Have you ever wondered how to work as an independent contractor for the government? The federal government hires more contractors than any other institution on the planet, which means there are many chances for freelancers. Small firms, women, minorities, and veterans receive billions of dollars in contracts each year.
Many independent consultants see government contracts as a way to expand their businesses. To understand the methods, regulations, and resources required to obtain government contracts as a consultant and how to do the federal list building, follow these three steps.
Government Contracts: How to Get Them through Federal List Building
1. Obtain a Business License
To be considered for a government contract, you must first register your company with the System for Award Management (SAM). SAM is a government-run website that houses a database of businesses interested in government contracts. To be searchable, you must first establish an account and complete your profile.
Obtain a Federal Employer Identification Number (FEIN) (EIN)
While some small businesses opt to use the owner's social security number, the government requires that all contractors and vendors obtain an employer identification number (EIN). If you require an EIN, you can obtain one for free from the IRS. Consider this number to be your company's social security number.
Create a physical address.
You will need to establish a physical address because the government does not allow you to register a P.O. Box in SAM. If renting office space is not an option, you can meet this requirement by using a virtual office space or a registered agent.
Obtain a D-U-N-S (D-U-N-S) number.
To be eligible for government contracts, you must first receive a D-U-N-S number, which is a unique 9-digit number for each of your company's physical locations. This number will be sent to you free of charge by Dun & Bradstreet (D&B) within one business day.
Choose Your NAICS Code
The North American Industry Classification System (NAICS) classifies enterprises to collect statistics on the American economy. To register your business and apply for certain federal contracts, you'll need a NAICS code. Check out the Small Business Administration's recommendations on NAICS numbers for further information (SBA).
2. Take Advantage of Active Opportunities
You're now prepared to look into current federal government contracting opportunities. There are a few different approaches you can take:
To search for and bid on open opportunities, register with Federal Business Opportunities (FedBizOpps).
The schedule is a program run by the Government Services Administration (GSA). GSA Schedules spends around $50 billion on federal procurement each year, with a large portion of that going to small firms.
SUB-Net is a good place to look for subcontracting possibilities.
3. Small Business Certifications are an option to consider.
Obtaining 8(a) status may be beneficial to a socially or economically disadvantaged firm. These certifications do necessitate a formal process with a third party, but they may open up new doors for you. To get started, you must first register in SAM, after which you can begin the application procedure through the SBA (Small Business Association).
You'll be allowed to compete for set-aside and sole-source contracts once you've earned your certification. Additionally, you will be provided with services such as a Business Opportunity Specialist to assist you in navigating the federal contracting market, mentorship opportunities, and managerial and technical assistance to assist with executive growth. If you want to become certified, you must first take the SBA's suitability assessment before doing the federal list building to check if you are eligible.
Keep in mind that government contracting is a difficult field to master on your own. Because the requirements are difficult to meet— doing the federal list building is tough, and holding your security clearance, for example—many independents find themselves having to go through vendors or integrator to gain contracting chances.
Final Thoughts
Government contracting is a time-consuming process that might take away from billable time if you are unfamiliar with it. Before deciding to do the federal list building and whether or not pursuing a government contract is good for your company, it's critical to evaluate the requirements. While the procedure may appear daunting, possibilities do exist that may be a good fit for you.
Comments