Growing Your Business - Win Government Contracts

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Using Federal Government Contracting to Grow Your Business

Federal Government contracting is an often scary and complex environment to many small businesses.

 

Big Government Spending = Big Business Opportunities For Small Biz 

Hi, In 1989 after graduating high school I entered the U.S.A.F. (Air Force). During my enlistment I noticed several "habits" that just seemed wasteful.

 

How to Finance Government Contracts and Projects

Selling products and services to the US government can be a very profitable enterprise. The US government can be one of the best customers your business can get.

 

How Federal Government Contractors Get Work

A government contract is specifically defined as “any agreement or modification thereof between any contracting agency and any person for the furnishing of supplies or services or for the use of real or personal property including lease arrangements.”

 

Expanding Your Business' Bottom Line Through Government Contracts 

Hundreds of U.S. companies sell the kinds of products or services that the U.S. Government is interested in buying or needs. Each year, the government purchases goods or services from private contractors that amount to 1 trillion dollars. How can your company benefit from this kind of business and where do you start?

 

Government Grants Versus Government Contracts
Knowing the differences between a government contract and a government grant can save you sweat, money, and time.

 

How To Win Federal Contracts By Selling To Smartpay Cardholders

Do you sell products or services that are priced under $25,000? Selling to Federal Government credit cardholders (SMARTPAY) is a “hidden secret”.

 

IT Consulting:  Implications of Choosing Government Contracts

Many IT consulting firms go after government contracts.  As an IT consulting firm, you should look into all the advantages and disadvantages of government contracts in order to insure less frustration and greater benefits.

 

SBA's 8(a) Program Can Help Some Companies Compete

The 8(a) Program (named after the section of the Small Business Act from which it comes) is an SBA program created to help small disadvantaged businesses better compete in the U.S. marketplace and within the arena of government procurement. The SBA provides business development, technical assistance and other services to the small businesses that are accepted into the 8(a) program.

 

GSA SCHEDULES – ACCELERATE YOUR SALES

The quickest and easiest way for any company to accelerate their sales in the Federal Market Place is to be a GSA Schedule Contract holder.     

 

Get Know About Contract Business       

Earning a GSA contract is the best way for a company to increase its sales and market its products and services in the Federal Market Place.      

 

US Government Sales & Marketing        

What’s the difference between selling to the US Government and selling to the Commercial market?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Using Federal Government Contracting to Grow Your Business

By Paul Flaherty

 

Federal Government contracting is an often scary and complex environment to many small businesses. Without the proper assistance of experts in the field it can also be dangerous to a small companies fiscal prosperity, but the risk is worth the rewards!!!!

 

Less than 5% of the businesses in the United States do business with the U.S. Government. The 1195 Federal budget was $1,518.3 BILLION DOLLARS! Approximately $1 billion in new opportunities in the services sector of Government contracting were available to bid on by private business each  day. The services range from Food Services and Janitorial projects to complex  space flight systems development.

 

Companies are winning and are awarded this amount in new contracts daily.  Where is our part as a small business concern in this multi-billion dollar  marketplace?

 

The Government uses two techniques to procure products and services which  have values over $25,000.00 per year, Invitation for Bids (IFB's)  and Request for Proposals (RFP's).

 

The IFB is an advertised procurement in which contract award is based  on upon award to the lowest priced responsible bidder. The bid must offer  performance and delivery at least equal to the minimum standards established  by the IFB.

 

The RFP will often require a full Scope of Work (SOW) response (how the  project will be performed, on what schedule, and by whom), the key personnel  who will be assigned to the project, as well as a full company qualifications  package.

 

The way in which the Government procures these contracts are changing  rapidly. President Bill Clinton's budget message is clear and target  two principle areas:

 

1. Keep deficits on a downward path.

 

2. Continue to invest in long-term economic growth, in fighting crime,   and in the skills of our children and workers.

 

The trends in Federal Contracting that have an impact on the small business sector are:

 

1. Procurement Reform - Streamlining Federal procurement was a specific target of Vice President Gore's National Performance Review Report Issued in September 1995, focused on creating a Government that works better and costs less. The report made nearly 400 recommendations for streamlining the Federal Government while improving the quality of service to the nation's citizens. This has ignited procurement reform legislation that will re-shape the Federal procurement process. For example, the expected changes in the current Senate Procurement Bill (S. 1587) include no CBD notices for contracts less than $100,00 if electronic commerce (Bulletin Boards) exists, small business provisions aimed at encouraging bids by small disadvantaged business Government wide and streamlined procedures that will take less than a month to complete.

 

2. National Performance Review (NPR) - Impact on Information Technology - Based on the market research firm Federal Sources., headquartered in the Washington, D.C. area, the NRP will generate $10-$20 billion in new business opportunities between 1994-1999. The outsourcing its support services and procuring information technology systems to increase the productivity and effectiveness of the federal workforce.

 

3. Health Care Reform - Based on the Clinton Administration's current plan, a new health care plan will be enacted this year. Although there are still issues to work out, market research firms are forecasting significant opportunities to result from this reform initiatives include imaging, data entry technologies, ID cards/smart cards, multimedia and  business process re-engineering. This will open up unlimited opportunities for small business concerns nationwide.

