many of those companies are run by people working full time jobs. Some of those people have an Employer’s ID Number, an answering machine and little else. Those things don’t make you a business.

Some self certified companies have no insurance and may only have a DUNs number because they need it to self certify. This puts the self certified business owner and the government in an awkward situation. Many self certified companies plan to build businesses with federal contracts.  That is near impossible. The government, want’s to help small business, but can’t risk awarding contracts where losses could be incurred. Even companies that get into business development programs can’t build on government contracts alone.

So What’s the Solution?

You must prove to the government, your business is not dependent on federal contracts. Persons allowed into business development programs rely on federal contracts finding they must downsize upon graduating from those programs. Self certified companies find they will never get government contracts until they prove they don’t need them. Many owners of self certified businesses, fail to understand the actions of a few can hurt the many. The perception is that self certified companies are the lowest on the totem pole. That perception is inaccurate for many.

Saafenet has the answer for self certified companies looking to get federal contracts. Prove you don’t need them and people take a serious look at you. Most people will insist that’s easier said then done. But the Saafenet Corporation guarantees to analyze your company and show you how to make money 24 hours a day. And the most important thing is they do that for under $25.00 per month. If you want to be in business you can’t wait for the government to get you there.

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