How To Win Government Contracts As A Beginner
Summary
TLDRThis 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.
Outlines
🚀 Entering the Government Contracting Space
The speaker introduces government contracting as a recession-proof market, with over $500 billion spent annually on products and services. She shares her own journey, starting her business in 2008, and stresses the importance of registering a business (LLC, S corp, etc.). For those starting out, it's crucial to pick a meaningful business name and ensure the name isn't already taken by another entity. This section also advises on registering a 'Doing Business As' (DBA) name if the current business name is too specific, as it allows flexibility in selling to different federal government sectors.
💻 Registering in SAM for Government Contracting
The speaker explains the importance of registering in the System for Award Management (SAM) to qualify for federal government contracts. New business owners might encounter errors when entering their tax information or business address in SAM. She advises having all necessary documentation like IRS letters and business licenses ready, and provides tips on resolving issues through document uploads. She highlights that the process may take weeks or months due to delays in assigning unique entity identifiers (UEI) and cage codes. Communication with SAM is essential during this process, especially for new businesses.
🎮 SAM Registration Process: A Strategic Challenge
Drawing an analogy to a video game, the speaker compares the SAM registration process to moving through different levels of a game. She encourages users to be patient and persistent, as the process is necessary to access federal contracts worth billions of dollars. Entering information exactly as it appears on IRS documents is vital to avoid delays. Even after registering, changes can be made to company profiles. The speaker emphasizes that SAM is more than just a certification system and that new contractors can gradually update their profiles over time.
Mindmap
Keywords
💡Government Contracting
💡SAM.gov
💡LLC
💡DBA (Doing Business As)
💡NAICS Code
💡CAGE Code
💡Bidding
💡Prime Contractor
💡Mentorship
💡Federal Government Spending
Highlights
The U.S. federal government spends 500 billion dollars annually on products and services, creating a recession-proof market for businesses.
To participate in government contracting, businesses must be registered as an LLC or corporation in the U.S. or Puerto Rico, with additional benefits for Puerto Rico-based businesses.
Selecting a meaningful business name is important, with flexibility to change it later using a DBA (Doing Business As) for broader appeal.
A business doesn't need to change its name to sell to the federal government; filing a DBA can allow for greater flexibility while retaining the original name.
Registration in SAM.gov is mandatory for those seeking to become a prime contractor with the federal government, requiring tax ID and incorporation documents.
Newly established businesses may face error messages during SAM.gov registration, typically requiring the submission of supporting documents like IRS letters or incorporation papers.
The process of obtaining a Unique Entity ID (UEI) and a CAGE code for federal contracts may take weeks or months due to processing delays.
When entering information into SAM.gov, it is crucial to match it exactly as it appears on official IRS documents, even if there are typos or address discrepancies.
Perfectionism should be avoided in the registration process, as changes can always be made later once a business is in the system.
Bidding on contracts is essential for winning government contracts, and learning how to properly understand and respond to bids is crucial for success.
Mentorship and coaching are valuable for navigating the complexities of federal government contracts and understanding various bidding strategies.
Government contracts may vary in terms of risk level, with low-risk items and services being easier to win than high-risk contracts.
Federal agencies may use usage-based contracts, meaning businesses should understand the specific terms of the contract to avoid misconceptions about guaranteed revenue.
The U.S. federal government purchases a wide variety of products and services, offering opportunities for businesses across many industries and specialties.
Continuous learning and adaptation are crucial in the government contracting space, as requirements and opportunities evolve over time.
