The federal government encourages small businesses to take on contracting opportunities. The process to register as a federal contractor is more straightforward than most people think.
Federal Government Contracting
The U.S. government is the world’s largest customer. It buys all types of products and services, and is required by law to provide opportunities for small businesses.
There are two broad categories of government contractors:
- Prime contractors bid on and win contracts directly from government agencies.
- Subcontractors join prime contractor teams, usually to provide a specific capability or product
For your small business to serve as a prime contractor or subcontractor, you’ll need to legally qualify as a small business and register as a government contractor. Then you can start looking for both prime or subcontracting opportunities with the federal government.
Small and Disadvantaged Businesses
The federal government tries to award a significant percentage of all federal government contracting dollars to small businesses. In addition, the federal government tries to award a certain percentage to businesses in the following categories.
- Women-owned small businesses
- Minority-owned businesses
- Service-disabled veteran-owned small businesses
- HUBZone program participants
The U.S. Small Business Administration’s (SBA) 8(a) Business Development program helps eligible socially and economically disadvantaged individuals grow their businesses through one-on-one counseling, training workshops, matchmaking opportunities with federal buyers, and other management and technical guidance.
The Small Business Administration (SBA) provides information on becoming a federal contractor as a small business for you here – https://www.sba.gov/business-guide/grow-your-business/become-federal-contractor.