Are you looking to become the next big government contractor and are worried that the pandemic may have slowed down your chances? Not to worry because downtime is just what you need to learn the reigns of the business and prepare for work after the pandemic is over. Another reason why this downtime will work in your favor is the fact that economic downturns are often met with construction dollars in the form of stimulus money. A look at the American Recovery and Reinvestment Act of 2009 will give you a fair idea of this pattern and assist you to get a clear picture.
We have compiled a list of tips that you can use in order to prepare yourself to be a successful government contractor and be well prepared enough to be ahead of the race.
1. Federal Contract Requirements
If you want to enter into a government contract, you should know that that it comes with extensive laws and regulations. Make sure you are well-versed in the requirements of the contract before proceeding. Other steps you can take are to register with the Federal Contractor Registry, know your company’s classification as per the North American Industry Classification System and have your nine-digit code after signing up for a Data Universal Numbering System code.
Some contracts use both federal and state money, so you may have to register with your state. If you’re not sure how to go about it, check with the US Department of Labor.
2. Federal Contract Regulations
Government contracts are governed by some key regulations that you should be aware of. The Davis-Bacon and Related Acts (DBRA) directs wage rates and related reporting for federal contracts exceeding $2000. Similarly, The Service Contract Act (SCA) governs accountant and janitorial services of federal service contracts. Understanding and following what applies to your company is crucial.
3. How to look for Federal Contracts
Government contracts can be extremely rewarding and can result in a continuous stream of revenue for you. The competition for most of these contracts is extremely high and you may need to do your bit of research. There are set-aside contracts where women-owned, disabled or veteran-owned businesses can qualify. These contracts have limited competition so you’ll have a greater chance of succeeding than with contracts that are open to all.
If you’re looking for a database to start you search on government contracts, here are some platforms that may be of use to you
- SubNet
- If you are a subcontractor for a party that is already involved in government projects as a contractor, SubNet is a great platform to look for subcontracting openings.
- The System for Award Management (SAM)
- SAM is a primary portal for you to look for contracting opportunities. Contracts exceeding $25,000 are advertised here and is run and owned by the Federal Government.
There are a number of databases that are used by government agencies to find contractors. You can make a profile on them and put yourself out there. Profiles from SAM are often included in Dynamic Small Business Search database which gain give exposure to companies.
This article is aimed at giving you an idea from where to start in you’re looking to secure a government contract. Of course, the more information you have the better, but understanding the basics is an important prerequisite.
Thousands of contractors throughout the country rely on Certified Payroll Reporting to simplify their prevailing wage reporting, join them today by clicking here to contact us.
