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Is your company ready to sell to the federal government?

The U.S. Government is the world's largest buyer of goods and services purchasing hundreds of millions of dollars in products and services from private contractors each year, yet many companies that would like to sell to the government are discouraged by the complexities of the federal procurement process. Their perception is that government contracting is too bureaucratic and requires too much paperwork. Each year these companies forego the opportunity to bid on millions of dollars in contracts because they do not understand the government procurement process.

Some small business owners think that the federal government only does business with large companies. In fact, the federal government requires that a percentage of procurements be set aside for small businesses and that large businesses subcontract a percentage of their government work to small businesses. Many small businesses start working with the government as subcontractors to government prime-contract holders allowing the small business to learn the procurement process while gaining government contract experience.

The government also has programs for to help small businesses that fall into certain categories including:

• Small Disadvantaged Business
• Women-Owned Business
• Veteran-Owned Business
• Service-Disabled Veteran-Owned Business
• Historically Underutilized Business Zone (HUBZone) Business

How do I start?

The federal government comprises multiple agencies, departments and bureaus with literally thousands of potential buyers for your product or service. So how do you start?

GSA Schedules: Many companies find that obtaining a GSA Schedule is the perfect way to start selling to the government. The U.S. General Services Administration (GSA) offers businesses the opportunity to sell billions of dollars worth of products and services to federal agencies through contract vehicles. A GSA Schedule, sometimes called a Federal Supply Schedule or Multiple Award Schedule, creates a long-term (up to 20 years) contract with your company to provide all government agencies access to your products and services on an indefinite delivery/indefinite quantity basis (IDIQ).

Federal buyers can order directly from your GSA Schedule contract knowing that GSA has already determined that your company can provide the goods or services at fair and reasonable prices. Your Schedule offerings will be made available to all government buyers through GSA's online catalog, GSA Advantage!®.

A growing number of government purchases are being made exclusively through GSA Schedules, so if your company does do not have a Schedule, it will not be eligible to bid on these opportunities even if you already do work with the government. Many of these opportunities are only advertised to GSA Schedule holders through GSA's e-Buy Website, an electronic system designed to allow Federal buyers to request information and find sources online, for millions of services and products offered through GSA Schedules. Schedule holders can prepare and submit quotes and proposals online. In 2007, agencies posted more than 61,000 requests for quotes worth more than $6.6 billion on e-Buy.

If you offer information technology goods or services, state and local governmental agencies may purchase directly from your GSA Schedule IT Schedule through the cooperative purchasing program.

The federal government is an attractive customer for any company looking to expand in its marketplace. While it takes some effort for companies new to the federal contracting environment to learn the basic rules and mechanics of the procurement process, the rewards can be significant. The basic principles that make you successful with your commercial customers will also serve as the basis for making your company a successful government contractor:

• Know your customer
• Follow the rules
• Perform as promised

Contact us to find out how we can help you decide if entering the federal market is right for your company.