Federal Contracting Simplified: A Beginner’s Guide for Women-Owned Small Businesses

What is Federal Contracting?

Federal Contracting refers to the process in which government entities appoint private-sector companies to support their initiatives. Federal Agencies issue a Request for Proposals (RFPs) to invite private-sector organizations for solicitations. This usually involves the procurement of goods and services by government agencies. Contracting various operations to private-sector companies aids in the smooth functioning of government plans and the provision of public services. 

There are a lot of differences between federal contracting and private sector contracts. Federal contracts are supervised under the statutes, regulations, and government-issued policies, whereas private contracts are more flexible. Where the bidding process requires intricate proposals in federal contracting, the same process is negotiable and informal in private contracting. 

There are multiple benefits of entering the federal marketplace as a small business. Winning contracts from the government ensures a wider scope of financial opportunities for women owned small businesses. Government contracting further provides expansion and job creation for small businesses. Owing to the specialized provisions for underrepresented groups, federal government contracting encourages equity and diversity in the marketplace.

How to Get Started with Federal Contracting?

It is crucial to understand key terminologies associated with federal contracting for women owned small businesses. Moreover, the process of government contracting includes several steps:

Does Your Women Owned Small Business Fit the Required Parameters?

First step is determining whether your business qualifies as a small business under the Small Business Administration (SBA) size regulations. Additionally, you must figure out what kind of services your business will be providing in the federal market. This can be achieved by indexing the different NAICS codes to find one that describes your services.

Registration Process:

After understanding the size standards of your small business, the next step is registration. The System for Award Management (SAM) houses contracting opportunities offered by federal agencies. This step will gain your business a Unique Entity Identifier (UEI) and a Commercial and Government Entity (CAGE) code.

Certifications for Women Owned Small Businesses

Many Women Owned Small Businesses receive set-aside contracts awards based on certain criteria such as 8(a) Business Development Program, HUBzone certification, Women-Owned Small Business (WOSB) Program, and Service-Disabled Veteran-Owned Small Business (SDVOSB). These certifications provide a competitive edge to a small business and increase its chances of success.

Identify Suitable Contracts and Opportunities

Portals like SAM and GSA e-Library are ideal for searching contracting opportunities that synchronize with the capabilities of your business. You can use different filters to shortlist solicitations according to your location, manpower, and equipment.

Writing Proposals

Solicitations issued by federal agencies require detailed proposals written by companies to be considered as a bidder. Your proposal must underscore how well your business’s synergies match with the government’s needs. It must also be transparent with price values and resources.

Tips for Success in Federal Contracting

1. Determine Your Target Federal Agency: Research and understand the federal marketplace to identify which agencies’ needs align with your offered services. Recognize trends by studying past contract awards through the Federal Procurement Data System (FPDS). 
2. Take Advantage of Your Status as a Women Owned Small Business: In the federal contracting industry, the interests of disadvantaged businesses are protected through set-aside programs. Moreover, being certified as a disadvantaged small business offers a wide range of subcontracting opportunities as well. 
3. Create a Strong Capability Statement: A concise, well-formatted statement emphasizes the integrity and principles of your business. It represents your past performances and your unique selling proposition. A strong capability statement is basically the resume of your business. 
4. Network and Build Your Brand Image: Establish your small business as a household name for a particular service by networking and building relationships in the community. You must present a strong front at government contracting events, industry days, and sessions. 
5. Harness the Power of Partnerships: Team up with other businesses and research deeply about subcontracting opportunities. As a beginner, partnerships and subcontracting can help a small business obtain experience and credibility.