You should consider federal contracts if you want to get your name out there on the Government’s projects. These are contracts where the Government purchases goods and services from private companies. Each year, the Government spends billions of dollars on things like advertising, marketing, language services, office buildings, warehouse facilities, and real estate. To get one of these contracts, you must prove that you have the experience to meet the requirements. The process for bidding on government contracts is labor-intensive but not particularly difficult.
The first step in getting a federal contract is identifying your business’s NAICS code. NAICS codes are based on a specific product or service. If you sell multiple products or services, your company will likely have more than one NAICS code. Small businesses are typically identified by these codes, which are published on the U.S. Census Bureau website. To qualify for federal contracts, small businesses must meet specific requirements, including obtaining a unique UEI and NAICS code. These are two of the essential initial requirements.
While federal contracts have strict requirements for performance, federal grants are more flexible when it comes to the scope of work. While the Federal Acquisition Regulation governs federal contracts, federal subsidies have more leeway. The primary requirement is to perform reasonable due diligence and advance research. Federal contracts and grants generally have regular reporting requirements, but OTAs are not as tightly regulated as federal grants.
Using federal government contracts can prove lucrative for small businesses. Since the Federal Government is the largest trader in the world, getting contracts can help your company grow and become more profitable. The following links will help you learn more about specific government contracts. So, why not start working on your business’s federal government contract? It may even be the most lucrative way to expand your customer base. But before you bid, be sure to read through the requirements. Once you are approved, apply to participate in federal government contracts.
Cost-based contracts are the most common type of federal government contract. These contracts are typically for research and development. Cost-sharing contracts allow the Government to reimburse a contractor for agreed-upon costs without compensation. Cost-plus-incentive contracts increase the charge based on the total permitted or target costs. These are advantageous for contractors as they enable them to earn more profit and have more control over their expenses. But, in the end, it’s up to the contractor to decide which one works better for them.
Risk-based contracts fall into three categories: performance, cost, and schedule. Each of these categories has its own set of risks. The Government should evaluate the potential for failure and mitigate each risk to mitigate it. Depending on the nature of the contract, risks may include improper performance, miscommunication, or non-performance of the contract. Regardless of the type, federal contracts should not be signed without proper consultation with a law firm. The Federal Acquisition Regulation describes each kind of government contract and its advantages and disadvantages.
If you want to learn more about federal contracts for small businesses, you can check out EEE Publishing, LLC’s website.