One of the best ways to increase your revenue and breathe new life into your business, no matter how small or big, is going into a contract with the largest buyer of goods and services in the country– the US Government, which spends billions of dollars each year.
Before you get online looking for contracts and open bids. You need to set up your business first. There are identification systems that you need to be a part of and register for. Here are:
4 Items You Need to Set Up with Your Business for Government Contracting
- Prepare your Industry Identification Number.
Identify your NAICS or North American Industry Classification System codes. Federal agencies use this to identify your business details and allow agencies to compare.
You may also need your (FSC) Federal Supply Codes and (PSC) Product Service Codes.
- Register with the System for Award Management
Head on over to the System for Award Management site to register your entity or to get a Unique Entity ID.
The 12-character UEID (Unique Entity ID) replaced the older D-U-N-S number on April 4, 2022. This was done to remove the need for a third-party company (Dun & Bradstreet) for registration.
- Check if you are eligible for Contracting assistance programs.
Special programs are created by the US Government to help small businesses get their federal contract.
▶ Small Disadvantaged Business
▶ Women-Owned Small Business Federal Contracting program
▶ Veteran assistance programs
▶ 8(a) Business Development Program
▶ SBA Mentor-Protégé program
▶ Joint ventures
▶ 7(j) Management and Technical Assistance Program
▶ HUBZone program
▶ Natural Resource Sales Assistance program
- Lastly, after you have gotten all your numbers squared up. You need actually to prepare your company.
✅ Brush up on the rules of the Federal Acquisition Regulation
✅ Find your product or service niche and focus on it.
✅ Decide if you are coming in as a Prime contractor or a Subcontractor.
✅ Prepare your IT and infrastructure to meet very strict security protocols.
✅ Ready your tools, systems, software, and personnel for scrutiny, surprise checks, and audits.
Even if you have been working with your product or services for quite some time, you may find that the accounting you need to use for government contracting is very different from the accounting you are used to. These differences can throw off even the most experienced accountants if they have not previously worked in government contracting. Don’t worry; Peter Witts CPA, and our 20-plus years of experience are at your disposal. Just drop us a line.