 

4. Proposal Quality - A Washington D.C. technology publication recently issued a contractor report on "Winning Proposals Win Bids," underscoring the link the government is acknowledging between the quality of the proposal and the quality of work the contractor will perform under contract. IN a recent RFP, in section M "Selection Criteria", the following statement was made "The offerors ability to follow the proposal instructions set forth in the solicitation will also be considered to be an indication of the offeror's ability to follow instructions should they be awarded a contract as a result of this solicitation.

 

5. Smaller, Shorter Duration Technology Equipment Buys - According to the Government's internal policy document the period of performance of Indefinite Delivery/Indefinite Quantity (IDIQ) hardware buys has been reduced significantly from five years to two and the size of these contracts has also been significantly reduced. This will result in more opportunities, more solicitations and more potential contract opportunities as these become within reach of small to medium-sized businesses.

 

The time to begin to get involved in Federal Government contracting is now. Companies currently involved, and who are successful in, Federal Government contracting started out with smaller contracts and worked their way into larger and larger contract awards.

 

Much of the new Source Selection Board criteria is based upon past performance, not only in Federal Government contracting, but in commercial contracting as well. The use of our current contracts as references is essential to a successful proposal to Government agencies.

 

The helpful hint for this month is to call your major clients and have them sign recommendation letters for your company.

 

In summary, Government contracting allows many businesses to have a bevy of profitable, long term contracts (normally 3-5 years) in your corporate receivables listing. This allows for stability and volume increases. Begin to prepare your company today for long term growth in the expanding Federal Government marketplace.

 

Paul S. Flaherty

Government Contract Services, Inc.

 

Article Source: EzineArticles.com

 

 

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Big Government Spending = Big Business Opportunities For Small Biz 

by Al Champlin

 

Hi, In 1989 after graduating high school I entered the U.S.A.F. (Air Force). During my enlistment I noticed several "habits" that just seemed wasteful. For example, a mad rush in September to spend every dime our office had allocated to it, on useless and unneeded things. Why? Because the common logic was that if they did not use all of the money they were granted, their budget would be cut in the next fiscal year! Welcome to the government!  

 

After exiting the Air Force I became a Federal Contractor for the FAA. I did the same job in the civilian market that I did in the Air Force, but the rate of pay was tremendously higher. As I worked with many federal agencies, I continued to witness waste, abuse, neglect.... you name it. However, I was making good money as a contractor, so none of my business, I thought.   Although depressing, our government will most always waste. It simply is too big not to. Again bad news for taxpayers, but good news for entrepreneurs. As federal employees become more and more expensive, government agencies at every level are turning to contractors to do the work.  

 

Many people when hearing "contractor" immediately conjure an image of a guy in a hard hat with a tool belt on. In today’s world, contractor can mean anything, regarding what it is the contractor actually does. I was a service contractor, which means just that. I provided a service to the government. Their are over 1,000 job categories that the Federal Government contracts for.  

 

Last year alone, the Federal Government spent $532 BILLION dollars on contracts! A new record. Much of that money went to new and small business entities. The government has a required amount of work that must be awarded to small business concerns! In some cases their are not enough available small businesses to accomplish all of the work. I suppose that is why the new classification "emerging small business" was created. These are what used to be small businesses, but who have grown beyond the small business threshold either by annual sales or employees.  

 

For nearly any entrepreneur, their is more opportunity in this sector of our economy than anywhere else in my opinion. Think about it like this, the Federal Government is the largest business in the world, yet only 5% of existing businesses do business with them!  

 

The SBA has staff and resources to assist new small business concerns to get going. I encourage anyone with an entrepreneurial spirit consider this huge market. As always, you can check my website for more information, or to consider my course on this subject.

 

 

About the Author:

Al Champlin has over 15 years of successful government contracting experience. He now helps his students break into this little known, but very lucrative industry. To learn more visit his website at  http://www.contractingriches.com

 

Article Source: ArticlesBase.com

 

 

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How to Finance Government Contracts and Projects

 

by: Marco Terry

 

Selling products and services to the US government can be a very profitable enterprise. The US government can be one of the best customers your business can get. They buy almost any product and service that exists. By law, they are structured to help small business owners succeed. And, unlike most commercial customers, they pay their invoices quickly. If you work with government projects you know that you need to treat this customer very well and be sure that you always deliver what you promised – on time and at the right cost. 

 

So, what happens if you bid for a government contract, win it, and realize that you don’t have the capital to deliver? One alternative is to try and go to an institution to get business financing. Many institutions will provide a business loan (or similar financing) to government contractors. But as you know, qualifying for business loans can be very difficult, especially for startups. Institutions will review your business plan, along with your company’s financial statements, management team and track record. Because of this, many startup companies find that obtaining financing can be very challenging. 

