According to the Maryland Chamber of Commerce, via USASpending, Maryland ranks second per capita among the states and fourth in dollar value of federal government contracts, totaling $42.9 billion. For Department of Defense contracts, Maryland ranks fourth per capita among states and fifth in total dollar value with $15.4 billion. Those numbers can be alluring for businesses looking to diversify their client base by entering into government contract. On the other hand, those numbers can be overwhelming for these businesses as they try to figure out where to go to find the right contracts and understand how to be competitive. Methodically analyzing your capabilities, your competition and your target customer is critical to success.
If you are a business owner in this position, use these tips below to get started on your government contracting journey.
- Register your firm with the System for Award Management (SAM): SAM is the official database of companies that are eligible to receive federal contracts. In order to bid on federal contracts, your firm must have a active registration in SAM. It is free but takes a little bit of time to enter all of your firm data. You can set up your registration anytime, even if you don’t have a contract yet. If you are a small business, make sure you also register in the Dynamic Small Business Search (DSBS) at the same time. It is important to be part of the DSBS because many agencies go there to conduct market research to find small businesses that provide services they need. Large businesses also use DSBS to find specialty subconsultants that they might need who can also help them reach their small business subcontracting goals.
- Review and analyze your services and capabilities. Find your NAICS code or codes that are applicable to your business. You’ll need these to find contracts and register your business. It is important to accurately identify the NAICS code for your firm, as this will determine which contracts your firm is eligible to bid on.
- Do some research. To be successful in the government space, you need to understand which agencies purchase what you sell and how they make that purchase.
- Create your capabilities statement. A capability statement is a document that outlines your firm’s capabilities and qualifications, including your firm’s experience, expertise, and capacity to complete projects. This statement is often used to help federal agencies evaluate potential contractors.
- Build your Federal network. events, industry days, primes, subs, agencies. There are a variety of resources available to help firms find federal contracting opportunities, including the Federal Business Opportunities website and the Contract Opportunities portal.
- Familiarize yourself with the bidding process: The federal government has a specific process for soliciting and evaluating bids for contracts. It is important for your firm to understand this process in order to successfully bid on contracts.
The Federal government market is complex, and each agency is different. By using your network and doing your research, you can find opportunities that are the right fit for your firm. Overall, getting started with US federal government contracting can be a complex process, but there are resources available to help firms navigate the process and identify opportunities.