Summary: How do small scale enterprises compete with more established companies when it comes to negotiation and bidding for federal contracts? Learn the ways in which entrepreneurs can penetrate the market and end up being victorious.
No small-scale business wants to take a downward slope. In the quest to multiply returns of investments, new entrepreneurs venture on taking big leaps, including the ventures in federal contracts.
Various marketing strategies have been devised by fresh entrepreneurs in order for them to broaden their target consumers and multiply their revenues. Small scales often utilize safe marketing techniques with a slowly-but-surely attitude. The adventurous new entrepreneurs, however, choose to take big leaps to fast track their success in the guise of federal contracts.
Developing an enterprise with the government can be the best method to make a new business thrive. For one, the US government is in constant purchase of supplies from different producers. To give an equal arena both for big and small business, several programs have been authored and developed under the law. Entering federal contracts has been made easy for smaller scales in order for them to catch up with the competition in the market.
Note that the government follows a standard procedure in issuing federal contracts that conform to the Federal Acquisition Regulation (FAR). This governs a set of regulations that mandates government officials to follow a step-by-step procedure in procurement. It also gives a standard operating procedure which should be followed by enterprises in order for them to get federal contracts:
1. Register the company as an approved contractor. Acquire a Dun and Bradstreet DUNS number from http://www.DNB.com/. The identification number qualifies an enterprise to bid and negotiate for federal contracts.
2. Register with the Central Contractor Registration of the Government (CCR). This can get the business name in the list of legitimate companies allowed to enter negotiations for federal contracts. The registration can be completed at http://www.CCR.gov/. Entrepreneurs will be needing the DUNS number, federal tax id number, bank account number and relevant information about the business.
3. Complete the Online Representations and Certifications Application (ORCA). This is a federal form where business-owners provide additional and more detailed information about the company and its products. Discount rates, warranties, and past performance information will be asked. This will be used for the final evaluation before the bidding and negotiating of federal contracts take place.
It takes 20 days to complete the report, should the registrations go well. It would be best to include references in the application, although this is not mandatory. There can be bidding for federal contracts that do not require these applications, nonetheless. It is therefore important for the entrepreneurs to check the requirements for federal contracts negotiation beforehand. Other tips include:
• Study the supplies demanded by the government. Offer the right products, services, and cost during the bid
• Pick federal contracts with the most activity and won by the competitors in the past. Check with the agency and assess whether or not they have clean records.
• Strategize on pricing schemes before the negotiation
• Keep the proposals brief and straight to the point. Make sure that the proposal follow the RFP’s evaluation criteria
• Emphasize that the company is a “safe buy.” Convince the negotiators that the company that you adhere to the rules set by the government.
Resource box: More young businessmen end up successful in bagging federal contracts. Visit www.governmentprocurementexposed.com to be one of them.
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