 

This problem is particularly challenging for product re-sellers. Most product re-sellers that work with the government need to pay their suppliers before they get paid by the government. Because of this, they can only compete for certain bids since their capital limits the size of the projects that they can pursue. Some resellers are able to negotiate better terms with their suppliers, basically enabling them to wait until the government pays them first. 

 

There are two other alternatives that can help you grow. They are invoice factoring and purchase order financing. Both are alternative sources of financing and can be ideal for government suppliers. 

 

Let’s looks at two examples to see how invoice factoring and purchase order financing can help your company grow. Let’s say that you have a government purchase order that you have completed and will get paid in 30 days. Let’s also say that your supplier needs to be paid in 10 days. The problem could easily be fixed if you could get an advance payment on your government invoice. That is exactly what accounts receivable factoring can do for you. It provides you with an advance on your invoice that enables you to pay your supplier on time. This enables you to maximize the use of your supplier’s payment terms to your advantage, helping you grow your company. 

 

Now let’s look at a more complex problem. Let’s assume that you won a government contract that is substantial and you have a supplier that is demanding an advance payment before shipping the goods. This situation is very common for startups because few of them have any type of supplier credit. In this case, the solution is to use po financing. PO funding helps you pay your supplier so that the government order can be fulfilled. The transaction is then settled once the government receives the goods and pays for them. 

 

Both receivables factoring and PO funding are available to both new companies and established companies. Both are relatively easy to obtain and can be set up relatively quickly. This makes it an ideal solution for growing companies.

 

About the Author:

About Commercial Capital LLC 

 

Are you looking to finance your government contract or project? We are a leading  factoring company and can provide factoring financing for government contractors. For a factoring quote, please call (877) 300 3258.

 

Article Source: ArticlesBase.com

 

 

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How Federal Government Contractors Get Work

 

By Tom Gardner

 

A government contract is specifically defined as “any agreement or modification thereof between any contracting agency and any person for the furnishing of supplies or services or for the use of real or personal property including lease arrangements.” (41 CFR Part 60-250.2) In other words, if you provide goods, services, or facilities that any given government wants to use, and you can come to an agreement about it, you can be a government contractor. Of course, if the agency in question is part of the federal government, you become a federal government contractor.  

 

The first thing to get is a DUNS number. DUNS stands for “Data Universal Numbering System” and it’s used by the federal government to keep track of contractors and their locations. You need this number in order to register with the Central Contractor Register, which is used by the government’s information exchange system.  

 

Where most people run into the headaches is all of the regulations the government requires before they’ll sign a contract with you. First off, for a lot of government work it helps to have a security clearance. The Lockheed Martin Corporation, just to pick the biggest federal government contractor out there, does not need security breaches when they’re working on the latest greatest plane for the Air Force. It wouldn’t do our forces much good if opposing military knew all of the specs and capabilities of our new planes. Likewise, in the civilian sector, any federal government contractor in charge of data migration for the CIA or FBI will not get the contract if they can’t assure the agency’s information security.  However, there are plenty of federal government contracts that only require a minimal security clearance, such as leasing out office space to a local branch or building new roads.  

 

The other regulations that can get entertaining are the employment requirements. In order to get federal contracts, you must abide by the Federal Contractor Job Listing Program. You have to try and hire a certain percentage of your total work force from disabled, Vietnam-era, and other eligible veterans. In addition, you’re required to immediately list any and all job openings with the nearest State Job Service Office.  Exceptions to that requirement are jobs that are executive, top management, filled from within the company or that will last less than three days.

 

If a given job doesn’t fit one of those categories, you have to give the State Job Office a chance to fill it. Qualified special disabled veterans, Vietnam veterans, and veterans who served on active duty in any war or action for which a campaign badge was authorized get priority referral. This doesn’t mean that you have to hire them, but it does mean that they’ll get first crack at it. In addition, if you’re a federal contractor that hires subcontractors, you may have to make sure that your subcontractors follow these requirements as well. If your subcontractor gets more than $25,000 from you, they have to abide by these requirements or both of you are held accountable.

 

You also have to have written affirmative action plans if you have 50 or more employees and $50,000 or more in federal government contracts.   Then, of course, there’s the specific regulations you’ll need to know for your particular business specialty, which is way too huge to get into here. The most important thing to know about federal contracting is that it can be a quite fulfilling way to serve your country while making a living as long as you don’t mind study. You have to keep up with all the latest regulation and policy changes, you have to know how to structure your bids, and of course you have to do your market research. Best of luck!

 

 

About the Author:

Written by Sabre Consulting, Copyright 2008, All rights reserved. If you’d like to find out more about how 

 federal contractors find work  visit our  website

 

Article Source: ArticlesBase.com

 

 

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Expanding Your Business' Bottom Line Through Government Contracts  

by Tom Knapp

 

 

Article Source: GoArticles.com

 

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Government Grants Versus Government Contracts
By David Pierce 

Knowing the differences between a government contract and a government grant can save you sweat, money, and time.

 

Knowing the differences between a government contract and a government grant can save you sweat, money, and time. Knowing the differences between these two major financial support will not only give you a clearer view, but will also guide you on choosing the best funding assistance that you can ask from the government.

