How to Bid on Government Contracts as a Small Business

Small businesses that are new to the public sector can sometimes be daunted by the opportunity to grow their government sales revenue – but there are proven steps they can take to be successful. Follow this guide on how to bid on government contracts as a small business to learn the steps needed to build a successful public sector sales pipeline.

If your firm is relatively new in public sector sales and you are aiming to grow and scale in the public sector market, it’s important to understand the basic concepts of how to bid on government contracts as a small business.

Government agencies often set aside specific contracts for small businesses to limit the competition, creating a more equal playing field. Companies that meet the requirements for these contracts can follow best practices to make it easier to find, bid on and ultimately win more government contracts for their small business.

Selling to the Government as a Small Business

The U.S. government can offer a high-performing revenue stream for your business. With an understanding of government acquisition priorities and policies, you can compete and win more government contracts.

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Below are examples of several of the most prominent types of small business government contracts that your firm may encounter when learning how to bid on public sector opportunities.

Women-Owned Small Business Government Contracts

The government has goals to give at least 5% of its contracts to small businesses that are owned and run by women. These women-owned small businesses (WOSB) must be at least 51% owned by women who are U.S. citizens.

8a Small Disadvantaged Business Government Contracts

The government has goals to give at least 5% of its contracts to small businesses that are owned and run by people who are socially and economically disadvantaged. These types of businesses must be at least 51% owned by people who fit this category.

Service-Disabled Veteran Owned Small Business Government Contracts

The government has goals to give at least 3% of its contracts to small businesses that are owned and run by service-disabled veterans. These service-disabled veteran owned small businesses (SDVOSB) must be at least 51% owned by service-disabled veterans and at least one service-disabled veteran must manage the business and make long-term decisions.

HUBZone Contracts

The government has goals to give at least 3% of its contracts to small businesses that are located in Historically Underutilized Business Zones (HUBZones). These zones are areas where the government wants to create jobs and boost the economy. Businesses do not necessarily have to be owned by a minority or woman to qualify for a HUBZone contract.

Contracting with government entities is not like working with just any other customer. While the numerous regulations and layers of bureaucracy can be daunting, the opportunity that comes out of selling to the government can be vastly profitable.

Follow these five steps to get started in selling to the government as a beginner.

Determine Your Qualifications

Are you a woman-owned business, a veteran-owned business or do you fit into another specific category that may give your company a leg up? It pays off to make sure you are qualified for the contracts you are pursuing.

Consider Teaming Agreements

If you’re a small business trying to sell to the government, you don’t have to go it alone. You can partner with a larger business as a subcontractor or enter into a teaming agreement as a way to open up the aperture and surface more opportunities for your business.

Connect with the Buyer

Reach out to an agency’s small business office to learn about their small business goals. Make sure that the agency has your firm’s capability statements on-hand to influence future procurements and increase your potential of being included in the bidder’s pool for upcoming projects.

Plan Well in Advance

The key to increasing your ability to compete on a government contracting opportunity is to gather information, analysis and intelligence in advance to help inform you on its requirements and help you reach a bid/no-bid decision early in the lifecycle.

Government Contract Lifecycle

Leverage the Right Tools

Don’t be afraid to lean on outside tools and guidance to help your business understand how to bid on these opportunities. There is a wealth of research into the best ways for small businesses to get started in selling to the public sector.

Free Guide: Build a Winning Public Sector Sales Pipeline

Turn your knowledge of small business government contracts into increased revenue in your public sector sales pipeline.

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Once your small business has made the decision to pursue a contract, you will need to focus on preparing a winning proposal so your bid has the best chance to be successful.

A strong proposal will help your company’s capabilities stand out when compared to other bidders. It is equally important to focus on developing strong proposals when positioning your small business as a potential teaming partner to prime contractors.

Government agencies and prime contractors usually have specific information requirements on what they want to see from potential bidders and partners explained within the request for qualifications (RFQ) or request for proposal (RFP).

Before you finalize and submit your bid, find out everything the agency or prime contractor wants to know - then strive to provide it and be willing to offer more information upon request. Above all, make sure to stress why your small business is the best fit for the job.

Win More Small Business Government Opportunities

Take advantage of these complementary insights and empower your small business with the tools to succeed.

Small Business Resources

Now that you have a sense of best practices when competing for small business contract opportunities and understand what is needed to grow your sales in this market, you might be curious about how you can take the next steps to win more small business government contracts.

A comprehensive government market intelligence solution like GovWin IQ from Deltek can help. GovWin IQ is a government contracting intelligence platform that enables businesses of all sizes and categories to manage public sector opportunities, pursue deals faster and plan strategically to get ahead of the competition. Click the link below to request a live demonstration of GovWin IQ today.

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