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Know How To Prepare and Bid On Federal Government Contracts In 2022
May 30, 2022

Know How To Prepare and Bid On Federal Government Contracts In 2022

Government contracting can be a gainful opportunity for small businesses or contractors. To win contracts it is important to understand the process of federal bidding. Various kinds of companies are eligible for obtaining government contracts through federal bids.

Remember the government of the United States is the largest purchaser of goods and services in the world. Small businesses do get advantages from the government in multiple ways.

The government is legally required to consider federal bids by small businesses. Along with this, the government also has set a goal to award 23% of all federal contracts to small business ventures.

Be a participant and compete in the federal market to acquire lucrative contracts. You must have all the criteria fulfilled to work as a federal contractor or a small business.

A federal bid list serves as a tool that is used by the federal procurement offices to identify potential federal contractors. The bidder list contains the names of the contractors/suppliers of the materials and services.

This blog will let you know about all the key elements and factors that will help you to win government contracts. We have covered essential points regarding federal bids, so get ready to go through the blog so that you can make the right decisions.


Know about government opportunities available for small businesses

The contracts of Federal, State, and Local governments are open to various kinds of businesses in most industries. The government of the United States spends hundreds of billions of dollars each year on contracts. That is why the U.S. Government is considered to be the largest purchaser of goods and services in the world. Be aware of the fact that one-quarter of them are designated for small businesses.

First and foremost, you need to register your business with System for Award Management also known as SAM in short. Once you get registered, start searching for federal contract opportunities. Filter your searches by important keywords. Remember to seek contracts that are set aside for small businesses and take advantage. After you get a viable opportunity start preparing your federal bid for the contract.

It takes 30 to 120 days for the government to review the submissions and select potential contractors. The process is time-consuming so don’t think that things will happen quickly. It is because it takes time to get to know a particular organization precisely, build a strong relationship and go through the application process. So keep patience after getting done with all the tasks.


Impact of Covid-19 on government contracting

The Covid-19 pandemic has impacted businesses and organizations across all the industries of the United States, including the government itself. Let’s look at some of the impacts of COVID-19 that could potentially affect contractors.

  • Due to shifts in supply and demand in the market contract changes and cancellations may occur.
  • Too many government employees are working remotely due to pandemic situations.
  • To fulfill obligations contractors must communicate changes to their ability.


Important things small businesses should know before bidding

Federal Bid for Small Business

If you are planning to bid on your government contract for the first time then here are the things that you should know.

Take advantage of government contracting job databases

You need to go through several online resources to research government contracts that are currently open. It will help you to understand the demand for your products and services. Narrow down your searches according to your business to find suitable federal contracts.

Research on the contracts before bidding

It is important to know the exact requirements of a particular contract before bidding. Figure out whether your business can fulfill the needs or not. Companies often neglect to investigate the type of work and simply head over to obtain the contracts. So you must know all the requirements to deliver positive results.

Subcontracting opportunities are available

Acquiring government contracts from federal agencies is often difficult for small businesses, especially for the ones who are opting for winning contracts for the first time. Don’t you worry cause there is an alternative which is easier for small businesses. The alternative contracting opportunity is known as subcontracts. Small businesses can obtain subcontracts from larger companies that already won contracts from the federal agencies. When it is too difficult for a small business to obtain federal contracts, the contractors opt for getting subcontracts. It happens because the large companies that acquire government contracts outsource to small businesses.

Access your business

As you have got to know about the important things that you need to make sure before you go through federal bids. It is time to access your business readiness to go through the federal bidding process.

There is no doubt that government contracting has competition. Before getting into the federal bidding process, make sure it is the correct option for your business. Your business needs to have certain qualities that will help you win government contracts. The General Service Administration has found that businesses with particular kinds of assets tend to have high chances of winning government contracts. We have mentioned some of them to make you aware of what it takes to achieve this target.

  • Businesses or contractors with a minimum of two years of experience working with federal contracts. Either as a prime contractor or a subcontractor in the federal market.
  • Businesses that have contacts and strong relationships within the federal contracting community.
  • Businesses that have experience working with a mentor who is a successful GSA contractor.
  • Businesses that attend actively in most of the GSA seminars and workshops on contracting.
  • Businesses that invest $80k to $130k to find and manage government contracts.

Find your NAICS code and the size of your business

You need to submit your NAICS code as a part of your application. You should know that the term NAICS stands for North American Industry Classification System. The code is used by the federal government to classify businesses for statistical purposes that are related to the business economy of the United States. 

In order to figure out your NAICS code, applicants need to visit the NAICS Association website. The site offers a free tool that will help you to know your NAICS code for your business. This code is categorized according to the services and goods that a business offer.

Once you get to know your NAICS code, it is time to know about the size of your business. You can find that out by visiting the SBA website. The site helps applicants to determine their small business size standards that apply to your specific code. Every industry has different standards.


We suggest you utilize all the important information that has been explained in this blog in order to win government contracts through the process of federal bids. So wait no longer and start chasing the government contracts. Good luck to you all!


Also Read:

How to Get the Best Benefit from Government Contracting?

Finding Federal Buyers: Can Be Like Finding A Needle In A Haystack With A Rather Large Magnet