A company can qualify to get government contracts after passing minimal qualifications. Start with signing up for SAM.gov to get a Unique Entity ID. Select the appropriate NAICS code that describes your services. Ensure all legal documents, licenses, and tax records are up to date. If your profile is accurate and attractive, you have a better chance of winning a government contract. Make a simple capability statement with a list of your abilities and previous work. Register with federal programs such as 8(a), HUBZone, WOSB, or SDVOSB ownership, in case you can fit the criteria. Follow the rules of submissions and track contract opportunities to stick to them and win more chances.
Why Sell to the Government?
Selling to the government opens the door to one of the largest buyers in the world. When selling to government agencies, trust is obtained, credibility is enhanced, and new markets are reached. Goods and services are regularly bought by federal, state, and local organisations in all industries. The payments are secure, and contracts frequently provide long-term revenues. Businesses remain stable when the market changes because the government helps them stay stable. Small businesses also receive priority in most programs. When registered and planned correctly, any certified business can bid on contracts and expand on regular work with the state.
What are the Key Eligibility Requirements?
Here are the 5 essential requirements every business needs to meet to qualify for government contracts:
- Legal Business Registration
- Obtain a D-U-N-S Number or UEI (Unique Entity Identifier)
- Register in SAM (System for Award Management)
- Define Your NAICS Code(s)
- Meet Financial and Insurance Requirements
Legal Business Registration
Get your business registered with the local or state officials. This makes your company legal. It builds trust with agencies by showing them that your company follows official rules. You cannot bid on business contracts or open business bank accounts without legal registration.
Obtain a D-U-N-S Number or UEI (Unique Entity Identifier)
Obtain a D-U-N-S or UEI at an authorised source. It is a unique number that identifies your business in federal systems. It also assists the government in screening who you are and what you have to offer. It is necessary to make applications and work on formal records in grant or contract portals.
Register in SAM (System for Award Management)
Make a profile on the SAM database. SAM registration ensures payment access and agency visibility to federal buyers. Always keep your SAM record up to date to prevent a delay. It includes important information such as banking information, certifications, and your line of business.
Define Your NAICS Code(s)
Choose one or several NAICS codes to describe your services. Business codes are used by agencies to categorise businesses based on their industry and to find vendors. When your business provides distinct services, you can use different codes. Make sure to be precise to avoid missing out on bidding opportunities or creating confusion.
Meet Financial and Insurance Requirements
Keep financials level and the proper insurance. Liability coverage, workers’ compensation, or bonding are common requirements on many of the contracts. Financial achievements show that you can do the job. Your bid can be disqualified if you miss any of these requirements, even if it’s competitive or complete.
What are the Certifications That Can Boost Eligibility?
These certifications increase your opportunity to get contracts because they make your business unique in competitive bidding.
Small Business Certifications (Federal)
Here are the 4 main small business certifications:
- 8(a) Business Development Program
- HUBZone Certification
- Women-Owned Small Business (WOSB)
- Veteran-Owned Small Business (VOSB)
8(a) Business Development Program
The 8(a) certification focuses on disadvantaged owners of businesses by giving them access to federal contracts. It is designed for small businesses that are 51% majority-owned by individuals who are economically and socially disadvantaged. Its advantages are sole-source contracts, business training, and mentoring under reviewed eligibility by the SBA.
HUBZone Certification
The HUBZone (Historically Underutilised Business Zone) certification works to help underserved business corporations. An organisation qualifies when its main office is located within a HUBZone and at least 35% of the employees have a residence within the area. HUBZone certification opens up the possibility of bidding on federal set-asides and sole-source contracts.
Women-Owned Small Business (WOSB)
The WOSB ( Women-Owned Small Business ) certification encourages women-owned companies to do business with the federal government. A business qualifies if it is at least 51% owned and controlled by women. It targets certain areas where businesses owned by women are underrepresented.
Veteran-Owned Small Business (VOSB)
VOSB ( Veteran-Owned Small Business ) certification is given to veteran-owned businesses. It needs to be 51% owned and controlled every day by one or more veterans. The eligibility to bid on government-targeted contracts is verified by proof of service, ownership, and operational authority.
Disadvantaged Business Certifications (Federal, State & Local)
Here are the 2 certifications that support socially and economically disadvantaged businesses:
- Disadvantaged Business Enterprise (DBE)
- Minority Business Enterprise (MBE)
Disadvantaged Business Enterprise (DBE)
A DBE ( Disadvantaged Business Enterprise ) certification is associated with transportation-related contracts and infrastructure-related contracts. It is generally accepted among the state DOTS (Departments of Transportation) and the transit authorities. Strict eligibility criteria require businesses to show economic and social disadvantage and have to fit within limits on the size of small businesses. DBE programs enhance equity in federally funded works and offer contract-specific goals to level the field.
Minority Business Enterprise (MBE)
MBE ( Minority Business Enterprise ) certification creates supplier diversity opportunities in both private and public buying. It involves a procedure of verification to show active minority control and day-to-day management by applicants. A lot of businesses and local authorities also have budget limits with MBE-certified suppliers. Certification enhances competition in request matters, subcontracting lists, and vendor outreach programs.
Other Recognised Certifications
Below are the 3 other recognised certifications:
- LGBT Business Enterprise (LGBTBE)
- Disability-Owned Business Enterprise (DOBE)
- Green Business Certification
LGBT Business Enterprise (LGBTBE)
The National LGBT Chamber of Commerce provides LGBTBE (LGBT Business Enterprise) certification. It also confirms the majority ownership of LGBT owners and active control. LGBTBEs are being represented in the supplier diversity programs of multiple companies and governmental agencies. Such certification improves visibility with inclusive buying and provides new business opportunities.
Disability-Owned Business Enterprise (DOBE)
DOBE ( Disability-Owned Business Enterprise ) certification confirms that a company is owned and controlled by an individual with a disability, who owns at least a 51% ownership stake. It enables equitable access to supply chains and assists DOBEs in developing long-term business relationships with corporations.
Green Business Certification
Green Business Certification approves activities that meet tested sustainable standards. It checks on energy consumption, water conservation, waste, and environmental responsibility. It also enables businesses to compete in contracts with buyers interested in eco-friendly business relationships.