 

Generally, government contracts and grants are both government programs, in which, the government allocates a certain amount of money to help a particular small business.

 

Since they are both from the government, many people are confused whether government contracts and government grant are the same or not.

 

In essence, government contracts refer to acquisitions while government grants refer to assistance. Hence, from that point of view, it already states the big difference between the two.

 

Government Contracts

 

In the United States, the federal government is considered as one of the biggest contractor. Normally, the federal government requires consumer products like milk, sugar, etc; military products such as guns and other types of ammunitions; and services like consulting agencies or contractor services.

 

Basically, government contracts are considered as “award instrument” setting up an equally binding lawful bond between the seller, known as the contractor, and the government, known as the buyer.

 

In government contracts, the seller is obliged to supply or distribute services, supplies, or goods to the government. The seller’s operative and serviceable qualities are described in the contract.

 

The actual process, in which, the government purchases supplies, services, goods, or products is known as acquisition. Acquisition is made through the “award of contracts.”

 

Normally, the government acquires goods, services, etc. for their own utilization. The government can also provide these acquired goods and services for use by “non-government organizations,” taking account of the “general public.”

 

Consequently, government contracts are not limited to services and goods. It may also include research and development projects. This type of government contract is typically bestowed for a particular technical, methodical, or systematic inquisition and analysis aimed towards specific parts of “research and development,” which the government considered necessary.

 

Research and Development Government Contract include the following:

 

1. Utilization of comprehension and information obtained from research, aimed at producing devices, models, materials, systems, or methods to uphold the necessary research, such as techniques to complete “novel improvements” to systems and equipments on hand.

 

2. Plan of demonstration procedures, activities, processes, and techniques that completely support the operation of research and development.

 

3. A scientific exploration, rigorous study, or specific scientific investigation intended for acquisition of more complete scientific information or comprehension

 

4. Viability of distributing or employing “research and development” results to group situations or to the community

 

Like government grants, businesses can also generate notable income on government contracts. However, it has long been proven that the government usually takes time before they can pay the purchased amount, usually 4o days.

 

Hence, it is best to develop counter measures to accommodate this kind of situation because it is just the way things are in the government.

 

Government Grant

 

As mentioned, government grants refer to the assistance that government agencies provide to small businesses or any other type of businesses that have technological developments.

 

Even if it appears as if the government is assisting small businesses on their new endeavors, the government is the one who is chiefly benefiting from the program. By providing assistance to businesses that develop new technologies or innovations, the government is also strengthening its economy by creating a well-built “economic infrastructure.”

 

Experts say that government grants are considered as the most remarkable form of financial support. Usually, government grants are given out in monetary forms and are usually utilized for a special function.

 

The best thing about a government grant is that it is not a loan that you have to reimburse or settle up in the future.

 

Sounds good? Read on.

 

The problem with most businesses in considering government grants over government contracts is that they consider grants as free money. What they do not know is that not all business can avail of government grants.

 

To avail of government grants, your business should have a new invention or should be developing your existing technology to enhance operation and functions of your services or goods. Hence, one cannot simply rely on government grants to fund his or her business.

 

Indeed, government grants and contracts are extremely different from each other, but they both carry out positive results in return.

 

David is the owner of   Government Grants Made Easy,   A website devoted to help the average person get grants.

 

Article Source:Article99.com

 

 

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How To Win Federal Contracts By Selling To Smartpay Cardholders
by Robert  L Moment 

 

 Do you sell products or services that are priced under $25,000? Selling to Federal Government credit cardholders (SMARTPAY) is a “hidden secret”.

 

Federal contracting opportunities under $25,000 are not advertised. Contracts under $25,000 present special opportunities for small businesses. To PLAY in this federal credit card game businesses MUST have a merchant account. Federal agencies save money when they make small purchases using credit cards. Federal end-users with purchasing power generally purchase products and services from small businesses in there local market. Selling to credit cardholders is one of the quickest ways to accelerate your success to winning a federal contract.

 

Independent professionals and small businesses who build solid relationships , market products and services as a customized solution and “keep in touch” throughout the fiscal year can consistently win federal contracts.

 

Federal contracts (Micro-purchases) $2,500 or less federal buyers may purchase from any small business without comparison shopping.

 

Small purchases ($2,500 to $25,000)are subject to more formal contracting requirements wherein the federal buyers must obtain three informal quotes by phone, fax, email or mail.

 

Here are 4 principle reasons this “hidden” market is ideal for small businesses:

 

* Relationship driven contracts

* Prompt payment

* Potential for multiple contracts throughout the fiscal year

* Less competition – not publicly advertised

 

The Federal credit cardholder single purchase limit varies. Here are a few examples of single purchase limits:

 

* $2,500*$10,000

* $25,000*$100,000 (note: this figure is not a typo)

 

How do you find Federal credit cardholders(SMARTPAY)? Under the Freedom of Information Act (FOIA) Small businesses can make a formal written request to obtain a list of federal credit cardholders by contacting the Principal FOIA Officer at each federal agency you want to market your products and services to.