Transcripts
Government Contracting
500 billion dollars that's billion with
the B is in Bravo spent every single
year on products and services with
federal government this is a Recession
Proof market and you want to know how do
you get in how do you get a piece of
that pie and I'm here to tell you first
and foremost you need a business I when
first signed up in 2008 I had an S
corporation I still have that company
today I still actively been on contracts
you want to make sure you have an LLC
set up somewhere in the United States or
Puerto Rico right now the federal
government is providing some extra
resources towards businesses
headquarters in Puerto Rico okay who
knew this is amazing time when I first
set up my Flagship company I was really
big into my initials they held
importance for me when I was a little
girl my grandmother would engrave them
in various jewelry three items because
she worked at a high-end jewelry store
and so I named my company K period Parks
Consulting it's not kizzy Parks
Consulting it's K period Parks
Consulting because it made me think of
all of the beautiful memories associated
with my grandmother when it comes to a
name choose one that resonates with you
some like to choose a more generic name
because they're thinking hey I may want
to sell the business some like to use
acronyms I love using like an acronym
because now my company is known as KPC
which is great three letters is easy to
work with and for those of you who
already have a business I have some tips
for you in a second so for all my Noob
Noob noobs get the business registered
double check the name you definitely
want to Google the name and also if your
state has a option to search to see if
that business name is in use please do
so because the last thing that you want
to do is to get through all these steps
to realize oh my gosh somebody else has
this name or to get a letter from their
lawyer saying please discontinue using
the name you don't want that to happen
at all you know Kim K kind of
experienced that a little bit before she
named it skins right
so for all of you out there who already
have a business maybe you have an LLC
you have an S corp or you have a C Corp
let's say you have a business and has a
very specific name like Matt's power
washing or Trina's Trucking Service the
question I'm often asked is do I need to
change my name do I need to start
another company do I need to start a
company that hits all these different
areas in other words do you need a
company name to fit every bucket you're
looking to potentially sell to the
federal government for those of you
within existing business no that's
what's beautiful companies like Lockheed
Martin and IBM sell way more than what
you know them for promise you and the
same applies to you so if you have a
very specific name for your existing
business meaning you have a tax ID
number and hopefully you have a business
license and you've taken care of all the
requirements for the state in which
you're registered all you have to do is
file a doing business as and you can
change it two maybe TA or Mac or what
may have you but create a DBA that's way
more generic so then as you're working
with the government you go by your DBA
while legally you have maybe a more
specific name they're not going to worry
about that they're not going to question
that because they're going to know you
by your DBA so it's all you have to do I
would definitely look into filing that
before we get to the next step and that
is in order to be a prime contractor
with the federal government you must do
this step if you are someone who I deem
as an expert and there's like an
expertise that you just want to offer to
the government it could be janitorial
services it could be that you're a
plumber it could be that your
facilitator could be that you're a
painter it could be that your wheelhouse
is doing podcasts and you just want
someone to bring the work to you that
bring the kill to the door as we often
say in Government Contracting you don't
have to do any of these things you don't
have to be registered in Sam but for
those of you who are like hey I want a
prime contract and opportunity you must
be registered in Sam so once you have
your tax ID the official letter from the
IRS and any other documents from the
state in which you are legally
registered as well as your incorporation
documents things of that nature now it's
time to go to sam.gov I must warn you
for those of you who just set up a
company or maybe you're setting it up as
you're watching you know the video
chances are you're going to get an error
message that I'm about to talk about for
the rest of you if you've had a business
established for I would say a year or
more you're not going to run into this
issue I know this because I tried
registering another company that I have
just to be able to experience what is
going on in sam.gov because my Flagship
company was registered eons ago way
before Tick Tock so I want to be able to
really understand what is going on on
and to know some of the challenges that
you're facing so I discovered since my
business had been registered since about
2019 it's called adult fluent as soon as
I entered the information it popped up I
had no problems but for those of you who
are just standing up a business what
you're going to find is chances are you
may receive some error about the
information doesn't match they can't
find your tax ID or something along the
line with an address it's okay because
you already know this is going to happen
so you will be prompted to upload some
type of supporting documentation it
could be the letter from the IRS your
Articles of Incorporation copy of your
business license that's why it's
important to have all of these documents
ready and in electronic form if you need
to just use your cell phone take a
picture get one of the free apps on your
cell phone there's tons of them where
you can take a picture and it converts
it to a PDF and you can email it to
yourself and boom boom boom up load the
document so once you do that for all of
my new new people time to sit back and
wait they're inundated so the process to
get you a UEI unique entity
identification number and a cage code
can take weeks to maybe a few months if
this is a space that you are
contemplating wanting to get into you
definitely want to register like now and
even if you have a business it still may
take weeks to months for you to obtain
the key things that you need to be able
to prime a contract just because they're
backed up that's all so for those of you
who are new you may receive additional
emails from sam.gov stating we're still
not able to confirm this information so
what you're going to want to do is
submit any type of tickets you're going
to want to send them emails you're going
to have to constantly constantly
constantly be in communication with them
look at this as the first step or first
level like in a video game you get
through this level you get to the next
level you get through that level you get
to the next level this isn't something
where you're going through to like get
tickets to like a lizzo show this is a
process you're going to to open up your
ability to access over 500 billion
dollars in federal government contracts
so I promise you is really not that pain
I promise you is not it's really not so
