Government Contracts - Financing and Procuring

While a business will probably not get rich withUnited States participate in bidding for government
government contracts, they do provide a verycontracts. This is a stunning statistic when balanced
steady income with guaranteed payment and a fairlyagainst the fact that government contracts are,
steady source of work. In order to succeed atliterally, a trillion dollar segment of the economy. The
bidding and winning government contracts, one mustmost common reason that businesses do not
have at least a basic understanding of how theyattempt to bid on contracts is extremely simple;
work.business people are terrified by the overwhelming
First, it is important to remember that it is probablyamount of paperwork and regulations involved.
wise to start small, with villages, towns, municipalities,In addition, many businesses are unaware of how the
and so on (as opposed to larger state or federalacquisition process starts, how bids can be tracked
jobs). These small contracts are usually for less thanand how a business can get involved. The answers
twenty five thousand dollars and are vital to buildingto all of these questions at the federal level can be
a reputation as a capable contractor.found on the Web site of the Government Services
CPO's (Contracting Procurement Officers) and PA'sAdministration (GSA).
(Purchasing Agents) take the responsibility of definingFor federal bids, the Government Services
the parameters of the RFP (Request for Proposal)Administration office maintains a web site that offers
that will be put out for bids. These specialists becomeshort courses that are designed to educate and
very well acquainted with the market value of theassist bidders. Continuing education credits are
goods and or services up for bid and are quiteavailable to those who complete the courses, and
capable of insuring that the government contractsthere are certificates of completion that can be
eventually awarded deliver quality at a fair marketdisplayed.
cost.Once a company has established a reputation of
As a precaution to protect the financial investment atquality work and service as described above, that
stake, the CPO's and PA's also carefully assess thecompany is more likely to become a successful
warranty, service, reputation and terms of thegovernment contracts bidder. It is also vital that a
bidders. This can save a lot of time and money downbidding company take extreme care in meeting all
the road.time deadlines and specifications.
Only about twenty percent of small businesses in the