Government Contracts

Each year, the U.S. federal government and its various agenciesprocure more than $300 billion of everything in more than 4,000categories, ranging from airplanes to zippers. For many productsand services, the U.S. government is the biggest buyer on theplanet. Uncle Sam is also an attractive customer for a few otherreasons:

• The government makes its needs publicly known through suchmedia as the Commerce Business Daily, a publication listingnumerous government contracting opportunities. (You can find thispublication at many large public libraries.) This is quitedifferent from most markets, which you have to thoroughly researchto identify their needs.
• Government sales are conducted in an open environment wherethere are many rules to ensure that the process is fair.
• The government frequently buys in very large volumes and over along period of time. That kind of customer can provide a solidfoundation for growing your company.
• Laws set aside all or part of many contracts for women-ownedbusinesses, small businesses, minority-owned businesses, and otherfirms the government wants to support.

Having the U.S. government as a customer gives your business astamp of approval. If you can meet the government’s standards forquality, price and service, odds are good you can meet othercustomers’ requirements as well.

But there are downsides to selling to the government. It can behard to find the proper purchasing agent among the thousandsemployed by various branches and agencies of the federalgovernment. In addition, the rules and paperwork are daunting. Thegood news is that there are many sources of help. The SBA’s website is one goodplace to start looking for help selling to the government. Agencieslike the U.S. Postal Service, the Department of Interior and theArmy, as well as many others, send out solicitations to businessesthat are on their mailing lists. To find out how to get on thelists, contact the agency you’re interested in.

And don’t restrict yourself to selling to the federalgovernment. State and local governmental entities, includingcities, counties, school districts and others, actually purchasemore goods and services than the federal government. There are moreof them and they are smaller, but these government customers canprovide alternative tracks to growth that are just as viable as theopportunities in Washington, DC.

You can sidestep many of the hassles of winning a governmentcontract if you subcontract with the main or prime contractor.Prime contractors, ranging from large defense contractors tocompanies that may be smaller than yours, do most of the work toland the government job. Then they may hire you to fulfill all orpart of it. Find prime contractors by perusing many of the sameresources you would to sell directly to the government.