for those of you who are well
established you may find that the
process is faster but again sit back and
wait who knows maybe they ask for
something maybe they don't but also
what's key for both of you newbie Numa
noobs my old heads please enter the
information in sam.gov according to how
you have it on your IRS documents enter
it the same way if you have a typo enter
in the typo if it has a certain address
you please enter that address because
what they're doing is validating that
you are connected to this business
changes can be made after the fact you
just need to get into the system you
know going back to the analogy with a
video game I know when I've played video
game I mean I'm not always the best at
it I go through the first level and I'm
just like oh my God I had to get through
it I want to get through it and maybe
after the fact I learn oh man there were
some coins over here I could have
received some new weapon by going here
oh my gosh I didn't even know I could
put a headset on and play live with
other people who knew and so maybe after
the fact I may go back and make some
different changes because I have new
information that's how it works with
sam.gov things are always evolving and
changing and sam.gov is more than a
system to just hey you're certified now
you can like get contracts there's even
more to it but the thing is you can
always go back you can always make
changes so let that perfectionism just
go away y'all let it go away once you
get through all of that you're going to
end up becoming certified and once
you're certified you're going to start
filling in all of this information about
your company they're going to ask you
about these nakes codes they're going to
ask you for a summary they're going to
ask for all of this information out the
gate as a brand new Government
Contracting Company you can just put a
little bit of information in there I've
been in this space for well over 10
years and never has someone contacted me
and said are you Dr Parks because I was
looking at your Dynamic small business
profile and I want to give you this 20
million dollar contract I mean never
never not even a 2 000 contract that's
like never happened so once you get
through this phase as a new government
contractor your next step bid bid and
bid as plain as that the only way to win
in this space as a federal government
contractor the main way is by bidding
bidding on different opportunities also
it's really important to have a mentor
have a coach and learn as much
information because while bidding is the
key to winning and growing your business
you also have to understand what is it
that you're looking at and what is
required of this actual bid and I
promise you the answer is not oh I can
just hire a proposal writer you're just
going to make a proposal writer or add
to their bank account you're probably
not going to win because what's
important is understanding because
there's different levels of contracts
there's different requirements for the
opportunities and there's different
strategies for you to take to win
federal government contracts this is not
something that just happens through
happens dance it's not something that
happens through just luck and it is not
something that happens because you're an
a day you're a woman owned you're a
service disabled you're economically
disadvantaged woman owned you're cute
you're an Alaskan native or you're
Indian owned no you still have to add
value you still have to provide the
product and the service and most
importantly you must understand what
you're getting involved in there was a
couple who I briefly spoke with and they
had a business and they got involved in
Government Contracting and they were
super excited because there was this
opportunity that involved shipping and
it was like really connected to what
they currently did they worked with like
a kind of a local small business kind of
office and they put together their bid
and lo and behold they won and I believe
the entire contract bid was maybe it was
like a million dollars or so like right
out the gate they were just like oh my
gosh this is awesome Government
Contracting right well what ended up
happening was that particular agency
ended up only spending maybe thirty
thousand dollars the first year on that
opportunity because it was something
where it was around their utilization
right so kind of think of it in terms of
electricity typically we're not just
charged a flat rate it's not like okay
ten dollars twenty dollars there's your
flat rate typically you're not you're
charged based on your usage and that's
what happened with this contract but
they didn't know that they had no idea
it was that type of a contract so when
they won they thought oh this is awesome
our lives have changed and in reality it
was more like oh my gosh this is a
burden we don't want burdens that's why
I'm here I'm here to help you so you
know how to find Bid and Win profitable
government contracts whether you're a
noob whether you're seasoned whether
you're a seasoned just entrepreneur or
even government contractor I'm still
here to help you through this process
because it's an always evolving kind of
thing all my amazing gov con winners as
you're starting out you may even ask
yourself well what is it that I want to
sell well the answer is is what is of
interest to you the federal government
Buys so many different things it's again
about what's of interest to you and what
can you quickly win there are
opportunities based on their risk level
low medium and high and definitely those
low risk items and different services
are way easier to win than something
that's more high risk but it's about you
there are some of you that are watching
that maybe you're like look my
background is tutorial that's all I want
to do okay great there are others
especially those who I coach that are
like look I'm open to anything I just
want to make a profit okay great and
then there are some who are like look I
have this background in I.T
um I recently retired from the Air Force
and I really want to keep doing this
kind of cyber security thing great
there's opportunities there too there's
no one right answer this is a journey
and what's great is on Sam on fed
connect on Unison and other places you
can take a look at what's out there
that's live and active not things that
they purchased in the past because just
because they bought something in the
past doesn't mean they're going to buy
in the future to all my amazing people
please like Please Subscribe please hit
that notification button please share
and I wish you nothing but being a
winner and succeeding in this gov con
space and please comment below
especially if you are in the process of
getting registered in Sam I would love
to hear from you and don't forget y'all
go to
govcomwinners.com I'm releasing the
class very soon and it's great to get in
now because in the future the price is
going to go up not as high as like a
Rolls-Royce SUV but it's gonna go up so
please check it out and also because I
adore each and every one of you check
out
profitablecontracts.co
profitablecontracts.co I have a great
guide there to help you out on this
journey and don't forget everything is
possible have an amazing amazing day
[Music]
I don't know
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