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.

Outlines

00:00

🚀 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.

05:01

💻 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.

10:02

🎮 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.

Keywords

💡Government Contracting

Government contracting refers to the process through which businesses bid on and secure contracts to provide goods and services to government agencies. In the video, the speaker emphasizes the massive opportunity in this space, highlighting that the federal government spends $500 billion annually. It’s a key theme as the video guides viewers on how to enter this 'recession-proof' market.

💡SAM.gov

SAM.gov is the System for Award Management, a federal government platform where businesses must register to be eligible for government contracts. The speaker stresses the importance of registering on SAM.gov to bid on prime contracts, explaining that the process can be lengthy but is essential to accessing federal contract opportunities.

💡LLC

An LLC, or Limited Liability Company, is a common legal structure for businesses that protects owners from personal liability for the company's debts. The speaker mentions that new entrepreneurs should ensure they have a registered LLC or a similar business entity in order to participate in government contracting. LLCs are highlighted as one of the primary structures recommended for government contract work.

💡DBA (Doing Business As)

A DBA, or 'Doing Business As,' is a registration that allows businesses to operate under a different name than their legal name. The video suggests that business owners with highly specific names can use a DBA to adopt a more generic name when working with the federal government, as this flexibility can help them appeal to a broader range of contract opportunities.

💡NAICS Code

The North American Industry Classification System (NAICS) code is used by federal agencies to classify businesses based on the type of products or services they provide. The speaker notes that businesses registering for government contracts on SAM.gov will need to provide their NAICS code as part of their business profile, which helps match their services with relevant contracting opportunities.

💡CAGE Code

A Commercial and Government Entity (CAGE) code is a unique identifier assigned to businesses in the federal contracting system. It is necessary for doing business with the U.S. government. The speaker explains that new businesses must go through the process of obtaining a CAGE code as part of their registration on SAM.gov, though this process can take weeks or even months.

💡Bidding

Bidding refers to the process of submitting proposals to compete for government contracts. The speaker emphasizes that actively bidding on opportunities is crucial for success in government contracting, noting that simply being registered on SAM.gov is not enough to win contracts. Consistent bidding is described as the main strategy for winning contracts.

💡Prime Contractor

A prime contractor is a business that directly contracts with the federal government to deliver goods or services, as opposed to a subcontractor, which works under a prime contractor. In the video, the speaker discusses the importance of becoming a prime contractor for those wanting to secure large government contracts and explains the necessary steps, such as registering on SAM.gov.

💡Mentorship

Mentorship in the context of government contracting refers to seeking guidance from experienced professionals in the field to navigate the complexities of bidding and fulfilling contracts. The speaker encourages aspiring government contractors to find a mentor who can help them understand the nuances of the bidding process and the varying requirements of different contracts.

💡Federal Government Spending

Federal government spending refers to the massive budget allocated by the U.S. government for procuring goods and services from private businesses. The speaker highlights that the government spends $500 billion annually, making it a lucrative and stable market, particularly attractive because it is described as 'recession-proof.' This figure underscores the scale of opportunity in government contracting.

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