Copyright © 2005 Robert Moment
Win Federal Contracts.com
http://www.winfederalcontracts.com
Did you know that federal procurements under
$25,000 don’t undergo the normal bidding process? That means
that if you’re a small business selling products or services,
landing a federal contract may be easier than you think.
The federal government is the ideal resource
for small businesses and independent contractors to tap for projects.
Here’s why: The federal government...
- Assigns billions of dollars in contracts annually.
- Often gives preference to smaller contractors and consultants
- Is mandated to target smaller firms for contracts less than
$100,000
- Has a huge budget and is frequently a repeat customer
- Will never go out of business
Locating Smaller Contracts
“Smaller” contracts under $25,000 represent
special opportunities for small businesses and independent professionals.
However, contracts at this level aren’t publicly advertised,
so you have to know where to look to find them.
You can locate smaller contracts through a “hidden
market,” where business deals are driven by relationships
with federal buyers. Incidentally, federal agencies generally
purchase products and services from small businesses in their
local market. Establishing relationships with these agencies can
be a smart move for small businesses because it:
- Can reveal unadvertised contracts
- Is less competitive
- Results in prompt payment
- Offers the potential for ongoing and repeat business
How the Government Awards Smaller Contracts
The federal government procurement system for
contracts under $25,000 isn’t overly extensive or competitive.
The government generally makes hiring decisions for smaller contracts
through micro purchases or simplified acquisitions. Both of these
methods are relatively streamlined, compared to the more formal
process of requests for proposals, quotes and invitations.
Micro Purchase Market
The micro purchase market enables federal managers
in the field to buy goods and services under $2,500 quickly and
easily. Managers normally make these purchases with a government
credit card, although a purchase order can also be used. Government
credit cards—GSA SmartPay cards—are widely used and
are the government preferred method of payment.
Accepting credit card payments offers government
contractors a variety of benefits. It eliminates the use of purchase
orders, which means fewer forms to complete. It speeds up payment
processing and reduces billing, collection and other administrative
costs. But more importantly, accepting GSA SmartPay, allows companies
to remain competitive and become strategic suppliers to government
purchasing card users.
Using credit processing to capitalize on the
micro purchasing system is easy. You simply set up a merchant
account that allows you to accept credit cards. Then conduct business
with your local federal agencies the same as you would with your
commercial customers.
The micro market offers contractors the benefit
of receiving same-day purchasing decisions from government agencies.
It also allows you to avoid spending hours putting together bid
packages and waiting weeks for responses. Plus, the system makes
it easy to receive repeat business from government organizations
that are satisfied with your work.
Simplified Acquisitions
Simplified acquisitions are more involved than
micro purchasing; yet, they’re more straightforward than
formal bidding processes. With simplified acquisitions, managers
solicit three to four informal quotes by telephone, email, fax
or mail. These direct and unadvertised contracts can range from
$2,500 to $100,000 in value. Contracts between $25,000 and $100,000
are publicly advertised.
As with micro purchasing, contractors can receive
quick responses through the simplified acquisitions process. Decisions
for project awards are delivered within one to several days, instead
of weeks.
Before you set out to win government contracts,
be sure to define your contracting niche—whether it’s
the micro purchase or simplified acquisitions market. This will
help you effectively focus your marketing efforts for the best
possible results. Good luck!
