So many business owners think winning a bid to fulfill a government contract is their golden ticket. They think it only takes one government contract to generate consistent revenue and scale their businesses.
The truth is if you’re considering entering the government vending arena, you have to be ready to “do business” with the government. Your business, and your reputation, depend on it.
Like getting into anything else too soon, trying to fulfill a government contract before your business has the capacity will cause you stress, cost you your reputation, and may even put you out of business.
So, before entering into the federal contracting arena, objectively gauge your capabilities and skills to make sure that they are fit to perform the responsibilities of a government contract.
How To Figure Out If Your Company Is Ready To Do Business With The Government
There are several methods you can use to determine if your company is ready to do business with the government. I’ve outline five of them right in this article.
#1 You Have A Good Track Record
Before awarding your company a federal contract, the government will want to see that your company is reputable, with a proven history of success in your market. That means having a reputation for excellence, and a performance guarantee. Be ready to present your credible references from both the public and the private sectors to demonstrate your viability and expertise.
#2 You Have The Capacity
Ask yourself: In its current state, can your company facilitate the demands of a government contract? Do you have the human resources to perform the tasks of your contract?
#3 You’re Financially Strong
When it comes to doing business with the government, there is a process for everything, including paying contractors. Your company should be able to shoulder the cost of completing projects ahead of government payments.
It may be several weeks after the completion of a milestone in your government contract before funds are authorized to be released. Can you still deliver the level of service needed to uphold your part of the deal while you await payment?
#4 You Deliver Quality Products And Services
As a government contractor, you should be prepared to provide innovative products and services that are of the highest quality.
#5 You Meet Eligibility Requirements
Once you have conducted your preliminary assessments, you can proceed to the eligibility requirements to register as a government contractor and participate in the government bidding process.
D-U-N-S number from Dun & Bradstreet. Get a D-U-N-S number. The D-U-N-S number is a unique nine-digit number specifically assigned to your business by Dun & Bradstreet. You can apply for a D-U-N-S number online for free.
Central Contractor Registration (CCR). Your business should also register with the CCR database. The CCR is the list of government contractors to which contracts can be awarded.
Online Representations and Certifications Application (ORCA). ORCA certifies the authenticity of any information you provide about your company and business activities. After getting your D-U-N-S number and CCR registration, you need to agree to ORCA’s solicitation clause.
NAICS code. Know your NAICS industry-code. NAICS is the North American Industry Classification System, standardized classification of businesses and economic sectors throughout North America.
Open Ratings, Inc. Past Performance Evaluation. Your business should have an analysis and survey assessment report from Open Ratings Inc., which gives proper ratings to businesses based on performance data.