 

If you are willing to do some homework and be different from the competition there are countless federal opportunities worth pursuing in the “hidden” federal credit card micro and small purchase market.

 

 

 

Robert Moment is an expert business strategist and author of , "It Only Takes a Moment to Score". Robert show entrepreneurs how to successfully build and grow profitable service based businesses. Visit http://www.howtostartyoursmallbusiness.com and download the FREE Special Report "17 Profitable Ways to Turn Your Content into Wealth".

 

Article Source: http://www.submityournewarticle.com

 

 

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IT Consulting:  Implications of Choosing Government Contracts

by Joshua Feinberg

 

 Many IT consulting firms go after government contracts because they are attached to misperceptions about this type of work being easy money.  Most IT consulting terms will end up being frustrated by the amount of work associated with government contracts, and therefore have to consider the various pros and cons before getting involved.

 

Pros of Government Contracts for It Consulting Firms

 

The biggest advantage to working with a government agency for IT consulting firms is the potential money that can be made.  While there are both small and large contracts available in the market, the larger contracts can pay enough to sustain IT consulting firms far into the future with guaranteed paychecks.  The government, unlike small businesses or individuals, will not run out of money all of a sudden. 

 

Working with government contracts also means you will be able to get in contact with people easily because public directories exist both online and on paper with names and job titles of decision makers.

 

IT consulting firms with a good relationship with government agencies will find themselves with many advantages, including future referrals that could lead to more contracts in the future.

 

Cons of Government Contracts For It Consulting Firms

 

While payment is guaranteed in government contracts, the paychecks could come very slowly.  There will also probably be time delays for approvals of aspects of jobs because there may be multiple decision makers involved.  Sometimes similarly, one decision maker might turn a job down and cause you to lose a contract. 

 

Often with government contracts there is also a great deal of paperwork, so you will probably spend a lot of time filling out documentation and forms.

 

As an IT consulting firm, you should look into all the advantages and disadvantages of government contracts in order to insure less frustration and greater benefits.

 

Copyright MMI-MMVII, Small Biz Tech Talk. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

 

 

 

Joshua Feinberg helps computer consultant business owners get steady, high-paying clients. Sign-up now for Joshua’s free audio training that shows you how to use field-tested, proven Small Biz Tech Talk tools at http://www.SmallBizTechTalk.com/blog

 

 

 

Article Source: http://www.articlerich.com

 

 

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SBA's 8(a) Program Can Help Some Companies Compete

by Tim Knox  

 

 Q: A friend told me that as a woman of Native American descent I might be eligible for a special SBA program that will help me start a small business. He said I could compete for government contracts through this program. Can you tell me what SBA program he's referring to?

-- Clara P.

 

A: Your friend is probably referring to the Small Business Administration's (SBA) 8(a) Business Development (BD) Program. The 8(a) Program (named after the section of the Small Business Act from which it comes) is an SBA program created to help small disadvantaged businesses better compete in the U.S. marketplace and within the arena of government procurement. The SBA provides business development, technical assistance and other services to the small businesses that are accepted into the 8(a) program.

 

The 8(a) program is reserved for what the SBA calls "socially disadvantaged individuals." Socially disadvantaged individuals are defined as those who have been subjected to racial or ethnic prejudice or cultural bias because of their membership in a disadvantaged group.

 

The SBA has designated the following groups as socially disadvantaged:

 

· Black Americans · Hispanic Americans · Native Americans (Native American Indians, Eskimos, Aleuts, and Native Hawaiians) · Certain Asian Pacific Americans · Other individuals who can prove that they meet the SBA's criteria to be considered socially disadvantaged

 

One point where your friend is incorrect is that the 8(a) program is for new companies. The 8(a) program is primarily for companies that have been in business for a minimum of two years, though that rule may be waived if your company is able to meet some pretty strict management, financial, and performance criteria.

 

Obtaining 8(a) status is no guarantee that a company will be successful in obtaining government or other contracts, but it certainly doesn't hurt. The Small Business Act mandates that all small businesses have the opportunity to provide goods and services to the U.S. government. To help ensure that mandate, the SBA negotiates annual procurement preference goals with every Federal agency and reviews each agency's results to make sure the goals were met.

 

The statutory goals are: 23 percent of all prime contracts go to small businesses; 5 percent of prime and subcontracts for small disadvantaged businesses; 5 percent of prime and subcontracts for women-owned small businesses; 3 percent of prime contracts for HUBZone small businesses; and 3 percent of prime and subcontracts for service-disabled veteran-owned small businesses.

 

A HUBZone (Historically Underutilized Business Zone) is a designated area within urban and rural communities that has been given preferential contract award consideration in an effort to stimulate economic development. A company may qualify for HUBZone status if it is owned or controlled by one or more U.S. citizens, has at least 35 percent of employees who live within the designated zone, and has a principal office located there. HUBZones are a whole 'nother topic that we can discuss at another time. Suffice it to say that a company that obtains both 8(a) and HUBZone status may be entitled to double dip in the government procurement trough, that's why you often find a number of 8(a) companies specifically moving into HUBZone areas to take advantage of the perks both programs offer.

