Are you a small business looking to tap into the vast federal market, but unsure where to start? Success in federal contracting requires a combination of factors including being in the right industry, eligibility for certifications, and having a solid grasp of government procurement processes. From GSA Schedules and subcontracting opportunities to niche markets and contract size, understanding these key elements is crucial for achieving success in the federal market.

Contributing Elements for Success

Industry

Is your business in a sector where the federal government buys your products and services? This should be the first thing a company considers. What geographical area can you also offer your products and services? Although the government often purchases the majority of goods from afar, there are benefits to being local.

Eligible for a Certification

Your businesses will be given preference if you are certified. Certain certifications have greater weight with some agencies than others. Yet early in the process, you should check to see what federal (or even state or local) certifications your company qualifies for, and then submit an application for all of the certifications fit your company’s profile.

-8(a) – Minority Owned

-HUBZone – Historically Underutilized Business Zone

-WOSB – Woman-Owned Small Business 

-SDVOSB – Service-Disabled Veteran-Owned Small Business

GSA Schedule and other GWACS

Government purchasers can easily acquire goods and services from your company thanks to GSA Schedules and other Governmentwide Acquisition Contracts. Going with the flow, like everything else in life, typically produces better outcomes than going against it.

GSA Schedule also gives your company more visibility since GSA Advantage is the web portal that federal buyers utilize to find suppliers of goods and services when they do not already have a relationship with an incumbent. The current administration has placed extra requirements in theory in working through the GSA Schedule system

Subcontracting

Compared to the size of the small business direct to government market, the federal subcontracting market is sizable and accounts for around 70% of it. A company can get experience with an agency by working for significant federal contractors. Since most small businesses only interact with one or two agencies, working as a sub can help you gain insight into how an agency operates, what resources it requires, and who to contact.

Am I in a Niche Market

Niche markets can also be beneficial. I once had a job with a company that produced specialized shovels for putting out forest fires. Finding the proper person was difficult, but once they did, business flourished.

Contract Size

The Simplified Acquisition Procedures apply to contracts worth up to $250,000. In the absence of a suitable small company supplier, these contracts should go to small businesses, unless otherwise noted by the procurement officer. Companies in sectors where this level of contract is frequently awarded have an edge in the federal market.

Achieving success in federal contracting requires a thoughtful approach and considerations of the various contributing elements. By understanding the importance of industry, certifications, GSA Schedules, subcontracting, niche markets, and contract size, you can position your small business for success. If you're ready to take the next step and tap into the vast federal market, I always recommend contacting industry experts such as ez8a or Fedvital. Contact either or both today to learn more about how their expertise can support your business goals. They're happy to provide guidance and support to help you navigate the complexities of federal contracting. Neither charge for an initial consultation.