Government Spending: Contracts for Businesses Big and Small -Part 2-
By: Fabiola Grosshan
Submitted: 2010-11-12 03:01:27 | Word Count: 649
What's New in Princeton & Central New Jersey? by Karen Hodges Miller
When registering with the CCR a business must choose which NAICS classification codes it should be listed under. “It is important to choose the most correct codes for your business because this is how the government agencies will find you,” says Hermelee. She advises choosing as many classifications as possible and keeping them as broad as possible.
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Finally, the business must file an ORCA, or Online Representations and Certifications Application, at orca.bpn.gov.
Hermelee recommends that businesses also obtain other appropriate certifications, such as small business, or woman-owned business, to “leverage” these classifications whenever possible. “Look at all of the programs out there to see what fits your business,” she says. Information on a variety of programs, as well as all of the government registration sites listed is available on her website at bhskyassociates.com.
Finding contracts. Once you have completed the registration process you can begin the search for appropriate contracts for your business. The web has made it easier for businesses to shop for contract information, she adds.
The first stop to make is Federal Biz Opps, or fbo.gov, which bills itself as “the U.S. government’s one stop virtual marketplace.” The site allows commercial vendors and government buyers to “post, search, monitor, and retrieve opportunities solicited by the entire federal government community.” Every federal agency is required to post bids over $25,000 on this site.
Businesses looking for contracts can search the site by NAICS code, keyword, or look up their competitors to see what other similar business are bidding on. The site also lists important information such as the procurement officer for a bid.
For businesses unwilling to jump into the government contract arena, Hermelee suggests getting initial experience as a sub-contractor. Many larger corporations are interested in sub-contracting to smaller companies because the latter’s certifications can help the large company leverage those small business set-asides.
Learn patience. It is important for anyone interested in bidding on a government contract to be patient. “This is not a fast process,” Hermelee says. “It takes time to obtain the certifications and make the connections.”
She suggests attending vendor outreach programs as an excellent way to start to make the right connections. Business owners should also do their homework before making any bids, she adds. “Just like with any other type of contract you need to do your market research, find out where and when the bids will be posted, learn about your competition and take a good look at your pricing. Make sure you have a very accurate idea of how much money you need to make a profit on the contract.”
Follow the rules. “You need to understand all of the terms of the bid. Read it over several times and make sure you really understand the full scope,” she says. Then go look at your competition. “It’s a matter of public record. You can find out who the previous incumbent was on the bid, research them, and look at their pricing.”
It is extremely important to follow all of the rules of the bidding process, down to the letter. Even the smallest mistake can cost a company a bid (a very public example is the ouster of state education chief Brett Schundler for filling out a federal aid form that cost New Jersey more than $400 million).
Hermelee remembers a corporation that recently lost a potential $35 billion contract by submitting the bid five minutes late.
“The most obvious and simple mistakes are often the ones business make most often when it comes to bidding for government contracts,” says Hermelee. The competition is fierce, and those small mistakes can be costly, but if you follow through on the details, the rewards can be great.
