For any woman looking to scale her business and pursue new growth opportunities, government contracting is one possible and exciting path to take.
Each year, the U.S. government spends billions of dollars in federal contracts to small businesses and sets an annual goal to award at least 5% of that contract spend to women-owned small businesses (WOSBs). Fiscal year 2015 was the first time the government met the 5% goal since it was set in 1994 and, while it wasn’t met in FY2016, the federal government spent the highest amount yet ($19.7 billion) with WOSBs.
With the new government fiscal year just beginning, women-owned small businesses should consider jumping into government contracting and securing a piece of the billion dollar federal government pie. For business owners that have never sold to the U.S. government before, bidding on a contract can feel intimidating. But it doesn’t need to be. Here is my checklist to help get your business “contract ready”:
Prepare Your Business
While all five of these steps are important in preparing for a government contract, registering on System for Award Management (SAM) is the first step to get started. SAM is the database used by the government to find qualified contractors, and where larger contract-holders, and small business teaming partners seek qualified subcontractors. All prospective vendors are required to register in SAM before they can receive a contract, basic agreement, receive payment and more.
Another way to prepare your business and increase visibility in the federal marketplace is by obtaining official Small Business Administration (SBA) certification for applicable designations. According to a 2014 American Express OPEN survey of government officials and procurement specialists, 63% say certifications allow purchasing officials to more easily find businesses in SAM. You can find more information on the SBA website, but here are some certifications business owners should consider:
- Women-Owned Small Business Federal Contract Program (WOSBs)
- 8(a) Business Development Program
- The Service-Disabled Veteran-Owned Small Business Concern Procurement Program (SDVOSB)
- Historically Underutilized Business Zone Program (HUBZone)
Network
Securing an initial conversation with a government agency isn’t easy. One way to get your foot in the door and make a connection that might lead to your next government contract is to network. Networking gives businesses the opportunity to expand their list of contacts and meet someone who can help them take the next step in their career.
An organization that hosts networking and training events throughout the year both nationally and locally is the Small Business Administration (SBA). One of those events tailored to helping women-owned small businesses connect with federal agencies is ChallengeHER, a joint initiative between the SBA, American Express OPEN and Women Impacting Public Policy. ChallengeHER is designed to bring more women into the federal government’s supply chain and promote the WOSB Federal Contract Program.
Another source for networking are Vendor Outreach Sessions (VOS). These events are usually hosted by different agencies and encourage small business participation. A VOS could be geared towards HUBZone or women-owned firms, or aimed at boosting small business vendors within certain industries. These events are usually posted at no cost and offer a wealth of information on how to tap into agency contracts.
As a reminder, it’s important to have your elevator pitch prepared for networking events. An elevator pitch is a brief speech that you use to explain and spark interest in your business. It should be interesting, memorable and last no longer than the time it takes to go on a short elevator ride (about 20 to 30 seconds).
Do Your Homework
In government contracting, it is very important to identify and research your customer. You can research potential agency customers online to learn about what goods and services they are looking for so you’re able to narrow down which ones to target. Agencies post procurement forecast identifying what contract requirements they are seeking. Visit Acquisition.gov and search agencies that are buying, when they are buying and what they’re buying.
Many federal agencies also have an Office of Small and Disadvantaged Business Utilization (OSDBU). The OSDBU can help small businesses identify contracting opportunities within each agency. Before visiting an OSDBU office, research how the agency is performing on small business and socioeconomic goals at www.smallbusiness.data.gov. Some points to consider in preparation for your OSDBU meeting include:
- Ask about Vendor Outreach Sessions and when will they be held
- Ask how your company’s products/services could help with the agency’s missions
- Request meetings with Agency Program managers leading the contract requirements you’re pursuing
If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards and who the federal government is buying from.
Sell Yourself
According to the 2016 American Express OPEN Trends in Federal Contracting for Small Businesses survey, 62% of active small business contractors agree it is getting harder to win contracts due to increased competition. As the race for contracts continues, it’s important you sell yourself as a reliable business owner and someone who will add value to an organization or agency.
One essential tool used to market to federal agencies is your Capability Statement. Capability Statements are written documents you include in a contract bid that state your firm’s abilities in a clear, compact manner like a cover letter for a resume. A successful and well-written statement includes a company overview, past performance and how you can fill a need for the agency. To stand out from other businesses, be sure to tailor your statement to specifically match the project and/or agency need.
Be Persistent
Government contracting is a great way for any business to grow but it takes hard work and determination. According to the latest American Express OPEN survey, 57% of respondents said their revenues have grown as a direct result of federal contracting, and at an average rate of 61%. However, business owners should keep in mind there is no secret formula to securing a contract.
One must be ready to put in the time and energy, and stay persistent in their efforts. However, the benefits of government contracting are worth the challenge, as it creates new customers and gives your business that extra boost to take it to the next level.
Lourdes Martin-Rosa is the president of Government Business Solutions, a certified 8(a) women-owned small business that provides guidance, education and training to hundreds of small businesses on the importance of growing their business through government contracting. Read her interview on LadyBossBlogger here.