subject: Start To Procure Government Contracts [print this page] Some government contracts are more lucrative than others, but they can all provide a company with regular payments and a steady source of work. For a company to succeed in the bidding process and win a number of government contracts, they are going to need at least a basic understanding of how it works.
First, it is important to remember that it is probably wise to start small, with little towns and municipalities and so on (as opposed to larger state or federal jobs). These small contracts are usually for less than twenty five thousand dollars but are vital to building a reputation as a capable contractor.
Contracting Procurement Officers and Purchasing Agents (CPOs and PAs, respectively) will have the job of defining the parameters of the Request for Proposal (RFP) that will be released for bids. It is going to be their responsibility to get acquainted with the market value of the goods and services they require. That way they will be able to ensure that the government contracts will be awarded to the company that will deliver the most value at a fair market cost.
As a precaution to protect the financial investment at stake, the CPOs and PAs also carefully assess the warranty, service, reputation and terms of the bidders. This can save a lot of time and money down the road.
Only about twenty percent of small businesses in the United States participate in bidding for government contracts. This is a stunning statistic when balanced against the fact that government contracts are, literally, a trillion dollar segment of the economy. The most common reason that businesses do not attempt to bid on contracts is extremely simple - business people are terrified by the overwhelming amount of paperwork and regulations involved.
In addition, many businesses are unaware of how the acquisition process starts, how bids can be tracked and how a business can get involved. The answers to all of these questions at the federal level can be found on the Web site of the Government Services Administration (GSA).
The GSA office also maintains a website that will provide a lot of prospective bidders with the education and assistance they need to make the most of their bidding efforts. These courses provide a continuing education credits, and there will even be a certification of completion after the classes are done.
When a company has gone through the process of building a strong reputation on the local scene, they will find it much easier to get larger contracts down the road. When it can meet all its deadlines and deliver quality work, their contracts are sure to become more lucrative as well.