 

The U.S. government purchases billions of dollars in goods and services every year, everything from staples to those wonderfully expensive toilet seats. Obtaining 8(a) status allows small businesses to compete for a portion of that business.

 

The basic requirements for applying for 8(a) status are your company must be a small business as defined by the SBA, must be owned and controlled by one or more socially and economically disadvantaged individuals who are U.S. citizens, and must show a potential for success. The SBA defines a small business as "one that is independently owned and operated, is organized for profit, and is not dominant in its field."

 

As expected, the 8(a) program has its fans and its detractors. It's fans are those companies that obtain 8(a) status and thereby get preferential treatment when competing for government procurement contracts.

 

The program's detractors are typically those companies that fail to obtain 8(a) status or that do not meet the definition of socially disadvantaged, i.e. businesses owned my white American males (that's a can of worms we won't open this week).

 

You can learn more at the SBA's website (sba.gov) or by calling your local SBA office.

 

Here's to your success!

 

 

Tim Knox

Entrepreneur, Author, Speaker

Tim Knox is a nationally-known small business expert who writes and speaks frequently on the topic.

For more information or to contact Tim please visit his sites below.

http://www.timknox.com

 

Article Source: http://www.submityournewarticle.com

 

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GSA SCHEDULES – ACCELERATE YOUR SALES

By Synapse  India

 

The quickest and easiest way for any company to accelerate their sales in the Federal Market Place is to be a GSA Schedule Contract holder. The GSA Schedules have been expanded to allow almost every industry the ability to sell products and professional services to the Federal Government.

 

 What is the GSA FSS Program?

GSA's Federal Supply Schedules, also known, as Multiple Award Schedules (MAS) are contracts that allow federal customers to acquire products and services directly from commercial suppliers.  The MAS program mirrors commercial buying practices more than any other procurement process in the Federal Government.  It provides a vast array of commercial items and services that can be purchased quickly and easily from among qualified contractors and is the preferred contracting vehicle for doing business within the Federal Marketplace. 

 

How does GSA award these contracts?

GSA awards competitive contracts to those companies that offer commercial services or products, at varying prices, provided that prices are determined to be fair and reasonable.  GSA seeks to receive the same or better discounts offered to your best customers - a negotiation objective commonly known as "most favored customer" pricing. 

 

What are the benefits of being a GSA Schedule Contract Holder?

There are many advantages to being a GSA Schedule Contract Holder, as outlined in Figure 1 below. Government agencies placing orders against the GSA Schedule contract follow quick and easy ordering procedures, do not need to, synopsize requirements, make determinations of fair and reasonable pricing, or consider small business set asides; the GSA Services Acquisition Center will complete these requirements.  Therefore, agencies that use the FSS and qualified contract holders can be assured that the procurement process will be the best value available and will comply with all applicable regulations. 

 

 How will Agencies or State and Local Government's place orders against our GSA Schedule Contract?

Under the micro purchase threshold, the ordering activity should make a "best value"

determination and place the order. Between the micro purchase threshold and $25,000, the ordering activity should review at least three contracts and make a "best value" determination. For orders above the maximum order threshold, additional contracts should be reviewed, ordering activities should seek a price reduction and they should make a "best value"

 

Why should your company become a GSA Schedule Contract holder?

GSA Schedule awards have become the procurement method of choice for all Federal Agencies resulting in today's $50 billion a year market (FY 2007).  Predictions indicate that it will become nearly impossible to do business with the government without a GSA Schedule Contract.  For small to mid size companies, the news is even better.  In fact, government agencies actively seek small businesses when buying goods and services from commercial contractors.  And, you don't even have to be a 'Beltway Insider' to receive government contracts - a perceived misconception.  Commercial companies outside the Washington DC corridor do more and more business than ever before.  To participate in this market - you must have a GSA

Schedule contract!

 

SharpMinds Professional Services-                      

Established in 1998, SharpMinds is an innovative company offering the best in Government contract and acquisition support services. SharpMinds was formed by a group of strategic-thinking contracts and legal professionals who understand that the value of sharp-minded contracts professional is worth its weight in gold.

Our professionals possess expertise in the areas of Federal Government, commercial and international contracting. We formulate competitive strategies based on an understanding of your company's services/products and pricing practices for the most preferred contracting vehicle in the Federal Market Place - the GSA Federal Supply Service (FSS) Schedule.

 

In addition, SharpMinds is fully committed to assisting our clients with the evolving rules and regulations in government contracting. Our professional staff will anticipate and evaluate new legislation and regulations as it pertains to your schedule and keep you abreast of the latest happenings.

 

~ GSA Multiple Award Schedules Benefit Information

 

Contract Period-

- Valuable long-term relationship with federal customers

- 20-year contract:  5 year base period with three (3) five-year renewable options

 

Government Access-

-  Internet-ready access to all federal agencies in several government-hosted databases and on-line systems (GSA Advantage!, E-Buy, Schedules E-library, mailing lists)

- Shortened time to issue contracts (14 days compared to 268 days for conventional contracts)

-  Avoids open competitions

- GSA actively seek small business buying through schedule contractors

 

Income Potential-

- One-time negotiations based on your commercial selling practices with "most favored customer" pricing

-  Request For Quotes (RFQs) at your desktop!

