BW Online | June 30, 2000 | What Your Country Can Do for You

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JUNE 30, 2000

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What Your Country Can Do for You
With a little research and tenacity, you, too, could get in on a lucrative government contract

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Every year, the federal government spends hundreds of billions of dollars buying goods and services from outside contractors -- and you don't need to make Tomahawk missiles to get some of that business for yourself.

Congress requires that federal agencies set aside 23% of their contracts for small businesses (generally companies with fewer than 100 employees and less than $25 million in sales). In 1999, some $43 billion of the $186 billion in federal contracts went to small businesses. The feds have a voracious appetite for...well everything: goods such as T-shirts, deodorant, toilet paper, rubber-soled shoes, and services like contracting, painting, security, and cleaning. You name it.

"Each business day, there are thousands of opportunities to contract with the federal government," says Don Mazzella, executive vice-president of SmallBusinessDepot.com, a Web startup that helps small businesses find government work. But don't expect Uncle Sam to just open his wallet. The procurement process is complicated and the paperwork daunting. Still, you can take steps to better your chances.

KNOW YOUR MARKET. Do you have something the government wants? If the feds aren't looking for hamster cages or ergonomic trainers, no amount of hard work is going to land you a contract. For information on what the government needs, get in touch with the Offices of Small & Disadvantaged Business Utilization. It was created to help small businesses navigate the procurement process, and every federal agency has one. For a list, check the SBA's Web site at www.sba.gov/GC/osdbu.html.

You might also contact a Procurement Technical Assistance Center. These nonprofit groups contract with the Defense Logistics Agency to help small businesses land government business, not only with the Defense Dept. but all federal agencies. For a nominal fee (and sometimes for free), a PTAC will appraise your chances of securing a contract and help walk you through the process. "Because we're not making money off clients, we can afford to be more honest," says Michael Black, director of the Southwest Michigan Technical Assistance Center. To find the nearest PTAC in your state, go to the DLA's Web site (www.dla.mil/ddas).

If it turns out you do have something the feds want, sign up with the Central Contractor Registry (www.ccr2000.com). The Defense Dept. uses this database to find contractors for specific goods or services. Registering won't cost you anything, and you must do so if you want business from Defense. You'll also need a Data Universal Number System (DUNS) number, the code the government uses to classify goods or services. You can get one for free by calling Dun & Bradstreet Corp. at (800) 333-0505.

BE PROACTIVE. You should also register your business on PRO-Net, a national procurement network operated by the Small Business Administration (www.pro-net.sba.gov). There's no charge for this, either. Though PRO-Net registration isn't required, prime contractors use the network to meet their hiring goals for small and disadvantaged businesses.

The U.S. Commerce Dept. lists all contracts of more than $25,000 in a newspaper it publishes called the Commerce Business Daily. You can search the list for free at www.ld.com/cbd/today. For $25 a month, SmallBusinessDepot.com will search government databases for you, and send you e-mail or fax alerts should the search find something that's up your alley.

Read the bid documents carefully, paying close attention to the evaluation criteria. Bids that don't conform get tossed. And though bid documents can be extremely complicated, be sure to keep your proposal as simple as possible. Describe your product or service comprehensively in clear, concise language. Speaking of language, be aware of the government's peculiar brand of bureaucrat-ese. When the feds say "wall coverings," for example, they really mean paint.

JUST ASK. Take your cue from the bid request when describing your service or product. And get it in on time. Sounds simple enough, but 36% of bids are rejected for being late.

Finally, don't be afraid to ask for help. If you run into trouble, call the contracting officer assigned to the bid request. They're usually pretty good about explaining the details. It may take a year or longer to land your first government contract, but once you get your foot in the door, it's easier to get more work, Black says. And it can mean good money. So while half of JFK's old rule still applies here -- ask what you can do for your country -- it's also smart to ask what your country can do for you.