Get Your Foot in the Federal Door, Part I
By: Susan VanEpps
The D.C. region accounts for more than $70 billion in annual federal contracting dollars. For businesses that qualify for the 23 percent of contracts eligible for federal small business set-asides, including those that are woman-owned, veteran-owned, run by the economically disadvantaged or located in HUBZones, the opportunities can be great.
Navigating the federal procurement system, however, can be daunting. In this first of a two-part story, we list tips for getting your foot in the door from Anna Urman, director of the Virginia Procurement Technical Assistance Program.
Urman provides training sessions and business counseling to increase contracts among small businesses, prime government contractors and federal government agencies. Her recommendations include:
- Think strategically about what you can offer the government. Find out which agencies need what you sell. To get in the door faster and easier, she suggests pursuing secondary agencies issuing smaller contracts that the bigger suppliers overlook. Study up at usaspending.gov, where you can research recent government spending and contract awardees by keyword, location, and many other variables.
- Get registered. You’ll be deemed ineligible for contracts without first obtaining a Data Universal Numbering System number, an Employer Identification Number and a Commercial and Government Entity Code, in that order. Head to Dun & Bradstreet for DUNS, the IRS for your EIN and SAM.gov for your CAGE Code. (Note that SAM.gov is a new site as of 2012, and many preexisting links to older registration sites no longer work.) Registration can get complex, so Urman suggests keeping a spreadsheet of all the information and site passwords.
- Don’t pay any fees to look-alike sites. Many websites that look very much like government sites will “assist” you with registration for a fee, but it’s not necessary, she says. Only pay a fee when the government tells you it’s required. (If in question, contact PTAP.)
- When registering your company for an EIN or other unique identifiers, do not use your social security number for your business. This will prevent your personal information from becoming public, as can happen with illegal data breaches.
- Look for opportunities to prove yourself, and keep in mind that unique skills, likeability and an agency’s urgency can all work in your favor. If you’re new to the market, consider teaming up with other small businesses on a contract to build your federal experience. Also consider registering on the small business portals of prime contractor websites, through which they subcontract their lower margin jobs. It might not be ideal, but it’s a starting point.
“Sometimes calculated risks can give you an opportunity. You can’t get in until you’re in,” says Urman.
Next month: how to research federal opportunities and promote your business to contracting officers.