-  Task order awards are based on Best Value; all applicable Laws and regulations have been applied; prices have been determined to be fair and reasonable 

-  Direct agency sales and delivery

-  Customer credit guarantee (federal government)

-  On time government payments, electronically

-  Commercial buying practices and price parity

-  Ability to introduce new & emerging technologies 

-  Can be used by all Federal agencies and the District of Columbia; State contracting opportunities with IT schedule

-  Unlimited partnering opportunities and access to other schedule-holders via contractor team arrangements

-  Blanket Purchase Agreements (BPAs) can be established

 

Contract Administration & Overhead-

-  Minimal with GSA schedules contract

-  Reporting and payment of .75% Industrial Funding Fee quarterly (priced in agency sales)

-  Ease of processing government orders

-  Simple invoicing

-  Receipt of payment faster (Usually within 30 days)

 

Contract Modifications-

-  Greater flexibility

-  Economic price adjustments (EPA) annually

-  Ability to add new services/products  

 

 

Myself webmaster of www.sharpmindsinc.com, a recognized leader of strategic consulting, GSA advantage and contract management.

 

Article Source: http://www.free-articles-zone.com

                    

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Get Know About Contract Business
By Synapse  India

 

Earning a GSA contract is the best way for a company to increase its sales and market its products and services in the Federal Market Place. Through the GSA Schedules, a company becomes eligible for selling almost over 4 million commercial products and professional services to the Federal Government directly. Hence, it gets the chance to earn more profit and success as well.

 

If you are wondering how you can secure contracts that will open new doors to earn profits, in this article you will find some relevant information.

 

In this developing world, a person cannot run his business alone. He needs to be supported by his partners, suppliers, debtors, creditors and other agencies to get the success and satisfying his ultimate users. For establishing effective and useful relationships with different agencies, a person needs to enter into contracts.

 

Entering into contracts mans, you need to formulate such strategies or common agreements points under which both the parties feel comfortable to work and profit can be shared too. Making, negotiating and formulating contracts is not an easy task. A company needs to think thoroughly and a planned strategy has to be followed to yield the desired results.

 

There are numerous contract administration agencies, effectively working in the market. The purpose of functioning of these agencies is to draft a profitable agreement between parties to serve their targeted goal and effectively serve their common interest.

 

You can easily contact these agencies and meet their experts and able professionals. These highly skilled and knowledgeable professionals undertake the work of studying the possibility of the proposed deal. They also evaluate the both the sides of the coin and frame in the most effective and profitable manner.

 

Involving professionals into deal will also help you to chalk out a professional deal keeping the factors of the market and the interest of the parties involved in it. 

 

 

Myself webmaster of SharpMindsInc.com, a recognized leader of strategic consulting, GSA advantage and contract management cover the federal government.

 

Article Source: Free-Article-Zone.com          

 

 

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US Government Sales & Marketing
 

By Phil Morettini

 

What’s the difference between selling to the US Government and selling to the Commercial market?

 

It’s like night and day.

 

Sales and Marketing to the government is truly the flip side of commercial activities. You really can’t believe how different these markets are--until you’ve actually come from one side--and tried to go over to the other. I emphasize, tried, because it usually doesn’t work out very well!

 

First of all, in the Government world, the term "marketing" is a standard term. But its meaning in the government world is very different from its definition in the commercial world. When you hear someone talk about “Marketing” to the government—they really mean SELLING. That’s in large part because those businesses that deal primarily, or exclusively, with the government really don’t do much in the way of marketing in the commercial sense.

 

Everything's Different

 

In a traditional government contractor, there is usually no one with a sales title. There are often a couple of people with grand titles like “Vice President of Marketing” or “Vice President of Business Development”. These people have very little in the way of real marketing responsibilities--they are the chief sales people of the company. They are usually former government employees, and in the case of a military contractor, often an ex-general or ex-colonel. Key to their hiring was that they are very well connected in the government or service branch that the company is targeting. Included in their charter are some “light” Marcom activities--putting together data sheets, and coordinating a few targeted trade shows. In addition to the dedicated “Marketing People”, much of the technical selling of individual deals is done at the project manager level.

 

Of course, it’s not just the sales & marketing functions that are so different in the government world vs. commercial. Almost everything is! The typical government contracting business model more closely resembles a grocery store, than it does a typical high tech company. Margins are very thin, but profit is pretty much guaranteed once you’ve secured a contract. Up front R&D (“IR&D” in government terminology) is generally discouraged, as it’s a great way to lose money. IR&D can also be funded by the government; that is utilized heavily, but it has limitations. Spending an amount (without government funding) that would be modest in the commercial world on up front R&D can easily wipe out the thin margins that the government contracting business yields. The government contracting model works like this: Hire an ex-employee from the agency that you are targeting your “marketing” at. Leverage that relationship to secure the contract, with a minimum of up front product development expenses. Then hire the people to staff the project, and of course do a good job executing the project. Add new “marketer” from another agency and repeat.

