How to Sell to the Government

Last Updated: January 4, 2023 References

Securing a contract with the US Government can be a great way to expand your business and make it a success. The government actively seeks out small businesses to contract with, opening up a wide range of opportunities. Before you can work with the federal government, you'll need to register your business. A registered business will be able to bid on government contracts, build its reputation and continue growing.

Part 1

Part 1 of 2:

Registering Your Business

1
Obtain your DUNS number. A DUNS number, or Dun & Bradstreet number, will provide your business with a specific numerical identification. This number will be used by the government to identify your business. You'll need a DUNS number before you can finish setting up your business and get started looking for contracts.^{[1]
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- You can get started setting up your DUNS number here http://fedgov.dnb.com/webform/pages/CCRSearch.jsp
- DUNS numbers are free to obtain.
- A DUNS number will be nine-digits long.
2
Register with SAM. You'll need to register your DUNS number with SAM. SAM, or System for Award Management, will be the main government database that your business is entered into. The SAM database will help connect you to government work opportunities. Make sure that your DUNS number has been successfully registered with the SAM database before proceeding.^{[3]
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- Signing up with SAM is free.
- You can easily track the status of any business you are trying to register on the SAM website.
- SAM has combined the coverage of previous systems such as CCR, ORCA and EPLS.
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3
Learn what your NAICS number is. You may find that you are required to provide your NAICS code when setting up your business. The North American Industry Classification System code will let the federal government easily identify the sector, industry and country that your business services fall under.^{[4]
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U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
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U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
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- Your NAICS code will likely be necessary when bidding for services.
- NAICS codes are used for tax purposes.
- You can search for your code here https://www.census.gov/eos/www/naics/
4
Decide if a GSA contract is right for you. GSA contracts can make doing business with the federal government easier and can help your business enter further into the public sector. A GSA schedule is a long-term contract that includes pre-negotiated prices, terms and conditions. As useful as a GSA contract can be, obtaining one can be a difficult, confusing and lengthy process. You'll want to consider if a GSA contract is right for your business before seeking to obtain one.^{[6]
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- It is not necessary to have a GSA contract before doing business with the federal government.
- Your company will need to have been in business for two years and must be financially stable.
- Your company may need to meet other criteria, based on its individual nature.
- You'll need to submit a proposal and wait for up to a year before your business is granted a GSA contract.

Part 2

Part 2 of 2:

Finding and Securing Opportunities

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Research the market. Even though you will be selling to one government, there are many different sectors and agencies that you will want to research . Each sector will have its own needs that your business may be able to uniquely meet. You'll also want to know which other companies may be competing for business in these sectors. Do some research to learn more about which sectors and agencies might be a good fit with your business.^{[7]
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- Competition will be high. It's important that you find a niche for your company to work in.
- You should know which agencies will be most likely to buy your products.
- You should know which areas of government are spending money on products like yours and how much they spend.
- You should be aware of who might already be working with your target agencies and the nature of their contracts.
- There are many online search tools that you can use to learn more. Try visiting http://usaspending.gov/ or https://www.fpds.gov/fpdsng_cms/index.php/en/ to learn more.
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Consider subcontracting or teaming up with another business. Businesses that are newly entering this field will find securing a government contract to be difficult. Because landing your first contract can be so difficult, you may consider teaming or subcontracting with an already established and contracted business. This can be a great way for your company to land a contract, gain experience and build a solid platform for future opportunities. ^{[8]
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- Large contractors may actually be required to subcontract.
- You can visit http://www.gsa.gov/subdirectory to look for subcontracting options.
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Look on FedBizOpps for opportunities. Most businesses will use the federal government's official website for contracting opportunities. FBO offers many useful and powerful search tools to narrow down the available contracts to areas that your business is well suited for. Once your business is fully registered to work with the federal government, try searching on FBO for the prefect opportunities.^{[9]
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U.S. General Services Administration
Independent U.S. government agency designed to support the basic functioning of the U.S. federal government.
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- You can visit the site by going to https://beta.sam.gov/
- You can narrow down your searches by agency, keywords or codes.
- If you need additional help searching on FBO, visit this page https://beta.sam.gov/search?index=opp
4
Submit your bid. After you've found an opportunity that you think your business would be perfect for, you'll want to submit your bid. Submitting your bid will officially place your company into consideration for the work contract. After you've submitted your bid, you'll need to wait and see if you are approved and selected to fulfill the contract. Keep some of these tips in mind to help you secure a contract:
- Having a lower price isn't always better.
- Demonstrating past experience is usually the key to successfully bidding.
- Being able to show your past successes and having great client references can be a big help.
- You'll want to target the agency's needs, goals and history to demonstrate why your business is the best for them.
- You may need to give an oral presentation before finalizing the contract.
5
Get to work. After you've been awarded a contract, you'll be ready to send your business to work. Your government contact will be able to provide you with the details of what needs to be done and you'll work with them to complete the contract. Do your best and enjoy working on your first government contract.
- It's important that your business perform well, as this will allow you to obtain a government reference.
- Your contact will be able to work with you to finalize any details or planning.