July 7, 2011

The federal government spends billions of dollars through local, state and federal contracting programs. The Obama Administration has even created a special program for eligible women-owned small businesses (WOSB) to help stimulate the economy through contract set-asides. Yet many businesses don't take advantage of the consistent stream of revenue a government contract can provide because they're perplexed by the contracting system and requirements.

Here is a quick overview of how to start working with the government:

Before you get started

• Make sure your company's legal business structure and financials are solid. For example: Have you kept up on all the legal requirements for being a corporation? Are your financial reports clear, up-to-date and properly prepared?

• Prepare your team for the workload ahead and make sure they are properly trained.

• Check to see if you need to be bonded.

• Ensure that you have adequate company insurance coverage. Consider a business owner’s policy (BOP).

• Be consistent with your tax identification. Do you have an employer identification number (EIN) or do you use your social security number (SSN) for your business?

• Have good branded collateral, including a company website.

• Define your products or services clearly.

• Establish and document internal quality control measures.

Registering with the government

To become a government contractor, you must be validated by registering with the government. While you'll have to dedicate a fair amount of time entering data about your business, the government needs to have a clear and accurate picture of your company before it can do business with you. There are several tasks you must complete before reaping the benefits of government contracting:

• Find out your business size by qualifying through the Small Business Administration (SBA) Small Business Search.

• Get certified. In addition to the professional certifications available for your specific industry, there are certifications for the unique characteristics of your business―such as operating in a "historically underutilized business zone" (HUBZone) or being a "veteran or service-disabled veteran owned" (SDVOB) business. The SBA and the National Minority Supplier Development Council (NMSDC) are good resources for researching the certifications that may apply to you.

• Identify your business commodity codes using North American Industry Classification Systems (NAICS) and Standard Industrial Classification (SIC).

• Register with the Data Universal Numbering System (DUNS) to get your business identification number and a credit profile of your business.

• Register with the Central Contractor Registration (CCR) government database.

• Register with Online Representations and Certifications Application (ORCA), which will help you fully understand the rules and regulations of doing business with the government.

OPEN Cardmember Vernita Naylor worked with the General Services Administration for 25 years in project and construction management and government contracting. Now she is the Founder/CEO of Jabez Enterprise Group (JEGroup), an integrated business resource company providing technical assistance and business development services including strategic marketing, life and business coaching, workshops, brand identity and consultation for small-medium businesses and non-profit organizations.

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VERNITA NAYLOR, Article, government, government contracting, Jabez Enterprise Group, SBA, open cardmember, Central Contractor Registration

Join the conversation ( 1 )

• community manager 10 months ago

  

  Vernita, congratulations on your first article as an OPEN Forum Cardmember contributor. Becoming a government contractor can be daunting, but you provide some really good tips for undertaking the process. Here are some other useful resources on the topic:OPEN Forum Government Contracting Special Featurewww.openforum.com/governmentcontractingCelebrating the Women-Owned Small Business Federal Contract Programwww.openforum.com/idea-hub/topics/innovation/article/celebrating-the-women-owned-small-business-federal-contract-program-1