How To Win Government Contracts As A Beginner

Summary

This video explains how to start and succeed in federal government contracting, a recession-proof industry with over $500 billion spent annually. The speaker shares practical steps, including setting up a business, registering on Sam.gov, and obtaining necessary documentation like a tax ID and UEI. Tips are provided for existing businesses to expand through DBAs. Emphasizing the importance of bidding, the speaker also highlights the value of mentors and understanding contract requirements. The video encourages persistence and offers resources for navigating the process of securing profitable government contracts.

Takeaways

• 💼 The federal government spends $500 billion annually on contracts for products and services, making it a recession-proof market for businesses.
• 🏢 You need to have a registered business, such as an LLC or S Corporation, to start working with federal contracts.
• 🌍 Businesses headquartered in Puerto Rico are currently receiving additional federal support, creating an opportunity for companies there.
• 💡 Choose a company name that resonates with you, but make sure it's not already in use by searching online and through state databases.
• 📄 Existing businesses with specific names don't need to start new companies; they can file a DBA (Doing Business As) to use a more generic name when contracting with the government.
• 📝 To become a prime contractor with the federal government, you must register on sam.gov with all necessary legal documents and IRS information.
• ⏳ New businesses may encounter delays and errors in the SAM registration process, but submitting supporting documents can help resolve issues.
• 🖥️ Once registered, it may take weeks or months to get a UEI (Unique Entity Identifier) and a CAGE code due to high demand.
• 📝 Bidding on contracts is the main way to win government contracts; it's crucial to understand the details of each bid and to continuously learn about the process.
• 📚 Having a mentor or coach is essential to navigating government contracts, understanding various levels of contracts, and developing strategies to win them.

Q & A

What is the annual spending by the federal government on products and services?

The federal government spends 500 billion dollars annually on products and services.

What is the first step to getting into government contracting?

The first step is to have a business, such as an LLC or S corporation, registered in the United States or Puerto Rico.

Why does the speaker suggest considering Puerto Rico for setting up a business?

The federal government is providing additional resources for businesses headquartered in Puerto Rico, making it a strategic location for starting a business.

How important is the business name in government contracting?

The business name is important, but you can use a 'doing business as' (DBA) name if your original business name is specific. A more generic DBA can help when working with the federal government.

Do you need to register with SAM.gov to get a government contract?

Yes, if you want to be a prime contractor with the federal government, you must register with SAM.gov.

What should you do if you encounter an error during SAM.gov registration?

If you encounter errors during registration, such as issues with your tax ID or address, you should upload supporting documentation like your IRS letter, Articles of Incorporation, or business license.

How long can it take to complete the registration process on SAM.gov?

The registration process can take weeks to months due to the high volume of applications.

What is the next step after becoming certified on SAM.gov?

After certification, the next step is to start bidding on different government contract opportunities.

Is having a specific business designation like woman-owned or veteran-owned enough to win government contracts?

No, having a specific designation like woman-owned or veteran-owned does not guarantee winning contracts. You still need to add value, understand the requirements, and bid strategically.

What is one potential mistake new contractors might make regarding contracts?

A common mistake is misunderstanding the type of contract, such as assuming it offers a flat payment when it is based on utilization, which can result in lower-than-expected earnings.