Government Contracts 101

You might think that government contracting requires you to decode a set of complex rules and regulations before you ever see success. But that’s not the whole story – not even close. You have thousands of opportunities to do business with the government, and many of those opportunities require your skills, so take the time to learn how you can benefit from a government contract.

At each level of government, various rules and regulations dictate the conditions under which you can do business with various agencies. However, with proper preparation and strategic planning, you can enjoy a long and successful career in government contracting.

According to the National Contract Management Association (NCMA), private industries engaged in over 11 million transactions with the federal government in 2005. “...[G]overnment contracts include hightech, national defense research and development projects like the National Missile Defense Program, as well as more mundane items, such as ropes, chains, cables, pumps, plumbing, valves, hand tools, instruments, furniture, toiletries, live animals, motion pictures, health services, real estate, insurance, and food,” according to an August 2007 Contract Management article by Richard Lieberman and Jason Morgan.

Most government contracts include language aimed at ensuring equal opportunity for disadvantaged businesses, veteran-owned businesses, and women- and minority owned businesses. If your business is certified as a special enterprise, or located in a special, economically disadvantaged zone, you have an increased chance to win certain contracts over your competition.

Before you engage in government contracting, empower yourself with knowledge. The Diversity Business Resource Center's Government Contracting Portal was developed to help you navigate the path to successful government transactions.

4 Things to Know About Government Contracting

1. Because you are dealing with the government, you can take advantage of the Right to Know law. Most of the information you need to be successful in government contracting is public information and you have the right to certain documents like past procurement history, list of bidders, winning bids and proposals, and awarded contract information like pricing, contract length and point of contact information.

2. Armed with the knowledge you obtain from inspecting public documents, you can determine if the government is buying what you are selling. You may have a great product or service, but if the customer (and the government agency is just another potential client) has no need for it, you have to decide whether to move on or convince them they need to start buying it.

3. Once you determine that the government agency is a potential customer, you then need to determine if you have what it takes to be successful. Many government contracts require that you pay prevailing wages, obtain bonding and insurance, be able to accept payment with a credit card, be willing to wait 45-60-90 days for payment, and so on.

4. You'll find many opportunities to perform “green” work for the government at all levels. New federal regulations require businesses to meet “green” compliance standards. Explore your options for supplying green products and selling green services at various levels of government.

The HUB Zone and Government Contracting

A HUB Zone is a “Historically Underutilized Business Zone,” or, a part of a town where poverty levels, unemployment rates, and barriers to economic growth are much higher than average. If your business meets certain demographic requirements, you may be eligible to secure HUB Zone-specific contracts.

The Veteran-Owned Business and Government Contracting

Veteran entrepreneurs are eligible for special government contracting opportunities set aside just for them. The United States Small Business Administration, or, SBA, offers assistance for veteran and disabled veteran business owners who are eager to enter the world of government contracting. The SBA's Office of Veterans Business Development can help you with the grants, loans, legal documents, and business certifications you'll need to do business with the government.