 

So for those purely commercial readers out there, this must sound pretty different than what you’re used to. That’s only because it is! There is no Product Marketing/Product Management function in a true government contractor. In the government world your “market” is one customer, or a small number of customers, who are basically specifying the product for you. There are a few sales people, but as I mentioned earlier, they’re called marketing people. The actual marketing tasks are few and far between—collateral creation, trade shows, a party here or there.

 

Difficult to make the Jump

 

As you imagine from the discussion above, it’s difficult to move between the two worlds. That’s the reason that nearly EVERY government contractor that has tried to enter commercial markets in any major way has failed abysmally. Government-oriented companies typically don’t have the entrepreneurial cultures found in commercial high tech companies. They lack fundamental Market Evaluation and Product Planning skills required for success in the commercial world—because it’s not required in their core market.

 

Senior managers at Government contractors are often profoundly aware of all of this. They may intellectually understand that they need to do things differently for their companies to make the jump to the commercial side. But especially if they have been very successful in the government business, a difficulty emerges that won’t be obvious on the surface. And this is the worst of all: Successful senior managers tend to fall back on their what I like to call their “Common Business Sense”, when they encounter new or stressful situations. Often they don’t even realize that they are doing it. Unfortunately, when an executive with a government contractor utilizes their “common business sense” to make a decision involving a commercial business, the results can be disastrous. The “right way” of doing things in the two businesses are so fundamentally different that it would work out better if they took the OPPOSITE path from what their instincts told them. Not an easy way to do business.

 

Commercial to Government

 

So what’s a C-level manager in a commercial company, which would like to secure some government orders, to do? Given the different business cultures of the two markets, it seems pretty daunting. Those poor government guys who have tried to go commercial have had their hats handed to them—does the same fate await me?

 

Fortunately, it doesn’t necessarily need to be so bad. If you are selling services, or highly customized products, you may need to closely replicate the government-contracting model, if you are going to be successful. If you are selling fairly standard products, however, it may be possible to gain significant government business leveraging your normal commercial marketing efforts.

 

A few years back, I was running a startup commercial software product group within a company that was otherwise a pure government contractor. It was a diversification effort for the company. Our sister groups within the company were all very successful, and extremely well connected within government contracting and procurement circles. I expected, and was promised, a lot of help in placing our products in large quantities within various government agencies and military branches. For a lot of different reasons, that help never materialized. But a funny thing happened—this startup software product group ended up with 40% of its revenue from US and foreign governments. This was without a government-specific product, no real marketing advantage provided by our well-connected parent, and no special government emphasis in our sales and marketing programs. Contrary to popular belief, if you have a great commercial standard product that has use within the government, the agencies and branches will find a way to purchase it. Our product was aimed at Network Administrators, and their needs were similar to their commercial counterparts. The government market is huge, and we did well in the government sector. With a few modest investments, however, we could have done even better. So what steps should a commercial company do to maximize its penetration in the government marketplace?

 

Tips for Success

 

Create a great product—Above all, your market research and product planning are the starting point to success. Make sure to include a few potential government customers in your upfront planning, which should ensure that you don’t miss any special requirements they might have. This is a huge market you don’t want to miss.

 

Have a modest entry-level price for your product—Even if in a production environment your product costs hundreds of thousands of dollars, or even millions, it’s very helpful to have an entry-level price of less than a thousand dollars. This will allow a motivated prospect to acquire your product initially by “going around” the laborious, lengthy, confusing—and often competitive—contracting process. Even if you have to go through a contract later to secure the full production purchase price, the bidding process may then be “written to your specifications”.

 

Hire an experienced government sales executive—This can NEVER hurt. It really helps having someone who knows his way around your target agencies, to head your Government Sales Division.

 

Place your products on the GSA schedule via an established Government Reseller—Getting on the GSA (Government Services Agency) via your own company is a long and complex process. For most commercial entities, it isn’t worth the effort. It’s much easier to give up a few margin points to a reseller already on the schedule. It’s much easier for him to add your products. They won’t do much for you in the way of promotion, and I’ve found that being on the GSA schedule in most cases isn’t REQUIRED to buy your products (although some will tell you otherwise). But it does make it easier for the customer inside the government, and if nothing else, raises their comfort level. They will know that they won’t face a major hassle to buy your product.

 

That’s my take on selling to the US government. Hopefully there’s a nugget or two in there that can help you. Send me a note with a few of your own tips.

 

Phil Morettini is the Author and President of PJM Consulting, a Management Consultancy to Software and High Tech Companies. PJM Consulting executes special, strategic projects and can also supply interim senior management in General Management (CEO, COO, Division Manager), Product Marketing, M&A, Distribution Channels and Business Development. You can contact Phil on the PJM Consulting Website,  or via email at info@pjmconsult.com.

 

 

Article Source: EzineArticles.com

 

 

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